This guide concerns private defined-benefit pension arrangements. Do not decide §412 from “pension,” funding, frozen, or terminated status: first test the plan definition, Title I, Part 4, property, natural persons who handle it, exemptions, and then amount and form. 29 U.S.C. §1002 29 U.S.C. §1003 29 U.S.C. §1101 29 U.S.C. §1112
Use the retirement-plan hub for the broader plan-type route; collectively bargained governance and handler issues are addressed in the multiemployer pension plan guide.
Start with the facts, not the plan label
- 1Confirm an employee pension benefit plan exists.
- 2Test Title I coverage and then Part 4 applicability.
- 3Identify plan funds or other property.
- 4Identify each natural person whose actual authority creates a risk of loss.
- 5Test any person- or institution-specific exemption.
- 6Only then calculate amount, confirm form, and recheck live surety and filing materials.
Private defined-benefit and cash-balance plans
A private-employer retirement program can meet ERISA’s pension-plan definition, subject to the Title I and Part 4 tests. A cash-balance plan is a defined-benefit plan despite account-like benefit statements; those hypothetical balances do not replace the property-and-handler analysis. 29 U.S.C. §1002(2), (35) Internal Revenue Service
Trust property and handler authority
For a plan that reaches §412, identify its actual funds or other property and test trustees, committee members, staff, and provider personnel based on custody, payment authority, transfers, and final investment or disbursement decisions. Neither a fiduciary title nor a provider relationship alone decides handling. 29 C.F.R. Part 2580 FAB 2008-04, Q5–Q8 and Q17–Q21
If the plan receives employee contributions, the participant contributions guide explains the related remittance timing, property, and handling questions.
“Handling” is a functional, natural-person test: it can include custody, transfer power, disbursement or signature authority, final investment authority, or supervisory responsibility over handling functions. Physical contact alone is not the test, and controls can affect the risk analysis; they are not an independent exemption. 29 C.F.R. §2580.412-6 FAB 2008-04, Q5–Q8 and Q18–Q21 Use the functional handling guide for a role-by-role review.
Frozen or terminated is not dispositive
A freeze or termination label does not itself resolve whether Title I, Part 4, plan property, or handling remains. Review residual trust assets, payment and investment authority, distributions, and any changed exemptions under the same sequence. 29 U.S.C. §1003 29 U.S.C. §1101 FAB 2008-04, Q17–Q21
Complete the review
If the facts reach §412, calculate protection from the amount each nonexempt handler handled—not automatically from year-end assets—and verify the bond’s form and no-deductible requirement. Confirm the surety against Treasury’s live list and use the instructions for the applicable Form 5500 filing year. 29 U.S.C. §1112 29 C.F.R. §2580.412-11 U.S. Department of the Treasury U.S. Department of Labor, Part VI, line 9d
See the requirements guide for form and surety review and the coverage guide for the calculation method.
For shared, blanket, or scheduled coverage, see the multiple-plans guide to evaluate each plan's available protection. Complete the annual renewal review when handlers, amounts, terms, plans, or reporting facts change.