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Federal Register / Vol. 86, No. 5 / Friday, January 8, 2021 / Rules and Regulations
each relevant contribution rate for the year may be multiplied by the projected contribution base units for the year corresponding to that rate and the sum, for all rates, may be used in place of total contributions for that year.
e Effective and applicability dates.
1 Effective date. This section is effective on February 8, 2021.
2 Applicability date. This section applies to employer withdrawals from multiemployer plans that occur in plan years beginning on or after February 8, 2021.
20. Add 4211.15 to read as follows:

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4211.15 Simplified methods for determining expiration date of a collective bargaining agreement.

a In general. A plan sponsor may amend a plan without PBGC approval to adopt any of the simplified methods in this section to fulfill the requirements of section 305g4 of ERISA and 432g4
of the Code and 4211.4b2iii for a withdrawal that occurs on or after the plans reversion date.
b Reversion date. The reversion date is either 1 The expiration date of the first collective bargaining agreement requiring plan contributions that expires after the plan is no longer in endangered or critical status, or 2 The date that is the later of i The end of the first plan year following the plan year in which the plan is no longer in endangered or critical status; or ii The end of the plan year that includes the expiration date of the first collective bargaining agreement requiring plan contributions that expires after the plan is no longer in endangered or critical status.
3 For purposes of paragraph b2 of this section, the expiration date of a collective bargaining agreement that by its terms remains in force until terminated by the parties thereto is considered to be the earlier of i The termination date agreed to by the parties thereto; or ii The first day of the third plan year following the plan year in which the plan is no longer in endangered or critical status.
c Example. The simplified method in paragraph b1 of this section is illustrated by the following example.
1 Facts. A plan certifies that it is not in endangered or critical status for the plan year beginning January 1, 2021.
The plan operates under several collective bargaining agreements. The plan sponsor adopts a rule providing that all contribution increases will be included in the numerator and denominator of the allocation fractions
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for withdrawals occurring after October 31, 2022, the expiration date of the first collective bargaining agreement requiring plan contributions that expires after January 1, 2021.
2 Allocation fraction. A contributing employer withdraws from the plan in November 2022, after the date designated by the plan sponsor for the inclusion of all contribution rate increases in the allocation fraction. The allocation fraction used by the plan sponsor to determine the employers share of the plans unfunded vested benefits includes all of the employers required contributions in the numerator and total contributions made by all employers in the denominator, including any amounts related to contribution increases previously disregarded.
d Effective and applicability dates.
1 Effective date. This section is effective on February 8, 2021.
2 Applicability date. This section applies to employer withdrawals from multiemployer plans that occur in plan years beginning on or after February 8, 2021.
21. Add 4211.16 to read as follows:
4211.16 Simplified methods for disregarding benefit reductions and benefit suspensions.

a In general. A plan sponsor may amend a plan without PBGC approval to adopt the simplified methods in this section to fulfill the requirements of section 305g1 of ERISA and section 432g1 of the Code and 4211.6 to disregard benefit reductions and benefit suspensions.
b Basic rule. The withdrawal liability of a withdrawing employer is the sum of paragraphs b1 and 2 of this section, and then adjusted by paragraphs A-D of section 4201b1
of ERISA. The amount determined under paragraph b1 may not be less than zero.
1 The amount that would be the employers allocable amount of unfunded vested benefits determined in accordance with section 4211 of ERISA
under the method in use by the plan without regard to 4211.6 but taking into account 4211.4; and 2 The employers proportional share of the value of each of the benefit reductions and benefit suspensions required to be disregarded under 4211.6 determined in accordance with this section.
c Benefit suspension. This paragraph c applies to a benefit suspension under 4211.6a3.
1 General. The employers proportional share of the present value of a benefit suspension as of the end of
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the plan year before the employers withdrawal is determined by applying paragraph c2 or 3 of this section to the present value of the suspended benefits, as authorized by the Department of the Treasury in accordance with section 305e9 of ERISA, calculated either as of the date of the benefit suspension or as of the end of the plan year coincident with or following the date of the benefit suspension the authorized value.
2 Static value method. A plan may provide that the present value of the suspended benefits as of the end of the plan year in which the benefit suspension takes effect and for each of the succeeding 9 plan years is the authorized value in paragraph c1 of this section. An employers proportional share of the present value of a benefit suspension to which this paragraph c applies using the static value method is determined by multiplying the present value of the suspended benefits by a fraction i The numerator is the sum of all contributions required to be made by the withdrawing employer for the 5
consecutive plan years ending before the plan year in which the benefit suspension takes effect; and ii The denominator is the total of all employers contributions for the 5
consecutive plan years ending before the plan year in which the suspension takes effect, increased by any employer contributions owed with respect to earlier periods which were collected in those plan years, and decreased by any amount contributed by an employer that withdrew from the plan during those plan years. If a plan uses an allocation method other than the presumptive method in section 4211b of ERISA or similar method, the denominator after the first year is decreased by the contributions of any employers that withdrew from the plan and were unable to satisfy their withdrawal liability claims in any year before the employers withdrawal.
iii In determining the numerator and the denominator in paragraph c2 of this section, the rules under 4211.4
and permissible modifications under 4211.12 and simplified methods under 4211.14 and 4211.15 apply.
3 Adjusted value method. A plan may provide that the present value of the suspended benefits as of the end of the plan year in which the benefit suspension takes effect is the authorized value in paragraph c1 of this section and that the present value as of the end of each of the succeeding nine plan years the revaluation date is the present value, as of a revaluation date, of the benefits not expected to be paid
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