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PBGC RIN: 1212-AA98 Publication ID: Spring 2010 
Title: Bankruptcy Filing Date Treated as Plan Termination Date for Certain Purposes; Guaranteed Benefits; Allocation of Plan Assets; Pension Protection Act of 2006 
Abstract: This is a final rule to implement section 404 of the Pension Protection Act of 2006. Section 404 amended title IV of ERISA to provide that when an underfunded, PBGC-covered, single-employer pension plan terminates while its contributing sponsor is in bankruptcy, sections 4022 and 4044(a)(3) of ERISA are to be applied by treating the date the sponsor's bankruptcy petition was filed as the termination date of the plan. Section 4022 determines which benefits are guaranteed by PBGC, and section 4044(a)(3) determines which benefits are entitled to priority in "priority category 3" in the statutory hierarchy for allocating the assets of a terminated plan. Thus, under the 2006 amendments, when a plan terminates while the sponsor is in bankruptcy, the amount of benefits guaranteed by PBGC and the amount of benefits in priority category 3 are fixed at the date of the bankruptcy filing rather than at the plan termination date. This will, in most cases, reduce the amount of guaranteed benefits and the amount of benefits in priority category 3. 
Agency: Pension Benefit Guaranty Corporation(PBGC)  Priority: Other Significant 
RIN Status: Previously published in the Unified Agenda Agenda Stage of Rulemaking: Final Rule Stage 
Major: No  Unfunded Mandates: No 
EO 13771 Designation: uncollected 
CFR Citation: 29 CFR 4022    29 CFR 4044   
Legal Authority: 29 USC 1302(b)(3)    29 USC 1322    29 USC 1344   
Legal Deadline:  None
Timetable:
Action Date FR Cite
NPRM  07/01/2008  73 FR 37390   
NPRM Comment Period End  09/02/2008    
Final Rule  07/00/2010    
Regulatory Flexibility Analysis Required: No  Government Levels Affected: None 
Federalism: No 
Included in the Regulatory Plan: No 
RIN Information URL: www.pbgc.gov/regs   Public Comment URL: www.pbgc.gov/regs  
RIN Data Printed in the FR: No 
Agency Contact:
James J. Armbruster
Assistant Chief Counsel
Pension Benefit Guaranty Corporation
Office of Chief Counsel, 1200 K Street NW,
Washington, DC 20005
Phone:202 326-4020
Email: armbruster.james@pbgc.gov

Catherine B. Klion
Assistant General Counsel for Regulatory Affairs, Office of the General Counsel
Pension Benefit Guaranty Corporation
1200 K Street NW.,
Washington, DC 20005-4026
Phone:202 326-4024
TDD Phone:800 877-8339
Fax:202 326-4220
Email: klion.catherine@pbgc.gov