Reportable Events

I:\regulatory\RM\Paperwork\1212-0013 Part 4043\Form 10 Instr._Markup for 2009_(3 yr rollover)_to OMB.doc

Form 10 Instructions
Post-Event Notice of Reportable Events
PAPERWORK REDUCTION ACT NOTICE
PBGC needs this information, which is required to be filed under ERISA §4043 and 29 CFR Part 4043,
Subparts A and B, so that it can take action to protect participants and the termination insurance program
in appropriate cases. PBGC estimates that it will take an average of 4.1 hours and $1,435 to comply with
these requirements. If you have any comments concerning the accuracy of this estimate or suggestions
for improving this form, please send your comments to the Pension Benefit Guaranty Corporation,
Legislative and Regulatory Department, 1200 K Street, NW, Washington, DC 20005-4026. This
collection of information has been approved by the Office of Management and Budget (OMB) under
control number 1212-0013. Under the Paperwork Reduction Act, an agency may not conduct or sponsor,
and a person is not required to respond to, a collection of information unless it displays a currently valid
OMB control number.
Table of Contents
WARNING

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Part I - General Instructions

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Part II - Definitions

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Part III - Specific Instructions
A. Active Participant Reduction
B. Failure to Make Required
Minimum Funding Payments
C. Inability to Pay Benefits When Due
D. Distribution to a Substantial Owner
E. Change in Contributing Sponsor or
Controlled Group
F. Liquidation
G. Extraordinary Dividend or
Stock Redemption
H. Transfer of Benefit Liabilities
I. Application for Minimum
Funding Waiver
J. Loan Default
K. Bankruptcy or Similar Settlement

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Part IV - Funding-Based Waivers and
Extensions
A. General
B. Waiver If No Variable Rate Premium
C. Waiver If Less Than $1 Million in
Unfunded Vested Benefits
D. Waiver If At Least 80% Funded
E. Funding-Based Extension

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WARNING — THE LAW HAS CHANGED
The Pension Protection Act of 2006 made changes to ERISA’s rules on plan funding and premiums.
Some of those changes have been implemented by amendments to PBGC’s regulations. PBGC has not
yet amended the reportable events regulation or the reportable events forms and instructions to reflect
the changes in the law. Until the regulation is amended and the forms and instructions are updated,
reportable events filers and potential filers should refer to the following PBGC Technical Updates,
which are accessible through the Practitioners Page on PBGC’s Web site (www.pbgc.gov):
09-1 (Reportable Events; Funding-Related Determinations for Threshold Test, Waivers, and Extensions;
Effect of the Pension Protection Act of 2006; Guidance for 2009 Plan Years)
08-2 (Waiver for Small Employer Reporting of Missed Quarterly Contributions)
07-2 (Funding-Related Determinations for Reporting Under Parts 4010 and 4043; Effect of the Pension
Protection Act of 2006; Transitional Guidance)
07-1 (Effect of Treasury Mortality Tables on PBGC Requirements)
06-4 (Use of Corporate Bond Rate for Certain PBGC Purposes)
Other useful information may be found under “What’s New” on the Practitioners Page.
Note: PBGC's Reportable Events regulation (part 4043) uses the terms "Form 1 extension" and "Form
1-ES extension.” For 2008 and later plan years, the Form 1 has been replaced with the Comprehensive
Premium Filing, and the Form 1-ES has been replaced with the Estimated Flat-Rate Premium Filing. In
these instructions, the term "Form 1 extension" means the extension based on the variable rate premium
filing due date. The term "Form 1-ES extension" means the extension based on the Estimated Flat-Rate
Premium Filing due date.

PART I – GENERAL INSTRUCTIONS
Section 4043 of the Employee Retirement Income Security Act (ERISA) requires that plan
administrators and contributing sponsors notify PBGC of the occurrence of certain events ("reportable
events"). These are:
A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
K.

Active participant reduction
Failure to make required minimum funding payments
Inability to pay benefits when due
Distribution to a substantial owner
Change in contributing sponsor or controlled group
Liquidation of contributing sponsor or controlled group member
Extraordinary dividend or stock redemption
Transfer of benefit liabilities
Application for minimum funding waiver
Loan default
Bankruptcy or similar settlement

PBGC's regulation on Reportable Events (29 CFR Part 4043, Subparts A and B) describes in detail each
reportable event, the contents of the required post-event notice and any applicable reporting waivers or
extensions of deadlines. Part III of these instructions summarizes these rules for each event.
The rules in the Reportable Events regulation apply only to reportable events involving single-employer
plans covered by title IV of ERISA. In these instructions, "plan" always means such a single-employer
plan.
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Advance Reporting Rule for Non-Public Companies
ERISA also requires that certain contributing sponsors notify PBGC at least 30 days in advance of the
effective date of certain reportable events. If an advance notice is filed, no additional notice is required.
The advance notice requirement applies only to non-public companies that:
(1) are members of a controlled group whose plans (disregarding plans with no unfunded vested
benefits) have:
(i) aggregate unfunded vested benefits of more than $50 million and
(ii) an aggregate funded vested benefit percentage of less than 90 percent; and
(2) are reporting about events relating to themselves or other non-public companies in the controlled
group.
Form 10 and the rules described in these instructions do not apply to advance reporting. See the Form
10-Advance package and 29 CFR Part 4043, Subparts A and C, for further information about advance
reporting.
Who Must Notify PBGC
The plan administrator and each contributing sponsor of a plan for which a reportable event has occurred
must file a post-event reportable event notice with PBGC. If there is a change in plan administrator or
contributing sponsor, the reporting obligation applies to the plan administrator or contributing sponsor(s)
on the date the post-event notice is due.
Note: An authorized representative may file a reportable event notice on behalf of a plan administrator,
a contributing sponsor or both.
A single event (such as a controlled group break-up) may be a reportable event for more than one plan in
the controlled group. In that case, the reporting requirement applies to the plan administrator and each
contributing sponsor of each plan. Any filing will be deemed to be a filing by all persons required to
notify PBGC.
Reporting Waivers
Automatic waivers are provided for certain reportable events in certain circumstances (see Part III of
these instructions). Several of these waivers are based on measures of the plan's unfunded vested
benefits.
Post-event reporting is waived for any occurrence that is reportable under more than one reportable
event only if the requirements for a waiver for each reportable event are met.
How To File
A reportable event notice may be filed with PBGC by mail, commercial delivery service, hand delivery
or electronic transmission (e.g., e-mail or fax).
When To File
A reportable event notice must be filed within 30 days after a plan administrator or contributing sponsor
knows or has reason to know that a reportable event has occurred.
PBGC has extended this deadline for some events in certain specified circumstances (see Part III of
these instructions).

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The filing deadline for any event that is reportable under more than one reportable event will be the
earliest deadline for reporting any one of the events.
In computing any period of time, the day of the event from which the period of time begins to run is not
included. The last day of the period is included, unless it is a weekend or Federal holiday, in which case
the period runs until the end of the next regular business day.
Filing Date
The filing date for a reportable event notice or other required information is:
1. By United States mail: The date of the postmark stamped on the cover in which the information is
mailed, if the postmark was made by the United States Postal Service and the document was mailed
postage prepaid, properly addressed to PBGC at the address listed under "Where to File";
2. By commercial delivery service: The date the information is deposited for delivery to PBGC with a
commercial delivery service, provided it is received by PBGC at the address listed under "Where to
File" within two regular business days; or
3. If not meeting the conditions in (1) or (2) above: The date the document is received by PBGC at the
address listed under "Where to File."
Information received on a weekend or Federal holiday or after 5:00 p.m. on a weekday is considered
filed on the next regular business day.
Special rule for electronic transmission: An electronic transmission of a reportable event notice will
be deemed timely filed if (1) the transmission is received by PBGC on or before the filing deadline
(including extensions), (2) the transmission contains at least the information listed on the front of the
Form 10 and (3) the remaining information is received by PBGC at the address listed under "Where to
File" by the second regular business day following the filing deadline (including extensions).
Where to File
By mail, commercial delivery service or hand delivery:
Pension Benefit Guaranty Corporation
Department of Insurance Supervision and Compliance
1200 K Street, NW
Washington, DC 20005-4026
By e-mail: [email protected]
By fax: 202-842-2643 (call 202-326-4070 to confirm that the fax has been received). (For TTY/TTD
users, call the Federal Relay Service toll-free at 1-800-877-8339 and ask to be connected to the number
above.)
What to File
A plan administrator or contributing sponsor must include with the Form 10 certain specified
information tailored to the particular event. This information is listed on page 2 of the Form 10.
If any required information has previously been submitted to PBGC, the filer may instead refer to the
previous submission.

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If the same event is reportable under more than one reportable event, the notice must include all the
required information for each event.
If notices are required for two or more events, the notices may be combined in one filing.
PBGC may require that a plan administrator or contributing sponsor submit additional information
within 30 days after the date of PBGC's written request. PBGC may shorten this 30-day period where it
determines that the interests of PBGC or participants may be prejudiced by a delay in receipt of the
information.
Note: Any non-public information submitted to PBGC as part of a reportable event notice shall not be
made public, except as may be relevant to any administrative or judicial action or proceeding or for
disclosure to either body of Congress.
Information on Controlled Group Structure
To comply with any requirement that the reportable event notice include a description of the plan's
controlled group structure (see page 2 of the Form 10), the filer may submit a copy of an organization
chart or other diagram. The description or chart may exclude de minimis 5-percent segments and foreign
entities other than foreign parents.
Special Rule for Terminating Plans
The fact that a plan is in the process of terminating does not mean that reportable events notices need not
be filed. However, a notice is waived if the deadline for filing the notice is on or after the date on which
(1) all of the plan's assets (other than any excess assets) are distributed pursuant to a termination or (2) a
trustee is appointed for the plan under ERISA §4042(c).
Effect of Failure to Timely File
If a notice (or any other required information) is not provided within the specified time limit, PBGC may
assess against each plan administrator and contributing sponsor required to provide the notice a separate
penalty under ERISA §4071 of up to $1,100 a day for each day for which the notice or other information
is overdue (see 29 CFR Part 4071 and PBGC's Statement of Policy on Assessment of Penalties for
Failure to Provide Required Information (60 FR 36837, July 18, 1995)). PBGC may pursue any other
equitable or legal remedies available to it under the law.
For Questions, Problems, Copies of Forms
If you have questions or problems regarding reportable events or you need copies of this package, the
Form 10-Advance package or the Form 200 package, contact:
Pension Benefit Guaranty Corporation
Department of Insurance Supervision and Compliance
1200 K Street, NW
Washington, DC 20005-4026
Telephone: 202-326-4000
For TTY/TTD users, call the Federal Relay Service toll-free at 1-800-877-8339 and ask to be connected
to the number above.

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PART II - DEFINITIONS
Code means the Internal Revenue Code of 1986, as amended.
Contributing sponsor means a person who is a contributing sponsor as defined in ERISA §4001(a)(13).
Controlled group means, in connection with any person, a group consisting of that person and all other
persons under common control with that person (generally 80% ownership; see 29 CFR Part 4001.3).
Any reference to a plan's controlled group means all contributing sponsors of the plan and all members
of each contributing sponsor's controlled group.
De minimis 10-percent segment means, in connection with a plan's controlled group, one or more
entities that in the aggregate have for a fiscal year:
1. Revenue not exceeding 10% of the controlled group's revenue;
2. Annual operating income not exceeding the greatest of:
a. 10% of the controlled group's annual operating income,
b. 5% of the controlled group's first $200 million in net tangible assets at the end of the fiscal
year(s),or
c. $5 million; and
3. Net tangible assets at the end of the fiscal year(s) not exceeding the greater of:
a. 10% of the controlled group's net tangible assets at the end of the fiscal year(s), or
b. $5 million.
De minimis 5-percent segment has the same meaning as a de minimis 10-percent segment, except that
"5%" is substituted for "10%" each time it appears.
EIN/PN means the nine-digit employer identification number assigned by the Internal Revenue Service
to a person and the three-digit plan number assigned to a plan. The EIN/PN reported should be the
EIN/PN most recently reported for a PBGC premium filing (if applicable).
Event year means the plan year in which a reportable event occurs.
Foreign entity means a member of a controlled group that:
1. Is not a contributing sponsor of a plan;
2. Is not organized under the laws of (or, if an individual, is not a domiciliary of) any State of the United
States, the District of Columbia, Puerto Rico, the Virgin Islands, American Samoa, Guam, and the Wake
Island; and
3. For the fiscal year that includes the date the reportable event occurs, meets one of the following tests:
a. Is not required to file any United States federal income tax form;
b. Has no income reportable on any United States federal income tax form other than passive income
not exceeding $1,000; or
c. Does not own substantial assets in the United States (disregarding stock of a member of the plan's
controlled group) and is not required to file any quarterly United States tax return for employee
withholding.

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Foreign-linked entity means a person that:
1. Is neither a foreign entity nor a contributing sponsor of a plan; and
2. Is a member of the plan's controlled group only because of ownership interests in or by foreign
entities.
Foreign parent means a foreign entity that is a direct or indirect parent of a person that is a contributing
sponsor.
Notice date means the deadline (including extensions) for filing notice of the reportable event with
PBGC.
Person means an individual, partnership, joint venture, corporation, mutual company, joint-stock
company, trust, estate, unincorporated organization, association, or employee organization.
Public company means a person subject to the reporting requirements of §13 or §15(d) of the
Securities Exchange Act of 1934 or a subsidiary (as defined for purposes of the Securities Exchange
Act of 1934) of a person subject to such reporting requirements.
Single-employer plan means any defined benefit plan (as defined in ERISA §3(35)) that is not a
multiemployer plan (as defined in ERISA §4001(a)(3)) and that is covered by title IV of ERISA.
Variable-rate premium means the portion of the single-employer premium based on a plan's unfunded
vested benefits.

PART III - SPECIFIC INSTRUCTIONS
A. Active Participant Reduction
(see 29 CFR §4043.23)
Definition of Event - A reportable event occurs when the number of active participants under a plan is
reduced to less than:
1. 80% of the number of active participants at the beginning of the plan year; or
2. 75% of the number of active participants at the beginning of the previous plan year.
For purposes of this reportable event:
The filer may substitute the number of active participants at the end of the previous plan year for the
number of active participants at the beginning of the current plan year.
An active participant is a participant who (1) is receiving compensation for work performed; (2) is
on paid or unpaid leave granted for a reason other than a layoff; (3) is laid off from work for a period
of time that has lasted less than 30 days; or (4) is absent from work due to a recurring reduction in
employment that occurs at least annually.

Reporting Waivers - Reporting of this event is waived if:
Small plan: The plan has fewer than 100 participants at the beginning of either the current or the
previous plan year; or

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Funding-based waivers: For the event year:
- No variable rate premium (see Part IV.B);
- Less than $1 million in unfunded vested benefits (see Part IV.C); or
- No facility closing event/80% funded: The plan is at least 80% funded for vested benefits (see Part
IV.D) and the active participant reduction would not be reportable if only those participant
reductions resulting from cessation of operations at one or more facilities were taken into account.

Extension of Reporting Deadline - The notice date (for an event that is not waived) is extended to
the latest of:
PBGC Form 1 extension: 30 days after the plan's variable rate premium filing due date for the event
year, provided the plan would have satisfied any of the funding-based waivers for this event had the
funding determination been made for the plan year preceding the event year rather than the event year;
Form 5500 extension: 30 days after the plan's Form 5500 due date that next follows the date the
reportable event occurs, provided the event would not be reportable counting only those participant
reductions resulting from cessation of operations at a single facility; and
PBGC Form 1-ES extension: The due date for the Form 1-ES for the plan year following the event
year if:
1. The plan is required to file a Form 1-ES for the plan year following the event year (i.e., the plan has
500 or more participants for the event year),
2. The event would not be reportable counting only those participant reductions resulting from
cessation of operations at a single facility; and
3. The participant reduction represents no more than 20% of the total active participants (at the
beginning of the plan year(s) in which the reduction occurs) in all plans maintained by any member
of the plan's controlled group.

B. Failure to Make Required Minimum Funding Payments
(see 29 CFR §4043.25)
Definition of Event - A reportable event occurs when a required funding payment is not made by the
due date for the payment. Required payments include required quarterly contributions and payments
required as a condition for a funding waiver.

Reporting Waiver - Reporting of this event is waived if the required minimum funding payment is
made by the 30th day after the payment is due.
Note: If a contributing sponsor or controlled group member files a complete Form 200 with PBGC
within 10 days of the due date of the payment in accordance with 29 CFR §4043.81, the Form 200 filing
shall satisfy the notice requirement for this event. A reportable event notice under this section is not a
substitute for the Form 200.

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C. Inability to Pay Benefits When Due
(see 29 CFR §4043.26)
Definition of Event - A reportable event occurs when a plan is currently unable, or projected to be
unable, to pay benefits.
A plan is currently unable to pay benefits if the plan fails to provide any participant or beneficiary the
full benefits to which the person is entitled under the terms of the plan, at the time the benefit is due and
in the form in which it is due.
Note: This does not include a failure or inability to pay benefits caused solely by the need to verify the
person's eligibility for benefits; the inability to locate the person; or any other administrative delay, if
the delay is for less than the shorter of two months or two full benefit payment periods.
A plan is projected to be unable to pay benefits when, as of the last day of any quarter of a plan year, the
plan's liquid assets are less than two times the amount of the disbursements from the plan for such
quarter.

Reporting Waiver - Reporting of this event is waived unless the event occurs during a plan year for
which the plan is exempt from the liquidity shortfall rules.
D. Distribution to a Substantial Owner
(see 29 CFR §4043.27)
A substantial owner (see ERISA §4021(d)) is an individual who owns (or owned within the preceding 60
months):
1. The entire interest in an unincorporated trade or business;
2. Directly or indirectly, more than 10% of the capital or profits interest in a partnership; or
3. Directly or indirectly, more than 10% of the voting stock or the total stock of a corporation.
Definition of Event - A reportable event occurs for a plan when:
1. There is a distribution to a substantial owner;
2. The total of all distributions to the substantial owner within the one-year period ending with the date
of such distribution exceeds $10,000;
3. The distribution is for a reason other than the substantial owner's death; and
4. Immediately after the distribution, the plan has unfunded nonforfeitable benefits.
The value of a distribution to a substantial owner is the sum of:
1. The cash amounts actually received by the substantial owner, determined as of the date of receipt;
2. The purchase price of any irrevocable commitment, determined as of the date on which the
obligation to provide benefits passes from the plan to the insurer; and
3. The fair market value of any other assets distributed, determined as of the date when the plan
relinquishes control over the assets transferred directly or indirectly to the substantial owner.
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The date of distribution to a substantial owner of a cash distribution is the date it is received by the
substantial owner. The date of distribution to a substantial owner of an irrevocable commitment is the
date on which the obligation to provide benefits passes from the plan to the insurer. The date of any
other distribution to a substantial owner is the date when the plan relinquishes control over the assets
transferred directly or indirectly to the substantial owner.
The determination of whether a participant is (or has been in the preceding 60 months) a substantial
owner is made on the date when there has been a distribution that would be reportable under this section
if made to a substantial owner.

Reporting Waivers - Reporting of this event is waived if:
Distribution up to §415 limit: The total of all distributions to the substantial owner within the one-year
period ending with the date of the distribution does not exceed the limitation (as of the date the
reportable event occurs) under Code §415(b)(1)(A) (as adjusted in accordance with Code §415(d)). For
this purpose, the §415 limit is expressed as an annual benefit in the form of a straight life annuity to a
participant at ages 62 through 65. (For example, for calendar year 2009, the limit is $195,000.);

Funding-based waivers: For the event year:
- No variable rate premium (see Part IV.B); or
- 80% funded for vested benefits (see Part IV.D); or
Distribution up to 1% of assets: The sum of the values of all distributions to the substantial owner
within the one-year period ending with the date of the distribution is 1% or less of the end-of-year
current value of the plan's assets (as required to be reported on the plan's Form 5500) for either of the
two plan years immediately preceding the event year.

Extension of Reporting Deadline - The notice date (for an event that is not waived) is extended to:
PBGC Form 1 extension: 30 days after the plan's variable rate premium filing due date for the event
year, provided the plan would have satisfied any of the funding-based waivers for this event had the
funding determination been made for the plan year preceding the event year rather than the event year.

E. Change in Contributing Sponsor or Controlled Group
(see 29 CFR §4043.29)
Definition of Event - A reportable event occurs for a plan when there is a transaction that results, or will
result, in one or more persons ceasing to be members of the plan's controlled group.
For this purpose, a transaction includes, but is not limited to, a legally binding agreement, whether or
not written, to transfer ownership, an actual transfer of ownership, and an actual change in ownership
that occurs as a matter of law or through the exercise or lapse of pre-existing rights.
Note: This event does not include a transaction that will result solely in a reorganization involving a
mere change in identity, form, or place of organization, however effected.
Examples - The following examples assume no waivers apply.
Controlled Group Breakup
Facts: Plan A's controlled group consists of Company A (its contributing sponsor), Company B (which
maintains Plan B), and Company C. As a result of a transaction, the controlled group will break into two
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separate controlled groups -- one segment consisting of Company A and the other segment consisting of
Companies B and C.
Reporting: Both Company A (Plan A's contributing sponsor) and the plan administrator of Plan A are
required to report that Companies B and C will leave Plan A's controlled group. Company B (Plan B's
contributing sponsor) and the plan administrator of Plan B are required to report that Company A will
leave Plan B's controlled group. Company C is not required to report because it is not a contributing
sponsor or a plan administrator.
Change in Contributing Sponsor
Facts: Plan Q is maintained by Company Q. Company Q enters into a binding contract to sell a portion
of its assets and to transfer employees participating in Plan Q, along with Plan Q, to Company R, which
is not a member of Company Q's controlled group. There will be no change in the structure of Company
Q's controlled group. On the effective date of the sale, Company R will become the contributing sponsor
of Plan Q.
Reporting: A reportable event occurs on the date of the transaction (i.e., the binding contract) because,
as a result of the transaction, Company Q (and any other member of its controlled group) will cease to be
a member of Plan Q's controlled group. If, on the 30th day after Company Q and Company R enter into
the binding contract, the change in the contributing sponsor has not yet become effective, Company Q
has the reporting obligation. If the change in the contributing sponsor has become effective by the 30th
day, Company R has the reporting obligation.
Merger/Consolidation Within Controlled Group
Facts: Company X and Company Y are subsidiaries of Company Z, which maintains Plan Z. Company
Y merges into Company X (only Company X survives).
Reporting: Company Z and the plan administrator of Plan Z must report that Company Y has ceased to
be a member of Plan Z's controlled group.

Reporting Waivers - Reporting of this event is waived if:
De minimis 10-percent segment: The person or persons that will cease to be members of the plan's
controlled group represent a de minimis 10-percent segment of the plan's old controlled group for the
most recent fiscal year(s) ending on or before the date the reportable event occurs;
Foreign entity: Each person that will cease to be a member of the plan's controlled group is a foreign
entity other than a foreign parent; or

Funding-based waivers: For the event year:
- No variable rate premium (see Part IV.B);
- Less than $1 million in unfunded vested benefits (see Part IV.C); or
- Public company/80% funded: The plan's contributing sponsor before the effective date of the
transaction is a public company and the plan is at least 80% funded for vested benefits (see Part IV.D).

Extension of Reporting Deadline - The notice date (for an event that is not waived) is extended to
the latest of:

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PBGC Form 1 extension: 30 days after the plan's variable rate premium filing due date for the event
year, provided the plan would have satisfied any of the funding-based waivers for this event had the
funding determination been made for the plan year preceding the event year rather than the event year;
Foreign parent and foreign-linked entities: If the only persons ceasing to be members of the plan's
controlled group are foreign parents or foreign-linked entities, 30 days after the plan's first Form 5500
due date after the person required to notify PBGC has actual knowledge of the transaction and of the
controlled group relationship; and
Press releases; Forms 10Q: If the plan's contributing sponsor before the effective date of the transaction
is a public company, 30 days after the earlier of (1) the first Form 10Q filing deadline that occurs after
the transaction, or (2) the date (if any) when a press release with respect to the transaction is issued.

F. Liquidation
(see 29 CFR §4043.30)
Definition of Event - A reportable event occurs for a plan when a member of the plan's controlled
group:
1. Is involved in any transaction to implement its complete liquidation (including liquidation into
another controlled group member);
2. Institutes or has instituted against it a proceeding to be dissolved or is dissolved, whichever occurs
first; or
3. Liquidates in a case under the Bankruptcy Code, or under any similar law.
Note: An event described above may also be reportable under Bankruptcy or Similar Settlements (see
Part III.K).

Reporting Waivers - Reporting of this event is waived if:
De minimis 10-percent segment: The person or persons that liquidate represent a de minimis 10-percent
segment of the plan's controlled group for the most recent fiscal year(s) ending on or before the date the
reportable event occurs and each plan that was maintained by the liquidating member is maintained by
another member of the plan's controlled group after the liquidation;
Foreign entity: Each person that liquidates is a foreign entity other than a foreign parent; or

Funding-based waivers: Each plan that was maintained by the liquidating member is maintained by
another member of the plan's controlled group and, for the event year:
- No variable rate premium (see Part IV.B),
- Less than $1 million in unfunded vested benefits (see Part IV.C), or
- Public company/80% funded: The plan's contributing sponsor is a public company; the plan is at
least 80% funded for vested benefits (see Part IV.D); and each plan that was maintained by the
liquidating member is maintained by another member of the plan's controlled group after the
liquidation.

Extension of Reporting Deadline - The notice date (for an event that is not waived) is extended to
the latest of:

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PBGC Form 1 extension: 30 days after the plan's variable rate premium filing due date for the event
year, provided the plan would have satisfied any of the funding-based waivers for this event had the
funding determination been made for the plan year preceding the event year rather than the event year;
Foreign parent and foreign-linked entities: If the person liquidating is a foreign parent or foreignlinked entity, 30 days after the plan's first Form 5500 due date after the person required to notify PBGC
has actual knowledge of the transaction and of the controlled group relationship; and
Press releases; Forms 10Q: If the plan's contributing sponsor is a public company, 30 days after the
earlier of (1) the first Form 10Q filing deadline that occurs after the transaction, or (2) the date (if any)
when a press release with respect to the transaction is issued.

G. Extraordinary Dividend or Stock Redemption
(see 29 CFR §4043.31)
ERISA Definition - The reportable event described below replaces the reportable event on extraordinary
dividends and stock redemptions described in ERISA §4043(c)(11). Thus, reporting of any event
described under ERISA §4043(c)(11) is waived, unless the event would be reportable under this or
another reportable event.
Definition of Event - A reportable event occurs for a plan when any member of the plan's controlled
group declares a dividend (definition follows) or redeems its own stock, if the resulting distribution is a
reportable cash distribution, non-cash distribution or combined distribution as described below.
1. Cash distributions. A cash distribution is reportable if:
a. The distribution, when combined with any other cash distributions to shareholders previously
made during the fiscal year, exceeds the adjusted net income (definition follows) of the person
making the distribution for the preceding fiscal year; and
b. The distribution, when combined with any other cash distributions to shareholders previously
made during the fiscal year or during the three prior fiscal years, exceeds the adjusted net
income of the person making the distribution for the four preceding fiscal years.
2. Non-cash distributions. A non-cash distribution is reportable if its net value, when combined with
the net value (definition follows) of any other non-cash distributions to shareholders previously
made during the fiscal year, exceeds 10% of the total net assets (definition follows) of the person
making the distribution. To determine whether a distribution is reportable, both assets and liabilities
must be valued at fair market value.
3. Combined distributions. If both cash and non-cash distributions to shareholders are made during a
fiscal year, a distribution is reportable when the sum of the cash distribution percentage (definition
follows) and the non-cash distribution percentages (definition follows) for the fiscal year exceeds
100%.

Definitions
Adjusted net income means the net income before after-tax gain or loss on any sale of assets, as
determined in accordance with generally accepted accounting principles and practices.

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Cash distribution percentage means, for a fiscal year, the lesser of:
1. The percentage that all cash distributions to one or more shareholders made during that fiscal
year bears to the adjusted net income of the person making the distributions for the preceding
fiscal year, or
2. The percentage that all cash distributions to one or more shareholders made during that fiscal
year and the three preceding fiscal years bears to the adjusted net income of the person making
the distributions for the four preceding fiscal years.
Dividend means a distribution to one or more shareholders. A payment by a person to a member
of its controlled group is treated as a distribution to its shareholder(s).
Net value of non-cash distribution means the fair market value of assets transferred by the
person making the distribution, reduced by the fair market value of any liabilities assumed or
consideration given by the recipient in connection with the distribution. A distribution of stock
that one controlled group member holds in another controlled group member is disregarded. Net
value determinations should be based on readily available fair market value(s) or independent
appraisal(s) performed within one year before the distribution is made. To the extent that fair
market values are not readily available and no such appraisals exist, the fair market value of an
asset transferred in connection with a distribution or a liability assumed by a recipient of a
distribution shall be deemed to be equal to 200% of the book value of the asset or liability on the
books of the person making the distribution. Stock redeemed is deemed to have no value.
Non-cash distribution percentage means the percentage that the net value of the non-cash
distribution bears to one-tenth of the value of the total net assets of the person making the
distribution.
Total net assets means, with respect to the person declaring a non-cash distribution:
1. If all classes of the person's securities are publicly traded, the total market value (immediately
before the distribution is made) of the publicly-traded securities of the person making the
distribution;
2. If no classes of the person's securities are publicly traded, the excess (immediately before the
distribution is made) of the book value of the person's assets over the book value of the person's
liabilities, adjusted to reflect the net value of the non-cash distribution; or
3. If some but not all classes of the person's securities are publicly traded, the greater of the
amounts in (1) or (2) above.

Reporting Waivers - Reporting is waived if:
De minimis 5-percent segment: The person making the distribution is a de minimis 5-percent segment
of the plan's controlled group for the most recent fiscal year(s) ending on or before the date the
reportable event occurs;
Foreign entity: The person making the distribution is a foreign entity other than a foreign parent;
Foreign parent: The person making the distribution is a foreign parent and the distribution is made
solely to other members of the plan's controlled group; or

Funding-based waivers: For the event year:
- No variable rate premium (see Part IV.B);
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- Less than $1 million in unfunded vested benefits (see Part IV.C); or
- 80% funded for vested benefits (see Part IV.D).

Extension of Reporting Deadline - The notice date (for an event that is not waived) is extended to
the latest of:
PBGC Form 1 extension: 30 days after the plan's variable rate premium filing due date for the event
year, provided the plan would have satisfied any of the funding-based waivers for this event had the
funding determination been made for the plan year preceding the event year rather than the event year;
Foreign parent and foreign-linked entities: If the person making the distribution is a foreign parent or
foreign linked entity, 30 days after the plan's first Form 5500 due date after the person required to notify
PBGC has actual knowledge of the distribution and of the controlled group relationship; and
Press releases; Forms 10Q: If the plan's contributing sponsor is a public company, 30 days after the
earlier of (1) the first Form 10Q filing deadline that occurs after the distribution, or (2) the date (if any)
when a press release with respect to the distribution is issued.

H. Transfer of Benefit Liabilities
(see 29 CFR §4043.32)
Special Filing rule - For this event, only the plan administrator and contributing sponsor of the
transferor plan are required to file a reportable event notice. Notice by any other plan administrator or
contributing sponsor is waived.
Definition of Event - A reportable event occurs for a plan when:
1. The plan or any other plan maintained by any member of the plan’s controlled group makes a
transfer of benefit liabilities to a person, or to a plan or plans maintained by a person or persons, that
are not members of the transferor plan's controlled group; and
2. The amount of benefit liabilities transferred, in conjunction with other benefit liabilities transferred
during the 12-month period ending on the date of the transfer, is 3% or more of the plan's total
benefit liabilities. For this purpose, value both the benefit liabilities transferred and the plan's total
benefit liabilities as of any one date in the plan year in which the transfer occurs, using actuarial
assumptions that comply with Code §414(l).
The date of a transfer of benefit liabilities shall be determined on the basis of the facts and
circumstances of the particular situation. For transfers subject to Code §414(l), the date determined in
accordance with Code §414(l) and 26 CFR §1.414(l)-1(b)(11) will be considered the date of transfer.

Reporting Waivers - Reporting is waived if:
Complete plan transfer: All of the transferor plan's benefit liabilities and assets are transferred to one
other plan. (Note: This event may be reportable if it involves a change in contributing sponsor or
controlled group (see Part III.E);
De minimis transfer: The value of assets being transferred:
1. Equals the present value of the accrued benefits (whether or not vested) being transferred, using
actuarial assumptions that comply with Code §414(l), and
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2. In conjunction with other assets transferred during the same plan year, is less than 3% of the assets
of the transferor plan as of at least one day in that year;
§414(l) safe harbor: The transfer complies with Code §414(l) using the actuarial assumptions
prescribed for valuing benefits in terminated PBGC-trusteed plans under 29 CFR §4044.51-57; or
Fully-funded plans: The transfer complies with Code §414(l) and, after the transfer, the transferor and
transferee plans are fully funded (using the actuarial assumptions prescribed for valuing benefits in
terminated PBGC-trusteed plans under 29 CFR §4044.51-57).

I. Application for Minimum Funding Waiver
(see 29 CFR §4043.33)
Definition of Event - A reportable event occurs when an application for a minimum funding waiver is
submitted for a plan.

J. Loan Default
(see 29 CFR §4043.34)
Definition of Event - A reportable event occurs whenever there is a default under a loan agreement by a
member of a plan's controlled group with respect to a loan with an outstanding balance of $l0 million or
more if:
1. The default results from the debtor's failure to make a required payment when due (unless the
payment is made within 30 days after the due date);
2. The lender accelerates the loan; or
3. The debtor receives a written notice of default from the lender (and does not establish that the notice
was issued in error) on account of:
a. A drop in the debtor's cash reserves below an agreed-upon level,
b. An unusual or catastrophic event experienced by the debtor, or
c. A persisting failure by the debtor to attain agreed-upon financial performance levels.
Special Notice Date Rule - For this event, the notice date is 30 days after the person required to report
knows or has reason to know of the occurrence of the default, without regard to the time of any other
conditions required for the default to be reportable.
Example - Company A has a debt with an outstanding balance of $20 million, for which a payment is
due on October 1. Under the terms of the loan, the default may be cured within 10 days. Company A
does not make the payment until October 31. Because Company A has made the payment within thirty
days of the due date, no reportable event has occurred. If Company A does not make the payment by
October 31, a reportable event will have occurred on October 1, and notice will be due by October 31.

Reporting Waivers - Reporting of this event is waived if:
Default cured: The default is cured, or waived by the lender, within 30 days or, if later, by the end of
any cure period provided by the loan agreement;
Foreign entity: The debtor is a foreign entity other than a foreign parent; or
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Funding-based waivers: For the event year:
- No variable rate premium (see Part IV.B);
- Less than $1 million in unfunded vested benefits (see Part IV.C); or
- 80% funded for vested benefits (see Part IV.D).

Extension of Reporting Deadline - The notice date (for an event that is not waived) is extended to
the latest of:
Cure period extensions: One day after:
1. The applicable cure period provided in the loan agreement,
2. The date the loan is accelerated, or
3. The date the debtor receives written notice of the default;
PBGC Form 1 extension: 30 days after the plan's variable rate premium filing due date for the event
year, provided the plan would have satisfied any of the funding-based waivers for this event had the
funding determination been made for the plan year preceding the event year rather than the event year;
and
Foreign parent and foreign-linked entities: With respect to a loan default involving only a foreign
parent or a foreign-linked entity, 30 days after the plan's first Form 5500 due date after the person
required to notify PBGC has actual knowledge of the default and of the controlled group
relationship.

K. Bankruptcy or Similar Settlement
(see 29 CFR §4043.35)
Definition of Event - A reportable event occurs with respect to a plan when any member of the plan's
controlled group:
1. Commences a bankruptcy case (under the Bankruptcy Code) or has a bankruptcy case commenced
against it;
2. Commences, or has commenced against it, any other type of insolvency proceeding (including, but
not limited to, the appointment of a receiver);
3. Commences, or has commenced against it, a proceeding to effect a composition, extension, or
settlement with creditors;
4. Executes a general assignment for the benefit of creditors; or
5. Undertakes to effect any other nonjudicial composition, extension, or settlement with substantially
all its creditors.
Note: An event described above may also be reportable under Liquidation (see Part III.F).

Reporting Waivers - Reporting of this event is waived if the controlled group member described
above is a foreign entity other than a foreign parent.
17

Extension of Reporting Deadline - If the controlled group member described above is not a
contributing sponsor, the notice date is extended until 30 days after a person required to notify PBGC
has actual knowledge of the reportable event.

PART IV - FUNDING-BASED WAIVERS AND EXTENSIONS
A. General
Certain waivers and filing extensions depend on the plan's funding level. Sections B through D below
describe each of the funding-based waivers. Section E below describes funding-based extensions.

B. Waiver If No Variable Rate Premium
This waiver applies to a plan that is not required to pay a variable rate premium. A plan may qualify for
this waiver because it is exempt from the variable rate premium or because it has no unfunded vested
benefits.

C. Waiver If Less Than $1 Million in Unfunded Vested Benefits
This waiver applies to a plan that has less than $1 million in underfunding.

D. Waiver If At Least 80% Funded
This waiver applies if the fair market value of the plan's assets is at least 80% of the plan's vested
benefits amount.

E. Funding-Based Extension
Certain extensions of the filing deadline for certain reportable events also depend on the plan's funding
level.

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