Rule2025-18752

Miscellaneous Corrections, Clarifications, and Improvements; Correction

Primary source

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Published
September 26, 2025
Effective
September 26, 2025

Issuing agencies

Pension Benefit Guaranty Corporation

Abstract

On August 15, 2025, the Pension Benefit Guaranty Corporation (PBGC) revised its regulation on termination of single-employer plans. That document inadvertently failed to correctly format a list of requirements. This document corrects the final regulation.

Full Text

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<title>Federal Register, Volume 90 Issue 185 (Friday, September 26, 2025)</title>
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[Federal Register Volume 90, Number 185 (Friday, September 26, 2025)]
[Rules and Regulations]
[Page 46348]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-18752]


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PENSION BENEFIT GUARANTY CORPORATION

29 CFR Part 4041

RIN 1212-AB51


Miscellaneous Corrections, Clarifications, and Improvements; 
Correction

AGENCY: Pension Benefit Guaranty Corporation.

ACTION: Correcting amendments.

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SUMMARY: On August 15, 2025, the Pension Benefit Guaranty Corporation 
(PBGC) revised its regulation on termination of single-employer plans. 
That document inadvertently failed to correctly format a list of 
requirements. This document corrects the final regulation.

DATES: Effective September 26, 2025.

FOR FURTHER INFORMATION CONTACT: Monica O'Donnell 
(<a href="/cdn-cgi/l/email-protection#afc0cbc0c1c1cac3c381c2c0c1c6ccceefdfcdc8cc81c8c0d9"><span class="__cf_email__" data-cfemail="e08f848f8e8e858c8cce8d8f8e898381a090828783ce878f96">[email&#160;protected]</span></a>), Attorney, Regulatory Affairs Division, 
Office of the General Counsel, Pension Benefit Guaranty Corporation, 
445 12th Street SW, Washington, DC 20024-2101; 202-229-5507. If you are 
deaf or hard of hearing, or have a speech disability, please dial 7-1-1 
to access telecommunications relay services.

SUPPLEMENTARY INFORMATION: On August 15, 2025, PBGC published a final 
rule (90 FR 39320) that made improvements to its regulation on 
termination of single-employer plans (29 CFR part 4041). PBGC explained 
in the preamble of the final rule that it was amending the criteria 
majority owners must meet to waive their benefits by modifying its 
application of the constructive ownership rules.\1\ The alternative 
treatment of a majority owner's plan benefit is valid only if the 
election is in writing; requisite spousal consent criteria is met, if 
applicable; and the majority owner's election and the spouse's consent 
does not violate a qualified domestic relations order.\2\ PBGC is 
making a technical correction to clarify that individuals who are 
majority owners through constructive ownership must meet all of the 
requirements under Sec.  4041.21(b)(2).
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    \1\ 90 FR 39320, 39322.
    \2\ 29 CFR 4041.21(b)(2).
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List of Subjects in 29 CFR Part 4041

    Employee benefit plans, Pension insurance, Pensions, Reporting and 
recordkeeping requirements.

    Accordingly, 29 CFR part 4041 is corrected by making the following 
correcting amendments:

PART 4041--TERMINATION OF SINGLE-EMPLOYER PLANS

0
1. The authority citation for part 4041 continues to read as follows:

    Authority:  29 U.S.C. 1302(b)(3), 1341, 1344, 1350.


0
2. Amend Sec.  4041.21 by revising paragraphs (b)(2)(iii) and (iv) and 
(b)(2)(v)(A) to read as follows:


Sec.  4041.21   Requirements for a standard termination.

* * * * *
    (b) * * *
    (2) * * *
    (iii) The majority owner makes the election and the spouse consents 
during the time period beginning with the date of issuance of the first 
notice of intent to terminate and ending with the date of the last 
distribution;
    (iv) Neither the majority owner's election nor the spouse's consent 
is inconsistent with a qualified domestic relations order (as defined 
in section 206(d)(3) of ERISA); and
    (v) * * *
    (A) The person has a 5 percent or more direct ownership interest; 
or
* * * * *

    Alice C. Maroni,
Acting Director, Pension Benefit Guaranty Corporation.
[FR Doc. 2025-18752 Filed 9-25-25; 8:45 am]
BILLING CODE 7709-02-P


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Indexed from Federal Register on September 26, 2025.

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