Find out the rules and requirements for standard termination of a fully funded pension plan including notices filings distribution of benefits and audits distress terminations find out the requirements for distress termination of an underfunded pension plan including the process to be followed and notices and other necessary filings. A pension plan can file a standard termination if it can pay all of the benefits owed in a standard termination pbgc reviews the termination to make sure that the plan administrator follows all required steps to ensure proper notification to workers and retirees and proper arrangements for payment. Types of plan terminations 4 what is a plan termination a pension plan is terminated only by following certain specific rules a plan that has enough money to pay all benefits owed participants and beneficiaries may terminate in a standard termination for each participant or beneficiary the plan administrator either purchases an annuity . When a plan has formally terminated and the plan sponsor has submitted a form 5310 pdf application for determination for terminating plan the irs will review the application many times we ask for additional information before we issue a favorable letter and the review process may last for several months