Notice of Intent to Terminate
(Defined Benefit Plan)

Summary

Use this form to notify participants in a defined benefit plan covered by Title IV of the Employee Retirement Income Security Act (ERISA) of the plan's proposed termination date, as required under 29 C.F.R. § 4041.23. This template contains practical guidance, drafting notes, and alternate clauses. ERISA requires plan administrators to notify affected participants of a defined benefit plan covered the Pension Benefit Guaranty Corporation's (PBGC's) insurance program of the plan's termination, in advance of the termination date. If the terminating plan has sufficient assets to pay all benefit liabilities, then the plan may be terminated in a standard termination under ERISA § 4041(b)(1) (29 U.S.C. § 1341(b)). The standard termination rules require that the sponsoring employer must provide the notice of intent to terminate (NOIT) to each so-called affected party at least 60 days, and no more than 90 days, prior to the proposed termination date. 29 C.F.R. § 4041.23. For the contents of the NOIT, see 29 C.F.R. § 4041.23(b). Model language can be found in PBGC, Standard Termination Filing Instructions. Note, however, that pursuant to novel coronavirus (COVID-19) pandemic relief, an untimely notice will not give rise to a violation for notices due to be furnished between March 1, 2020, and 60 days after the announced end of the COVID-19 national emergency if the plan and responsible fiduciary act in good faith and comply as soon as practicable. EBSA Disaster Relief Notice 2020-01. See the Employee Benefit Plan COVID-19 Relief Chart and Tracker for more information. The COVID-19 national emergency period ended on May 11, 2023, which results in the outbreak period expiring on July 10, 2023. Executive Office of the President, Statement of Administration Policy and HHS, Fact Sheet: COVID-19 Public Health Emergency Transition Roadmap. Affected parties who should receive the NOIT include all participants, beneficiaries of deceased participants, alternate beneficiaries under qualified domestic relations orders, and employee organizations that represent participants. For guidance on notice delivery, see Defined Benefit Plan Standard Terminations — General Rules for Issuing Notices. The NOIT is often provided at the same time as a suspension of benefit notice is provided to active participants whose benefit accruals will cease as a result of the plan termination (unless participant accruals have already ceased under a prior plan freeze). 29 C.F.R. § 54.4980F-1. Plan administrators may combine the two documents in one mailing. For a template notices under ERISA Section 204(h), see ERISA § 204(h) Notice on Plan Termination and ERISA § 204(h) Notice of Benefit Accrual Reduction or Cessation. For more information about the standard termination of a defined benefit plan, including step by step rules to satisfy PBGC filing requirements, see Defined Benefit Plan Standard Terminations. Terminating plans must also send participants and beneficiaries an individualized notice regarding their plan benefits. For an annotated model template, see Notice of Plan Benefits (Defined Benefit Plan Termination). For a listing of content related to plan terminations, see Retirement Plan Terminations and Suspensions Resource Kit. For a full listing of key content covering retirement plan notification requirements, see ERISA Retirement Plan Notices Resource Kit. This template, slightly modified, may also be used for a plan undergoing a distress termination (see drafting notes for applicable differences). See 29 C.F.R. § 4041.43. For more information about the standard termination of a defined benefit plan, including step by step rules to satisfy PBGC filing requirements, see Defined Benefit Plan Standard Terminations.