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employers were liable. ERISA established the PBGC to operate a
mandatory insurance program that provides for benefits if a
pension plan is terminated without adequate funding. In re
Pension Plan For Employees of Broadway Maintenance, 707 F.2d 647,
648 (2d Cir. 1983).
Concerning the Plan, GCI filed a Notice of Intent to
Terminate with the PBGC, stating that it planned to effect the
“waiver”. The PBGC then issued a Notice of Sufficiency after it
determined that the Plan’s assets were sufficient to discharge
all obligations under the Plan. See sec. 2617.12(c), PBGC Regs.
A Notice of Sufficiency is not a determination of the Federal
income tax consequences of termination; its purpose is to address
plans’ financial sufficiency. Therefore, petitioner’s reliance
on the Notice of Sufficiency is misplaced.
Finally, petitioner contends that the Plan’s excess funds
could be waived by petitioner. Petitioner argues that, pursuant
to section 1.401-2(b)(2), Income Tax Regs., excess plan funds may
revert back to the employer if due to actuarial error. In this
regard, petitioner argues that there was “actuarial error”
because his waived funds were no longer needed to meet the
obligations to the other Plan participants.
Section 1.401-2(b)(1), Income Tax Regs., provides, in
relevant part:
A balance due to an “erroneous actuarial computation”
is the surplus arising because actual requirements
differ from the expected requirements even though the
latter were based upon previous actuarial valuations of
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