Search the Community

https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/subject-group-ECFR2b7577e2af5412b/section-1.436-1 URL: https://www.ecfr.gov/current/title-26/part-1/section-1.436-1#p-1.436-1(a)(3)(ii)(B) Citation: 26 CFR 1.436-1(a)(3)(ii)(B) Application of section 436 after termination of a plan — (A) In general. Except as otherwise provided in paragraph (a)(3)(ii)(B) of this section, any section 436 limitations in effect immediately before the termination of a plan do not cease to apply thereafter. (B) Exception for payments pursuant to plan termination. The limitations under section 436(d) and paragraph (d) of this section do not apply to prohibited payments (within the meaning of paragraph (j)(6) of this section) that are made to carry out the termination of a plan in accordance with applicable law. For example, a plan sponsor's purchase of an irrevocable commitment from an insurer to pay benefit liabilities in connection with the standard termination of a plan in accordance with section 4041(b)(3) of the Employee Retirement Income Security Act of 1974, as amended (ERISA), and in accordance with 29 CFR 4041.28, does not violate section 436(d) or this section. __________________________________________________________________________________________________________________________________________________________________________________________________ Please indicate if unpredictable contingent event benefits form part of the exceptions for plan terminations.