ment of the applicability of the provisions of section 403 (a) of the Act, a statement that, to the extent that plan assets would otherwise be required to be held in trust under the provisions of section 403 of the Act, such assets that are held by a party in interest are held in a manner that would reasonably be expected to protect the plan against loss resulting from the satisfaction of a creditor's claim against the party in interest;

(9) A statement by the applicant that if any of the material facts contained in or underlying the statements made in the application is discovered by the applicant to be inaccurate, the applicant will promptly notify the Secretary in writing of such inaccuracy specifying the reasons for the inaccuracy; and

(10) A duly notarized certification by the person signing the application for postponement on behalf of the plan that he or she is duly authorized to execute the application on behalf of the plan, and that, under applicable penalties of law, the information in the application is, to the best of his or her knowledge and belief, true, correct and complete.

(e) Comments by participants and beneficiaries. Plan participants and beneficiaries and their authorized representatives may submit written comments respecting any application for postponement made under § 2550.414b-1(d) at any time after such application is filed, specifying any objections which they may have. A collective bargaining representative for a plan participant or beneficiary shall be deemed to be an authorized representative for purposes of this Part. Such comments shall be submitted at any time before the expiration of the period of the postponement to the Office of Employee Benefits Security, Labor-Management Services Administration, U.S. Department of Labor, P.O. Box 176, Washington, D.C. 20044.

(f) Notification to participants. (1) The applicant shall employ methods reasonably calculated to provide plan participants with notification that an application for postponement has been filed with the Secretary of Labor, describing in language calculated to be understood by the average plan participant the sections (or provisions of sections) of the Act for which the delay has been requested, the date until which such postponement has been requested, the reasons for requesting the postpone

ment, why the postponement will not adversely affect the interest of plan participants and beneficiaries, and stating that plan participants and beneficiaries may comment on the requested postponement by writing to the Office of Employee Benefits Security, Labor-Management Services Administration, U.S. Department of Labor, P.O. Box 176, Washington, D.C. 20044.

(2) Notice must be in writing and must be reasonably calculated to reach a substantial number of plan participants. While there is no prescribed form or method of delivery for adequate notice, and while other forms or methods of delivery may be deemed acceptable under the particular circumstances involved, any of the following shall be deemed adequate notice to plan participants:

(i) The prominent posting, not later than 30 days after the date of application for postponement, of the notification required by § 2550.414b-1(f) (1) above at those locations customarily used by the employer for notices to employees with regard to labor-management relations matters at worksites of plan participants or, if the plan is maintained pursuant to a collective bargaining agreement and notices to employees with regard to labor-management relations matters are ordinarily posted at locations such as local union meeting places, at such locations;

(ii) The mailing by first-class mail, not later than 30 days after the date of the application for postponement, of the notification required by § 2550.414b-1(f) (1) above to the last known address of substantially all plan participants;

(iii) The publishing, not later than 60 days after the date of the application for postponement, of the notification required by § 2550.414b-1 (f) (1) above in a publication which is directed to a substantial number of plan participants; or

(iv) The utilization of any combination of the above methods reasonably calculated to so notify a substantial number of plan participants.

If the plan is the subject of one or more collective bargaining agreements, the applicant shall also mail the notification required by § 2550.414b-1 (f) (1) above by first-class mail, not later than 15 days after the date of application for postponement, to each collective bargaining agent representing participants covered by the plan.

(3) In the case of a plan which applied for a postponement of the applicability of sections 402, 403 (other than 403(c)) and 405 (other than 405 (a) and (d)), the application of which has been approved under paragraph (h), and which has not been amended so as to comply with such sections before July 1, 1975, the applicant or any other person authorized to file an application for a plan under paragraph (b) shall employ methods reasonably calculated to provide plan participants and, if the plan is the subject of one or more collective bargaining agreements, each collective bargaining agent representing participants covered by the plan, with notification that the Secretary of Labor has extended postponements of the applicability of those sections to the plan until not later than January 1, 1976. This notification shall comply with the requirements of subparagraph (2) of this paragraph.

(g) Length of postponement. (1) All postponements of the applicability of section 410 (a) of the Act approved by the Secretary shall be effective for a period of time not extending beyond June 30, 1975.

(2) All postponements of sections 402, 403 (other than 403 (c)) and 405 (other than 405 (a) and (d)) of the Act approved by the Secretary shall be effective for a period of time extending through December 31, 1975.

(h) Notification of Secretary's decision with respect to postponement; effect of non-notification. (1) It is contemplated that notification to applicants of approval or disapproval will be made before January 1, 1975, respecting those applications submitted on or before December 10, 1974;

(2) In the case of applications submitted after December 10, 1974, and before January 1, 1975, notification of approval or disapproval will be made as expeditiously as possible, and in the

case of any application submitted on or before December 31, 1974, as to which notification of approval or disapproval has not been made before January 1, 1975, the application shall be deemed to be approved, subject to the provisions of § 2550.414b−1(i).

(3) In any case in which notification of disapproval is made before January 1, 1975, and the disapproval is based on receipt of an incomplete application, the applicant shall have a period of 30 days from the date of such notification to submit an amended application, and the application shall be deemed approved during such period.

(4) Applications will not be accepted after December 31, 1974, except for good cause shown for the failure to submit a timely application.

(i) Revocation or modification of postponement. The Secretary may revoke or modify any postponements approved (or deemed approved) under § 2550.414b-1 (h) if, upon receipt of comments or upon investigation (or, in the case of an application received too late for review and notification before January 1, 1975, upon review of the application) he determines that such postponement is not necessary to amend the instrument establishing the plan or is adverse to the interest of participants and beneficiaries. Before issuing any proposed decision of revocation or modification, the Secretary shall give the applicant and any persons who filed comments 45 days written notice of the proposed revocation or modification and the reasons therefor and an opportunity to file comments with respect to the proposed action, in accordance with procedures designated in the notice.

Sec. 505, Pub. L. 93-406, 88 Stat. 894 (29 U.S.C. 1135) and sec. 414(b) (2), Pub. L. 93406, 88 Stat. 889 (29 U.S.C. 1114). [39 FR 40853, Nov. 21, 1974. Redesignated at 40 FR 20629, May 12, 1975, and amended at 40 FR 24897, June 11, 1975]

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Board of Directors may deem necessary or desirable to the conduct of its business. § 2601.3 Board of Directors.

(a) The Board of Directors shall establish the policies of the Corporation and shall perform the other functions assigned to the Board of Directors in Title IV of the Employee Retirement Income Security Act of 1974. The Board of Directors of the Corporation shall be composed of the Secretary of Labor, the Secretary of the Treasury, and the Secretary of Commerce. Members of the Board shall serve without compensation, but shall be reimbursed by the Corporation for travel, subsistence, and other necessary expenses incurred in the performance of their duties as members of the Board. A person at the time of a meeting of the Board of Directors who is serving as Secretary of Labor, Secretary of the Treasury or Secretary of Commerce in an acting capacity shall serve as a member of the Board of Directors

with the same authority and effect as the designated Secretary.

(b) The following powers are expressly reserved to the Board of Directors and shall not be delegated:

(1) Approval of all proposed and final substantive regulations prior to publication in the FEDERAL REGISTER;

(2) Approval of all reports or recommendations to the Congress that are required by statute;

(3) Establishment from time to time of the Corporation's budget and debt ceiling up to the statutory limit;

(4) Determination from time to time of limits on advances to the revolving funds administered by the Corporation pursuant to section 4005(a) of the Act;

(5) Final decision on any policy matter that would materially affect the rights of a substantial number of employers or covered participants and beneficiaries.

Regular meetings of the Board of Directors shall be held at such times as the Chairman shall select. Special meetings of the Board of Directors shall be called by the Chairman on the request of any other Director. Reasonable notice of any meetings shall be given to each Director. The General Counsel of the Corporation shall serve as Secretary to the Board of Directors and keep its minutes. As soon as practicable after each meeting, a draft of the minutes of such meeting shall be distributed to each member of the Board for correction or approval.

§ 2601.7 Place of meetings; use of conference call communications equip

ment.

Meetings of the Board of Directors shall be held at the principal office of the Corporation unless otherwise determined by the Board of Directors or the Chairman. Any Director may participate in a meeting of the Board of Directors through the use of conference call telephone or similar communications equipment, by means of which all persons participating in the meeting can simultaneously speak to and hear each other. Any Director so participating in a meeting shall be deemed present for all purposes. Actions taken by the Board of Directors at meetings conducted through the use of such equipment, including the votes of each member, shall be recorded in the usual manner in the minutes of the meetings of the Board of Directors. A resolution of the Board of Directors signed by each of its three members shall have the same force and effect as if agreed at a duly called meeting and shall be recorded in the minutes of the Board of Directors.

years in progress on and beginning on or after September 2, 1974.

(b) This part applies to all covered plans, as provided by section 4021 of the § 2602.2 Definitions.

As used in this part:

"Act" means the Employee Retirement Income Security Act of 1974.

"Participant" means (a) an individual currently accruing benefits or earnings or retaining credited service under the terms of the plan; (b) a former employee with vested rights to immediate or deferred benefits; (c) a retiree who is receiving or is eligible to receive benefits from the plan; (d) a retiree or former employee for whom a fully paid-up immediate or deferred annuity has been purchased if such individual retains a legal claim against the plan for benefits or if the plan retains a participating interest in the annuity policy; (e) a deceased participant whose survivors are receiving or are eligible to receive benefits from the plan; and, (f) any other individual who is defined as a participant under the terms of the plan.

"PBGC" means the Pension Benefit Guaranty Corporation.

"Plan Year" means the calendar, policy or fiscal year on which the records of the plan are kept.

§ 2602.3 Filing requirement.

(a) No later than October 2, 1974, the plan administrator of each covered plan shall file in accordance with the instructions contained therein the premium declaration form prescribed by this part and any estimated premium payments due for any plan year beginning before and in progress on September 2, 1974.

(b) No later than 30 days after the beginning of any plan year beginning on or after September 2, 1974, the plan administrator of each covered plan shall file in accordance with the instructions contained therein the premium declaration form prescribed by this part and any estimated premium payments due for such plan year.

(c) No later than 2 years and 30 days after the beginning of any plan year in progress on or beginning on or after September 2, 1974, the plan administrator of each covered plan shall file in accordance with the instructions contained therein the premium declaration for prescribed by this part and any premium payments necessary, or request for re

funds due, as a result of reconciling the estimated premium payments paid, with the actual premium payment due, for such plan year.

(d) A premium declaration revision, revising a previous estimate of premium payments, may be filed on the form prescribed by this part at any time prior to the filing of the reconciliation of the estimated premium with the actual premium due.

(e) The date prescribed for payment of premiums for plans not previously covered by section 4021 of the Act is 30 days after the later of the date the plan documents are signed or the date of the plan's effectiveness.

(f) Any premium declaration filing not filed in accordance with this part, not filed in accordance with the instructions contained in the form, not accompanied by the required premium payment or otherwise incomplete may, in the discretion of the PBGC, be returned in whole or in part to the plan administrator and treated as not having been filed.

§ 2602.4 Coverage for guaranteed basic benefits.

(a) The failure by a plan administrator to pay the premiums due under this part will not result in that plan's loss of coverage for basic benefits guaranteed under section 4022(a) of the Act.

(b) The payment of the premiums imposed by this part will not result in coverage for basic benefits guaranteed under section 4022(a) of the Act for plans not covered under section 4021 of the Act. § 2602.5 Premium rate.

For plan years in progress on or beginning on or after September 2, 1974, the premium rate for basic benefits guaranteed under section 4022 (a) of the Act shall be as follows:

(a) Plans which are not multiemployer plans shall pay a premium of one dollar for each individual who is a participant in such plan at any time during the plan year;

(b) Multiemployer plans shall pay a premium of fifty cents for each individual who is a participant in such plan at any time during the plan year.