-CITE-
    29 USC CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY
           PROGRAM                                         01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
-MISC1-
         CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM     


           SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS       

                      SUBTITLE A - GENERAL PROVISIONS                  
    Sec.                                                     
    1001.       Congressional findings and declaration of policy.     
    1001a.      Additional Congressional findings and declaration of
                 policy.                                              
    1001b.      Findings and declaration of policy.                   
    1002.       Definitions.                                          
    1003.       Coverage.                                             

                    SUBTITLE B - REGULATORY PROVISIONS                

                     PART 1 - REPORTING AND DISCLOSURE                 
    1021.       Duty of disclosure and reporting.                     
    1022.       Summary plan description.                             
    1023.       Annual reports.                                       
    1024.       Filing with Secretary and furnishing information to
                 participants.                                        
    1025.       Reporting of participant's benefit rights.            
    1026.       Reports made public information.                      
    1027.       Retention of records.                                 
    1028.       Reliance on administrative interpretations.           
    1029.       Forms.                                                
    1030.       Alternative methods of compliance.                    
    1031.       Repeal and effective date.                            

                    PART 2 - PARTICIPATION AND VESTING                
    1051.       Coverage.                                             
    1052.       Minimum participation standards.                      
    1053.       Minimum vesting standards.                            
    1054.       Benefit accrual requirements.                         
    1055.       Requirement of joint and survivor annuity and
                 preretirement survivor annuity.                      
    1056.       Form and payment of benefits.                         
    1057.       Temporary variances from certain vesting requirements.
    1058.       Mergers and consolidations of plans or transfers of
                 plan assets.                                         
    1059.       Recordkeeping and reporting requirements.             
    1060.       Multiple employer plans.                              
    1061.       Effective dates.                                      

                             PART 3 - FUNDING                         
    1081.       Coverage.                                             
    1082.       Minimum funding standards.                            
    1083.       Variance from minimum funding standard.               
    1084.       Extension of amortization periods.                    
    1085.       Alternative minimum funding standard.                 
    1085a.      Security for waivers of minimum funding standard and
                 extensions of amortization period.                   
    1085b.      Security required upon adoption of plan amendment
                 resulting in significant underfunding.               
    1086.       Effective dates.                                      

                     PART 4 - FIDUCIARY RESPONSIBILITY                 
    1101.       Coverage.                                             
    1102.       Establishment of plan.                                
    1103.       Establishment of trust.                               
    1104.       Fiduciary duties.                                     
    1105.       Liability for breach of co-fiduciary.                 
    1106.       Prohibited transactions.                              
    1107.       Limitation with respect to acquisition and holding of
                 employer securities and employer real property by
                 certain plans.                                       
    1108.       Exemptions from prohibited transactions.              
    1109.       Liability for breach of fiduciary duty.               
    1110.       Exculpatory provisions; insurance.                    
    1111.       Persons prohibited from holding certain positions.    
    1112.       Bonding.                                              
    1113.       Limitation of actions.                                
    1114.       Effective date.                                       

                  PART 5 - ADMINISTRATION AND ENFORCEMENT              
    1131.       Criminal penalties.                                   
    1132.       Civil enforcement.                                    
    1133.       Claims procedure.                                     
    1134.       Investigative authority.                              
    1135.       Regulations.                                          
    1136.       Coordination and responsibility of agencies enforcing
                 this subchapter and related Federal laws.            
    1137.       Administration.                                       
    1138.       Appropriations.                                       
    1139.       Separability.                                         
    1140.       Interference with protected rights.                   
    1141.       Coercive interference.                                
    1142.       Advisory Council on Employee Welfare and Pension
                 Benefit Plans.                                       
    1143.       Research, studies, and reports.                       
    1143a.      Studies by Comptroller General.                       
    1144.       Other laws.                                           
    1144a.      Clarification of church welfare plan status under
                 State insurance law.                                 
    1145.       Delinquent contributions.                             
    1146.       Outreach to promote retirement income savings.        
    1147.       National Summit on Retirement Savings.                
    1148.       Authority to postpone certain deadlines by reason of
                 Presidentially declared disaster or terroristic or
                 military actions.                                    

     PART 6 - CONTINUATION COVERAGE AND ADDITIONAL STANDARDS FOR GROUP
                               HEALTH PLANS
    1161.       Plans must provide continuation coverage to certain
                 individuals.                                         
    1162.       Continuation coverage.                                
    1163.       Qualifying event.                                     
    1164.       Applicable premium.                                   
    1165.       Election.                                             
    1166.       Notice requirements.                                  
    1167.       Definitions and special rules.                        
    1168.       Regulations.                                          
    1169.       Additional standards for group health plans.          

                  PART 7 - GROUP HEALTH PLAN REQUIREMENTS              

       SUBPART A - REQUIREMENTS RELATING TO PORTABILITY, ACCESS, AND
                               RENEWABILITY
    1181.       Increased portability through limitation on
                 preexisting condition exclusions.                    
    1182.       Prohibiting discrimination against individual
                 participants and beneficiaries based on health
                 status.                                              
    1183.       Guaranteed renewability in multiemployer plans and
                 multiple employer welfare arrangements.              

                      SUBPART B - OTHER REQUIREMENTS                  
    1185.       Standards relating to benefits for mothers and
                 newborns.                                            
    1185a.      Parity in application of certain limits to mental
                 health benefits.                                     
    1185b.      Required coverage for reconstructive surgery following
                 mastectomies.                                        

                      SUBPART C - GENERAL PROVISIONS                  
    1191.       Preemption; State flexibility; construction.          
    1191a.      Special rules relating to group health plans.         
    1191b.      Definitions.                                          
    1191c.      Regulations.                                          

     SUBCHAPTER II - JURISDICTION, ADMINISTRATION, ENFORCEMENT; JOINT
                         PENSION TASK FORCE, ETC.

        SUBTITLE A - JURISDICTION, ADMINISTRATION, AND ENFORCEMENT    
    1201.       Procedures in connection with the issuance of certain
                 determination letters by the Secretary of the
                 Treasury covering qualifications under Internal
                 Revenue Code.                                        
    1202.       Procedures with respect to continued compliance with
                 Internal Revenue requirements relating to
                 participation, vesting, and funding standards.       
    1202a.      Employee plans compliance resolution system.          
    1203.       Procedures in connection with prohibited transactions.
    1204.       Coordination between the Department of the Treasury
                 and the Department of Labor.                         

      SUBTITLE B - JOINT PENSION, PROFIT-SHARING, AND EMPLOYEE STOCK
                    OWNERSHIP PLAN TASK FORCE; STUDIES

        PART 1 - JOINT PENSION, PROFIT-SHARING, AND EMPLOYEE STOCK
                         OWNERSHIP PLAN TASK FORCE
    1221.       Establishment.                                        
    1222.       Duties.                                               

                          PART 2 - OTHER STUDIES                      
    1231.       Congressional study.                                  
    1232.       Protection for employees under Federal procurement,
                 construction, and research contracts and grants.     

                   SUBTITLE C - ENROLLMENT OF ACTUARIES               
    1241.       Joint Board for the Enrollment of Actuaries.          
    1242.       Enrollment by Board; standards and qualifications;
                 suspension or termination of enrollment.             

                SUBCHAPTER III - PLAN TERMINATION INSURANCE            

             SUBTITLE A - PENSION BENEFIT GUARANTY CORPORATION         
    1301.       Definitions.                                          
    1302.       Pension Benefit Guaranty Corporation.                 
    1303.       Operation of corporation.                             
    1304.       Repealed.                                             
    1305.       Pension benefit guaranty funds.                       
    1306.       Premium rates.                                        
    1307.       Payment of premiums.                                  
    1308.       Annual report by the corporation.                     
    1309.       Portability assistance.                               
    1310.       Authority to require certain information.             
    1311.       Repealed.                                             

                           SUBTITLE B - COVERAGE                       
    1321.       Coverage.                                             
    1322.       Single-employer plan benefits guaranteed.             
    1322a.      Multiemployer plan benefits guaranteed.               
    1322b.      Aggregate limit on benefits guaranteed; criteria
                 applicable.                                          
    1323.       Plan fiduciaries.                                     

                         SUBTITLE C - TERMINATIONS                     
    1341.       Termination of single-employer plans.                 
    1341a.      Termination of multiemployer plans.                   
    1342.       Institution of termination proceedings by the
                 corporation.                                         
    1343.       Reportable events.                                    
    1344.       Allocation of assets.                                 
    1345.       Recapture of payments.                                
    1346.       Reports to trustee.                                   
    1347.       Restoration of plans.                                 
    1348.       Termination date.                                     
    1349.       Repealed.                                             
    1350.       Missing participants.                                 

                          SUBTITLE D - LIABILITY                      
    1361.       Amounts payable by corporation.                       
    1362.       Liability for termination of single-employer plans
                 under a distress termination or a termination by
                 corporation.                                         
    1363.       Liability of substantial employer for withdrawal from
                 single-employer plans under multiple controlled
                 groups.                                              
    1364.       Liability on termination of single-employer plans
                 under multiple controlled groups.                    
    1365.       Annual report of plan administrator.                  
    1366.       Annual notification to substantial employers.         
    1367.       Recovery of liability for plan termination.           
    1368.       Lien for liability.                                   
    1369.       Treatment of transactions to evade liability; effect
                 of corporate reorganization.                         
    1370.       Enforcement authority relating to terminations of
                 single-employer plans.                               
    1371.       Penalty for failure to timely provide required
                 information.                                         

          SUBTITLE E - SPECIAL PROVISIONS FOR MULTIEMPLOYER PLANS      

                       PART 1 - EMPLOYER WITHDRAWALS                   
    1381.       Withdrawal liability established; criteria and
                 definitions.                                         
    1382.       Determination and collection of liability;
                 notification of employer.                            
    1383.       Complete withdrawal.                                  
    1384.       Sale of assets.                                       
    1385.       Partial withdrawals.                                  
    1386.       Adjustment for partial withdrawal; determination of
                 amount; reduction for partial withdrawal liability;
                 procedures applicable.                               
    1387.       Reduction or waiver of complete withdrawal liability;
                 procedures and standards applicable.                 
    1388.       Reduction of partial withdrawal liability.            
    1389.       De minimis rule.                                      
    1390.       Nonapplicability of withdrawal liability for certain
                 temporary contribution obligation periods; exception.
    1391.       Methods for computing withdrawal liability.           
    1392.       Obligation to contribute.                             
    1393.       Actuarial assumptions.                                
    1394.       Application of plan amendments; exception.            
    1395.       Plan notification to corporation of potentially
                 significant withdrawals.                             
    1396.       Special rules for plans under section 404(c) of title
                 26.                                                  
    1397.       Application of part in case of certain pre-1980
                 withdrawals; adjustment of covered plan.             
    1398.       Withdrawal not to occur because of change in business
                 form or suspension of contributions during labor
                 dispute.                                             
    1399.       Notice, collection, etc., of withdrawal liability.    
    1400.       Approval of amendments.                               
    1401.       Resolution of disputes.                               
    1402.       Reimbursements for uncollectible withdrawal liability.
    1403.       Withdrawal liability payment fund.                    
    1404.       Alternative method of withdrawal liability payments.  
    1405.       Limitation on withdrawal liability.                   

         PART 2 - MERGER OR TRANSFER OF PLAN ASSETS OR LIABILITIES     
    1411.       Mergers and transfers between multiemployer plans.    
    1412.       Transfers between a multiemployer plan and a
                 single-employer plan.                                
    1413.       Partition.                                            
    1414.       Asset transfer rules.                                 
    1415.       Transfers pursuant to change in bargaining
                 representative.                                      

       PART 3 - REORGANIZATION; MINIMUM CONTRIBUTION REQUIREMENT FOR
                            MULTIEMPLOYER PLANS
    1421.       Reorganization status.                                
    1422.       Notice of reorganization and funding requirements.    
    1423.       Minimum contribution requirement.                     
    1424.       Overburden credit against minimum contribution
                 requirement.                                         
    1425.       Adjustments in accrued benefits.                      
    1426.       Insolvent plans.                                      

                       PART 4 - FINANCIAL ASSISTANCE                   
    1431.       Assistance by corporation.                            

                    PART 5 - BENEFITS AFTER TERMINATION                
    1441.       Benefits under certain terminated plans.              

                           PART 6 - ENFORCEMENT                       
    1451.       Civil actions.                                        
    1452.       Penalty for failure to provide notice.                
    1453.       Election of plan status.                              

             SUBTITLE F - TRANSITION RULES AND EFFECTIVE DATES         
    1461.       Effective date; special rules.                        

-End-


-CITE-
    29 USC SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT
           RIGHTS                                          01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS

-HEAD-
           SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS       

-End-


-CITE-
    29 USC Subtitle A - General Provisions                      01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle A - General Provisions

-HEAD-
                      SUBTITLE A - GENERAL PROVISIONS                  

-End-



-CITE-
    29 USC Sec. 1001                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle A - General Provisions

-HEAD-
    Sec. 1001. Congressional findings and declaration of policy

-STATUTE-
    (a) Benefit plans as affecting interstate commerce and the Federal
      taxing power
      The Congress finds that the growth in size, scope, and numbers of
    employee benefit plans in recent years has been rapid and
    substantial; that the operational scope and economic impact of such
    plans is increasingly interstate; that the continued well-being and
    security of millions of employees and their dependents are directly
    affected by these plans; that they are affected with a national
    public interest; that they have become an important factor
    affecting the stability of employment and the successful
    development of industrial relations; that they have become an
    important factor in commerce because of the interstate character of
    their activities, and of the activities of their participants, and
    the employers, employee organizations, and other entities by which
    they are established or maintained; that a large volume of the
    activities of such plans are carried on by means of the mails and
    instrumentalities of interstate commerce; that owing to the lack of
    employee information and adequate safeguards concerning their
    operation, it is desirable in the interests of employees and their
    beneficiaries, and to provide for the general welfare and the free
    flow of commerce, that disclosure be made and safeguards be
    provided with respect to the establishment, operation, and
    administration of such plans; that they substantially affect the
    revenues of the United States because they are afforded
    preferential Federal tax treatment; that despite the enormous
    growth in such plans many employees with long years of employment
    are losing anticipated retirement benefits owing to the lack of
    vesting provisions in such plans; that owing to the inadequacy of
    current minimum standards, the soundness and stability of plans
    with respect to adequate funds to pay promised benefits may be
    endangered; that owing to the termination of plans before requisite
    funds have been accumulated, employees and their beneficiaries have
    been deprived of anticipated benefits; and that it is therefore
    desirable in the interests of employees and their beneficiaries,
    for the protection of the revenue of the United States, and to
    provide for the free flow of commerce, that minimum standards be
    provided assuring the equitable character of such plans and their
    financial soundness.
    (b) Protection of interstate commerce and beneficiaries by
      requiring disclosure and reporting, setting standards of conduct,
      etc., for fiduciaries
      It is hereby declared to be the policy of this chapter to protect
    interstate commerce and the interests of participants in employee
    benefit plans and their beneficiaries, by requiring the disclosure
    and reporting to participants and beneficiaries of financial and
    other information with respect thereto, by establishing standards
    of conduct, responsibility, and obligation for fiduciaries of
    employee benefit plans, and by providing for appropriate remedies,
    sanctions, and ready access to the Federal courts.
    (c) Protection of interstate commerce, the Federal taxing power,
      and beneficiaries by vesting of accrued benefits, setting minimum
      standards of funding, requiring termination insurance
      It is hereby further declared to be the policy of this chapter to
    protect interstate commerce, the Federal taxing power, and the
    interests of participants in private pension plans and their
    beneficiaries by improving the equitable character and the
    soundness of such plans by requiring them to vest the accrued
    benefits of employees with significant periods of service, to meet
    minimum standards of funding, and by requiring plan termination
    insurance.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 2, Sept. 2, 1974, 88 Stat. 832.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This chapter, referred to in subsecs. (b) and (c), was in the
    original "this Act", meaning Pub. L. 93-406, known as the Employee
    Retirement Income Security Act of 1974. Titles I, III, and IV of
    such Act are classified principally to this chapter. For complete
    classification of this Act to the Code, see Short Title note set
    out below and Tables.


-MISC1-
           EFFECTIVE DATE OF 1984 AMENDMENTS; TRANSITIONAL RULES       
      Pub. L. 98-397, title III, Secs. 302, 303, Aug. 23, 1984, 98
    Stat. 1451, 1452, as amended by Pub. L. 99-514, Sec. 2, title XI,
    Sec. 1145(c), title XVIII, Sec. 1898(g), (h)(1)(A), (2), (3), Oct.
    22, 1986, 100 Stat. 2095, 2491, 2956, 2957; Pub. L. 101-239, title
    VII, Sec. 7861(d)(1), Dec. 19, 1989, 103 Stat. 2431, provided that:

      "SEC. 302. GENERAL EFFECTIVE DATES.
      "(a) In General. - Except as otherwise provided in this section
    or section 303, the amendments made by this Act [see Short Title of
    1984 Amendments note below] shall apply to plan years beginning
    after December 31, 1984.
      "(b) Special Rule for Collective Bargaining Agreements. - In the
    case of a plan maintained pursuant to 1 or more collective
    bargaining agreements between employee representatives and 1 or
    more employers ratified before the date of the enactment of this
    Act [Aug. 23, 1984], except as provided in subsection (d) or
    section 303, the amendments made by this Act shall not apply to
    plan years beginning before the earlier of - 
        "(1) the date on which the last of the collective bargaining
      agreements relating to the plan terminates (determined without
      regard to any extension thereof agreed to after the date of the
      enactment of this Act [Aug. 23, 1984]), or
        "(2) July 1, 1988.
    For purposes of paragraph (1), any plan amendment made pursuant to
    a collective bargaining agreement relating to the plan which amends
    the plan solely to conform to any requirement added by title I or
    II [of Pub. L. 98-397] shall not be treated as a termination of
    such collective bargaining agreement.
      "(c) Notice Requirement. - The amendments made by section 207
    [amending sections 402 and 6652 of Title 26, Internal Revenue Code]
    shall apply to distributions after December 31, 1984.
      "(d) Special Rules for Treatment of Plan Amendments. - 
        "(1) In general. - Except as provided in paragraph (2), the
      amendments made by section 301 [amending section 1054 of this
      title and sections 401 and 411 of Title 26] shall apply to plan
      amendments made after July 30, 1984.
        "(2) Special rule for collective bargaining agreements. - In
      the case of a plan maintained pursuant to 1 or more collective
      bargaining agreements entered into before January 1, 1985, which
      are - 
          "(A) between employee representatives and 1 or more
        employers, and
          "(B) successor agreements to 1 or more collective bargaining
        agreements which terminate after July 30, 1984, and before
        January 1, 1985,
      the amendments made by section 301 shall not apply to plan
      amendments adopted before April 1, 1985, pursuant to such
      successor agreements (without regard to any modification or
      reopening after December 31, 1984).

      "SEC. 303. TRANSITIONAL RULES.
      "(a) Amendments Relating to Vesting Rules; Breaks in Service;
    Maternity or Paternity Leave. - 
        "(1) Minimum age for vesting. - The amendments made by sections
      102(b) and 202(b) [amending section 1053 of this title and
      section 411 of Title 26, Internal Revenue Code] shall apply in
      the case of participants who have at least 1 hour of service
      under the plan on or after the first day of the first plan year
      to which the amendments made by this Act [see Short Title of 1984
      Amendments note below] apply.
        "(2) Break in service rules. - If, as of the day before the
      first day of the first plan year to which the amendments made by
      this Act apply, section 202(a) or (b) or 203(b) of the Employee
      Retirement Income Security Act of 1974 [section 1052(a) or (b) or
      section 1053(b) of this title] or section 410(a) or 411(a) of the
      Internal Revenue Code of 1986 [section 410(a) or section 411(a)
      of Title 26] (as in effect on the day before the date of the
      enactment of this Act [Aug. 23, 1984]) would not require any
      service to be taken into account, nothing in the amendments made
      by subsections (c) and (d) of section 102 of this Act [amending
      sections 1052 and 1053 of this title] and subsections (c) and (d)
      of section 202 of this Act [amending sections 410 and 411 of
      Title 26] shall be construed as requiring such service to be
      taken into account under such section 202(a) or (b), 203(b),
      410(a), or 411(a); as the case may be.
        "(3) Maternity or paternity leave. - The amendments made by
      sections 102(e) and 202(e) [amending sections 1052 to 1054 of
      this title and sections 410 and 411 of Title 26] shall apply in
      the case of absences from work which begin on or after the first
      day of the first plan year to which the amendments made by this
      Act apply.
      "(b) Special Rule for Amendments Relating to Maternity or
    Paternity Absences. - If a plan is administered in a manner which
    would meet the amendments made by sections 102(e) and 202(e)
    [amending sections 1052 to 1054 of this title and sections 410 and
    411 of Title 26] (relating to certain maternity or paternity
    absences not treated as breaks in service), such plan need not be
    amended to meet such requirements until the earlier of - 
        "(1) the date on which such plan is first otherwise amended
      after the date of the enactment of this Act [Aug. 23, 1984], or
        "(2) the beginning of the first plan year beginning after
      December 31, 1986.
      "(c) Requirement of Joint and Survivor Annuity and Preretirement
    Survivor Annuity. - 
        "(1) Requirement that participant have at least 1 hour of
      service or paid leave on or after date of enactment. - The
      amendments made by sections 103 and 203 [amending section 1055 of
      this title and section 401 of Title 26 and enacting section 417
      of Title 26] shall apply only in the case of participants who
      have at least 1 hour of service under the plan on or after the
      date of the enactment of this Act [Aug. 23, 1984] or have at
      least 1 hour of paid leave on or after such date of enactment.
        "(2) Requirement that preretirement survivor annuity be
      provided in case of certain participants dying on or after date
      of enactment. - In the case of any participant - 
          "(A) who has at least 1 hour of service under the plan on or
        after the date of the enactment of this Act [Aug. 23, 1984] or
        has at least 1 hour of paid leave on or after such date of
        enactment,
          "(B) who dies before the annuity starting date, and
          "(C) who dies on or after the date of the enactment of this
        Act [Aug. 23, 1984] and before the first day of the first plan
        year to which the amendments made by this Act apply,
      the amendments made by sections 103 and 203 shall be treated as
      in effect as of the time of such participant's death. In the case
      of a profit-sharing or stock bonus plan to which this paragraph
      applies, the plan shall be treated as meeting the requirements of
      the amendments made by sections 103 and 203 with respect to any
      participant if the plan made a distribution in a form other than
      a life annuity to the surviving spouse of the participant of such
      participant's nonforfeitable benefit.
        "(3) Spousal consent required for certain elections after
      december 31, 1984. - Any election after December 31, 1984, and
      before the first day of the first plan year to which the
      amendments made by this Act apply not to take a joint and
      survivor annuity shall not be effective unless the requirements
      of section 205(c)(2) of the Employee Retirement Income Security
      Act of 1974 [section 1055(c)(2) of this title] (as amended by
      section 103 of this Act) and section 417(a)(2) of the Internal
      Revenue Code of 1986 [section 417(a)(2) of Title 26] (as added by
      section 203 of this Act) are met with respect to such election.
        "(4) Elimination of double death benefits. - 
          "(A) In general. - In the case of a participant described in
        paragraph (2), death benefits (other than a qualified joint and
        survivor annuity or a qualified preretirement survivor annuity)
        payable to any beneficiary shall be reduced by the amount
        payable to the surviving spouse of such participant by reason
        of paragraph (2). The reduction under the preceding sentence
        shall be made on the basis of the respective present values (as
        of the date of the participant's death) of such death benefits
        and the amount so payable to the surviving spouse.
          "(B) Spouse may waive provisions of paragraph (2). - In the
        case of any participant described in paragraph (2), the
        surviving spouse of such participant may waive the provisions
        of paragraph (2). Such waiver shall be made on or before the
        close of the second plan year to which the amendments made by
        section 103 of this Act [amending section 1055 of this title]
        apply. Such a waiver shall not be treated as a transfer of
        property for purposes of chapter 12 of the Internal Revenue
        Code of 1986 and shall not be treated as an assignment or
        alienation for purposes of section 401(a)(13) of the Internal
        Revenue Code of 1986 [section 401(a)(13) of Title 26] or
        section 206(d) of the Employee Retirement Income Security Act
        of 1974 [section 1056 of this title].
      "(d) Amendments Relating to Assignments in Divorce, Etc.,
    Proceedings. - The amendments made by sections 104 and 204
    [amending sections 1056 and 1144 of this title and sections 72,
    401, 402 and 414 of Title 26] shall take effect on January 1, 1985,
    except that in the case of a domestic relations order entered
    before such date, the plan administrator - 
        "(1) shall treat such order as a qualified domestic relations
      order if such administrator is paying benefits pursuant to such
      order on such date, and
        "(2) may treat any other such order entered before such date as
      a qualified domestic relations order even if such order does not
      meet the requirements of such amendments.
      "(e) Treatment of Certain Participants Who Separate From Service
    Before Date of Enactment. - 
        "(1) Joint and survivor annuity provisions of employee
      retirement income security act of 1974 apply to certain
      participants. - If - 
          "(A) a participant had at least 1 hour of service under the
        plan on or after September 2, 1974,
          "(B) section 205 of the Employee Retirement Income Security
        Act of 1974 [section 1055 of this title] and section 401(a)(11)
        of the Internal Revenue Code of 1986 [section 401(a)(11) of
        Title 26] (as in effect on the day before the date of the
        enactment of this Act [Aug. 23, 1984]) would not (but for this
        paragraph) apply to such participant,
          "(C) the amendments made by sections 103 and 203 [amending
        section 1055 of this title and section 401 of Title 26 and
        enacting section 417 of Title 26] of this Act do not apply to
        such participant, and
          "(D) as of the date of the enactment of this Act [Aug. 23,
        1984], the participant's annuity starting date has not occurred
        and the participant is alive,
      then such participant may elect to have section 205 of the
      Employee Retirement Income Security Act of 1974 [section 1055 of
      this title] and section 401(a)(11) of the Internal Revenue Code
      of 1986 [section 401(a)(11) of Title 26] (as in effect on the day
      before the date of the enactment of this Act) apply.
        "(2) Treatment of certain participants who perform service on
      or after january 1, 1976. - If - 
          "(A) a participant had at least 1 hour of service in any plan
        year beginning on or after January 1, 1976,
          "(B) the amendments made by sections 103 and 203 [amending
        section 1055 of this title and section 401 of Title 26 and
        enacting section 417 of Title 26] would not (but for this
        paragraph) apply to such participant,
          "(C) when such participant separated from service, such
        participant had at least 10 years of service under the plan and
        had a nonforfeitable right to all (or any portion) of such
        participant's accrued benefit derived from employer
        contributions, and
          "(D) as of the date of the enactment of this Act [Aug. 23,
        1984], such participant's annuity starting date has not
        occurred and such participant is alive,
      then such participant may elect to have the qualified
      preretirement survivor annuity requirements of the amendments
      made by sections 103 and 203 apply.
        "(3) Period during which election may be made. - An election
      under paragraph (1) or (2) may be made by any participant during
      the period - 
          "(A) beginning on the date of the enactment of this Act [Aug.
        23, 1984], and
          "(B) ending on the earlier of the participant's annuity
        starting date or the date of the participant's death.
        "(4) Requirement of notice. - 
          "(A) In general. - 
            "(i) Time and manner. - Every plan shall give notice of the
          provisions of this subsection at such time or times and in
          such manner or manners as the Secretary of the Treasury may
          prescribe.
            "(ii) Penalty. - If any plan fails to meet the requirements
          of clause (i), such plan shall pay a civil penalty to the
          Secretary of the Treasury equal to $1 per participant for
          each day during the period beginning with the first day on
          which such failure occurs and ending on the day before notice
          is given by the plan; except that the amount of such penalty
          imposed on any plan shall not exceed $2,500.
          "(B) Responsibilities of secretary of labor. - The Secretary
        of Labor shall take such steps (by public announcements and
        otherwise) as may be necessary or appropriate to bring to
        public attention the provisions of this subsection.
      "(f) The amendments made by section 301 of this Act [amending
    section 1054 of this title and sections 401 and 411 of Title 26]
    shall not apply to the termination of a defined benefit plan if
    such termination - 
        "(1) is pursuant to a resolution directing the termination of
      such plan which was adopted by the Board of Directors of a
      corporation on July 17, 1984, and
        "(2) occurred on November 30, 1984."
      [Amendment by section 1145(c) of Pub. L. 99-514 applicable as if
    included in the amendments made by the Retirement Equity Act of
    1984, Pub. L. 98-397, see section 1145(d) of Pub. L. 99-514, set
    out as a note under section 401 of Title 26.]
      [Amendment by section 1898(g), (h)(1)(A), (2), (3) of Pub. L. 99-
    514 effective as if included in the provision of the Retirement
    Equity Act of 1984, Pub. L. 98-397, to which such amendment
    relates, except as otherwise provided, see section 1898(j) of Pub.
    L. 99-514, set out as a note under section 401 of Title 26.]

                       SHORT TITLE OF 2006 AMENDMENT                   
      Pub. L. 109-280, Sec. 1(a), Aug. 17, 2006, 120 Stat. 780,
    provided that: "This Act [see Tables for classification] may be
    cited as the 'Pension Protection Act of 2006'."

                       SHORT TITLE OF 2004 AMENDMENT                   
      Pub. L. 108-218, Sec. 1, Apr. 10, 2004, 118 Stat. 596, provided
    that: "This Act [see Tables for classification] may be cited as the
    'Pension Funding Equity Act of 2004'."

                       SHORT TITLE OF 1997 AMENDMENT                   
      Pub. L. 105-92, Sec. 1, Nov. 19, 1997, 111 Stat. 2139, provided
    that: "This Act [enacting sections 1146 and 1147 of this title and
    provisions set out as a note under section 1146 of this title] may
    be cited as the 'Savings Are Vital to Everyone's Retirement Act of
    1997'."

                       SHORT TITLE OF 1994 AMENDMENT                   
      Pub. L. 103-401, Sec. 1, Oct. 22, 1994, 108 Stat. 4172, provided
    that: "This Act [amending section 1132 of this title and enacting
    provisions set out as notes under section 1132 of this title] may
    be cited as the 'Pension Annuitants Protection Act of 1994'."

                       SHORT TITLE OF 1991 AMENDMENT                   
      Pub. L. 102-89, Sec. 1, Aug. 14, 1991, 105 Stat. 446, provided
    that: "This Act [amending section 1002 of this title and enacting
    provisions set out as a note under section 1002 of this title] may
    be cited as the 'Rural Telephone Cooperative Associations ERISA
    Amendments Act of 1991'."

                       SHORT TITLE OF 1986 AMENDMENT                   
      Pub. L. 99-272, title XI, Sec. 11001, Apr. 7, 1986, 100 Stat.
    237, provided that: "This title [enacting sections 1001b, 1085a,
    1143a, 1349, 1369, and 1370 of this title, amending sections 1002,
    1023, 1024, 1054, 1061, 1083, 1084, 1086, 1301, 1303, 1305, 1306,
    1322, 1322a, 1341, 1342, 1344, 1347, 1348, 1362 to 1364, and 1366
    to 1368 of this title, and sections 402, 404, 412, and 501 of Title
    26, Internal Revenue Code, repealing section 1304 of this title,
    and enacting provisions set out as notes under sections 1023, 1054,
    1085a, 1135, 1143a, 1303, 1306, 1341, 1362, and 1369 of this title
    and section 404 of Title 26] may be cited as 'Single-Employer
    Pension Plan Amendments Act of 1986'."

                       SHORT TITLE OF 1984 AMENDMENT                   
      Pub. L. 98-397, Sec. 1, Aug. 23, 1984, 98 Stat. 1426, provided
    that: "This Act [enacting section 417 of Title 26, Internal Revenue
    Code, amending sections 1025, 1052 to 1056, and 1144 of this title
    and sections 72, 401, 402, 410, 411, 414, 6057, and 6652 of Title
    26, and enacting provisions set out as notes under this section]
    may be cited as the 'Retirement Equity Act of 1984'."

                       SHORT TITLE OF 1980 AMENDMENT                   
      Pub. L. 96-364, Sec. 1, Sept. 26, 1980, 94 Stat. 1208, provided
    that: "This Act [enacting sections 1001a, 1145, 1322a, 1322b, 1323,
    1341a, 1381 to 1405, 1411 to 1415, 1421 to 1426, 1431, 1441, and
    1451 to 1453 of this title and sections 418 to 418E of Title 26,
    Internal Revenue Code, amending sections 1002, 1023, 1051, 1053,
    1058, 1081, 1082, 1103, 1104, 1108, 1132, 1202, 1301 to 1303, 1305
    to 1307, 1321, 1322, 1341, 1342, 1344, 1346, 1348, 1361 to 1366,
    and 1461 of this title, section 8521 of Title 5, Government
    Organization and Employees, and sections 194, 401, 404, 411 to 414,
    501, 3304, 4971 and 4975 of Title 26, repealing former section 1323
    of this title, and enacting provisions set out as notes under this
    section, sections 1001a, 1302, 1306, 1381, 1385, 1426 and 1461 of
    this title, section 8521 of Title 5, and sections 401, 404, 414,
    418, and 3304 of Title 26] may be cited as the 'Multiemployer
    Pension Plan Amendments Act of 1980'."

                                SHORT TITLE                            
      Section 1 of Pub. L. 93-406 provided that: "This Act [enacting
    this chapter, sections 408 to 415, 4971 to 4975, 6057 to 6059,
    6692, and 6693 of Title 26, Internal Revenue Code, section 1037 of
    former Title 31, Money and Finance, and section 1320b-1 of Title
    42, The Public Health and Welfare, amending section 441 of this
    title, sections 5108 and 5109 of Title 5, Government Organization
    and Employees, sections 664, 1027, and 1954 of Title 18, Crimes and
    Criminal Procedure, sections 37, 46, 56, 62, 72, 101, 122, 219,
    220, 275, 401, 402, 403, 404, 405, 406, 407, 503, 801, 805, 871,
    901, 1304, 1348, 1379, 2039, 3401, 6033, 6047, 6051, 6103, 6104,
    6161, 6201, 6204, 6211, 6212, 6213, 6214, 6344, 6501, 6503, 6511,
    6512, 6601, 6652, 6653, 6659, 6676, 6677, 6679, 6682, 6688, 6690,
    6861, 6862, 7422, 7451, 7459, 7482, 7701, and 7802, of Title 26,
    and section 846 of former Title 31, repealing sections 301 to 309
    of this title, and enacting provisions set out as notes under
    sections 72, 122, 219, 401, 402, 403, 404, 410, 411, 412, 415, 501,
    4973, 4975, 6057, 6059, 6103, 6104, 7476, and 7802 of Title 26] may
    be cited as the 'Employee Retirement Income Security Act of 1974'."

        COORDINATION OF INTERNAL REVENUE CODE OF 1986 WITH EMPLOYEE
                  RETIREMENT INCOME SECURITY ACT OF 1974
      This subchapter and subchapter III of this chapter not applicable
    in interpreting Internal Revenue Code of 1986, except to the extent
    specifically provided in such Code, or as determined by the
    Secretary of the Treasury, see section 9343(a) of Pub. L. 100-203,
    set out as a note under section 401 of Title 26, Internal Revenue
    Code.

      STUDY BY COMPTROLLER GENERAL OF THE UNITED STATES OF EFFECT OF
                          PENSION RULES ON WOMEN
      Pub. L. 98-397, title III, Sec. 304, Aug. 23, 1984, 98 Stat.
    1454, directed Comptroller General to conduct detailed study of
    effect on women of participation, vesting, funding, integration,
    survivorship features, and other relevant plan and Federal pension
    rules and, not later than Jan. 1, 1990, submit a report on the
    study to Congress.

          STUDY BY GENERAL ACCOUNTING OFFICE REGARDING RESULTS OF
       MULTIEMPLOYER PENSION PLAN AMENDMENTS ACT OF 1980; PROCEDURES
                                APPLICABLE
      Pub. L. 96-364, title IV, Sec. 413, Sept. 26, 1980, 94 Stat.
    1309, directed Comptroller General to conduct a study of effects of
    amendments made by Pub. L. 99-364 on: participants, beneficiaries,
    employers, employee organizations, and other parties, and the self-
    sufficiency of the fund established under section 1305 of this
    title with respect to benefits guaranteed under section 1322a of
    this title, taking into account financial conditions of
    multiemployer plans and employers and to report to Congress no
    later than June 30, 1985, results of study including his
    recommendations with respect thereto.

       PRESIDENT'S COMMISSION ON PENSION POLICY; EXTENSION OF TERM;
                          CONTINUATION OF EFFORT
      Pub. L. 96-14, May 24, 1979, 93 Stat. 29, known as the Pension
    Policy Commission Act, authorized the President's Commission on
    Pension Policy established by Ex. Ord. No. 12071 to continue in
    operation for two years following May 24, 1979, and set forth
    membership, compensation, implementation, and reporting
    requirements, with the Commission to cease to exist ninety days
    after submission of the final report.

                     REORGANIZATION PLAN NO. 4 OF 1978                 

     43 F.R. 47713, 92 STAT. 3790, AS AMENDED PUB. L. 99-514, SEC. 2,
       OCT. 22, 1986, 100 STAT. 2095; PUB. L. 109-280, TITLE I, SEC.
                   107(C), AUG. 17, 2006, 120 STAT. 820
    Prepared by the President and transmitted to the Senate and the
      House of Representatives in Congress assembled, August 10, 1978,
      pursuant to the provisions of Chapter 9 of Title 5 of the United
      States Code.(!1)


             EMPLOYEE RETIREMENT INCOME SECURITY ACT TRANSFERS         

          SECTION 101. TRANSFER TO THE SECRETARY OF THE TREASURY      
      Except as otherwise provided in Sections 104 and 106 of this
    Plan, all authority of the Secretary of Labor to issue the
    following described documents pursuant to the statutes hereinafter
    specified is hereby transferred to the Secretary of the Treasury:
      (a) regulations, rulings, opinions, variances and waivers under
    Parts 2 [29 U.S.C. 1051 et seq.] and 3 [29 U.S.C. 1081 et seq.] of
    Subtitle B of Title I and subsection 1012(c) [set out as a note
    under 26 U.S.C. 411] of Title II of the Employee Retirement Income
    Security Act of 1974 (29 U.S.C. 1001 note) (hereinafter referred to
    as "ERISA"),
        EXCEPT for sections and subsections 201, 203(a)(3)(B), 209, and
      301(a) of ERISA; [29 U.S.C. 1051, 1053(a)(3)(B), 1059, and
      1081(a)];

      (b) such regulations, rulings, and opinions which are granted to
    the Secretary of Labor under Sections 404, 410, 411, 412, and 413
    of the Internal Revenue Code of 1986, as amended [26 U.S.C. 404,
    410, 411, 412, and 413], (hereinafter referred to as the "Code").
        EXCEPT for subsection 411(a)(3)(B) of the Code [26 U.S.C.
      411(a)(3)(B)] and the definitions of "collectively bargained
      plan" and "collective bargaining agreement" contained in
      subsections 404 (a)(1)(B) and (a)(1)(C), 410 (b)(2)(A) and
      (b)(2)(B), and 413(a)(1) of the Code [26 U.S.C. 404(a)(1)(B) and
      (a)(1)(C), 410 (b)(2)(A) and (b)(2)(B), and 413(a)(1)]; and

      (c) regulations, rulings, and opinions under subsections 3(19),
    3(22), 3(23), 3(24), 3(25), 3(27), 3(28), 3(29), 3(30), and 3(31)
    of Subtitle A of Title I of ERISA [29 U.S.C. 1002(19), (22), (23),
    (24), (25), (27), (28), (29), (30), and (31)]. [As amended Pub. L.
    99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095.]

               SEC. 102. TRANSFER TO THE SECRETARY OF LABOR           
      Except as otherwise provided in Section 105 of this Plan, all
    authority of the Secretary of the Treasury to issue the following
    described documents pursuant to the statutes hereinafter specified
    is hereby transferred to the Secretary of Labor;
      (a) regulations, rulings, opinions, and exemptions under section
    4975 of the Code [26 U.S.C. 4975],
        EXCEPT for (i) subsections 4975(a), (b), (c)(3), (d)(3),
      (c)(1), and (e)(7) of the Code [26 U.S.C. 4975(a), (b), (c)(3),
      (d)(3), (e)(1), and (e)(7)]; (ii) to the extent necessary for the
      continued enforcement of subsections 4975(a) and (b) [26 U.S.C.
      4975(a) and (b)] by the Secretary of the Treasury, subsections
      4975(f)(1), (f)(2), (f)(4), (f)(5) and (f)(6) of the Code [26
      U.S.C. 4975(f)(1), (f)(2), (f)(4), (f)(5) and (f)(6)]; and (iii)
      exemptions with respect to transactions that are exempted by
      subsection 404(c) of ERISA [29 U.S.C. 1104(c)] from the
      provisions of Part 4 of Subtitle B of Title I of ERISA [29 U.S.C.
      1101 et seq.]; and

      (b) regulations, rulings, and opinions under subsection 2003(c)
    of ERISA [set out as a note under 29 U.S.C. 4975].
        EXCEPT for subsection 2003(c)(1)(B) [set out in the note under
      26 U.S.C. 4975].

        SEC. 103. COORDINATION CONCERNING CERTAIN FIDUCIARY ACTIONS    
      In the case of fiduciary actions which are subject to Part 4 of
    Subtitle B of Title I of ERISA [29 U.S.C. 1101 et seq.], the
    Secretary of the Treasury shall notify the Secretary of Labor prior
    to the time of commencing any proceeding to determine whether the
    action violates the exclusive benefit rule of subsection 401(a) of
    the Code [26 U.S.C. 401(a)], but not later than prior to issuing a
    preliminary notice of intent to disqualify under that rule, and the
    Secretary of the Treasury shall not issue a determination that a
    plan or trust does not satisfy the requirements of subsection
    401(a) by reason of the exclusive benefit rule of subsection
    401(a), unless within 90 days after the date on which the Secretary
    of the Treasury notifies the Secretary of Labor of pending action,
    the Secretary of Labor certifies that he has no objection to the
    disqualification or the Secretary of Labor fails to respond to the
    Secretary of the Treasury. The requirements of this paragraph do
    not apply in the case of any termination or jeopardy assessment
    under sections 6851 or 6861 of the Code [26 U.S.C. 6851 or 6861]
    that has been approved in advance by the Commissioner of Internal
    Revenue, or, as delegated, the Assistant Commissioner for Employee
    Plans and Exempt Organizations.

              SEC. 104. ENFORCEMENT BY THE SECRETARY OF LABOR          
      The transfers provided for in Section 101 of this Plan shall not
    affect the ability of the Secretary of Labor, subject to the
    provisions of Title III of ERISA [29 U.S.C. 1201 et seq.] relating
    to jurisdiction, administration, and enforcement, to engage in
    enforcement under Section 502 of ERISA [29 U.S.C. 1132] or to
    exercise the authority set forth under Title III of ERISA,
    including the ability to make interpretations necessary to engage
    in such enforcement or to exercise such authority. However, in
    bringing such actions and in exercising such authority with respect
    to Parts 2 [29 U.S.C. 1051 et seq.] and 3 [29 U.S.C. 1081 et seq.]
    of Subtitle B of Title I of ERISA and any definitions for which the
    authority of the Secretary of Labor is transferred to the Secretary
    of the Treasury as provided in Section 101 of this Plan, the
    Secretary of Labor shall be bound by the regulations, rulings,
    opinions, variances, and waivers issued by the Secretary of the
    Treasury.

          SEC. 105. ENFORCEMENT BY THE SECRETARY OF THE TREASURY      
      The transfers provided for in Section 102 of this Plan shall not
    affect the ability of the Secretary of the Treasury, subject to the
    provisions of Title III of ERISA [29 U.S.C. 1201 et seq.] relating
    to jurisdiction, administration, and enforcement, (a) to audit
    plans and employers and to enforce the excise tax provisions of
    subsections 4975(a) and 4975(b) of the Code [26 U.S.C. 4975(a) and
    (b)], to exercise the authority set forth in subsections 502(b)(1)
    and 502(h) of ERISA [29 U.S.C. 1132(b)(1) and (h)], or to exercise
    the authority set forth in Title III of ERISA, including the
    ability to make interpretations necessary to audit, to enforce such
    taxes, and to exercise such authority; and (b) consistent with the
    coordination requirements under Section 103 of this Plan, to
    disqualify, under section 401 of the Code [26 U.S.C. 401], a plan
    subject to Part 4 of Subtitle B of Title I of ERISA [29 U.S.C. 1101
    et seq.], including the ability to make the interpretations
    necessary to make such disqualification. However, in enforcing such
    excise taxes and, to the extent applicable, in disqualifying such
    plans the Secretary of the Treasury shall be bound by the
    regulations, rulings, opinions, and exemptions issued by the
    Secretary of Labor pursuant to the authority transferred to the
    Secretary of Labor as provided in Section 102 of this Plan.

              SEC. 106. COORDINATION FOR SECTION 101 TRANSFER          
      (a) The Secretary of the Treasury shall not exercise the
    functions transferred pursuant to Section 101 of this Plan to issue
    in proposed or final form any of the documents described in
    subsection (b) of this Section in any case in which such documents
    would significantly impact on or substantially affect collectively
    bargained plans unless, within 100 calendar days after the
    Secretary of the Treasury notifies the Secretary of Labor of such
    proposed action, the Secretary of Labor certifies that he has no
    objection or he fails to respond to the Secretary of the Treasury.
    The fact of such a notification, except for such notification for
    documents described in subsection (b)(iv) of this Section, from the
    Secretary of the Treasury to the Secretary of Labor shall be
    announced by the Secretary of Labor to the public within ten days
    following the date of receipt of the notification by the Secretary
    of Labor.
      (b) The documents to which this Section applies are:
      (i) amendments to regulations issued pursuant to subsections
    202(a)(3), 203(b)(2) and (3)(A), 204(b)(3)(A), (C), and (E), and
    210(a)(2) of ERISA [29 U.S.C. 1052(a)(3), 1053(b)(2) and (3)(A),
    1054(b)(3)(A), (C), and (E), and 1060(a)(2)], and subsections
    410(a)(3) and 411(a)(5), (6)(A), and (b)(3)(A), (C), and (E),
    413(b)(4) and (c)(3) and 414(f) of the Code [26 U.S.C. 410(a)(3)
    and 411(a)(5), (6)(A), and (b)(3)(A), (C), and (E), 413 (b)(4) and
    (c)(3) and 414(f)];
      (ii) regulations issued pursuant to subsections 204(b)(3)(D),
    302(d)(2), and 304(d)(1), (d)(2), and (e)(2)(A) of ERISA [29 U.S.C.
    1054(b)(3)(D), 1082(d)(2), and 1084(d)(1), (d)(2), and (e)(2)(A)],
    and subsections 411(b)(3)(D), 412(c)(2) and 431(d)(1), (d)(2), and
    (e)(2)(A) of the Code [26 U.S.C. 411(b)(3)(D), 412(c)(2) and
    431(d)(1), (d)(2), and (e)(2)(A)]; and [As amended Pub. L. 109-280,
    title I, Sec. 107(c), Aug. 17, 2006, 120 Stat. 820.]
      (iii) revenue rulings (within the meaning of 26 CFR Section
    601.201(a)(6)), revenue procedures, and similar publications, if
    the rulings, procedures and publications are issued under one of
    the statutory provisions listed in (i) and (ii) of this subsection;
    and
      (iv) rulings (within the meaning of 26 CFR Section 601.201(a)(2))
    issued prior to the issuance of a published regulation under one of
    the statutory provisions listed in (i) and (ii) of this subsection
    and not issued under a published Revenue Ruling.
      (c) For those documents described in subsections (b)(i), (b)(ii)
    and (b)(iii) of this Section, the Secretary of Labor may request
    the Secretary of the Treasury to initiate the actions described in
    this Section 106 of this Plan.

                           SEC. 107. EVALUATION                       
      On or before January 31, 1980, the President will submit to both
    Houses of the Congress an evaluation of the extent to which this
    Reorganization Plan has alleviated the problems associated with the
    present administrative structure under ERISA, accompanied by
    specific legislative recommendations for a long-term administrative
    structure under ERISA.

                      SEC. 108. INCIDENTAL TRANSFERS                  
      So much of the personnel, property, records, and unexpended
    balances of appropriations, allocations and other funds employed,
    used, held, available, or to be made available in connection with
    the functions transferred under this Plan, as the Director of the
    Office of Management and Budget shall determine, shall be
    transferred to the appropriate agency, or component at such time or
    times as the Director of the Office of Management and Budget shall
    provide, except that no such unexpended balances transferred shall
    be used for purposes other than those for which the appropriation
    was originally made. The Director of the Office of Management and
    Budget shall provide for terminating the affairs of any agencies
    abolished herein and for such further measures and dispositions as
    such Director deems necessary to effectuate the purposes of this
    Reorganization Plan.

                         SEC. 109. EFFECTIVE DATE                     
      The provisions of this Reorganization Plan shall become effective
    at such time or times, on or before April 30, 1979, as the
    President shall specify, but not sooner than the earliest time
    allowable under Section 906 of Title 5, United States Code.
      [Amendment by section 107(c) of Pub. L. 109-280 applicable to
    plan years beginning after 2007, see section 107(e) of Pub. L. 109-
    280, set out as a note under section 1021 of this title.]
      [For special rules on applicability of amendments by subtitles A
    (Secs. 101-107) and B (Secs. 111-116) of title I of Pub. L. 109-280
    to certain eligible cooperative plans, PBGC settlement plans, and
    eligible government contractor plans, see sections 104, 105, and
    106 of Pub. L. 109-280, set out as notes under section 401 of Title
    26, Internal Revenue Code.]

                         MESSAGE OF THE PRESIDENT                     
    To the Congress of the United States:
      Today I am submitting to the Congress my fourth Reorganization
    Plan for 1978. This proposal is designed to simplify and improve
    the unnecessarily complex administrative requirements of the
    Employee Retirement Income Security Act of 1974 (ERISA) [see Short
    Title note set out under this section]. The new plan will eliminate
    overlap and duplication in the administration of ERISA and help us
    achieve our goal of well regulated private pension plans.
      ERISA was an essential step in the protection of worker pension
    rights. Its administrative provisions, however, have resulted in
    bureaucratic confusion and have been justifiably criticized by
    employers and unions alike. The biggest problem has been
    overlapping jurisdictional authority. Under current ERISA
    provisions, the Departments of Treasury and Labor both have
    authority to issue regulations and decisions.
      This dual jurisdiction has delayed a good many important rulings
    and, more importantly, produced bureaucratic runarounds and
    burdensome reporting requirements.
      The new plan will significantly reduce these problems. In
    addition, both Departments are trying to cut red tape and
    paperwork, to eliminate unnecessary reporting requirements, and to
    streamline forms wherever possible.
      Both Departments have already made considerable progress, and
    both will continue the effort to simplify their rules and their
    forms.
      The Reorganization Plan is the most significant result of their
    joint effort to modify and simplify ERISA. It will eliminate most
    of the jurisdictional overlap between Treasury and Labor by making
    the following changes:
      1) Treasury will have statutory authority for minimum standards.
    The new plan puts all responsibility for funding, participation,
    and vesting of benefit rights in the Department of Treasury. These
    standards are necessary to ensure that employee benefit plans are
    adequately funded and that all beneficiary rights are protected.
    Treasury is the most appropriate Department to administer these
    provisions; however, Labor will continue to have veto power over
    Treasury decisions that significantly affect collectively bargained
    plans.
      2) Labor will have statutory authority for fiduciary obligations.
    ERISA prohibits transactions in which self-interest or conflict of
    interest could occur, but allows certain exemptions from these
    prohibitions. Labor will be responsible for overseeing fiduciary
    conduct under these provisions.
      3) Both Departments will retain enforcement powers. The
    Reorganization Plan will continue Treasury's authority to audit
    plans and levy tax penalties for any deviation from standards. The
    plan will also continue Labor's authority to bring civil action
    against plans and fiduciaries. These provisions are retained in
    order to keep the special expertise of each Department available.
    New coordination between the Departments will eliminate duplicative
    investigations of alleged violations.
      This reorganization will make an immediate improvement in ERISA's
    administration. It will eliminate almost all of the dual and
    overlapping authority in the two departments and dramatically cut
    the time required to process applications for exemptions from
    prohibited transactions.
      This plan is an interim arrangement. After the Departments have
    had a chance to administer ERISA under this new plan, the Office of
    Management and Budget and the Departments will jointly evaluate
    that experience. Based on that evaluation, early in 1980, the
    Administration will make appropriate legislative proposals to
    establish a long-term administrative structure for ERISA.
      Each provision in this reorganization will accomplish one or more
    of the purposes in Title 5 of U.S.C. 901(a). There will be no
    change in expenditure or personnel levels, although a small number
    of people will be transferred from the Department of Treasury to
    the Department of Labor.
      We all recognize that the administration of ERISA has been unduly
    burdensome. I am confident that this reorganization will
    significantly relieve much of that burden.
      This plan is the culmination of our effort to streamline ERISA.
    It provides an administrative arrangement that will work.
      ERISA has been a symbol of unnecessarily complex government
    regulation. I hope this new step will become equally symbolic of my
    Administration's commitment to making government more effective and
    less intrusive in the lives of our people.
                                                           Jimmy Carter.
      The White House, August 10, 1978.


-EXEC-
                         EXECUTIVE ORDER NO. 12071                     
      Ex. Ord. No. 12071, July 12, 1978, 43 F.R. 30259, which
    established the President's Commission on Pension Policy and
    provided for its membership, functions, etc., was revoked by Ex.
    Ord. No. 12379, Sec. 1, Aug. 17, 1982, 47 F.R. 36099, set out as a
    note under section 14 of the Federal Advisory Committee Act in the
    Appendix to Title 5, Government Organization and Employees.

           EX. ORD. NO. 12108. EFFECTIVE DATE OF ERISA TRANSFERS       
      Ex. Ord. No. 12108, Dec. 28, 1978, 44 F.R. 1065, provided:
      By the authority vested in me as President of the United States
    of America by Section 109 of Reorganization Plan No. 4 of 1978 (43
    F.R. 47713) [set out above], it is hereby ordered that the
    provisions of Reorganization Plan No. 4 of 1978 shall be effective
    on Sunday, December 31, 1978.
                                                           Jimmy Carter.

                         EXECUTIVE ORDER NO. 12262                     
      Ex. Ord. No. 12262, Jan. 7, 1981, 46 F.R. 2313, which established
    the Interagency Employee Benefit Council and provided for its
    membership, functions, etc., was revoked by Ex. Ord. No. 12379,
    Sec. 9, Aug. 17, 1982, 47 F.R. 36099, set out as a note under
    section 14 of the Federal Advisory Committee Act in the Appendix to
    Title 5, Government Organization and Employees.

-FOOTNOTE-               

    (!1) As amended September 20, 1978.


-End-



-CITE-
    29 USC Sec. 1001a                                           01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle A - General Provisions

-HEAD-
    Sec. 1001a. Additional Congressional findings and declaration of
      policy

-STATUTE-
    (a) Effects of multiemployer pension plans
      The Congress finds that - 
        (1) multiemployer pension plans have a substantial impact on
      interstate commerce and are affected with a national public
      interest;
        (2) multiemployer pension plans have accounted for a
      substantial portion of the increase in private pension plan
      coverage over the past three decades;
        (3) the continued well-being and security of millions of
      employees, retirees, and their dependents are directly affected
      by multiemployer pension plans; and
        (4)(A) withdrawals of contributing employers from a
      multiemployer pension plan frequently result in substantially
      increased funding obligations for employers who continue to
      contribute to the plan, adversely affecting the plan, its
      participants and beneficiaries, and labor-management relations,
      and
        (B) in a declining industry, the incidence of employer
      withdrawals is higher and the adverse effects described in
      subparagraph (A) are exacerbated.
    (b) Modification of multiemployer plan termination insurance
      provisions and replacement of program
      The Congress further finds that - 
        (1) it is desirable to modify the current multiemployer plan
      termination insurance provisions in order to increase the
      likelihood of protecting plan participants against benefit
      losses; and
        (2) it is desirable to replace the termination insurance
      program for multiemployer pension plans with an insolvency-based
      benefit protection program that will enhance the financial
      soundness of such plans, place primary emphasis on plan
      continuation, and contain program costs within reasonable limits.
    (c) Policy
      It is hereby declared to be the policy of this Act - 
        (1) to foster and facilitate interstate commerce,
        (2) to alleviate certain problems which tend to discourage the
      maintenance and growth of multiemployer pension plans,
        (3) to provide reasonable protection for the interests of
      participants and beneficiaries of financially distressed
      multiemployer pension plans, and
        (4) to provide a financially self-sufficient program for the
      guarantee of employee benefits under multiemployer plans.

-SOURCE-
    (Pub. L. 96-364, Sec. 3, Sept. 26, 1980, 94 Stat. 1209.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This Act, referred to in subsec. (c), is Pub. L. 96-364, Sept.
    26, 1980, 94 Stat. 1208, known as the Multiemployer Pension Plan
    Amendments Act of 1980. For complete classification of this Act to
    the Code, see Short Title of 1980 Amendment note set out under
    section 1001 of this title and Tables.

-COD-
                               CODIFICATION                           
      Section was enacted as part of the Multiemployer Pension Plan
    Amendments Act of 1980, and not as part of the Employee Retirement
    Income Security Act of 1974 which comprises this chapter.


-MISC1-
                              EFFECTIVE DATE                          
      Section effective Sept. 26, 1980, see section 1461(e)(1) of this
    title.

    STUDY AND REPORT RESPECTING COLLECTIVE BARGAINING FOR CONTRIBUTIONS
                TO, AND BENEFITS FROM, MULTIEMPLOYER PLANS
      Section 412(b) of Pub. L. 96-364 directed Secretary of Labor to
    study feasibility of requiring collective bargaining on both issues
    of contributions to, and benefits from, multiemployer plans, and
    submit a report on the study to Congress within 3 years of Sept.
    26, 1980.

-End-



-CITE-
    29 USC Sec. 1001b                                           01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle A - General Provisions

-HEAD-
    Sec. 1001b. Findings and declaration of policy

-STATUTE-
    (a) Findings
      The Congress finds that - 
        (1) single-employer defined benefit pension plans have a
      substantial impact on interstate commerce and are affected with a
      national interest;
        (2) the continued well-being and retirement income security of
      millions of workers, retirees, and their dependents are directly
      affected by such plans;
        (3) the existence of a sound termination insurance system is
      fundamental to the retirement income security of participants and
      beneficiaries of such plans; and
        (4) the current termination insurance system in some instances
      encourages employers to terminate pension plans, evade their
      obligations to pay benefits, and shift unfunded pension
      liabilities onto the termination insurance system and the other
      premium-payers.
    (b) Additional findings
      The Congress further finds that modification of the current
    termination insurance system and an increase in the insurance
    premium for single-employer defined benefit pension plans - 
        (1) is desirable to increase the likelihood that full benefits
      will be paid to participants and beneficiaries of such plans;
        (2) is desirable to provide for the transfer of liabilities to
      the termination insurance system only in cases of severe
      hardship;
        (3) is necessary to maintain the premium costs of such system
      at a reasonable level; and
        (4) is necessary to finance properly current funding
      deficiencies and future obligations of the single-employer
      pension plan termination insurance system.
    (c) Declaration of policy
      It is hereby declared to be the policy of this title - 
        (1) to foster and facilitate interstate commerce;
        (2) to encourage the maintenance and growth of single-employer
      defined benefit pension plans;
        (3) to increase the likelihood that participants and
      beneficiaries under single-employer defined benefit pension plans
      will receive their full benefits;
        (4) to provide for the transfer of unfunded pension liabilities
      onto the single-employer pension plan termination insurance
      system only in cases of severe hardship;
        (5) to maintain the premium costs of such system at a
      reasonable level; and
        (6) to assure the prudent financing of current funding
      deficiencies and future obligations of the single-employer
      pension plan termination insurance system by increasing
      termination insurance premiums.

-SOURCE-
    (Pub. L. 99-272, title XI, Sec. 11002, Apr. 7, 1986, 100 Stat.
    237.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This title, referred to in subsec. (c), is title XI of Pub. L. 99-
    272, Apr. 7, 1986, 100 Stat. 237, known as the Single-Employer
    Pension Plan Amendments Act of 1986. For complete classification of
    this Act to the Code, see Short Title of 1986 Amendment note set
    out under section 1001 of this title and Tables.

-COD-
                               CODIFICATION                           
      Section was enacted as part of the Single-Employer Pension Plan
    Amendments Act of 1986, and not as part of the Employee Retirement
    Income Security Act of 1974 which comprises this chapter.


-MISC1-
                              EFFECTIVE DATE                          
      Section effective Jan. 1, 1986, with certain exceptions, see
    section 11019 of Pub. L. 99-272, set out as an Effective Date of
    1986 Amendment note under section 1341 of this title.

-End-



-CITE-
    29 USC Sec. 1002                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle A - General Provisions

-HEAD-
    Sec. 1002. Definitions

-STATUTE-
      For purposes of this subchapter:
      (1) The terms "employee welfare benefit plan" and "welfare plan"
    mean any plan, fund, or program which was heretofore or is
    hereafter established or maintained by an employer or by an
    employee organization, or by both, to the extent that such plan,
    fund, or program was established or is maintained for the purpose
    of providing for its participants or their beneficiaries, through
    the purchase of insurance or otherwise, (A) medical, surgical, or
    hospital care or benefits, or benefits in the event of sickness,
    accident, disability, death or unemployment, or vacation benefits,
    apprenticeship or other training programs, or day care centers,
    scholarship funds, or prepaid legal services, or (B) any benefit
    described in section 186(c) of this title (other than pensions on
    retirement or death, and insurance to provide such pensions).
      (2)(A) Except as provided in subparagraph (B), the terms
    "employee pension benefit plan" and "pension plan" mean any plan,
    fund, or program which was heretofore or is hereafter established
    or maintained by an employer or by an employee organization, or by
    both, to the extent that by its express terms or as a result of
    surrounding circumstances such plan, fund, or program - 
        (i) provides retirement income to employees, or
        (ii) results in a deferral of income by employees for periods
      extending to the termination of covered employment or beyond,

    regardless of the method of calculating the contributions made to
    the plan, the method of calculating the benefits under the plan or
    the method of distributing benefits from the plan. A distribution
    from a plan, fund, or program shall not be treated as made in a
    form other than retirement income or as a distribution prior to
    termination of covered employment solely because such distribution
    is made to an employee who has attained age 62 and who is not
    separated from employment at the time of such distribution.
      (B) The Secretary may by regulation prescribe rules consistent
    with the standards and purposes of this chapter providing one or
    more exempt categories under which - 
        (i) severance pay arrangements, and
        (ii) supplemental retirement income payments, under which the
      pension benefits of retirees or their beneficiaries are
      supplemented to take into account some portion or all of the
      increases in the cost of living (as determined by the Secretary
      of Labor) since retirement,

    shall, for purposes of this subchapter, be treated as welfare plans
    rather than pension plans. In the case of any arrangement or
    payment a principal effect of which is the evasion of the standards
    or purposes of this chapter applicable to pension plans, such
    arrangement or payment shall be treated as a pension plan. An
    applicable voluntary early retirement incentive plan (as defined in
    section 457(e)(11)(D)(ii) of title 26) making payments or
    supplements described in section 457(e)(11)(D)(i) of title 26, and
    an applicable employment retention plan (as defined in section
    457(f)(4)(C) of title 26) making payments of benefits described in
    section 457(f)(4)(A) of title 26, shall, for purposes of this
    subchapter, be treated as a welfare plan (and not a pension plan)
    with respect to such payments and supplements.
      (3) The term "employee benefit plan" or "plan" means an employee
    welfare benefit plan or an employee pension benefit plan or a plan
    which is both an employee welfare benefit plan and an employee
    pension benefit plan.
      (4) The term "employee organization" means any labor union or any
    organization of any kind, or any agency or employee representation
    committee, association, group, or plan, in which employees
    participate and which exists for the purpose, in whole or in part,
    of dealing with employers concerning an employee benefit plan, or
    other matters incidental to employment relationships; or any
    employees' beneficiary association organized for the purpose in
    whole or in part, of establishing such a plan.
      (5) The term "employer" means any person acting directly as an
    employer, or indirectly in the interest of an employer, in relation
    to an employee benefit plan; and includes a group or association of
    employers acting for an employer in such capacity.
      (6) The term "employee" means any individual employed by an
    employer.
      (7) The term "participant" means any employee or former employee
    of an employer, or any member or former member of an employee
    organization, who is or may become eligible to receive a benefit of
    any type from an employee benefit plan which covers employees of
    such employer or members of such organization, or whose
    beneficiaries may be eligible to receive any such benefit.
      (8) The term "beneficiary" means a person designated by a
    participant, or by the terms of an employee benefit plan, who is or
    may become entitled to a benefit thereunder.
      (9) The term "person" means an individual, partnership, joint
    venture, corporation, mutual company, joint-stock company, trust,
    estate, unincorporated organization, association, or employee
    organization.
      (10) The term "State" includes any State of the United States,
    the District of Columbia, Puerto Rico, the Virgin Islands, American
    Samoa, Guam, Wake Island, and the Canal Zone. The term "United
    States" when used in the geographic sense means the States and the
    Outer Continental Shelf lands defined in the Outer Continental
    Shelf Lands Act (43 U.S.C. 1331-1343).
      (11) The term "commerce" means trade, traffic, commerce,
    transportation, or communication between any State and any place
    outside thereof.
      (12) The term "industry or activity affecting commerce" means any
    activity, business, or industry in commerce or in which a labor
    dispute would hinder or obstruct commerce or the free flow of
    commerce, and includes any activity or industry "affecting
    commerce" within the meaning of the Labor Management Relations Act,
    1947 [29 U.S.C. 141 et seq.], or the Railway Labor Act [45 U.S.C.
    151 et seq.].
      (13) The term "Secretary" means the Secretary of Labor.
      (14) The term "party in interest" means, as to an employee
    benefit plan - 
        (A) any fiduciary (including, but not limited to, any
      administrator, officer, trustee, or custodian), counsel, or
      employee of such employee benefit plan;
        (B) a person providing services to such plan;
        (C) an employer any of whose employees are covered by such
      plan;
        (D) an employee organization any of whose members are covered
      by such plan;
        (E) an owner, direct or indirect, of 50 percent or more of - 
          (i) the combined voting power of all classes of stock
        entitled to vote or the total value of shares of all classes of
        stock of a corporation.(!1)

          (ii) the capital interest or the profits interest of a
        partnership, or
          (iii) the beneficial interest of a trust or unincorporated
        enterprise,

      which is an employer or an employee organization described in
      subparagraph (C) or (D);
        (F) a relative (as defined in paragraph (15)) of any individual
      described in subparagraph (A), (B), (C), or (E);
        (G) a corporation, partnership, or trust or estate of which (or
      in which) 50 percent or more of - 
          (i) the combined voting power of all classes of stock
        entitled to vote or the total value of shares of all classes of
        stock of such corporation,
          (ii) the capital interest or profits interest of such
        partnership, or
          (iii) the beneficial interest of such trust or estate,

      is owned directly or indirectly, or held by persons described in
      subparagraph (A), (B), (C), (D), or (E);
        (H) an employee, officer, director (or an individual having
      powers or responsibilities similar to those of officers or
      directors), or a 10 percent or more shareholder directly or
      indirectly, of a person described in subparagraph (B), (C), (D),
      (E), or (G), or of the employee benefit plan; or
        (I) a 10 percent or more (directly or indirectly in capital or
      profits) partner or joint venturer of a person described in
      subparagraph (B), (C), (D), (E), or (G).

    The Secretary, after consultation and coordination with the
    Secretary of the Treasury, may by regulation prescribe a percentage
    lower than 50 percent for subparagraph (E) and (G) and lower than
    10 percent for subparagraph (H) or (I). The Secretary may prescribe
    regulations for determining the ownership (direct or indirect) of
    profits and beneficial interests, and the manner in which indirect
    stockholdings are taken into account. Any person who is a party in
    interest with respect to a plan to which a trust described in
    section 501(c)(22) of title 26 is permitted to make payments under
    section 1403 of this title shall be treated as a party in interest
    with respect to such trust.
      (15) The term "relative" means a spouse, ancestor, lineal
    descendant, or spouse of a lineal descendant.
      (16)(A) The term "administrator" means - 
        (i) the person specifically so designated by the terms of the
      instrument under which the plan is operated;
        (ii) if an administrator is not so designated, the plan
      sponsor; or
        (iii) in the case of a plan for which an administrator is not
      designated and a plan sponsor cannot be identified, such other
      person as the Secretary may by regulation prescribe.

      (B) The term "plan sponsor" means (i) the employer in the case of
    an employee benefit plan established or maintained by a single
    employer, (ii) the employee organization in the case of a plan
    established or maintained by an employee organization, or (iii) in
    the case of a plan established or maintained by two or more
    employers or jointly by one or more employers and one or more
    employee organizations, the association, committee, joint board of
    trustees, or other similar group of representatives of the parties
    who establish or maintain the plan.
      (17) The term "separate account" means an account established or
    maintained by an insurance company under which income, gains, and
    losses, whether or not realized, from assets allocated to such
    account, are, in accordance with the applicable contract, credited
    to or charged against such account without regard to other income,
    gains, or losses of the insurance company.
      (18) The term "adequate consideration" when used in part 4 of
    subtitle B of this subchapter means (A) in the case of a security
    for which there is a generally recognized market, either (i) the
    price of the security prevailing on a national securities exchange
    which is registered under section 78f of title 15, or (ii) if the
    security is not traded on such a national securities exchange, a
    price not less favorable to the plan than the offering price for
    the security as established by the current bid and asked prices
    quoted by persons independent of the issuer and of any party in
    interest; and (B) in the case of an asset other than a security for
    which there is a generally recognized market, the fair market value
    of the asset as determined in good faith by the trustee or named
    fiduciary pursuant to the terms of the plan and in accordance with
    regulations promulgated by the Secretary.
      (19) The term "nonforfeitable" when used with respect to a
    pension benefit or right means a claim obtained by a participant or
    his beneficiary to that part of an immediate or deferred benefit
    under a pension plan which arises from the participant's service,
    which is unconditional, and which is legally enforceable against
    the plan. For purposes of this paragraph, a right to an accrued
    benefit derived from employer contributions shall not be treated as
    forfeitable merely because the plan contains a provision described
    in section 1053(a)(3) of this title.
      (20) The term "security" has the same meaning as such term has
    under section 77b(1) (!2) of title 15.

      (21)(A) Except as otherwise provided in subparagraph (B), a
    person is a fiduciary with respect to a plan to the extent (i) he
    exercises any discretionary authority or discretionary control
    respecting management of such plan or exercises any authority or
    control respecting management or disposition of its assets, (ii) he
    renders investment advice for a fee or other compensation, direct
    or indirect, with respect to any moneys or other property of such
    plan, or has any authority or responsibility to do so, or (iii) he
    has any discretionary authority or discretionary responsibility in
    the administration of such plan. Such term includes any person
    designated under section 1105(c)(1)(B) of this title.
      (B) If any money or other property of an employee benefit plan is
    invested in securities issued by an investment company registered
    under the Investment Company Act of 1940 [15 U.S.C. 80a-1 et seq.],
    such investment shall not by itself cause such investment company
    or such investment company's investment adviser or principal
    underwriter to be deemed to be a fiduciary or a party in interest
    as those terms are defined in this subchapter, except insofar as
    such investment company or its investment adviser or principal
    underwriter acts in connection with an employee benefit plan
    covering employees of the investment company, the investment
    adviser, or its principal underwriter. Nothing contained in this
    subparagraph shall limit the duties imposed on such investment
    company, investment adviser, or principal underwriter by any other
    law.
      (22) The term "normal retirement benefit" means the greater of
    the early retirement benefit under the plan, or the benefit under
    the plan commencing at normal retirement age. The normal retirement
    benefit shall be determined without regard to - 
        (A) medical benefits, and
        (B) disability benefits not in excess of the qualified
      disability benefit.

    For purposes of this paragraph, a qualified disability benefit is a
    disability benefit provided by a plan which does not exceed the
    benefit which would be provided for the participant if he separated
    from the service at normal retirement age. For purposes of this
    paragraph, the early retirement benefit under a plan shall be
    determined without regard to any benefit under the plan which the
    Secretary of the Treasury finds to be a benefit described in
    section 1054(b)(1)(G) of this title.
      (23) The term "accrued benefit" means - 
        (A) in the case of a defined benefit plan, the individual's
      accrued benefit determined under the plan and, except as provided
      in section 1054(c)(3) of this title, expressed in the form of an
      annual benefit commencing at normal retirement age, or
        (B) in the case of a plan which is an individual account plan,
      the balance of the individual's account.

    The accrued benefit of an employee shall not be less than the
    amount determined under section 1054(c)(2)(B) of this title with
    respect to the employee's accumulated contribution.
      (24) The term "normal retirement age" means the earlier of - 
        (A) the time a plan participant attains normal retirement age
      under the plan, or
        (B) the later of - 
          (i) the time a plan participant attains age 65, or
          (ii) the 5th anniversary of the time a plan participant
        commenced participation in the plan.

      (25) The term "vested liabilities" means the present value of the
    immediate or deferred benefits available at normal retirement age
    for participants and their beneficiaries which are nonforfeitable.
      (26) The term "current value" means fair market value where
    available and otherwise the fair value as determined in good faith
    by a trustee or a named fiduciary (as defined in section 1102(a)(2)
    of this title) pursuant to the terms of the plan and in accordance
    with regulations of the Secretary, assuming an orderly liquidation
    at the time of such determination.
      (27) The term "present value", with respect to a liability, means
    the value adjusted to reflect anticipated events. Such adjustments
    shall conform to such regulations as the Secretary of the Treasury
    may prescribe.
      (28) The term "normal service cost" or "normal cost" means the
    annual cost of future pension benefits and administrative expenses
    assigned, under an actuarial cost method, to years subsequent to a
    particular valuation date of a pension plan. The Secretary of the
    Treasury may prescribe regulations to carry out this paragraph.
      (29) The term "accrued liability" means the excess of the present
    value, as of a particular valuation date of a pension plan, of the
    projected future benefit costs and administrative expenses for all
    plan participants and beneficiaries over the present value of
    future contributions for the normal cost of all applicable plan
    participants and beneficiaries. The Secretary of the Treasury may
    prescribe regulations to carry out this paragraph.
      (30) The term "unfunded accrued liability" means the excess of
    the accrued liability, under an actuarial cost method which so
    provides, over the present value of the assets of a pension plan.
    The Secretary of the Treasury may prescribe regulations to carry
    out this paragraph.
      (31) The term "advance funding actuarial cost method" or
    "actuarial cost method" means a recognized actuarial technique
    utilized for establishing the amount and incidence of the annual
    actuarial cost of pension plan benefits and expenses. Acceptable
    actuarial cost methods shall include the accrued benefit cost
    method (unit credit method), the entry age normal cost method, the
    individual level premium cost method, the aggregate cost method,
    the attained age normal cost method, and the frozen initial
    liability cost method. The terminal funding cost method and the
    current funding (pay-as-you-go) cost method are not acceptable
    actuarial cost methods. The Secretary of the Treasury shall issue
    regulations to further define acceptable actuarial cost methods.
      (32) The term "governmental plan" means a plan established or
    maintained for its employees by the Government of the United
    States, by the government of any State or political subdivision
    thereof, or by any agency or instrumentality of any of the
    foregoing. The term "governmental plan" also includes any plan to
    which the Railroad Retirement Act of 1935, or 1937 [45 U.S.C. 231
    et seq.] applies, and which is financed by contributions required
    under that Act and any plan of an international organization which
    is exempt from taxation under the provisions of the International
    Organizations Immunities Act [22 U.S.C. 288 et seq.]. The term
    "governmental plan" includes a plan which is established and
    maintained by an Indian tribal government (as defined in section
    7701(a)(40) of title 26), a subdivision of an Indian tribal
    government (determined in accordance with section 7871(d) of title
    26), or an agency or instrumentality of either, and all of the
    participants of which are employees of such entity substantially
    all of whose services as such an employee are in the performance of
    essential governmental functions but not in the performance of
    commercial activities (whether or not an essential government
    function) (!3)

      (33)(A) The term "church plan" means a plan established and
    maintained (to the extent required in clause (ii) of subparagraph
    (B)) for its employees (or their beneficiaries) by a church or by a
    convention or association of churches which is exempt from tax
    under section 501 of title 26.
      (B) The term "church plan" does not include a plan - 
        (i) which is established and maintained primarily for the
      benefit of employees (or their beneficiaries) of such church or
      convention or association of churches who are employed in
      connection with one or more unrelated trades or businesses
      (within the meaning of section 513 of title 26), or
        (ii) if less than substantially all of the individuals included
      in the plan are individuals described in subparagraph (A) or in
      clause (ii) of subparagraph (C) (or their beneficiaries).

      (C) For purposes of this paragraph - 
        (i) A plan established and maintained for its employees (or
      their beneficiaries) by a church or by a convention or
      association of churches includes a plan maintained by an
      organization, whether a civil law corporation or otherwise, the
      principal purpose or function of which is the administration or
      funding of a plan or program for the provision of retirement
      benefits or welfare benefits, or both, for the employees of a
      church or a convention or association of churches, if such
      organization is controlled by or associated with a church or a
      convention or association of churches.
        (ii) The term employee of a church or a convention or
      association of churches includes - 
          (I) a duly ordained, commissioned, or licensed minister of a
        church in the exercise of his ministry, regardless of the
        source of his compensation;
          (II) an employee of an organization, whether a civil law
        corporation or otherwise, which is exempt from tax under
        section 501 of title 26 and which is controlled by or
        associated with a church or a convention or association of
        churches; and
          (III) an individual described in clause (v).

        (iii) A church or a convention or association of churches which
      is exempt from tax under section 501 of title 26 shall be deemed
      the employer of any individual included as an employee under
      clause (ii).
        (iv) An organization, whether a civil law corporation or
      otherwise, is associated with a church or a convention or
      association of churches if it shares common religious bonds and
      convictions with that church or convention or association of
      churches.
        (v) If an employee who is included in a church plan separates
      from the service of a church or a convention or association of
      churches or an organization, whether a civil law corporation or
      otherwise, which is exempt from tax under section 501 of title 26
      and which is controlled by or associated with a church or a
      convention or association of churches, the church plan shall not
      fail to meet the requirements of this paragraph merely because
      the plan - 
          (I) retains the employee's accrued benefit or account for the
        payment of benefits to the employee or his beneficiaries
        pursuant to the terms of the plan; or
          (II) receives contributions on the employee's behalf after
        the employee's separation from such service, but only for a
        period of 5 years after such separation, unless the employee is
        disabled (within the meaning of the disability provisions of
        the church plan or, if there are no such provisions in the
        church plan, within the meaning of section 72(m)(7) of title
        26) at the time of such separation from service.

      (D)(i) If a plan established and maintained for its employees (or
    their beneficiaries) by a church or by a convention or association
    of churches which is exempt from tax under section 501 of title 26
    fails to meet one or more of the requirements of this paragraph and
    corrects its failure to meet such requirements within the
    correction period, the plan shall be deemed to meet the
    requirements of this paragraph for the year in which the correction
    was made and for all prior years.
      (ii) If a correction is not made within the correction period,
    the plan shall be deemed not to meet the requirements of this
    paragraph beginning with the date on which the earliest failure to
    meet one or more of such requirements occurred.
      (iii) For purposes of this subparagraph, the term "correction
    period" means - 
        (I) the period ending 270 days after the date of mailing by the
      Secretary of the Treasury of a notice of default with respect to
      the plan's failure to meet one or more of the requirements of
      this paragraph; or
        (II) any period set by a court of competent jurisdiction after
      a final determination that the plan fails to meet such
      requirements, or, if the court does not specify such period, any
      reasonable period determined by the Secretary of the Treasury on
      the basis of all the facts and circumstances, but in any event
      not less than 270 days after the determination has become final;
      or
        (III) any additional period which the Secretary of the Treasury
      determines is reasonable or necessary for the correction of the
      default,

    whichever has the latest ending date.
      (34) The term "individual account plan" or "defined contribution
    plan" means a pension plan which provides for an individual account
    for each participant and for benefits based solely upon the amount
    contributed to the participant's account, and any income, expenses,
    gains and losses, and any forfeitures of accounts of other
    participants which may be allocated to such participant's account.
      (35) The term "defined benefit plan" means a pension plan other
    than an individual account plan; except that a pension plan which
    is not an individual account plan and which provides a benefit
    derived from employer contributions which is based partly on the
    balance of the separate account of a participant - 
        (A) for the purposes of section 1052 of this title, shall be
      treated as an individual account plan, and
        (B) for the purposes of paragraph (23) of this section and
      section 1054 of this title, shall be treated as an individual
      account plan to the extent benefits are based upon the separate
      account of a participant and as a defined benefit plan with
      respect to the remaining portion of benefits under the plan.

      (36) The term "excess benefit plan" means a plan maintained by an
    employer solely for the purpose of providing benefits for certain
    employees in excess of the limitations on contributions and
    benefits imposed by section 415 of title 26 on plans to which that
    section applies without regard to whether the plan is funded. To
    the extent that a separable part of a plan (as determined by the
    Secretary of Labor) maintained by an employer is maintained for
    such purpose, that part shall be treated as a separate plan which
    is an excess benefit plan.
      (37)(A) The term "multiemployer plan" means a plan - 
        (i) to which more than one employer is required to contribute,
        (ii) which is maintained pursuant to one or more collective
      bargaining agreements between one or more employee organizations
      and more than one employer, and
        (iii) which satisfies such other requirements as the Secretary
      may prescribe by regulation.

      (B) For purposes of this paragraph, all trades or businesses
    (whether or not incorporated) which are under common control within
    the meaning of section 1301(b)(1) of this title are considered a
    single employer.
      (C) Notwithstanding subparagraph (A), a plan is a multiemployer
    plan on and after its termination date if the plan was a
    multiemployer plan under this paragraph for the plan year preceding
    its termination date.
      (D) For purposes of this subchapter, notwithstanding the
    preceding provisions of this paragraph, for any plan year which
    began before September 26, 1980, the term "multiemployer plan"
    means a plan described in this paragraph (37) as in effect
    immediately before such date.
      (E) Within one year after September 26, 1980, a multiemployer
    plan may irrevocably elect, pursuant to procedures established by
    the corporation and subject to the provisions of sections 1453(b)
    and (c) of this title, that the plan shall not be treated as a
    multiemployer plan for all purposes under this chapter or the
    Internal Revenue Code of 1954 if for each of the last 3 plan years
    ending prior to the effective date of the Multiemployer Pension
    Plan Amendments Act of 1980 - 
        (i) the plan was not a multiemployer plan because the plan was
      not a plan described in subparagraph (A)(iii) of this paragraph
      and section 414(f)(1)(C) of title 26 (as such provisions were in
      effect on the day before September 26, 1980); and
        (ii) the plan had been identified as a plan that was not a
      multiemployer plan in substantially all its filings with the
      corporation, the Secretary of Labor and the Secretary of the
      Treasury.

      (F)(i) For purposes of this subchapter a qualified football
    coaches plan - 
        (I) shall be treated as a multiemployer plan to the extent not
      inconsistent with the purposes of this subparagraph; and
        (II) notwithstanding section 401(k)(4)(B) of title 26, may
      include a qualified cash and deferred arrangement.

      (ii) For purposes of this subparagraph, the term "qualified
    football coaches plan" means any defined contribution plan which is
    established and maintained by an organization - 
        (I) which is described in section 501(c) of title 26;
        (II) the membership of which consists entirely of individuals
      who primarily coach football as full-time employees of 4-year
      colleges or universities described in section 170(b)(1)(A)(ii) of
      title 26; and
        (III) which was in existence on September 18, 1986.

      (G)(i) Within 1 year after August 17, 2006 - 
        (I) an election under subparagraph (E) may be revoked, pursuant
      to procedures prescribed by the Pension Benefit Guaranty
      Corporation, if, for each of the 3 plan years prior to August 17,
      2006, the plan would have been a multiemployer plan but for the
      election under subparagraph (E), and
        (II) a plan that meets the criteria in clauses (i) and (ii) of
      subparagraph (A) of this paragraph or that is described in clause
      (vi) may, pursuant to procedures prescribed by the Pension
      Benefit Guaranty Corporation, elect to be a multiemployer plan,
      if - 
          (aa) for each of the 3 plan years immediately before August
        17, 2006, the plan has met those criteria or is so described,
          (bb) substantially all of the plan's employer contributions
        for each of those plan years were made or required to be made
        by organizations that were exempt from tax under section 501 of
        title 26, and
          (cc) the plan was established prior to September 2, 1974.

      (ii) An election under this paragraph shall be effective for all
    purposes under this chapter and under title 26, starting with the
    first plan year ending after August 17, 2006.
      (iii) Once made, an election under this paragraph shall be
    irrevocable, except that a plan described in subclause (i)(II)
    shall cease to be a multiemployer plan as of the plan year
    beginning immediately after the first plan year for which the
    majority of its employer contributions were made or required to be
    made by organizations that were not exempt from tax under section
    501 of title 26.
      (iv) The fact that a plan makes an election under clause (i)(II)
    does not imply that the plan was not a multiemployer plan prior to
    the date of the election or would not be a multiemployer plan
    without regard to the election.
      (v)(I) No later than 30 days before an election is made under
    this paragraph, the plan administrator shall provide notice of the
    pending election to each plan participant and beneficiary, each
    labor organization representing such participants or beneficiaries,
    and each employer that has an obligation to contribute to the plan,
    describing the principal differences between the guarantee programs
    under subchapter III and the benefit restrictions under this
    subchapter for single employer and multiemployer plans, along with
    such other information as the plan administrator chooses to
    include.
      (II) Within 180 days after August 17, 2006, the Secretary shall
    prescribe a model notice under this subparagraph.
      (III) A plan administrator's failure to provide the notice
    required under this subparagraph shall be treated for purposes of
    section 1132(c)(2) of this title as a failure or refusal by the
    plan administrator to file the annual report required to be filed
    with the Secretary under section 1021(b)(4) (!4) of this title.

      (vi) A plan is described in this clause if it is a plan - 
        (I) that was established in Chicago, Illinois, on August 12,
      1881; and
        (II) sponsored by an organization described in section
      501(c)(5) of title 26 and exempt from tax under section 501(a) of
      title 26.

      (38) The term "investment manager" means any fiduciary (other
    than a trustee or named fiduciary, as defined in section 1102(a)(2)
    of this title) - 
        (A) who has the power to manage, acquire, or dispose of any
      asset of a plan;
        (B) who (i) is registered as an investment adviser under the
      Investment Advisers Act of 1940 [15 U.S.C. 80b-1 et seq.]; (ii)
      is not registered as an investment adviser under such Act by
      reason of paragraph (1) of section 203A(a) of such Act [15 U.S.C.
      80b-3a(a)], is registered as an investment adviser under the laws
      of the State (referred to in such paragraph (1)) in which it
      maintains its principal office and place of business, and, at the
      time the fiduciary last filed the registration form most recently
      filed by the fiduciary with such State in order to maintain the
      fiduciary's registration under the laws of such State, also filed
      a copy of such form with the Secretary; (iii) is a bank, as
      defined in that Act; or (iv) is an insurance company qualified to
      perform services described in subparagraph (A) under the laws of
      more than one State; and
        (C) has acknowledged in writing that he is a fiduciary with
      respect to the plan.

      (39) The terms "plan year" and "fiscal year of the plan" mean,
    with respect to a plan, the calendar, policy, or fiscal year on
    which the records of the plan are kept.
      (40)(A) The term "multiple employer welfare arrangement" means an
    employee welfare benefit plan, or any other arrangement (other than
    an employee welfare benefit plan), which is established or
    maintained for the purpose of offering or providing any benefit
    described in paragraph (1) to the employees of two or more
    employers (including one or more self-employed individuals), or to
    their beneficiaries, except that such term does not include any
    such plan or other arrangement which is established or maintained -
    
        (i) under or pursuant to one or more agreements which the
      Secretary finds to be collective bargaining agreements,
        (ii) by a rural electric cooperative, or
        (iii) by a rural telephone cooperative association.

      (B) For purposes of this paragraph - 
        (i) two or more trades or businesses, whether or not
      incorporated, shall be deemed a single employer if such trades or
      businesses are within the same control group,
        (ii) the term "control group" means a group of trades or
      businesses under common control,
        (iii) the determination of whether a trade or business is under
      "common control" with another trade or business shall be
      determined under regulations of the Secretary applying principles
      similar to the principles applied in determining whether
      employees of two or more trades or businesses are treated as
      employed by a single employer under section 1301(b) of this
      title, except that, for purposes of this paragraph, common
      control shall not be based on an interest of less than 25
      percent,
        (iv) the term "rural electric cooperative" means - 
          (I) any organization which is exempt from tax under section
        501(a) of title 26 and which is engaged primarily in providing
        electric service on a mutual or cooperative basis, and
          (II) any organization described in paragraph (4) or (6) of
        section 501(c) of title 26 which is exempt from tax under
        section 501(a) of title 26 and at least 80 percent of the
        members of which are organizations described in subclause (I),
        and

        (v) the term "rural telephone cooperative association" means an
      organization described in paragraph (4) or (6) of section 501(c)
      of title 26 which is exempt from tax under section 501(a) of
      title 26 and at least 80 percent of the members of which are
      organizations engaged primarily in providing telephone service to
      rural areas of the United States on a mutual, cooperative, or
      other basis.

      (41) (!5) Single-employer plan. - The term "single-employer plan"
    means an employee benefit plan other than a multiemployer plan.

      (41) (!5) The term "single-employer plan" means a plan which is
    not a multiemployer plan.
      (42) the term "plan assets" means plan assets as defined by such
    regulations as the Secretary may prescribe, except that under such
    regulations the assets of any entity shall not be treated as plan
    assets if, immediately after the most recent acquisition of any
    equity interest in the entity, less than 25 percent of the total
    value of each class of equity interest in the entity is held by
    benefit plan investors. For purposes of determinations pursuant to
    this paragraph, the value of any equity interest held by a person
    (other than such a benefit plan investor) who has discretionary
    authority or control with respect to the assets of the entity or
    any person who provides investment advice for a fee (direct or
    indirect) with respect to such assets, or any affiliate of such a
    person, shall be disregarded for purposes of calculating the 25
    percent threshold. An entity shall be considered to hold plan
    assets only to the extent of the percentage of the equity interest
    held by benefit plan investors. For purposes of this paragraph, the
    term "benefit plan investor" means an employee benefit plan subject
    to part 4,(!6) any plan to which section 4975 of title 26 applies,
    and any entity whose underlying assets include plan assets by
    reason of a plan's investment in such entity.


-SOURCE-
    (Pub. L. 93-406, title I, Sec. 3, Sept. 2, 1974, 88 Stat. 833; Pub.
    L. 96-364, title III, Secs. 302, 305, title IV, Secs. 407(a), 409,
    Sept. 26, 1980, 94 Stat. 1291, 1294, 1303, 1307; Pub. L. 97-473,
    title III, Sec. 302(a), Jan. 14, 1983, 96 Stat. 2612; Pub. L. 99-
    272, title XI, Sec. 11016(c)(1), Apr. 7, 1986, 100 Stat. 273; Pub.
    L. 99-509, title IX, Sec. 9203(b)(1), Oct. 21, 1986, 100 Stat.
    1979; Pub. L. 99-514, title XVIII, Sec. 1879(u)(3), Oct. 22, 1986,
    100 Stat. 2913; Pub. L. 100-202, Sec. 136(a), Dec. 22, 1987, 101
    Stat. 1329-441; Pub. L. 101-239, title VII, Secs. 7871(b)(2),
    7881(m)(2)(D), 7891(a)(1), 7893(a), 7894(a)(1)(A), (2)(A), (3),
    (4), Dec. 19, 1989, 103 Stat. 2435, 2444, 2445, 2447, 2448; Pub. L.
    101-508, title XII, Sec. 12002(b)(2)(C), Nov. 5, 1990, 104 Stat.
    1388-566; Pub. L. 102-89, Sec. 2, Aug. 14, 1991, 105 Stat. 446;
    Pub. L. 104-290, title III, Sec. 308(b)(1), Oct. 11, 1996, 110
    Stat. 3440; Pub. L. 105-72, Sec. 1(a), Nov. 10, 1997, 111 Stat.
    1457; Pub. L. 109-280, title VI, Sec. 611(f), title IX, Secs.
    905(a), 906(a)(2)(A), title XI, Secs. 1104(c), 1106(a), Aug. 17,
    2006, 120 Stat. 972, 1050, 1051, 1060.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This chapter, referred to in pars. (2)(B) and (37)(E), (G)(ii),
    was in the original "this Act", meaning Pub. L. 93-406, known as
    the Employee Retirement Income Security Act of 1974. Titles I, III,
    and IV of such Act are classified principally to this chapter. For
    complete classification of this Act to the Code, see Short Title
    note set out under section 1001 of this title and Tables.
      The Outer Continental Shelf Lands Act, referred to in par. (10),
    is act Aug. 7, 1953, ch. 345, 67 Stat. 462, as amended, which is
    classified generally to subchapter III (Sec. 1331 et seq.) of
    chapter 29 of Title 43, Public Lands. For complete classification
    of this Act to the Code, see Short Title note set out under section
    1331 of Title 43 and Tables.
      The Labor Management Relations Act, 1947, referred to in par.
    (12), is act June 23, 1947, ch. 120, 61 Stat. 136, as amended,
    which is classified principally to chapter 7 (Sec. 141 et seq.) of
    this title. For complete classification of this Act to the Code,
    see section 141 of this title and Tables.
      The Railway Labor Act, referred to in par. (12), is act May 20,
    1926, ch. 347, 44 Stat. 577, as amended, which is classified
    principally to chapter 8 (Sec. 151 et seq.) of Title 45, Railroads.
    For complete classification of this Act to the Code, see section
    151 of Title 45 and Tables.
      Section 77b(1) of title 15, referred to in par. (20), was
    redesignated section 77b(a)(1) of title 15 by Pub. L. 104-290,
    title I, Sec. 106(a)(1), Oct. 11, 1996, 110 Stat. 3424.
      The Investment Company Act of 1940, referred to in par. (21)(B),
    is title I of act Aug. 22, 1940, ch. 686, 54 Stat. 789, as amended,
    which is classified generally to subchapter I (Sec. 80a-1 et seq.)
    of chapter 2D of Title 15, Commerce and Trade. For complete
    classification of this Act to the Code, see section 80a-51 of Title
    15 and Tables.
      The Railroad Retirement Act of 1935 or 1937, referred to in par.
    (32), means act Aug. 29, 1935, ch. 812, 49 Stat. 967, as amended,
    known as the Railroad Retirement Act of 1935. The Railroad
    Retirement Act of 1935 was amended generally by act June 24, 1937,
    ch. 382, part I, 50 Stat. 307, and was known as the Railroad
    Retirement Act of 1937. The Railroad Retirement Act of 1937 was
    amended generally and redesignated the Railroad Retirement Act of
    1974 by Pub. L. 93-445, title I, Oct. 16, 1974, 88 Stat. 1305 and
    is classified generally to subchapter IV (Sec. 231 et seq.) of
    chapter 9 of Title 45, Railroads. For complete classification of
    this Act to the Code, see Tables.
      The International Organizations Immunities Act, referred to in
    par. (32), is title I of act Dec. 29, 1945, ch. 652, 59 Stat. 669,
    as amended, which is classified principally to subchapter XVIII
    (Sec. 288 et seq.) of chapter 7 of Title 22, Foreign Relations and
    Intercourse. For complete classification of this Act to the Code,
    see Short Title note set out under section 288 of Title 22 and
    Tables.
      Sections 1453(b) and (c) of this title, referred to in par.
    (37)(E), was in the original "sections 4403(b) and (c)", meaning
    sections 4403(b) and (c) of the Employee Retirement Income Security
    Act of 1974, which was translated as section 1453(b) and (c) of
    this title as the probable intent of Congress, in view of the
    Employee Retirement Income Security Act of 1974 not containing a
    section 4403 and the subject matter of section 4303 of the Act
    which is classified to section 1453(b) and (c) of this title.
      The Internal Revenue Code of 1954, referred to in par. (37)(E),
    was redesignated the Internal Revenue Code of 1986 by Pub. L. 99-
    514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, and is classified to
    Title 26, Internal Revenue Code.
      For the effective date of the Multiemployer Pension Plan
    Amendments Act of 1980, referred to in par. (37)(E), see section
    1461(e) of this title.
      The Investment Advisers Act of 1940, referred to in par. (38)(B),
    is title II of act Aug. 22, 1940, ch. 686, 54 Stat. 847, as
    amended, which is classified generally to subchapter II (Sec. 80b-1
    et seq.) of chapter 2D of Title 15, Commerce and Trade. For
    complete classification of this Act to the Code, see section 80b-20
    of Title 15 and Tables.


-MISC1-
                                AMENDMENTS                            
      2006 - Par. (2)(A). Pub. L. 109-280, Sec. 905(a), inserted at end
    "A distribution from a plan, fund, or program shall not be treated
    as made in a form other than retirement income or as a distribution
    prior to termination of covered employment solely because such
    distribution is made to an employee who has attained age 62 and who
    is not separated from employment at the time of such distribution."
      Par. (2)(B). Pub. L. 109-280, Sec. 1104(c), inserted at end "An
    applicable voluntary early retirement incentive plan (as defined in
    section 457(e)(11)(D)(ii) of title 26) making payments or
    supplements described in section 457(e)(11)(D)(i) of title 26, and
    an applicable employment retention plan (as defined in section
    457(f)(4)(C) of title 26) making payments of benefits described in
    section 457(f)(4)(A) of title 26, shall, for purposes of this
    subchapter, be treated as a welfare plan (and not a pension plan)
    with respect to such payments and supplements."
      Par. (32). Pub. L. 109-280, Sec. 906(a)(2)(A), inserted at end
    "The term 'governmental plan' includes a plan which is established
    and maintained by an Indian tribal government (as defined in
    section 7701(a)(40) of title 26), a subdivision of an Indian tribal
    government (determined in accordance with section 7871(d) of title
    26), or an agency or instrumentality of either, and all of the
    participants of which are employees of such entity substantially
    all of whose services as such an employee are in the performance of
    essential governmental functions but not in the performance of
    commercial activities (whether or not an essential government
    function)".
      Par. (37)(G). Pub. L. 109-280, Sec. 1106(a), added subpar. (G).
      Par. (42). Pub. L. 109-280, Sec. 611(f), added par. (42).
      1997 - Par. (38)(B). Pub. L. 105-72 added introductory provisions
    and cls. (i) and (ii), redesignated former cls. (ii) and (iii) as
    (iii) and (iv), respectively, and struck out former introductory
    provisions and cl. (i) which read as follows: "who is (i)
    registered as an investment adviser under the Investment Advisers
    Act of 1940 or under the laws of any State;".
      1996 - Par. (38)(B). Pub. L. 104-290 temporarily inserted "or
    under the laws of any State" before "; (ii) is a bank,". See
    Effective and Termination Dates of 1996 Amendment note below.
      1991 - Par. (40)(A)(iii), (B)(v). Pub. L. 102-89 added cl. (iii)
    at end of subpar. (A) and cl. (v) at end of subpar. (B).
      1990 - Par. (41). Pub. L. 101-508 added par. (41) which read as
    follows: "The term 'single-employer plan' means a plan which is not
    a multiemployer plan."
      1989 - Pars. (14), (33), (36), (40)(B)(iv). Pub. L. 101-239, Sec.
    7891(a)(1), substituted "Internal Revenue Code of 1986" for
    "Internal Revenue Code of 1954", which for purposes of codification
    was translated as "title 26" thus requiring no change in text.
      Par. (23). Pub. L. 101-239, Sec. 7881(m)(2)(D), inserted at end
    "The accrued benefit of an employee shall not be less than the
    amount determined under section 1054(c)(2)(B) of this title with
    respect to the employee's accumulated contribution."
      Par. (24)(B). Pub. L. 101-239, Sec. 7871(b)(2), amended subpar.
    (B) generally. Prior to amendment, subpar. (B) read as follows:
    "the latest of - 
        "(i) the time a plan participant attains age 65,
        "(ii) in the case of a plan participant who commences
      participation in the plan within 5 years before attaining normal
      retirement age under the plan, the 5th anniversary of the time
      the plan participant commences participation in the plan, or
        "(iii) in the case of a plan participant not described in
      clause (ii), the 10th anniversary of the time the plan
      participant commences participation in the plan."
      Par. (33)(D)(iii). Pub. L. 101-239, Sec. 7894(a)(1)(A),
    substituted "Secretary of the Treasury" for "Secretary" in subcls.
    (I) to (III).
      Par. (37)(B). Pub. L. 101-239, Sec. 7893(a), substituted "section
    1301(b)(1)" for "section 1301(c)(1)".
      Par. (37)(F)(i)(II). Pub. L. 101-239, Sec. 7894(a)(2)(A)(i),
    substituted "the Internal Revenue Code of 1986" for "such Code",
    which for purposes of codification was translated as "title 26"
    thus requiring no change in text.
      Par. (37)(F)(ii). Pub. L. 101-239, Sec. 7894(a)(2)(A)(ii), (iii),
    inserted "of such Code" after "section 501(c)" in subcl. (I) and
    after "section 170(b)(1)(A)(ii)" in subcl. (II), which for purposes
    of codification was translated as "of title 26" thus requiring no
    change in text.
      Par. (39). Pub. L. 101-239, Sec. 7894(a)(3), substituted "mean,
    with respect to a plan, the calendar" for "mean with respect to a
    plan, calendar".
      Par. (41). Pub. L. 101-239, Sec. 7894(a)(4), added par. (41).
      1987 - Par. (37)(F). Pub. L. 100-202 added subpar. (F).
      1986 - Par. (24)(B). Pub. L. 99-509 amended subpar. (B)
    generally. Prior to amendment, subpar. (B) read as follows: "the
    later of - 
        "(i) the time a plan participant attains age 65, or
        "(ii) the 10th anniversary of the time a plan participant
      commenced participation in the plan."
      Par. (37)(A). Pub. L. 99-514 repealed the amendment made by Pub.
    L. 99-272. See note below.
      Pub. L. 99-272, which, eff. Jan. 1, 1986, directed the
    substitution of "means a pension plan" for "means a plan" was
    repealed by Pub. L. 99-514, eff. Jan. 1, 1986.
      1983 - Par. (40). Pub. L. 97-473 added par. (40).
      1980 - Par. (2). Pub. L. 96-364, Sec. 409, redesignated existing
    provisions as subpar. (A), inserted exception for subpar. (B),
    substituted "(i)" for "(A)" and "(ii)" for "(B)", and added subpar.
    (B).
      Par. (14). Pub. L. 96-364, Sec. 305, inserted provisions
    respecting a trust described in section 501(c)(22) of title 26.
      Par. (33). Pub. L. 96-364, Sec. 407(a), substituted provisions
    defining "church plan" as a plan established and maintained (to the
    extent required in cl. (ii) of subpar. (B)) for employees or
    beneficiaries by a church, etc., exempt from tax under section 501
    of title 26, for provisions defining "church plan" as a plan
    established and maintained for employees by a church, etc., exempt
    from tax under section 501 of title 26, or a plan in existence on
    Jan. 1, 1974, established and maintained by a church, etc., for
    employees and employees of agencies of the church, etc.
      Par. (37). Pub. L. 96-364, Sec. 302(a), substantially revised
    definition of term "multiemployer plan" by, among other changes,
    restructuring subpar. (A), resulting in elimination of provisions
    covering amount of contributions and payment of benefits, and
    subpar. (B), resulting in elimination of provisions reworking
    amount of contributions for subsequent plan years, and added
    subpars. (C) to (E).

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Amendment by section 611(f) of Pub. L. 109-280 applicable to
    transactions occurring after Aug. 17, 2006, see section 611(h)(1)
    of Pub. L. 109-280, set out as a note under section 4975 of Title
    26, Internal Revenue Code.
      Amendment by section 905(a) of Pub. L. 109-280 applicable to
    distributions in plan years beginning after Dec. 31, 2006, see
    section 905(c) of Pub. L. 109-280, set out as a note under section
    401 of Title 26, Internal Revenue Code.
      Amendment by section 906(a)(2)(A) of Pub. L. 109-280 applicable
    to any year beginning on or after Aug. 17, 2006, see section 906(c)
    of Pub. L. 109-280, set out as a note under section 414 of Title
    26, Internal Revenue Code.
      Amendment by section 1104(c) of Pub. L. 109-280 effective Aug.
    17, 2006, and applicable to plan years ending after such date, see
    section 1104(d)(1), (3) of Pub. L. 109-280, set out as a note under
    section 457 of Title 26, Internal Revenue Code.

                     EFFECTIVE DATE OF 1997 AMENDMENT                 
      Section 1(c) of Pub. L. 105-72 provided that: "The amendments
    made by subsection (a) [amending this section] shall take effect on
    July 8, 1997, except that the requirement of section 3(38)(B)(ii)
    of the Employee Retirement Income Security Act of 1974 [section
    1002(38)(B)(ii) of this title] (as amended by this Act) for filing
    with the Secretary of Labor of a copy of a registration form which
    has been filed with a State before the date of the enactment of
    this Act [Nov. 10, 1997], or is to be filed with a State during the
    1-year period beginning with such date, shall be treated as
    satisfied upon the filing of such a copy with the Secretary at any
    time during such 1-year period. This section shall supersede
    section 308(b) of the National Securities Markets Improvement Act
    of 1996 [Pub. L. 104-290, amending this section and enacting
    provisions set out as an Effective and Termination Dates of 1996
    Amendment note below] (and the amendment made thereby)."

             EFFECTIVE AND TERMINATION DATES OF 1996 AMENDMENT         
      Amendment by Pub. L. 104-290 effective 270 days after Oct. 11,
    1996, see section 308(a) of Pub. L. 104-290, as amended, set out as
    a note under section 80b-2 of Title 15, Commerce and Trade.
      Section 308(b)(2) of Pub. L. 104-290 which provided that the
    amendment made by paragraph (1), amending this section, ceased to
    be effective 2 years after Oct. 11, 1996, was superseded by section
    1(c) of Pub. L. 105-72, set out as an Effective Date of 1997
    Amendment note above.

                     EFFECTIVE DATE OF 1991 AMENDMENT                 
      Section 3 of Pub. L. 102-89 provided that: "The amendments made
    by section 2 [amending this section] shall take effect on the date
    of the enactment of this Act [Aug. 14, 1991]."

                     EFFECTIVE DATE OF 1990 AMENDMENT                 
      Amendment by Pub. L. 101-508 applicable to reversions occurring
    after Sept. 30, 1990, but not applicable to any reversion after
    Sept. 30, 1990, if (1) in the case of plans subject to subchapter
    III of this chapter, notice of intent to terminate under such
    subchapter was provided to participants (or if no participants, to
    Pension Benefit Guaranty Corporation) before Oct. 1, 1990, (2) in
    the case of plans subject to subchapter I of this chapter (and not
    subchapter III), notice of intent to reduce future accruals under
    section 1054(h) of this title was provided to participants in
    connection with termination before Oct. 1, 1990, (3) in the case of
    plans not subject to subchapter I or III of this chapter, a request
    for a determination letter with respect to termination was filed
    with Secretary of the Treasury or Secretary's delegate before Oct.
    1, 1990, or (4) in the case of plans not subject to subchapter I or
    III of this chapter and having only one participant, a resolution
    terminating the plan was adopted by employer before Oct. 1, 1990,
    see section 12003 of Pub. L. 101-508, set out as a note under
    section 4980 of Title 26, Internal Revenue Code.

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by section 7871(b)(2) of Pub. L. 101-239 effective as
    if included in the amendments made by section 9203 of Pub. L. 99-
    509, see section 7871(b)(3) of Pub. L. 101-239, set out as a note
    under section 411 of Title 26, Internal Revenue Code.
      Amendment by section 7881(m)(2)(D) of Pub. L. 101-239 effective,
    except as otherwise provided, as if included in the provision of
    the Pension Protection Act, Pub. L. 100-203, Secs. 9302-9346, to
    which such amendment relates, see section 7882 of Pub. L. 101-239,
    set out as a note under section 401 of Title 26.
      Section 7891(f) of Pub. L. 101-239 provided that: "Except as
    otherwise provided in this section, any amendment made by this
    section [amending this section, sections 1003, 1025, 1051 to 1056,
    1060, 1061, 1081 to 1084, 1085a, 1101, 1103, 1107, 1108, 1132,
    1134, 1137, 1161, 1166, 1167, 1201 to 1203, 1222, 1301, 1302, 1307,
    1309, 1321 to 1322a, 1342 to 1345, 1362, 1368, 1384, 1385, 1390,
    1391, 1393, 1403, 1421, 1423, 1425, and 1453 of this title, and
    section 4980B of Title 26] shall take effect as if included in the
    provision of the Reform Act [probably means Tax Reform Act of 1986,
    Pub. L. 99-514] to which such amendment relates."
      Section 7893(h) of Pub. L. 101-239 provided that: "Any amendment
    made by this section [amending this section and sections 1322a,
    1341, 1342, 1347, 1366, 1367, and 1398 of this title] shall take
    effect as if included in the provision of the Single-Employer
    Pension Plan Amendments Act of 1986 [Pub. L. 99-272, title XI] to
    which such amendment relates."
      Section 7894(a)(1)(B) of Pub. L. 101-239 provided that: "The
    amendments made by subparagraph (A) [amending this section] shall
    take effect as if included in section 407 of the Multiemployer
    Pension Plan Amendments Act of 1980 [Pub. L. 96-364]."
      Section 7894(a)(2)(B) of Pub. L. 101-239 provided that: "The
    amendment made by this paragraph [amending this section] shall take
    effect as if included in section 136 of Public Law 100-202."
      Section 7894(i) of Pub. L. 101-239 provided that: "Except as
    otherwise provided in this section, any amendment made by this
    section [amending this section and sections 1021, 1024 to 1026,
    1028, 1031, 1051 to 1056, 1060, 1061, 1081, 1082, 1084, 1086, 1103,
    1107, 1108, 1113, 1114, 1132, 1144, 1321 to 1322a, 1344, 1368, and
    1461 of this title] shall take effect as if originally included in
    the provision of the Employee Retirement Income Security Act of
    1974 [Pub. L. 93-406] to which such amendment relates."

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Section 136(b) of Pub. L. 100-202 provided that: "The amendment
    made by this section [amending this section] shall apply to years
    beginning after the date of the enactment of this joint resolution
    [Dec. 22, 1987]."

                     EFFECTIVE DATE OF 1986 AMENDMENTS                 
      Amendment by section 1879(u)(3) of Pub. L. 99-514 effective as if
    such provisions were included in the enactment of the Single-
    Employer Pension Plan Amendments Act of 1986 [Pub. L. 99-272], see
    section 1879(u)(4)(A) of Pub. L. 99-514, set out as a note under
    section 1054 of this title.
      Amendment by Pub. L. 99-509 applicable only with respect to plan
    years beginning on or after Jan. 1, 1988, and only with respect to
    service performed on or after such date, see section 9204 of Pub.
    L. 99-509, set out as an Effective and Termination Dates of 1986
    Amendments note under section 623 of this title.
      Amendment by Pub. L. 99-272 effective Jan. 1, 1986, with certain
    exceptions, see section 11019 of Pub. L. 99-272, set out as a note
    under section 1341 of this title.

                     EFFECTIVE DATE OF 1983 AMENDMENT                 
      Section 302(c) of Pub. L. 97-473 provided that: "The amendments
    made by this section [amending this section and section 1144 of
    this title] shall take effect on the date of the enactment of this
    Act [Jan. 14, 1983]."

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment of pars. (2), (14), and (37), by Pub. L. 96-364
    effective Sept. 26, 1980, except as specifically provided, see
    section 1461(e) of this title.
      Amendment of par. (33) by Pub. L. 96-364 effective Jan. 1, 1974,
    see section 407(c) of Pub. L. 96-364, set out as a note under
    section 414 of Title 26, Internal Revenue Code.

                                REGULATIONS                            
      Secretary of Labor, Secretary of the Treasury, and Equal
    Employment Opportunity Commission each to issue before Feb. 1,
    1988, final regulations to carry out amendments made by Pub. L. 99-
    509, see section 9204 of Pub. L. 99-509, set out as an Effective
    and Termination Dates of 1986 Amendment note under section 623 of
    this title.

              AVAILABILITY OF DOCUMENTS VIA FILING DEPOSITORY          
      Section 1(b) of Pub. L. 105-72 provided that: "A fiduciary shall
    be treated as meeting the requirements of section 3(38)(B)(ii) of
    the Employee Retirement Income Security Act of 1974 [29 U.S.C.
    1002(38)(B)(ii)] (as amended by subsection (a)) relating to
    provision to the Secretary of Labor of a copy of the form referred
    to therein, if a copy of such form (or substantially similar
    information) is available to the Secretary of Labor from a
    centralized electronic or other record-keeping database."

            PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989        
      For provisions directing that if any amendments made by subtitle
    A or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or
    title XVIII [Secs. 1800-1899A] of Pub. L. 99-514 require an
    amendment to any plan, such plan amendment shall not be required to
    be made before the first plan year beginning on or after Jan. 1,
    1989, see section 1140 of Pub. L. 99-514, as amended, set out as a
    note under section 401 of Title 26, Internal Revenue Code.
      For provisions directing that if any amendments made by Pub. L.
    99-509 require an amendment to any plan, such plan amendment shall
    not be required to be made before the first plan year beginning on
    or after Jan. 1, 1989, see section 9204 of Pub. L. 99-509, set out
    as an Effective and Termination Dates of 1986 Amendment note under
    section 623 of this title.

-FOOTNOTE-               

    (!1) So in original. The period probably should be a comma.

    (!2) See References in Text note below.

               

    (!3) So in original. Probably should be followed by a period.

    (!4) So in original. Section 1021(b) of this title does not
         contain a par. (4).

    (!5) So in original. Two pars. (41) have been enacted.

    (!6) So in original. Probably should be "part 4 of subtitle B,".


-End-



-CITE-
    29 USC Sec. 1003                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle A - General Provisions

-HEAD-
    Sec. 1003. Coverage

-STATUTE-
    (a) In general
      Except as provided in subsection (b) or (c) of this section and
    in sections 1051, 1081, and 1101 of this title, this subchapter
    shall apply to any employee benefit plan if it is established or
    maintained - 
        (1) by any employer engaged in commerce or in any industry or
      activity affecting commerce; or
        (2) by any employee organization or organizations representing
      employees engaged in commerce or in any industry or activity
      affecting commerce; or
        (3) by both.
    (b) Exceptions for certain plans
      The provisions of this subchapter shall not apply to any employee
    benefit plan if - 
        (1) such plan is a governmental plan (as defined in section
      1002(32) of this title);
        (2) such plan is a church plan (as defined in section 1002(33)
      of this title) with respect to which no election has been made
      under section 410(d) of title 26;
        (3) such plan is maintained solely for the purpose of complying
      with applicable workmen's compensation laws or unemployment
      compensation or disability insurance laws;
        (4) such plan is maintained outside of the United States
      primarily for the benefit of persons substantially all of whom
      are nonresident aliens; or
        (5) such plan is an excess benefit plan (as defined in section
      1002(36) of this title) and is unfunded.

    The provisions of part 7 of subtitle B of this subchapter shall not
    apply to a health insurance issuer (as defined in section
    1191b(b)(2) of this title) solely by reason of health insurance
    coverage (as defined in section 1191b(b)(1) of this title) provided
    by such issuer in connection with a group health plan (as defined
    in section 1191b(a)(1) of this title) if the provisions of this
    subchapter do not apply to such group health plan.
    (c) Voluntary employee contributions to accounts and annuities
      If a pension plan allows an employee to elect to make voluntary
    employee contributions to accounts and annuities as provided in
    section 408(q) of title 26, such accounts and annuities (and
    contributions thereto) shall not be treated as part of such plan
    (or as a separate pension plan) for purposes of any provision of
    this subchapter other than section 1103(c), 1104, or 1105 of this
    title (relating to exclusive benefit, and fiduciary and co-
    fiduciary responsibilities) and part 5 of subtitle B of this
    subchapter (!1) (relating to administration and enforcement). Such
    provisions shall apply to such accounts and annuities in a manner
    similar to their application to a simplified employee pension under
    section 408(k) of title 26.


-SOURCE-
    (Pub. L. 93-406, title I, Sec. 4, Sept. 2, 1974, 88 Stat. 839; Pub.
    L. 101-239, title VII, Sec. 7891(a)(1), Dec. 19, 1989, 103 Stat.
    2445; Pub. L. 104-191, title I, Sec. 101(d), Aug. 21, 1996, 110
    Stat. 1952; Pub. L. 104-204, title VI, Sec. 603(b)(3)(A), Sept. 26,
    1996, 110 Stat. 2938; Pub. L. 107-16, title VI, Sec. 602(b), June
    7, 2001, 115 Stat. 96; Pub. L. 107-147, title IV, Sec. 411(i)(2),
    Mar. 9, 2002, 116 Stat. 47.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Part 5 of subtitle B of this subchapter, referred to in subsec.
    (c), was in the original a reference to "part 5" and was translated
    as meaning part 5 of subtitle B of title I of Pub. L. 93-406, to
    reflect the probable intent of Congress.


-MISC1-
                                AMENDMENTS                            
      2002 - Subsec. (c). Pub. L. 107-147 inserted "and part 5 of
    subtitle B of this subchapter (relating to administration and
    enforcement)" after "co-fiduciary responsibilities)" and "Such
    provisions shall apply to such accounts and annuities in a manner
    similar to their application to a simplified employee pension under
    section 408(k) of title 26." at end.
      2001 - Subsec. (a). Pub. L. 107-16, Sec. 602(b)(2), inserted "or
    (c)" after "subsection (b)" in introductory provisions.
      Subsec. (c). Pub. L. 107-16, Sec. 602(b)(1), added subsec. (c).
      1996 - Subsec. (b). Pub. L. 104-204, in concluding provisions,
    made technical amendment to references in original act which appear
    in text as references to section 1191b of this title.
      Pub. L. 104-191 inserted at end "The provisions of part 7 of
    subtitle B of this subchapter shall not apply to a health insurance
    issuer (as defined in section 1191b(b)(2) of this title) solely by
    reason of health insurance coverage (as defined in section
    1191b(b)(1) of this title) provided by such issuer in connection
    with a group health plan (as defined in section 1191b(a)(1) of this
    title) if the provisions of this subchapter do not apply to such
    group health plan."
      1989 - Subsec. (b)(2). Pub. L. 101-239 substituted "Internal
    Revenue Code of 1986" for "Internal Revenue Code of 1954", which
    for purposes of codification was translated as "title 26" thus
    requiring no change in text.

                     EFFECTIVE DATE OF 2002 AMENDMENT                 
      Amendment by Pub. L. 107-147 effective as if included in the
    provisions of the Economic Growth and Tax Relief Reconciliation Act
    of 2001, Pub. L. 107-16, to which such amendment relates, see
    section 411(x) of Pub. L. 107-147, set out as a note under section
    25B of Title 26, Internal Revenue Code.

                     EFFECTIVE DATE OF 2001 AMENDMENT                 
      Amendment by Pub. L. 107-16 applicable to plan years beginning
    after Dec. 31, 2002, see section 602(c) of Pub. L. 107-16, set out
    as a note under section 408 of Title 26, Internal Revenue Code.

                     EFFECTIVE DATE OF 1996 AMENDMENTS                 
      Section 603(c) of Pub. L. 104-204 provided that: "The amendments
    made by this section [enacting section 1185 of this title and
    amending this section and sections 1021, 1022, 1024, 1132, 1136,
    1144, 1181, 1191, and 1191a of this title] shall apply with respect
    to group health plans for plan years beginning on or after January
    1, 1998."
      Amendment by Pub. L. 104-191 applicable with respect to group
    health plans for plan years beginning after June 30, 1997, except
    as otherwise provided, see section 101(g) of Pub. L. 104-191, set
    out as an Effective Date note under section 1181 of this title.

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by Pub. L. 101-239 effective, except as otherwise
    provided, as if included in the provision of the Tax Reform Act of
    1986, Pub. L. 99-514, to which such amendment relates, see section
    7891(f) of Pub. L. 101-239, set out as a note under section 1002 of
    this title.

-FOOTNOTE-
    (!1) See References in Text note below.


-End-


-CITE-
    29 USC Subtitle B - Regulatory Provisions                   01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions

-HEAD-
                    SUBTITLE B - REGULATORY PROVISIONS                

-End-


-CITE-
    29 USC part 1 - reporting and disclosure                    01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 1 - reporting and disclosure

-HEAD-
                     PART 1 - REPORTING AND DISCLOSURE                 

-End-



-CITE-
    29 USC Sec. 1021                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 1 - reporting and disclosure

-HEAD-
    Sec. 1021. Duty of disclosure and reporting

-STATUTE-
    (a) Summary plan description and information to be furnished to
      participants and beneficiaries
      The administrator of each employee benefit plan shall cause to be
    furnished in accordance with section 1024(b) of this title to each
    participant covered under the plan and to each beneficiary who is
    receiving benefits under the plan - 
        (1) a summary plan description described in section 1022(a)(1)
      (!1) of this title; and

        (2) the information described in sections 1024(b)(3) and
      1025(a) and (c) of this title.
    (b) Reports to be filed with Secretary of Labor
      The administrator shall, in accordance with section 1024(a) of
    this title, file with the Secretary - 
        (1) the annual report containing the information required by
      section 1023 of this title; and
        (2) terminal and supplementary reports as required by
      subsection (c) of this section.
    (c) Terminal and supplementary reports
      (1) Each administrator of an employee pension benefit plan which
    is winding up its affairs (without regard to the number of
    participants remaining in the plan) shall, in accordance with
    regulations prescribed by the Secretary, file such terminal reports
    as the Secretary may consider necessary. A copy of such report
    shall also be filed with the Pension Benefit Guaranty Corporation.
      (2) The Secretary may require terminal reports to be filed with
    regard to any employee welfare benefit plan which is winding up its
    affairs in accordance with regulations promulgated by the
    Secretary.
      (3) The Secretary may require that a plan described in paragraph
    (1) or (2) file a supplementary or terminal report with the annual
    report in the year such plan is terminated and that a copy of such
    supplementary or terminal report in the case of a plan described in
    paragraph (1) be also filed with the Pension Benefit Guaranty
    Corporation.
    (d) Notice of failure to meet minimum funding standards
      (1) In general
        If an employer maintaining a plan other than a multiemployer
      plan fails to make a required installment or other payment
      required to meet the minimum funding standard under section 1082
      of this title to a plan before the 60th day following the due
      date for such installment or other payment, the employer shall
      notify each participant and beneficiary (including an alternate
      payee as defined in section 1056(d)(3)(K) of this title) of such
      plan of such failure. Such notice shall be made at such time and
      in such manner as the Secretary may prescribe.
      (2) Subsection not to apply if waiver pending
        This subsection shall not apply to any failure if the employer
      has filed a waiver request under section 1083 of this title with
      respect to the plan year to which the required installment
      relates, except that if the waiver request is denied, notice
      under paragraph (1) shall be provided within 60 days after the
      date of such denial.
      (3) Definitions
        For purposes of this subsection, the terms "required
      installment" and "due date" have the same meanings given such
      terms by section 1082(e) of this title.
    (e) Notice of transfer of excess pension assets to health benefits
      accounts
      (1) Notice to participants
        Not later than 60 days before the date of a qualified transfer
      by an employee pension benefit plan of excess pension assets to a
      health benefits account, the administrator of the plan shall
      notify (in such manner as the Secretary may prescribe) each
      participant and beneficiary under the plan of such transfer. Such
      notice shall include information with respect to the amount of
      excess pension assets, the portion to be transferred, the amount
      of health benefits liabilities expected to be provided with the
      assets transferred, and the amount of pension benefits of the
      participant which will be nonforfeitable immediately after the
      transfer.
      (2) Notice to Secretaries, administrator, and employee
        organizations
        (A) In general
          Not later than 60 days before the date of any qualified
        transfer by an employee pension benefit plan of excess pension
        assets to a health benefits account, the employer maintaining
        the plan from which the transfer is made shall provide the
        Secretary, the Secretary of the Treasury, the administrator,
        and each employee organization representing participants in the
        plan a written notice of such transfer. A copy of any such
        notice shall be available for inspection in the principal
        office of the administrator.
        (B) Information relating to transfer
          Such notice shall identify the plan from which the transfer
        is made, the amount of the transfer, a detailed accounting of
        assets projected to be held by the plan immediately before and
        immediately after the transfer, and the current liabilities
        under the plan at the time of the transfer.
        (C) Authority for additional reporting requirements
          The Secretary may prescribe such additional reporting
        requirements as may be necessary to carry out the purposes of
        this section.
      (3) Definitions
        For purposes of paragraph (1), any term used in such paragraph
      which is also used in section 420 of title 26 (as in effect on
      October 22, 2004) shall have the same meaning as when used in
      such section.
    (f) Multiemployer defined benefit plan funding notices
      (1) In general
        The administrator of a defined benefit plan which is a
      multiemployer plan shall for each plan year provide a plan
      funding notice to each plan participant and beneficiary, to each
      labor organization representing such participants or
      beneficiaries, to each employer that has an obligation to
      contribute under the plan, and to the Pension Benefit Guaranty
      Corporation.
      (2) Information contained in notices
        (A) Identifying information
          Each notice required under paragraph (1) shall contain
        identifying information, including the name of the plan, the
        address and phone number of the plan administrator and the
        plan's principal administrative officer, each plan sponsor's
        employer identification number, and the plan number of the
        plan.
        (B) Specific information
          A plan funding notice under paragraph (1) shall include - 
            (i) a statement as to whether the plan's funded current
          liability percentage (as defined in section 1082(d)(8)(B) of
          this title) for the plan year to which the notice relates is
          at least 100 percent (and, if not, the actual percentage);
            (ii) a statement of the value of the plan's assets, the
          amount of benefit payments, and the ratio of the assets to
          the payments for the plan year to which the notice relates;
            (iii) a summary of the rules governing insolvent
          multiemployer plans, including the limitations on benefit
          payments and any potential benefit reductions and suspensions
          (and the potential effects of such limitations, reductions,
          and suspensions on the plan); and
            (iv) a general description of the benefits under the plan
          which are eligible to be guaranteed by the Pension Benefit
          Guaranty Corporation, along with an explanation of the
          limitations on the guarantee and the circumstances under
          which such limitations apply.
        (C) Other information
          Each notice under paragraph (1) shall include any additional
        information which the plan administrator elects to include to
        the extent not inconsistent with regulations prescribed by the
        Secretary.
      (3) Time for providing notice
        Any notice under paragraph (1) shall be provided no later than
      two months after the deadline (including extensions) for filing
      the annual report for the plan year to which the notice relates.
      (4) Form and manner
        Any notice under paragraph (1) - 
          (A) shall be provided in a form and manner prescribed in
        regulations of the Secretary,
          (B) shall be written in a manner so as to be understood by
        the average plan participant, and
          (C) may be provided in written, electronic, or other
        appropriate form to the extent such form is reasonably
        accessible to persons to whom the notice is required to be
        provided.
    (g) Reporting by certain arrangements
      The Secretary may, by regulation, require multiple employer
    welfare arrangements providing benefits consisting of medical care
    (within the meaning of section 1191b(a)(2) of this title) which are
    not group health plans to report, not more frequently than
    annually, in such form and such manner as the Secretary may require
    for the purpose of determining the extent to which the requirements
    of part 7 are being carried out in connection with such benefits.
    (h) Simple retirement accounts
      (1) No employer reports
        Except as provided in this subsection, no report shall be
      required under this section by an employer maintaining a
      qualified salary reduction arrangement under section 408(p) of
      title 26.
      (2) Summary description
        The trustee of any simple retirement account established
      pursuant to a qualified salary reduction arrangement under
      section 408(p) of title 26 shall provide to the employer
      maintaining the arrangement each year a description containing
      the following information:
          (A) The name and address of the employer and the trustee.
          (B) The requirements for eligibility for participation.
          (C) The benefits provided with respect to the arrangement.
          (D) The time and method of making elections with respect to
        the arrangement.
          (E) The procedures for, and effects of, withdrawals
        (including rollovers) from the arrangement.
      (3) Employee notification
        The employer shall notify each employee immediately before the
      period for which an election described in section 408(p)(5)(C) of
      title 26 may be made of the employee's opportunity to make such
      election. Such notice shall include a copy of the description
      described in paragraph (2).
    (i) Notice of blackout periods to participant or beneficiary under
      individual account plan
      (1) Duties of plan administrator
        In advance of the commencement of any blackout period with
      respect to an individual account plan, the plan administrator
      shall notify the plan participants and beneficiaries who are
      affected by such action in accordance with this subsection.
      (2) Notice requirements
        (A) In general
          The notices described in paragraph (1) shall be written in a
        manner calculated to be understood by the average plan
        participant and shall include - 
            (i) the reasons for the blackout period,
            (ii) an identification of the investments and other rights
          affected,
            (iii) the expected beginning date and length of the
          blackout period,
            (iv) in the case of investments affected, a statement that
          the participant or beneficiary should evaluate the
          appropriateness of their current investment decisions in
          light of their inability to direct or diversify assets
          credited to their accounts during the blackout period, and
            (v) such other matters as the Secretary may require by
          regulation.
        (B) Notice to participants and beneficiaries
          Except as otherwise provided in this subsection, notices
        described in paragraph (1) shall be furnished to all
        participants and beneficiaries under the plan to whom the
        blackout period applies at least 30 days in advance of the
        blackout period.
        (C) Exception to 30-day notice requirement
          In any case in which - 
            (i) a deferral of the blackout period would violate the
          requirements of subparagraph (A) or (B) of section 1104(a)(1)
          of this title, and a fiduciary of the plan reasonably so
          determines in writing, or
            (ii) the inability to provide the 30-day advance notice is
          due to events that were unforeseeable or circumstances beyond
          the reasonable control of the plan administrator, and a
          fiduciary of the plan reasonably so determines in writing,

        subparagraph (B) shall not apply, and the notice shall be
        furnished to all participants and beneficiaries under the plan
        to whom the blackout period applies as soon as reasonably
        possible under the circumstances unless such a notice in
        advance of the termination of the blackout period is
        impracticable.
        (D) Written notice
          The notice required to be provided under this subsection
        shall be in writing, except that such notice may be in
        electronic or other form to the extent that such form is
        reasonably accessible to the recipient.
        (E) Notice to issuers of employer securities subject to
          blackout period
          In the case of any blackout period in connection with an
        individual account plan, the plan administrator shall provide
        timely notice of such blackout period to the issuer of any
        employer securities subject to such blackout period.
      (3) Exception for blackout periods with limited applicability
        In any case in which the blackout period applies only to 1 or
      more participants or beneficiaries in connection with a merger,
      acquisition, divestiture, or similar transaction involving the
      plan or plan sponsor and occurs solely in connection with
      becoming or ceasing to be a participant or beneficiary under the
      plan by reason of such merger, acquisition, divestiture, or
      transaction, the requirement of this subsection that the notice
      be provided to all participants and beneficiaries shall be
      treated as met if the notice required under paragraph (1) is
      provided to such participants or beneficiaries to whom the
      blackout period applies as soon as reasonably practicable.
      (4) Changes in length of blackout period
        If, following the furnishing of the notice pursuant to this
      subsection, there is a change in the beginning date or length of
      the blackout period (specified in such notice pursuant to
      paragraph (2)(A)(iii)), the administrator shall provide affected
      participants and beneficiaries notice of the change as soon as
      reasonably practicable. In relation to the extended blackout
      period, such notice shall meet the requirements of paragraph
      (2)(D) and shall specify any material change in the matters
      referred to in clauses (i) through (v) of paragraph (2)(A).
      (5) Regulatory exceptions
        The Secretary may provide by regulation for additional
      exceptions to the requirements of this subsection which the
      Secretary determines are in the interests of participants and
      beneficiaries.
      (6) Guidance and model notices
        The Secretary shall issue guidance and model notices which meet
      the requirements of this subsection.
      (7) Blackout period
        For purposes of this subsection - 
        (A) In general
          The term "blackout period" means, in connection with an
        individual account plan, any period for which any ability of
        participants or beneficiaries under the plan, which is
        otherwise available under the terms of such plan, to direct or
        diversify assets credited to their accounts, to obtain loans
        from the plan, or to obtain distributions from the plan is
        temporarily suspended, limited, or restricted, if such
        suspension, limitation, or restriction is for any period of
        more than 3 consecutive business days.
        (B) Exclusions
          The term "blackout period" does not include a suspension,
        limitation, or restriction - 
            (i) which occurs by reason of the application of the
          securities laws (as defined in section 78c(a)(47) of title
          15),
            (ii) which is a change to the plan which provides for a
          regularly scheduled suspension, limitation, or restriction
          which is disclosed to participants or beneficiaries through
          any summary of material modifications, any materials
          describing specific investment alternatives under the plan,
          or any changes thereto, or
            (iii) which applies only to 1 or more individuals, each of
          whom is the participant, an alternate payee (as defined in
          section 1056(d)(3)(K) of this title), or any other
          beneficiary pursuant to a qualified domestic relations order
          (as defined in section 1056(d)(3)(B)(i) of this title).
      (8) Individual account plan
        (A) In general
          For purposes of this subsection, the term "individual account
        plan" shall have the meaning provided such term in section
        1002(34) of this title, except that such term shall not include
        a one-participant retirement plan.
        (B) One-participant retirement plan
          For purposes of subparagraph (A), the term "one-participant
        retirement plan" means a retirement plan that - 
            (i) on the first day of the plan year - 
              (I) covered only one individual (or the individual and
            the individual's spouse) and the individual (or the
            individual and the individual's spouse) owned 100 percent
            of the plan sponsor (whether or not incorporated), or
              (II) covered only one or more partners (or partners and
            their spouses) in the plan sponsor, and

            (ii) does not cover a business that leases employees.
    (j) Cross reference
          For regulations relating to coordination of reports to the
        Secretaries of Labor and the Treasury, see section 1204 of this
        title.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 101, Sept. 2, 1974, 88 Stat. 840;
    Pub. L. 100-203, title IX, Sec. 9304(d), Dec. 22, 1987, 101 Stat.
    1330-348; Pub. L. 101-239, title VII, Secs. 7881(b)(5)(A),
    7894(b)(2), Dec. 19, 1989, 103 Stat. 2438, 2448; Pub. L. 101-508,
    title XII, Sec. 12012(d)(1), Nov. 5, 1990, 104 Stat. 1388-572; Pub.
    L. 103-66, title IV, Sec. 4301(b)(1), Aug. 10, 1993, 107 Stat. 375;
    Pub. L. 103-465, title VII, Sec. 731(c)(4)(A), Dec. 8, 1994, 108
    Stat. 5004; Pub. L. 104-188, title I, Sec. 1421(d)(1), Aug. 20,
    1996, 110 Stat. 1799; Pub. L. 104-191, title I, Sec. 101(e)(1),
    Aug. 21, 1996, 110 Stat. 1952; Pub. L. 104-204, title VI, Sec.
    603(b)(3)(B), Sept. 26, 1996, 110 Stat. 2938; Pub. L. 105-34, title
    XV, Sec. 1503(a), Aug. 5, 1997, 111 Stat. 1061; Pub. L. 105-200,
    title IV, Sec. 401(h)(1)(A), July 16, 1998, 112 Stat. 668; Pub. L.
    106-170, title V, Sec. 535(a)(2)(A), Dec. 17, 1999, 113 Stat. 1934;
    Pub. L. 107-204, title III, Sec. 306(b)(1), July 30, 2002, 116
    Stat. 780; Pub. L. 108-218, title I, Sec. 103(a), title II, Sec.
    204(b)(1), Apr. 10, 2004, 118 Stat. 602, 609; Pub. L. 108-357,
    title VII, Sec. 709(a)(1), Oct. 22, 2004, 118 Stat. 1551; Pub. L.
    109-280, title I, Secs. 103(b)(1), 107(a)(1), (11), title V, Secs.
    501(a), 502(a)(1), (b)(1), 503(c)(2), 507(a), 509(a), Aug. 17,
    2006, 120 Stat. 815, 818, 819, 936, 939, 940, 944, 948, 952.)


-STATAMEND-
                           AMENDMENT OF SECTION                       
      Pub. L. 109-280, title V, Sec. 503(c)(2), (f), 120 Stat. 944,
    945, provided that, applicable to plan years beginning after Dec.
    31, 2007, subsection (a)(2) of this section is amended by inserting
    "subsection (f) and" after "described in".
      Pub. L. 109-280, title I, Sec. 107(a)(1), (11), (e), Aug. 17,
    2006, 120 Stat. 818-820, provided that, applicable to plan years
    beginning after 2007, subsection (d)(3) of this section is amended
    by substituting "1083(j)" for "1082(e)" and subsection (e)(3) of
    this section is amended by substituting "August 17, 2006" for
    "October 22, 2004".
      Pub. L. 109-280, title V, Sec. 501(a), (d), Aug. 17, 2006, 120
    Stat. 936, 939, provided that, applicable to plan years beginning
    after Dec. 31, 2007, with transition rule, subsection (f) of this
    section is amended to read as follows:
    (f) Defined benefit plan funding notices
      (1) In general
        The administrator of a defined benefit plan to which subchapter
      III applies shall for each plan year provide a plan funding
      notice to the Pension Benefit Guaranty Corporation, to each plan
      participant and beneficiary, to each labor organization
      representing such participants or beneficiaries, and, in the case
      of a multiemployer plan, to each employer that has an obligation
      to contribute to the plan.
      (2) Information contained in notices
        (A) Identifying information
          Each notice required under paragraph (1) shall contain
        identifying information, including the name of the plan, the
        address and phone number of the plan administrator and the
        plan's principal administrative officer, each plan sponsor's
        employer identification number, and the plan number of the
        plan.
        (B) Specific information
          A plan funding notice under paragraph (1) shall include - 
            (i)(I) in the case of a single-employer plan, a statement
          as to whether the plan's funding target attainment percentage
          (as defined in section 1083(d)(2) of this title) for the plan
          year to which the notice relates, and for the 2 preceding
          plan years, is at least 100 percent (and, if not, the actual
          percentages), or
            (II) in the case of a multiemployer plan, a statement as to
          whether the plan's funded percentage (as defined in section
          1085(i) of this title) for the plan year to which the notice
          relates, and for the 2 preceding plan years, is at least 100
          percent (and, if not, the actual percentages),
            (ii)(I) in the case of a single-employer plan, a statement
          of - 
              (aa) the total assets (separately stating the prefunding
            balance and the funding standard carryover balance) and
            liabilities of the plan, determined in the same manner as
            under section 1083 of this title, for the plan year for
            which the latest annual report filed under section 1024(a)
            of this title was filed and for the 2 preceding plan years,
            as reported in the annual report for each such plan year,
            and
              (bb) the value of the plan's assets and liabilities for
            the plan year to which the notice relates as of the last
            day of the plan year to which the notice relates determined
            using the asset valuation under subclause (II) of section
            1306(a)(3)(E)(iii) of this title and the interest rate
            under section 1306(a)(3)(E)(iv) of this title, and

            (II) in the case of a multiemployer plan, a statement of
          the value of the plan's assets and liabilities for the plan
          year to which the notice relates as the last day of such plan
          year and the preceding 2 plan years,
            (iii) a statement of the number of participants who are - 
              (I) retired or separated from service and are receiving
            benefits,
              (II) retired or separated participants entitled to future
            benefits, and
              (III) active participants under the plan,

            (iv) a statement setting forth the funding policy of the
          plan and the asset allocation of investments under the plan
          (expressed as percentages of total assets) as of the end of
          the plan year to which the notice relates,
            (v) in the case of a multiemployer plan, whether the plan
          was in critical or endangered status under section 1085 of
          this title for such plan year and, if so - 
              (I) a statement describing how a person may obtain a copy
            of the plan's funding improvement or rehabilitation plan,
            as appropriate, adopted under section 1085 of this title
            and the actuarial and financial data that demonstrate any
            action taken by the plan toward fiscal improvement, and
              (II) a summary of any funding improvement plan,
            rehabilitation plan, or modification thereof adopted under
            section 1085 of this title during the plan year to which
            the notice relates,

            (vi) in the case of any plan amendment, scheduled benefit
          increase or reduction, or other known event taking effect in
          the current plan year and having a material effect on plan
          liabilities or assets for the year (as defined in regulations
          by the Secretary), an explanation of the amendment, schedule
          increase or reduction, or event, and a projection to the end
          of such plan year of the effect of the amendment, scheduled
          increase or reduction, or event on plan liabilities,
            (vii)(I) in the case of a single-employer plan, a summary
          of the rules governing termination of single-employer plans
          under subtitle C of subchapter III, or
            (II) in the case of a multiemployer plan, a summary of the
          rules governing reorganization or insolvency, including the
          limitations on benefit payments,
            (viii) a general description of the benefits under the plan
          which are eligible to be guaranteed by the Pension Benefit
          Guaranty Corporation, along with an explanation of the
          limitations on the guarantee and the circumstances under
          which such limitations apply,
            (ix) a statement that a person may obtain a copy of the
          annual report of the plan filed under section 1024(a) of this
          title upon request, through the Internet website of the
          Department of Labor, or through an Intranet website
          maintained by the applicable plan sponsor (or plan
          administrator on behalf of the plan sponsor), and
            (x) if applicable, a statement that each contributing
          sponsor, and each member of the contributing sponsor's
          controlled group, of the single-employer plan was required to
          provide the information under section 1310 of this title for
          the plan year to which the notice relates.
        (C) Other information
          Each notice under paragraph (1) shall include - 
            (i) in the case of a multiemployer plan, a statement that
          the plan administrator shall provide, upon written request,
          to any labor organization representing plan participants and
          beneficiaries and any employer that has an obligation to
          contribute to the plan, a copy of the annual report filed
          with the Secretary under section 1024(a) of this title, and
            (ii) any additional information which the plan
          administrator elects to include to the extent not
          inconsistent with regulations prescribed by the Secretary.
      (3) Time for providing notice
        (A) In general
          Any notice under paragraph (1) shall be provided not later
        than 120 days after the end of the plan year to which the
        notice relates.
        (B) Exception for small plans
          In the case of a small plan (as such term is used under
        section 1083(g)(2)(B) of this title) any notice under paragraph
        (1) shall be provided upon filing of the annual report under
        section 1024(a) of this title.
      (4) Form and manner
        Any notice under paragraph (1) - 
          (A) shall be provided in a form and manner prescribed in
        regulations of the Secretary,
          (B) shall be written in a manner so as to be understood by
        the average plan participant, and
          (C) may be provided in written, electronic, or other
        appropriate form to the extent such form is reasonably
        accessible to persons to whom the notice is required to be
        provided.
      Pub. L. 109-280, title I, Sec. 103(b)(1), (c), Aug. 17, 2006, 120
    Stat. 815, 816, provided that, applicable to plan years beginning
    after Dec. 31, 2007, with collective bargaining exception, this
    section is amended by redesignating subsection (j) as (k) and by
    adding a new subsection (j) to read as follows:
    (j) Notice of funding-based limitation on certain forms of
      distribution
      The plan administrator of a single-employer plan shall provide a
    written notice to plan participants and beneficiaries within 30
    days - 
        (1) after the plan has become subject to a restriction
      described in paragraph (1) or (3) of section 1056(g) of this
      title),
        (2) in the case of a plan to which section 1056(g)(4) of this
      title applies, after the valuation date for the plan year
      described in section 1056(g)(4)(B) of this title for which the
      plan's adjusted funding target attainment percentage for the plan
      year is less than 60 percent (or, if earlier, the date such
      percentage is deemed to be less than 60 percent under section
      1056(g)(7) of this title), and
        (3) at such other time as may be determined by the Secretary of
      the Treasury.

    The notice required to be provided under this subsection shall be
    in writing, except that such notice may be in electronic or other
    form to the extent that such form is reasonably accessible to the
    recipient.
      Pub. L. 109-280, title V, Sec. 502(a)(1), (b)(1), (d), Aug. 17,
    2006, 120 Stat. 939-941, provided that, applicable to plan years
    beginning after Dec. 31, 2007, this section is amended as follows:
      (1) by redesignating subsection (k) as (m) and by adding new
    subsections (k) and (l) to read as follows:
    (k) Multiemployer plan information made available on request
      (1) In general
        Each administrator of a multiemployer plan shall, upon written
      request, furnish to any plan participant or beneficiary, employee
      representative, or any employer that has an obligation to
      contribute to the plan - 
          (A) a copy of any periodic actuarial report (including any
        sensitivity testing) received by the plan for any plan year
        which has been in the plan's possession for at least 30 days,
          (B) a copy of any quarterly, semi-annual, or annual financial
        report prepared for the plan by any plan investment manager or
        advisor or other fiduciary which has been in the plan's
        possession for at least 30 days, and
          (C) a copy of any application filed with the Secretary of the
        Treasury requesting an extension under section 1084 of this
        title or section 431(d) of title 26 and the determination of
        such Secretary pursuant to such application.
      (2) Compliance
        Information required to be provided under paragraph (1) - 
          (A) shall be provided to the requesting participant,
        beneficiary, or employer within 30 days after the request in a
        form and manner prescribed in regulations of the Secretary,
          (B) may be provided in written, electronic, or other
        appropriate form to the extent such form is reasonably
        accessible to persons to whom the information is required to be
        provided, and
          (C) shall not - 
            (i) include any individually identifiable information
          regarding any plan participant, beneficiary, employee,
          fiduciary, or contributing employer, or
            (ii) reveal any proprietary information regarding the plan,
          any contributing employer, or entity providing services to
          the plan.
      (3) Limitations
        In no case shall a participant, beneficiary, or employer be
      entitled under this subsection to receive more than one copy of
      any report or application described in paragraph (1) during any
      one 12-month period. The administrator may make a reasonable
      charge to cover copying, mailing, and other costs of furnishing
      copies of information pursuant to paragraph (1). The Secretary
      may by regulations prescribe the maximum amount which will
      constitute a reasonable charge under the preceding sentence.
    (l) Notice of potential withdrawal liability
      (1) In general
        The plan sponsor or administrator of a multiemployer plan
      shall, upon written request, furnish to any employer who has an
      obligation to contribute to the plan a notice of - 
          (A) the estimated amount which would be the amount of such
        employer's withdrawal liability under part 1 of subtitle E of
        subchapter III if such employer withdrew on the last day of the
        plan year preceding the date of the request, and
          (B) an explanation of how such estimated liability amount was
        determined, including the actuarial assumptions and methods
        used to determine the value of the plan liabilities and assets,
        the data regarding employer contributions, unfunded vested
        benefits, annual changes in the plan's unfunded vested
        benefits, and the application of any relevant limitations on
        the estimated withdrawal liability.

      For purposes of subparagraph (B), the term "employer
      contribution" means, in connection with a participant, a
      contribution made by an employer as an employer of such
      participant.
      (2) Compliance
        Any notice required to be provided under paragraph (1) - 
          (A) shall be provided in a form and manner prescribed in
        regulations of the Secretary to the requesting employer within -
         
            (i) 180 days after the request, or
            (ii) subject to regulations of the Secretary, such longer
          time as may be necessary in the case of a plan that
          determines withdrawal liability based on any method described
          under paragraph (4) or (5) of section 1391(c) of this title;
          and

          (B) may be provided in written, electronic, or other
        appropriate form to the extent such form is reasonably
        accessible to employers to whom the information is required to
        be provided.
      (3) Limitations
        In no case shall an employer be entitled under this subsection
      to receive more than one notice described in paragraph (1) during
      any one 12-month period. The person required to provide such
      notice may make a reasonable charge to cover copying, mailing,
      and other costs of furnishing such notice pursuant to paragraph
      (1). The Secretary may by regulations prescribe the maximum
      amount which will constitute a reasonable charge under the
      preceding sentence.
      Pub. L. 109-280, title V, Sec. 507(a), (d), Aug. 17, 2006, 120
    Stat. 948, 949, provided that, applicable to plan years beginning
    after Dec. 31, 2006, with transition rule, this section is amended
    by redesignating subsection (m) as subsection (n) and by adding a
    new subsection (m) to read as follows:
    (m) Notice of right to divest
      Not later than 30 days before the first date on which an
    applicable individual of an applicable individual account plan is
    eligible to exercise the right under section 1054(j) of this title
    to direct the proceeds from the divestment of employer securities
    with respect to any type of contribution, the administrator shall
    provide to such individual a notice - 
        (1) setting forth such right under such section, and
        (2) describing the importance of diversifying the investment of
      retirement account assets.

    The notice required by this subsection shall be written in a manner
    calculated to be understood by the average plan participant and may
    be delivered in written, electronic, or other appropriate form to
    the extent that such form is reasonably accessible to the
    recipient.

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 1022(a)(1) of this title, referred to in subsec. (a)(1),
    was redesignated section 1022(a) of this title by Pub. L. 105-34,
    title XV, Sec. 1503(b)(1)(B), Aug. 5, 1997, 111 Stat. 1061.


-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (i)(8)(B). Pub. L. 109-280, Sec. 509(a), added cl.
    (i), redesignated cl. (v) as (ii), and struck out former cls. (i)
    to (iv) which read as follows:
      "(i) on the first day of the plan year - 
        "(I) covered only the employer (and the employer's spouse) and
      the employer owned the entire business (whether or not
      incorporated), or
        "(II) covered only one or more partners (and their spouses) in
      a business partnership (including partners in an S or C
      corporation (as defined in section 1361(a) of title 26)),
      "(ii) meets the minimum coverage requirements of section 410(b)
    of title 26 (as in effect on July 30, 2002) without being combined
    with any other plan of the business that covers the employees of
    the business,
      "(iii) does not provide benefits to anyone except the employer
    (and the employer's spouse) or the partners (and their spouses),
      "(iv) does not cover a business that is a member of an affiliated
    service group, a controlled group of corporations, or a group of
    businesses under common control, and".
      2004 - Subsec. (e)(3). Pub. L. 108-357 substituted "October 22,
    2004" for "April 10, 2004".
      Pub. L. 108-218, Sec. 204(b)(1), substituted "April 10, 2004" for
    "December 17, 1999".
      Subsec. (f). Pub. L. 108-218, Sec. 103(a), added subsec. (f).
      2002 - Subsecs. (h) to (j). Pub. L. 107-204 added subsec. (i) and
    redesignated subsec. (h) relating to cross reference as (j).
      1999 - Subsec. (e)(3). Pub. L. 106-170 substituted "December 17,
    1999" for "January 1, 1995".
      1998 - Subsec. (f). Pub. L. 105-200 struck out subsec. (f)
    relating to information necessary to comply with Medicare and
    Medicaid Coverage Data Bank requirements.
      1997 - Subsec. (b). Pub. L. 105-34 redesignated pars. (4) and (5)
    as (1) and (2), respectively, and struck out former pars. (1) to
    (3), which read as follows:
      "(1) the summary plan description described in section 1022(a)(1)
    of this title;
      "(2) a plan description containing the matter required in section
    1022(b) of this title;
      "(3) modifications and changes referred to in section 1022(a)(2)
    of this title;".
      1996 - Subsec. (g). Pub. L. 104-204 made technical amendment to
    reference in original act which appears in text as reference to
    section 1191b of this title.
      Pub. L. 104-191, Sec. 101(e)(1)(B), added subsec. (g). Former
    subsec. (g) redesignated (h).
      Pub. L. 104-188 added subsec. (g). Former subsec. (g)
    redesignated (h).
      Subsec. (h). Pub. L. 104-191, Sec. 101(e)(1)(A), redesignated
    subsec. (g), relating to simple retirement accounts, as (h).
      Pub. L. 104-188, Sec. 1421(d)(1), redesignated subsec. (g),
    relating to cross references, as (h).
      1994 - Subsec. (e)(3). Pub. L. 103-465 substituted "1995" for
    "1991".
      1993 - Subsecs. (f), (g). Pub. L. 103-66 added subsec. (f) and
    redesignated former subsec. (f) as (g).
      1990 - Subsecs. (e), (f). Pub. L. 101-508 added subsec. (e) and
    redesignated former subsec. (e) as (f).
      1989 - Subsec. (a)(2). Pub. L. 101-239, Sec. 7894(b)(2),
    substituted "sections" for "section".
      Subsec. (d)(1). Pub. L. 101-239, Sec. 7881(b)(5)(A), substituted
    "an employer maintaining a plan" for "an employer of a plan".
      1987 - Subsecs. (d), (e). Pub. L. 100-203 added subsec. (d) and
    redesignated former subsec. (d) as (e).

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Pub. L. 109-280, title I, Sec. 103(c), Aug. 17, 2006, 120 Stat.
    816, provided that:
      "(1) In general. - The amendments made by this section [amending
    this section and sections 1056 and 1132 of this title] shall apply
    to plan years beginning after December 31, 2007.
      "(2) Collective bargaining exception. - In the case of a plan
    maintained pursuant to 1 or more collective bargaining agreements
    between employee representatives and 1 or more employers ratified
    before January 1, 2008, the amendments made by this section shall
    not apply to plan years beginning before the earlier of - 
        "(A) the later of - 
          "(i) the date on which the last collective bargaining
        agreement relating to the plan terminates (determined without
        regard to any extension thereof agreed to after the date of the
        enactment of this Act [Aug. 17, 2006]), or
          "(ii) the first day of the first plan year to which the
        amendments made by this subsection [probably should be
        "section"] would (but for this subparagraph) apply, or
        "(B) January 1, 2010.
    For purposes of subparagraph (A)(i), any plan amendment made
    pursuant to a collective bargaining agreement relating to the plan
    which amends the plan solely to conform to any requirement added by
    this section shall not be treated as a termination of such
    collective bargaining agreement."
      Pub. L. 109-280, title I, Sec. 107(e), Aug. 17, 2006, 120 Stat.
    820, provided that: "The amendments made by this section [amending
    this section, sections 1023, 1053, 1054, 1056, 1103, 1108, 1301,
    1303, 1310, 1362, 1371, and 1423 of this title, and Reorganization
    Plan No. 4 of 1978, set out as a note under section 1001 of this
    title and in the Appendix to Title 5, Government Organization and
    Employees, and repealing section 1057 of this title] shall apply to
    plan years beginning after 2007."
      Pub. L. 109-280, title V, Sec. 501(d), Aug. 17, 2006, 120 Stat.
    939, provided that:
      "(1) In general. - The amendments made by this section [amending
    this section and repealing section 1311 of this title] shall apply
    to plan years beginning after December 31, 2007, except that the
    amendment made by subsection (b) [repealing section 1311 of this
    title] shall apply to plan years beginning after December 31, 2006.
      "(2) Transition rule. - Any requirement under section 101(f) of
    the Employee Retirement Income Security Act of 1974 [29 U.S.C.
    1021(f)] (as amended by this section) to report the funding target
    attainment percentage or funded percentage of a plan with respect
    to any plan year beginning before January 1, 2008, shall be treated
    as met if the plan reports - 
        "(A) in the case of a plan year beginning in 2006, the funded
      current liability percentage (as defined in section 302(d)(8) of
      such Act [29 U.S.C. 1082(d)(8)]) of the plan for such plan year,
      and
        "(B) in the case of a plan year beginning in 2007, the funding
      target attainment percentage or funded percentage as determined
      using such methods of estimation as the Secretary of the Treasury
      may provide."
      Amendment by section 502(a)(1), (b)(1) of Pub. L. 109-280
    applicable to plan years beginning after Dec. 31, 2007, see section
    502(d) of Pub. L. 109-280, set out as a note under section 4980F of
    Title 26, Internal Revenue Code.
      Pub. L. 109-280, title V, Sec. 503(f), Aug. 17, 2006, 120 Stat.
    945, provided that: "The amendments made by this section [amending
    this section and sections 1023 and 1024 of this title] shall apply
    to plan years beginning after December 31, 2007."
      Pub. L. 109-280, title V, Sec. 507(d), Aug. 17, 2006, 120 Stat.
    949, provided that:
      "(1) In general. - The amendments made by this section [amending
    this section and section 1132 of this title] shall apply to plan
    years beginning after December 31, 2006.
      "(2) Transition rule. - If notice under section 101(m) of the
    Employee Retirement Income Security Act of 1974 [29 U.S.C. 1021(m)]
    (as added by this section) would otherwise be required to be
    provided before the 90th day after the date of the enactment of
    this Act [Aug. 17, 2006], such notice shall not be required to be
    provided until such 90th day."
      Pub. L. 109-280, title V, Sec. 509(b), Aug. 17, 2006, 120 Stat.
    952, provided that: "The amendments made by this subsection
    [probably means this section, amending this section] shall take
    effect as if included in the provisions of section 306 of Public
    Law 107-204 (116 Stat. 745 et seq.)."

                     EFFECTIVE DATE OF 2004 AMENDMENT                 
      Pub. L. 108-218, title I, Sec. 103(d), Apr. 10, 2004, 118 Stat.
    604, provided that: "The amendments made by this section [amending
    this section and section 1132 of this title] shall apply to plan
    years beginning after December 31, 2004."

                     EFFECTIVE DATE OF 2002 AMENDMENT                 
      Amendment by Pub. L. 107-204 effective 180 days after July 30,
    2002, see section 7244(c) of Title 15, Commerce and Trade.

                     EFFECTIVE DATE OF 1999 AMENDMENT                 
      Amendment by Pub. L. 106-170 applicable to qualified transfers
    occurring after Dec. 17, 1999, see section 535(c)(1) of Pub. L. 106-
    170, set out as a note under section 420 of Title 26, Internal
    Revenue Code.

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Pub. L. 105-200, title IV, Sec. 401(h)(1)(B), July 16, 1998, 112
    Stat. 668, provided that: "The amendment made by subparagraph (A)
    [amending this section] shall take effect as if included in the
    enactment of the Act entitled 'An Act to repeal the Medicare and
    Medicaid Coverage Data Bank', approved October 2, 1996 (Public Law
    104-226; 110 Stat. 3033)."

                     EFFECTIVE DATE OF 1996 AMENDMENTS                 
      Amendment by Pub. L. 104-204 applicable with respect to group
    health plans for plan years beginning on or after Jan. 1, 1998, see
    section 603(c) of Pub. L. 104-204 set out as a note under section
    1003 of this title.
      Amendment of Pub. L. 104-191 applicable with respect to group
    health plans for plan years beginning after June 30, 1997, except
    as otherwise provided, see section 101(g) of Pub. L. 104-191, set
    out as an Effective Date note under section 1181 of this title.
      Amendment by Pub. L. 104-188 applicable to taxable years
    beginning after Dec. 31, 1996, see section 1421(e) of Pub. L. 104-
    188, set out as a note under section 72 of Title 26, Internal
    Revenue Code.

                     EFFECTIVE DATE OF 1993 AMENDMENT                 
      Section 4301(d) of Pub. L. 103-66 provided that:
      "(1) In general. - The amendments made by this section [enacting
    section 1169 of this title and amending this section and sections
    1132 and 1144 of this title] shall take effect on the date of the
    enactment of this Act [Aug. 10, 1993].
      "(2) Plan amendments not required until january 1, 1994. - Any
    amendment to a plan required to be made by an amendment made by
    this section shall not be required to be made before the first plan
    year beginning on or after January 1, 1994, if - 
        "(A) during the period after the date before the date of the
      enactment of this Act and before such first plan year, the plan
      is operated in accordance with the requirements of the amendments
      made by this section, and
        "(B) such plan amendment applies retroactively to the period
      after the date before the date of the enactment of this Act and
      before such first plan year.
    A plan shall not be treated as failing to be operated in accordance
    with the provisions of the plan merely because it operates in
    accordance with this paragraph."

                     EFFECTIVE DATE OF 1990 AMENDMENT                 
      Section 12012(e) of Pub. L. 101-508 provided that: "The
    amendments made by this section [amending this section and sections
    1082, 1103, 1108, and 1132 of this title] shall apply to qualified
    transfers under section 420 of the Internal Revenue Code of 1986
    [26 U.S.C. 420] made after the date of the enactment of this Act
    [Nov. 5, 1990]."

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by section 7881(b)(5)(A) of Pub. L. 101-239 effective,
    except as otherwise provided, as if included in the provision of
    the Pension Protection Act, Pub. L. 100-203, Secs. 9302-9346, to
    which such amendment relates, see section 7882 of Pub. L. 101-239,
    set out as a note under section 401 of Title 26, Internal Revenue
    Code.
      Amendment by section 7894(b)(2) of Pub. L. 101-239 effective,
    except as otherwise provided, as if originally included in the
    provision of the Employee Retirement Income Security Act of 1974,
    Pub. L. 93-406, to which such amendment relates, see section
    7894(i) of Pub. L. 101-239, set out as a note under section 1002 of
    this title.

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Section 9304(d) of Pub. L. 100-203, as amended by Pub. L. 101-
    239, title VII, Sec. 7881(b)(5)(C), Dec. 19, 1989, 103 Stat. 2438,
    provided that the amendment made by that section is effective with
    respect to plan years beginning after Dec. 31, 1987.

                                REGULATIONS                            
      Pub. L. 109-280, title V, Sec. 502(a)(3), Aug. 17, 2006, 120
    Stat. 940, provided that: "The Secretary shall prescribe
    regulations under section 101(k)(2) of the Employee Retirement
    Income Security Act of 1974 [29 U.S.C. 1021(k)(2)] (as added by
    paragraph (1)) not later than 1 year after the date of the
    enactment of this Act [Aug. 17, 2006]."
      Pub. L. 108-218, title I, Sec. 103(c), Apr. 10, 2004, 118 Stat.
    604, provided that: "The Secretary of Labor shall, not later than 1
    year after the date of the enactment of this Act [Apr. 10, 2004],
    issue regulations (including a model notice) necessary to implement
    the amendments made by this section [amending this section and
    section 1132 of this title]."
      Secretary authorized, effective Sept. 2, 1974, to promulgate
    regulations wherever provisions of this subchapter call for the
    promulgation of regulations, see section 1031 of this title.

    APPLICABILITY OF AMENDMENTS BY SUBTITLES A AND B OF TITLE I OF PUB.
                                L. 109-280
      For special rules on applicability of amendments by subtitles A
    (Secs. 101-107) and B (Secs. 111-116) of title I of Pub. L. 109-280
    to certain eligible cooperative plans, PBGC settlement plans, and
    eligible government contractor plans, see sections 104, 105, and
    106 of Pub. L. 109-280, set out as notes under section 401 of Title
    26, Internal Revenue Code.

                          MODEL NOTICES AND FORMS                      
      Pub. L. 109-280, title V, Sec. 501(c), Aug. 17, 2006, 120 Stat.
    939, provided that: "Not later than 1 year after the date of the
    enactment of this Act [Aug. 17, 2006], the Secretary of Labor shall
    publish a model version of the notice required by section 101(f) of
    the Employee Retirement Income Security Act of 1974 [29 U.S.C.
    1021(f)]. The Secretary of Labor may promulgate any interim final
    rules as the Secretary determines appropriate to carry out the
    provisions of this subsection."
      Pub. L. 109-280, title V, Sec. 503(e), Aug. 17, 2006, 120 Stat.
    945, provided that: "Not later than 1 year after the date of the
    enactment of this Act [Aug. 17, 2006], the Secretary of Labor shall
    publish a model form for providing the statements, schedules, and
    other material required to be provided under section 101(f) of the
    Employee Retirement Income Security Act of 1974 [29 U.S.C.
    1021(f)], as amended by this section. The Secretary of Labor may
    promulgate any interim final rules as the Secretary determines
    appropriate to carry out the provisions of this subsection."
      Pub. L. 109-280, title V, Sec. 507(c), Aug. 17, 2006, 120 Stat.
    949, provided that: "The Secretary of the Treasury shall, within
    180 days after the date of the enactment of this subsection [Aug.
    17, 2006], prescribe a model notice for purposes of satisfying the
    requirements of the amendments made by this section [amending this
    section and section 1132 of this title]."

             PLAN AMENDMENTS NOT REQUIRED UNTIL JULY 30, 2002         
      For provisions directing that if any amendment made by section
    306(b) of Pub. L. 107-204 requires an amendment to any plan, such
    plan amendment shall not be required to be made before the first
    plan year beginning on or after July 30, 2002, see section
    7244(b)(3) of Title 15, Commerce and Trade.

            PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1998        
      For provisions directing that if any amendments made by subtitle
    D [Secs. 1401-1465] of title I of Pub. L. 104-188 require an
    amendment to any plan or annuity contract, such amendment shall not
    be required to be made before the first day of the first plan year
    beginning on or after Jan. 1, 1998, see section 1465 of Pub. L. 104-
    188, set out as a note under section 401 of Title 26, Internal
    Revenue Code.

-FOOTNOTE-
    (!1) See References in Text note below.


-End-



-CITE-
    29 USC Sec. 1022                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 1 - reporting and disclosure

-HEAD-
    Sec. 1022. Summary plan description

-STATUTE-
      (a) A summary plan description of any employee benefit plan shall
    be furnished to participants and beneficiaries as provided in
    section 1024(b) of this title. The summary plan description shall
    include the information described in subsection (b) of this
    section, shall be written in a manner calculated to be understood
    by the average plan participant, and shall be sufficiently accurate
    and comprehensive to reasonably apprise such participants and
    beneficiaries of their rights and obligations under the plan. A
    summary of any material modification in the terms of the plan and
    any change in the information required under subsection (b) of this
    section shall be written in a manner calculated to be understood by
    the average plan participant and shall be furnished in accordance
    with section 1024(b)(1) of this title.
      (b) The summary plan description shall contain the following
    information: The name and type of administration of the plan; in
    the case of a group health plan (as defined in section 1191b(a)(1)
    of this title), whether a health insurance issuer (as defined in
    section 1191b(b)(2) of this title) is responsible for the financing
    or administration (including payment of claims) of the plan and (if
    so) the name and address of such issuer; the name and address of
    the person designated as agent for the service of legal process, if
    such person is not the administrator; the name and address of the
    administrator; names, titles, and addresses of any trustee or
    trustees (if they are persons different from the administrator); a
    description of the relevant provisions of any applicable collective
    bargaining agreement; the plan's requirements respecting
    eligibility for participation and benefits; a description of the
    provisions providing for nonforfeitable pension benefits;
    circumstances which may result in disqualification, ineligibility,
    or denial or loss of benefits; the source of financing of the plan
    and the identity of any organization through which benefits are
    provided; the date of the end of the plan year and whether the
    records of the plan are kept on a calendar, policy, or fiscal year
    basis; the procedures to be followed in presenting claims for
    benefits under the plan including the office at the Department of
    Labor through which participants and beneficiaries may seek
    assistance or information regarding their rights under this chapter
    and the Health Insurance Portability and Accountability Act of 1996
    with respect to health benefits that are offered through a group
    health plan (as defined in section 1191b(a)(1) of this title) and
    the remedies available under the plan for the redress of claims
    which are denied in whole or in part (including procedures required
    under section 1133 of this title).

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 102, Sept. 2, 1974, 88 Stat. 841;
    Pub. L. 104-191, title I, Sec. 101(c)(2), Aug. 21, 1996, 110 Stat.
    1951; Pub. L. 104-204, title VI, Sec. 603(b)(3)(C), Sept. 26, 1996,
    110 Stat. 2938; Pub. L. 105-34, title XV, Sec. 1503(b), Aug. 5,
    1997, 111 Stat. 1061.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This chapter, referred to in subsec. (b), was in the original
    "this Act", meaning Pub. L. 93-406, known as the Employee
    Retirement Income Security Act of 1974. Titles I, III, and IV of
    such Act are classified principally to this chapter. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 1001 of this title and Tables.
      The Health Insurance Portability and Accountability Act of 1996,
    referred to in subsec. (b), is Pub. L. 104-191, Aug. 21, 1996, 110
    Stat. 1936. For complete classification of this Act to the Code,
    see Short Title of 1996 Amendment note set out under section 201 of
    Title 42, The Public Health and Welfare, and Tables.


-MISC1-
                                AMENDMENTS                            
      1997 - Pub. L. 105-34, Sec. 1503(b)(2)(B), substituted "Summary
    plan description" for "Plan description and summary plan
    description" in section catchline.
      Subsec. (a). Pub. L. 105-34, Sec. 1503(b)(1), struck out "(1)"
    after subsec. designation and struck out par. (2) which read as
    follows: "A plan description (containing the information required
    by subsection (b) of this section) of any employee benefit plan
    shall be prepared on forms prescribed by the Secretary, and shall
    be filed with the Secretary as required by section 1024(a)(1) of
    this title. Any material modification in the terms of the plan and
    any change in the information described in subsection (b) of this
    section shall be filed in accordance with section 1024(a)(1)(D) of
    this title."
      Subsec. (b). Pub. L. 105-34, Sec. 1503(b)(2)(A), substituted "The
    summary plan description shall contain" for "The plan description
    and summary plan description shall contain".
      1996 - Subsec. (b). Pub. L. 104-204 made technical amendment to
    references in original act which appear in text as references to
    section 1191b of this title.
      Pub. L. 104-191 inserted "in the case of a group health plan (as
    defined in section 1191b(a)(1) of this title), whether a health
    insurance issuer (as defined in section 1191b(b)(2) of this title)
    is responsible for the financing or administration (including
    payment of claims) of the plan and (if so) the name and address of
    such issuer;" after "type of administration of the plan;" and
    "including the office at the Department of Labor through which
    participants and beneficiaries may seek assistance or information
    regarding their rights under this chapter and the Health Insurance
    Portability and Accountability Act of 1996 with respect to health
    benefits that are offered through a group health plan (as defined
    in section 1191b(a)(1) of this title)" after "presenting claims for
    benefits under the plan".

                     EFFECTIVE DATE OF 1996 AMENDMENTS                 
      Amendment by Pub. L. 104-204 applicable with respect to group
    health plans for plan years beginning on or after Jan. 1, 1998, see
    section 603(c) of Pub. L. 104-204 set out as a note under section
    1003 of this title.
      Amendment by Pub. L. 104-191 applicable with respect to group
    health plans for plan years beginning after June 30, 1997, except
    as otherwise provided, see section 101(g) of Pub. L. 104-191, set
    out as an Effective Date note under section 1181 of this title.

                                REGULATIONS                            
      Secretary authorized, effective Sept. 2, 1974, to promulgate
    regulations wherever provisions of this subchapter call for the
    promulgation of regulations, see section 1031 of this title.

-End-



-CITE-
    29 USC Sec. 1023                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 1 - reporting and disclosure

-HEAD-
    Sec. 1023. Annual reports

-STATUTE-
    (a) Publication and filing
      (1)(A) An annual report shall be published with respect to every
    employee benefit plan to which this part applies. Such report shall
    be filed with the Secretary in accordance with section 1024(a) of
    this title, and shall be made available and furnished to
    participants in accordance with section 1024(b) of this title.
      (B) The annual report shall include the information described in
    subsections (b) and (c) of this section and where applicable
    subsections (d) and (e) of this section and shall also include - 
        (i) a financial statement and opinion, as required by paragraph
      (3) of this subsection, and
        (ii) an actuarial statement and opinion, as required by
      paragraph (4) of this subsection.

      (2) If some or all of the information necessary to enable the
    administrator to comply with the requirements of this subchapter is
    maintained by - 
        (A) an insurance carrier or other organization which provides
      some or all of the benefits under the plan, or holds assets of
      the plan in a separate account,
        (B) a bank or similar institution which holds some or all of
      the assets of the plan in a common or collective trust or a
      separate trust, or custodial account, or
        (C) a plan sponsor as defined in section 1002(16)(B) of this
      title,

    such carrier, organization, bank, institution, or plan sponsor
    shall transmit and certify the accuracy of such information to the
    administrator within 120 days after the end of the plan year (or
    such other date as may be prescribed under regulations of the
    Secretary).
      (3)(A) Except as provided in subparagraph (C), the administrator
    of an employee benefit plan shall engage, on behalf of all plan
    participants, an independent qualified public accountant, who shall
    conduct such an examination of any financial statements of the
    plan, and of other books and records of the plan, as the accountant
    may deem necessary to enable the accountant to form an opinion as
    to whether the financial statements and schedules required to be
    included in the annual reports by subsection (b) of this section
    are presented fairly in conformity with generally accepted
    accounting principles applied on a basis consistent with that of
    the preceding year. Such examination shall be conducted in
    accordance with generally accepted auditing standards, and shall
    involve such tests of the books and records of the plan as are
    considered necessary by the independent qualified public
    accountant. The independent qualified public accountant shall also
    offer his opinion as to whether the separate schedules specified in
    subsection (b)(3) of this section and the summary material required
    under section 1024(b)(3) of this title present fairly, and in all
    material respects the information contained therein when considered
    in conjunction with the financial statements taken as a whole. The
    opinion by the independent qualified public accountant shall be
    made a part of the annual report. In a case where a plan is not
    required to file an annual report, the requirements of this
    paragraph shall not apply. In a case where by reason of section
    1024(a)(2) of this title a plan is required only to file a
    simplified annual report, the Secretary may waive the requirements
    of this paragraph.
      (B) In offering his opinion under this section the accountant may
    rely on the correctness of any actuarial matter certified to by an
    enrolled actuary, if he so states his reliance.
      (C) The opinion required by subparagraph (A) need not be
    expressed as to any statements required by subsection (b)(3)(G) of
    this section prepared by a bank or similar institution or insurance
    carrier regulated and supervised and subject to periodic
    examination by a State or Federal agency if such statements are
    certified by the bank, similar institution, or insurance carrier as
    accurate and are made a part of the annual report.
      (D) For purposes of this subchapter, the term "qualified public
    accountant" means - 
        (i) a person who is a certified public accountant, certified by
      a regulatory authority of a State;
        (ii) a person who is a licensed public accountant licensed by a
      regulatory authority of a State; or
        (iii) a person certified by the Secretary as a qualified public
      accountant in accordance with regulations published by him for a
      person who practices in States where there is no certification or
      licensing procedure for accountants.

      (4)(A) The administrator of an employee pension benefit plan
    subject to the reporting requirement of subsection (d) of this
    section shall engage, on behalf of all plan participants, an
    enrolled actuary who shall be responsible for the preparation of
    the materials comprising the actuarial statement required under
    subsection (d) of this section. In a case where a plan is not
    required to file an annual report, the requirement of this
    paragraph shall not apply, and, in a case where by reason of
    section 1024(a)(2) of this title, a plan is required only to file a
    simplified report, the Secretary may waive the requirement of this
    paragraph.
      (B) The enrolled actuary shall utilize such assumptions and
    techniques as are necessary to enable him to form an opinion as to
    whether the contents of the matters reported under subsection (d)
    of this section - 
        (i) are in the aggregate reasonably related to the experience
      of the plan and to reasonable expectations; and
        (ii) represent his best estimate of anticipated experience
      under the plan.

    The opinion by the enrolled actuary shall be made with respect to,
    and shall be made a part of, each annual report.
      (C) For purposes of this subchapter, the term "enrolled actuary"
    means an actuary enrolled under subtitle C of subchapter II of this
    chapter.
      (D) In making a certification under this section the enrolled
    actuary may rely on the correctness of any accounting matter under
    subsection (b) of this section to which any qualified public
    accountant has expressed an opinion, if he so states his reliance.
    (b) Financial statement
      An annual report under this section shall include a financial
    statement containing the following information:
      (1) With respect to an employee welfare benefit plan: a statement
    of assets and liabilities; a statement of changes in fund balance;
    and a statement of changes in financial position. In the notes to
    financial statements, disclosures concerning the following items
    shall be considered by the accountant: a description of the plan
    including any significant changes in the plan made during the
    period and the impact of such changes on benefits; a description of
    material lease commitments, other commitments, and contingent
    liabilities; a description of agreements and transactions with
    persons known to be parties in interest; a general description of
    priorities upon termination of the plan; information concerning
    whether or not a tax ruling or determination letter has been
    obtained; and any other matters necessary to fully and fairly
    present the financial statements of the plan.
      (2) With respect to an employee pension benefit plan: a statement
    of assets and liabilities, and a statement of changes in net assets
    available for plan benefits which shall include details of revenues
    and expenses and other changes aggregated by general source and
    application. In the notes to financial statements, disclosures
    concerning the following items shall be considered by the
    accountant: a description of the plan including any significant
    changes in the plan made during the period and the impact of such
    changes on benefits; the funding policy (including policy with
    respect to prior service cost), and any changes in such policies
    during the year; a description of any significant changes in plan
    benefits made during the period; a description of material lease
    commitments, other commitments, and contingent liabilities; a
    description of agreements and transactions with persons known to be
    parties in interest; a general description of priorities upon
    termination of the plan; information concerning whether or not a
    tax ruling or determination letter has been obtained; and any other
    matters necessary to fully and fairly present the financial
    statements of such pension plan.
      (3) With respect to all employee benefit plans, the statement
    required under paragraph (1) or (2) shall have attached the
    following information in separate schedules:
        (A) a statement of the assets and liabilities of the plan
      aggregated by categories and valued at their current value, and
      the same data displayed in comparative form for the end of the
      previous fiscal year of the plan;
        (B) a statement of receipts and disbursements during the
      preceding twelve-month period aggregated by general sources and
      applications;
        (C) a schedule of all assets held for investment purposes
      aggregated and identified by issuer, borrower, or lessor, or
      similar party to the transaction (including a notation as to
      whether such party is known to be a party in interest), maturity
      date, rate of interest, collateral, par or maturity value, cost,
      and current value;
        (D) a schedule of each transaction involving a person known to
      be party in interest, the identity of such party in interest and
      his relationship or that of any other party in interest to the
      plan, a description of each asset to which the transaction
      relates; the purchase or selling price in case of a sale or
      purchase, the rental in case of a lease, or the interest rate and
      maturity date in case of a loan; expense incurred in connection
      with the transaction; the cost of the asset, the current value of
      the asset, and the net gain (or loss) on each transaction;
        (E) a schedule of all loans or fixed income obligations which
      were in default as of the close of the plan's fiscal year or were
      classified during the year as uncollectable and the following
      information with respect to each loan on such schedule (including
      a notation as to whether parties involved are known to be parties
      in interest): the original principal amount of the loan, the
      amount of principal and interest received during the reporting
      year, the unpaid balance, the identity and address of the
      obligor, a detailed description of the loan (including date of
      making and maturity, interest rate, the type and value of
      collateral, and other material terms), the amount of principal
      and interest overdue (if any) and an explanation thereof;
        (F) a list of all leases which were in default or were
      classified during the year as uncollectable; and the following
      information with respect to each lease on such schedule
      (including a notation as to whether parties involved are known to
      be parties in interest): the type of property leased (and, in the
      case of fixed assets such as land, buildings, leasehold, and so
      forth, the location of the property), the identity of the lessor
      or lessee from or to whom the plan is leasing, the relationship
      of such lessors and lessees, if any, to the plan, the employer,
      employee organization, or any other party in interest, the terms
      of the lease regarding rent, taxes, insurance, repairs, expenses,
      and renewal options; the date the leased property was purchased
      and its cost, the date the property was leased and its
      approximate value at such date, the gross rental receipts during
      the reporting period, expenses paid for the leased property
      during the reporting period, the net receipts from the lease, the
      amounts in arrears, and a statement as to what steps have been
      taken to collect amounts due or otherwise remedy the default;
        (G) if some or all of the assets of a plan or plans are held in
      a common or collective trust maintained by a bank or similar
      institution or in a separate account maintained by an insurance
      carrier or a separate trust maintained by a bank as trustee, the
      report shall include the most recent annual statement of assets
      and liabilities of such common or collective trust, and in the
      case of a separate account or a separate trust, such other
      information as is required by the administrator in order to
      comply with this subsection; and
        (H) a schedule of each reportable transaction, the name of each
      party to the transaction (except that, in the case of an
      acquisition or sale of a security on the market, the report need
      not identify the person from whom the security was acquired or to
      whom it was sold) and a description of each asset to which the
      transaction applies; the purchase or selling price in case of a
      sale or purchase, the rental in case of a lease, or the interest
      rate and maturity date in case of a loan; expenses incurred in
      connection with the transaction; the cost of the asset, the
      current value of the asset, and the net gain (or loss) on each
      transaction. For purposes of the preceding sentence, the term
      "reportable transaction" means a transaction to which the plan is
      a party if such transaction is - 
          (i) a transaction involving an amount in excess of 3 percent
        of the current value of the assets of the plan;
          (ii) any transaction (other than a transaction respecting a
        security) which is part of a series of transactions with or in
        conjunction with a person in a plan year, if the aggregate
        amount of such transactions exceeds 3 percent of the current
        value of the assets of the plan;
          (iii) a transaction which is part of a series of transactions
        respecting one or more securities of the same issuer, if the
        aggregate amount of such transactions in the plan year exceeds
        3 percent of the current value of the assets of the plan; or
          (iv) a transaction with or in conjunction with a person
        respecting a security, if any other transaction with or in
        conjunction with such person in the plan year respecting a
        security is required to be reported by reason of clause (i).

      (4) The Secretary may, by regulation, relieve any plan from
    filing a copy of a statement of assets and liabilities (or other
    information) described in paragraph (3)(G) if such statement and
    other information is filed with the Secretary by the bank or
    insurance carrier which maintains the common or collective trust or
    separate account.
    (c) Information to be furnished by administrator
      The administrator shall furnish as a part of a report under this
    section the following information:
        (1) The number of employees covered by the plan.
        (2) The name and address of each fiduciary.
        (3) Except in the case of a person whose compensation is
      minimal (determined under regulations of the Secretary) and who
      performs solely ministerial duties (determined under such
      regulations), the name of each person (including but not limited
      to, any consultant, broker, trustee, accountant, insurance
      carrier, actuary, administrator, investment manager, or custodian
      who rendered services to the plan or who had transactions with
      the plan) who received directly or indirectly compensation from
      the plan during the preceding year for services rendered to the
      plan or its participants, the amount of such compensation, the
      nature of his services to the plan or its participants, his
      relationship to the employer of the employees covered by the
      plan, or the employee organization, and any other office,
      position, or employment he holds with any party in interest.
        (4) An explanation of the reason for any change in appointment
      of trustee, accountant, insurance carrier, enrolled actuary,
      administrator, investment manager, or custodian.
        (5) Such financial and actuarial information including but not
      limited to the material described in subsections (b) and (d) of
      this section as the Secretary may find necessary or appropriate.
    (d) Actuarial statement
      With respect to an employee pension benefit plan (other than (A)
    a profit sharing, savings, or other plan, which is an individual
    account plan, (B) a plan described in section 1081(b) of this
    title, or (C) a plan described both in section 1321(b) of this
    title and in paragraph (1), (2), (3), (4), (5), (6), or (7) of
    section 1081(a) of this title) an annual report under this section
    for a plan year shall include a complete actuarial statement
    applicable to the plan year which shall include the following:
        (1) The date of the plan year, and the date of the actuarial
      valuation applicable to the plan year for which the report is
      filed.
        (2) The date and amount of the contribution (or contributions)
      received by the plan for the plan year for which the report is
      filed and contributions for prior plan years not previously
      reported.
        (3) The following information applicable to the plan year for
      which the report is filed: the normal costs, the accrued
      liabilities, an identification of benefits not included in the
      calculation; a statement of the other facts and actuarial
      assumptions and methods used to determine costs, and a
      justification for any change in actuarial assumptions or cost
      methods; and the minimum contribution required under section 1082
      of this title.
        (4) The number of participants and beneficiaries, both retired
      and nonretired, covered by the plan.
        (5) The current value of the assets accumulated in the plan,
      and the present value of the assets of the plan used by the
      actuary in any computation of the amount of contributions to the
      plan required under section 1082 of this title and a statement
      explaining the basis of such valuation of present value of
      assets.
        (6) Information required in regulations of the Pension Benefit
      Guaranty Corporation with respect to:
          (A) the current value of the assets of the plan,
          (B) the present value of all nonforfeitable benefits for
        participants and beneficiaries receiving payments under the
        plan,
          (C) the present value of all nonforfeitable benefits for all
        other participants and beneficiaries,
          (D) the present value of all accrued benefits which are not
        nonforfeitable (including a separate accounting of such
        benefits which are benefit commitments, as defined in section
        1301(a)(16) of this title), and
          (E) the actuarial assumptions and techniques used in
        determining the values described in subparagraphs (A) through
        (D).

        (7) A certification of the contribution necessary to reduce the
      accumulated funding deficiency to zero.
        (8) A statement by the enrolled actuary - 
          (A) that to the best of his knowledge the report is complete
        and accurate, and
          (B) the requirements of section 1082(c)(3) of this title
        (relating to reasonable actuarial assumptions and methods) have
        been complied with.

        (9) A copy of the opinion required by subsection (a)(4) of this
      section.
        (10) A statement by the actuary which discloses - 
          (A) any event which the actuary has not taken into account,
        and
          (B) any trend which, for purposes of the actuarial
        assumptions used, was not assumed to continue in the future,

      but only if, to the best of the actuary's knowledge, such event
      or trend may require a material increase in plan costs or
      required contribution rates.
        (11) If the current value of the assets of the plan is less
      than 70 percent of the current liability under the plan (within
      the meaning of section 1082(d)(7) of this title), the percentage
      which such value is of such liability..(!1)

        (12) Such other information regarding the plan as the Secretary
      may by regulation require.
        (13) Such other information as may be necessary to fully and
      fairly disclose the actuarial position of the plan.

    Such actuary shall make an actuarial valuation of the plan for
    every third plan year, unless he determines that a more frequent
    valuation is necessary to support his opinion under subsection
    (a)(4) of this section.
    (e) Statement from insurance company, insurance service, or other
      similar organizations which sell or guarantee plan benefits
      If some or all of the benefits under the plan are purchased from
    and guaranteed by an insurance company, insurance service, or other
    similar organization, a report under this section shall include a
    statement from such insurance company, service, or other similar
    organization covering the plan year and enumerating - 
        (1) the premium rate or subscription charge and the total
      premium or subscription charges paid to each such carrier,
      insurance service, or other similar organization and the
      approximate number of persons covered by each class of such
      benefits; and
        (2) the total amount of premiums received, the approximate
      number of persons covered by each class of benefits, and the
      total claims paid by such company, service, or other
      organization; dividends or retroactive rate adjustments,
      commissions, and administrative service or other fees or other
      specific acquisition costs paid by such company, service, or
      other organization; any amounts held to provide benefits after
      retirement; the remainder of such premiums; and the names and
      addresses of the brokers, agents, or other persons to whom
      commissions or fees were paid, the amount paid to each, and for
      what purpose. If any such company, service, or other organization
      does not maintain separate experience records covering the
      specific groups it serves, the report shall include in lieu of
      the information required by the foregoing provisions of this
      paragraph (A) a statement as to the basis of its premium rate or
      subscription charge, the total amount of premiums or subscription
      charges received from the plan, and a copy of the financial
      report of the company, service, or other organization and (B) if
      such company, service, or organization incurs specific costs in
      connection with the acquisition or retention of any particular
      plan or plans, a detailed statement of such costs.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 103, Sept. 2, 1974, 88 Stat. 841;
    Pub. L. 96-364, title III, Sec. 307, Sept. 26, 1980, 94 Stat. 1295;
    Pub. L. 99-272, title XI, Sec. 11016(b)(1), Apr. 7, 1986, 100 Stat.
    272; Pub. L. 100-203, title IX, Sec. 9342(a)(1), Dec. 22, 1987, 101
    Stat. 1330-371; Pub. L. 101-239, title VII, Sec. 7881(j)(1), Dec.
    19, 1989, 103 Stat. 2442; Pub. L. 109-280, title I, Sec. 107(a)(2),
    (3), title V, Sec. 503(a)(1), (b), Aug. 17, 2006, 120 Stat. 818,
    942, 943.)


-STATAMEND-
                           AMENDMENT OF SECTION                       
      Pub. L. 109-280, title V, Sec. 503(a)(1), (b), (f), Aug. 17,
    2006, 120 Stat. 942, 943, 945, provided that, applicable to plan
    years beginning after Dec. 31, 2007, this section is amended:
      (1) in subsection (a)(1)(B), by substituting "subsections (d),
    (e), and (f)" for "subsections (d) and (e)";
      (2) in subsection (d), by redesignating paragraphs (12) and (13)
    as (13) and (14), respectively, and by adding a new paragraph (12)
    to read as follows:
        "(12) A statement explaining the actuarial assumptions and
      methods used in projecting future retirements and forms of
      benefit distributions under the plan."; and
      (3) by adding subsection (f) at the end to read as follows:
    (f) Additional information with respect to defined benefit plans
      (1) Liabilities under 2 or more plans
        (A) In general
          In any case in which any liabilities to participants or their
        beneficiaries under a defined benefit plan as of the end of a
        plan year consist (in whole or in part) of liabilities to such
        participants and beneficiaries under 2 or more pension plans as
        of immediately before such plan year, an annual report under
        this section for such plan year shall include the funded
        percentage of each of such 2 or more pension plans as of the
        last day of such plan year and the funded percentage of the
        plan with respect to which the annual report is filed as of the
        last day of such plan year.
        (B) Funded percentage
          For purposes of this paragraph, the term "funded percentage" -
         
            (i) in the case of a single-employer plan, means the
          funding target attainment percentage, as defined in section
          1083(d)(2) of this title, and
            (ii) in the case of a multiemployer plan, has the meaning
          given such term in section 1085(i)(2) of this title.
      (2) Additional information for multiemployer plans
        With respect to any defined benefit plan which is a
      multiemployer plan, an annual report under this section for a
      plan year shall include, in addition to the information required
      under paragraph (1), the following, as of the end of the plan
      year to which the report relates:
          (A) The number of employers obligated to contribute to the
        plan.
          (B) A list of the employers that contributed more than 5
        percent of the total contributions to the plan during such plan
        year.
          (C) The number of participants under the plan on whose behalf
        no contributions were made by an employer as an employer of the
        participant for such plan year and for each of the 2 preceding
        plan years.
          (D) The ratios of - 
            (i) the number of participants under the plan on whose
          behalf no employer had an obligation to make an employer
          contribution during the plan year, to
            (ii) the number of participants under the plan on whose
          behalf no employer had an obligation to make an employer
          contribution during each of the 2 preceding plan years.

          (E) Whether the plan received an amortization extension under
        section 1084(d) of this title or section 431(d) of title 26 for
        such plan year and, if so, the amount of the difference between
        the minimum required contribution for the year and the minimum
        required contribution which would have been required without
        regard to the extension, and the period of such extension.
          (F) Whether the plan used the shortfall funding method (as
        such term is used in section 1085 of this title) for such plan
        year and, if so, the amount of the difference between the
        minimum required contribution for the year and the minimum
        required contribution which would have been required without
        regard to the use of such method, and the period of use of such
        method.
          (G) Whether the plan was in critical or endangered status
        under section 1085 of this title for such plan year, and if so,
        a summary of any funding improvement or rehabilitation plan (or
        modification thereto) adopted during the plan year, and the
        funded percentage of the plan.
          (H) The number of employers that withdrew from the plan
        during the preceding plan year and the aggregate amount of
        withdrawal liability assessed, or estimated to be assessed,
        against such withdrawn employers.
          (I) In the case of a multiemployer plan that has merged with
        another plan or to which assets and liabilities have been
        transferred, the actuarial valuation of the assets and
        liabilities of each affected plan during the year preceding the
        effective date of the merger or transfer, based upon the most
        recent data available as of the day before the first day of the
        plan year, or other valuation method performed under standards
        and procedures as the Secretary may prescribe by regulation.
      Pub. L. 109-280, title I, Sec. 107(a)(2), (3), (e), Aug. 17,
    2006, 120 Stat. 818, 820, provided that, applicable to plan years
    beginning after 2007, subsection (d) of this section is amended:
      (1) in paragraph (8)(B), by substituting "the applicable
    requirements of sections 1083(h) and 1084(c)(3)" for "the
    requirements of section 1082(c)(3)"; and
      (2) by striking out paragraph (11) and by inserting a new
    paragraph (11) to read as follows:
        (11) If the current value of the assets of the plan is less
      than 70 percent of - 
          (A) in the case of a single-employer plan, the funding target
        (as defined in section 1083(d)(1) of this title) of the plan,
        or
          (B) in the case of a multiemployer plan, the current
        liability (as defined in section 1084(c)(6)(D) of this title)
        under the plan,

      the percentage which such value is of the amount described in
      subparagraph (A) or (B).


-MISC1-
                                AMENDMENTS                            
      1989 - Subsec. (d)(11). Pub. L. 101-239 substituted "70 percent"
    for "60 percent" and "the percentage which such value is of such
    liability." for "such percentage".
      1987 - Subsec. (d)(11) to (13). Pub. L. 100-203 added par. (11)
    and redesignated former pars. (11) and (12) as (12) and (13),
    respectively.
      1986 - Subsec. (d)(6). Pub. L. 99-272 amended par. (6) generally.
    Prior to amendment, par. (6) read as follows: "The present value of
    all of the plan's liabilities for nonforfeitable pension benefits
    allocated by the termination priority categories as set forth in
    section 1344 of this title, and the actuarial assumptions used in
    these computations. The Secretary shall establish regulations
    defining (for purposes of this section) 'termination priority
    categories' and acceptable methods, including approximate methods,
    for allocating the plan's liabilities to such termination priority
    categories."
      1980 - Subsec. (d)(10) to (12). Pub. L. 96-364 added par. (10)
    and redesignated former pars. (10) and (11) as (11) and (12),
    respectively.

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Amendment by section 107(a)(2), (3) of Pub. L. 109-280 applicable
    to plan years beginning after 2007, see section 107(e) of Pub. L.
    109-280, set out as a note under section 1021 of this title.
      Amendment by section 503(a)(1), (b) of Pub. L. 109-280 applicable
    to plan years beginning after Dec. 31, 2007, see section 503(f) of
    Pub. L. 109-280, set out as a note under section 1021 of this
    title.

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by Pub. L. 101-239 effective, except as otherwise
    provided, as if included in the provision of the Pension Protection
    Act, Pub. L. 100-203, Secs. 9302-9346, to which such amendment
    relates, see section 7882 of Pub. L. 101-239, set out as a note
    under section 401 of Title 26, Internal Revenue Code.

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Amendment by Pub. L. 100-203 applicable with respect to reports
    required to be filed after Dec. 31, 1987, see section 9342(d)(1) of
    Pub. L. 100-203, set out as a note under section 1132 of this
    title.

                     EFFECTIVE DATE OF 1986 AMENDMENT                 
      Amendment by Pub. L. 99-272 effective Jan. 1, 1986, with certain
    exceptions, see section 11019 of Pub. L. 99-272, set out as a note
    under section 1341 of this title.

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-364 effective Sept. 26, 1980, except as
    specifically provided, see section 1461(e) of this title.

                                REGULATIONS                            
      Secretary authorized, effective Sept. 2, 1974, to promulgate
    regulations wherever provisions of this subchapter call for the
    promulgation of regulations, see section 1031 of this title.

    APPLICABILITY OF AMENDMENTS BY SUBTITLES A AND B OF TITLE I OF PUB.
                                L. 109-280
      For special rules on applicability of amendments by subtitles A
    (Secs. 101-107) and B (Secs. 111-116) of title I of Pub. L. 109-280
    to certain eligible cooperative plans, PBGC settlement plans, and
    eligible government contractor plans, see sections 104, 105, and
    106 of Pub. L. 109-280, set out as notes under section 401 of Title
    26, Internal Revenue Code.

                      GUIDANCE BY SECRETARY OF LABOR                  
      Pub. L. 109-280, title V, Sec. 503(a)(2), Aug. 17, 2006, 120
    Stat. 943, provided that: "Not later than 1 year after the date of
    enactment of this Act [Aug. 17, 2006], the Secretary of Labor shall
    publish guidance to assist multiemployer defined benefit plans to -
    
        "(A) identify and enumerate plan participants for whom there is
      no employer with an obligation to make an employer contribution
      under the plan; and
        "(B) report such information under section 103(f)(2)(D) of the
      Employee Retirement Income Security Act of 1974 [29 U.S.C.
      1023(f)(2)(D)] (as added by this section)."

                             TRANSITION RULES                         
      Section 11016(b)(3) of Pub. L. 99-272 provided that: "Any
    regulations, modifications, or waivers which have been issued by
    the Secretary of Labor with respect to section 103(d)(6) of the
    Employee Retirement Income Security Act of 1974 [29 U.S.C.
    1023(d)(6)] (as in effect immediately before the date of the
    enactment of this Act [Apr. 7, 1986]) shall remain in full force
    and effect until modified by any regulations with respect to such
    section 103(d)(6) prescribed by the Pension Benefit Guaranty
    Corporation."

                    CONSOLIDATION OF ACTUARIAL REPORTS                
      Secretary of the Treasury and Secretary of Labor to take such
    steps as may be necessary to assure coordination to the maximum
    extent feasible between the actuarial reports required by subsec.
    (d) of this section and section 6059 of Title 26, Internal Revenue
    Code, see section 1033(c) of Pub. L. 93-406, set out as a note
    under section 6059 of Title 26.

-FOOTNOTE-               

    (!1) So in original.


-End-



-CITE-
    29 USC Sec. 1024                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 1 - reporting and disclosure

-HEAD-
    Sec. 1024. Filing with Secretary and furnishing information to
      participants

-STATUTE-
    (a) Filing of annual report with Secretary
      (1) The administrator of any employee benefit plan subject to
    this part shall file with the Secretary the annual report for a
    plan year within 210 days after the close of such year (or within
    such time as may be required by regulations promulgated by the
    Secretary in order to reduce duplicative filing). The Secretary
    shall make copies of such annual reports available for inspection
    in the public document room of the Department of Labor.
      (2)(A) With respect to annual reports required to be filed with
    the Secretary under this part, he may by regulation prescribe
    simplified annual reports for any pension plan which covers less
    than 100 participants.
      (B) Nothing contained in this paragraph shall preclude the
    Secretary from requiring any information or data from any such plan
    to which this part applies where he finds such data or information
    is necessary to carry out the purposes of this subchapter nor shall
    the Secretary be precluded from revoking provisions for simplified
    reports for any such plan if he finds it necessary to do so in
    order to carry out the objectives of this subchapter.
      (3) The Secretary may by regulation exempt any welfare benefit
    plan from all or part of the reporting and disclosure requirements
    of this subchapter, or may provide for simplified reporting and
    disclosure if he finds that such requirements are inappropriate as
    applied to welfare benefit plans.
      (4) The Secretary may reject any filing under this section - 
        (A) if he determines that such filing is incomplete for
      purposes of this part; or
        (B) if he determines that there is any material qualification
      by an accountant or actuary contained in an opinion submitted
      pursuant to section 1023(a)(3)(A) or section 1023(a)(4)(B) of
      this title.

      (5) If the Secretary rejects a filing of a report under paragraph
    (4) and if a revised filing satisfactory to the Secretary is not
    submitted within 45 days after the Secretary makes his
    determination under paragraph (4) to reject the filing, and if the
    Secretary deems it in the best interest of the participants, he may
    take any one or more of the following actions - 
        (A) retain an independent qualified public accountant (as
      defined in section 1023(a)(3)(D) of this title) on behalf of the
      participants to perform an audit,
        (B) retain an enrolled actuary (as defined in section
      1023(a)(4)(C) of this title) on behalf of the plan participants,
      to prepare an actuarial statement,
        (C) bring a civil action for such legal or equitable relief as
      may be appropriate to enforce the provisions of this part, or
        (D) take any other action authorized by this subchapter.

    The administrator shall permit such accountant or actuary to
    inspect whatever books and records of the plan are necessary for
    such audit. The plan shall be liable to the Secretary for the
    expenses for such audit or report, and the Secretary may bring an
    action against the plan in any court of competent jurisdiction to
    recover such expenses.
      (6) The administrator of any employee benefit plan subject to
    this part shall furnish to the Secretary, upon request, any
    documents relating to the employee benefit plan, including but not
    limited to, the latest summary plan description (including any
    summaries of plan changes not contained in the summary plan
    description), and the bargaining agreement, trust agreement,
    contract, or other instrument under which the plan is established
    or operated.
    (b) Publication of summary plan description and annual report to
      participants and beneficiaries of plan
      Publication of the summary plan descriptions and annual reports
    shall be made to participants and beneficiaries of the particular
    plan as follows:
      (1) The administrator shall furnish to each participant, and each
    beneficiary receiving benefits under the plan, a copy of the
    summary plan description, and all modifications and changes
    referred to in section 1022(a) of this title - 
        (A) within 90 days after he becomes a participant, or (in the
      case of a beneficiary) within 90 days after he first receives
      benefits, or
        (B) if later, within 120 days after the plan becomes subject to
      this part.

    The administrator shall furnish to each participant, and each
    beneficiary receiving benefits under the plan, every fifth year
    after the plan becomes subject to this part an updated summary plan
    description described in section 1022 of this title which
    integrates all plan amendments made within such five-year period,
    except that in a case where no amendments have been made to a plan
    during such five-year period this sentence shall not apply.
    Notwithstanding the foregoing, the administrator shall furnish to
    each participant, and to each beneficiary receiving benefits under
    the plan, the summary plan description described in section 1022 of
    this title every tenth year after the plan becomes subject to this
    part. If there is a modification or change described in section
    1022(a) of this title (other than a material reduction in covered
    services or benefits provided in the case of a group health plan
    (as defined in section 1191b(a)(1) of this title)), a summary
    description of such modification or change shall be furnished not
    later than 210 days after the end of the plan year in which the
    change is adopted to each participant, and to each beneficiary who
    is receiving benefits under the plan. If there is a modification or
    change described in section 1022(a) of this title that is a
    material reduction in covered services or benefits provided under a
    group health plan (as defined in section 1191b(a)(1) of this
    title), a summary description of such modification or change shall
    be furnished to participants and beneficiaries not later than 60
    days after the date of the adoption of the modification or change.
    In the alternative, the plan sponsors may provide such description
    at regular intervals of not more than 90 days. The Secretary shall
    issue regulations within 180 days after August 21, 1996, providing
    alternative mechanisms to delivery by mail through which group
    health plans (as so defined) may notify participants and
    beneficiaries of material reductions in covered services or
    benefits.
      (2) The administrator shall make copies of the latest updated
    summary plan description and the latest annual report and the
    bargaining agreement, trust agreement, contract, or other
    instruments under which the plan was established or is operated
    available for examination by any plan participant or beneficiary in
    the principal office of the administrator and in such other places
    as may be necessary to make available all pertinent information to
    all participants (including such places as the Secretary may
    prescribe by regulations).
      (3) Within 210 days after the close of the fiscal year of the
    plan, the administrator shall furnish to each participant, and to
    each beneficiary receiving benefits under the plan, a copy of the
    statements and schedules, for such fiscal year, described in
    subparagraphs (A) and (B) of section 1023(b)(3) of this title and
    such other material (including the percentage determined under
    section 1023(d)(11) of this title) as is necessary to fairly
    summarize the latest annual report.
      (4) The administrator shall, upon written request of any
    participant or beneficiary, furnish a copy of the latest updated
    summary,(!1) plan description, and the latest annual report, any
    terminal report, the bargaining agreement, trust agreement,
    contract, or other instruments under which the plan is established
    or operated. The administrator may make a reasonable charge to
    cover the cost of furnishing such complete copies. The Secretary
    may by regulation prescribe the maximum amount which will
    constitute a reasonable charge under the preceding sentence.

    (c) Statement of rights
      The Secretary may by regulation require that the administrator of
    any employee benefit plan furnish to each participant and to each
    beneficiary receiving benefits under the plan a statement of the
    rights of participants and beneficiaries under this subchapter.
    (d) Cross references
          For regulations respecting coordination of reports to the
        Secretaries of Labor and the Treasury, see section 1204 of this
        title.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 104, Sept. 2, 1974, 88 Stat. 847;
    Pub. L. 99-272, title XI, Sec. 11016(b)(2), Apr. 7, 1986, 100 Stat.
    273; Pub. L. 100-203, title IX, Sec. 9342(a)(2), Dec. 22, 1987, 101
    Stat. 1330-371; Pub. L. 101-239, title VII, Sec. 7894(b)(3), (4),
    Dec. 19, 1989, 103 Stat. 2448; Pub. L. 104-191, title I, Sec.
    101(c)(1), Aug. 21, 1996, 110 Stat. 1951; Pub. L. 104-204, title
    VI, Sec. 603(b)(3)(D), Sept. 26, 1996, 110 Stat. 2938; Pub. L. 105-
    34, title XV, Sec. 1503(c)(1), (2)(A), (d)(1)-(3), Aug. 5, 1997,
    111 Stat. 1062; Pub. L. 109-280, title V, Secs. 503(c)(1), (d),
    504(a), Aug. 17, 2006, 120 Stat. 943-945.)


-STATAMEND-
                           AMENDMENT OF SECTION                       
      Pub. L. 109-280, title V, Secs. 503(c)(1), (d), (f), 504, Aug.
    17, 2006, 120 Stat. 943-945, provided that, applicable to plan
    years beginning after Dec. 31, 2007, this section is amended:
      (1) in section catchline, by substituting "participants and
    certain employers" for "participants";
      (2) in subsection (b)(3), by inserting "(other than an
    administrator of a defined benefit plan to which the requirements
    of section 1023(f) of this title applies)" after "the
    administrators";
      (3) in subsection (b), by adding paragraph (5) at the end to read
    as follows:
      "(5) Identification and basic plan information and actuarial
    information included in the annual report for any plan year shall
    be filed with the Secretary in an electronic format which
    accommodates display on the Internet, in accordance with
    regulations which shall be prescribed by the Secretary. The
    Secretary shall provide for display of such information included in
    the annual report, within 90 days after the date of the filing of
    the annual report, on an Internet website maintained by the
    Secretary and other appropriate media. Such information shall also
    be displayed on any Intranet website maintained by the plan sponsor
    (or by the plan administrator on behalf of the plan sponsor) for
    the purpose of communicating with employees and not the public, in
    accordance with regulations which shall be prescribed by the
    Secretary."; and
      (4) by redesignating subsection (d) as (e) and by adding a new
    subsection (d) to read as follows:
    (d) Furnishing summary plan information to employers and employee
      representatives of multiemployer plans
      (1) In general
        With respect to a multiemployer plan subject to this section,
      within 30 days after the due date under subsection (a)(1) for the
      filing of the annual report for the fiscal year of the plan, the
      administrators shall furnish to each employee organization and to
      each employer with an obligation to contribute to the plan a
      report that contains - 
          (A) a description of the contribution schedules and benefit
        formulas under the plan, and any modification to such schedules
        and formulas, during such plan year;
          (B) the number of employers obligated to contribute to the
        plan;
          (C) a list of the employers that contributed more than 5
        percent of the total contributions to the plan during such plan
        year;
          (D) the number of participants under the plan on whose behalf
        no contributions were made by an employer as an employer of the
        participant for such plan year and for each of the 2 preceding
        plan years;
          (E) whether the plan was in critical or endangered status
        under section 1085 of this title for such plan year and, if so,
        include - 
            (i) a list of the actions taken by the plan to improve its
          funding status; and
            (ii) a statement describing how a person may obtain a copy
          of the plan's improvement or rehabilitation plan, as
          applicable, adopted under section 1085 of this title and the
          actuarial and financial data that demonstrate any action
          taken by the plan toward fiscal improvement;

          (F) the number of employers that withdrew from the plan
        during the preceding plan year and the aggregate amount of
        withdrawal liability assessed, or estimated to be assessed,
        against such withdrawn employers, as reported on the annual
        report for the plan year to which the report under this
        subsection relates;
          (G) in the case of a multiemployer plan that has merged with
        another plan or to which assets and liabilities have been
        transferred, the actuarial valuation of the assets and
        liabilities of each affected plan during the year preceding the
        effective date of the merger or transfer, based upon the most
        recent data available as of the day before the first day of the
        plan year, or other valuation method performed under standards
        and procedures as the Secretary may prescribe by regulation;
          (H) a description as to whether the plan - 
            (i) sought or received an amortization extension under
          section 1084(d) of this title or section 431(d) of title 26
          for such plan year; or
            (ii) used the shortfall funding method (as such term is
          used in section 1085 of this title) for such plan year; and

          (I) notification of the right under this section of the
        recipient to a copy of the annual report filed with the
        Secretary under subsection (a), summary plan description,
        summary of any material modification of the plan, upon written
        request, but that - 
            (i) in no case shall a recipient be entitled to receive
          more than one copy of any such document described during any
          one 12-month period; and
            (ii) the administrator may make a reasonable charge to
          cover copying, mailing, and other costs of furnishing copies
          of information pursuant to this subparagraph.
      (2) Effect of subsection
        Nothing in this subsection waives any other provision under
      this subchapter requiring plan administrators to provide, upon
      request, information to employers that have an obligation to
      contribute under the plan.


-MISC1-
                                AMENDMENTS                            
      1997 - Subsec. (a)(1). Pub. L. 105-34, Sec. 1503(c)(1), amended
    par. (1) generally, substituting present provisions for provisions
    requiring filing of annual report, plan description, summary plan
    description, as well as modifications and changes in plan
    descriptions.
      Subsec. (a)(6). Pub. L. 105-34, Sec. 1503(c)(2)(A), added par.
    (6).
      Subsec. (b)(1). Pub. L. 105-34, Sec. 1503(d)(1), substituted
    "section 1022(a) of this title" for "section 1022(a)(1) of this
    title" wherever appearing.
      Subsec. (b)(2). Pub. L. 105-34, Sec. 1503(d)(2), substituted "the
    latest updated summary plan description and" for "the plan
    description and".
      Subsec. (b)(4). Pub. L. 105-34, Sec. 1503(d)(3), struck out "plan
    description" before ", plan description, and the latest annual
    report".
      1996 - Subsec. (b)(1). Pub. L. 104-204 made technical amendment
    to references in original act which appear in text as references to
    section 1191b of this title.
      Pub. L. 104-191, in closing provisions, substituted "1022(a)(1)
    of this title (other than a material reduction in covered services
    or benefits provided in the case of a group health plan (as defined
    in section 1191b(a)(1) of this title))," for "1022(a)(1) of this
    title," and inserted at end "If there is a modification or change
    described in section 1022(a)(1) of this title that is a material
    reduction in covered services or benefits provided under a group
    health plan (as defined in section 1191b(a)(1) of this title), a
    summary description of such modification or change shall be
    furnished to participants and beneficiaries not later than 60 days
    after the date of the adoption of the modification or change. In
    the alternative, the plan sponsors may provide such description at
    regular intervals of not more than 90 days. The Secretary shall
    issue regulations within 180 days after August 21, 1996, providing
    alternative mechanisms to delivery by mail through which group
    health plans (as so defined) may notify participants and
    beneficiaries of material reductions in covered services or
    benefits."
      1989 - Subsec. (a)(5)(B). Pub. L. 101-239, Sec. 7894(b)(3),
    substituted a comma for period at end.
      Subsec. (b)(1). Pub. L. 101-239, Sec. 7894(b)(4), struck out
    comma after "summary".
      1987 - Subsec. (b)(3). Pub. L. 100-203 inserted "(including the
    percentage determined under section 1023(d)(11) of this title)"
    after "material".
      1986 - Subsec. (a)(2)(A). Pub. L. 99-272 struck out provision
    permitting the Secretary to waive or modify the requirements of
    section 1023(d)(6) of this title if he found that the interests of
    the plan participants were not harmed and the expense of compliance
    was not justified by the needs of the participants, the Pension
    Benefit Guaranty Corporation, and the Department of Labor for some
    portion or all of the information otherwise required under section
    1023(d)(6) of this title.

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Amendment by section 503(c)(1), (d) of Pub. L. 109-280 applicable
    to plan years beginning after Dec. 31, 2007, see section 503(f) of
    Pub. L. 109-280, set out as a note under section 1021 of this
    title.
      Pub. L. 109-280, title V, Sec. 504(b), Aug. 17, 2006, 120 Stat.
    945, provided that: "The amendment made by this section [amending
    this section] shall apply to plan years beginning after December
    31, 2007."

                     EFFECTIVE DATE OF 1996 AMENDMENTS                 
      Amendment by Pub. L. 104-204 applicable with respect to group
    health plans for plan years beginning on or after Jan. 1, 1998, see
    section 603(c) of Pub. L. 104-204 set out as a note under section
    1003 of this title.
      Amendment by Pub. L. 104-191 applicable with respect to group
    health plans for plan years beginning after June 30, 1997, except
    as otherwise provided, see section 101(g) of Pub. L. 104-191, set
    out as an Effective Date note under section 1181 of this title.

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by Pub. L. 101-239 effective, except as otherwise
    provided, as if originally included in the provision of the
    Employee Retirement Income Security Act of 1974, Pub. L. 93-406, to
    which such amendment relates, see section 7894(i) of Pub. L. 101-
    239, set out as a note under section 1002 of this title.

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Amendment by Pub. L. 100-203 applicable with respect to reports
    required to be filed after Dec. 31, 1987, see section 9342(d)(1) of
    Pub. L. 100-203, set out as a note under section 1132 of this
    title.

                     EFFECTIVE DATE OF 1986 AMENDMENT                 
      Amendment by Pub. L. 99-272 effective Jan. 1, 1986, with certain
    exceptions, see section 11019 of Pub. L. 99-272, set out as a note
    under section 1341 of this title.

                                REGULATIONS                            
      Secretary authorized, effective Sept. 2, 1974, to promulgate
    regulations wherever provisions of this subchapter call for the
    promulgation of regulations, see section 1031 of this title.

-FOOTNOTE-
    (!1) So in original. Comma probably should not appear.


-End-



-CITE-
    29 USC Sec. 1025                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 1 - reporting and disclosure

-HEAD-
    Sec. 1025. Reporting of participant's benefit rights

-STATUTE-
    (a) Requirements to provide pension benefit statements
      (1) Requirements
        (A) Individual account plan
          The administrator of an individual account plan (other than a
        one-participant retirement plan described in section
        1021(i)(8)(B) of this title) shall furnish a pension benefit
        statement - 
            (i) at least once each calendar quarter to a participant or
          beneficiary who has the right to direct the investment of
          assets in his or her account under the plan,
            (ii) at least once each calendar year to a participant or
          beneficiary who has his or her own account under the plan but
          does not have the right to direct the investment of assets in
          that account, and
            (iii) upon written request to a plan beneficiary not
          described in clause (i) or (ii).
        (B) Defined benefit plan
          The administrator of a defined benefit plan (other than a one-
        participant retirement plan described in section 1021(i)(8)(B)
        of this title) shall furnish a pension benefit statement - 
            (i) at least once every 3 years to each participant with a
          nonforfeitable accrued benefit and who is employed by the
          employer maintaining the plan at the time the statement is to
          be furnished, and
            (ii) to a participant or beneficiary of the plan upon
          written request.

        Information furnished under clause (i) to a participant may be
        based on reasonable estimates determined under regulations
        prescribed by the Secretary, in consultation with the Pension
        Benefit Guaranty Corporation.
      (2) Statements
        (A) In general
          A pension benefit statement under paragraph (1) - 
            (i) shall indicate, on the basis of the latest available
          information - 
              (I) the total benefits accrued, and
              (II) the nonforfeitable pension benefits, if any, which
            have accrued, or the earliest date on which benefits will
            become nonforfeitable,

            (ii) shall include an explanation of any permitted
          disparity under section 401(l) of title 26 or any floor-
          offset arrangement that may be applied in determining any
          accrued benefits described in clause (i),
            (iii) shall be written in a manner calculated to be
          understood by the average plan participant, and
            (iv) may be delivered in written, electronic, or other
          appropriate form to the extent such form is reasonably
          accessible to the participant or beneficiary.
        (B) Additional information
          In the case of an individual account plan, any pension
        benefit statement under clause (i) or (ii) of paragraph (1)(A)
        shall include - 
            (i) the value of each investment to which assets in the
          individual account have been allocated, determined as of the
          most recent valuation date under the plan, including the
          value of any assets held in the form of employer securities,
          without regard to whether such securities were contributed by
          the plan sponsor or acquired at the direction of the plan or
          of the participant or beneficiary, and
            (ii) in the case of a pension benefit statement under
          paragraph (1)(A)(i) - 
              (I) an explanation of any limitations or restrictions on
            any right of the participant or beneficiary under the plan
            to direct an investment,
              (II) an explanation, written in a manner calculated to be
            understood by the average plan participant, of the
            importance, for the long-term retirement security of
            participants and beneficiaries, of a well-balanced and
            diversified investment portfolio, including a statement of
            the risk that holding more than 20 percent of a portfolio
            in the security of one entity (such as employer securities)
            may not be adequately diversified, and
              (III) a notice directing the participant or beneficiary
            to the Internet website of the Department of Labor for
            sources of information on individual investing and
            diversification.
        (C) Alternative notice
          The requirements of subparagraph (A)(i)(II) are met if, at
        least annually and in accordance with requirements of the
        Secretary, the plan - 
            (i) updates the information described in such paragraph
          which is provided in the pension benefit statement, or
            (ii) provides in a separate statement such information as
          is necessary to enable a participant or beneficiary to
          determine their nonforfeitable vested benefits.
      (3) Defined benefit plans
        (A) Alternative notice
          In the case of a defined benefit plan, the requirements of
        paragraph (1)(B)(i) shall be treated as met with respect to a
        participant if at least once each year the administrator
        provides to the participant notice of the availability of the
        pension benefit statement and the ways in which the participant
        may obtain such statement. Such notice may be delivered in
        written, electronic, or other appropriate form to the extent
        such form is reasonably accessible to the participant.
        (B) Years in which no benefits accrue
          The Secretary may provide that years in which no employee or
        former employee benefits (within the meaning of section 410(b)
        of title 26) under the plan need not be taken into account in
        determining the 3-year period under paragraph (1)(B)(i).
    (b) Limitation on number of statements
      In no case shall a participant or beneficiary of a plan be
    entitled to more than 1 statement described in subparagraph
    (A)(iii) or (B)(ii) of subsection (a)(1), whichever is applicable,
    in any 12-month period.
    (c) Individual statement furnished by administrator to participants
      setting forth information in administrator's Internal Revenue
      registration statement and notification of forfeitable benefits
      Each administrator required to register under section 6057 of
    title 26 shall, before the expiration of the time prescribed for
    such registration, furnish to each participant described in
    subsection (a)(2)(C) of such section, an individual statement
    setting forth the information with respect to such participant
    required to be contained in the registration statement required by
    section 6057(a)(2) of title 26. Such statement shall also include a
    notice to the participant of any benefits which are forfeitable if
    the participant dies before a certain date.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 105, Sept. 2, 1974, 88 Stat. 849;
    Pub. L. 98-397, title I, Sec. 106, Aug. 23, 1984, 98 Stat. 1436;
    Pub. L. 101-239, title VII, Secs. 7891(a)(1), 7894(b)(5), Dec. 19,
    1989, 103 Stat. 2445, 2448; Pub. L. 109-280, title V, Sec.
    508(a)(1)-(2)(B), Aug. 17, 2006, 120 Stat. 949, 951.)


-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (a). Pub. L. 109-280, Sec. 508(a)(1), amended
    heading and text of subsec. (a) generally. Prior to amendment, text
    read as follows: "Each administrator of an employee pension benefit
    plan shall furnish to any plan participant or beneficiary who so
    requests in writing, a statement indicating, on the basis of the
    latest available information - 
        "(1) the total benefits accrued, and
        "(2) the nonforfeitable pension benefits, if any, which have
      accrued, or the earliest date on which benefits will become
      nonforfeitable."
      Subsec. (b). Pub. L. 109-280, Sec. 508(a)(2)(B), amended heading
    and text of subsec. (b) generally. Prior to amendment, text read as
    follows: "In no case shall a participant or beneficiary be entitled
    under this section to receive more than one report described in
    subsection (a) of this section during any one 12-month period."
      Subsec. (d). Pub. L. 109-280, Sec. 508(a)(2)(A), struck out
    heading and text of subsec. (d). Text read as follows: "Subsection
    (a) of this section shall apply to a plan to which more than one
    unaffiliated employer is required to contribute only to the extent
    provided in regulations prescribed by the Secretary in coordination
    with the Secretary of the Treasury."
      1989 - Subsec. (b). Pub. L. 101-239, Sec. 7894(b)(5), substituted
    "12-month" for "12 month".
      Subsec. (c). Pub. L. 101-239, Sec. 7891(a)(1), substituted
    "Internal Revenue Code of 1986" for "Internal Revenue Code of
    1954", which for purposes of codification was translated as "title
    26" thus requiring no change in text.
      1984 - Subsec. (c). Pub. L. 98-397 inserted at end "Such
    statement shall also include a notice to the participant of any
    benefits which are forfeitable if the participant dies before a
    certain date."

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Pub. L. 109-280, title V, Sec. 508(c), Aug. 17, 2006, 120 Stat.
    952, provided that:
      "(1) In general. - The amendments made by this section [amending
    this section and section 1132 of this title] shall apply to plan
    years beginning after December 31, 2006.
      "(2) Special rule for collectively bargained agreements. - In the
    case of a plan maintained pursuant to 1 or more collective
    bargaining agreements between employee representatives and 1 or
    more employers ratified on or before the date of the enactment of
    this Act [Aug. 17, 2006], paragraph (1) shall be applied to
    benefits pursuant to, and individuals covered by, any such
    agreement by substituting for 'December 31, 2006' the earlier of - 
        "(A) the later of - 
          "(i) December 31, 2007, or
          "(ii) the date on which the last of such collective
        bargaining agreements terminates (determined without regard to
        any extension thereof after such date of enactment), or
        "(B) December 31, 2008."

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by section 7891(a)(1) of Pub. L. 101-239 effective,
    except as otherwise provided, as if included in the provision of
    the Tax Reform Act of 1986, Pub. L. 99-514, to which such amendment
    relates, see section 7891(f) of Pub. L. 101-239, set out as a note
    under section 1002 of this title.
      Amendment by section 7894(b)(5) of Pub. L. 101-239 effective,
    except as otherwise provided, as if originally included in the
    provision of the Employee Retirement Income Security Act of 1974,
    Pub. L. 93-406, to which such amendment relates, see section
    7894(i) of Pub. L. 101-239, set out as a note under section 1002 of
    this title.

                     EFFECTIVE DATE OF 1984 AMENDMENT                 
      Amendment by Pub. L. 98-397 applicable to plan years beginning
    after Dec. 31, 1984, except as otherwise provided, see sections 302
    and 303 of Pub. L. 98-397, set out as a note under section 1001 of
    this title.

                                REGULATIONS                            
      Secretary of Labor authorized, effective Sept. 2, 1974, to
    promulgate regulations wherever provisions of this subchapter call
    for the promulgation of regulations by him, see section 1031 of
    this title.

                             MODEL STATEMENTS                         
      Pub. L. 109-280, title V, Sec. 508(b), Aug. 17, 2006, 120 Stat.
    951, provided that:
      "(1) In general. - The Secretary of Labor shall, within 1 year
    after the date of the enactment of this section [Aug. 17, 2006],
    develop 1 or more model benefit statements that are written in a
    manner calculated to be understood by the average plan participant
    and that may be used by plan administrators in complying with the
    requirements of section 105 of the Employee Retirement Income
    Security Act of 1974 [29 U.S.C. 1025].
      "(2) Interim final rules. - The Secretary of Labor may promulgate
    any interim final rules as the Secretary determines appropriate to
    carry out the provisions of this subsection."

-End-



-CITE-
    29 USC Sec. 1026                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 1 - reporting and disclosure

-HEAD-
    Sec. 1026. Reports made public information

-STATUTE-
      (a) Except as provided in subsection (b) of this section, the
    contents of the annual reports, statements, and other documents
    filed with the Secretary pursuant to this part shall be public
    information and the Secretary shall make any such information and
    data available for inspection in the public document room of the
    Department of Labor. The Secretary may use the information and data
    for statistical and research purposes, and compile and publish such
    studies, analyses, reports, and surveys based thereon as he may
    deem appropriate.
      (b) Information described in sections 1025(a) and 1025(c) of this
    title with respect to a participant may be disclosed only to the
    extent that information respecting that participant's benefits
    under title II of the Social Security Act [42 U.S.C. 401 et seq.]
    may be disclosed under such Act.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 106, Sept. 2, 1974, 88 Stat. 850;
    Pub. L. 101-239, title VII, Sec. 7894(b)(6), Dec. 19, 1989, 103
    Stat. 2448; Pub. L. 105-34, title XV, Sec. 1503(d)(4), Aug. 5,
    1997, 111 Stat. 1062.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Social Security Act, referred to in subsec. (b), is act Aug.
    14, 1935, ch. 531, 49 Stat. 620, as amended. Title II of the Social
    Security Act is classified generally to subchapter II (Sec. 401 et
    seq.) of chapter 7 of Title 42, The Public Health and Welfare. For
    complete classification of this Act to the Code, see section 1305
    of Title 42 and Tables.


-MISC1-
                                AMENDMENTS                            
      1997 - Subsec. (a). Pub. L. 105-34 struck out "descriptions,"
    before "annual reports,".
      1989 - Subsec. (b). Pub. L. 101-239 substituted "sections" for
    "section".

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by Pub. L. 101-239 effective, except as otherwise
    provided, as if originally included in the provision of the
    Employee Retirement Income Security Act of 1974, Pub. L. 93-406, to
    which such amendment relates, see section 7894(i) of Pub. L. 101-
    239, set out as a note under section 1002 of this title.

-End-



-CITE-
    29 USC Sec. 1027                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 1 - reporting and disclosure

-HEAD-
    Sec. 1027. Retention of records

-STATUTE-
      Every person subject to a requirement to file any report or to
    certify any information therefor under this subchapter or who would
    be subject to such a requirement but for an exemption or simplified
    reporting requirement under section 1024(a)(2) or (3) of this title
    shall maintain records on the matters of which disclosure is
    required which will provide in sufficient detail the necessary
    basic information and data from which the documents thus required
    may be verified, explained, or clarified, and checked for accuracy
    and completeness, and shall include vouchers, worksheets, receipts,
    and applicable resolutions, and shall keep such records available
    for examination for a period of not less than six years after the
    filing date of the documents based on the information which they
    contain, or six years after the date on which such documents would
    have been filed but for an exemption or simplified reporting
    requirement under section 1024(a)(2) or (3) of this title.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 107, Sept. 2, 1974, 88 Stat. 850;
    Pub. L. 105-34, title XV, Sec. 1503(d)(5), Aug. 5, 1997, 111 Stat.
    1062.)


-MISC1-
                                AMENDMENTS                            
      1997 - Pub. L. 105-34 struck out "description or" after
    "requirement to file any".

-End-



-CITE-
    29 USC Sec. 1028                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 1 - reporting and disclosure

-HEAD-
    Sec. 1028. Reliance on administrative interpretations

-STATUTE-
      In any criminal proceeding under section 1131 of this title,
    based on any act or omission in alleged violation of this part or
    section 1112 of this title, no person shall be subject to any
    liability or punishment for or on account of the failure of such
    person to (1) comply with this part or section 1112 of this title,
    if he pleads and proves that the act or omission complained of was
    in good faith, in conformity with, and in reliance on any
    regulation or written ruling of the Secretary, or (2) publish and
    file any information required by any provision of this part if he
    pleads and proves that he published and filed such information in
    good faith, and in conformity with any regulation or written ruling
    of the Secretary issued under this part regarding the filing of
    such reports. Such a defense, if established, shall be a bar to the
    action or proceeding, notwithstanding that (A) after such act or
    omission, such interpretation or opinion is modified or rescinded
    or is determined by judicial authority to be invalid or of no legal
    effect, or (B) after publishing or filing the annual reports and
    other reports required by this subchapter, such publication or
    filing is determined by judicial authority not to be in conformity
    with the requirements of this part.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 108, Sept. 2, 1974, 88 Stat. 850;
    Pub. L. 101-239, title VII, Sec. 7894(b)(7), Dec. 19, 1989, 103
    Stat. 2448; Pub. L. 105-34, title XV, Sec. 1503(d)(6), Aug. 5,
    1997, 111 Stat. 1062.)


-MISC1-
                                AMENDMENTS                            
      1997 - Pub. L. 105-34, which directed the amendment of cl. (2)(B)
    by substituting "annual reports" for "plan descriptions, annual
    reports,", was executed by making the substitution for "plan
    description, annual reports," to reflect the probable intent of
    Congress.
      1989 - Pub. L. 101-239 substituted "act or omission" for "act of
    omission" before "complained of".

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by Pub. L. 101-239 effective, except as otherwise
    provided, as if originally included in the provision of the
    Employee Retirement Income Security Act of 1974, Pub. L. 93-406, to
    which such amendment relates, see section 7894(i) of Pub. L. 101-
    239, set out as a note under section 1002 of this title.

                                REGULATIONS                            
      Secretary authorized, effective Sept. 2, 1974, to promulgate
    regulations wherever provisions of this subchapter call for the
    promulgation of regulations, see section 1031 of this title.

-End-



-CITE-
    29 USC Sec. 1029                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 1 - reporting and disclosure

-HEAD-
    Sec. 1029. Forms

-STATUTE-
    (a) Information required on forms
      Except as provided in subsection (b) of this section, the
    Secretary may require that any information required under this
    subchapter to be submitted to him, including but not limited to the
    information required to be filed by the administrator pursuant to
    section 1023(b)(3) and (c) of this title, must be submitted on such
    forms as he may prescribe.
    (b) Information not required on forms
      The financial statement and opinion required to be prepared by an
    independent qualified public accountant pursuant to section
    1023(a)(3)(A) of this title, the actuarial statement required to be
    prepared by an enrolled actuary pursuant to section 1023(a)(4)(A)
    of this title and the summary plan description required by section
    1022(a) of this title shall not be required to be submitted on
    forms.
    (c) Format and content of summary plan description, annual report,
      etc., required to be furnished to plan participants and
      beneficiaries
      The Secretary may prescribe the format and content of the summary
    plan description, the summary of the annual report described in
    section 1024(b)(3) of this title and any other report, statements
    or documents (other than the bargaining agreement, trust agreement,
    contract, or other instrument under which the plan is established
    or operated), which are required to be furnished or made available
    to plan participants and beneficiaries receiving benefits under the
    plan.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 109, Sept. 2, 1974, 88 Stat. 850.)


-MISC1-
                                REGULATIONS                            
      Secretary authorized, effective Sept. 2, 1974, to promulgate
    regulations wherever provisions of this subchapter call for the
    promulgation of regulations, see section 1031 of this title.

-End-



-CITE-
    29 USC Sec. 1030                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 1 - reporting and disclosure

-HEAD-
    Sec. 1030. Alternative methods of compliance

-STATUTE-
      (a) The Secretary on his own motion or after having received the
    petition of an administrator may prescribe an alternative method
    for satisfying any requirement of this part with respect to any
    pension plan, or class of pension plans, subject to such
    requirement if he determines - 
        (1) that the use of such alternative method is consistent with
      the purposes of this subchapter and that it provides adequate
      disclosure to the participants and beneficiaries in the plan, and
      adequate reporting to the Secretary,
        (2) that the application of such requirement of this part would
      - 
          (A) increase the costs to the plan, or
          (B) impose unreasonable administrative burdens with respect
        to the operation of the plan, having regard to the particular
        characteristics of the plan or the type of plan involved; and

        (3) that the application of this part would be adverse to the
      interests of plan participants in the aggregate.

      (b) An alternative method may be prescribed under subsection (a)
    of this section by regulation or otherwise. If an alternative
    method is prescribed other than by regulation, the Secretary shall
    provide notice and an opportunity for interested persons to present
    their views, and shall publish in the Federal Register the
    provisions of such alternative method.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 110, Sept. 2, 1974, 88 Stat. 851.)


-MISC1-
                                REGULATIONS                            
      Secretary authorized, effective Sept. 2, 1974, to promulgate
    regulations wherever provisions of this subchapter call for the
    promulgation of regulations, see section 1031 of this title.

-End-



-CITE-
    29 USC Sec. 1031                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 1 - reporting and disclosure

-HEAD-
    Sec. 1031. Repeal and effective date

-STATUTE-
      (a)(1) The Welfare and Pension Plans Disclosure Act [29 U.S.C.
    301 et seq.] is repealed except that such Act shall continue to
    apply to any conduct and events which occurred before the effective
    date of this part.
      (2)(A) Section 664 of title 18 is amended by striking out "any
    such plan subject to the provisions of the Welfare and Pension
    Plans Disclosure Act" and inserting in lieu thereof "any employee
    benefit plan subject to any provisions of title I of the Employee
    Retirement Income Security Act of 1974".
      (B)(i) Section 1027 of such title 18 is amended by striking out
    "Welfare and Pension Plans Disclosure Act" and inserting in lieu
    thereof "title I of the Employee Retirement Income Security Act of
    1974", and by striking out "Act" each place it appears and
    inserting in lieu thereof "title".
      (ii) The heading for such section is amended by striking out
    "welfare and pension plans disclosure act" and inserting in lieu
    thereof "employee retirement income security act of 1974".
      (iii) The table of sections of chapter 47 of such title 18 is
    amended by striking out "Welfare and Pension Plans Disclosure Act"
    in the item relating to section 1027 and inserting in lieu thereof
    "Employee Retirement Income Security Act of 1974".
      (C) Section 1954 of such title 18 is amended by striking out "any
    plan subject to the provisions of the Welfare and Pension Plans
    Disclosure Act as amended" and inserting in lieu thereof "any
    employee welfare benefit plan or employee pension benefit plan,
    respectively, subject to any provision of title I of the Employee
    Retirement Income Security Act of 1974"; and by striking out
    "sections 3(3) and 5(b)(1) and (2) of the Welfare and Pension Plans
    Disclosure Act, as amended" and inserting in lieu thereof "sections
    3(4) and (3)(16) (!1) of the Employee Retirement Income Security
    Act of 1974".

      (D) Section 211 of the Labor-Management Reporting and Disclosure
    Act of 1959 (29 U.S.C. 441) is amended by striking out "Welfare and
    Pension Plans Disclosure Act" and inserting in lieu thereof
    "Employee Retirement Income Security Act of 1974".
      (b)(1) Except as provided in paragraph (2), this part (including
    the amendments and repeals made by subsection (a) of this section)
    shall take effect on January 1, 1975.
      (2) In the case of a plan which has a plan year which begins
    before January 1, 1975, and ends after December 31, 1974, the
    Secretary may postpone by regulation the effective date of the
    repeal of any provision of the Welfare and Pension Plans Disclosure
    Act (and of any amendment made by subsection (a)(2) of this
    section) and the effective date of any provision of this part,
    until the beginning of the first plan year of such plan which
    begins after January 1, 1975.
      (c) The provisions of this subchapter authorizing the Secretary
    to promulgate regulations shall take effect on September 2, 1974.
      (d) Subsections (b) and (c) of this section shall not apply with
    respect to amendments made to this part in provisions enacted after
    September 2, 1974.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 111, Sept. 2, 1974, 88 Stat. 851;
    Pub. L. 101-239, title VII, Sec. 7894(h)(1), Dec. 19, 1989, 103
    Stat. 2451.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Welfare and Pension Plans Disclosure Act, referred to in
    subsecs. (a) and (b)(2), is Pub. L. 85-836, Aug. 28, 1958, 72 Stat.
    997, as amended, which was classified generally to chapter 10 (Sec.
    301 et seq.) of this title. For complete classification of this Act
    to the Code, see Short Title note set out under section 301 of this
    title and Tables.
      Title I of the Employee Retirement Income Security Act of 1974,
    referred to in subsec. (a)(2)(A) to (C), means title I of Pub. L.
    93-406, which enacted this subchapter, amended section 441 of this
    title, section 5108 of Title 5, Government Organization and
    Employees, and sections 664, 1027, and 1954 of Title 18, Crimes and
    Criminal Procedure, and repealed sections 301 to 309 of this title.
      The Employee Retirement Income Security Act of 1974, referred to
    in subsec. (a)(2)(B)(ii), (iii), (D), is Pub. L. 93-406, Sept. 2,
    1974, 88 Stat. 829, as amended. Titles I, III, and IV of such act
    are classified principally to this chapter. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 1001 of this title and Tables.


-MISC1-
                                AMENDMENTS                            
      1989 - Subsec. (d). Pub. L. 101-239 added subsec. (d).

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by Pub. L. 101-239 effective, except as otherwise
    provided, as if originally included in the provision of the
    Employee Retirement Income Security Act of 1974, Pub. L. 93-406, to
    which such amendment relates, see section 7894(i) of Pub. L. 101-
    239, set out as a note under section 1002 of this title.

-FOOTNOTE-
    (!1) So in original. Probably should be "3(16)".


-End-


-CITE-
    29 USC part 2 - participation and vesting                   01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 2 - participation and vesting

-HEAD-
                    PART 2 - PARTICIPATION AND VESTING                

-End-



-CITE-
    29 USC Sec. 1051                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 2 - participation and vesting

-HEAD-
    Sec. 1051. Coverage

-STATUTE-
      This part shall apply to any employee benefit plan described in
    section 1003(a) of this title (and not exempted under section
    1003(b) of this title) other than - 
        (1) an employee welfare benefit plan;
        (2) a plan which is unfunded and is maintained by an employer
      primarily for the purpose of providing deferred compensation for
      a select group of management or highly compensated employees;
        (3)(A) a plan established and maintained by a society, order,
      or association described in section 501(c)(8) or (9) of title 26,
      if no part of the contributions to or under such plan are made by
      employers of participants in such plan, or
        (B) a trust described in section 501(c)(18) of title 26;
        (4) a plan which is established and maintained by a labor
      organization described in section 501(c)(5) of title 26 and which
      does not at any time after September 2, 1974, provide for
      employer contributions;
        (5) any agreement providing payments to a retired partner or a
      deceased partner's successor in interest, as described in section
      736 of title 26;
        (6) an individual retirement account or annuity described in
      section 408 of title 26, or a retirement bond described in
      section 409 of title 26 (as effective for obligations issued
      before January 1, 1984);
        (7) an excess benefit plan; or
        (8) any plan, fund or program under which an employer, all of
      whose stock is directly or indirectly owned by employees, former
      employees or their beneficiaries, proposes through an unfunded
      arrangement to compensate retired employees for benefits which
      were forfeited by such employees under a pension plan maintained
      by a former employer prior to the date such pension plan became
      subject to this chapter.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 201, Sept. 2, 1974, 88 Stat. 852;
    Pub. L. 96-364, title IV, Sec. 411(a), Sept. 26, 1980, 94 Stat.
    1308; Pub. L. 101-239, title VII, Secs. 7891(a)(1), 7894(c)(1)(A),
    (11)(A), Dec. 19, 1989, 103 Stat. 2445, 2448, 2449.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 409 of title 26, referred to in par. (6), means section
    409 of Title 26, Internal Revenue Code, prior to its repeal by Pub.
    L. 98-369, div. A, title IV, Sec. 491(b), July 18, 1984, 98 Stat.
    848, applicable to obligations issued after Dec. 31, 1983.
      This chapter, referred to in par. (8), was in the original "this
    Act", meaning Pub. L. 93-406, known as the Employee Retirement
    Income Security Act of 1974. Titles I, III, and IV of such Act are
    classified principally to this chapter. For complete classification
    of this Act to the Code, see Short Title note set out under section
    1001 of this title and Tables.


-MISC1-
                                AMENDMENTS                            
      1989 - Pars. (3)(A), (4), (5). Pub. L. 101-239, Sec. 7891(a)(1),
    substituted "Internal Revenue Code of 1986" for "Internal Revenue
    Code of 1954", which for purposes of codification was translated as
    "title 26" thus requiring no change in text.
      Par. (6). Pub. L. 101-239, Sec. 7891(a)(1), substituted "section
    408 of the Internal Revenue Code of 1986" for "section 408 of the
    Internal Revenue Code of 1954", which for purposes of codification
    was translated as "section 408 of title 26" thus requiring no
    change in text.
      Pub. L. 101-239, Sec. 7894(c)(11)(A), substituted "section 409 of
    title 26 (as effective for obligations issued before January 1,
    1984)" for "section 409 of title 26".
      Pub. L. 101-239, Sec. 7894(c)(1)(A)(i), struck out "or" after
    semicolon at end.
      Par. (7). Pub. L. 101-239, Sec. 7894(c)(1)(A)(ii), substituted
    "plan; or" for "plan."
      Par. (8). Pub. L. 101-239, Sec. 7894(c)(1)(A)(iii), substituted
    "any plan" for "Any plan".
      1980 - Par. (8). Pub. L. 96-364 added par. (8).

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by section 7891(a)(1) of Pub. L. 101-239 effective,
    except as otherwise provided, as if included in the provision of
    the Tax Reform Act of 1986, Pub. L. 99-514, to which such amendment
    relates, see section 7891(f) of Pub. L. 101-239, set out as a note
    under section 1002 of this title.
      Section 7894(c)(1)(B) of Pub. L. 101-239 provided that: "The
    amendments made by subparagraph (A) [amending this section] shall
    take effect as if included in section 411 of the Multiemployer
    Pension Plan Amendments Act of 1980 [Pub. L. 96-364]."
      Section 7894(c)(11)(B) of Pub. L. 101-239 provided that: "The
    amendment made by subparagraph (A) [amending this section] shall
    take effect as if originally included in section 491(b) of Public
    Law 98-369."

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-364 effective Sept. 26, 1980, except as
    specifically provided, see section 1461(e) of this title.

-End-



-CITE-
    29 USC Sec. 1052                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 2 - participation and vesting

-HEAD-
    Sec. 1052. Minimum participation standards

-STATUTE-
      (a)(1)(A) No pension plan may require, as a condition of
    participation in the plan, that an employee complete a period of
    service with the employer or employers maintaining the plan
    extending beyond the later of the following dates - 
        (i) the date on which the employee attains the age of 21; or
        (ii) the date on which he completes 1 year of service.

      (B)(i) In the case of any plan which provides that after not more
    than 2 years of service each participant has a right to 100 percent
    of his accrued benefit under the plan which is nonforfeitable at
    the time such benefit accrues, clause (ii) of subparagraph (A)
    shall be applied by substituting "2 years of service" for "1 year
    of service".
      (ii) In the case of any plan maintained exclusively for employees
    of an educational organization (as defined in section
    170(b)(1)(A)(ii) of title 26) by an employer which is exempt from
    tax under section 501(a) of title 26, which provides that each
    participant having at least 1 year of service has a right to 100
    percent of his accrued benefit under the plan which is
    nonforfeitable at the time such benefit accrues, clause (i) of
    subparagraph (A) shall be applied by substituting "26" for "21".
    This clause shall not apply to any plan to which clause (i)
    applies.
      (2) No pension plan may exclude from participation (on the basis
    of age) employees who have attained a specified age.
      (3)(A) For purposes of this section, the term "year of service"
    means a 12-month period during which the employee has not less than
    1,000 hours of service. For purposes of this paragraph, computation
    of any 12-month period shall be made with reference to the date on
    which the employee's employment commenced, except that, in
    accordance with regulations prescribed by the Secretary, such
    computation may be made by reference to the first day of a plan
    year in the case of an employee who does not complete 1,000 hours
    of service during the 12-month period beginning on the date his
    employment commenced.
      (B) In the case of any seasonal industry where the customary
    period of employment is less than 1,000 hours during a calendar
    year, the term "year of service" shall be such period as may be
    determined under regulations prescribed by the Secretary.
      (C) For purposes of this section, the term "hour of service"
    means a time of service determined under regulations prescribed by
    the Secretary.
      (D) For purposes of this section, in the case of any maritime
    industry, 125 days of service shall be treated as 1,000 hours of
    service. The Secretary may prescribe regulations to carry out the
    purposes of this subparagraph.
      (4) A plan shall be treated as not meeting the requirements of
    paragraph (1) unless it provides that any employee who has
    satisfied the minimum age and service requirements specified in
    such paragraph, and who is otherwise entitled to participate in the
    plan, commences participation in the plan no later than the earlier
    of - 
        (A) the first day of the first plan year beginning after the
      date on which such employee satisfied such requirements, or
        (B) the date 6 months after the date on which he satisfied such
      requirements,

    unless such employee was separated from the service before the date
    referred to in subparagraph (A) or (B), whichever is applicable.
      (b)(1) Except as otherwise provided in paragraphs (2), (3), and
    (4), all years of service with the employer or employers
    maintaining the plan shall be taken into account in computing the
    period of service for purposes of subsection (a)(1) of this
    section.
      (2) In the case of any employee who has any 1-year break in
    service (as defined in section 1053(b)(3)(A) of this title) under a
    plan to which the service requirements of clause (i) of subsection
    (a)(1)(B) of this section apply, if such employee has not satisfied
    such requirements, service before such break shall not be required
    to be taken into account.
      (3) In computing an employee's period of service for purposes of
    subsection (a)(1) of this section in the case of any participant
    who has any 1-year break in service (as defined in section
    1053(b)(3)(A) of this title), service before such break shall not
    be required to be taken into account under the plan until he has
    completed a year of service (as defined in subsection (a)(3) of
    this section) after his return.
      (4)(A) For purposes of paragraph (1), in the case of a nonvested
    participant, years of service with the employer or employers
    maintaining the plan before any period of consecutive 1-year breaks
    in service shall not be required to be taken into account in
    computing the period of service if the number of consecutive 1-year
    breaks in service within such period equals or exceeds the greater
    of - 
        (i) 5, or
        (ii) the aggregate number of years of service before such
      period.

      (B) If any years of service are not required to be taken into
    account by reason of a period of breaks in service to which
    subparagraph (A) applies, such years of service shall not be taken
    into account in applying subparagraph (A) to a subsequent period of
    breaks in service.
      (C) For purposes of subparagraph (A), the term "nonvested
    participant" means a participant who does not have any
    nonforfeitable right under the plan to an accrued benefit derived
    from employer contributions.
      (5)(A) In the case of each individual who is absent from work for
    any period - 
        (i) by reason of the pregnancy of the individual,
        (ii) by reason of the birth of a child of the individual,
        (iii) by reason of the placement of a child with the individual
      in connection with the adoption of such child by such individual,
      or
        (iv) for purposes of caring for such child for a period
      beginning immediately following such birth or placement,

    the plan shall treat as hours of service, solely for purposes of
    determining under this subsection whether a 1-year break in service
    (as defined in section 1053(b)(3)(A) of this title) has occurred,
    the hours described in subparagraph (B).
      (B) The hours described in this subparagraph are - 
        (i) the hours of service which otherwise would normally have
      been credited to such individual but for such absence, or
        (ii) in any case in which the plan is unable to determine the
      hours described in clause (i), 8 hours of service per day of such
      absence,

    except that the total number of hours treated as hours of service
    under this subparagraph by reason of any such pregnancy or
    placement shall not exceed 501 hours.
      (C) The hours described in subparagraph (B) shall be treated as
    hours of service as provided in this paragraph - 
        (i) only in the year in which the absence from work begins, if
      a participant would be prevented from incurring a 1-year break in
      service in such year solely because the period of absence is
      treated as hours of service as provided in subparagraph (A); or
        (ii) in any other case, in the immediately following year.

      (D) For purposes of this paragraph, the term "year" means the
    period used in computations pursuant to subsection (a)(3)(A) of
    this section.
      (E) A plan may provide that no credit will be given pursuant to
    this paragraph unless the individual furnishes to the plan
    administrator such timely information as the plan may reasonably
    require to establish - 
        (i) that the absence from work is for reasons referred to in
      subparagraph (A), and
        (ii) the number of days for which there was such an absence.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 202, Sept. 2, 1974, 88 Stat. 853;
    Pub. L. 98-397, title I, Sec. 102(a), (d)(1), (e)(1), Aug. 23,
    1984, 98 Stat. 1426, 1427; Pub. L. 99-509, title IX, Sec.
    9203(a)(1), Oct. 21, 1986, 100 Stat. 1979; Pub. L. 99-514, title
    XI, Sec. 1113(e)(3), Oct. 22, 1986, 100 Stat. 2448; Pub. L. 101-
    239, title VII, Secs. 7861(a)(2), 7891(a)(1), 7892(a), 7894(c)(2),
    Dec. 19, 1989, 103 Stat. 2430, 2445, 2447, 2449.)


-MISC1-
                                AMENDMENTS                            
      1989 - Subsec. (a)(1)(B)(i). Pub. L. 101-239, Sec. 7861(a)(2),
    made technical correction to directory language of Pub. L. 99-514.
    See 1986 Amendment note below.
      Subsec. (a)(1)(B)(ii). Pub. L. 101-239, Sec. 7894(c)(2)(A),
    substituted "educational organization" for "educational
    institution".
      Pub. L. 101-239, Sec. 7891(a)(1), substituted "Internal Revenue
    Code of 1986" for "Internal Revenue Code of 1954", which for
    purposes of codification was translated as "title 26" thus
    requiring no change in text.
      Subsec. (a)(2). Pub. L. 101-239, Sec. 7892(a), struck out comma
    after "specified age".
      Subsec. (b)(2). Pub. L. 101-239, Sec. 7894(c)(2)(B), substituted
    "a plan" for "the plan".
      1986 - Subsec. (a)(1)(B)(i). Pub. L. 99-514, as amended by Pub.
    L. 101-239, Sec. 7861(a)(2), substituted "2 years of service" for
    "3 years of service" in two places.
      Subsec. (a)(2). Pub. L. 99-509 substituted a period for "unless -
    
        "(A) the plan is a - 
          "(i) defined benefit plan, or
          "(ii) target benefit plan (as defined under regulations
        prescribed by the Secretary of the Treasury), and
        "(B) such employees begin employment with the employer after
      they have attained a specified age which is not more than 5 years
      before the normal retirement age under the plan."
      1984 - Subsec. (a)(1). Pub. L. 98-397, Sec. 102(a), substituted
    "21" for "25" in subpar. (A)(i) and " '26' for '21' " for " '30'
    for '25' " in subpar. (B)(ii).
      Subsec. (b)(4). Pub. L. 98-397, Sec. 102(d)(1), amended par. (4)
    generally. Prior to amendment, par. (4) read as follows: "In the
    case of an employee who does not have any nonforfeitable right to
    an accrued benefit derived from employer contributions, years of
    service with the employer or employers maintaining the plan before
    a break in service shall not be required to be taken into account
    in computing the period of service for purposes of subsection
    (a)(1) of this section if the number of consecutive 1-year breaks
    in service equals or exceeds the aggregate number of such years of
    service before such break. Such aggregate number of years of
    service before such break shall be deemed not to include any years
    of service not required to be taken into account under this
    paragraph by reason of any prior break in service."
      Subsec. (b)(5). Pub. L. 98-397, Sec. 102(e)(1), added par. (5).

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by section 7861(a)(2) of Pub. L. 101-239 effective as
    if included in the provision of the Tax Reform Act of 1986, Pub. L.
    99-514, to which such amendment relates, see section 7863 of Pub.
    L. 101-239, set out as a note under section 106 of Title 26,
    Internal Revenue Code.
      Amendment by section 7891(a)(1) of Pub. L. 101-239 effective,
    except as otherwise provided, as if included in the provision of
    the Tax Reform Act of 1986, Pub. L. 99-514, to which such amendment
    relates, see section 7891(f) of Pub. L. 101-239, set out as a note
    under section 1002 of this title.
      Section 7892(c) of Pub. L. 101-239 provided that: "Any amendment
    made by this section [amending this section and section 1082 of
    this title] shall take effect as if included in the provision of
    the Omnibus Budget Reconciliation Act of 1987 [Pub. L. 100-203,
    probably should refer to Omnibus Budget Reconciliation Act of 1986,
    Pub. L. 99-509] or Pension Protection Act [Pub. L. 100-203, Secs.
    9302-9346, probably should refer to Omnibus Budget Reconciliation
    Act of 1987, Pub. L. 100-203] to which such amendment relates."
      Amendment by section 7894(c)(2) of Pub. L. 101-239 effective,
    except as otherwise provided, as if originally included in the
    provision of the Employee Retirement Income Security Act of 1974,
    Pub. L. 93-406, to which such amendment relates, see section
    7894(i) of Pub. L. 101-239, set out as a note under section 1002 of
    this title.

                     EFFECTIVE DATE OF 1986 AMENDMENTS                 
      Amendment by section 1113(e)(3) of Pub. L. 99-514 applicable to
    plan years beginning after Dec. 31, 1988, with special rule for
    plans maintained pursuant to collective bargaining agreements
    ratified before Mar. 1, 1986, and not applicable to employees who
    do not have 1 hour of service in any plan year to which the
    amendment applies, see section 1113(f) of Pub. L. 99-514, as
    amended, set out as a note under section 411 of Title 26, Internal
    Revenue Code.
      Amendment by Pub. L. 99-509 applicable only with respect to plan
    years beginning on or after Jan. 1, 1988, and only with respect to
    service performed on or after such date, see section 9204 of Pub.
    L. 99-509, set out as an Effective and Termination Dates of 1986
    Amendments note under section 623 of this title.

                     EFFECTIVE DATE OF 1984 AMENDMENT                 
      Amendment by Pub. L. 98-397 applicable to plan years beginning
    after Dec. 31, 1984, except as otherwise provided, see sections 302
    and 303 of Pub. L. 98-397, set out as a note under section 1001 of
    this title.

                                REGULATIONS                            
      Secretary of Labor, Secretary of the Treasury, and Equal
    Employment Opportunity Commission each to issue before Feb. 1,
    1988, final regulations to carry out amendments made by Pub. L. 99-
    509, see section 9204 of Pub. L. 99-509, set out as an Effective
    and Termination Dates of 1986 Amendment note under section 623 of
    this title.
      Secretary authorized, effective Sept. 2, 1974, to promulgate
    regulations wherever provisions of this subchapter call for the
    promulgation of regulations, see section 1031 of this title.

            PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989        
      For provisions directing that if any amendments made by subtitle
    A or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or
    title XVIII [Secs. 1800-1899A] of Pub. L. 99-514 require an
    amendment to any plan, such plan amendment shall not be required to
    be made before the first plan year beginning on or after Jan. 1,
    1989, see section 1140 of Pub. L. 99-514, as amended, set out as a
    note under section 401 of Title 26, Internal Revenue Code.
      For provisions directing that if any amendments made by Pub. L.
    99-509 require an amendment to any plan, such plan amendment shall
    not be required to be made before the first plan year beginning on
    or after Jan. 1, 1989, see section 9204 of Pub. L. 99-509, set out
    as an Effective and Termination Dates of 1986 Amendment note under
    section 623 of this title.

-End-



-CITE-
    29 USC Sec. 1053                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 2 - participation and vesting

-HEAD-
    Sec. 1053. Minimum vesting standards

-STATUTE-
    (a) Nonforfeitability requirements
      Each pension plan shall provide that an employee's right to his
    normal retirement benefit is nonforfeitable upon the attainment of
    normal retirement age and in addition shall satisfy the
    requirements of paragraphs (1) and (2) of this subsection.
        (1) A plan satisfies the requirements of this paragraph if an
      employee's rights in his accrued benefit derived from his own
      contributions are nonforfeitable.
        (2)(A)(i) In the case of a defined benefit plan, a plan
      satisfies the requirements of this paragraph if it satisfies the
      requirements of clause (ii) or (iii).
        (ii) A plan satisfies the requirements of this clause if an
      employee who has completed at least 5 years of service has a
      nonforfeitable right to 100 percent of the employee's accrued
      benefit derived from employer contributions.
        (iii) A plan satisfies the requirements of this clause if an
      employee has a nonforfeitable right to a percentage of the
      employee's accrued benefit derived from employer contributions
      determined under the following table:

            The
                                                         nonforfeitable 
    Years of service:                                     percentage is:
      3                                                        20     
      4                                                        40     
      5                                                        60     
      6                                                        80     
      7 or more                                                100.   

        (B)(i) In the case of an individual account plan, a plan
      satisfies the requirements of this paragraph if it satisfies the
      requirements of clause (ii) or (iii).
        (ii) A plan satisfies the requirements of this clause if an
      employee who has completed at least 3 years of service has a
      nonforfeitable right to 100 percent of the employee's accrued
      benefit derived from employer contributions.
        (iii) A plan satisfies the requirements of this clause if an
      employee has a nonforfeitable right to a percentage of the
      employee's accrued benefit derived from employer contributions
      determined under the following table:

            The
                                                         nonforfeitable 
    Years of service:                                     percentage is:
      2                                                        20     
      3                                                        40     
      4                                                        60     
      5                                                        80     
      6 or more                                                100.   

        (3)(A) A right to an accrued benefit derived from employer
      contributions shall not be treated as forfeitable solely because
      the plan provides that it is not payable if the participant dies
      (except in the case of a survivor annuity which is payable as
      provided in section 1055 of this title).
        (B) A right to an accrued benefit derived from employer
      contributions shall not be treated as forfeitable solely because
      the plan provides that the payment of benefits is suspended for
      such period as the employee is employed, subsequent to the
      commencement of payment of such benefits - 
          (i) in the case of a plan other than a multiemployer plan, by
        an employer who maintains the plan under which such benefits
        were being paid; and
          (ii) in the case of a multiemployer plan, in the same
        industry, in the same trade or craft, and the same geographic
        area covered by the plan, as when such benefits commenced.

      The Secretary shall prescribe such regulations as may be
      necessary to carry out the purposes of this subparagraph,
      including regulations with respect to the meaning of the term
      "employed".
        (C) A right to an accrued benefit derived from employer
      contributions shall not be treated as forfeitable solely because
      plan amendments may be given retroactive application as provided
      in section 1082(c)(8) of this title.
        (D)(i) A right to an accrued benefit derived from employer
      contributions shall not be treated as forfeitable solely because
      the plan provides that, in the case of a participant who does not
      have a nonforfeitable right to at least 50 percent of his accrued
      benefit derived from employer contributions, such accrued benefit
      may be forfeited on account of the withdrawal by the participant
      of any amount attributable to the benefit derived from mandatory
      contributions (as defined in the last sentence of section
      1054(c)(2)(C) of this title) made by such participant.
        (ii) Clause (i) shall not apply to a plan unless the plan
      provides that any accrued benefit forfeited under a plan
      provision described in such clause shall be restored upon
      repayment by the participant of the full amount of the withdrawal
      described in such clause plus, in the case of a defined benefit
      plan, interest. Such interest shall be computed on such amount at
      the rate determined for purposes of section 1054(c)(2)(C) of this
      title (if such subsection applies) on the date of such repayment
      (computed annually from the date of such withdrawal). The plan
      provision required under this clause may provide that such
      repayment must be made (I) in the case of a withdrawal on account
      of separation from service, before the earlier of 5 years after
      the first date on which the participant is subsequently re-
      employed by the employer, or the close of the first period of 5
      consecutive 1-year breaks in service commencing after the
      withdrawal; or (II) in the case of any other withdrawal, 5 years
      after the date of the withdrawal.
        (iii) In the case of accrued benefits derived from employer
      contributions which accrued before September 2, 1974, a right to
      such accrued benefit derived from employer contributions shall
      not be treated as forfeitable solely because the plan provides
      that an amount of such accrued benefit may be forfeited on
      account of the withdrawal by the participant of an amount
      attributable to the benefit derived from mandatory contributions,
      made by such participant before September 2, 1974, if such amount
      forfeited is proportional to such amount withdrawn. This clause
      shall not apply to any plan to which any mandatory contribution
      is made after September 2, 1974. The Secretary of the Treasury
      shall prescribe such regulations as may be necessary to carry out
      the purposes of this clause.
        (iv) For purposes of this subparagraph, in the case of any
      class-year plan, a withdrawal of employee contributions shall be
      treated as a withdrawal of such contributions on a plan year by
      plan year basis in succeeding order of time.
        (v) Cross reference. - 
          For nonforfeitability where the employee has a nonforfeitable
        right to at least 50 percent of his accrued benefit, see
        section 1056(c) of this title.

        (E)(i) A right to an accrued benefit derived from employer
      contributions under a multiemployer plan shall not be treated as
      forfeitable solely because the plan provides that benefits
      accrued as a result of service with the participant's employer
      before the employer had an obligation to contribute under the
      plan may not be payable if the employer ceases contributions to
      the multiemployer plan.
        (ii) A participant's right to an accrued benefit derived from
      employer contributions under a multiemployer plan shall not be
      treated as forfeitable solely because - 
          (I) the plan is amended to reduce benefits under section 1425
        or 1441 of this title, or
          (II) benefit payments under the plan may be suspended under
        section 1426 or 1441 of this title.

        (F) A matching contribution (within the meaning of section
      401(m) of title 26) shall not be treated as forfeitable merely
      because such contribution is forfeitable if the contribution to
      which the matching contribution relates is treated as an excess
      contribution under section 401(k)(8)(B) of title 26, an excess
      deferral under section 402(g)(2)(A) of title 26, or an excess
      aggregate contribution under section 401(m)(6)(B) of title 26.
    (b) Computation of period of service
      (1) In computing the period of service under the plan for
    purposes of determining the nonforfeitable percentage under
    subsection (a)(2) of this section, all of an employee's years of
    service with the employer or employers maintaining the plan shall
    be taken into account, except that the following may be
    disregarded:
        (A) years of service before age 18,(!1)

        (B) years of service during a period for which the employee
      declined to contribute to a plan requiring employee
      contributions,(!1)
        (C) years of service with an employer during any period for
      which the employer did not maintain the plan or a predecessor
      plan, defined by the Secretary of the Treasury;
        (D) service not required to be taken into account under
      paragraph (3);
        (E) years of service before January 1, 1971, unless the
      employee has had at least 3 years of service after December 31,
      1970;
        (F) years of service before this part first applies to the plan
      if such service would have been disregarded under the rules of
      the plan with regard to breaks in service, as in effect on the
      applicable date; and
        (G) in the case of a multiemployer plan, years of service - 
          (i) with an employer after - 
            (I) a complete withdrawal of such employer from the plan
          (within the meaning of section 1383 of this title), or
            (II) to the extent permitted by regulations prescribed by
          the Secretary of the Treasury, a partial withdrawal described
          in section 1385(b)(2)(A)(i) of this title in connection with
          the decertification of the collective bargaining
          representative; and

          (ii) with any employer under the plan after the termination
        date of the plan under section 1348 of this title.

      (2)(A) For purposes of this section, except as provided in
    subparagraph (C), the term "year of service" means a calendar year,
    plan year, or other 12-consecutive month period designated by the
    plan (and not prohibited under regulations prescribed by the
    Secretary) during which the participant has completed 1,000 hours
    of service.
      (B) For purposes of this section, the term "hour of service" has
    the meaning provided by section 1052(a)(3)(C) of this title.
      (C) In the case of any seasonal industry where the customary
    period of employment is less than 1,000 hours during a calendar
    year, the term "year of service" shall be such period as determined
    under regulations of the Secretary.
      (D) For purposes of this section, in the case of any maritime
    industry, 125 days of service shall be treated as 1,000 hours of
    service. The Secretary may prescribe regulations to carry out the
    purposes of this subparagraph.
      (3)(A) For purposes of this paragraph, the term "1-year break in
    service" means a calendar year, plan year, or other 12-consecutive-
    month period designated by the plan (and not prohibited under
    regulations prescribed by the Secretary) during which the
    participant has not completed more than 500 hours of service.
      (B) For purposes of paragraph (1), in the case of any employee
    who has any 1-year break in service, years of service before such
    break shall not be required to be taken into account until he has
    completed a year of service after his return.
      (C) For purposes of paragraph (1), in the case of any participant
    in an individual account plan or an insured defined benefit plan
    which satisfies the requirements of subsection 1054(b)(1)(F) of
    this title who has 5 consecutive 1-year breaks in service, years of
    service after such 5-year period shall not be required to be taken
    into account for purposes of determining the nonforfeitable
    percentage of his accrued benefit derived from employer
    contributions which accrued before such 5-year period.
      (D)(i) For purposes of paragraph (1), in the case of a nonvested
    participant, years of service with the employer or employers
    maintaining the plan before any period of consecutive 1-year breaks
    in service shall not be required to be taken into account if the
    number of consecutive 1-year breaks in service within such period
    equals or exceeds the greater of - 
        (I) 5, or
        (II) the aggregate number of years of service before such
      period.

      (ii) If any years of service are not required to be taken into
    account by reason of a period of breaks in service to which clause
    (i) applies, such years of service shall not be taken into account
    in applying clause (i) to a subsequent period of breaks in service.
      (iii) For purposes of clause (i), the term "nonvested
    participant" means a participant who does not have any
    nonforfeitable right under the plan to an accrued benefit derived
    from employer contributions.
      (E)(i) In the case of each individual who is absent from work for
    any period - 
        (I) by reason of the pregnancy of the individual,
        (II) by reason of the birth of a child of the individual,
        (III) by reason of the placement of a child with the individual
      in connection with the adoption of such child by such individual,
      or
        (IV) for purposes of caring for such child for a period
      beginning immediately following such birth or placement,

    the plan shall treat as hours of service, solely for purposes of
    determining under this paragraph whether a 1-year break in service
    has occurred, the hours described in clause (ii).
      (ii) The hours described in this clause are - 
        (I) the hours of service which otherwise would normally have
      been credited to such individual but for such absence, or
        (II) in any case in which the plan is unable to determine the
      hours described in subclause (I), 8 hours of service per day of
      absence,

    except that the total number of hours treated as hours of service
    under this clause by reason of such pregnancy or placement shall
    not exceed 501 hours.
      (iii) The hours described in clause (ii) shall be treated as
    hours of service as provided in this subparagraph - 
        (I) only in the year in which the absence from work begins, if
      a participant would be prevented from incurring a 1-year break in
      service in such year solely because the period of absence is
      treated as hours of service as provided in clause (i); or
        (II) in any other case, in the immediately following year.

      (iv) For purposes of this subparagraph, the term "year" means the
    period used in computations pursuant to paragraph (2).
      (v) A plan may provide that no credit will be given pursuant to
    this subparagraph unless the individual furnishes to the plan
    administrator such timely information as the plan may reasonably
    require to establish - 
        (I) that the absence from work is for reasons referred to in
      clause (i), and
        (II) the number of days for which there was such an absence.

      (4) Cross references. - 
          (A) For definitions of "accrued benefit" and "normal
        retirement age", see sections 1002(23) and (24) of this title.
          (B) For effect of certain cash out distributions, see section
        1054(d)(1) of this title.
    (c) Plan amendments altering vesting schedule
      (1)(A) A plan amendment changing any vesting schedule under the
    plan shall be treated as not satisfying the requirements of
    subsection (a)(2) of this section if the nonforfeitable percentage
    of the accrued benefit derived from employer contributions
    (determined as of the later of the date such amendment is adopted,
    or the date such amendment becomes effective) of any employee who
    is a participant in the plan is less than such nonforfeitable
    percentage computed under the plan without regard to such
    amendment.
      (B) A plan amendment changing any vesting schedule under the plan
    shall be treated as not satisfying the requirements of subsection
    (a)(2) of this section unless each participant having not less than
    3 years of service is permitted to elect, within a reasonable
    period after adoption of such amendment, to have his nonforfeitable
    percentage computed under the plan without regard to such
    amendment.
      (2) Subsection (a) of this section shall not apply to benefits
    which may not be provided for designated employees in the event of
    early termination of the plan under provisions of the plan adopted
    pursuant to regulations prescribed by the Secretary of the Treasury
    to preclude the discrimination prohibited by section 401(a)(4) of
    title 26.
    (d) Nonforfeitable benefits after lesser period and in greater
      amounts than required
      A pension plan may allow for nonforfeitable benefits after a
    lesser period and in greater amounts than are required by this
    part.
    (e) Consent for distribution; present value; covered distributions
      (1) If the present value of any nonforfeitable benefit with
    respect to a participant in a plan exceeds $5,000, the plan shall
    provide that such benefit may not be immediately distributed
    without the consent of the participant.
      (2) For purposes of paragraph (1), the present value shall be
    calculated in accordance with section 1055(g)(3) of this title.
      (3) This subsection shall not apply to any distribution of
    dividends to which section 404(k) of title 26 applies.
      (4) A plan shall not fail to meet the requirements of this
    subsection if, under the terms of the plan, the present value of
    the nonforfeitable accrued benefit is determined without regard to
    that portion of such benefit which is attributable to rollover
    contributions (and earnings allocable thereto). For purposes of
    this subparagraph, the term "rollover contributions" means any
    rollover contribution under sections 402(c), 403(a)(4), 403(b)(8),
    408(d)(3)(A)(ii), and 457(e)(16) of title 26.
    (f) Special rules for plans computing accrued benefits by reference
      to hypothetical account balance or equivalent amounts
      (1) In general
        An applicable defined benefit plan shall not be treated as
      failing to meet - 
          (A) subject to paragraph (2), the requirements of subsection
        (a)(2), or
          (B) the requirements of section 1054(c) of this title or
        section 1055(g) of this title with respect to contributions
        other than employee contributions,

      solely because the present value of the accrued benefit (or any
      portion thereof) of any participant is, under the terms of the
      plan, equal to the amount expressed as the balance in the
      hypothetical account described in paragraph (3) or as an
      accumulated percentage of the participant's final average
      compensation.
      (2) 3-year vesting
        In the case of an applicable defined benefit plan, such plan
      shall be treated as meeting the requirements of subsection (a)(2)
      only if an employee who has completed at least 3 years of service
      has a nonforfeitable right to 100 percent of the employee's
      accrued benefit derived from employer contributions.
      (3) Applicable defined benefit plan and related rules
        For purposes of this subsection - 
        (A) In general
          The term "applicable defined benefit plan" means a defined
        benefit plan under which the accrued benefit (or any portion
        thereof) is calculated as the balance of a hypothetical account
        maintained for the participant or as an accumulated percentage
        of the participant's final average compensation.
        (B) Regulations to include similar plans
          The Secretary of the Treasury shall issue regulations which
        include in the definition of an applicable defined benefit plan
        any defined benefit plan (or any portion of such a plan) which
        has an effect similar to an applicable defined benefit plan.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 203, Sept. 2, 1974, 88 Stat. 854;
    Pub. L. 96-364, title III, Sec. 303, Sept. 26, 1980, 94 Stat. 1292;
    Pub. L. 98-397, title I, Secs. 102(b), (c), (d)(2), (e)(2), 105(a),
    Aug. 23, 1984, 98 Stat. 1426-1428, 1436; Pub. L. 99-514, title XI,
    Secs. 1113(e)(1), (2), (4)(A), 1139(c)(1), title XVIII, Sec.
    1898(a)(1)(B), (4)(B)(i), (d)(1)(B), (2)(B), Oct. 22, 1986, 100
    Stat. 2447, 2448, 2487, 2942, 2944, 2955; Pub. L. 101-239, title
    VII, Secs. 7861(a)(1), (5)(B), (6)(B), 7862(d)(4), (5), (10),
    7891(a)(1), (b)(1), (2), 7894(c)(3), Dec. 19, 1989, 103 Stat. 2430,
    2434, 2445, 2449; Pub. L. 103-465, title VII, Sec. 767(c)(1), Dec.
    8, 1994, 108 Stat. 5039; Pub. L. 104-188, title I, Sec. 1442(b),
    Aug. 20, 1996, 110 Stat. 1808; Pub. L. 105-34, title X, Sec.
    1071(b)(1), Aug. 5, 1997, 111 Stat. 948; Pub. L. 107-16, title VI,
    Secs. 633(b), 648(a)(2), June 7, 2001, 115 Stat. 116, 127; Pub. L.
    108-311, title IV, Sec. 408(b)(8), Oct. 4, 2004, 118 Stat. 1193;
    Pub. L. 109-280, title I, Sec. 107(a)(4), title VII, Sec.
    701(a)(2), title IX, Secs. 902(d)(2)(E), 904(b), Aug. 17, 2006, 120
    Stat. 819, 984, 1038, 1049.)


-STATAMEND-
                      AMENDMENT OF SUBSECTION (A)(3)                  
      Pub. L. 109-280, title I, Sec. 107(a)(4), (e), Aug. 17, 2006, 120
    Stat. 819, 820, provided that, applicable to plan years beginning
    after 2007, subsection (a)(3)(C) of this section is amended by
    substituting "1082(d)(2)" for "1082(c)(8)".
      Pub. L. 109-280, title IX, Sec. 902(d)(2)(E), (g), Aug. 17, 2006,
    120 Stat. 1038, 1039, provided that, applicable to plan years
    beginning after Dec. 31, 2007, subsection (a)(3)(F) of this section
    is amended by inserting "an erroneous automatic contribution under
    section 414(w) of title 26," before "or an excess aggregate
    contribution".


-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (a)(2). Pub. L. 109-280, Sec. 904(b)(1), amended
    par. (2) generally, substituting provisions relating to
    satisfaction of requirements in the case of a defined benefit plan
    and in the case of an individual account plan for provisions
    relating to satisfaction of requirements if an employee who has
    completed at least 5 years of service has a nonforfeitable right to
    100 percent of the employee's accrued benefit derived from employer
    contributions or if an employee has a nonforfeitable right to a
    percentage of such benefit based upon number of years of service.
      Subsec. (a)(4). Pub. L. 109-280, Sec. 904(b)(2), struck out par.
    (4), which related to application of par. (2) in the case of
    matching contributions, as defined in section 401(m)(4)(A) of title
    26.
      Subsec. (f). Pub. L. 109-280, Sec. 701(a)(2), added subsec. (f).
      2004 - Subsec. (a)(4)(B). Pub. L. 108-311 substituted "6 or more"
    for "6" in table.
      2001 - Subsec. (a)(2). Pub. L. 107-16, Sec. 633(b)(1),
    substituted "Except as provided in paragraph (4), a plan" for "A
    plan" in introductory provisions.
      Subsec. (a)(4). Pub. L. 107-16, Sec. 633(b)(2), added par. (4).
      Subsec. (e)(4). Pub. L. 107-16, Sec. 648(a)(2), added par. (4).
      1997 - Subsec. (e)(1). Pub. L. 105-34 substituted "$5,000" for
    "$3,500".
      1996 - Subsec. (a)(2). Pub. L. 104-188, Sec. 1442(b)(1),
    substituted "subparagraph (A) or (B)" for "subparagraph (A), (B),
    or (C)" in introductory provisions.
      Subsec. (a)(2)(C). Pub. L. 104-188, Sec. 1442(b)(2), struck out
    subpar. (C) which read as follows: "A plan satisfies the
    requirements of this subparagraph if - 
        "(i) the plan is a multiemployer plan (within the meaning of
      section 1002(37)), and
        "(ii) under the plan - 
          "(I) an employee who is covered pursuant to a collective
        bargaining agreement described in section 1002(37)(A)(ii) of
        this title and who has completed at least 10 years of service
        has a nonforfeitable right to 100 percent of the employee's
        accrued benefit derived from employer contributions, and
          "(II) the requirements of subparagraph (A) or (B) are met
        with respect to employees not described in subclause (I)."
      1994 - Subsec. (e)(2). Pub. L. 103-465 amended par. (2)
    generally. Prior to amendment, par. (2) read as follows:
      "(2)(A) For purposes of paragraph (1), the present value shall be
    calculated - 
        "(i) by using an interest rate no greater than the applicable
      interest rate if the vested accrued benefit (using such rate) is
      not in excess of $25,000, and
        "(ii) by using an interest rate no greater than 120 percent of
      the applicable interest rate if the vested accrued benefit
      exceeds $25,000 (as determined under clause (i)).
    In no event shall the present value determined under subclause (II)
    be less than $25,000.
      "(B) For purposes of subparagraph (A), the term 'applicable
    interest rate' means the interest rate which would be used (as of
    the date of the distribution) by the Pension Benefit Guaranty
    Corporation for purposes of determining the present value of a lump
    sum distribution on plan termination."
      1989 - Subsec. (a)(2). Pub. L. 101-239, Sec. 7861(a)(1)(A),
    substituted "satisfies the requirements" for "satisfies the
    following requirements" in introductory provisions.
      Subsec. (a)(2)(C)(ii)(I). Pub. L. 101-239, Sec. 7861(a)(1)(B),
    substituted "section 1002(37)(A)(ii) of this title" for "section
    414(f)(1)(B)".
      Subsec. (a)(3)(D)(v). Pub. L. 101-239, Sec. 7894(c)(3),
    substituted "nonforfeitability" for "nonforfeitably".
      Subsec. (a)(3)(F). Pub. L. 101-239, Sec. 7861(a)(5)(B), added
    subpar. (F).
      Subsec. (b)(1)(A). Pub. L. 101-239, Sec. 7861(a)(6)(B), amended
    subpar. (A) generally. Prior to amendment, subpar. (A) read as
    follows: "years of service before age 18, except that in case of a
    plan which does not satisfy subparagraph (A) or (B) of subsection
    (a)(2) of this section, the plan may not disregard any such year of
    service during which the employee was a participant;".
      Subsec. (c)(2). Pub. L. 101-239, Sec. 7891(a)(1), substituted
    "Internal Revenue Code of 1986" for "Internal Revenue Code of
    1954", which for purposes of codification was translated as "title
    26" thus requiring no change in text.
      Subsec. (e)(1). Pub. L. 101-239, Sec. 7862(d)(10), which directed
    amendment of par. (1) by substituting "nonforfeitable benefit" for
    "vested accrued benefit", could not be executed because the
    language "vested accrued benefit" did not appear after the
    amendment by Pub. L. 101-239, Sec. 7862(d)(5), see below.
      Pub. L. 101-239, Sec. 7862(d)(5), amended par. (1) generally.
    Prior to amendment, par. (1) read as follows: "If the present value
    of any vested accrued benefit exceeds $3,500, a pension plan shall
    provide that such benefit may not be immediately distributed
    without the consent of the participant."
      Pub. L. 101-239, Sec. 7862(d)(4), made technical correction to
    Pub. L. 99-514, Sec. 1898(d)(1)(B), see 1986 Amendment note below.
      Subsec. (e)(2). Pub. L. 101-239, Sec. 7891(b)(1), (2), realigned
    margins of subpars. (A) and (B) and struck out subpar. (B) heading
    "Applicable interest rate".
      Subsec. (e)(3). Pub. L. 101-239, Sec. 7891(a)(1), substituted
    "Internal Revenue Code of 1986" for "Internal Revenue Code of
    1954", which for purposes of codification was translated as "title
    26" thus requiring no change in text.
      1986 - Subsec. (a)(2). Pub. L. 99-514, Sec. 1113(e)(1), amended
    par. (2) generally, substituting provisions covering 5-year
    vesting, 3- to 7-year vesting, and multiemployer plans, for former
    provisions which covered 10-year vesting, 5- to 15-year vesting,
    and the "rule of 45" under which a plan satisfied the requirements
    of this paragraph if an employee who had completed at least 5 years
    of service and with respect to whom the sum of his age and years of
    service equalled or exceeded 45 had a right to a percentage of his
    accrued benefits derived from employer contributions.
      Subsec. (a)(3)(D)(ii). Pub. L. 99-514, Sec. 1898(a)(4)(B)(i),
    inserted last sentence and struck out former last sentence which
    read as follows: "In the case of a defined contribution plan the
    plan provision required under this clause may provide that such
    repayment must be made before the participant has any 1-year break
    in service commencing after the withdrawal."
      Subsec. (c)(1)(B). Pub. L. 99-514, Sec. 1113(e)(4)(A),
    substituted "3 years" for "5 years".
      Subsec. (c)(3). Pub. L. 99-514, Sec. 1113(e)(2), struck out par.
    (3) which provided for class year vesting.
      Pub. L. 99-514, Sec. 1898(a)(1)(B), amended par. (3) generally.
    Prior to amendment, par. (3) read as follows: "The requirements of
    subsection (a)(2) of this section shall be deemed to be satisfied
    in the case of a class year plan if such plan provides that 100
    percent of each employee's right to or derived from the
    contributions of the employer on his behalf with respect to any
    plan year are nonforfeitable not later than the end of the 5th year
    following the plan year for which such contributions were made. For
    purposes of this part, the term 'class year plan' means a profit
    sharing, stock bonus, or money purchase plan which provides for the
    separate nonforfeitability of employees' rights to or derived from
    the contributions for each plan year."
      Subsec. (e)(1). Pub. L. 99-514, Sec. 1898(d)(1)(B), as amended by
    Pub. L. 101-239, Sec. 7862(d)(4), amended par. (1) generally. Prior
    to amendment, par. (1) read as follows: "If the present value of
    any accrued benefit exceeds $3,500, such benefit shall not be
    treated as nonforfeitable if the plan provides that the present
    value of such benefit could be immediately distributed without the
    consent of the participant."
      Subsec. (e)(2). Pub. L. 99-514, Sec. 1139(c)(1), amended par. (2)
    generally. Prior to amendment, par. (2) read as follows: "For
    purposes of paragraph (1), the present value shall be calculated by
    using an interest rate not greater than the interest rate which
    would be used (as of the date of the distribution) by the Pension
    Benefit Guaranty Corporation for purposes of determining the
    present value of a lump sum distribution on plan termination."
      Pub. L. 99-514, Sec. 1898(d)(2)(B), added par. (3).
      1984 - Subsec. (b)(1)(A). Pub. L. 98-397, Sec. 102(b),
    substituted "18" for "22".
      Subsec. (b)(3)(C). Pub. L. 98-397, Sec. 102(c), substituted "5
    consecutive 1-year breaks in service" for "any 1-year break in
    service" and substituted "such 5-year period" for "such break" in
    two places.
      Subsec. (b)(3)(D). Pub. L. 98-397, Sec. 102(d)(2), amended
    subpar. (D) generally. Prior to amendment, subpar. (D) read as
    follows: "For purposes of paragraph (1), in the case of a
    participant who, under the plan, does not have any nonforfeitable
    right to an accrued benefit derived from employer contributions,
    years of service before any 1-year break in service shall not be
    required to be taken into account if the number of consecutive 1-
    year breaks in service equals or exceeds the aggregate number of
    such years of service prior to such break. Such aggregate number of
    years of service before such break shall be deemed not to include
    any years of service not required to be taken into account under
    this subparagraph by reason of any prior break in service."
      Subsec. (b)(3)(E). Pub. L. 98-397, Sec. 102(e)(2), added subpar.
    (E).
      Subsec. (e). Pub. L. 98-397, Sec. 105(a), added subsec. (e).
      1980 - Subsec. (a)(3)(E). Pub. L. 96-364, Sec. 303(1), added
    subpar. (E).
      Subsec. (b)(1)(G). Pub. L. 96-364, Sec. 303(2)-(4), added subpar.
    (G).

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Amendment by section 107(a)(4) of Pub. L. 109-280 applicable to
    plan years beginning after 2007, see section 107(e) of Pub. L. 109-
    280, set out as a note under section 1021 of this title.
      Amendment by section 701(a)(2) of Pub. L. 109-280 applicable to
    periods beginning on or after June 29, 2005, and to distributions
    made after Aug. 17, 2006, with provisions relating to vesting and
    interest credit requirements for plans in existence on June 29,
    2005, special rule for collectively bargained plans, and provisions
    relating to conversions of plan amendments adopted after, and
    taking effect after, June 29, 2005, see section 701(e) of Pub. L.
    109-280, set out as a note under section 411 of Title 26, Internal
    Revenue Code.
      Amendment by section 902(d)(2)(E) of Pub. L. 109-280 applicable
    to plan years beginning after Dec. 31, 2007, see section 902(g) of
    Pub. L. 109-280, set out as a note under section 401 of Title 26,
    Internal Revenue Code.
      Amendment by section 904(b) of Pub. L. 109-280 applicable to
    contributions for plan years beginning after Dec. 31, 2006, with
    provisions relating to collective bargaining agreements and amount
    of service required in any plan year and special rule for stock
    ownership plans, see section 904(c) of Pub. L. 109-280, set out as
    a note under section 411 of Title 26, Internal Revenue Code.

                     EFFECTIVE DATE OF 2001 AMENDMENT                 
      Amendment by section 633(b) of Pub. L. 107-16 applicable to
    contributions for plan years beginning after Dec. 31, 2001, with
    exception in the case of a plan maintained pursuant to one or more
    collective bargaining agreements ratified by June 7, 2001, and
    service requirement with respect to any plan, see section 633(c) of
    Pub. L. 107-16, set out as a note under section 411 of Title 26,
    Internal Revenue Code.
      Amendment by section 648(a)(2) of Pub. L. 107-16 applicable to
    distributions after Dec. 31, 2001, see section 648(c) of Pub. L.
    107-16, set out as a note under section 411 of Title 26, Internal
    Revenue Code.

                     EFFECTIVE DATE OF 1997 AMENDMENT                 
      Amendment by Pub. L. 105-34 applicable to plan years beginning
    after Aug. 5, 1997, see section 1071(c) of Pub. L. 105-34, set out
    as a note under section 411 of Title 26, Internal Revenue Code.

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Amendment by Pub. L. 104-188 applicable to plan years beginning
    on or after the earlier of (1) the later of (A) Jan. 1, 1997, or
    (B) the date on which the last of the collective bargaining
    agreements pursuant to which the plan is maintained terminates
    (determined without regard to any extension thereof after Aug. 20,
    1996), or (2) Jan. 1, 1999, but such amendment not applicable to
    any individual who does not have more than 1 hour of service under
    the plan on or after the 1st day of the 1st plan year to which such
    amendment applies, see section 1442(c) of Pub. L. 104-188, set out
    as a note under section 411 of Title 26, Internal Revenue Code.

                     EFFECTIVE DATE OF 1994 AMENDMENT                 
      Amendment by Pub. L. 103-465 applicable to plan years and
    limitation years beginning after Dec. 31, 1994, except that
    employer may elect to treat such amendment as effective on or after
    Dec. 8, 1994, with provisions relating to reduction of accrued
    benefits, exception, and timing of plan amendment, see section
    767(d) of Pub. L. 103-465, as amended, set out as a note under
    section 411 of Title 26, Internal Revenue Code.

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by sections 7861(a)(1), (5)(B), (6)(B) and 7862(d)(4),
    (5), (10) of Pub. L. 101-239 effective as if included in the
    provision of the Tax Reform Act of 1986, Pub. L. 99-514, to which
    such amendment relates, see section 7863 of Pub. L. 101-239, set
    out as a note under section 106 of Title 26, Internal Revenue Code.
      Amendment by section 7891(a)(1), (b)(1), (2) of Pub. L. 101-239
    effective, except as otherwise provided, as if included in the
    provision of the Tax Reform Act of 1986, Pub. L. 99-514, to which
    such amendment relates, see section 7891(f) of Pub. L. 101-239, set
    out as a note under section 1002 of this title.
      Amendment by section 7894(c)(3) of Pub. L. 101-239 effective,
    except as otherwise provided, as if originally included in the
    provision of the Employee Retirement Income Security Act of 1974,
    Pub. L. 93-406, to which such amendment relates, see section
    7894(i) of Pub. L. 101-239, set out as a note under section 1002 of
    this title.

                     EFFECTIVE DATE OF 1986 AMENDMENT                 
      Amendment by section 1113(e)(1), (2), (4)(A) of Pub. L. 99-514
    applicable to plan years beginning after Dec. 31, 1988, with
    special rule for plans maintained pursuant to collective bargaining
    agreements ratified before Mar. 1, 1986, and not applicable to
    employees who do not have 1 hour of service in any plan year to
    which the amendment applies, see section 1113(f) of Pub. L. 99-514,
    as amended, set out as a note under section 411 of Title 26,
    Internal Revenue Code.
      Amendment by section 1139(c)(1) of Pub. L. 99-514 applicable to
    distributions in plan years beginning after Dec. 31, 1984, except
    that such amendments shall not apply to any distributions in plan
    years beginning after Dec. 31, 1984, and before Jan. 1, 1987, if
    such distributions were made in accordance with the requirements of
    the regulations issued under the Retirement Equity Act of 1984,
    Pub. L. 98-397, with additional provisions relating to reductions
    in accrued benefits, see section 1139(d) of Pub. L. 99-514, set out
    as a note under section 411 of Title 26.
      Amendment by section 1898(a)(1)(B) of Pub. L. 99-514 applicable
    to contributions made for plan years beginning after Oct. 22, 1986,
    except that in the case of a plan described in section 302(b) of
    Pub. L. 98-397, set out as a note under section 1001 of this title,
    such amendments shall not apply to any plan year to which
    amendments made by Pub. L. 98-397 do not apply by reason of such
    section 302(b), see section 1898(a)(1)(C) of Pub. L. 99-514, set
    out as a note under section 411 of Title 26.
      Amendment by section 1898(a)(4)(B)(i), (d)(1)(B), (2)(B), of Pub.
    L. 99-514 effective as if included in the provision of the
    Retirement Equity Act of 1984, Pub. L. 98-397, to which such
    amendment relates, except as otherwise provided, see section
    1898(j) of Pub. L. 99-514, set out as a note under section 401 of
    Title 26.

                     EFFECTIVE DATE OF 1984 AMENDMENT                 
      Amendment by Pub. L. 98-397 applicable to plan years beginning
    after Dec. 31, 1984, except as otherwise provided, see sections 302
    and 303 of Pub. L. 98-397, set out as a note under section 1001 of
    this title.

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-364 effective Sept. 26, 1980, except as
    specifically provided, see section 1461(e) of this title.

                                REGULATIONS                            
      Secretary of the Treasury or his delegate to issue before Feb. 1,
    1988, final regulations to carry out amendments made by section
    1113 of Pub. L. 99-514, see section 1141 of Pub. L. 99-514, set out
    as a note under section 401 of Title 26, Internal Revenue Code.
      Secretary authorized, effective Sept. 2, 1974, to promulgate
    regulations wherever provisions of this subchapter call for the
    promulgation of regulations, see section 1031 of this title.

    APPLICABILITY OF AMENDMENTS BY SUBTITLES A AND B OF TITLE I OF PUB.
                                L. 109-280
      For special rules on applicability of amendments by subtitles A
    (Secs. 101-107) and B (Secs. 111-116) of title I of Pub. L. 109-280
    to certain eligible cooperative plans, PBGC settlement plans, and
    eligible government contractor plans, see sections 104, 105, and
    106 of Pub. L. 109-280, set out as notes under section 401 of Title
    26, Internal Revenue Code.

            PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1998        
      For provisions directing that if any amendments made by subtitle
    D [Secs. 1401-1465] of title I of Pub. L. 104-188 require an
    amendment to any plan or annuity contract, such amendment shall not
    be required to be made before the first day of the first plan year
    beginning on or after Jan. 1, 1998, see section 1465 of Pub. L. 104-
    188, set out as a note under section 401 of Title 26, Internal
    Revenue Code.

            PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989        
      For provisions directing that if any amendments made by subtitle
    A or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or
    title XVIII [Secs. 1800-1899A] of Pub. L. 99-514 require an
    amendment to any plan, such plan amendment shall not be required to
    be made before the first plan year beginning on or after Jan. 1,
    1989, see section 1140 of Pub. L. 99-514, as amended, set out as a
    note under section 401 of Title 26, Internal Revenue Code.

-FOOTNOTE-               

    (!1) So in original. The comma probably should be a semicolon.


-End-



-CITE-
    29 USC Sec. 1054                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 2 - participation and vesting

-HEAD-
    Sec. 1054. Benefit accrual requirements

-STATUTE-
    (a) Satisfaction of requirements by pension plans
      Each pension plan shall satisfy the requirements of subsection
    (b)(3) of this section, and - 
        (1) in the case of a defined benefit plan, shall satisfy the
      requirements of subsection (b)(1) of this section; and
        (2) in the case of a defined contribution plan, shall satisfy
      the requirements of subsection (b)(2) of this section.
    (b) Enumeration of plan requirements
      (1)(A) A defined benefit plan satisfies the requirements of this
    paragraph if the accrued benefit to which each participant is
    entitled upon his separation from the service is not less than - 
        (i) 3 percent of the normal retirement benefit to which he
      would be entitled at the normal retirement age if he commenced
      participation at the earliest possible entry age under the plan
      and served continuously until the earlier of age 65 or the normal
      retirement age specified under the plan, multiplied by
        (ii) the number of years (not in excess of 33 1/3 ) of his
      participation in the plan.

    In the case of a plan providing retirement benefits based on
    compensation during any period, the normal retirement benefit to
    which a participant would be entitled shall be determined as if he
    continued to earn annually the average rate of compensation which
    he earned during consecutive years of service, not in excess of 10,
    for which his compensation was the highest. For purposes of this
    subparagraph, social security benefits and all other relevant
    factors used to compute benefits shall be treated as remaining
    constant as of the current year for all years after such current
    year.
      (B) A defined benefit plan satisfies the requirements of this
    paragraph of a particular plan year if under the plan the accrued
    benefit payable at the normal retirement age is equal to the normal
    retirement benefit and the annual rate at which any individual who
    is or could be a participant can accrue the retirement benefits
    payable at normal retirement age under the plan for any later plan
    year is not more than 133 1/3  percent of the annual rate at which
    he can accrue benefits for any plan year beginning on or after such
    particular plan year and before such later plan year. For purposes
    of this subparagraph - 
        (i) any amendment to the plan which is in effect for the
      current year shall be treated as in effect for all other plan
      years;
        (ii) any change in an accrual rate which does not apply to any
      individual who is or could be a participant in the current year
      shall be disregarded;
        (iii) the fact that benefits under the plan may be payable to
      certain employees before normal retirement age shall be
      disregarded; and
        (iv) social security benefits and all other relevant factors
      used to compute benefits shall be treated as remaining constant
      as of the current year for all years after the current year.

      (C) A defined benefit plan satisfies the requirements of this
    paragraph if the accrued benefit to which any participant is
    entitled upon his separation from the service is not less than a
    fraction of the annual benefit commencing at normal retirement age
    to which he would be entitled under the plan as in effect on the
    date of his separation if he continued to earn annually until
    normal retirement age the same rate of compensation upon which his
    normal retirement benefit would be computed under the plan,
    determined as if he had attained normal retirement age on the date
    any such determination is made (but taking into account no more
    than the 10 years of service immediately preceding his separation
    from service). Such fraction shall be a fraction, not exceeding 1,
    the numerator of which is the total number of his years of
    participation in the plan (as of the date of his separation from
    the service) and the denominator of which is the total number of
    years he would have participated in the plan if he separated from
    the service at the normal retirement age. For purposes of this
    subparagraph, social security benefits and all other relevant
    factors used to compute benefits shall be treated as remaining
    constant as of the current year for all years after such current
    year.
      (D) Subparagraphs (A), (B), and (C) shall not apply with respect
    to years of participation before the first plan year to which this
    section applies but a defined benefit plan satisfies the
    requirements of this subparagraph with respect to such years of
    participation only if the accrued benefit of any participant with
    respect to such years of participation is not less than the greater
    of - 
        (i) his accrued benefit determined under the plan, as in effect
      from time to time prior to September 2, 1974, or
        (ii) an accrued benefit which is not less than one-half of the
      accrued benefit to which such participant would have been
      entitled if subparagraph (A), (B), or (C) applied with respect to
      such years of participation.

      (E) Notwithstanding subparagraphs (A), (B), and (C) of this
    paragraph, a plan shall not be treated as not satisfying the
    requirements of this paragraph solely because the accrual of
    benefits under the plan does not become effective until the
    employee has two continuous years of service. For purposes of this
    subparagraph, the term "year of service" has the meaning provided
    by section 1052(a)(3)(A) of this title.
      (F) Notwithstanding subparagraphs (A), (B), and (C), a defined
    benefit plan satisfies the requirements of this paragraph if such
    plan
        (i) is funded exclusively by the purchase of insurance
      contracts, and
        (ii) satisfies the requirements of paragraphs (2) and (3) of
      section 1081(b) of this title (relating to certain insurance
      contract plans),

    but only if an employee's accrued benefit as of any applicable date
    is not less than the cash surrender value his insurance contracts
    would have on such applicable date if the requirements of
    paragraphs (4), (5), and (6) of section 1081(b) of this title were
    satisfied.
      (G) Notwithstanding the preceding subparagraphs, a defined
    benefit plan shall be treated as not satisfying the requirements of
    this paragraph if the participant's accrued benefit is reduced on
    account of any increase in his age or service. The preceding
    sentence shall not apply to benefits under the plan commencing
    before benefits payable under title II of the Social Security Act
    [42 U.S.C. 401 et seq.] which benefits under the plan - 
        (i) do not exceed social security benefits, and
        (ii) terminate when such social security benefits commence.

      (H)(i) Notwithstanding the preceding subparagraphs, a defined
    benefit plan shall be treated as not satisfying the requirements of
    this paragraph if, under the plan, an employee's benefit accrual is
    ceased, or the rate of an employee's benefit accrual is reduced,
    because of the attainment of any age.
      (ii) A plan shall not be treated as failing to meet the
    requirements of this subparagraph solely because the plan imposes
    (without regard to age) a limitation on the amount of benefits that
    the plan provides or a limitation on the number of years of service
    or years of participation which are taken into account for purposes
    of determining benefit accrual under the plan.
      (iii) In the case of any employee who, as of the end of any plan
    year under a defined benefit plan, has attained normal retirement
    age under such plan - 
        (I) if distribution of benefits under such plan with respect to
      such employee has commenced as of the end of such plan year, then
      any requirement of this subparagraph for continued accrual of
      benefits under such plan with respect to such employee during
      such plan year shall be treated as satisfied to the extent of the
      actuarial equivalent of in-service distribution of benefits, and
        (II) if distribution of benefits under such plan with respect
      to such employee has not commenced as of the end of such year in
      accordance with section 1056(a)(3) of this title, and the payment
      of benefits under such plan with respect to such employee is not
      suspended during such plan year pursuant to section 1053(a)(3)(B)
      of this title, then any requirement of this subparagraph for
      continued accrual of benefits under such plan with respect to
      such employee during such plan year shall be treated as satisfied
      to the extent of any adjustment in the benefit payable under the
      plan during such plan year attributable to the delay in the
      distribution of benefits after the attainment of normal
      retirement age.

    The preceding provisions of this clause shall apply in accordance
    with regulations of the Secretary of the Treasury. Such regulations
    may provide for the application of the preceding provisions of this
    clause, in the case of any such employee, with respect to any
    period of time within a plan year.
      (iv) Clause (i) shall not apply with respect to any employee who
    is a highly compensated employee (within the meaning of section
    414(q) of title 26) to the extent provided in regulations
    prescribed by the Secretary of the Treasury for purposes of
    precluding discrimination in favor of highly compensated employees
    within the meaning of subchapter D of chapter 1 of title 26.
      (v) A plan shall not be treated as failing to meet the
    requirements of clause (i) solely because the subsidized portion of
    any early retirement benefit is disregarded in determining benefit
    accruals.
      (vi) Any regulations prescribed by the Secretary of the Treasury
    pursuant to clause (v) of section 411(b)(1)(H) of title 26 shall
    apply with respect to the requirements of this subparagraph in the
    same manner and to the same extent as such regulations apply with
    respect to the requirements of such section 411(b)(1)(H).
      (2)(A) A defined contribution plan satisfies the requirements of
    this paragraph if, under the plan, allocations to the employee's
    account are not ceased, and the rate at which amounts are allocated
    to the employee's account is not reduced, because of the attainment
    of any age.
      (B) A plan shall not be treated as failing to meet the
    requirements of subparagraph (A) solely because the subsidized
    portion of any early retirement benefit is disregarded in
    determining benefit accruals.
      (C) Any regulations prescribed by the Secretary of the Treasury
    pursuant to subparagraphs (B) and (C) of section 411(b)(2) of title
    26 shall apply with respect to the requirements of this paragraph
    in the same manner and to the same extent as such regulations apply
    with respect to the requirements of such section 411(b)(2).
      (3) A plan satisfies the requirements of this paragraph if - 
        (A) in the case of a defined benefit plan, the plan requires
      separate accounting for the portion of each employee's accrued
      benefit derived from any voluntary employee contributions
      permitted under the plan; and
        (B) in the case of any plan which is not a defined benefit
      plan, the plan requires separate accounting for each employee's
      accrued benefit.

      (4)(A) For purposes of determining an employee's accrued benefit,
    the term "year of participation" means a period of service
    (beginning at the earliest date on which the employee is a
    participant in the plan and which is included in a period of
    service required to be taken into account under section 1052(b) of
    this title, determined without regard to section 1052(b)(5) of this
    title) as determined under regulations prescribed by the Secretary
    which provide for the calculation of such period on any reasonable
    and consistent basis.
      (B) For purposes of this paragraph, except as provided in
    subparagraph (C), in the case of any employee whose customary
    employment is less than full time, the calculation of such
    employee's service on any basis which provides less than a ratable
    portion of the accrued benefit to which he would be entitled under
    the plan if his customary employment were full time shall not be
    treated as made on a reasonable and consistent basis.
      (C) For purposes of this paragraph, in the case of any employee
    whose service is less than 1,000 hours during any calendar year,
    plan year or other 12-consecutive-month period designated by the
    plan (and not prohibited under regulations prescribed by the
    Secretary) the calculation of his period of service shall not be
    treated as not made on a reasonable and consistent basis merely
    because such service is not taken into account.
      (D) In the case of any seasonal industry where the customary
    period of employment is less than 1,000 hours during a calendar
    year, the term "year of participation" shall be such period as
    determined under regulations prescribed by the Secretary.
      (E) For purposes of this subsection in the case of any maritime
    industry, 125 days of service shall be treated as a year of
    participation. The Secretary may prescribe regulations to carry out
    the purposes of this subparagraph.
      (5) Special rules relating to age. - 
        (A) Comparison to similarly situated younger individual. - 
          (i) In general. - A plan shall not be treated as failing to
        meet the requirements of paragraph (1)(H)(i) if a participant's
        accrued benefit, as determined as of any date under the terms
        of the plan, would be equal to or greater than that of any
        similarly situated, younger individual who is or could be a
        participant.
          (ii) Similarly situated. - For purposes of this subparagraph,
        a participant is similarly situated to any other individual if
        such participant is identical to such other individual in every
        respect (including period of service, compensation, position,
        date of hire, work history, and any other respect) except for
        age.
          (iii) Disregard of subsidized early retirement benefits. - In
        determining the accrued benefit as of any date for purposes of
        this clause, the subsidized portion of any early retirement
        benefit or retirement-type subsidy shall be disregarded.
          (iv) Accrued benefit. - For purposes of this subparagraph,
        the accrued benefit may, under the terms of the plan, be
        expressed as an annuity payable at normal retirement age, the
        balance of a hypothetical account, or the current value of the
        accumulated percentage of the employee's final average
        compensation.

        (B) Applicable defined benefit plans. - 
          (i) Interest credits. - 
            (I) In general. - An applicable defined benefit plan shall
          be treated as failing to meet the requirements of paragraph
          (1)(H) unless the terms of the plan provide that any interest
          credit (or an equivalent amount) for any plan year shall be
          at a rate which is not greater than a market rate of return.
          A plan shall not be treated as failing to meet the
          requirements of this subclause merely because the plan
          provides for a reasonable minimum guaranteed rate of return
          or for a rate of return that is equal to the greater of a
          fixed or variable rate of return.
            (II) Preservation of capital. - An interest credit (or an
          equivalent amount) of less than zero shall in no event result
          in the account balance or similar amount being less than the
          aggregate amount of contributions credited to the account.
            (III) Market rate of return. - The Secretary of the
          Treasury may provide by regulation for rules governing the
          calculation of a market rate of return for purposes of
          subclause (I) and for permissible methods of crediting
          interest to the account (including fixed or variable interest
          rates) resulting in effective rates of return meeting the
          requirements of subclause (I).

          (ii) Special rule for plan conversions. - If, after June 29,
        2005, an applicable plan amendment is adopted, the plan shall
        be treated as failing to meet the requirements of paragraph
        (1)(H) unless the requirements of clause (iii) are met with
        respect to each individual who was a participant in the plan
        immediately before the adoption of the amendment.
          (iii) Rate of benefit accrual. - Subject to clause (iv), the
        requirements of this clause are met with respect to any
        participant if the accrued benefit of the participant under the
        terms of the plan as in effect after the amendment is not less
        than the sum of - 
            (I) the participant's accrued benefit for years of service
          before the effective date of the amendment, determined under
          the terms of the plan as in effect before the amendment, plus
            (II) the participant's accrued benefit for years of service
          after the effective date of the amendment, determined under
          the terms of the plan as in effect after the amendment.

          (iv) Special rules for early retirement subsidies. - For
        purposes of clause (iii)(I), the plan shall credit the
        accumulation account or similar amount (!1) with the amount of
        any early retirement benefit or retirement-type subsidy for the
        plan year in which the participant retires if, as of such time,
        the participant has met the age, years of service, and other
        requirements under the plan for entitlement to such benefit or
        subsidy.

          (v) Applicable plan amendment. - For purposes of this
        subparagraph - 
            (I) In general. - The term "applicable plan amendment"
          means an amendment to a defined benefit plan which has the
          effect of converting the plan to an applicable defined
          benefit plan.
            (II) Special rule for coordinated benefits. - If the
          benefits of 2 or more defined benefit plans established or
          maintained by an employer are coordinated in such a manner as
          to have the effect of the adoption of an amendment described
          in subclause (I), the sponsor of the defined benefit plan or
          plans providing for such coordination shall be treated as
          having adopted such a plan amendment as of the date such
          coordination begins.
            (III) Multiple amendments. - The Secretary of the Treasury
          shall issue regulations to prevent the avoidance of the
          purposes of this subparagraph through the use of 2 or more
          plan amendments rather than a single amendment.
            (IV) Applicable defined benefit plan. - For purposes of
          this subparagraph, the term "applicable defined benefit plan"
          has the meaning given such term by section 1053(f)(3) of this
          title.

          (vi) Termination requirements. - An applicable defined
        benefit plan shall not be treated as meeting the requirements
        of clause (i) unless the plan provides that, upon the
        termination of the plan - 
            (I) if the interest credit rate (or an equivalent amount)
          under the plan is a variable rate, the rate of interest used
          to determine accrued benefits under the plan shall be equal
          to the average of the rates of interest used under the plan
          during the 5-year period ending on the termination date, and
            (II) the interest rate and mortality table used to
          determine the amount of any benefit under the plan payable in
          the form of an annuity payable at normal retirement age shall
          be the rate and table specified under the plan for such
          purpose as of the termination date, except that if such
          interest rate is a variable rate, the interest rate shall be
          determined under the rules of subclause (I).

        (C) Certain offsets permitted. - A plan shall not be treated as
      failing to meet the requirements of paragraph (1)(H)(i) solely
      because the plan provides offsets against benefits under the plan
      to the extent such offsets are allowable in applying the
      requirements of section 401(a) of title 26.
        (D) Permitted disparities in plan contributions or benefits. -
      A plan shall not be treated as failing to meet the requirements
      of paragraph (1)(H) solely because the plan provides a disparity
      in contributions or benefits with respect to which the
      requirements of section 401(l) of title 26 are met.
        (E) Indexing permitted. - 
          (i) In general. - A plan shall not be treated as failing to
        meet the requirements of paragraph (1)(H) solely because the
        plan provides for indexing of accrued benefits under the plan.
          (ii) Protection against loss. - Except in the case of any
        benefit provided in the form of a variable annuity, clause (i)
        shall not apply with respect to any indexing which results in
        an accrued benefit less than the accrued benefit determined
        without regard to such indexing.
          (iii) Indexing. - For purposes of this subparagraph, the term
        "indexing" means, in connection with an accrued benefit, the
        periodic adjustment of the accrued benefit by means of the
        application of a recognized investment index or methodology.

        (F) Early retirement benefit or retirement-type subsidy. - For
      purposes of this paragraph, the terms "early retirement benefit"
      and "retirement-type subsidy" have the meaning given such terms
      in subsection (g)(2)(A).
        (G) Benefit accrued to date. - For purposes of this paragraph,
      any reference to the accrued benefit shall be a reference to such
      benefit accrued to date.
    (c) Employee's accrued benefits derived from employer and employee
      contributions
      (1) For purposes of this section and section 1053 of this title
    an employee's accrued benefit derived from employer contributions
    as of any applicable date is the excess (if any) of the accrued
    benefit for such employee as of such applicable date over the
    accrued benefit derived from contributions made by such employee as
    of such date.
      (2)(A) In the case of a plan other than a defined benefit plan,
    the accrued benefit derived from contributions made by an employee
    as of any applicable date is - 
        (i) except as provided in clause (ii), the balance of the
      employee's separate account consisting only of his contributions
      and the income, expenses, gains, and losses attributable thereto,
      or
        (ii) if a separate account is not maintained with respect to an
      employee's contributions under such a plan, the amount which
      bears the same ratio to his total accrued benefit as the total
      amount of the employee's contributions (less withdrawals) bears
      to the sum of such contributions and the contributions made on
      his behalf by the employer (less withdrawals).

      (B) Defined benefit plans. - In the case of a defined benefit
    plan, the accrued benefit derived from contributions made by an
    employee as of any applicable date is the amount equal to the
    employee's accumulated contributions expressed as an annual benefit
    commencing at normal retirement age, using an interest rate which
    would be used under the plan under section 1055(g)(3) of this title
    (as of the determination date).
      (C) For purposes of this subsection, the term "accumulated
    contributions" means the total of - 
        (i) all mandatory contributions made by the employee,
        (ii) interest (if any) under the plan to the end of the last
      plan year to which section 1053(a)(2) of this title does not
      apply (by reason of the applicable effective date), and
        (iii) interest on the sum of the amounts determined under
      clauses (i) and (ii) compounded annually - 
          (I) at the rate of 120 percent of the Federal mid-term rate
        (as in effect under section 1274 of title 26 for the 1st month
        of a plan year for the period beginning with the 1st plan year
        to which subsection (a)(2) of this section applies by reason of
        the applicable effective date) and ending with the date on
        which the determination is being made, and
          (II) at the interest rate which would be used under the plan
        under section 1055(g)(3) of this title (as of the determination
        date) for the period beginning with the determination date and
        ending on the date on which the employee attains normal
        retirement age.

    For purposes of this subparagraph, the term "mandatory
    contributions" means amounts contributed to the plan by the
    employee which are required as a condition of employment, as a
    condition of participation in such plans, or as a condition of
    obtaining benefits under the plan attributable to employer
    contributions.
      (D) The Secretary of the Treasury is authorized to adjust by
    regulation the conversion factor described in subparagraph (B) from
    time to time as he may deem necessary. No such adjustment shall be
    effective for a plan year beginning before the expiration of 1 year
    after such adjustment is determined and published.
      (3) For purposes of this section, in the case of any defined
    benefit plan, if an employee's accrued benefit is to be determined
    as an amount other than an annual benefit commencing at normal
    retirement age, or if the accrued benefit derived from
    contributions made by an employee is to be determined with respect
    to a benefit other than an annual benefit in the form of a single
    life annuity (without ancillary benefits) commencing at normal
    retirement age, the employee's accrued benefit, or the accrued
    benefits derived from contributions made by an employee, as the
    case may be, shall be the actuarial equivalent of such benefit or
    amount determined under paragraph (1) or (2).
      (4) In the case of a defined benefit plan which permits voluntary
    employee contributions, the portion of an employee's accrued
    benefit derived from such contributions shall be treated as an
    accrued benefit derived from employee contributions under a plan
    other than a defined benefit plan.
    (d) Employee service which may be disregarded in determining
      employee's accrued benefits under plan
      Notwithstanding section 1053(b)(1) of this title, for purposes of
    determining the employee's accrued benefit under the plan, the plan
    may disregard service performed by the employee with respect to
    which he has received - 
        (1) a distribution of the present value of his entire
      nonforfeitable benefit if such distribution was in an amount (not
      more than the dollar limit under section 1053(e)(1) of this
      title) permitted under regulations prescribed by the Secretary of
      the Treasury, or
        (2) a distribution of the present value of his nonforfeitable
      benefit attributable to such service which he elected to receive.

    Paragraph (1) shall apply only if such distribution was made on
    termination of the employee's participation in the plan. Paragraph
    (2) shall apply only if such distribution was made on termination
    of the employee's participation in the plan or under such other
    circumstances as may be provided under regulations prescribed by
    the Secretary of the Treasury.
    (e) Opportunity to repay full amount of distributions which have
      been reduced through disregarded employee service
      For purposes of determining the employee's accrued benefit, the
    plan shall not disregard service as provided in subsection (d) of
    this section unless the plan provides an opportunity for the
    participant to repay the full amount of a distribution described in
    subsection (d) of this section with, in the case of a defined
    benefit plan, interest at the rate determined for purposes of
    subsection (c)(2)(C) of this section and provides that upon such
    repayment the employee's accrued benefit shall be recomputed by
    taking into account service so disregarded. This subsection shall
    apply only in the case of a participant who - 
        (1) received such a distribution in any plan year to which this
      section applies which distribution was less than the present
      value of his accrued benefit,
        (2) resumes employment covered under the plan, and
        (3) repays the full amount of such distribution with, in the
      case of a defined benefit plan, interest at the rate determined
      for purposes of subsection (c)(2)(C) of this section.

    The plan provision required under this subsection may provide that
    such repayment must be made (A) in the case of a withdrawal on
    account of separation from service, before the earlier of 5 years
    after the first date on which the participant is subsequently re-
    employed by the employer, or the close of the first period of 5
    consecutive 1-year breaks in service commencing after the
    withdrawal; or (B) in the case of any other withdrawal, 5 years
    after the date of the withdrawal.
    (f) Employer treated as maintaining a plan
      For the purposes of this part, an employer shall be treated as
    maintaining a plan if any employee of such employer accrues
    benefits under such plan by reason of service with such employer.
    (g) Decrease of accrued benefits through amendment of plan
      (1) The accrued benefit of a participant under a plan may not be
    decreased by an amendment of the plan, other than an amendment
    described in section 1082(c)(8) or 1441 of this title.
      (2) For purposes of paragraph (1), a plan amendment which has the
    effect of - 
        (A) eliminating or reducing an early retirement benefit or a
      retirement-type subsidy (as defined in regulations), or
        (B) eliminating an optional form of benefit,

    with respect to benefits attributable to service before the
    amendment shall be treated as reducing accrued benefits. In the
    case of a retirement-type subsidy, the preceding sentence shall
    apply only with respect to a participant who satisfies (either
    before or after the amendment) the preamendment conditions for the
    subsidy. The Secretary of the Treasury shall by regulations provide
    that this paragraph shall not apply to any plan amendment which
    reduces or eliminates benefits or subsidies which create
    significant burdens or complexities for the plan and plan
    participants, unless such amendment adversely affects the rights of
    any participant in a more than de minimis manner. The Secretary of
    the Treasury may by regulations provide that this subparagraph
    shall not apply to a plan amendment described in subparagraph (B)
    (other than a plan amendment having an effect described in
    subparagraph (A)).
      (3) For purposes of this subsection, any - 
        (A) tax credit employee stock ownership plan (as defined in
      section 409(a) of title 26, or
        (B) employee stock ownership plan (as defined in section
      4975(e)(7) of title 26),

    shall not be treated as failing to meet the requirements of this
    subsection merely because it modifies distribution options in a
    nondiscriminatory manner.
      (4)(A) A defined contribution plan (in this subparagraph referred
    to as the "transferee plan") shall not be treated as failing to
    meet the requirements of this subsection merely because the
    transferee plan does not provide some or all of the forms of
    distribution previously available under another defined
    contribution plan (in this subparagraph referred to as the
    "transferor plan") to the extent that - 
        (i) the forms of distribution previously available under the
      transferor plan applied to the account of a participant or
      beneficiary under the transferor plan that was transferred from
      the transferor plan to the transferee plan pursuant to a direct
      transfer rather than pursuant to a distribution from the
      transferor plan;
        (ii) the terms of both the transferor plan and the transferee
      plan authorize the transfer described in clause (i);
        (iii) the transfer described in clause (i) was made pursuant to
      a voluntary election by the participant or beneficiary whose
      account was transferred to the transferee plan;
        (iv) the election described in clause (iii) was made after the
      participant or beneficiary received a notice describing the
      consequences of making the election; and
        (v) the transferee plan allows the participant or beneficiary
      described in clause (iii) to receive any distribution to which
      the participant or beneficiary is entitled under the transferee
      plan in the form of a single sum distribution.

      (B) Subparagraph (A) shall apply to plan mergers and other
    transactions having the effect of a direct transfer, including
    consolidations of benefits attributable to different employers
    within a multiple employer plan.
      (5) Except to the extent provided in regulations promulgated by
    the Secretary of the Treasury, a defined contribution plan shall
    not be treated as failing to meet the requirements of this
    subsection merely because of the elimination of a form of
    distribution previously available thereunder. This paragraph shall
    not apply to the elimination of a form of distribution with respect
    to any participant unless - 
        (A) a single sum payment is available to such participant at
      the same time or times as the form of distribution being
      eliminated; and
        (B) such single sum payment is based on the same or greater
      portion of the participant's account as the form of distribution
      being eliminated.
    (h) Notice of significant reduction in benefit accruals
      (1) An applicable pension plan may not be amended so as to
    provide for a significant reduction in the rate of future benefit
    accrual unless the plan administrator provides the notice described
    in paragraph (2) to each applicable individual (and to each
    employee organization representing applicable individuals).
      (2) The notice required by paragraph (1) shall be written in a
    manner calculated to be understood by the average plan participant
    and shall provide sufficient information (as determined in
    accordance with regulations prescribed by the Secretary of the
    Treasury) to allow applicable individuals to understand the effect
    of the plan amendment. The Secretary of the Treasury may provide a
    simplified form of notice for, or exempt from any notice
    requirement, a plan - 
        (A) which has fewer than 100 participants who have accrued a
      benefit under the plan, or
        (B) which offers participants the option to choose between the
      new benefit formula and the old benefit formula.

      (3) Except as provided in regulations prescribed by the Secretary
    of the Treasury, the notice required by paragraph (1) shall be
    provided within a reasonable time before the effective date of the
    plan amendment.
      (4) Any notice under paragraph (1) may be provided to a person
    designated, in writing, by the person to which it would otherwise
    be provided.
      (5) A plan shall not be treated as failing to meet the
    requirements of paragraph (1) merely because notice is provided
    before the adoption of the plan amendment if no material
    modification of the amendment occurs before the amendment is
    adopted.
      (6)(A) In the case of any egregious failure to meet any
    requirement of this subsection with respect to any plan amendment,
    the provisions of the applicable pension plan shall be applied as
    if such plan amendment entitled all applicable individuals to the
    greater of - 
        (i) the benefits to which they would have been entitled without
      regard to such amendment, or
        (ii) the benefits under the plan with regard to such amendment.

      (B) For purposes of subparagraph (A), there is an egregious
    failure to meet the requirements of this subsection if such failure
    is within the control of the plan sponsor and is - 
        (i) an intentional failure (including any failure to promptly
      provide the required notice or information after the plan
      administrator discovers an unintentional failure to meet the
      requirements of this subsection),
        (ii) a failure to provide most of the individuals with most of
      the information they are entitled to receive under this
      subsection, or
        (iii) a failure which is determined to be egregious under
      regulations prescribed by the Secretary of the Treasury.

      (7) The Secretary of the Treasury may by regulations allow any
    notice under this subsection to be provided by using new
    technologies.
      (8) For purposes of this subsection - 
        (A) The term "applicable individual" means, with respect to any
      plan amendment - 
          (i) each participant in the plan; and
          (ii) any beneficiary who is an alternate payee (within the
        meaning of section 1056(d)(3)(K) of this title) under an
        applicable qualified domestic relations order (within the
        meaning of section 1056(d)(3)(B)(i) of this title),

      whose rate of future benefit accrual under the plan may
      reasonably be expected to be significantly reduced by such plan
      amendment.
        (B) The term "applicable pension plan" means - 
          (i) any defined benefit plan; or
          (ii) an individual account plan which is subject to the
        funding standards of section 412 of title 26.

      (9) For purposes of this subsection, a plan amendment which
    eliminates or reduces any early retirement benefit or retirement-
    type subsidy (within the meaning of subsection (g)(2)(A) of this
    section) shall be treated as having the effect of reducing the rate
    of future benefit accrual.
    (i) Prohibition on benefit increases where plan sponsor is in
      bankruptcy
      (1) In the case of a plan described in paragraph (3) which is
    maintained by an employer that is a debtor in a case under title 11
    or similar Federal or State law, no amendment of the plan which
    increases the liabilities of the plan by reason of - 
        (A) any increase in benefits,
        (B) any change in the accrual of benefits, or
        (C) any change in the rate at which benefits become
      nonforfeitable under the plan,

    with respect to employees of the debtor, shall be effective prior
    to the effective date of such employer's plan of reorganization.
      (2) Paragraph (1) shall not apply to any plan amendment that - 
        (A) the Secretary of the Treasury determines to be reasonable
      and that provides for only de minimis increases in the
      liabilities of the plan with respect to employees of the debtor,
        (B) only repeals an amendment described in section 1082(c)(8)
      of this title,
        (C) is required as a condition of qualification under part I of
      subchapter D of chapter 1 of title 26, or
        (D) was adopted prior to, or pursuant to a collective
      bargaining agreement entered into prior to, the date on which the
      employer became a debtor in a case under title 11 or similar
      Federal or State law.

      (3) This subsection shall apply only to plans (other than
    multiemployer plans) covered under section 1321 of this title for
    which the funded current liability percentage (within the meaning
    of section 1082(d)(8) of this title) is less than 100 percent after
    taking into account the effect of the amendment.
      (4) For purposes of this subsection, the term "employer" has the
    meaning set forth in section 1082(c)(11)(A) of this title, without
    regard to section 1082(c)(11)(B) of this title.
    (j) Diversification requirements for certain individual account
      plans
      (1) In general
        An applicable individual account plan shall meet the
      diversification requirements of paragraphs (2), (3), and (4).
      (2) Employee contributions and elective deferrals invested in
        employer securities
        In the case of the portion of an applicable individual's
      account attributable to employee contributions and elective
      deferrals which is invested in employer securities, a plan meets
      the requirements of this paragraph if the applicable individual
      may elect to direct the plan to divest any such securities and to
      reinvest an equivalent amount in other investment options meeting
      the requirements of paragraph (4).
      (3) Employer contributions invested in employer securities
        In the case of the portion of the account attributable to
      employer contributions other than elective deferrals which is
      invested in employer securities, a plan meets the requirements of
      this paragraph if each applicable individual who - 
          (A) is a participant who has completed at least 3 years of
        service, or
          (B) is a beneficiary of a participant described in
        subparagraph (A) or of a deceased participant,

      may elect to direct the plan to divest any such securities and to
      reinvest an equivalent amount in other investment options meeting
      the requirements of paragraph (4).
      (4) Investment options
        (A) In general
          The requirements of this paragraph are met if the plan offers
        not less than 3 investment options, other than employer
        securities, to which an applicable individual may direct the
        proceeds from the divestment of employer securities pursuant to
        this subsection, each of which is diversified and has
        materially different risk and return characteristics.
        (B) Treatment of certain restrictions and conditions
          (i) Time for making investment choices
            A plan shall not be treated as failing to meet the
          requirements of this paragraph merely because the plan limits
          the time for divestment and reinvestment to periodic,
          reasonable opportunities occurring no less frequently than
          quarterly.
          (ii) Certain restrictions and conditions not allowed
            Except as provided in regulations, a plan shall not meet
          the requirements of this paragraph if the plan imposes
          restrictions or conditions with respect to the investment of
          employer securities which are not imposed on the investment
          of other assets of the plan. This subparagraph shall not
          apply to any restrictions or conditions imposed by reason of
          the application of securities laws.
      (5) Applicable individual account plan
        For purposes of this subsection - 
        (A) In general
          The term "applicable individual account plan" means any
        individual account plan (as defined in section 1002(34) of this
        title) which holds any publicly traded employer securities.
        (B) Exception for certain ESOPS
          Such term does not include an employee stock ownership plan
        if - 
            (i) there are no contributions to such plan (or earnings
          thereunder) which are held within such plan and are subject
          to subsection (k) or (m) of section 401 of title 26, and
            (ii) such plan is a separate plan (for purposes of section
          414(l) of title 26) with respect to any other defined benefit
          plan or individual account plan maintained by the same
          employer or employers.
        (C) Exception for one participant plans
          Such term shall not include a one-participant retirement plan
        (as defined in section 1021(i)(8)(B) of this title).
        (D) Certain plans treated as holding publicly traded employer
          securities
          (i) In general
            Except as provided in regulations or in clause (ii), a plan
          holding employer securities which are not publicly traded
          employer securities shall be treated as holding publicly
          traded employer securities if any employer corporation, or
          any member of a controlled group of corporations which
          includes such employer corporation, has issued a class of
          stock which is a publicly traded employer security.
          (ii) Exception for certain controlled groups with publicly
            traded securities
            Clause (i) shall not apply to a plan if - 
              (I) no employer corporation, or parent corporation of an
            employer corporation, has issued any publicly traded
            employer security, and
              (II) no employer corporation, or parent corporation of an
            employer corporation, has issued any special class of stock
            which grants particular rights to, or bears particular
            risks for, the holder or issuer with respect to any
            corporation described in clause (i) which has issued any
            publicly traded employer security.
          (iii) Definitions
            For purposes of this subparagraph, the term - 
              (I) "controlled group of corporations" has the meaning
            given such term by section 1563(a) of title 26, except that
            "50 percent" shall be substituted for "80 percent" each
            place it appears,
              (II) "employer corporation" means a corporation which is
            an employer maintaining the plan, and
              (III) "parent corporation" has the meaning given such
            term by section 424(e) of title 26.
      (6) Other definitions
        For purposes of this paragraph - 
        (A) Applicable individual
          The term "applicable individual" means - 
            (i) any participant in the plan, and
            (ii) any beneficiary who has an account under the plan with
          respect to which the beneficiary is entitled to exercise the
          rights of a participant.
        (B) Elective deferral
          The term "elective deferral" means an employer contribution
        described in section 402(g)(3)(A) of title 26.
        (C) Employer security
          The term "employer security" has the meaning given such term
        by section 1107(d)(1) of this title.
        (D) Employee stock ownership plan
          The term "employee stock ownership plan" has the meaning
        given such term by section 4975(e)(7) of title 26.
        (E) Publicly traded employer securities
          The term "publicly traded employer securities" means employer
        securities which are readily tradable on an established
        securities market.
        (F) Year of service
          The term "year of service" has the meaning given such term by
        section 1053(b)(2) of this title.
      (7) Transition rule for securities attributable to employer
        contributions
        (A) Rules phased in over 3 years
          (i) In general
            In the case of the portion of an account to which paragraph
          (3) applies and which consists of employer securities
          acquired in a plan year beginning before January 1, 2007,
          paragraph (3) shall only apply to the applicable percentage
          of such securities. This subparagraph shall be applied
          separately with respect to each class of securities.
          (ii) Exception for certain participants aged 55 or over
            Clause (i) shall not apply to an applicable individual who
          is a participant who has attained age 55 and completed at
          least 3 years of service before the first plan year beginning
          after December 31, 2005.
        (B) Applicable percentage
          For purposes of subparagraph (A), the applicable percentage
        shall be determined as follows:

    Plan year to which                                    The applicable
    paragraph (3) applies:                                percentage is:
      1st                                                      33     
      2d                                                       66     
      3d                                                       100.   

    (k) Cross reference
          For special rules relating to plan provisions adopted to
        preclude discrimination, see section 1053(c)(2) of this title.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 204, Sept. 2, 1974, 88 Stat. 858;
    Pub. L. 98-397, title I, Secs. 102(e)(3), (f), 105(b), title III,
    Sec. 301(a)(2), Aug. 23, 1984, 98 Stat. 1429, 1436, 1451; Pub. L.
    99-272, title XI, Sec. 11006(a), Apr. 7, 1986, 100 Stat. 243; Pub.
    L. 99-509, title IX, Sec. 9202(a), Oct. 21, 1986, 100 Stat. 1975;
    Pub. L. 99-514, title XI, Sec. 1113(e)(4)(B), title XVIII, Secs.
    1879(u)(1), 1898(a)(4)(B)(ii), (f)(1)(B), (2), Oct. 22, 1986, 100
    Stat. 2448, 2913, 2944, 2956; Pub. L. 100-203, title IX, Sec.
    9346(a), Dec. 22, 1987, 101 Stat. 1330-374; Pub. L. 101-239, title
    VII, Secs. 7862(b)(1)(A), (2), 7871(a)(1), (3), 7881(m)(2)(A)-(C),
    7891(a)(1), 7894(c)(4)-(6), Dec. 19, 1989, 103 Stat. 2432, 2434,
    2435, 2444, 2445, 2449; Pub. L. 103-465, title VII, Sec. 766(a),
    Dec. 8, 1994, 108 Stat. 5036; Pub. L. 105-34, title X, Sec.
    1071(b)(2), Aug. 5, 1997, 111 Stat. 948; Pub. L. 107-16, title VI,
    Secs. 645(a)(2), (b)(2), 659(b), June 7, 2001, 115 Stat. 124, 125,
    139; Pub. L. 107-147, title IV, Sec. 411(u)(2), Mar. 9, 2002, 116
    Stat. 52; Pub. L. 109-280, title I, Sec. 107(a)(5)-(8), title V,
    Sec. 502(c)(1), title VII, Sec. 701(a)(1), title IX, Sec.
    901(b)(1), Aug. 17, 2006, 120 Stat. 819, 941, 981, 1029.)


-STATAMEND-
                           AMENDMENT OF SECTION                       
      Pub. L. 109-280, title I, Sec. 107(a)(5)-(8), (e), Aug. 17, 2006,
    120 Stat. 819, 820, provided that, applicable to plan years
    beginning after 2007, this section is amended as follows:
      (1) in subsections (g)(1) and (i)(2)(B), by substituting
    "1082(d)(2)" for "1082(c)(8)";
      (2) in subsection (i)(3), by substituting "funding target
    attainment percentage (as defined in section 1083(d)(2) of this
    title)" for "funded current liability percentage (within the
    meaning of section 1082(d)(8) of this title)"; and
      (3) in subsection (i)(4), by substituting "section 1082(b)(1) of
    this title, without regard to section 1082(b)(2) of this title" for
    "section 1082(c)(11)(A) of this title, without regard to section
    1082(c)(11)(B) of this title".
      Pub. L. 109-280, title V, Sec. 502(c)(1), (d), Aug. 17, 2006, 120
    Stat. 941, provided that, applicable to plan years beginning after
    Dec. 31, 2007, subsection (h)(1) of this section is amended by
    inserting before the period at the end "and to each employer who
    has an obligation to contribute to the plan".

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Social Security Act, referred to in subsec. (b)(1)(G), is act
    Aug. 14, 1935, ch. 531, 49 Stat. 620, as amended. Title II of the
    Social Security Act is classified generally to subchapter II (Sec.
    401 et seq.) of chapter 7 of Title 42, The Public Health and
    Welfare. For complete classification of this Act to the Code, see
    section 1305 of Title 42 and Tables.


-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (b)(5). Pub. L. 109-280, Sec. 701(a)(1), added
    par. (5).
      Subsecs. (j), (k). Pub. L. 109-280, Sec. 901(b)(1), added subsec.
    (j) and redesignated former subsec. (j) as (k).
      2002 - Subsec. (h)(9). Pub. L. 107-147 struck out "significantly"
    before "reduces" and before "reducing".
      2001 - Subsec. (g)(2). Pub. L. 107-16, Sec. 645(b)(2), inserted
    after second sentence "The Secretary of the Treasury shall by
    regulations provide that this paragraph shall not apply to any plan
    amendment which reduces or eliminates benefits or subsidies which
    create significant burdens or complexities for the plan and plan
    participants, unless such amendment adversely affects the rights of
    any participant in a more than de minimis manner."
      Subsec. (g)(4), (5). Pub. L. 107-16, Sec. 645(a)(2), added pars.
    (4) and (5).
      Subsec. (h). Pub. L. 107-16, Sec. 659(b), amended subsec. (h)
    generally. Prior to amendment, subsec. (h) read as follows:
      "(1) A plan described in paragraph (2) may not be amended so as
    to provide for a significant reduction in the rate of future
    benefit accrual, unless, after adoption of the plan amendment and
    not less than 15 days before the effective date of the plan
    amendment, the plan administrator provides a written notice,
    setting forth the plan amendment and its effective date, to - 
        "(A) each participant in the plan,
        "(B) each beneficiary who is an alternate payee (within the
      meaning of section 1056(d)(3)(K) of this title) under an
      applicable qualified domestic relations order (within the meaning
      of section 1056(d)(3)(B)(i) of this title), and
        "(C) each employee organization representing participants in
      the plan,
    except that such notice shall instead be provided to a person
    designated, in writing, to receive such notice on behalf of any
    person referred to in subparagraph (A), (B), or (C).
      "(2) A plan is described in this paragraph if such plan is - 
        "(A) a defined benefit plan, or
        "(B) an individual account plan which is subject to the funding
      standards of section 1082 of this title."
      1997 - Subsec. (d)(1). Pub. L. 105-34 substituted "the dollar
    limit under section 1053(e)(1) of this title" for "$3,500".
      1994 - Subsecs. (i), (j). Pub. L. 103-465 added subsec. (i) and
    redesignated former subsec. (i) as (j).
      1989 - Subsec. (b)(1)(A). Pub. L. 101-239, Sec. 7894(c)(4),
    substituted "subparagraph" for "suparagraph" in last sentence.
      Subsec. (b)(1)(E). Pub. L. 101-239, Sec. 7894(c)(5), substituted
    "term 'year of service' " for "term 'years of service' ".
      Subsec. (b)(2)(B). Pub. L. 101-239, Sec. 7871(a)(1), redesignated
    subpar. (C) as (B) and struck out former subpar. (B) which read as
    follows: "Subparagraph (A) shall not apply with respect to any
    employee who is a highly compensated employee (within the meaning
    of section 414(q) of title 26) to the extent provided in
    regulations prescribed by the Secretary of the Treasury for
    purposes of precluding discrimination in favor of highly
    compensated employees within the meaning of subchapter D of chapter
    1 of title 26."
      Subsec. (b)(2)(C). Pub. L. 101-239, Sec. 7871(a)(3), substituted
    "subparagraphs (B) and (C)" for "subparagraphs (C) and (D)".
      Pub. L. 101-239, Sec. 7871(a)(1), redesignated subpar. (D) as
    (C). Former subpar. (C) redesignated (B).
      Subsec. (b)(2)(D). Pub. L. 101-239, Sec. 7871(a)(1), redesignated
    subpar. (D) as (C).
      Subsec. (c)(2)(B). Pub. L. 101-239, Sec. 7881(m)(2)(B), inserted
    heading and amended text generally. Prior to amendment, text read
    as follows:
      "(i) In the case of a defined benefit plan providing an annual
    benefit in the form of a single life annuity (without ancillary
    benefits) commencing at normal retirement age, the accrued benefit
    derived from contributions made by an employee as of any applicable
    date is the annual benefit equal to the employee's accumulated
    contributions multiplied by the appropriate conversion factor.
      "(ii) For purposes of clause (i), the term 'appropriate
    conversion factor' means the factor necessary to convert an amount
    equal to the accumulated contributions to a single life annuity
    (without ancillary benefits) commencing at normal retirement age
    and shall be 10 percent for a normal retirement age of 65 years.
    For other normal retirement ages the conversion factor shall be
    determined in accordance with regulations prescribed by the
    Secretary of the Treasury or his delegate."
      Subsec. (c)(2)(C)(iii). Pub. L. 101-239, Sec. 7881(m)(2)(A),
    amended cl. (iii) generally. Prior to amendment, cl. (iii) read as
    follows: "interest on the sum of the amounts determined under
    clauses (i) and (ii) compounded annually at the rate of 120 percent
    of the Federal mid-term rate (as in effect under section 1274 of
    title 26 for the 1st month of a plan year) from the beginning of
    the first plan year to which section 1053(a)(2) of this title
    applies (by reason of the applicable effective date) to the date
    upon which the employee would attain normal retirement age."
      Subsec. (c)(2)(E). Pub. L. 101-239, Sec. 7881(m)(2)(C), struck
    out subpar. (E) which read as follows: "The accrued benefit derived
    from employee contributions shall not exceed the greater of - 
        "(i) the employee's accrued benefit under the plan, or
        "(ii) the accrued benefit derived from employee contributions
      determined as though the amounts calculated under clauses (ii)
      and (iii) of subparagraph (C) were zero."
      Subsec. (d). Pub. L. 101-239, Sec. 7894(c)(6), removed the
    indentation of the term "Paragraph" where first appearing in
    concluding provisions.
      Subsec. (g)(3)(A). Pub. L. 101-239, Sec. 7891(a)(1), substituted
    "Internal Revenue Code of 1986" for "Internal Revenue Code of
    1954", which for purposes of codification was translated as "title
    26" thus requiring no change in text.
      Subsec. (h). Pub. L. 101-239, Sec. 7862(b)(1)(A), made technical
    correction to directory language of Pub. L. 99-514, Sec.
    1879(u)(1), see 1986 Amendment note below.
      Subsec. (h)(2). Pub. L. 101-239, Sec. 7862(b)(2), adjusted left-
    hand margin of introductory provisions to full measure.
      1987 - Subsec. (c)(2)(C)(iii). Pub. L. 100-203, Sec. 9346(a)(1),
    substituted "120 percent of the Federal mid-term rate (as in effect
    under section 1274 of title 26 for the 1st month of a plan year)"
    for "5 percent per annum".
      Subsec. (c)(2)(D). Pub. L. 100-203, Sec. 9346(a)(2), struck out
    ", the rate of interest described in clause (iii) of subparagraph
    (C), or both," before "from time to time" in first sentence and
    struck out second sentence which read as follows: "The rate of
    interest shall bear the relationship to 5 percent which the
    Secretary of the Treasury determines to be comparable to the
    relationship which the long-term money rates and investment yields
    for the last period of 10 calendar years ending at least 12 months
    before the beginning of the plan year bear to the long-term money
    rates and investment yields for the 10-calendar year period 1964
    through 1973."
      1986 - Subsec. (a). Pub. L. 99-509, Sec. 9202(a)(1), amended
    subsec. (a) generally. Prior to amendment, subsec. (a) read as
    follows: "Each pension plan shall satisfy the requirements of
    subsection (b)(2) of this section, and in the case of a defined
    benefit plan shall also satisfy the requirements of subsection
    (b)(1) of this section."
      Subsec. (b)(1)(H). Pub. L. 99-509, Sec. 9202(a)(2), added subpar.
    (H).
      Subsec. (b)(2) to (4). Pub. L. 99-509, Sec. 9202(a)(3), added
    par. (2) and redesignated former pars. (2) and (3) as (3) and (4),
    respectively.
      Subsec. (e). Pub. L. 99-514, Sec. 1898(a)(4)(B)(ii), inserted
    last sentence and struck out former last sentence which read as
    follows: "In the case of a defined contribution plan, the plan
    provision required under this subsection may provide that such
    repayment must be made before the participant has 5 consecutive 1-
    year breaks in service commencing after such withdrawal".
      Subsec. (g)(1). Pub. L. 99-514, Sec. 1898(f)(2), inserted
    reference to section 1441.
      Subsec. (g)(3). Pub. L. 99-514, Sec. 1898(f)(1)(B), added par.
    (3).
      Subsec. (h). Pub. L. 99-514, Sec. 1879(u)(1), as amended by Pub.
    L. 101-239, Sec. 7862(b)(1)(A), designated existing provisions as
    par. (1), substituted "plan described in paragraph (2)" for "single-
    employer plan", redesignated former pars. (1) to (3) as subpars.
    (A) to (C), respectively, substituted "subparagraph (A), (B), or
    (C)" for "paragraph (1), (2), or (3)" in concluding provisions, and
    added par. (2).
      Pub. L. 99-272 added subsec. (h). Former subsec. (h) redesignated
    (i).
      Subsec. (i). Pub. L. 99-514, Sec. 1113(e)(4)(B), amended subsec.
    (i) generally, striking out reference to class year plans under
    section 1053(c)(3) of this title.
      Pub. L. 99-272 redesignated former subsec. (h) as (i).
      1984 - Subsec. (b)(3)(A). Pub. L. 98-397, Sec. 102(e)(3),
    inserted ", determined without regard to section 1052(b)(5) of this
    title" after "section 1052(b) of this title".
      Subsec. (d)(1). Pub. L. 98-397, Sec. 105(b), substituted "$3,500"
    for "$1,750".
      Subsec. (e). Pub. L. 98-397, Sec. 102(f), substituted "5
    consecutive 1-year breaks in service" for "any 1-year break in
    service".
      Subsec. (g). Pub. L. 98-397, Sec. 301(a)(2), designated existing
    provisions as par. (1) and added par. (2).

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Amendment by section 107(a)(5) to (8) of Pub. L. 109-280
    applicable to plan years beginning after 2007, see section 107(e)
    of Pub. L. 109-280, set out as a note under section 1021 of this
    title.
      Amendment by section 502(c)(1) of Pub. L. 109-280 applicable to
    plan years beginning after Dec. 31, 2007, see section 502(d) of
    Pub. L. 109-280, set out as a note under section 4980F of Title 26,
    Internal Revenue Code.
      Amendment by section 701(a)(1) of Pub. L. 109-280 applicable to
    periods beginning on or after June 29, 2005, with provisions
    relating to vesting and interest credit requirements for plans in
    existence on June 29, 2005, special rule for collectively bargained
    plans, and provisions relating to conversions of plan amendments
    adopted after, and taking effect after, June 29, 2005, see section
    701(e) of Pub. L. 109-280, set out as a note under section 411 of
    Title 26, Internal Revenue Code.
      Amendment by section 901(b)(1) of Pub. L. 109-280 applicable to
    plan years beginning after Dec. 31, 2006, with special rules for
    collectively bargained agreements and certain employer securities
    held in an ESOP, see section 901(c) of Pub. L. 109-280, set out as
    a note under section 401 of Title 26, Internal Revenue Code.

                     EFFECTIVE DATE OF 2002 AMENDMENT                 
      Amendment by Pub. L. 107-147 effective as if included in the
    provisions of the Economic Growth and Tax Relief Reconciliation Act
    of 2001, Pub. L. 107-16, to which such amendment relates, see
    section 411(x) of Pub. L. 107-147, set out as a note under section
    25B of Title 26, Internal Revenue Code.

                     EFFECTIVE DATE OF 2001 AMENDMENT                 
      Amendment by section 645(a)(2) of Pub. L. 107-16 applicable to
    years beginning after Dec. 31, 2001, see section 645(a)(3) of Pub.
    L. 107-16, set out as a note under section 411 of Title 26,
    Internal Revenue Code.
      Amendment by section 659(b) of Pub. L. 107-16 applicable to plan
    amendments taking effect on or after June 7, 2001, with transition
    provisions and special notice rule, see section 659(c) of Pub. L.
    107-16, set out as an Effective Date note under section 4980F of
    Title 26, Internal Revenue Code.

                     EFFECTIVE DATE OF 1997 AMENDMENT                 
      Amendment by Pub. L. 105-34 applicable to plan years beginning
    after Aug. 5, 1997, see section 1071(c) of Pub. L. 105-34, set out
    as a note under section 411 of Title 26, Internal Revenue Code.

                     EFFECTIVE DATE OF 1994 AMENDMENT                 
      Amendment by Pub. L. 103-465 applicable to plan amendments
    adopted on or after Dec. 8, 1994, see section 766(d) of Pub. L. 103-
    465, set out as a note under section 401 of Title 26, Internal
    Revenue Code.

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by section 7862(b)(1)(A), (2) of Pub. L. 101-239
    effective as if included in the provision of the Tax Reform Act of
    1986, Pub. L. 99-514, to which such amendment relates, see section
    7863 of Pub. L. 101-239, set out as a note under section 106 of
    Title 26, Internal Revenue Code.
      Amendment by section 7871(a)(1), (3) of Pub. L. 101-239 effective
    as if included in the amendments made by section 9202 of the
    Omnibus Budget Reconciliation Act of 1986, Pub. L. 99-509, see
    section 7871(a)(4) of Pub. L. 101-239, set out as a note under
    section 411 of Title 26.
      Amendment by section 7881(m)(2)(A)-(C) of Pub. L. 101-239
    effective, except as otherwise provided, as if included in the
    provision of the Pension Protection Act, Pub. L. 100-203, Secs.
    9302-9346, to which such amendment relates, see section 7882 of
    Pub. L. 101-239, set out as a note under section 401 of Title 26.
      Amendment by section 7891(a)(1) of Pub. L. 101-239 effective,
    except as otherwise provided, as if included in the provision of
    the Tax Reform Act of 1986, Pub. L. 99-514, to which such amendment
    relates, see section 7891(f) of Pub. L. 101-239, set out as a note
    under section 1002 of this title.
      Amendment by section 7894(c)(4)-(6) of Pub. L. 101-239 effective,
    except as otherwise provided, as if originally included in the
    provision of the Employee Retirement Income Security Act of 1974,
    Pub. L. 93-406, to which such amendment relates, see section
    7894(i) of Pub. L. 101-239, set out as a note under section 1002 of
    this title.

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Section 9346(c) of Pub. L. 100-203 provided that:
      "(1) In general. - The amendments made by this section [amending
    this section and section 411 of Title 26, Internal Revenue Code]
    shall apply to plan years beginning after December 31, 1987.
      "(2) Plan amendments not required until january 1, 1989. - If any
    amendment made by this section requires an amendment to any plan,
    such plan amendment shall not be required to be made before the
    first plan year beginning on or after January 1, 1989, if - 
        "(A) during the period after such amendments made by this
      section take effect and before such first plan year, the plan is
      operated in accordance with the requirements of such amendments
      or in accordance with an amendment prescribed by the Secretary of
      the Treasury and adopted by the plan, and
        "(B) such plan amendment applies retroactively to the period
      after such amendments take effect and such first plan year.
    A plan shall not be treated as failing to provide definitely
    determinable benefits or contributions, or to be operated in
    accordance with the provisions of the plan, merely because it
    operates in accordance with this subsection."

                     EFFECTIVE DATE OF 1986 AMENDMENTS                 
      Amendment by section 1113(e)(4)(B) of Pub. L. 99-514 applicable
    to plan years beginning after Dec. 31, 1988, with special rule for
    plans maintained pursuant to collective bargaining agreements
    ratified before Mar. 1, 1986, and not applicable to employees who
    do not have 1 hour of service in any plan year to which the
    amendment applies, see section 1113(f) of Pub. L. 99-514, as
    amended, set out as a note under section 411 of Title 26, Internal
    Revenue Code.
      Section 1879(u)(5), formerly section 1879(u)(4), of Pub. L. 99-
    514, as redesignated and amended by Pub. L. 101-239, title VII,
    Sec. 7862(b)(1)(A), (B), Dec. 19, 1989, 103 Stat. 2432, provided
    that:
      "(A) General rule. - Except as provided in subparagraph (B), the
    preceding provisions of this subsection [amending this section and
    sections 1002 and 1349 of this title] shall be effective as if such
    provisions were included in the enactment of the Single-Employer
    Pension Plan Amendments Act of 1986 [Pub. L. 99-272, title XI].
      "(B) Special rule. - Subparagraph (B) of section 204(h)(2) of the
    Employee Retirement Income Security Act of 1974 (as amended by
    paragraph (1)) [29 U.S.C. 1054(h)(2)(B)] shall apply only with
    respect to plan amendments adopted on or after the date of the
    enactment of this Act [Oct. 22, 1986]."
      Amendment by section 1898(a)(4)(B)(ii), (f)(1)(B), (2) of Pub. L.
    99-514 effective as if included in the provision of the Retirement
    Equity Act of 1984, Pub. L. 98-397, to which such amendment
    relates, except as otherwise provided, see section 1898(j) of Pub.
    L. 99-514, set out as a note under section 401 of this title.
      Amendment by Pub. L. 99-509 applicable only with respect to plan
    years beginning on or after Jan. 1, 1988, and only to employees who
    have 1 hour of service in any plan year to which amendment applies,
    with special rule for collectively bargained plans, see section
    9204 of Pub. L. 99-509, set out as an Effective and Termination
    Dates of 1986 Amendments note under section 623 of this title.
      Section 11006(b) of Pub. L. 99-272 provided that: "The amendments
    made by subsection (a) [amending this section] shall apply with
    respect to plan amendments adopted on or after January 1, 1986,
    except that, in the case of plan amendments adopted on or after
    January 1, 1986, and on or before the date of the enactment of this
    Act [Apr. 7, 1986], the requirements of section 204(h) of the
    Employee Retirement Income Security Act of 1974 [subsec. (h) of
    this section] (as added by this section) shall be treated as met if
    the written notice required under such section 204(h) is provided
    before 60 days after the date of the enactment of this Act."

                     EFFECTIVE DATE OF 1984 AMENDMENT                 
      Amendment by sections 102(e)(3), (f), and 105(b) of Pub. L. 98-
    397 applicable to plan years beginning after Dec. 31, 1984, except
    as otherwise provided, see sections 302 and 303 of Pub. L. 98-397,
    set out as a note under section 1001 of this title.
      Amendment by section 301(a)(2) of Pub. L. 98-397 not applicable
    to the termination of a certain defined benefit plan, see section
    303(f) of Pub. L. 98-397.

                                REGULATIONS                            
      Secretary of Labor, Secretary of the Treasury, and Equal
    Employment Opportunity Commission each to issue before Feb. 1,
    1988, final regulations to carry out amendments made by Pub. L. 99-
    509, see section 9204 of Pub. L. 99-509, set out as an Effective
    and Termination Dates of 1986 Amendment note under section 623 of
    this title.
      Secretary authorized, effective Sept. 2, 1974, to promulgate
    regulations wherever provisions of this subchapter call for the
    promulgation of regulations, see section 1031 of this title.

    APPLICABILITY OF AMENDMENTS BY SUBTITLES A AND B OF TITLE I OF PUB.
                                L. 109-280
      For special rules on applicability of amendments by subtitles A
    (Secs. 101-107) and B (Secs. 111-116) of title I of Pub. L. 109-280
    to certain eligible cooperative plans, PBGC settlement plans, and
    eligible government contractor plans, see sections 104, 105, and
    106 of Pub. L. 109-280, set out as notes under section 401 of Title
    26, Internal Revenue Code.

    PLAN AMENDMENTS REFLECTING AMENDMENTS BY SECTION 7881(M) OF PUB. L.
              101-239 NOT TREATED AS REDUCING ACCRUED BENEFIT
      Section 7881(m)(3) of Pub. L. 101-239 provided that:"If - 
        "(A) during the period beginning December 22, 1987, and ending
      June 21, 1988, a plan was amended to reflect the amendments made
      by section 9346 of the Pension Protection Act [Pub. L. 100-203,
      amending this section and section 411 of Title 26, Internal
      Revenue Code], and
        "(B) such plan is amended to reflect the amendments made by
      this subsection [amending this section, section 1002 of this
      title, and section 411 of Title 26],
    any plan amendment described in subparagraph (B) shall not be
    treated as reducing accrued benefits for purposes of section
    411(d)(6) of the Internal Revenue Code of 1986 [section 411(d)(6)
    of Title 26] or section 204(g) of ERISA [subsec. (g) of this
    section]."

            PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989        
      For provisions directing that if any amendments made by subtitle
    A or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or
    title XVIII [Secs. 1800-1899A] of Pub. L. 99-514 require an
    amendment to any plan, such plan amendment shall not be required to
    be made before the first plan year beginning on or after Jan. 1,
    1989, see section 1140 of Pub. L. 99-514, as amended, set out as a
    note under section 401 of Title 26, Internal Revenue Code.
      For provisions directing that if any amendments made by Pub. L.
    99-509 require an amendment to any plan, such plan amendment shall
    not be required to be made before the first plan year beginning on
    or after Jan. 1, 1989, see section 9204 of Pub. L. 99-509, set out
    as an Effective and Termination Dates of 1986 Amendment note under
    section 623 of this title.

-FOOTNOTE-
    (!1) So in original. Probably should be "similar account".


-End-



-CITE-
    29 USC Sec. 1055                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 2 - participation and vesting

-HEAD-
    Sec. 1055. Requirement of joint and survivor annuity and
      preretirement survivor annuity

-STATUTE-
    (a) Required contents for applicable plans
      Each pension plan to which this section applies shall provide
    that - 
        (1) in the case of a vested participant who does not die before
      the annuity starting date, the accrued benefit payable to such
      participant shall be provided in the form of a qualified joint
      and survivor annuity, and
        (2) in the case of a vested participant who dies before the
      annuity starting date and who has a surviving spouse, a qualified
      preretirement survivor annuity shall be provided to the surviving
      spouse of such participant.
    (b) Applicable plans
      (1) This section shall apply to - 
        (A) any defined benefit plan,
        (B) any individual account plan which is subject to the funding
      standards of section 1082 of this title, and
        (C) any participant under any other individual account plan
      unless - 
          (i) such plan provides that the participant's nonforfeitable
        accrued benefit (reduced by any security interest held by the
        plan by reason of a loan outstanding to such participant) is
        payable in full, on the death of the participant, to the
        participant's surviving spouse (or, if there is no surviving
        spouse or the surviving spouse consents in the manner required
        under subsection (c)(2) of this section, to a designated
        beneficiary),
          (ii) such participant does not elect the payment of benefits
        in the form of a life annuity, and
          (iii) with respect to such participant, such plan is not a
        direct or indirect transferee (in a transfer after December 31,
        1984) of a plan which is described in subparagraph (A) or (B)
        or to which this clause applied with respect to the
        participant.

    Clause (iii) of subparagraph (C) shall apply only with respect to
    the transferred assets (and income therefrom) if the plan
    separately accounts for such assets and any income therefrom.
      (2)(A) In the case of - 
        (i) a tax credit employee stock ownership plan (as defined in
      section 409(a) of title 26), or
        (ii) an employee stock ownership plan (as defined in section
      4975(e)(7) of title 26),

    subsection (a) of this section shall not apply to that portion of
    the employee's accrued benefit to which the requirements of section
    409(h) of title 26 apply.
      (B) Subparagraph (A) shall not apply with respect to any
    participant unless the requirements of clause (!1) (i), (ii), and
    (iii) of paragraph (1)(C) are met with respect to such participant.

      (4) (!2) This section shall not apply to a plan which the
    Secretary of the Treasury or his delegate has determined is a plan
    described in section 404(c) of title 26 (or a continuation thereof)
    in which participation is substantially limited to individuals who,
    before January 1, 1976, ceased employment covered by the plan.

      (4) (!2) A plan shall not be treated as failing to meet the
    requirements of paragraph (1)(C) or (2) merely because the plan
    provides that benefits will not be payable to the surviving spouse
    of the participant unless the participant and such spouse had been
    married throughout the 1-year period ending on the earlier of the
    participant's annuity starting date or the date of the
    participant's death.
    (c) Plans meeting requirements of section
      (1) A plan meets the requirements of this section only if - 
        (A) under the plan, each participant - 
          (i) may elect at any time during the applicable election
        period to waive the qualified joint and survivor annuity form
        of benefit or the qualified preretirement survivor annuity form
        of benefit (or both), and
          (ii) may revoke any such election at any time during the
        applicable election period, and

        (B) the plan meets the requirements of paragraphs (2), (3), and
      (4).

      (2) Each plan shall provide that an election under paragraph
    (1)(A)(i) shall not take effect unless - 
        (A)(i) the spouse of the participant consents in writing to
      such election, (ii) such election designates a beneficiary (or a
      form of benefits) which may not be changed without spousal
      consent (or the consent of the spouse expressly permits
      designations by the participant without any requirement of
      further consent by the spouse), and (iii) the spouse's consent
      acknowledges the effect of such election and is witnessed by a
      plan representative or a notary public, or
        (B) it is established to the satisfaction of a plan
      representative that the consent required under subparagraph (A)
      may not be obtained because there is no spouse, because the
      spouse cannot be located, or because of such other circumstances
      as the Secretary of the Treasury may by regulations prescribe.

    Any consent by a spouse (or establishment that the consent of a
    spouse may not be obtained) under the preceding sentence shall be
    effective only with respect to such spouse.
      (3)(A) Each plan shall provide to each participant, within a
    reasonable period of time before the annuity starting date (and
    consistent with such regulations as the Secretary of the Treasury
    may prescribe) a written explanation of - 
        (i) the terms and conditions of the qualified joint and
      survivor annuity,
        (ii) the participant's right to make, and the effect of, an
      election under paragraph (1) to waive the joint and survivor
      annuity form of benefit,
        (iii) the rights of the participant's spouse under paragraph
      (2), and
        (iv) the right to make, and the effect of, a revocation of an
      election under paragraph (1).

      (B)(i) Each plan shall provide to each participant, within the
    applicable period with respect to such participant (and consistent
    with such regulations as the Secretary may prescribe), a written
    explanation with respect to the qualified preretirement survivor
    annuity comparable to that required under subparagraph (A).
      (ii) For purposes of clause (i), the term "applicable period"
    means, with respect to a participant, whichever of the following
    periods ends last:
        (I) The period beginning with the first day of the plan year in
      which the participant attains age 32 and ending with the close of
      the plan year preceding the plan year in which the participant
      attains age 35.
        (II) A reasonable period after the individual becomes a
      participant.
        (III) A reasonable period ending after paragraph (5) ceases to
      apply to the participant.
        (IV) A reasonable period ending after this section applies to
      the participant.

    In the case of a participant who separates from service before
    attaining age 35, the applicable period shall be a reasonable
    period after separation.
      (4) Each plan shall provide that, if this section applies to a
    participant when part or all of the participant's accrued benefit
    is to be used as security for a loan, no portion of the
    participant's accrued benefit may be used as security for such loan
    unless - 
        (A) the spouse of the participant (if any) consents in writing
      to such use during the 90-day period ending on the date on which
      the loan is to be so secured, and
        (B) requirements comparable to the requirements of paragraph
      (2) are met with respect to such consent.

      (5)(A) The requirements of this subsection shall not apply with
    respect to the qualified joint and survivor annuity form of benefit
    or the qualified preretirement survivor annuity form of benefit, as
    the case may be, if such benefit may not be waived (or another
    beneficiary selected) and if the plan fully subsidizes the costs of
    such benefit.
      (B) For purposes of subparagraph (A), a plan fully subsidizes the
    costs of a benefit if under the plan the failure to waive such
    benefit by a participant would not result in a decrease in any plan
    benefits with respect to such participant and would not result in
    increased contributions from such participant.
      (6) If a plan fiduciary acts in accordance with part 4 of this
    subtitle in - 
        (A) relying on a consent or revocation referred to in paragraph
      (1)(A), or
        (B) making a determination under paragraph (2),

    then such consent, revocation, or determination shall be treated as
    valid for purposes of discharging the plan from liability to the
    extent of payments made pursuant to such Act.
      (7) For purposes of this subsection, the term "applicable
    election period" means - 
        (A) in the case of an election to waive the qualified joint and
      survivor annuity form of benefit, the 180-day period ending on
      the annuity starting date, or
        (B) in the case of an election to waive the qualified
      preretirement survivor annuity, the period which begins on the
      first day of the plan year in which the participant attains age
      35 and ends on the date of the participant's death.

    In the case of a participant who is separated from service, the
    applicable election period under subparagraph (B) with respect to
    benefits accrued before the date of such separation from service
    shall not begin later than such date.
      (8) Notwithstanding any other provision of this subsection - 
        (A)(i) A plan may provide the written explanation described in
      paragraph (3)(A) after the annuity starting date. In any case to
      which this subparagraph applies, the applicable election period
      under paragraph (7) shall not end before the 30th day after the
      date on which such explanation is provided.
        (ii) The Secretary of the Treasury may by regulations limit the
      application of clause (i), except that such regulations may not
      limit the period of time by which the annuity starting date
      precedes the provision of the written explanation other than by
      providing that the annuity starting date may not be earlier than
      termination of employment.
        (B) A plan may permit a participant to elect (with any
      applicable spousal consent) to waive any requirement that the
      written explanation be provided at least 30 days before the
      annuity starting date (or to waive the 30-day requirement under
      subparagraph (A)) if the distribution commences more than 7 days
      after such explanation is provided.
    (d) "Qualified joint and survivor annuity" defined
      For purposes of this section, the term "qualified joint and
    survivor annuity" means an annuity - 
        (1) for the life of the participant with a survivor annuity for
      the life of the spouse which is not less than 50 percent of (and
      is not greater than 100 percent of) the amount of the annuity
      which is payable during the joint lives of the participant and
      the spouse, and
        (2) which is the actuarial equivalent of a single annuity for
      the life of the participant.

    Such term also includes any annuity in a form having the effect of
    an annuity described in the preceding sentence.
    (e) "Qualified preretirement survivor annuity" defined
      For purposes of this section - 
        (1) Except as provided in paragraph (2), the term "qualified
      preretirement survivor annuity" means a survivor annuity for the
      life of the surviving spouse of the participant if - 
          (A) the payments to the surviving spouse under such annuity
        are not less than the amounts which would be payable as a
        survivor annuity under the qualified joint and survivor annuity
        under the plan (or the actuarial equivalent thereof) if - 
            (i) in the case of a participant who dies after the date on
          which the participant attained the earliest retirement age,
          such participant had retired with an immediate qualified
          joint and survivor annuity on the day before the
          participant's date of death, or
            (ii) in the case of a participant who dies on or before the
          date on which the participant would have attained the
          earliest retirement age, such participant had - 
              (I) separated from service on the date of death,
              (II) survived to the earliest retirement age,
              (III) retired with an immediate qualified joint and
            survivor annuity at the earliest retirement age, and
              (IV) died on the day after the day on which such
            participant would have attained the earliest retirement
            age, and

          (B) under the plan, the earliest period for which the
        surviving spouse may receive a payment under such annuity is
        not later than the month in which the participant would have
        attained the earliest retirement age under the plan.

      In the case of an individual who separated from service before
      the date of such individual's death, subparagraph (A)(ii)(I)
      shall not apply.
        (2) In the case of any individual account plan or participant
      described in subparagraph (B) or (C) of subsection (b)(1) of this
      section, the term "qualified preretirement survivor annuity"
      means an annuity for the life of the surviving spouse the
      actuarial equivalent of which is not less than 50 percent of the
      portion of the account balance of the participant (as of the date
      of death) to which the participant had a nonforfeitable right
      (within the meaning of section 1053 of this title).
        (3) For purposes of paragraphs (1) and (2), any security
      interest held by the plan by reason of a loan outstanding to the
      participant shall be taken into account in determining the amount
      of the qualified preretirement survivor annuity.
    (f) Marriage requirements for plan
      (1) Except as provided in paragraph (2), a plan may provide that
    a qualified joint and survivor annuity (or a qualified
    preretirement survivor annuity) will not be provided unless the
    participant and spouse had been married throughout the 1-year
    period ending on the earlier of - 
        (A) the participant's annuity starting date, or
        (B) the date of the participant's death.

      (2) For purposes of paragraph (1), if - 
        (A) a participant marries within 1 year before the annuity
      starting date, and
        (B) the participant and the participant's spouse in such
      marriage have been married for at least a 1-year period ending on
      or before the date of the participant's death,

    such participant and such spouse shall be treated as having been
    married throughout the 1-year period ending on the participant's
    annuity starting date.
    (g) Distribution of present value of annuity; written consent;
      determination of present value
      (1) A plan may provide that the present value of a qualified
    joint and survivor annuity or a qualified preretirement survivor
    annuity will be immediately distributed if such value does not
    exceed the amount that can be distributed without the participant's
    consent under section 1053(e) of this title. No distribution may be
    made under the preceding sentence after the annuity starting date
    unless the participant and the spouse of the participant (or where
    the participant has died, the surviving spouse) consent in writing
    to such distribution.
      (2) If - 
        (A) the present value of the qualified joint and survivor
      annuity or the qualified preretirement survivor annuity exceeds
      the amount that can be distributed without the participant's
      consent under section 1053(e) of this title, and
        (B) the participant and the spouse of the participant (or where
      the participant has died, the surviving spouse) consent in
      writing to the distribution,

    the plan may immediately distribute the present value of such
    annuity.
      (3) Determination of present value. - 
        (A) In general. - 
          (i) Present value. - Except as provided in subparagraph (B),
        for purposes of paragraphs (1) and (2), the present value shall
        not be less than the present value calculated by using the
        applicable mortality table and the applicable interest rate.
          (ii) Definitions. - For purposes of clause (i) - 
            (I) Applicable mortality table. - The term "applicable
          mortality table" means the table prescribed by the Secretary
          of the Treasury. Such table shall be based on the prevailing
          commissioners' standard table (described in section
          807(d)(5)(A) of title 26) used to determine reserves for
          group annuity contracts issued on the date as of which
          present value is being determined (without regard to any
          other subparagraph of section 807(d)(5) of such title).
            (II) Applicable interest rate. - The term "applicable
          interest rate" means the annual rate of interest on 30-year
          Treasury securities for the month before the date of
          distribution or such other time as the Secretary of the
          Treasury may by regulations prescribe.

        (B) Exception. - In the case of a distribution from a plan that
      was adopted and in effect prior to December 8, 1994, the present
      value of any distribution made before the earlier of - 
          (i) the later of when a plan amendment applying subparagraph
        (A) is adopted or made effective, or
          (ii) the first day of the first plan year beginning after
        December 31, 1999,

      shall be calculated, for purposes of paragraphs (1) and (2),
      using the interest rate determined under the regulations of the
      Pension Benefit Guaranty Corporation for determining the present
      value of a lump sum distribution on plan termination that were in
      effect on September 1, 1993, and using the provisions of the plan
      as in effect on the day before December 8, 1994; but only if such
      provisions of the plan met the requirements of this paragraph as
      in effect on the day before December 8, 1994.
    (h) Definitions
      For purposes of this section - 
        (1) The term "vested participant" means any participant who has
      a nonforfeitable right (within the meaning of section 1002(19) of
      this title) to any portion of such participant's accrued benefit.
        (2)(A) The term "annuity starting date" means - 
          (i) the first day of the first period for which an amount is
        payable as an annuity, or
          (ii) in the case of a benefit not payable in the form of an
        annuity, the first day on which all events have occurred which
        entitle the participant to such benefit.

        (B) For purposes of subparagraph (A), the first day of the
      first period for which a benefit is to be received by reason of
      disability shall be treated as the annuity starting date only if
      such benefit is not an auxiliary benefit.
        (3) The term "earliest retirement age" means the earliest date
      on which, under the plan, the participant could elect to receive
      retirement benefits.
    (i) Increased costs from providing annuity
      A plan may take into account in any equitable manner (as
    determined by the Secretary of the Treasury) any increased costs
    resulting from providing a qualified joint or survivor annuity or a
    qualified preretirement survivor annuity.
    (j) Use of participant's accrued benefit as security for loan as
      not preventing distribution
      If the use of any participant's accrued benefit (or any portion
    thereof) as security for a loan meets the requirements of
    subsection (c)(4) of this section, nothing in this section shall
    prevent any distribution required by reason of a failure to comply
    with the terms of such loan.
    (k) Spousal consent
      No consent of a spouse shall be effective for purposes of
    subsection (g)(1) or (g)(2) of this section (as the case may be)
    unless requirements comparable to the requirements for spousal
    consent to an election under subsection (c)(1)(A) of this section
    are met.
    (l) Regulations; consultation of Secretary of the Treasury with
      Secretary of Labor
      In prescribing regulations under this section, the Secretary of
    the Treasury shall consult with the Secretary of Labor.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 205, Sept. 2, 1974, 88 Stat. 862;
    Pub. L. 98-397, title I, Sec. 103(a), Aug. 23, 1984, 98 Stat. 1429;
    Pub. L. 99-514, title XI, Secs. 1139(c)(2), 1145(b), title XVIII,
    Sec. 1898(b)(1)(B), (2)(B), (3)(B), (4)(B), (5)(B), (6)(B), (7)(B),
    (8)(B), (9)(B), (10)(B), (11)(B), (12)(B), (13)(B), (14)(B), Oct.
    22, 1986, 100 Stat. 2488, 2491, 2945-2951; Pub. L. 101-239, title
    VII, Secs. 7861(d)(2), 7862(d)(1)(B), (3), (6)-(9), 7891(a)(1),
    (b)(3), (c), (e), 7894(c)(7)(A), Dec. 19, 1989, 103 Stat. 2431,
    2434, 2445, 2447, 2449; Pub. L. 103-465, title VII, Sec. 767(c)(2),
    Dec. 8, 1994, 108 Stat. 5039; Pub. L. 104-188, title I, Sec.
    1451(b), Aug. 20, 1996, 110 Stat. 1815; Pub. L. 105-34, title X,
    Sec. 1071(b)(2), title XVI, Sec. 1601(d)(5), Aug. 5, 1997, 111
    Stat. 948, 1089; Pub. L. 107-147, title IV, Sec. 411(r)(2), Mar. 9,
    2002, 116 Stat. 51; Pub. L. 109-280, title III, Sec. 302(a), title
    X, Sec. 1004(b), title XI, Sec. 1102(a)(2)(A), Aug. 17, 2006, 120
    Stat. 920, 1054, 1056.)


-STATAMEND-
                           AMENDMENT OF SECTION                       
      Pub. L. 109-280, title X, Sec. 1004(b), (c), Aug. 17, 2006, 120
    Stat. 1054, 1055, provided that, applicable to plan years beginning
    after Dec. 31, 2007, with special rule for collectively bargained
    plans, this section is amended as follows:
      (1) in subsection (c)(1)(A), by substituting a comma for ", and"
    in clause (i), by redesignating clause (ii) as (iii), and by adding
    a new clause (ii) to read as follows:
          "(ii) if the participant elects a waiver under clause (i),
        may elect the qualified optional survivor annuity at any time
        during the applicable election period, and";
      (2) in subsection (c)(3)(A)(i), by inserting "and of the
    qualified optional survivor annuity" after "annuity"; and
      (3) in subsection (d), by inserting "(1)" after "(d)", by
    redesignating paragraphs (1) and (2) as subparagraphs (A) and (B),
    respectively, and by adding paragraph (2) to read as follows:
      (2)(A) For purposes of this section, the term "qualified optional
    survivor annuity" means an annuity - 
        (i) for the life of the participant with a survivor annuity for
      the life of the spouse which is equal to the applicable
      percentage of the amount of the annuity which is payable during
      the joint lives of the participant and the spouse, and
        (ii) which is the actuarial equivalent of a single annuity for
      the life of the participant.

    Such term also includes any annuity in a form having the effect of
    an annuity described in the preceding sentence.
      (B)(i) For purposes of subparagraph (A), if the survivor annuity
    percentage - 
        (I) is less than 75 percent, the applicable percentage is 75
      percent, and
        (II) is greater than or equal to 75 percent, the applicable
      percentage is 50 percent.

      (ii) For purposes of clause (i), the term "survivor annuity
    percentage" means the percentage which the survivor annuity under
    the plan's qualified joint and survivor annuity bears to the
    annuity payable during the joint lives of the participant and the
    spouse.
      Pub. L. 109-280, title III, Sec. 302(a), (c), Aug. 17, 2006, 120
    Stat. 920, 921, provided that, applicable with respect to plan
    years beginning after Dec. 31, 2007, subsection (g)(3) of this
    section is amended to read as follows:
      (3)(A) For purposes of paragraphs (1) and (2), the present value
    shall not be less than the present value calculated by using the
    applicable mortality table and the applicable interest rate.
      (B) For purposes of subparagraph (A) - 
        (i) The term "applicable mortality table" means a mortality
      table, modified as appropriate by the Secretary of the Treasury,
      based on the mortality table specified for the plan year under
      subparagraph (A) of section 1083(h)(3) of this title (without
      regard to subparagraph (C) or (D) of such section).
        (ii) The term "applicable interest rate" means the adjusted
      first, second, and third segment rates applied under rules
      similar to the rules of section 1083(h)(2)(C) of this title for
      the month before the date of the distribution or such other time
      as the Secretary of the Treasury may by regulations prescribe.
        (iii) For purposes of clause (ii), the adjusted first, second,
      and third segment rates are the first, second, and third segment
      rates which would be determined under section 1083(h)(2)(C) of
      this title if - 
          (I) section 1083(h)(2)(D) of this title were applied by
        substituting the average yields for the month described in
        clause (ii) for the average yields for the 24-month period
        described in such section,
          (II) section 1083(h)(2)(G)(i)(II) of this title were applied
        by substituting "section 1055(g)(3)(B)(iii)(II) of this title"
        for "section 1082(b)(5)(B)(ii)(II) of this title", and
          (III) the applicable percentage under section 1083(h)(2)(G)
        of this title were determined in accordance with the following
        table:


    "In the case of plan years           The applicable percentage is:  
     beginning in:                                                      
      2008                               20 percent                     
      2009                               40 percent                     
      2010                               60 percent                     
      2011                               80 percent."                   
    --------------------------------------------------------------------



-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (c)(7)(A). Pub. L. 109-280, Sec. 1102(a)(2)(A),
    substituted "180-day" for "90-day".
      2002 - Subsec. (g)(1). Pub. L. 107-147, Sec. 411(r)(2)(A),
    substituted "exceed the amount that can be distributed without the
    participant's consent under section 1053(e) of this title" for
    "exceed the dollar limit under section 1053(e)(1) of this title".
      Subsec. (g)(2)(A). Pub. L. 107-147, Sec. 411(r)(2)(B),
    substituted "exceeds the amount that can be distributed without the
    participant's consent under section 1053(e) of this title" for
    "exceeds the dollar limit under section 1053(e)(1) of this title".
      1997 - Subsec. (c)(8)(A)(ii). Pub. L. 105-34, Sec. 1601(d)(5),
    substituted "Secretary of the Treasury" for "Secretary".
      Subsec. (g)(1), (2)(A). Pub. L. 105-34, Sec. 1071(b)(2),
    substituted "the dollar limit under section 1053(e)(1) of this
    title" for "$3,500".
      1996 - Subsec. (c)(8). Pub. L. 104-188 added par. (8).
      1994 - Subsec. (g)(3). Pub. L. 103-465 amended par. (3)
    generally. Prior to amendment, par. (3) read as follows:
      "(3)(A) For purposes of paragraphs (1) and (2), the present value
    shall be calculated - 
        "(i) by using an interest rate no greater than the applicable
      interest rate if the vested accrued benefit (using such rate) is
      not in excess of $25,000, and
        "(ii) by using an interest rate no greater than 120 percent of
      the applicable interest rate if the vested accrued benefit
      exceeds $25,000 (as determined under clause (i)).
    In no event shall the present value determined under subclause (II)
    be less than $25,000.
      "(B) For purposes of subparagraph (A), the term 'applicable
    interest rate' means the interest rate which would be used (as of
    the date of the distribution) by the Pension Benefit Guaranty
    Corporation for purposes of determining the present value of a lump
    sum distribution on plan termination."
      1989 - Subsec. (b)(1)(C)(i). Pub. L. 101-239, Sec. 7862(d)(7),
    made technical correction to directory language of Pub. L. 99-514,
    Sec. 1898(b)(7)(B), see 1986 Amendment note below.
      Subsec. (b)(2)(A)(i). Pub. L. 101-239, Sec. 7891(a)(1),
    substituted "Internal Revenue Code of 1986" for "Internal Revenue
    Code of 1954", which for purposes of codification was translated as
    "title 26" thus requiring no change in text.
      Subsec. (b)(3), (4). Pub. L. 101-239, Sec. 7862(d)(9), amended
    directory language of Pub. L. 99-514, Sec. 1898(b)(14)(B), see 1986
    Amendment note below, and redesignated par. (3), as added by Pub.
    L. 99-514, Sec. 1898(b)(14)(B), as par. (4).
      Pub. L. 101-239, Secs. 7861(d)(2), 7891(c), realigned margins of
    par. (3), as added by Pub. L. 99-514, Sec. 1145(b), and
    redesignated such par. (3) as (4).
      Subsec. (c)(3)(B)(ii). Pub. L. 101-239, Sec. 7862(d)(1)(B),
    inserted at end "In the case of a participant who separates from
    service before attaining age 35, the applicable period shall be a
    reasonable period after separation."
      Subsec. (c)(3)(B)(ii)(IV). Pub. L. 101-239, Sec. 7862(d)(6),
    substituted "after this section" for "after section 1101(a)(11) of
    this title".
      Subsec. (c)(3)(B)(ii)(V). Pub. L. 101-239, Sec. 7862(d)(1)(B),
    struck out subcl. (V) which read as follows: "A reasonable period
    after separation from service in case of a participant who
    separates before attaining age 35."
      Subsec. (c)(6). Pub. L. 101-239, Sec. 7894(c)(7)(A), substituted
    "such Act" for "such act".
      Subsec. (e)(2). Pub. L. 101-239, Sec. 7862(d)(8), substituted
    "nonforfeitable right (within the meaning of section 1053 of this
    title)" for "nonforfeitable accrued benefit".
      Subsec. (g)(3)(A). Pub. L. 101-239, Sec. 7891(b)(3), realigned
    margins of subpar. (A).
      Subsec. (h)(1). Pub. L. 101-239, Secs. 7862(d)(3)(A), 7891(e)(1),
    amended par. (1) identically, substituting "The term" for "the
    term" and "benefit." for "benefit,".
      Subsec. (h)(3). Pub. L. 101-239, Secs. 7862(d)(3)B), 7891(e)(2),
    amended par. (3) identically, substituting "The term" for "the
    term".
      1986 - Subsec. (a)(1). Pub. L. 99-514, Sec. 1898(b)(3)(B),
    substituted "who does not die before the annuity starting date" for
    "who retires under the plan".
      Subsec. (b)(1). Pub. L. 99-514, Sec. 1898(b)(2)(B)(ii), inserted
    at end "Clause (iii) of subparagraph (C) shall apply only with
    respect to the transferred assets (and income therefrom) if the
    plan separately accounts for such assets and any income therefrom."
      Subsec. (b)(1)(C)(i). Pub. L. 99-514, Sec. 1898(b)(13)(B),
    substituted "(c)(2)" for "(c)(2)(A)".
      Pub. L. 99-514, Sec. 1898(b)(7)(B), as amended by Pub. L. 101-
    239, Sec. 7862(d)(7), inserted "(reduced by any security interest
    held by the plan by reason of a loan outstanding to such
    participant)".
      Subsec. (b)(1)(C)(iii). Pub. L. 99-514, Sec. 1898(b)(2)(B)(i),
    substituted "a direct or indirect transferee (in a transfer after
    December 31, 1984)" for "a transferee".
      Subsec. (b)(3). Pub. L. 99-514, Sec. 1898(b)(14)(B), as amended
    by Pub. L. 101-239, Sec. 7862(d)(9)(A), added par. (3) relating to
    treatment of plan as meeting requirements of par. (1)(C) or (2) of
    subsec. (b).
      Pub. L. 99-514, Sec. 1145(b), added par. (3) relating to
    applicability of this section to plans described in section 404(c)
    of title 26.
      Subsec. (c)(1)(B). Pub. L. 99-514, Sec. 1898(b)(4)(B)(i),
    substituted "paragraphs (2), (3), and (4)" for "paragraphs (2) and
    (3)".
      Subsec. (c)(2)(A). Pub. L. 99-514, Sec. 1898(b)(6)(B), amended
    subpar. (A) generally. Prior to amendment, subpar. (A) read as
    follows: "the spouse of the participant consents in writing to such
    election, and the spouse's consent acknowledges the effect of such
    election and is witnessed by a plan representative or a notary
    public, or".
      Subsec. (c)(3)(B). Pub. L. 99-514, Sec. 1898(b)(5)(B), amended
    subpar. (B) generally. Prior to amendment, subpar. (B) read as
    follows: "Each plan shall provide to each participant, within the
    period beginning with the first day of the plan year in which the
    participant attains age 32 and ending with the close of the plan
    year preceding the plan year in which the participant attains age
    35 (and consistent with such regulations as the Secretary of the
    Treasury may prescribe), a written explanation with respect to the
    qualified preretirement survivor annuity comparable to that
    required under subparagraph (A)."
      Subsec. (c)(4). Pub. L. 99-514, Sec. 1898(b)(4)(B)(ii), added
    par. (4). Former par. (4) redesignated (5).
      Subsec. (c)(5). Pub. L. 99-514, Sec. 1898(b)(4)(B)(ii),
    redesignated par. (4) as (5). Former par. (5) redesignated (6).
      Subsec. (c)(5)(A). Pub. L. 99-514, Sec. 1898(b)(11)(B), inserted
    "if such benefit may not be waived (or another beneficiary
    selected) and".
      Subsec. (c)(6), (7). Pub. L. 99-514, Sec. 1898(b)(4)(B)(ii),
    redesignated pars. (5) and (6) as (6) and (7), respectively.
      Subsec. (e)(1). Pub. L. 99-514, Sec. 1898(b)(1)(B), inserted at
    end "In the case of an individual who separated from service before
    the date of such individual's death, subparagraph (A)(ii)(I) shall
    not apply."
      Subsec. (e)(2). Pub. L. 99-514, Sec. 1898(b)(9)(B)(i),
    substituted "the portion of the account balance of the participant
    (as of the date of death) to which the participant had a
    nonforfeitable accrued benefit" for "the account balance of the
    participant as of the date of death".
      Subsec. (e)(3). Pub. L. 99-514, Sec. 1898(b)(9)(B)(ii), added
    par. (3).
      Subsec. (g)(3). Pub. L. 99-514, Sec. 1139(c)(2), amended par. (3)
    generally. Prior to amendment, par. (3) read as follows: "For
    purposes of paragraphs (1) and (2), the present value of a
    qualified joint and survivor annuity or a qualified preretirement
    survivor annuity shall be determined as of the date of the
    distribution and by using an interest rate not greater than the
    interest rate which would be used (as of the date of the
    distribution) by the Pension Benefit Guaranty Corporation for
    purposes of determining the present value of a lump sum
    distribution on plan termination."
      Subsec. (h)(1). Pub. L. 99-514, Sec. 1898(b)(8)(B), substituted
    "such participant's accrued benefit" for "the accrued benefit
    derived from employer contributions".
      Subsec. (h)(2). Pub. L. 99-514, Sec. 1898(b)(12)(B), amended par.
    (2) generally. Prior to amendment, par. (2) read as follows: "the
    term 'annuity starting date' means the first day of the first
    period for which an amount is received as an annuity (whether by
    reason of retirement or disability), and".
      Subsec. (j). Pub. L. 99-514, Sec. 1898(b)(4)(B)(iii), added
    subsec. (j). Former subsec. (j) redesignated (k).
      Subsec. (k). Pub. L. 99-514, Sec. 1898(b)(10)(B), added subsec.
    (k). Former subsec. (k) redesignated (l).
      Pub. L. 99-514, Sec. 1898(b)(4)(B)(iii), redesignated subsec. (j)
    as (k).
      Subsec. (l). Pub. L. 99-514, Sec. 1898(b)(10)(B), redesignated
    subsec. (k) as (l).
      1984 - Subsec. (a). Pub. L. 98-397 substituted provisions
    relating to provisions to be included in applicable plans for
    former provisions relating to form of payment of annuity benefits.
      Subsec. (b). Pub. L. 98-397 substituted provisions relating to
    applicable plans under this section for former provisions relating
    to plans providing for payment of benefits before normal retirement
    age.
      Subsec. (c). Pub. L. 98-397 substituted provisions relating to
    conditions under which plans meet the requirements of this section
    for former provisions relating to election of qualified joint and
    survivor annuity form.
      Subsec. (d). Pub. L. 98-397 substituted provisions defining
    "qualified joint and survivor annuity" for former provisions
    relating to the participant's spouse not being entitled to receive
    survivor annuity.
      Subsec. (e). Pub. L. 98-397 substituted provisions defining
    "qualified preretirement survivor annuity" for former provisions
    relating to election to take annuity.
      Subsec. (f). Pub. L. 98-397 substituted provisions to the effect
    that plans may provide that annuities will not be provided unless
    the participant and spouse had been married for a certain 1-year
    period, for former provisions relating to plan provisions which
    render election or revocation ineffective if participant dies
    within period of up to 2 years following the date of election or
    revocation.
      Subsec. (g). Pub. L. 98-397 substituted provisions relating to
    plan provisions for immediate distribution of present value if such
    value does not exceed $3,500 and for written consent from the
    participant and spouse for former provisions setting forth
    definitions. See subsec. (h) of this section.
      Subsec. (h). Pub. L. 98-397 substituted provisions setting forth
    definitions for former provisions relating to increased costs
    resulting from providing joint and survivor annuity benefits. See
    subsec. (i) of this section.
      Subsec. (i). Pub. L. 98-397 substituted provisions relating to
    increased costs resulting from providing annuities under applicable
    plans for former provisions setting forth the effective date of
    this section.
      Subsec. (j). Pub. L. 98-397 added subsec. (j).

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Amendment by section 302(a) of Pub. L. 109-280 applicable with
    respect to plan years beginning after Dec. 31, 2007, see section
    302(c) of Pub. L. 109-280, set out as a note under section 417 of
    Title 26, Internal Revenue Code.
      Amendment by section 1004(b) of Pub. L. 109-280 applicable to
    plan years beginning after Dec. 31, 2007, with special rule for
    collectively bargained plans, see section 1004(c) of Pub. L. 109-
    280, set out as a note under section 417 of Title 26, Internal
    Revenue Code.
      Amendments and modifications made or required by section
    1102(a)(2)(A) of Pub. L. 109-280 applicable to years beginning
    after Dec. 31, 2006, see section 1102(a)(3) of Pub. L. 109-280, set
    out as a note under section 417 of Title 26, Internal Revenue Code.

                     EFFECTIVE DATE OF 2002 AMENDMENT                 
      Amendment by Pub. L. 107-147 effective as if included in the
    provisions of the Economic Growth and Tax Relief Reconciliation Act
    of 2001, Pub. L. 107-16, to which such amendment relates, see
    section 411(x) of Pub. L. 107-147, set out as a note under section
    25B of Title 26, Internal Revenue Code.

                     EFFECTIVE DATE OF 1997 AMENDMENT                 
      Amendment by section 1071(b)(2) of Pub. L. 105-34 applicable to
    plan years beginning after Aug. 5, 1997, see section 1071(c) of
    Pub. L. 105-34, set out as a note under section 411 of Title 26,
    Internal Revenue Code.
      Amendment by section 1601(d)(5) of Pub. L. 105-34 effective as if
    included in the provisions of the Small Business Job Protection Act
    of 1996, Pub. L. 104-188, to which it relates, see section 1601(j)
    of Pub. L. 105-34, set out as a note under section 23 of Title 26,
    Internal Revenue Code.

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Amendment by Pub. L. 104-188 applicable to plan years beginning
    after Dec. 31, 1996, see section 1451(c) of Pub. L. 104-188, set
    out as a note under section 417 of Title 26, Internal Revenue Code.

                     EFFECTIVE DATE OF 1994 AMENDMENT                 
      Amendment by Pub. L. 103-465 applicable to plan years and
    limitation years beginning after Dec. 31, 1994, except that
    employer may elect to treat such amendment as effective on or after
    Dec. 8, 1994, with provisions relating to reduction of accrued
    benefits, exception, and timing of plan amendment, see section
    767(d) of Pub. L. 103-465, as amended, set out as a note under
    section 411 of Title 26, Internal Revenue Code.

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by sections 7861(d)(2) and 7862(d)(1)(B), (3), (6)-(9)
    of Pub. L. 101-239 effective as if included in the provision of the
    Tax Reform Act of 1986, Pub. L. 99-514, to which such amendment
    relates, see section 7863 of Pub. L. 101-239, set out as a note
    under section 106 of Title 26, Internal Revenue Code.
      Amendment by section 7891(a)(1), (b)(3), (c), (e) of Pub. L. 101-
    239 effective, except as otherwise provided, as if included in the
    provision of the Tax Reform Act of 1986, Pub. L. 99-514, to which
    such amendment relates, see section 7891(f) of Pub. L. 101-239, set
    out as a note under section 1002 of this title.
      Section 7894(c)(7)(B) of Pub. L. 101-239 provided that: "The
    amendment made by subparagraph (A) [amending this section] shall
    take effect as if included in section 103 of the Retirement Equity
    Act of 1984 [Pub. L. 98-397] in reference to the new section
    205(c)(5) of ERISA [subsec. (c)(5) of this section] as added by
    such section 3113."

                     EFFECTIVE DATE OF 1986 AMENDMENT                 
      Amendment by section 1139(c)(2) of Pub. L. 99-514 applicable to
    distributions in plan years beginning after Dec. 31, 1984, except
    that such amendments shall not apply to any distributions in plan
    years beginning after Dec. 31, 1984, and before Jan. 1, 1987, if
    such distributions were made in accordance with the requirements of
    the regulations issued under the Retirement Equity Act of 1984,
    Pub. L. 98-397, with additional provisions relating to reductions
    in accrued benefits, see section 1139(d) of Pub. L. 99-514, set out
    as a note under section 411 of Title 26, Internal Revenue Code.
      Amendment by section 1145(b) of Pub. L. 99-514 applicable as if
    included in the amendments made by the Retirement Equity Act of
    1984, Pub. L. 98-397, see section 1145(d) of Pub. L. 99-514, set
    out as a note under section 401 of Title 26.
      Amendment by section 1898(b)(4)(B) of Pub. L. 99-514 applicable
    with respect to loans made after Aug. 18, 1985, see section
    1898(b)(4)(C) of Pub. L. 99-514, set out as a note under section
    417 of Title 26.
      Amendment by section 1898(b)(6)(B) of Pub. L. 99-514 applicable
    to plan years beginning after Oct. 22, 1986, see section
    1898(b)(6)(C) of Pub. L. 99-514, set out as a note under section
    417 of Title 26.
      Amendment by section 1898(b)(8)(B) of Pub. L. 99-514 applicable
    to distributions after Oct. 22, 1986, see section 1898(b)(8)(C) of
    Pub. L. 99-514, as added, set out as a note under section 417 of
    Title 26.
      Amendment by section 1898(b)(1)(B), (2)(B), (3)(B), (5)(B),
    (7)(B), (9)(B), (10)(B), (11)(B), (12)(B), (13)(B), (14)(B) of Pub.
    L. 99-514 effective as if included in the provision of the
    Retirement Equity Act of 1984, Pub. L. 98-397, to which such
    amendment relates, except as otherwise provided, see section
    1898(j) of Pub. L. 99-514, set out as a note under section 401 of
    Title 26.

                     EFFECTIVE DATE OF 1984 AMENDMENT                 
      Amendment by Pub. L. 98-397 applicable to plan years beginning
    after Dec. 31, 1984, except as otherwise provided, see sections 302
    and 303 of Pub. L. 98-397, set out as a note under section 1001 of
    this title.
      Nothing in amendment by Pub. L. 98-397 to prevent any
    distribution required by reason of failure to comply with terms of
    loan made on or before Aug. 18, 1985, and secured by portion of
    participant's accrued benefit, see section 1898(b)(4)(C)(ii) of
    Pub. L. 99-514, set out as an Effective Date of 1986 Amendment note
    under section 417 of Title 26, Internal Revenue Code.

            PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1998        
      For provisions directing that if any amendments made by subtitle
    D [Secs. 1401-1465] of title I of Pub. L. 104-188 require an
    amendment to any plan or annuity contract, such amendment shall not
    be required to be made before the first day of the first plan year
    beginning on or after Jan. 1, 1998, see section 1465 of Pub. L. 104-
    188, set out as a note under section 401 of Title 26, Internal
    Revenue Code.

            PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989        
      For provisions directing that if any amendments made by subtitle
    A or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or
    title XVIII [Secs. 1800-1899A] of Pub. L. 99-514 require an
    amendment to any plan, such plan amendment shall not be required to
    be made before the first plan year beginning on or after Jan. 1,
    1989, see section 1140 of Pub. L. 99-514, as amended, set out as a
    note under section 401 of Title 26, Internal Revenue Code.

-FOOTNOTE-
    (!1) So in original. Probably should be "clauses".

    (!2) So in original. There are two pars. designated (4) and no
         par. (3).


-End-



-CITE-
    29 USC Sec. 1056                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 2 - participation and vesting

-HEAD-
    Sec. 1056. Form and payment of benefits

-STATUTE-
    (a) Commencement date for payment of benefits
      Each pension plan shall provide that unless the participant
    otherwise elects, the payment of benefits under the plan to the
    participant shall begin not later than the 60th day after the
    latest of the close of the plan year in which - 
        (1) occurs the date on which the participant attains the
      earlier of age 65 or the normal retirement age specified under
      the plan,
        (2) occurs the 10th anniversary of the year in which the
      participant commenced participation in the plan, or
        (3) the participant terminates his service with the employer.

    In the case of a plan which provides for the payment of an early
    retirement benefit, such plan shall provide that a participant who
    satisfied the service requirements for such early retirement
    benefit, but separated from the service (with any nonforfeitable
    right to an accrued benefit) before satisfying the age requirement
    for such early retirement benefit, is entitled upon satisfaction of
    such age requirement to receive a benefit not less than the benefit
    to which he would be entitled at the normal retirement age,
    actuarially reduced under regulations prescribed by the Secretary
    of the Treasury.
    (b) Decrease in plan benefits by reason of increases in benefit
      levels under Social Security Act or Railroad Retirement Act of
      1937
      If - 
        (1) a participant or beneficiary is receiving benefits under a
      pension plan, or
        (2) a participant is separated from the service and has non-
      forfeitable rights to benefits,

    a plan may not decrease benefits of such a participant by reason of
    any increase in the benefit levels payable under title II of the
    Social Security Act [42 U.S.C. 401 et seq.] or the Railroad
    Retirement Act of 1937 [45 U.S.C. 231 et seq.] or any increase in
    the wage base under such title II, if such increase takes place
    after September 2, 1974, or (if later) the earlier of the date of
    first entitlement of such benefits or the date of such separation.
    (c) Forfeiture of accrued benefits derived from employer
      contributions
      No pension plan may provide that any part of a participant's
    accrued benefit derived from employer contributions (whether or not
    otherwise nonforfeitable) is forfeitable solely because of
    withdrawal by such participant of any amount attributable to the
    benefit derived from contributions made by such participant. The
    preceding sentence shall not apply (1) to the accrued benefit of
    any participant unless, at the time of such withdrawal, such
    participant has a nonforfeitable right to at least 50 percent of
    such accrued benefit, or (2) to the extent that an accrued benefit
    is permitted to be forfeited in accordance with section
    1053(a)(3)(D)(iii) of this title.
    (d) Assignment or alienation of plan benefits
      (1) Each pension plan shall provide that benefits provided under
    the plan may not be assigned or alienated.
      (2) For the purposes of paragraph (1) of this subsection, there
    shall not be taken into account any voluntary and revocable
    assignment of not to exceed 10 percent of any benefit payment, or
    of any irrevocable assignment or alienation of benefits executed
    before September 2, 1974. The preceding sentence shall not apply to
    any assignment or alienation made for the purposes of defraying
    plan administration costs. For purposes of this paragraph a loan
    made to a participant or beneficiary shall not be treated as an
    assignment or alienation if such loan is secured by the
    participant's accrued non-forfeitable benefit and is exempt from
    the tax imposed by section 4975 of title 26 (relating to tax on
    prohibited transactions) by reason of section 4975(d)(1) of title
    26.
      (3)(A) Paragraph (1) shall apply to the creation, assignment, or
    recognition of a right to any benefit payable with respect to a
    participant pursuant to a domestic relations order, except that
    paragraph (1) shall not apply if the order is determined to be a
    qualified domestic relations order. Each pension plan shall provide
    for the payment of benefits in accordance with the applicable
    requirements of any qualified domestic relations order.
      (B) For purposes of this paragraph - 
        (i) the term "qualified domestic relations order" means a
      domestic relations order - 
          (I) which creates or recognizes the existence of an alternate
        payee's right to, or assigns to an alternate payee the right
        to, receive all or a portion of the benefits payable with
        respect to a participant under a plan, and
          (II) with respect to which the requirements of subparagraphs
        (C) and (D) are met, and

        (ii) the term "domestic relations order" means any judgment,
      decree, or order (including approval of a property settlement
      agreement) which - 
          (I) relates to the provision of child support, alimony
        payments, or marital property rights to a spouse, former
        spouse, child, or other dependent of a participant, and
          (II) is made pursuant to a State domestic relations law
        (including a community property law).

      (C) A domestic relations order meets the requirements of this
    subparagraph only if such order clearly specifies - 
        (i) the name and the last known mailing address (if any) of the
      participant and the name and mailing address of each alternate
      payee covered by the order,
        (ii) the amount or percentage of the participant's benefits to
      be paid by the plan to each such alternate payee, or the manner
      in which such amount or percentage is to be determined,
        (iii) the number of payments or period to which such order
      applies, and
        (iv) each plan to which such order applies.

      (D) A domestic relations order meets the requirements of this
    subparagraph only if such order - 
        (i) does not require a plan to provide any type or form of
      benefit, or any option, not otherwise provided under the plan,
        (ii) does not require the plan to provide increased benefits
      (determined on the basis of actuarial value), and
        (iii) does not require the payment of benefits to an alternate
      payee which are required to be paid to another alternate payee
      under another order previously determined to be a qualified
      domestic relations order.

      (E)(i) A domestic relations order shall not be treated as failing
    to meet the requirements of clause (i) of subparagraph (D) solely
    because such order requires that payment of benefits be made to an
    alternate payee - 
        (I) in the case of any payment before a participant has
      separated from service, on or after the date on which the
      participant attains (or would have attained) the earliest
      retirement age,
        (II) as if the participant had retired on the date on which
      such payment is to begin under such order (but taking into
      account only the present value of benefits actually accrued and
      not taking into account the present value of any employer subsidy
      for early retirement), and
        (III) in any form in which such benefits may be paid under the
      plan to the participant (other than in the form of a joint and
      survivor annuity with respect to the alternate payee and his or
      her subsequent spouse).

    For purposes of subclause (II), the interest rate assumption used
    in determining the present value shall be the interest rate
    specified in the plan or, if no rate is specified, 5 percent.
      (ii) For purposes of this subparagraph, the term "earliest
    retirement age" means the earlier of - 
        (I) the date on which the participant is entitled to a
      distribution under the plan, or
        (II) the later of the date of the participant attains age 50 or
      the earliest date on which the participant could begin receiving
      benefits under the plan if the participant separated from
      service.

      (F) To the extent provided in any qualified domestic relations
    order - 
        (i) the former spouse of a participant shall be treated as a
      surviving spouse of such participant for purposes of section 1055
      of this title (and any spouse of the participant shall not be
      treated as a spouse of the participant for such purposes), and
        (ii) if married for at least 1 year, the surviving former
      spouse shall be treated as meeting the requirements of section
      1055(f) of this title.

      (G)(i) In the case of any domestic relations order received by a
    plan - 
        (I) the plan administrator shall promptly notify the
      participant and each alternate payee of the receipt of such order
      and the plan's procedures for determining the qualified status of
      domestic relations orders, and
        (II) within a reasonable period after receipt of such order,
      the plan administrator shall determine whether such order is a
      qualified domestic relations order and notify the participant and
      each alternate payee of such determination.

      (ii) Each plan shall establish reasonable procedures to determine
    the qualified status of domestic relations orders and to administer
    distributions under such qualified orders. Such procedures - 
        (I) shall be in writing,
        (II) shall provide for the notification of each person
      specified in a domestic relations order as entitled to payment of
      benefits under the plan (at the address included in the domestic
      relations order) of such procedures promptly upon receipt by the
      plan of the domestic relations order, and
        (III) shall permit an alternate payee to designate a
      representative for receipt of copies of notices that are sent to
      the alternate payee with respect to a domestic relations order.

      (H)(i) During any period in which the issue of whether a domestic
    relations order is a qualified domestic relations order is being
    determined (by the plan administrator, by a court of competent
    jurisdiction, or otherwise), the plan administrator shall
    separately account for the amounts (hereinafter in this
    subparagraph referred to as the "segregated amounts") which would
    have been payable to the alternate payee during such period if the
    order had been determined to be a qualified domestic relations
    order.
      (ii) If within the 18-month period described in clause (v) the
    order (or modification thereof) is determined to be a qualified
    domestic relations order, the plan administrator shall pay the
    segregated amounts (including any interest thereon) to the person
    or persons entitled thereto.
      (iii) If within the 18-month period described in clause (v) - 
        (I) it is determined that the order is not a qualified domestic
      relations order, or
        (II) the issue as to whether such order is a qualified domestic
      relations order is not resolved,

    then the plan administrator shall pay the segregated amounts
    (including any interest thereon) to the person or persons who would
    have been entitled to such amounts if there had been no order.
      (iv) Any determination that an order is a qualified domestic
    relations order which is made after the close of the 18-month
    period described in clause (v) shall be applied prospectively only.
      (v) For purposes of this subparagraph, the 18-month period
    described in this clause is the 18-month period beginning with the
    date on which the first payment would be required to be made under
    the domestic relations order.
      (I) If a plan fiduciary acts in accordance with part 4 of this
    subtitle in - 
        (i) treating a domestic relations order as being (or not being)
      a qualified domestic relations order, or
        (ii) taking action under subparagraph (H),

    then the plan's obligation to the participant and each alternate
    payee shall be discharged to the extent of any payment made
    pursuant to such Act.
      (J) A person who is an alternate payee under a qualified domestic
    relations order shall be considered for purposes of any provision
    of this chapter a beneficiary under the plan. Nothing in the
    preceding sentence shall permit a requirement under section 1301 of
    this title of the payment of more than 1 premium with respect to a
    participant for any period.
      (K) The term "alternate payee" means any spouse, former spouse,
    child, or other dependent of a participant who is recognized by a
    domestic relations order as having a right to receive all, or a
    portion of, the benefits payable under a plan with respect to such
    participant.
      (L) This paragraph shall not apply to any plan to which paragraph
    (1) does not apply.
      (M) Payment of benefits by a pension plan in accordance with the
    applicable requirements of a qualified domestic relations order
    shall not be treated as garnishment for purposes of section 1673(a)
    of title 15.
      (N) In prescribing regulations under this paragraph, the
    Secretary shall consult with the Secretary of the Treasury.
      (4) Paragraph (1) shall not apply to any offset of a
    participant's benefits provided under an employee pension benefit
    plan against an amount that the participant is ordered or required
    to pay to the plan if - 
        (A) the order or requirement to pay arises - 
          (i) under a judgment of conviction for a crime involving such
        plan,
          (ii) under a civil judgment (including a consent order or
        decree) entered by a court in an action brought in connection
        with a violation (or alleged violation) of part 4 of this
        subtitle, or
          (iii) pursuant to a settlement agreement between the
        Secretary and the participant, or a settlement agreement
        between the Pension Benefit Guaranty Corporation and the
        participant, in connection with a violation (or alleged
        violation) of part 4 of this subtitle by a fiduciary or any
        other person,

        (B) the judgment, order, decree, or settlement agreement
      expressly provides for the offset of all or part of the amount
      ordered or required to be paid to the plan against the
      participant's benefits provided under the plan, and
        (C) in a case in which the survivor annuity requirements of
      section 1055 of this title apply with respect to distributions
      from the plan to the participant, if the participant has a spouse
      at the time at which the offset is to be made - 
          (i) either - 
            (I) such spouse has consented in writing to such offset and
          such consent is witnessed by a notary public or
          representative of the plan (or it is established to the
          satisfaction of a plan representative that such consent may
          not be obtained by reason of circumstances described in
          section 1055(c)(2)(B) of this title), or
            (II) an election to waive the right of the spouse to a
          qualified joint and survivor annuity or a qualified
          preretirement survivor annuity is in effect in accordance
          with the requirements of section 1055(c) of this title,

          (ii) such spouse is ordered or required in such judgment,
        order, decree, or settlement to pay an amount to the plan in
        connection with a violation of part 4 of this subtitle, or
          (iii) in such judgment, order, decree, or settlement, such
        spouse retains the right to receive the survivor annuity under
        a qualified joint and survivor annuity provided pursuant to
        section 1055(a)(1) of this title and under a qualified
        preretirement survivor annuity provided pursuant to section
        1055(a)(2) of this title, determined in accordance with
        paragraph (5).

    A plan shall not be treated as failing to meet the requirements of
    section 1055 of this title solely by reason of an offset under this
    paragraph.
      (5)(A) The survivor annuity described in paragraph (4)(C)(iii)
    shall be determined as if - 
        (i) the participant terminated employment on the date of the
      offset,
        (ii) there was no offset,
        (iii) the plan permitted commencement of benefits only on or
      after normal retirement age,
        (iv) the plan provided only the minimum-required qualified
      joint and survivor annuity, and
        (v) the amount of the qualified preretirement survivor annuity
      under the plan is equal to the amount of the survivor annuity
      payable under the minimum-required qualified joint and survivor
      annuity.

      (B) For purposes of this paragraph, the term "minimum-required
    qualified joint and survivor annuity" means the qualified joint and
    survivor annuity which is the actuarial equivalent of the
    participant's accrued benefit (within the meaning of section
    1002(23) of this title) and under which the survivor annuity is 50
    percent of the amount of the annuity which is payable during the
    joint lives of the participant and the spouse.
    (e) Limitation on distributions other than life annuities paid by
      plan
      (1) In general
        Notwithstanding any other provision of this part, the fiduciary
      of a pension plan that is subject to the additional funding
      requirements of section 1082(d) of this title shall not permit a
      prohibited payment to be made from a plan during a period in
      which such plan has a liquidity shortfall (as defined in section
      1082(e)(5) of this title).
      (2) Prohibited payment
        For purposes of paragraph (1), the term "prohibited payment"
      means - 
          (A) any payment, in excess of the monthly amount paid under a
        single life annuity (plus any social security supplements
        described in the last sentence of section 1054(b)(1)(G) of this
        title), to a participant or beneficiary whose annuity starting
        date (as defined in section 1055(h)(2) of this title), that
        occurs during the period referred to in paragraph (1),
          (B) any payment for the purchase of an irrevocable commitment
        from an insurer to pay benefits, and
          (C) any other payment specified by the Secretary of the
        Treasury by regulations.
      (3) Period of shortfall
        For purposes of this subsection, a plan has a liquidity
      shortfall during the period that there is an underpayment of an
      installment under section 1082(e) of this title by reason of
      paragraph (5)(A) thereof.
      (4) Coordination with other provisions
        Compliance with this subsection shall not constitute a
      violation of any other provision of this chapter.
    (f) Missing participants in terminated plans
      In the case of a plan covered by section 1350 of this title, upon
    termination of the plan, benefits of missing participants shall be
    treated in accordance with section 1350 of this title.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 206, Sept. 2, 1974, 88 Stat. 864;
    Pub. L. 98-397, title I, Sec. 104(a), Aug. 23, 1984, 98 Stat. 1433;
    Pub. L. 99-514, title XVIII, Sec. 1898(c)(2)(B), (4)(B), (5),
    (6)(B), (7)(B), Oct. 22, 1986, 100 Stat. 2952-2954; Pub. L. 101-
    239, title VII, Secs. 7891(a)(1), 7894(c)(8), (9)(A), Dec. 19,
    1989, 103 Stat. 2445, 2449; Pub. L. 103-465, title VII, Secs.
    761(a)(9)(B)(i), 776(c)(2), Dec. 8, 1994, 108 Stat. 5033, 5048;
    Pub. L. 105-34, title XV, Sec. 1502(a), Aug. 5, 1997, 111 Stat.
    1058; Pub. L. 109-280, title I, Secs. 103(a), 107(a)(9), (10),
    title IV, Sec. 410(b), Aug. 17, 2006, 120 Stat. 809, 819, 935.)


-STATAMEND-
                           AMENDMENT OF SECTION                       
      Pub. L. 109-280, title I, Sec. 107(a)(9), (10), (e), Aug. 17,
    2006, 120 Stat. 819, 820, provided that, applicable to plan years
    beginning after 2007, subsection (e) of this section is amended as
    follows:
      (1) in paragraph (1), by substituting "1083(j)(4)" for "1082(d)"
    and "1083(j)(4)(E)(i)" for "1082(e)(5)"; and
      (2) in paragraph (3), by substituting "section 1083(j)(3) of this
    title by reason of section 1083(j)(4)(A) of this title" for
    "section 1082(e) of this title by reason of paragraph (5)(A)
    thereof".
      Pub. L. 109-280, title I, Sec. 103(a), (c), Aug. 17, 2006, 120
    Stat. 809, 816, provided that, applicable to plan years beginning
    after Dec. 31, 2007, with collective bargaining exception, this
    section is amended by adding subsection (g) at the end to read as
    follows:
    (g) Funding-based limits on benefits and benefit accruals under
      single-employer plans
      (1) Funding-based limitation on shutdown benefits and other
        unpredictable contingent event benefits under single-employer
        plans
        (A) In general
          If a participant of a defined benefit plan which is a single-
        employer plan is entitled to an unpredictable contingent event
        benefit payable with respect to any event occurring during any
        plan year, the plan shall provide that such benefit may not be
        provided if the adjusted funding target attainment percentage
        for such plan year - 
            (i) is less than 60 percent, or
            (ii) would be less than 60 percent taking into account such
          occurrence.
        (B) Exemption
          Subparagraph (A) shall cease to apply with respect to any
        plan year, effective as of the first day of the plan year, upon
        payment by the plan sponsor of a contribution (in addition to
        any minimum required contribution under section 1083 of this
        title) equal to - 
            (i) in the case of subparagraph (A)(i), the amount of the
          increase in the funding target of the plan (under section
          1083 of this title) for the plan year attributable to the
          occurrence referred to in subparagraph (A), and
            (ii) in the case of subparagraph (A)(ii), the amount
          sufficient to result in a funding target attainment
          percentage of 60 percent.
        (C) Unpredictable contingent event
          For purposes of this paragraph, the term "unpredictable
        contingent event benefit" means any benefit payable solely by
        reason of - 
            (i) a plant shutdown (or similar event, as determined by
          the Secretary of the Treasury), or
            (ii) an event other than the attainment of any age,
          performance of any service, receipt or derivation of any
          compensation, or occurrence of death or disability.
      (2) Limitations on plan amendments increasing liability for
        benefits
        (A) In general
          No amendment to a defined benefit plan which is a single-
        employer plan which has the effect of increasing liabilities
        of the plan by reason of increases in benefits, establishment
        of new benefits, changing the rate of benefit accrual, or
        changing the rate at which benefits become nonforfeitable may
        take effect during any plan year if the adjusted funding target
        attainment percentage for such plan year is - 
            (i) less than 80 percent, or
            (ii) would be less than 80 percent taking into account such
          amendment.
        (B) Exemption
          Subparagraph (A) shall cease to apply with respect to any
        plan year, effective as of the first day of the plan year (or
        if later, the effective date of the amendment), upon payment by
        the plan sponsor of a contribution (in addition to any minimum
        required contribution under section 1083 of this title) equal
        to - 
            (i) in the case of subparagraph (A)(i), the amount of the
          increase in the funding target of the plan (under section
          1083 of this title) for the plan year attributable to the
          amendment, and
            (ii) in the case of subparagraph (A)(ii), the amount
          sufficient to result in an adjusted funding target attainment
          percentage of 80 percent.
        (C) Exception for certain benefit increases
          Subparagraph (A) shall not apply to any amendment which
        provides for an increase in benefits under a formula which is
        not based on a participant's compensation, but only if the rate
        of such increase is not in excess of the contemporaneous rate
        of increase in average wages of participants covered by the
        amendment.
      (3) Limitations on accelerated benefit distributions
        (A) Funding percentage less than 60 percent
          A defined benefit plan which is a single-employer plan shall
        provide that, in any case in which the plan's adjusted funding
        target attainment percentage for a plan year is less than 60
        percent, the plan may not pay any prohibited payment after the
        valuation date for the plan year.
        (B) Bankruptcy
          A defined benefit plan which is a single-employer plan shall
        provide that, during any period in which the plan sponsor is a
        debtor in a case under title 11 or similar Federal or State
        law, the plan may not pay any prohibited payment. The preceding
        sentence shall not apply on or after the date on which the
        enrolled actuary of the plan certifies that the adjusted
        funding target attainment percentage of such plan is not less
        than 100 percent.
        (C) Limited payment if percentage at least 60 percent but less
          than 80 percent
          (i) In general
            A defined benefit plan which is a single-employer plan
          shall provide that, in any case in which the plan's adjusted
          funding target attainment percentage for a plan year is 60
          percent or greater but less than 80 percent, the plan may not
          pay any prohibited payment after the valuation date for the
          plan year to the extent the amount of the payment exceeds the
          lesser of - 
              (I) 50 percent of the amount of the payment which could
            be made without regard to this subsection, or
              (II) the present value (determined under guidance
            prescribed by the Pension Benefit Guaranty Corporation,
            using the interest and mortality assumptions under section
            1055(g) of this title) of the maximum guarantee with
            respect to the participant under section 1322 of this
            title.
          (ii) One-time application
            (I) In general
              The plan shall also provide that only 1 prohibited
            payment meeting the requirements of clause (i) may be made
            with respect to any participant during any period of
            consecutive plan years to which the limitations under
            either subparagraph (A) or (B) or this subparagraph
            applies.
            (II) Treatment of beneficiaries
              For purposes of this clause, a participant and any
            beneficiary on his behalf (including an alternate payee, as
            defined in subsection (d)(3)(K)) shall be treated as 1
            participant. If the accrued benefit of a participant is
            allocated to such an alternate payee and 1 or more other
            persons, the amount under clause (i) shall be allocated
            among such persons in the same manner as the accrued
            benefit is allocated unless the qualified domestic
            relations order (as defined in subsection (d)(3)(B)(i))
            provides otherwise.
        (D) Exception
          This paragraph shall not apply to any plan for any plan year
        if the terms of such plan (as in effect for the period
        beginning on September 1, 2005, and ending with such plan year)
        provide for no benefit accruals with respect to any participant
        during such period.
        (E) Prohibited payment
          For purpose of this paragraph, the term "prohibited payment"
        means - 
            (i) any payment, in excess of the monthly amount paid under
          a single life annuity (plus any social security supplements
          described in the last sentence of section 1054(b)(1)(G) of
          this title), to a participant or beneficiary whose annuity
          starting date (as defined in section 1055(h)(2) of this
          title) occurs during any period a limitation under
          subparagraph (A) or (B) is in effect,
            (ii) any payment for the purchase of an irrevocable
          commitment from an insurer to pay benefits, and
            (iii) any other payment specified by the Secretary of the
          Treasury by regulations.
      (4) Limitation on benefit accruals for plans with severe funding
        shortfalls
        (A) In general
          A defined benefit plan which is a single-employer plan shall
        provide that, in any case in which the plan's adjusted funding
        target attainment percentage for a plan year is less than 60
        percent, benefit accruals under the plan shall cease as of the
        valuation date for the plan year.
        (B) Exemption
          Subparagraph (A) shall cease to apply with respect to any
        plan year, effective as of the first day of the plan year, upon
        payment by the plan sponsor of a contribution (in addition to
        any minimum required contribution under section 1083 of this
        title) equal to the amount sufficient to result in an adjusted
        funding target attainment percentage of 60 percent.
      (5) Rules relating to contributions required to avoid benefit
        limitations
        (A) Security may be provided
          (i) In general
            For purposes of this subsection, the adjusted funding
          target attainment percentage shall be determined by treating
          as an asset of the plan any security provided by a plan
          sponsor in a form meeting the requirements of clause (ii).
          (ii) Form of security
            The security required under clause (i) shall consist of - 
              (I) a bond issued by a corporate surety company that is
            an acceptable surety for purposes of section 1112 of this
            title,
              (II) cash, or United States obligations which mature in 3
            years or less, held in escrow by a bank or similar
            financial institution, or
              (III) such other form of security as is satisfactory to
            the Secretary of the Treasury and the parties involved.
          (iii) Enforcement
            Any security provided under clause (i) may be perfected and
          enforced at any time after the earlier of - 
              (I) the date on which the plan terminates,
              (II) if there is a failure to make a payment of the
            minimum required contribution for any plan year beginning
            after the security is provided, the due date for the
            payment under section 1083(j) of this title, or
              (III) if the adjusted funding target attainment
            percentage is less than 60 percent for a consecutive period
            of 7 years, the valuation date for the last year in the
            period.
          (iv) Release of security
            The security shall be released (and any amounts thereunder
          shall be refunded together with any interest accrued thereon)
          at such time as the Secretary of the Treasury may prescribe
          in regulations, including regulations for partial releases of
          the security by reason of increases in the funding target
          attainment percentage.
        (B) Prefunding balance or funding standard carryover balance
          may not be used
          No prefunding balance or funding standard carryover balance
        under section 1083(f) of this title may be used under paragraph
        (1), (2), or (4) to satisfy any payment an employer may make
        under any such paragraph to avoid or terminate the application
        of any limitation under such paragraph.
        (C) Deemed reduction of funding balances
          (i) In general
            Subject to clause (iii), in any case in which a benefit
          limitation under paragraph (1), (2), (3), or (4) would (but
          for this subparagraph and determined without regard to
          paragraph (1)(B), (2)(B), or (4)(B)) apply to such plan for
          the plan year, the plan sponsor of such plan shall be treated
          for purposes of this chapter as having made an election under
          section 1083(f) of this title to reduce the prefunding
          balance or funding standard carryover balance by such amount
          as is necessary for such benefit limitation to not apply to
          the plan for such plan year.
          (ii) Exception for insufficient funding balances
            Clause (i) shall not apply with respect to a benefit
          limitation for any plan year if the application of clause (i)
          would not result in the benefit limitation not applying for
          such plan year.
          (iii) Restrictions of certain rules to collectively bargained
            plans
            With respect to any benefit limitation under paragraph (1),
          (2), or (4), clause (i) shall only apply in the case of a
          plan maintained pursuant to 1 or more collective bargaining
          agreements between employee representatives and 1 or more
          employers.
      (6) New plans
        Paragraphs (1), (2), and (4) shall not apply to a plan for the
      first 5 plan years of the plan. For purposes of this paragraph,
      the reference in this paragraph to a plan shall include a
      reference to any predecessor plan.
      (7) Presumed underfunding for purposes of benefit limitations
        (A) Presumption of continued underfunding
          In any case in which a benefit limitation under paragraph
        (1), (2), (3), or (4) has been applied to a plan with respect
        to the plan year preceding the current plan year, the adjusted
        funding target attainment percentage of the plan for the
        current plan year shall be presumed to be equal to the adjusted
        funding target attainment percentage of the plan for the
        preceding plan year until the enrolled actuary of the plan
        certifies the actual adjusted funding target attainment
        percentage of the plan for the current plan year.
        (B) Presumption of underfunding after 10th month
          In any case in which no certification of the adjusted funding
        target attainment percentage for the current plan year is made
        with respect to the plan before the first day of the 10th month
        of such year, for purposes of paragraphs (1), (2), (3), and
        (4), such first day shall be deemed, for purposes of such
        paragraph, to be the valuation date of the plan for the current
        plan year and the plan's adjusted funding target attainment
        percentage shall be conclusively presumed to be less than 60
        percent as of such first day.
        (C) Presumption of underfunding after 4th month for nearly
          underfunded plans
          In any case in which - 
            (i) a benefit limitation under paragraph (1), (2), (3), or
          (4) did not apply to a plan with respect to the plan year
          preceding the current plan year, but the adjusted funding
          target attainment percentage of the plan for such preceding
          plan year was not more than 10 percentage points greater than
          the percentage which would have caused such paragraph to
          apply to the plan with respect to such preceding plan year,
          and
            (ii) as of the first day of the 4th month of the current
          plan year, the enrolled actuary of the plan has not certified
          the actual adjusted funding target attainment percentage of
          the plan for the current plan year,

        until the enrolled actuary so certifies, such first day shall
        be deemed, for purposes of such paragraph, to be the valuation
        date of the plan for the current plan year and the adjusted
        funding target attainment percentage of the plan as of such
        first day shall, for purposes of such paragraph, be presumed to
        be equal to 10 percentage points less than the adjusted funding
        target attainment percentage of the plan for such preceding
        plan year.
      (8) Treatment of plan as of close of prohibited or cessation
        period
        For purposes of applying this part - 
        (A) Operation of plan after period
          Unless the plan provides otherwise, payments and accruals
        will resume effective as of the day following the close of the
        period for which any limitation of payment or accrual of
        benefits under paragraph (3) or (4) applies.
        (B) Treatment of affected benefits
          Nothing in this paragraph shall be construed as affecting the
        plan's treatment of benefits which would have been paid or
        accrued but for this subsection.
      (9) Terms relating to funding target attainment percentage
        For purposes of this subsection - 
        (A) In general
          The term "funding target attainment percentage" has the same
        meaning given such term by section 1083(d)(2) of this title.
        (B) Adjusted funding target attainment percentage
          The term "adjusted funding target attainment percentage"
        means the funding target attainment percentage which is
        determined under subparagraph (A) by increasing each of the
        amounts under subparagraphs (A) and (B) of section 1083(d)(2)
        of this title by the aggregate amount of purchases of annuities
        for employees other than highly compensated employees (as
        defined in section 414(q) of title 26) which were made by the
        plan during the preceding 2 plan years.
        (C) Application to plans which are fully funded without regard
          to reductions for funding balances
          (i) In general
            In the case of a plan for any plan year, if the funding
          target attainment percentage is 100 percent or more
          (determined without regard to this subparagraph and without
          regard to the reduction in the value of assets under section
          1083(f)(4) of this title), the funding target attainment
          percentage for purposes of subparagraphs (A) and (B) shall be
          determined without regard to such reduction.
          (ii) Transition rule
            Clause (i) shall be applied to plan years beginning after
          2007 and before 2011 by substituting for "100 percent" the
          applicable percentage determined in accordance with the
          following table:

    In the case of a plan year                            The applicable
    beginning in calendar year:                            percentage is
      2008                                                     92     
      2009                                                     94     
      2010                                                      96.   

          (iii) Limitation
            Clause (ii) shall not apply with respect to any plan year
          after 2008 unless the funding target attainment percentage
          (determined without regard to this subparagraph) of the plan
          for each preceding plan year after 2007 was not less than the
          applicable percentage with respect to such preceding plan
          year determined under clause (ii).
      (10) Special rule for 2008
        For purposes of this subsection, in the case of plan years
      beginning in 2008, the funding target attainment percentage for
      the preceding plan year may be determined using such methods of
      estimation as the Secretary of the Treasury may provide.

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Social Security Act, referred to in subsec. (b), is act Aug.
    14, 1935, ch. 531, 49 Stat. 620, as amended. Title II of the Social
    Security Act is classified generally to subchapter II (Sec. 401 et
    seq.) of chapter 7 of Title 42, The Public Health and Welfare. For
    complete classification of this Act to the Code, see section 1305
    of Title 42 and Tables.
      The Railroad Retirement Act of 1937, referred to in subsec. (b),
    is act Aug. 29, 1935, ch. 812, 49 Stat. 967, as amended generally
    by act June 24, 1937, ch. 382, part I, 50 Stat. 307, and which was
    classified principally to subchapter III (Sec. 228a et seq.) of
    chapter 9 of Title 45, Railroads. The Railroad Retirement Act of
    1937 was amended generally and redesignated the Railroad Retirement
    Act of 1974 by Pub. L. 93-445, title I, Oct. 16, 1974, 88 Stat.
    1305. The Railroad Retirement Act of 1974 is classified generally
    to subchapter IV (Sec. 231 et seq.) of chapter 9 of Title 45. For
    complete classification of these acts to the Code, see Tables.
      This chapter, referred to in subsec. (e)(4), was in the original
    "this Act", meaning Pub. L. 93-406, known as the Employee
    Retirement Income Security Act of 1974. Titles I, III, and IV of
    such Act are classified principally to this chapter. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 1001 of this title and Tables.


-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (f). Pub. L. 109-280, Sec. 410(b), substituted
    "section 1350 of this title" for "subchapter III of this chapter,
    the plan shall provide that".
      1997 - Subsec. (d)(4), (5). Pub. L. 105-34 added pars. (4) and
    (5).
      1994 - Subsec. (e). Pub. L. 103-465, Sec. 761(a)(9)(B)(i), added
    subsec. (e).
      Subsec. (f). Pub. L. 103-465, Sec. 776(c)(2), added subsec. (f).
      1989 - Subsec. (a)(1). Pub. L. 101-239, Sec. 7894(c)(8), inserted
    "occurs" before "the date".
      Subsec. (d)(2). Pub. L. 101-239, Sec. 7891(a)(1), substituted
    "Internal Revenue Code of 1986" for "Internal Revenue Code of
    1954", which for purposes of codification was translated as "title
    26" thus requiring no change in text.
      Subsec. (d)(3)(I). Pub. L. 101-239, Sec. 7894(c)(9)(A),
    substituted "such Act" for "such act".
      1986 - Subsec. (d)(3)(E)(i). Pub. L. 99-514, Sec.
    1898(c)(7)(B)(iii), substituted "A" for "In the case of any payment
    before a participant has separated from service, a" in introductory
    provisions and inserted "in the case of any payment before a
    participant has separated from service," in subcl. (I).
      Subsec. (d)(3)(E)(ii). Pub. L. 99-514, Sec. 1898(c)(7)(B)(iv),
    amended cl. (ii) generally. Prior to amendment, cl. (ii) read as
    follows: "For purposes of this subparagraph, the term 'earliest
    retirement age' has the meaning given such term by section
    1055(h)(3) of this section, except that in the case of any
    individual account plan, the earliest retirement age shall be the
    date which is 10 years before the normal retirement age."
      Subsec. (d)(3)(F)(i). Pub. L. 99-514, Sec. 1898(c)(6)(B),
    inserted "(and any spouse of the participant shall not be treated
    as a spouse of the participant for such purposes)".
      Subsec. (d)(3)(F)(ii). Pub. L. 99-514, Sec. 1898(c)(7)(B)(i),
    inserted "surviving" before "former spouse".
      Subsec. (d)(3)(G)(i)(I). Pub. L. 99-514, Sec. 1898(c)(7)(B)(ii),
    substituted "each" for "any other".
      Subsec. (d)(3)(H)(i). Pub. L. 99-514, Sec. 1898(c)(2)(B)(i),
    substituted "shall separately account for the amounts (hereinafter
    in this subparagraph referred to as the 'segregated amounts')" for
    "shall segregate in a separate account in the plan or in an escrow
    account the amounts".
      Subsec. (d)(3)(H)(ii), (iii). Pub. L. 99-514, Sec.
    1898(c)(2)(B)(ii), (iii), substituted "the 18-month period
    described in clause (v)" for "18 months" and "including any
    interest" for "plus any interest".
      Subsec. (d)(3)(H)(iv). Pub. L. 99-514, Sec. 1898(c)(2)(B)(iv),
    inserted "described in clause (v)".
      Subsec. (d)(3)(H)(v). Pub. L. 99-514, Sec. 1898(c)(2)(B)(v),
    added cl. (v).
      Subsec. (d)(3)(L). Pub. L. 99-514, Sec. 1898(c)(4)(B), added
    subpar. (L) and redesignated former subpar. (L) as (N).
      Subsec. (d)(3)(M). Pub. L. 99-514, Sec. 1898(c)(5), added subpar.
    (M).
      Subsec. (d)(3)(N). Pub. L. 99-514, Sec. 1898(c)(4)(B),
    redesignated subpar. (L) as (N).
      1984 - Subsec. (d)(3). Pub. L. 98-397 added par. (3).

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Amendment by section 103(a) of Pub. L. 109-280 applicable to plan
    years beginning after Dec. 31, 2007, with collective bargaining
    exception, see section 103(c) of Pub. L. 109-280, set out as a note
    under section 1021 of this title.
      Amendment by section 107(a)(9), (10) of Pub. L. 109-280
    applicable to plan years beginning after 2007, see section 107(e)
    of Pub. L. 109-280, set out as a note under section 1021 of this
    title.
      Pub. L. 109-280, title IV, Sec. 410(c), Aug. 17, 2006, 120 Stat.
    935, provided that: "The amendments made by this section [amending
    this section and section 1350 of this title] shall apply to
    distributions made after final regulations implementing subsections
    (c) and (d) of section 4050 of the Employee Retirement Income
    Security Act of 1974 [29 U.S.C. 1350(c), (d)] (as added by
    subsection (a)), respectively, are prescribed."

                     EFFECTIVE DATE OF 1997 AMENDMENT                 
      Amendment by Pub. L. 105-34 applicable to judgments, orders, and
    decrees issued, and settlement agreements entered into, on or after
    Aug. 5, 1997, see section 1502(c) of Pub. L. 105-34, set out as a
    note under section 401 of Title 26, Internal Revenue Code.

                     EFFECTIVE DATE OF 1994 AMENDMENT                 
      Section 761(b) of Pub. L. 103-465 provided that:
      "(1) In general. - Except as provided in paragraph (2), the
    amendments made by this section [amending this section and sections
    1082, 1132, and 1301 of this title] shall apply to plan years
    beginning after December 31, 1994.
      "(2) Contributing sponsor. - The amendment made by subsection
    (a)(11) [amending section 1301 of this title] shall be effective as
    if included in the Pension Protection Act [Pub. L. 100-203, title
    IX, subtitle D, part II, Secs. 9302-9346]."
      Section 776(e) of Pub. L. 103-465 provided that: "The provisions
    of this section [enacting section 1350 of this title and amending
    this section and sections 1303, 1305, and 1341 of this title and
    section 401 of Title 26, Internal Revenue Code] shall be effective
    with respect to distributions that occur in plan years commencing
    after final regulations implementing these provisions are
    prescribed by the Pension Benefit Guaranty Corporation." [Final
    implementing regulations were issued Nov. 22, 1995, effective for
    distributions in plan years beginning on or after Jan. 1, 1996. See
    60 F.R. 61740.]

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by section 7891(a)(1) of Pub. L. 101-239 effective,
    except as otherwise provided, as if included in the provision of
    the Tax Reform Act of 1986, Pub. L. 99-514, to which such amendment
    relates, see section 7891(f) of Pub. L. 101-239, set out as a note
    under section 1002 of this title.
      Amendment by section 7894(c)(8) of Pub. L. 101-239 effective,
    except as otherwise provided, as if originally included in the
    provision of the Employee Retirement Income Security Act of 1974,
    Pub. L. 93-406, to which such amendment relates, see section
    7894(i) of Pub. L. 101-239, set out as a note under section 1002 of
    this title.
      Section 7894(c)(9)(B) of Pub. L. 101-239 provided that: "The
    amendment made by subparagraph (A) [amending this section] shall
    take effect as if included in section 104 of the Retirement Equity
    Act of 1984 [Pub. L. 98-397]."

                     EFFECTIVE DATE OF 1986 AMENDMENT                 
      Amendment by Pub. L. 99-514 effective as if included in the
    provision of the Retirement Equity Act of 1984, Pub. L. 98-397, to
    which such amendment relates, except as otherwise provided, see
    section 1898(j) of Pub. L. 99-514, set out as a note under section
    401 of Title 26, Internal Revenue Code.

                     EFFECTIVE DATE OF 1984 AMENDMENT                 
      Amendment by Pub. L. 98-397 effective Jan. 1, 1985, except as
    otherwise provided, see section 303(d) of Pub. L. 98-397, set out
    as a note under section 1001 of this title.

    APPLICABILITY OF AMENDMENTS BY SUBTITLES A AND B OF TITLE I OF PUB.
                                L. 109-280
      For special rules on applicability of amendments by subtitles A
    (Secs. 101-107) and B (Secs. 111-116) of title I of Pub. L. 109-280
    to certain eligible cooperative plans, PBGC settlement plans, and
    eligible government contractor plans, see sections 104, 105, and
    106 of Pub. L. 109-280, set out as notes under section 401 of Title
    26, Internal Revenue Code.

            PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989        
      For provisions directing that if any amendments made by subtitle
    A or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or
    title XVIII [Secs. 1800-1899A] of Pub. L. 99-514 require an
    amendment to any plan, such plan amendment shall not be required to
    be made before the first plan year beginning on or after Jan. 1,
    1989, see section 1140 of Pub. L. 99-514, as amended, set out as a
    note under section 401 of Title 26, Internal Revenue Code.

-End-



-CITE-
    29 USC Sec. 1057                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 2 - participation and vesting

-HEAD-
    Sec. 1057. Temporary variances from certain vesting requirements

-STATUTE-
      In the case of any plan maintained on January 1, 1974, if not
    later than 2 years after September 2, 1974, the administrator
    petitions the Secretary, the Secretary may prescribe an alternate
    method which shall be treated as satisfying the requirements of
    section 1053(a)(2) or 1054(b)(1) (other than subparagraph (D)
    thereof) of this title or both for a period of not more than 4
    years. The Secretary may prescribe such alternate method only when
    he finds that - 
        (1) the application of such requirements would increase the
      costs of the plan to such an extent that there would result a
      substantial risk to the voluntary continuation of the plan or a
      substantial curtailment of benefit levels or the levels of
      employees' compensation.
        (2) the application of such requirements or discontinuance of
      the plan would be adverse to the interests of plan participants
      in the aggregate, and
        (3) a waiver or extension of time granted under section 1083 or
      1084 of this title would be inadequate.

    In the case of any plan with respect to which an alternate method
    has been prescribed under the preceding provisions of this
    subsection for a period of not more than 4 years, if, not later
    than 1 year before the expiration of such period, the administrator
    petitions the Secretary for an extension of such alternate method,
    and the Secretary makes the findings required by the preceding
    sentence, such alternate method may be extended for not more than 3
    years.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 207, Sept. 2, 1974, 88 Stat. 865.)


-STATAMEND-
                             REPEAL OF SECTION                         
      Pub. L. 109-280, title I, Sec. 107(d), (e), Aug. 17, 2006, 120
    Stat. 820, provided that, applicable to plan years beginning after
    2007, this section is repealed.


-MISC1-
                         EFFECTIVE DATE OF REPEAL                     
      Repeal applicable to plan years beginning after 2007, see section
    107(e) of Pub. L. 109-280, set out as an Effective Date of 2006
    Amendment note under section 1021 of this title.

                                REGULATIONS                            
      Secretary authorized, effective Sept. 2, 1974, to promulgate
    regulations wherever provisions of this subchapter call for the
    promulgation of regulations, see section 1031 of this title.

-End-



-CITE-
    29 USC Sec. 1058                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 2 - participation and vesting

-HEAD-
    Sec. 1058. Mergers and consolidations of plans or transfers of plan
      assets

-STATUTE-
      A pension plan may not merge or consolidate with, or transfer its
    assets or liabilities to, any other plan after September 2, 1974,
    unless each participant in the plan would (if the plan then
    terminated) receive a benefit immediately after the merger,
    consolidation, or transfer which is equal to or greater than the
    benefit he would have been entitled to receive immediately before
    the merger, consolidation, or transfer (if the plan had then
    terminated). The preceding sentence shall not apply to any
    transaction to the extent that participants either before or after
    the transaction are covered under a multiemployer plan to which
    subchapter III of this chapter applies.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 208, Sept. 2, 1974, 88 Stat. 865;
    Pub. L. 96-364, title IV, Sec. 402(b)(1), Sept. 26, 1980, 94 Stat.
    1299.)


-MISC1-
                                AMENDMENTS                            
      1980 - Pub. L. 96-364 substituted provisions respecting
    applicability of preceding sentence to transactions under a covered
    multiemployer plan to which subchapter III applies, for provisions
    relating to applicability of paragraph to a multiemployer plan only
    to extent determined by Corporation.

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-364 effective Sept. 26, 1980, except as
    specifically provided, see section 1461(e) of this title.

-End-



-CITE-
    29 USC Sec. 1059                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 2 - participation and vesting

-HEAD-
    Sec. 1059. Recordkeeping and reporting requirements

-STATUTE-
      (a)(1) Except as provided by paragraph (2) every employer shall,
    in accordance with regulations prescribed by the Secretary,
    maintain records with respect to each of his employees sufficient
    to determine the benefits due or which may become due to such
    employees. The plan administrator shall make a report, in such
    manner and at such time as may be provided in regulations
    prescribed by the Secretary, to each employee who is a participant
    under the plan and who - 
        (A) requests such report, in such manner and at such time as
      may be provided in such regulations,
        (B) terminates his service with the employer, or
        (C) has a 1-year break in service (as defined in section
      1053(b)(3)(A) of this title).

    The employer shall furnish to the plan administrator the
    information necessary for the administrator to make the reports
    required by the preceding sentence. Not more than one report shall
    be required under subparagraph (A) in any 12-month period. Not more
    than one report shall be required under subparagraph (C) with
    respect to consecutive 1-year breaks in service. The report
    required under this paragraph shall be sufficient to inform the
    employee of his accrued benefits under the plan and the percentage
    of such benefits which are nonforfeitable under the plan.
      (2) If more than one employer adopts a plan, each such employer
    shall, in accordance with regulations prescribed by the Secretary,
    furnish to the plan administrator the information necessary for the
    administrator to maintain the records and make the reports required
    by paragraph (1). Such administrator shall maintain the records
    and, to the extent provided under regulations prescribed by the
    Secretary, make the reports, required by paragraph (1).
      (b) If any person who is required, under subsection (a) of this
    section, to furnish information or maintain records for any plan
    year fails to comply with such requirement, he shall pay to the
    Secretary a civil penalty of $10 for each employee with respect to
    whom such failure occurs, unless it is shown that such failure is
    due to reasonable cause.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 209, Sept. 2, 1974, 88 Stat. 865.)


-MISC1-
                                REGULATIONS                            
      Secretary authorized, effective Sept. 2, 1974, to promulgate
    regulations wherever provisions of this subchapter call for the
    promulgation of regulations, see section 1031 of this title.

-End-



-CITE-
    29 USC Sec. 1060                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 2 - participation and vesting

-HEAD-
    Sec. 1060. Multiple employer plans

-STATUTE-
    (a) Plan maintained by more than one employer
      Notwithstanding any other provision of this part or part 3, the
    following provisions of this subsection shall apply to a plan
    maintained by more than one employer:
        (1) Section 1052 of this title shall be applied as if all
      employees of each of the employers were employed by a single
      employer.
        (2) Sections 1053 and 1054 of this title shall be applied as if
      all such employers constituted a single employer, except that the
      application of any rules with respect to breaks in service shall
      be made under regulations prescribed by the Secretary.
        (3) The minimum funding standard provided by section 1082 of
      this title shall be determined as if all participants in the plan
      were employed by a single employer.
    (b) Maintenance of plan of predecessor employer
      For purposes of this part and part 3 - 
        (1) in any case in which the employer maintains a plan of a
      predecessor employer, service for such predecessor shall be
      treated as service for the employer, and
        (2) in any case in which the employer maintains a plan which is
      not the plan maintained by a predecessor employer, service for
      such predecessor shall, to the extent provided in regulations
      prescribed by the Secretary of the Treasury, be treated as
      service for the employer.
    (c) Plan maintained by controlled group of corporations
      For purposes of sections 1052, 1053, and 1054 of this title, all
    employees of all corporations which are members of a controlled
    group of corporations (within the meaning of section 1563(a) of
    title 26, determined without regard to section 1563(a)(4) and
    (e)(3)(C) of title 26) shall be treated as employed by a single
    employer. With respect to a plan adopted by more than one such
    corporation, the minimum funding standard of section 1082 of this
    title shall be determined as if all such employers were a single
    employer, and allocated to each employer in accordance with
    regulations prescribed by the Secretary of the Treasury.
    (d) Plan of trades or businesses under common control
      For purposes of sections 1052, 1053, and 1054 of this title,
    under regulations prescribed by the Secretary of the Treasury, all
    employees of trades or businesses (whether or not incorporated)
    which are under common control shall be treated as employed by a
    single employer. The regulations prescribed under this subsection
    shall be based on principles similar to the principles which apply
    in the case of subsection (c) of this section.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 210, Sept. 2, 1974, 88 Stat. 866;
    Pub. L. 101-239, title VII, Secs. 7891(a)(1), 7894(c)(10), Dec. 19,
    1989, 103 Stat. 2445, 2449; Pub. L. 109-280, title IX, Sec.
    903(b)(1), (2)(A), Aug. 17, 2006, 120 Stat. 1044, 1048.)


-STATAMEND-
                           AMENDMENT OF SECTION                       
      Pub. L. 109-280, title IX, Sec. 903(b)(1), (2)(A), (c), Aug. 17,
    2006, 120 Stat. 1044, 1048, provided that, applicable to plan years
    beginning after Dec. 31, 2009, this section is amended as follows:
      (1) by amending the section catchline to read as follows:
    "Multiple employer plans and other special rules"; and
      (2) by adding subsection (e) at the end to read as follows:
    (e) Special rules for eligible combined defined benefit plans and
      qualified cash or deferred arrangements
      (1) General rule
        Except as provided in this subsection, this chapter shall be
      applied to any defined benefit plan or applicable individual
      account plan which are part of an eligible combined plan in the
      same manner as if each such plan were not a part of the eligible
      combined plan.
      (2) Eligible combined plan
        For purposes of this subsection - 
        (A) In general
          The term "eligible combined plan" means a plan - 
            (i) which is maintained by an employer which, at the time
          the plan is established, is a small employer,
            (ii) which consists of a defined benefit plan and an
          applicable individual account plan each of which qualifies
          under section 401(a) of title 26,
            (iii) the assets of which are held in a single trust
          forming part of the plan and are clearly identified and
          allocated to the defined benefit plan and the applicable
          individual account plan to the extent necessary for the
          separate application of this chapter under paragraph (1), and
            (iv) with respect to which the benefit, contribution,
          vesting, and nondiscrimination requirements of subparagraphs
          (B), (C), (D), (E), and (F) are met.

        For purposes of this subparagraph, the term "small employer"
        has the meaning given such term by section 4980D(d)(2) of title
        26, except that such section shall be applied by substituting
        "500" for "50" each place it appears.
        (B) Benefit requirements
          (i) In general
            The benefit requirements of this subparagraph are met with
          respect to the defined benefit plan forming part of the
          eligible combined plan if the accrued benefit of each
          participant derived from employer contributions, when
          expressed as an annual retirement benefit, is not less than
          the applicable percentage of the participant's final average
          pay. For purposes of this clause, final average pay shall be
          determined using the period of consecutive years (not
          exceeding 5) during which the participant had the greatest
          aggregate compensation from the employer.
          (ii) Applicable percentage
            For purposes of clause (i), the applicable percentage is
          the lesser of - 
              (I) 1 percent multiplied by the number of years of
            service with the employer, or
              (II) 20 percent.
          (iii) Special rule for applicable defined benefit plans
            If the defined benefit plan under clause (i) is an
          applicable defined benefit plan as defined in section
          1053(f)(3)(B) of this title which meets the interest credit
          requirements of section 1054(b)(5)(B)(i) of this title, the
          plan shall be treated as meeting the requirements of clause
          (i) with respect to any plan year if each participant
          receives pay credit for the year which is not less than the
          percentage of compensation determined in accordance with the
          following table:

    If the participant's age as of the                                  
    beginning of the year is -                          The percentage
                                                         is -           
      30 or less                                                2     
      Over 30 but less than 40                                  4     
      40 or over but less than 50                               6     
      50 or over                                                 8.   

          (iv) Years of service
            For purposes of this subparagraph, years of service shall
          be determined under the rules of paragraphs (1), (2), and (3)
          of section 1053(b) of this title, except that the plan may
          not disregard any year of service because of a participant
          making, or failing to make, any elective deferral with
          respect to the qualified cash or deferred arrangement to
          which subparagraph (C) applies.
        (C) Contribution requirements
          (i) In general
            The contribution requirements of this subparagraph with
          respect to any applicable individual account plan forming
          part of an eligible combined plan are met if - 
              (I) the qualified cash or deferred arrangement included
            in such plan constitutes an automatic contribution
            arrangement, and
              (II) the employer is required to make matching
            contributions on behalf of each employee eligible to
            participate in the arrangement in an amount equal to 50
            percent of the elective contributions of the employee to
            the extent such elective contributions do not exceed 4
            percent of compensation.

          Rules similar to the rules of clauses (ii) and (iii) of
          section 401(k)(12)(B) of title 26 shall apply for purposes of
          this clause.
          (ii) Nonelective contributions
            An applicable individual account plan shall not be treated
          as failing to meet the requirements of clause (i) because the
          employer makes nonelective contributions under the plan but
          such contributions shall not be taken into account in
          determining whether the requirements of clause (i)(II) are
          met.
        (D) Vesting requirements
          The vesting requirements of this subparagraph are met if - 
            (i) in the case of a defined benefit plan forming part of
          an eligible combined plan an employee who has completed at
          least 3 years of service has a nonforfeitable right to 100
          percent of the employee's accrued benefit under the plan
          derived from employer contributions, and
            (ii) in the case of an applicable individual account plan
          forming part of eligible combined plan - 
              (I) an employee has a nonforfeitable right to any
            matching contribution made under the qualified cash or
            deferred arrangement included in such plan by an employer
            with respect to any elective contribution, including
            matching contributions in excess of the contributions
            required under subparagraph (C)(i)(II), and
              (II) an employee who has completed at least 3 years of
            service has a nonforfeitable right to 100 percent of the
            employee's accrued benefit derived under the arrangement
            from nonelective contributions of the employer.

          For purposes of this subparagraph, the rules of section 1053
          of this title shall apply to the extent not inconsistent with
          this subparagraph.
        (E) Uniform provision of contributions and benefits
          In the case of a defined benefit plan or applicable
        individual account plan forming part of an eligible combined
        plan, the requirements of this subparagraph are met if all
        contributions and benefits under each such plan, and all rights
        and features under each such plan, must be provided uniformly
        to all participants.
        (F) Requirements must be met without taking into account social
          security and similar contributions and benefits or other
          plans
          (i) In general
            The requirements of this subparagraph are met if the
          requirements of clauses (ii) and (iii) are met.
          (ii) Social security and similar contributions
            The requirements of this clause are met if - 
              (I) the requirements of subparagraphs (B) and (C) are met
            without regard to section 401(l) of title 26, and
              (II) the requirements of sections 401(a)(4) and 410(b) of
            title 26 are met with respect to both the applicable
            defined contribution plan and defined benefit plan forming
            part of an eligible combined plan without regard to section
            401(l) of title 26.
          (iii) Other plans and arrangements
            The requirements of this clause are met if the applicable
          defined contribution plan and defined benefit plan forming
          part of an eligible combined plan meet the requirements of
          sections 401(a)(4) and 410(b) of title 26 without being
          combined with any other plan.
      (3) Nondiscrimination requirements for qualified cash or deferred
        arrangement
        (A) In general
          A qualified cash or deferred arrangement which is included in
        an applicable individual account plan forming part of an
        eligible combined plan shall be treated as meeting the
        requirements of section 401(k)(3)(A)(ii) of title 26 if the
        requirements of paragraph (2) are met with respect to such
        arrangement.
        (B) Matching contributions
          In applying section 401(m)(11) of title 26 to any matching
        contribution with respect to a contribution to which paragraph
        (2)(C) applies, the contribution requirement of paragraph
        (2)(C) and the notice requirements of paragraph (5)(B) shall be
        substituted for the requirements otherwise applicable under
        clauses (i) and (ii) of section 401(m)(11)(A) of title 26.
      (4) Automatic contribution arrangement
        For purposes of this subsection - 
        (A) In general
          A qualified cash or deferred arrangement shall be treated as
        an automatic contribution arrangement if the arrangement - 
            (i) provides that each employee eligible to participate in
          the arrangement is treated as having elected to have the
          employer make elective contributions in an amount equal to 4
          percent of the employee's compensation unless the employee
          specifically elects not to have such contributions made or to
          have such contributions made at a different rate, and
            (ii) meets the notice requirements under subparagraph (B).
        (B) Notice requirements
          (i) In general
            The requirements of this subparagraph are met if the
          requirements of clauses (ii) and (iii) are met.
          (ii) Reasonable period to make election
            The requirements of this clause are met if each employee to
          whom subparagraph (A)(i) applies - 
              (I) receives a notice explaining the employee's right
            under the arrangement to elect not to have elective
            contributions made on the employee's behalf or to have the
            contributions made at a different rate, and
              (II) has a reasonable period of time after receipt of
            such notice and before the first elective contribution is
            made to make such election.
          (iii) Annual notice of rights and obligations
            The requirements of this clause are met if each employee
          eligible to participate in the arrangement is, within a
          reasonable period before any year, given notice of the
          employee's rights and obligations under the arrangement.

        The requirements of this subparagraph shall not be treated as
        met unless the requirements of clauses (i) and (ii) of section
        401(k)(12)(D) of title 26 are met with respect to the notices
        described in clauses (ii) and (iii) of this subparagraph.
      (5) Coordination with other requirements
        (A) Treatment of separate plans
          The except clause in section 1002(35) of this title shall not
        apply to an eligible combined plan.
        (B) Reporting
          An eligible combined plan shall be treated as a single plan
        for purposes of section 1023 of this title.
      (6) Applicable individual account plan
        For purposes of this subsection - 
        (A) In general
          The term "applicable individual account plan" means an
        individual account plan which includes a qualified cash or
        deferred arrangement.
        (B) Qualified cash or deferred arrangement
          The term "qualified cash or deferred arrangement" has the
        meaning given such term by section 401(k)(2) of title 26.


-MISC1-
                                AMENDMENTS                            
      1989 - Subsec. (c). Pub. L. 101-239, Sec. 7894(c)(10),
    substituted "and (e)(3)(C) of such Code" for "and (e)(3)(C) of such
    code", which for purposes of codification was translated as "and
    (e)(3)(C) of title 26" thus requiring no change in text.
      Pub. L. 101-239, Sec. 7891(a)(1), substituted "Internal Revenue
    Code of 1986" for "Internal Revenue Code of 1954", which for
    purposes of codification was translated as "title 26" thus
    requiring no change in text.

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Amendment by Pub. L. 109-280 applicable to plan years beginning
    after Dec. 31, 2009, see section 903(c) of Pub. L. 109-280, set out
    as a note under section 414 of Title 26, Internal Revenue Code.

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by section 7891(a)(1) of Pub. L. 101-239 effective,
    except as otherwise provided, as if included in the provision of
    the Tax Reform Act of 1986, Pub. L. 99-514, to which such amendment
    relates, see section 7891(f) of Pub. L. 101-239, set out as a note
    under section 1002 of this title.
      Amendment by section 7894(c)(10) of Pub. L. 101-239 effective,
    except as otherwise provided, as if originally included in the
    provision of the Employee Retirement Income Security Act of 1974,
    Pub. L. 93-406, to which such amendment relates, see section
    7894(i) of Pub. L. 101-239, set out as a note under section 1002 of
    this title.

                                REGULATIONS                            
      Secretary authorized, effective Sept. 2, 1974, to promulgate
    regulations wherever provisions of this subchapter call for the
    promulgation of regulations, see section 1031 of this title.

-End-



-CITE-
    29 USC Sec. 1061                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 2 - participation and vesting

-HEAD-
    Sec. 1061. Effective dates

-STATUTE-
      (a) Except as otherwise provided in this section, this part shall
    apply in the case of plan years beginning after September 2, 1974.
      (b)(1) Except as otherwise provided in subsection (d) of this
    section, sections 1055, 1056(d) and 1058 of this title shall apply
    with respect to plan years beginning after December 31, 1975.
      (2) Except as otherwise provided in subsections (c) and (d) of
    this section in the case of a plan in existence on January 1, 1974,
    this part shall apply in the case of plan years beginning after
    December 31, 1975.
      (c)(1) In the case of a plan maintained on January 1, 1974,
    pursuant to one or more agreements which the Secretary finds to be
    collective bargaining agreements between employee organizations and
    one or more employers, no plan shall be treated as not meeting the
    requirements of sections 1054 and 1055 of this title by reason of a
    supplementary or special plan provision (within the meaning of
    paragraph (2)) for any plan year before the year which begins after
    the earlier of - 
        (A) the date on which the last of such agreements relating to
      the plan terminates (determined without regard to any extension
      thereof agreed to after September 2, 1974), or
        (B) December 31, 1980.

    For purposes of subparagraph (A) and section 1086(c) (!1) of this
    title, any plan amendment made pursuant to a collective bargaining
    agreement relating to the plan which amends the plan solely to
    conform to any requirement contained in this chapter or the
    Internal Revenue Code of 1986 shall not be treated as a termination
    of such collective bargaining agreement. This paragraph shall not
    apply unless the Secretary determines that the participation and
    vesting rules in effect on September 2, 1974, are not less
    favorable to participants, in the aggregate, than the rules
    provided under sections 1052, 1053, and 1054 of this title.

      (2) For purposes of paragraph (1), the term "supplementary or
    special plan provision" means any plan provision which - 
        (A) provides supplementary benefits, not in excess of one-third
      of the basic benefit, in the form of an annuity for the life of
      the participant, or
        (B) provides that, under a contractual agreement based on
      medical evidence as to the effects of working in an adverse
      environment for an extended period of time, a participant having
      25 years of service is to be treated as having 30 years of
      service.

      (3) This subsection shall apply with respect to a plan if (and
    only if) the application of this subsection results in a later
    effective date for this part than the effective date required by
    subsection (b) of this section.
      (d) If the administrator of a plan elects under section 1017(d)
    of this Act to make applicable to a plan year and to all subsequent
    plan years the provisions of the Internal Revenue Code of 1986
    relating to participation, vesting, funding, and form of benefit,
    this part shall apply to the first plan year to which such election
    applies and to all subsequent plan years.
      (e)(1) No pension plan to which section 1052 of this title
    applies may make effective any plan amendment with respect to
    breaks in service (which amendment is made or becomes effective
    after January 1, 1974, and before the date on which section 1052 of
    this title first becomes effective with respect to such plan) which
    provides that any employee's participation in the plan would
    commence at any date later than the later of - 
        (A) the date on which his participation would commence under
      the break in service rules of section 1052(b) of this title, or
        (B) the date on which his participation would commence under
      the plan as in effect on January 1, 1974.

      (2) No pension plan to which section 1053 of this title applies
    may make effective any plan amendment with respect to breaks in
    service (which amendment is made or becomes effective after January
    1, 1974, and before the date on which section 1053 of this title
    first becomes effective with respect to such plan) if such
    amendment provides that the nonforfeitable benefit derived from
    employer contributions to which any employee would be entitled is
    less than the lesser of the nonforfeitable benefit derived from
    employer contributions to which he would be entitled under - 
        (A) the break in service rules of section 1052(b)(3) of this
      title, or
        (B) the plan as in effect on January 1, 1974.

    Subparagraph (B) shall not apply if the break in service rules
    under the plan would have been in violation of any law or rule of
    law in effect on January 1, 1974.
      (f) The preceding provisions of this section shall not apply with
    respect to amendments made to this part in provisions enacted after
    September 2, 1974.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 211, Sept. 2, 1974, 88 Stat. 867;
    Pub. L. 99-272, title XI, Sec. 11015(a)(1)(B), Apr. 7, 1986, 100
    Stat. 265; Pub. L. 101-239, title VII, Secs. 7891(a)(1),
    7894(h)(2), Dec. 19, 1989, 103 Stat. 2445, 2451.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 1086(c) of this title, referred to in subsec. (c)(1), was
    in the original "section 307(c)", meaning section 307(c) of Pub. L.
    93-406, the Employee Retirement Income Security Act of 1974.
    Section 307(c) was renumbered section 308(c) by Pub. L. 100-203,
    title IX, Sec. 9341(b)(1), Dec. 22, 1987, 101 Stat. 1330-370.
      This chapter, referred to in subsec. (c)(1), was in the original
    "this Act", meaning Pub. L. 93-406, known as the Employee
    Retirement Income Security Act of 1974. Titles I, III, and IV of
    such Act are classified principally to this chapter. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 1001 of this title and Tables.
      The Internal Revenue Code of 1986, referred to in subsecs. (c)(1)
    and (d), is classified generally to Title 26, Internal Revenue
    Code.
      Section 1017(d) of this Act, referred to in subsec. (d), is
    section 1017 of Pub. L. 93-406, which is set out as an Effective
    Date; Transitional Rules note under section 410 of Title 26.


-MISC1-
                                AMENDMENTS                            
      1989 - Subsecs. (c)(1), (d). Pub. L. 101-239, Sec. 7891(a)(1),
    substituted "Internal Revenue Code of 1986" for "Internal Revenue
    Code of 1954".
      Subsec. (f). Pub. L. 101-239, Sec. 7894(h)(2), added subsec. (f).
      1986 - Subsec. (c)(1). Pub. L. 99-272 made a technical amendment
    to the reference to section 1086(c) of this title to reflect the
    renumbering of the corresponding section of the original act.

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by section 7891(a)(1) of Pub. L. 101-239 effective,
    except as otherwise provided, as if included in the provision of
    the Tax Reform Act of 1986, Pub. L. 99-514, to which such amendment
    relates, see section 7891(f) of Pub. L. 101-239, set out as a note
    under section 1002 of this title.
      Amendment by section 7894(h)(2) of Pub. L. 101-239 effective,
    except as otherwise provided, as if originally included in the
    provision of the Employee Retirement Income Security Act of 1974,
    Pub. L. 93-406, to which such amendment relates, see section
    7894(i) of Pub. L. 101-239, set out as a note under section 1002 of
    this title.

                     EFFECTIVE DATE OF 1986 AMENDMENT                 
      Amendment by Pub. L. 99-272 applicable with respect to
    applications for waivers, extensions, and modifications filed on or
    after Apr. 7, 1986, see section 11015(a)(3) of Pub. L. 99-272, set
    out as an Effective Date note under section 1085a of this title.

-FOOTNOTE-
    (!1) See References in Text note below.


-End-


-CITE-
    29 USC part 3 - funding                                     01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 3 - funding

-HEAD-
                             PART 3 - FUNDING                         

-End-



-CITE-
    29 USC Sec. 1081                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 3 - funding

-HEAD-
    Sec. 1081. Coverage

-STATUTE-
    (a) Plans excepted from applicability of this part
      This part shall apply to any employee pension benefit plan
    described in section 1003(a) of this title, (and not exempted under
    section 1003(b) of this title), other than - 
        (1) an employee welfare benefit plan;
        (2) an insurance contract plan described in subsection (b) of
      this section;
        (3) a plan which is unfunded and is maintained by an employer
      primarily for the purpose of providing deferred compensation for
      a select group of management or highly compensated employees;
        (4)(A) a plan which is established and maintained by a society,
      order, or association described in section 501(c)(8) or (9) of
      title 26, if no part of the contributions to or under such plan
      are made by employers of participants in such plan; or
        (B) a trust described in section 501(c)(18) of title 26;
        (5) a plan which has not at any time after September 2, 1974,
      provided for employer contributions;
        (6) an agreement providing payments to a retired partner or
      deceased partner or a deceased partner's successor in interest as
      described in section 736 of title 26;
        (7) an individual retirement account or annuity as described in
      section 408(a) of title 26, or a retirement bond described in
      section 409 of title 26 (as effective for obligations issued
      before January 1, 1984);
        (8) an individual account plan (other than a money purchase
      plan) and a defined benefit plan to the extent it is treated as
      an individual account plan (other than a money purchase plan)
      under section 1002(35)(B) of this title;
        (9) an excess benefit plan; or
        (10) any plan, fund or program under which an employer, all of
      whose stock is directly or indirectly owned by employees, former
      employees or their beneficiaries, proposes through an unfunded
      arrangement to compensate retired employees for benefits which
      were forfeited by such employees under a pension plan maintained
      by a former employer prior to the date such pension plan became
      subject to this chapter.
    (b) "Insurance contract plan" defined
      For the purposes of paragraph (2) of subsection (a) of this
    section a plan is an "insurance contract plan" if - 
        (1) the plan is funded exclusively by the purchase of
      individual insurance contracts,
        (2) such contracts provide for level annual premium payments to
      be paid extending not later than the retirement age for each
      individual participating in the plan, and commencing with the
      date the individual became a participant in the plan (or, in the
      case of an increase in benefits, commencing at the time such
      increase became effective),
        (3) benefits provided by the plan are equal to the benefits
      provided under each contract at normal retirement age under the
      plan and are guaranteed by an insurance carrier (licensed under
      the laws of a State to do business with the plan) to the extent
      premiums have been paid,
        (4) premiums payable for the plan year, and all prior plan
      years under such contracts have been paid before lapse or there
      is reinstatement of the policy,
        (5) no rights under such contracts have been subject to a
      security interest at any time during the plan year, and
        (6) no policy loans are outstanding at any time during the plan
      year.

    A plan funded exclusively by the purchase of group insurance
    contracts which is determined under regulations prescribed by the
    Secretary of the Treasury to have the same characteristics as
    contracts described in the preceding sentence shall be treated as a
    plan described in this subsection.
    (c) Applicability of this part to terminated multiemployer plans
      This part applies, with respect to a terminated multiemployer
    plan to which section 1321 of this title applies, until the last
    day of the plan year in which the plan terminates, within the
    meaning of section 1341a(a)(2) of this title.
    (d) Financial assistance from Pension Benefit Guaranty Corporation
      Any amount of any financial assistance from the Pension Benefit
    Guaranty Corporation to any plan, and any repayment of such amount,
    shall be taken into account under this section in such manner as
    determined by the Secretary of the Treasury.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 301, Sept. 2, 1974, 88 Stat. 868;
    Pub. L. 96-364, title III, Sec. 304(a), title IV, Sec. 411(b),
    Sept. 26, 1980, 94 Stat. 1293, 1308; Pub. L. 101-239, title VII,
    Secs. 7891(a)(1), 7894(d)(1)(A), (4)(A), Dec. 19, 1989, 103 Stat.
    2445, 2449; Pub. L. 109-280, title II, Sec. 201(c)(1), Aug. 17,
    2006, 120 Stat. 868.)


-STATAMEND-
                         REPEAL OF SUBSECTION (D)                     
      Pub. L. 109-280, title II, Sec. 201(c)(1), (d), Aug. 17, 2006,
    120 Stat. 868, provided that, applicable to plan years beginning
    after 2007, with special rule for certain amortization extensions,
    subsection (d) of this section is repealed.

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 409 of title 26, referred to in subsec. (a)(7), means
    section 409 of Title 26, Internal Revenue Code, prior to its repeal
    by Pub. L. 98-369, div. A, title IV, Sec. 491(b), July 18, 1984, 98
    Stat. 848, applicable to obligations issued after Dec. 31, 1983.
      This chapter, referred to in subsec. (a)(10), was in the original
    "this Act", meaning Pub. L. 93-406, known as the Employee
    Retirement Income Security Act of 1974. Titles I, III, and IV of
    such Act are classified principally to this chapter. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 1001 of this title and Tables.


-MISC1-
                                AMENDMENTS                            
      1989 - Subsec. (a)(4)(A), (6). Pub. L. 101-239, Sec. 7891(a)(1),
    substituted "Internal Revenue Code of 1986" for "Internal Revenue
    Code of 1954", which for purposes of codification was translated as
    "title 26" thus requiring no change in text.
      Subsec. (a)(7). Pub. L. 101-239, Sec. 7894(d)(4)(A), substituted
    "section 409 of title 26 (as effective for obligations issued
    before January 1, 1984)" for "section 409 of title 26".
      Subsec. (a)(8). Pub. L. 101-239, Sec. 7894(d)(1)(A)(i), struck
    out "or" after semicolon at end.
      Subsec. (a)(9). Pub. L. 101-239, Sec. 7894(d)(1)(A)(ii),
    substituted "; or" for period at end.
      Subsec. (a)(10). Pub. L. 101-239, Sec. 7894(d)(1)(A)(iii),
    substituted "any" for "Any".
      1980 - Subsec. (a)(10). Pub. L. 96-364, Sec. 411(b), added par.
    (10).
      Subsecs. (c), (d). Pub. L. 96-364, Sec. 304(a), added subsecs.
    (c) and (d).

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Pub. L. 109-280, title II, Sec. 201(d), Aug. 17, 2006, 120 Stat.
    868, provided that:
      "(1) In general. - The amendments made by this section [enacting
    section 1084 of this title and amending this section] shall apply
    to plan years beginning after 2007.
      "(2) Special rule for certain amortization extensions. - If the
    Secretary of the Treasury grants an extension under section 304 of
    the Employee Retirement Income Security Act of 1974 [29 U.S.C.
    1084] and section 412(e) of the Internal Revenue Code of 1986 [26
    U.S.C. 412(e)] with respect to any application filed with the
    Secretary of the Treasury on or before June 30, 2005, the extension
    (and any modification thereof) shall be applied and administered
    under the rules of such sections as in effect before the enactment
    of this Act [Aug. 17, 2006], including the use of the rate of
    interest determined under section 6621(b) of such Code [26 U.S.C.
    6621(b)]."

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by section 7891(a)(1) of Pub. L. 101-239 effective,
    except as otherwise provided, as if included in the provision of
    the Tax Reform Act of 1986, Pub. L. 99-514, to which such amendment
    relates, see section 7891(f) of Pub. L. 101-239, set out as a note
    under section 1002 of this title.
      Section 7894(d)(1)(B) of Pub. L. 101-239 provided that: "The
    amendments made by subparagraph (A) [amending this section] shall
    take effect as if included in section 411 of the Multiemployer
    Pension Plan Amendments Act of 1980 [Pub. L. 96-364]."
      Section 7894(d)(4)(B) of Pub. L. 101-239 provided that: "The
    amendment made by subparagraph (A) [amending this section] shall
    take effect as if originally included in section 491(b) of Public
    Law 98-369."

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-364 effective Sept. 26, 1980, except as
    specifically provided, see section 1461(e) of this title.

                                REGULATIONS                            
      Secretary authorized, effective Sept. 2, 1974, to promulgate
    regulations wherever provisions of this subchapter call for the
    promulgation of regulations, see section 1031 of this title.

        SPECIAL RULE FOR CERTAIN BENEFITS FUNDED UNDER AN AGREEMENT
           APPROVED BY THE PENSION BENEFIT GUARANTY CORPORATION
      For applicability of amendment by Pub. L. 109-280 to a
    multiemployer plan that is a party to an agreement that was
    approved by the Pension Benefit Guaranty Corporation prior to June
    30, 2005, and that increases benefits and provides for certain
    withdrawal liability rules, see section 206 of Pub. L. 109-280, set
    out as a note under section 412 of Title 26, Internal Revenue Code.

-End-



-CITE-
    29 USC Sec. 1082                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 3 - funding

-HEAD-
    Sec. 1082. Minimum funding standards

-STATUTE-
    (a) Avoidance of accumulated funding deficiency
      (1) Every employee pension benefit plan subject to this part
    shall satisfy the minimum funding standard (or the alternative
    minimum funding standard under section 1085 of this title) for any
    plan year to which this part applies. A plan to which this part
    applies shall have satisfied the minimum funding standard for such
    plan for a plan year if as of the end of such plan year the plan
    does not have an accumulated funding deficiency.
      (2) For the purposes of this part, the term "accumulated funding
    deficiency" means for any plan the excess of the total charges to
    the funding standard account for all plan years (beginning with the
    first plan year to which this part applies) over the total credits
    to such account for such years or, if less, the excess of the total
    charges to the alternative minimum funding standard account for
    such plan years over the total credits to such account for such
    years.
      (3) In any plan year in which a multiemployer plan is in
    reorganization, the accumulated funding deficiency of the plan
    shall be determined under section 1423 of this title.
    (b) Funding standard account
      (1) Each plan to which this part applies shall establish and
    maintain a funding standard account. Such account shall be credited
    and charged solely as provided in this section.
      (2) For a plan year, the funding standard account shall be
    charged with the sum of - 
        (A) the normal cost of the plan for the plan year,
        (B) the amounts necessary to amortize in equal annual
      installments (until fully amortized) - 
          (i) in the case of a plan in existence on January 1, 1974,
        the unfunded past service liability under the plan on the first
        day of the first plan year to which this part applies, over a
        period of 40 plan years,
          (ii) in the case of a plan which comes into existence after
        January 1, 1974, the unfunded past service liability under the
        plan on the first day of the first plan year to which this part
        applies, over a period of 30 plan years,
          (iii) separately, with respect to each plan year, the net
        increase (if any) in unfunded past service liability under the
        plan arising from plan amendments adopted in such year, over a
        period of 30 plan years,
          (iv) separately, with respect to each plan year, the net
        experience loss (if any) under the plan, over a period of 5
        plan years (15 plan years in the case of a multiemployer plan),
        and
          (v) separately, with respect to each plan year, the net loss
        (if any) resulting from changes in actuarial assumptions used
        under the plan, over a period of 10 plan years (30 plan years
        in the case of a multiemployer plan),

        (C) the amount necessary to amortize each waived funding
      deficiency (within the meaning of section 1083(c) of this title)
      for each prior plan year in equal annual installments (until
      fully amortized) over a period of 5 plan years (15 plan years in
      the case of a multiemployer plan),
        (D) the amount necessary to amortize in equal annual
      installments (until fully amortized) over a period of 5 plan
      years any amount credited to the funding standard account under
      paragraph (3)(D), and
        (E) the amount necessary to amortize in equal annual
      installments (until fully amortized) over a period of 20 years
      the contributions which would be required to be made under the
      plan but for the provisions of subsection (c)(7)(A)(i)(I) of this
      section.

      (3) For a plan year, the funding standard account shall be
    credited with the sum of - 
        (A) the amount considered contributed by the employer to or
      under the plan for the plan year,
        (B) the amount necessary to amortize in equal annual
      installments (until fully amortized) - 
          (i) separately, with respect to each plan year, the net
        decrease (if any) in unfunded past service liability under the
        plan arising from plan amendments adopted in such year, over a
        period of 30 plan years,
          (ii) separately, with respect to each plan year, the net
        experience gain (if any) under the plan, over a period of 5
        plan years (15 plan years in the case of a multiemployer plan),
        and
          (iii) separately, with respect to each plan year, the net
        gain (if any) resulting from changes in actuarial assumptions
        used under the plan, over a period of 10 plan years (30 plan
        years in the case of a multiemployer plan),

        (C) the amount of the waived funding deficiency (within the
      meaning of section 1083(c) of this title) for the plan year, and
        (D) in the case of a plan year for which the accumulated
      funding deficiency is determined under the funding standard
      account if such plan year follows a plan year for which such
      deficiency was determined under the alternative minimum funding
      standard, the excess (if any) of any debit balance in the funding
      standard account (determined without regard to this subparagraph)
      over any debit balance in the alternative minimum funding
      standard account.

      (4) Under regulations prescribed by the Secretary of the
    Treasury, amounts required to be amortized under paragraph (2) or
    paragraph (3), as the case may be - 
        (A) may be combined into one amount under such paragraph to be
      amortized over a period determined on the basis of the remaining
      amortization period for all items entering into such combined
      amount, and
        (B) may be offset against amounts required to be amortized
      under the other such paragraph, with the resulting amount to be
      amortized over a period determined on the basis of the remaining
      amortization periods for all items entering into whichever of the
      two amounts being offset is the greater.

      (5) Interest. - 
        (A) In general. - The funding standard account (and items
      therein) shall be charged or credited (as determined under
      regulations prescribed by the Secretary of the Treasury) with
      interest at the appropriate rate consistent with the rate or
      rates of interest used under the plan to determine costs.
        (B) Required change of interest rate. - For purposes of
      determining a plan's current liability and for purposes of
      determining a plan's required contribution under subsection (d)
      of this section for any plan year - 
          (i) In general. - If any rate of interest used under the plan
        to determine cost is not within the permissible range, the plan
        shall establish a new rate of interest within the permissible
        range.
          (ii) Permissible range. - For purposes of this subparagraph -
        
            (I) In general. - Except as provided in subclause (II) or
          (III), the term "permissible range" means a rate of interest
          which is not more than 10 percent above, and not more than 10
          percent below, the the (!1) weighted average of the rates of
          interest on 30-year Treasury securities during the 4-year
          period ending on the last day before the beginning of the
          plan year.

            (II) Special rule for years 2004, 2005, 2006, and 2007. -
          In the case of plan years beginning after December 31, 2003,
          and before January 1, 2008, the term "permissible range"
          means a rate of interest which is not above, and not more
          than 10 percent below, the weighted average of the rates of
          interest on amounts invested conservatively in long-term
          investment grade corporate bonds during the 4-year period
          ending on the last day before the beginning of the plan year.
          Such rates shall be determined by the Secretary of the
          Treasury on the basis of 2 or more indices that are selected
          periodically by the Secretary of the Treasury and that are in
          the top 3 quality levels available. The Secretary of the
          Treasury shall make the permissible range, and the indices
          and methodology used to determine the average rate, publicly
          available.
            (III) Secretarial authority. - If the Secretary finds that
          the lowest rate of interest permissible under subclause (I)
          or (II) is unreasonably high, the Secretary may prescribe a
          lower rate of interest, except that such rate may not be less
          than 80 percent of the average rate determined under such
          subclause.

          (iii) Assumptions. - Notwithstanding subsection (c)(3)(A)(i)
        of this section, the interest rate used under the plan shall be
        - 
            (I) determined without taking into account the experience
          of the plan and reasonable expectations, but
            (II) consistent with the assumptions which reflect the
          purchase rates which would be used by insurance companies to
          satisfy the liabilities under the plan.

      (6) In the case of a plan which, immediately before September 26,
    1980, was a multiemployer plan (within the meaning of section
    1002(37) of this title as in effect immediately before such date) -
    
        (A) any amount described in paragraph (2)(B)(ii), (2)(B)(iii),
      or (3)(B)(i) of this subsection which arose in a plan year
      beginning before such date shall be amortized in equal annual
      installments (until fully amortized) over 40 plan years,
      beginning with the plan year in which the amount arose;
        (B) any amount described in paragraph (2)(B)(iv) or (3)(B)(ii)
      of this subsection which arose in a plan year beginning before
      such date shall be amortized in equal annual installments (until
      fully amortized) over 20 plan years, beginning with the plan year
      in which the amount arose;
        (C) any change in past service liability which arises during
      the period of 3 plan years beginning on or after such date, and
      results from a plan amendment adopted before such date, shall be
      amortized in equal annual installments (until fully amortized)
      over 40 plan years, beginning with the plan year in which the
      change arises; and
        (D) any change in past service liability which arises during
      the period of 2 plan years beginning on or after such date, and
      results from the changing of a group of participants from one
      benefit level to another benefit level under a schedule of plan
      benefits which - 
          (i) was adopted before such date, and
          (ii) was effective for any plan participant before the
        beginning of the first plan year beginning on or after such
        date,

      shall be amortized in equal annual installments (until fully
      amortized) over 40 plan years, beginning with the plan year in
      which the increase arises.

      (7) For purposes of this part - 
        (A) Any amount received by a multiemployer plan in payment of
      all or part of an employer's withdrawal liability under part 1 of
      subtitle E of subchapter III of this chapter shall be considered
      an amount contributed by the employer to or under the plan. The
      Secretary of the Treasury may prescribe by regulation additional
      charges and credits to a multiemployer plan's funding standard
      account to the extent necessary to prevent withdrawal liability
      payments from being unduly reflected as advance funding for plan
      liabilities.
        (B) If a plan is not in reorganization in the plan year but was
      in reorganization in the immediately preceding plan year, any
      balance in the funding standard account at the close of such
      immediately preceding plan year - 
          (i) shall be eliminated by an offsetting credit or charge (as
        the case may be), but
          (ii) shall be taken into account in subsequent plan years by
        being amortized in equal annual installments (until fully
        amortized) over 30 plan years.

      The preceding sentence shall not apply to the extent of any
      accumulated funding deficiency under section 418B(a) of title 26
      as of the end of the last plan year that the plan was in
      reorganization.
        (C) Any amount paid by a plan during a plan year to the Pension
      Benefit Guaranty Corporation pursuant to section 1402 of this
      title or to a fund exempt under section 501(c)(22) of title 26
      pursuant to section 1403 of this title shall reduce the amount of
      contributions considered received by the plan for the plan year.
        (D) Any amount paid by an employer pending a final
      determination of the employer's withdrawal liability under part 1
      of subtitle E of subchapter III of this chapter and subsequently
      refunded to the employer by the plan shall be charged to the
      funding standard account in accordance with regulations
      prescribed by the Secretary.
        (E) For purposes of the full funding limitation under
      subsection (c)(7) of this section, unless otherwise provided by
      the plan, the accrued liability under a multiemployer plan shall
      not include benefits which are not nonforfeitable under the plan
      after the termination of the plan (taking into consideration
      section 411(d)(3) of title 26).
        (F) Election for deferral of charge for portion of net
      experience loss. - 
          (i) In general. - With respect to the net experience loss of
        an eligible multiemployer plan for the first plan year
        beginning after December 31, 2001, the plan sponsor may elect
        to defer up to 80 percent of the amount otherwise required to
        be charged under paragraph (2)(B)(iv) for any plan year
        beginning after June 30, 2003, and before July 1, 2005, to any
        plan year selected by the plan from either of the 2 immediately
        succeeding plan years.
          (ii) Interest. - For the plan year to which a charge is
        deferred pursuant to an election under clause (i), the funding
        standard account shall be charged with interest on the deferred
        charge for the period of deferral at the rate determined under
        section 1084(a) of this title for multiemployer plans.
          (iii) Restrictions on benefit increases. - No amendment which
        increases the liabilities of the plan by reason of any increase
        in benefits, any change in the accrual of benefits, or any
        change in the rate at which benefits become nonforfeitable
        under the plan shall be adopted during any period for which a
        charge is deferred pursuant to an election under clause (i),
        unless - 
            (I) the plan's enrolled actuary certifies (in such form and
          manner prescribed by the Secretary of the Treasury) that the
          amendment provides for an increase in annual contributions
          which will exceed the increase in annual charges to the
          funding standard account attributable to such amendment, or
            (II) the amendment is required by a collective bargaining
          agreement which is in effect on April 10, 2004.

        If a plan is amended during any such plan year in violation of
        the preceding sentence, any election under this paragraph shall
        not apply to any such plan year ending on or after the date on
        which such amendment is adopted.
          (iv) Eligible multiemployer plan. - For purposes of this
        subparagraph, the term "eligible multiemployer plan" means a
        multiemployer plan - 
            (I) which had a net investment loss for the first plan year
          beginning after December 31, 2001, of at least 10 percent of
          the average fair market value of the plan assets during the
          plan year, and
            (II) with respect to which the plan's enrolled actuary
          certifies (not taking into account the application of this
          subparagraph), on the basis of the acutuarial (!2)
          assumptions used for the last plan year ending before April
          10, 2004, that the plan is projected to have an accumulated
          funding deficiency (within the meaning of subsection (a)(2)
          of this section) for any plan year beginning after June 30,
          2003, and before July 1, 2006.


        For purposes of subclause (I), a plan's net investment loss
        shall be determined on the basis of the actual loss and not
        under any actuarial method used under subsection (c)(2) of this
        section.
          (v) Exception to treatment of eligible multiemployer plan. -
        In no event shall a plan be treated as an eligible
        multiemployer plan under clause (iv) if - 
            (I) for any taxable year beginning during the 10-year
          period preceding the first plan year for which an election is
          made under clause (i), any employer required to contribute to
          the plan failed to timely pay any excise tax imposed under
          section 4971 of title 26 with respect to the plan,
            (II) for any plan year beginning after June 30, 1993, and
          before the first plan year for which an election is made
          under clause (i), the average contribution required to be
          made by all employers to the plan does not exceed 10 cents
          per hour or no employer is required to make contributions to
          the plan, or
            (III) with respect to any of the plan years beginning after
          June 30, 1993, and before the first plan year for which an
          election is made under clause (i), a waiver was granted under
          section 1083 of this title or section 412(d) of title 26 with
          respect to the plan or an extension of an amortization period
          was granted under section 1084 of this title or section
          412(e) of title 26 with respect to the plan.

          (vi) Notice. - If a plan sponsor makes an election under this
        subparagraph or section 412(b)(7)(F) of title 26 for any plan
        year, the plan administrator shall provide, within 30 days of
        filing the election for such year, written notice of the
        election to participants and beneficiaries, to each labor
        organization representing such participants or beneficiaries,
        to each employer that has an obligation to contribute under the
        plan, and to the Pension Benefit Guaranty Corporation. Such
        notice shall include with respect to any election the amount of
        any charge to be deferred and the period of the deferral. Such
        notice shall also include the maximum guaranteed monthly
        benefits which the Pension Benefit Guaranty Corporation would
        pay if the plan terminated while underfunded.
          (vii) Election. - An election under this subparagraph shall
        be made at such time and in such manner as the Secretary of the
        Treasury may prescribe.
    (c) Methods
      (1) For purposes of this part, normal costs, accrued liability,
    past service liabilities, and experience gains and losses shall be
    determined under the funding method used to determine costs under
    the plan.
      (2)(A) For purposes of this part, the value of the plan's assets
    shall be determined on the basis of any reasonable actuarial method
    of valuation which takes into account fair market value and which
    is permitted under regulations prescribed by the Secretary of the
    Treasury.
      (B) For purposes of this part, the value of a bond or other
    evidence of indebtedness which is not in default as to principal or
    interest may, at the election of the plan administrator, be
    determined on an amortized basis running from initial cost at
    purchase to par value at maturity or earliest call date. Any
    election under this subparagraph shall be made at such time and in
    such manner as the Secretary of the Treasury shall by regulations
    provide, shall apply to all such evidences of indebtedness, and may
    be revoked only with the consent of the Secretary of the Treasury.
    In the case of a plan other than a multiemployer plan, this
    subparagraph shall not apply, but the Secretary of the Treasury may
    by regulations provide that the value of any dedicated bond
    portfolio of such plan shall be determined by using the interest
    rate under subsection (b)(5) of this section.
      (3) For purposes of this section, all costs, liabilities, rates
    of interest, and other factors under the plan shall be determined
    on the basis of actuarial assumptions and methods - 
        (A) in the case of - 
          (i) a plan other than a multiemployer plan, each of which is
        reasonable (taking into account the experience of the plan and
        reasonable expectations) or which, in the aggregate, result in
        a total contribution equivalent to that which would be
        determined if each such assumption and method were reasonable,
        or
          (ii) a multiemployer plan, which, in the aggregate, are
        reasonable (taking into account the experiences of the plan and
        reasonable expectations), and

        (B) which, in combination, offer the actuary's best estimate of
      anticipated experience under the plan.

      (4) For purposes of this section, if - 
        (A) a change in benefits under the Social Security Act [42
      U.S.C. 301 et seq.] or in other retirement benefits created under
      Federal or State law, or
        (B) a change in the definition of the term "wages" under
      section 3121 of title 26, or a change in the amount of such wages
      taken into account under regulations prescribed for purposes of
      section 401(a)(5) of title 26,

    results in an increase or decrease in accrued liability under a
    plan, such increase or decrease shall be treated as an experience
    loss or gain.
      (5)(A) In general. - If the funding method for a plan is changed,
    the new funding method shall become the funding method used to
    determine costs and liabilities under the plan only if the change
    is approved by the Secretary of the Treasury. If the plan year for
    a plan is changed, the new plan year shall become the plan year for
    the plan only if the change is approved by the Secretary of the
    Treasury.
      (B) Approval required for certain changes in assumptions by
    certain single-employer plans subject to additional funding
    requirement. - 
        (i) In general. - No actuarial assumption (other than the
      assumptions described in subsection (d)(7)(C) of this section)
      used to determine the current liability for a plan to which this
      subparagraph applies may be changed without the approval of the
      Secretary of the Treasury.
        (ii) Plans to which subparagraph applies. - This subparagraph
      shall apply to a plan only if - 
          (I) the plan is a defined benefit plan (other than a
        multiemployer plan) to which subchapter III of this chapter
        applies;
          (II) the aggregate unfunded vested benefits as of the close
        of the preceding plan year (as determined under section
        1306(a)(3)(E)(iii) of this title) of such plan and all other
        plans maintained by the contributing sponsors (as defined in
        section 1301(a)(13) of this title) and members of such
        sponsors' controlled groups (as defined in section 1301(a)(14)
        of this title) which are covered by subchapter III of this
        chapter (disregarding plans with no unfunded vested benefits)
        exceed $50,000,000; and
          (III) the change in assumptions (determined after taking into
        account any changes in interest rate and mortality table)
        results in a decrease in the unfunded current liability of the
        plan for the current plan year that exceeds $50,000,000, or
        that exceeds $5,000,000 and that is 5 percent or more of the
        current liability of the plan before such change.

      (6) If, as of the close of a plan year, a plan would (without
    regard to this paragraph) have an accumulated funding deficiency
    (determined without regard to the alternative minimum funding
    standard account permitted under section 1085 of this title) in
    excess of the full funding limitation - 
        (A) the funding standard account shall be credited with the
      amount of such excess, and
        (B) all amounts described in paragraphs (2), (B), (C), and (D)
      and (3)(B) of subsection (b) of this section which are required
      to be amortized shall be considered fully amortized for purposes
      of such paragraphs.

      (7) Full-funding limitation. - 
        (A) In general. - For purposes of paragraph (6), the term "full-
      funding limitation" means the excess (if any) of - 
          (i) the lesser of (I) in the case of plan years beginning
        before January 1, 2004, the applicable percentage of current
        liability (including the expected increase in current liability
        due to benefits accruing during the plan year), or (II) the
        accrued liability (including normal cost) under the plan
        (determined under the entry age normal funding method if such
        accrued liability cannot be directly calculated under the
        funding method used for the plan), over
          (ii) the lesser of - 
            (I) the fair market value of the plan's assets, or
            (II) the value of such assets determined under paragraph
          (2).

        (B) Current liability. - For purposes of subparagraph (D) and
      subclause (I) of subparagraph (A)(i), the term "current
      liability" has the meaning given such term by subsection (d)(7)
      of this section (without regard to subparagraphs (C) and (D)
      thereof) and using the rate of interest used under subsection
      (b)(5)(B) of this section.
        (C) Special rule for paragraph (6)(b). - For purposes of
      paragraph (6)(B), subparagraph (A)(i) shall be applied without
      regard to subclause (I) thereof.
        (D) Regulatory authority. - The Secretary of the Treasury may
      by regulations provide - 
          (i) for adjustments to the percentage contained in
        subparagraph (A)(i) to take into account the respective ages or
        lengths of service of the participants, and
          (ii) alternative methods based on factors other than current
        liability for the determination of the amount taken into
        account under subparagraph (A)(i).

        (E) Minimum amount. - 
          (i) In general. - In no event shall the full-funding
        limitation determined under subparagraph (A) be less than the
        excess (if any) of - 
            (I) 90 percent of the current liability of the plan
          (including the expected increase in current liability due to
          benefits accruing during the plan year), over
            (II) the value of the plan's assets determined under
          paragraph (2).

          (ii) Current liability; assets. - For purposes of clause (i) -
         
            (I) the term "current liability" has the meaning given such
          term by subsection (d)(7) of this section (without regard to
          subparagraph (D) thereof), and
            (II) assets shall not be reduced by any credit balance in
          the funding standard account.

        (F) Applicable percentage. - For purposes of subparagraph
      (A)(i)(I), the applicable percentage shall be determined in
      accordance with the following table:

    In the case of any plan year                        The applicable
     beginning in calendar year -                     percentage is - 
      2002                                                       165  
      2003                                                        170.

      (8) For purposes of this part, any amendment applying to a plan
    year which - 
        (A) is adopted after the close of such plan year but no later
      than 2 1/2  months after the close of the plan year (or, in the
      case of a multiemployer plan, no later than 2 years after the
      close of such plan year),
        (B) does not reduce the accrued benefit of any participant
      determined as of the beginning of the first plan year to which
      the amendment applies, and
        (C) does not reduce the accrued benefit of any participant
      determined as of the time of adoption except to the extent
      required by the circumstances,

    shall, at the election of the plan administrator, be deemed to have
    been made on the first day of such plan year. No amendment
    described in this paragraph which reduces the accrued benefits of
    any participant shall take effect unless the plan administrator
    files a notice with the Secretary notifying him of such amendment
    and the Secretary has approved such amendment or, within 90 days
    after the date on which such notice was filed, failed to disapprove
    such amendment. No amendment described in this subsection shall be
    approved by the Secretary unless he determines that such amendment
    is necessary because of a substantial business hardship (as
    determined under section 1083(b) of this title) and that waiver
    under section 1083(a) of this title is unavailable or inadequate.
      (9)(A) For purposes of this part, a determination of experience
    gains and losses and a valuation of the plan's liability shall be
    made not less frequently than once every year, except that such
    determination shall be made more frequently to the extent required
    in particular cases under regulations prescribed by the Secretary
    of the Treasury.
      (B)(i) Except as provided in clause (ii), the valuation referred
    to in subparagraph (A) shall be made as of a date within the plan
    year to which the valuation refers or within one month prior to the
    beginning of such year.
      (ii) The valuation referred to in subparagraph (A) may be made as
    of a date within the plan year prior to the year to which the
    valuation refers if, as of such date, the value of the assets of
    the plan are not less than 100 percent of the plan's current
    liability (as defined in paragraph (7)(B)).
      (iii) Information under clause (ii) shall, in accordance with
    regulations, be actuarially adjusted to reflect significant
    differences in participants.
      (iv) A change in funding method to use a prior year valuation, as
    provided in clause (ii), may not be made unless as of the valuation
    date within the prior plan year, the value of the assets of the
    plan are not less than 125 percent of the plan's current liability
    (as defined in paragraph (7)(B)).
      (10) For purposes of this section - 
        (A) In the case of a defined benefit plan other than a
      multiemployer plan, any contributions for a plan year made by an
      employer during the period - 
          (i) beginning on the day after the last day of such plan
        year, and
          (ii) ending on the date which is 8 1/2  months after the
        close of the plan year,

      shall be deemed to have been made on such last day.
        (B) In the case of a plan not described in subparagraph (A),
      any contributions for a plan year made by an employer after the
      last day of such plan year, but not later than two and one-half
      months after such day, shall be deemed to have been made on such
      last day. For purposes of this subparagraph, such two and one-
      half month period may be extended for not more than six months
      under regulations prescribed by the Secretary of the Treasury.

      (11) Liability for contributions. - 
        (A) In general. - Except as provided in subparagraph (B), the
      amount of any contribution required by this section and any
      required installments under subsection (e) of this section shall
      be paid by the employer responsible for contributing to or under
      the plan the amount described in subsection (b)(3)(A) of this
      section.
        (B) Joint and several liability where employer member of
      controlled group. - 
          (i) In general. - In the case of a plan other than a
        multiemployer plan, if the employer referred to in subparagraph
        (A) is a member of a controlled group, each member of such
        group shall be jointly and severally liable for payment of such
        contribution or required installment.
          (ii) Controlled group. - For purposes of clause (i), the term
        "controlled group" means any group treated as a single employer
        under subsection (b), (c), (m), or (o) of section 414 of title
        26.

      (12) Anticipation of benefit increases effective in the future. -
    In determining projected benefits, the funding method of a
    collectively bargained plan described in section 413(a) of title 26
    (other than a multiemployer plan) shall anticipate benefit
    increases scheduled to take effect during the term of the
    collective bargaining agreement applicable to the plan.
    (d) Additional funding requirements for plans which are not
      multiemployer plans
      (1) In general
        In the case of a defined benefit plan (other than a
      multiemployer plan) to which this subsection applies under
      paragraph (9) for any plan year, the amount charged to the
      funding standard account for such plan year shall be increased by
      the sum of - 
          (A) the excess (if any) of - 
            (i) the deficit reduction contribution determined under
          paragraph (2) for such plan year, over
            (ii) the sum of the charges for such plan year under
          subsection (b)(2) of this section, reduced by the sum of the
          credits for such plan year under subparagraph (B) of
          subsection (b)(3) of this section, plus

          (B) the unpredictable contingent event amount (if any) for
        such plan year.

      Such increase shall not exceed the amount which, after taking
      into account charges (other than the additional charge under this
      subsection) and credits under subsection (b) of this section, is
      necessary to increase the funded current liability percentage
      (taking into account the expected increase in current liability
      due to benefits accruing during the plan year) to 100 percent.
      (2) Deficit reduction contribution
        For purposes of paragraph (1), the deficit reduction
      contribution determined under this paragraph for any plan year is
      the sum of - 
          (A) the unfunded old liability amount,
          (B) the unfunded new liability amount,
          (C) the expected increase in current liability due to
        benefits accruing during the plan year, and
          (D) the aggregate of the unfunded mortality increase amounts.
      (3) Unfunded old liability amount
        For purposes of this subsection - 
        (A) In general
          The unfunded old liability amount with respect to any plan
        for any plan year is the amount necessary to amortize the
        unfunded old liability under the plan in equal annual
        installments over a period of 18 plan years (beginning with the
        1st plan year beginning after December 31, 1988).
        (B) Unfunded old liability
          The term "unfunded old liability" means the unfunded current
        liability of the plan as of the beginning of the 1st plan year
        beginning after December 31, 1987 (determined without regard to
        any plan amendment increasing liabilities adopted after October
        16, 1987).
        (C) Special rules for benefit increases under existing
          collective bargaining agreements
          (i) In general
            In the case of a plan maintained pursuant to 1 or more
          collective bargaining agreements between employee
          representatives and the employer ratified before October 29,
          1987, the unfunded old liability amount with respect to such
          plan for any plan year shall be increased by the amount
          necessary to amortize the unfunded existing benefit increase
          liability in equal annual installments over a period of 18
          plan years beginning with - 
              (I) the plan year in which the benefit increase with
            respect to such liability occurs, or
              (II) if the taxpayer elects, the 1st plan year beginning
            after December 31, 1988.
          (ii) Unfunded existing benefit increase liabilities
            For purposes of clause (i), the unfunded existing benefit
          increase liability means, with respect to any benefit
          increase under the agreements described in clause (i) which
          takes effect during or after the 1st plan year beginning
          after December 31, 1987, the unfunded current liability
          determined - 
              (I) by taking into account only liabilities attributable
            to such benefit increase, and
              (II) by reducing (but not below zero) the amount
            determined under paragraph (8)(A)(ii) by the current
            liability determined without regard to such benefit
            increase.
          (iii) Extensions, modifications, etc. not taken into account
            For purposes of this subparagraph, any extension,
          amendment, or other modification of an agreement after
          October 28, 1987, shall not be taken into account.
        (D) Special rule for required changes in actuarial assumptions
          (i) In general
            The unfunded old liability amount with respect to any plan
          for any plan year shall be increased by the amount necessary
          to amortize the amount of additional unfunded old liability
          under the plan in equal annual installments over a period of
          12 plan years (beginning with the first plan year beginning
          after December 31, 1994).
          (ii) Additional unfunded old liability
            For purposes of clause (i), the term "additional unfunded
          old liability" means the amount (if any) by which - 
              (I) the current liability of the plan as of the beginning
            of the first plan year beginning after December 31, 1994,
            valued using the assumptions required by paragraph (7)(C)
            as in effect for plan years beginning after December 31,
            1994, exceeds
              (II) the current liability of the plan as of the
            beginning of such first plan year, valued using the same
            assumptions used under subclause (I) (other than the
            assumptions required by paragraph (7)(C)), using the prior
            interest rate, and using such mortality assumptions as were
            used to determine current liability for the first plan year
            beginning after December 31, 1992.
          (iii) Prior interest rate
            For purposes of clause (ii), the term "prior interest rate"
          means the rate of interest that is the same percentage of the
          weighted average under subsection (b)(5)(B)(ii)(I) of this
          section for the first plan year beginning after December 31,
          1994, as the rate of interest used by the plan to determine
          current liability for the first plan year beginning after
          December 31, 1992, is of the weighted average under
          subsection (b)(5)(B)(ii)(I) of this section for such first
          plan year beginning after December 31, 1992.
        (E) Optional rule for additional unfunded old liability
          (i) In general
            If an employer makes an election under clause (ii), the
          additional unfunded old liability for purposes of
          subparagraph (D) shall be the amount (if any) by which - 
              (I) the unfunded current liability of the plan as of the
            beginning of the first plan year beginning after December
            31, 1994, valued using the assumptions required by
            paragraph (7)(C) as in effect for plan years beginning
            after December 31, 1994, exceeds
              (II) the unamortized portion of the unfunded old
            liability under the plan as of the beginning of the first
            plan year beginning after December 31, 1994.
          (ii) Election
            (I) An employer may irrevocably elect to apply the
          provisions of this subparagraph as of the beginning of the
          first plan year beginning after December 31, 1994.
            (II) If an election is made under this clause, the increase
          under paragraph (1) for any plan year beginning after
          December 31, 1994, and before January 1, 2002, to which this
          subsection applies (without regard to this subclause) shall
          not be less than the increase that would be required under
          paragraph (1) if the provisions of this subchapter as in
          effect for the last plan year beginning before January 1,
          1995, had remained in effect.
      (4) Unfunded new liability amount
        For purposes of this subsection - 
        (A) In general
          The unfunded new liability amount with respect to any plan
        for any plan year is the applicable percentage of the unfunded
        new liability.
        (B) Unfunded new liability
          The term "unfunded new liability" means the unfunded current
        liability of the plan for the plan year determined without
        regard to - 
            (i) the unamortized portion of the unfunded old liability,
          the unamortized portion of the additional unfunded old
          liability, the unamortized portion of each unfunded mortality
          increase, and the unamortized portion of the unfunded
          existing benefit increase liability, and
            (ii) the liability with respect to any unpredictable
          contingent event benefits (without regard to whether the
          event has occurred).
        (C) Applicable percentage
          The term "applicable percentage" means, with respect to any
        plan year, 30 percent, reduced by the product of - 
            (i) .40 multiplied by
            (ii) the number of percentage points (if any) by which the
          funded current liability percentage exceeds 60 percent.
      (5) Unpredictable contingent event amount
        (A) In general
          The unpredictable contingent event amount with respect to a
        plan for any plan year is an amount equal to the greatest of - 
            (i) the applicable percentage of the product of - 
              (I) 100 percent, reduced (but not below zero) by the
            funded current liability percentage for the plan year,
            multiplied by
              (II) the amount of unpredictable contingent event
            benefits paid during the plan year, including (except as
            provided by the Secretary of the Treasury) any payment for
            the purchase of an annuity contract for a participant or
            beneficiary with respect to such benefits,

            (ii) the amount which would be determined for the plan year
          if the unpredictable contingent event benefit liabilities
          were amortized in equal annual installments over 7 plan years
          (beginning with the plan year in which such event occurs), or
            (iii) the additional amount that would be determined under
          paragraph (4)(A) if the unpredictable contingent event
          benefit liabilities were included in unfunded new liability
          notwithstanding paragraph (4)(B)(ii).
        (B) Applicable percentage
    In the case of plan years                             The applicable
    beginning in:                                         percentage is:
      1989 and 1990                                                 5 
      1991                                                         10 
      1992                                                         15 
      1993                                                         20 
      1994                                                         30 
      1995                                                         40 
      1996                                                         50 
      1997                                                         60 
      1998                                                         70 
      1999                                                         80 
      2000                                                         90 
      2001 and thereafter                                       100.  
        (C) Paragraph not to apply to existing benefits
          This paragraph shall not apply to unpredictable contingent
        event benefits (and liabilities attributable thereto) for which
        the event occurred before the first plan year beginning after
        December 31, 1988.
        (D) Special rule for first year of amortization
          Unless the employer elects otherwise, the amount determined
        under subparagraph (A) for the plan year in which the event
        occurs shall be equal to 150 percent of the amount determined
        under subparagraph (A)(i). The amount under subparagraph
        (A)(ii) for subsequent plan years in the amortization period
        shall be adjusted in the manner provided by the Secretary of
        the Treasury to reflect the application of this subparagraph.
        (E) Limitation
          The present value of the amounts described in subparagraph
        (A) with respect to any one event shall not exceed the
        unpredictable contingent event benefit liabilities attributable
        to that event.
      (6) Special rules for small plans
        (A) Plans with 100 or fewer participants
          This subsection shall not apply to any plan for any plan year
        if on each day during the preceding plan year such plan had no
        more than 100 participants.
        (B) Plans with more than 100 but not more than 150 participants
          In the case of a plan to which subparagraph (A) does not
        apply and which on each day during the preceding plan year had
        no more than 150 participants, the amount of the increase under
        paragraph (1) for such plan year shall be equal to the product
        of - 
            (i) such increase determined without regard to this
          subparagraph, multiplied by
            (ii) 2 percent for the highest number of participants in
          excess of 100 on any such day.
        (C) Aggregation of plans
          For purposes of this paragraph, all defined benefit plans
        maintained by the same employer (or any member of such
        employer's controlled group) shall be treated as 1 plan, but
        only employees of such employer or member shall be taken into
        account.
      (7) Current liability
        For purposes of this subsection - 
        (A) In general
          The term "current liability" means all liabilities to
        participants and their beneficiaries under the plan.
        (B) Treatment of unpredictable contingent event benefits
          (i) In general
            For purposes of subparagraph (A), any unpredictable
          contingent event benefit shall not be taken into account
          until the event on which the benefit is contingent occurs.
          (ii) Unpredictable contingent event benefit
            The term "unpredictable contingent event benefit" means any
          benefit contingent on an event other than - 
              (I) age, service, compensation, death, or disability, or
              (II) an event which is reasonably and reliably
            predictable (as determined by the Secretary of the
            Treasury).
        (C) Interest rate and mortality assumptions used
          Effective for plan years beginning after December 31, 1994 - 
          (i) Interest rate
            (I) In general
              The rate of interest used to determine current liability
            under this subsection shall be the rate of interest used
            under subsection (b)(5) of this section, except that the
            highest rate in the permissible range under subparagraph
            (B)(ii) thereof shall not exceed the specified percentage
            under subclause (II) of the weighted average referred to in
            such subparagraph.
            (II) Specified percentage
              For purposes of subclause (I), the specified percentage
            shall be determined as follows:

      In the case of                                  
      plan years beginning                             The specified
      in calendar year:                               percentage is:
       1995                                                      109  
       1996                                                      108  
       1997                                                      107  
       1998                                                      106  
       1999 and thereafter                                        105.
            (III) Special rule for 2002 and 2003
              For a plan year beginning in 2002 or 2003,
            notwithstanding subclause (I), in the case that the rate of
            interest used under subsection (b)(5) of this section
            exceeds the highest rate permitted under subclause (I), the
            rate of interest used to determine current liability under
            this subsection may exceed the rate of interest otherwise
            permitted under subclause (I); except that such rate of
            interest shall not exceed 120 percent of the weighted
            average referred to in subsection (b)(5)(B)(ii) of this
            section.
            (IV) Special rule for 2004, 2005, 2006, and 2007
              For plan years beginning in 2004, 2005, 2006, or 2007,
            notwithstanding subclause (I), the rate of interest used to
            determine current liability under this subsection shall be
            the rate of interest under subsection (b)(5) of this
            section.
          (ii) Mortality tables
            (I) Commissioners' standard table
              In the case of plan years beginning before the first plan
            year to which the first tables prescribed under subclause
            (II) apply, the mortality table used in determining current
            liability under this subsection shall be the table
            prescribed by the Secretary of the Treasury which is based
            on the prevailing commissioners' standard table (described
            in section 807(d)(5)(A) of title 26) used to determine
            reserves for group annuity contracts issued on January 1,
            1993.
            (II) Secretarial authority
              The Secretary of the Treasury may by regulation prescribe
            for plan years beginning after December 31, 1999, mortality
            tables to be used in determining current liability under
            this subsection. Such tables shall be based upon the actual
            experience of pension plans and projected trends in such
            experience. In prescribing such tables, the Secretary of
            the Treasury shall take into account results of available
            independent studies of mortality of individuals covered by
            pension plans.
            (III) Periodic review
              The Secretary of the Treasury shall periodically (at
            least every 5 years) review any tables in effect under this
            subsection and shall, to the extent the Secretary
            determines necessary, by regulation update the tables to
            reflect the actual experience of pension plans and
            projected trends in such experience.
          (iii) Separate mortality tables for the disabled
            Notwithstanding clause (ii) - 
            (I) In general
              In the case of plan years beginning after December 31,
            1995, the Secretary of the Treasury shall establish
            mortality tables which may be used (in lieu of the tables
            under clause (ii)) to determine current liability under
            this subsection for individuals who are entitled to
            benefits under the plan on account of disability. Such
            Secretary shall establish separate tables for individuals
            whose disabilities occur in plan years beginning before
            January 1, 1995, and for individuals whose disabilities
            occur in plan years beginning on or after such date.
            (II) Special rule for disabilities occurring after 1994
              In the case of disabilities occurring in plan years
            beginning after December 31, 1994, the tables under
            subclause (I) shall apply only with respect to individuals
            described in such subclause who are disabled within the
            meaning of title II of the Social Security Act [42 U.S.C.
            401 et seq.] and the regulations thereunder.
            (III) Plan years beginning in 1995
              In the case of any plan year beginning in 1995, a plan
            may use its own mortality assumptions for individuals who
            are entitled to benefits under the plan on account of
            disability.
        (D) Certain service disregarded
          (i) In general
            In the case of a participant to whom this subparagraph
          applies, only the applicable percentage of the years of
          service before such individual became a participant shall be
          taken into account in computing the current liability of the
          plan.
          (ii) Applicable percentage
            For purposes of this subparagraph, the applicable
          percentage shall be determined as follows:

       If the years of                                  The applicable
        participation are:                              percentage is:
         1                                                        20  
         2                                                        40  
         3                                                        60  
         4                                                        80  
         5 or more                                             100.   
          (iii) Participants to whom subparagraph applies
            This subparagraph shall apply to any participant who, at
          the time of becoming a participant - 
              (I) has not accrued any other benefit under any defined
            benefit plan (whether or not terminated) maintained by the
            employer or a member of the same controlled group of which
            the employer is a member,
              (II) who first becomes a participant under the plan in a
            plan year beginning after December 31, 1987, and
              (III) has years of service greater than the minimum years
            of service necessary for eligibility to participate in the
            plan.
          (iv) Election
            An employer may elect not to have this subparagraph apply.
          Such an election, once made, may be revoked only with the
          consent of the Secretary of the Treasury.
      (8) Other definitions
        For purposes of this subsection - 
        (A) Unfunded current liability
          The term "unfunded current liability" means, with respect to
        any plan year, the excess (if any) of - 
            (i) the current liability under the plan, over
            (ii) value of the plan's assets determined under subsection
          (c)(2) of this section.
        (B) Funded current liability percentage
          The term "funded current liability percentage" means, with
        respect to any plan year, the percentage which - 
            (i) the amount determined under subparagraph (A)(ii), is of
            (ii) the current liability under the plan.
        (C) Controlled group
          The term "controlled group" means any group treated as a
        single employer under subsections (b), (c), (m), and (o) of
        section 414 of title 26.
        (D) Adjustments to prevent omissions and duplications
          The Secretary of the Treasury shall provide such adjustments
        in the unfunded old liability amount, the unfunded new
        liability amount, the unpredictable contingent event amount,
        the current payment amount, and any other charges or credits
        under this section as are necessary to avoid duplication or
        omission of any factors in the determination of such amounts,
        charges, or credits.
        (E) Deduction for credit balances
          For purposes of this subsection, the amount determined under
        subparagraph (A)(ii) shall be reduced by any credit balance in
        the funding standard account. The Secretary of the Treasury may
        provide for such reduction for purposes of any other provision
        which references this subsection.
      (9) Applicability of subsection
        (A) In general
          Except as provided in paragraph (6)(A), this subsection shall
        apply to a plan for any plan year if its funded current
        liability percentage for such year is less than 90 percent.
        (B) Exception for certain plans at least 80 percent funded
          Subparagraph (A) shall not apply to a plan for a plan year if
        - 
            (i) the funded current liability percentage for the plan
          year is at least 80 percent, and
            (ii) such percentage for each of the 2 immediately
          preceding plan years (or each of the 2d and 3d immediately
          preceding plan years) is at least 90 percent.
        (C) Funded current liability percentage
          For purposes of subparagraphs (A) and (B), the term "funded
        current liability percentage" has the meaning given such term
        by paragraph (8)(B), except that such percentage shall be
        determined for any plan year - 
            (i) without regard to paragraph (8)(E), and
            (ii) by using the rate of interest which is the highest
          rate allowable for the plan year under paragraph (7)(C).
        (D) Transition rules
          For purposes of this paragraph:
          (i) Funded percentage for years before 1995
            The funded current liability percentage for any plan year
          beginning before January 1, 1995, shall be treated as not
          less than 90 percent only if for such plan year the plan met
          one of the following requirements (as in effect for such
          year):
              (I) The full-funding limitation under subsection (c)(7)
            of this section for the plan was zero.
              (II) The plan had no additional funding requirement under
            this subsection (or would have had no such requirement if
            its funded current liability percentage had been determined
            under subparagraph (C)).
              (III) The plan's additional funding requirement under
            this subsection did not exceed the lesser of 0.5 percent of
            current liability or $5,000,000.
          (ii) Special rule for 1995 and 1996
            For purposes of determining whether subparagraph (B)
          applies to any plan year beginning in 1995 or 1996, a plan
          shall be treated as meeting the requirements of subparagraph
          (B)(ii) if the plan met the requirements of clause (i) of
          this subparagraph for any two of the plan years beginning in
          1992, 1993, and 1994 (whether or not consecutive).
      (10) Unfunded mortality increase amount
        (A) In general
          The unfunded mortality increase amount with respect to each
        unfunded mortality increase is the amount necessary to amortize
        such increase in equal annual installments over a period of 10
        plan years (beginning with the first plan year for which a plan
        uses any new mortality table issued under paragraph
        (7)(C)(ii)(II) or (III)).
        (B) Unfunded mortality increase
          For purposes of subparagraph (A), the term "unfunded
        mortality increase" means an amount equal to the excess of - 
            (i) the current liability of the plan for the first plan
          year for which a plan uses any new mortality table issued
          under paragraph (7)(C)(ii)(II) or (III), over
            (ii) the current liability of the plan for such plan year
          which would have been determined if the mortality table in
          effect for the preceding plan year had been used.
      (11) Phase-in of increases in funding required by Retirement
        Protection Act of 1994
        (A) In general
          For any applicable plan year, at the election of the
        employer, the increase under paragraph (1) shall not exceed the
        greater of - 
            (i) the increase that would be required under paragraph (1)
          if the provisions of this subchapter as in effect for plan
          years beginning before January 1, 1995, had remained in
          effect, or
            (ii) the amount which, after taking into account charges
          (other than the additional charge under this subsection) and
          credits under subsection (b) of this section, is necessary to
          increase the funded current liability percentage (taking into
          account the expected increase in current liability due to
          benefits accruing during the plan year) for the applicable
          plan year to a percentage equal to the sum of the initial
          funded current liability percentage of the plan plus the
          applicable number of percentage points for such applicable
          plan year.
        (B) Applicable number of percentage points
          (i) Initial funded current liability percentage of 75 percent
            or less
            Except as provided in clause (ii), for plans with an
          initial funded current liability percentage of 75 percent or
          less, the applicable number of percentage points for the
          applicable plan year is:

        In the case                                     The applicable
         of applicable                                     number of
         plan years                                       percentage
         beginning in:                                    points is:
        1995                                                       3  
        1996                                                       6  
        1997                                                       9  
        1998                                                      12  
        1999                                                      15  
        2000                                                      19  
        2001                                                       24.
          (ii) Other cases
            In the case of a plan to which this clause applies, the
          applicable number of percentage points for any such
          applicable plan year is the sum of - 
              (I) 2 percentage points;
              (II) the applicable number of percentage points (if any)
            under this clause for the preceding applicable plan year;
              (III) the product of .10 multiplied by the excess (if
            any) of (a) 85 percentage points over (b) the sum of the
            initial funded current liability percentage and the number
            determined under subclause (II);
              (IV) for applicable plan years beginning in 2000, 1
            percentage point; and
              (V) for applicable plan years beginning in 2001, 2
            percentage points.
          (iii) Plans to which clause (ii) applies
            (I) In general
              Clause (ii) shall apply to a plan for an applicable plan
            year if the initial funded current liability percentage of
            such plan is more than 75 percent.
            (II) Plans initially under clause (i)
              In the case of a plan which (but for this subclause) has
            an initial funded current liability percentage of 75
            percent or less, clause (ii) (and not clause (i)) shall
            apply to such plan with respect to applicable plan years
            beginning after the first applicable plan year for which
            the sum of the initial funded current liability percentage
            and the applicable number of percentage points (determined
            under clause (i)) exceeds 75 percent. For purposes of
            applying clause (ii) to such a plan, the initial funded
            current liability percentage of such plan shall be treated
            as being the sum referred to in the preceding sentence.
        (C) Definitions
          For purposes of this paragraph - 
            (i) The term "applicable plan year" means a plan year
          beginning after December 31, 1994, and before January 1,
          2002.
            (ii) The term "initial funded current liability percentage"
          means the funded current liability percentage as of the first
          day of the first plan year beginning after December 31, 1994.
      (12) Election for certain plans
        (A) In general
          In the case of a defined benefit plan established and
        maintained by an applicable employer, if this subsection did
        not apply to the plan for the plan year beginning in 2000
        (determined without regard to paragraph (6)), then, at the
        election of the employer, the increased amount under paragraph
        (1) for any applicable plan year shall be the greater of - 
            (i) 20 percent of the increased amount under paragraph (1)
          determined without regard to this paragraph, or
            (ii) the increased amount which would be determined under
          paragraph (1) if the deficit reduction contribution under
          paragraph (2) for the applicable plan year were determined
          without regard to subparagraphs (A), (B), and (D) of
          paragraph (2).
        (B) Restrictions on benefit increases
          No amendment which increases the liabilities of the plan by
        reason of any increase in benefits, any change in the accrual
        of benefits, or any change in the rate at which benefits become
        nonforfeitable under the plan shall be adopted during any
        applicable plan year, unless - 
            (i) the plan's enrolled actuary certifies (in such form and
          manner prescribed by the Secretary of the Treasury) that the
          amendment provides for an increase in annual contributions
          which will exceed the increase in annual charges to the
          funding standard account attributable to such amendment, or
            (ii) the amendment is required by a collective bargaining
          agreement which is in effect on April 10, 2004.

        If a plan is amended during any applicable plan year in
        violation of the preceding sentence, any election under this
        paragraph shall not apply to any applicable plan year ending on
        or after the date on which such amendment is adopted.
        (C) Applicable employer
          For purposes of this paragraph, the term "applicable
        employer" means an employer which is - 
            (i) a commercial passenger airline,
            (ii) primarily engaged in the production or manufacture of
          a steel mill product or the processing of iron ore pellets,
          or
            (iii) an organization described in section 501(c)(5) of
          title 26 and which established the plan to which this
          paragraph applies on June 30, 1955.
        (D) Applicable plan year
          For purposes of this paragraph - 
          (i) In general
            The term "applicable plan year" means any plan year
          beginning after December 27, 2003, and before December 28,
          2005, for which the employer elects the application of this
          paragraph.
          (ii) Limitation on number of years which may be elected
            An election may not be made under this paragraph with
          respect to more than 2 plan years.
        (E) Notice requirements for plans electing alternative deficit
          reduction contributions
          (i) In general
            If an employer elects an alternative deficit reduction
          contribution under this paragraph and section 412(l)(12) of
          title 26 for any year, the employer shall provide, within 30
          days of filing the election for such year, written notice of
          the election to participants and beneficiaries and to the
          Pension Benefit Guaranty Corporation.
          (ii) Notice to participants and beneficiaries
            The notice under clause (i) to participants and
          beneficiaries shall include with respect to any election - 
              (I) the due date of the alternative deficit reduction
            contribution and the amount by which such contribution was
            reduced from the amount which would have been owed if the
            election were not made, and
              (II) a description of the benefits under the plan which
            are eligible to be guaranteed by the Pension Benefit
            Guaranty Corporation and an explanation of the limitations
            on the guarantee and the circumstances under which such
            limitations apply, including the maximum guaranteed monthly
            benefits which the Pension Benefit Guaranty Corporation
            would pay if the plan terminated while underfunded.
          (iii) Notice to PBGC
            The notice under clause (i) to the Pension Benefit Guaranty
          Corporation shall include - 
              (I) the information described in clause (ii)(I),
              (II) the number of years it will take to restore the plan
            to full funding if the employer only makes the required
            contributions, and
              (III) information as to how the amount by which the plan
            is underfunded compares with the capitalization of the
            employer making the election.
        (F) Election
          An election under this paragraph shall be made at such time
        and in such manner as the Secretary of the Treasury may
        prescribe.
    (e) Quarterly contributions required
      (1) In general
        If a defined benefit plan (other than a multiemployer plan)
      which has a funded current liability percentage (as defined in
      subsection (d)(8) of this section) for the preceding plan year of
      less than 100 percent fails to pay the full amount of a required
      installment for the plan year, then the rate of interest charged
      to the funding standard account under subsection (b)(5) of this
      section with respect to the amount of the underpayment for the
      period of the underpayment shall be equal to the greater of - 
          (A) 175 percent of the Federal mid-term rate (as in effect
        under section 1274 of title 26 for the 1st month of such plan
        year), or
          (B) the rate of interest used under the plan in determining
        costs (including adjustments under subsection (b)(5)(B) of this
        section).
      (2) Amount of underpayment, period of underpayment
        For purposes of paragraph (1) - 
        (A) Amount
          The amount of the underpayment shall be the excess of - 
            (i) the required installment, over
            (ii) the amount (if any) of the installment contributed to
          or under the plan on or before the due date for the
          installment.
        (B) Period of underpayment
          The period for which any interest is charged under this
        subsection with respect to any portion of the underpayment
        shall run from the due date for the installment to the date on
        which such portion is contributed to or under the plan
        (determined without regard to subsection (c)(10) of this
        section).
        (C) Order of crediting contributions
          For purposes of subparagraph (A)(ii), contributions shall be
        credited against unpaid required installments in the order in
        which such installments are required to be paid.
      (3) Number of required installments; due dates
        For purposes of this subsection - 
        (A) Payable in 4 installments
          There shall be 4 required installments for each plan year.
        (B) Time for payment of installments


        In the case of the following                                    
        required installments:                      The due date is:    
        1st                                         April 15            
        2nd                                         July 15             
        3rd                                         October 15          
        4th                                         January 15 of the   
                                                     following year.    
    --------------------------------------------------------------------

      (4) Amount of required installment
        For purposes of this subsection - 
        (A) In general
          The amount of any required installment shall be the
        applicable percentage of the required annual payment.
        (B) Required annual payment
          For purposes of subparagraph (A), the term "required annual
        payment" means the lesser of - 
            (i) 90 percent of the amount required to be contributed to
          or under the plan by the employer for the plan year under
          section 412 of title 26 (without regard to any waiver under
          subsection (d) thereof), or
            (ii) 100 percent of the amount so required for the
          preceding plan year.

        Clause (ii) shall not apply if the preceding plan year was not
        a year of 12 months.
        (C) Applicable percentage
          For purposes of subparagraph (A), the applicable percentage
        shall be determined in accordance with the following table:

      For plan years                                    The applicable
       beginning in:                                    percentage is:
        1989                                                    6.25  
        1990                                                   12.5   
        1991                                                   18.75  
        1992 and thereafter                                     25.   
        (D) Special rules for unpredictable contingent event benefits
          In the case of a plan to which subsection (d) of this section
        applies for any calendar year and which has any unpredictable
        contingent event benefit liabilities - 
          (i) Liabilities not taken into account
            Such liabilities shall not be taken into account in
          computing the required annual payment under subparagraph (B).
          (ii) Increase in installments
            Each required installment shall be increased by the
          greatest of - 
              (I) the unfunded percentage of the amount of benefits
            described in subsection (d)(5)(A)(i) of this section paid
            during the 3-month period preceding the month in which the
            due date for such installment occurs,
              (II) 25 percent of the amount determined under subsection
            (d)(5)(A)(ii) of this section for the plan year, or
              (III) 25 percent of the amount determined under
            subsection (d)(5)(A)(iii) of this section for the plan
            year.
          (iii) Unfunded percentage
            For purposes of clause (ii)(I), the term "unfunded
          percentage" means the percentage determined under subsection
          (d)(5)(A)(i)(I) of this section for the plan year.
          (iv) Limitation on increase
            In no event shall the increases under clause (ii) exceed
          the amount necessary to increase the funded current liability
          percentage (within the meaning of subsection (d)(8)(B) of
          this section) for the plan year to 100 percent.
      (5) Liquidity requirement
        (A) In general
          A plan to which this paragraph applies shall be treated as
        failing to pay the full amount of any required installment to
        the extent that the value of the liquid assets paid in such
        installment is less than the liquidity shortfall (whether or
        not such liquidity shortfall exceeds the amount of such
        installment required to be paid but for this paragraph).
        (B) Plans to which paragraph applies
          This paragraph shall apply to a defined benefit plan (other
        than a multiemployer plan or a plan described in subsection
        (d)(6)(A) of this section) which - 
            (i) is required to pay installments under this subsection
          for a plan year, and
            (ii) has a liquidity shortfall for any quarter during such
          plan year.
        (C) Period of underpayment
          For purposes of paragraph (1), any portion of an installment
        that is treated as not paid under subparagraph (A) shall
        continue to be treated as unpaid until the close of the quarter
        in which the due date for such installment occurs.
        (D) Limitation on increase
          If the amount of any required installment is increased by
        reason of subparagraph (A), in no event shall such increase
        exceed the amount which, when added to prior installments for
        the plan year, is necessary to increase the funded current
        liability percentage (taking into account the expected increase
        in current liability due to benefits accruing during the plan
        year) to 100 percent.
        (E) Definitions
          For purposes of this paragraph - 
          (i) Liquidity shortfall
            The term "liquidity shortfall" means, with respect to any
          required installment, an amount equal to the excess (as of
          the last day of the quarter for which such installment is
          made) of the base amount with respect to such quarter over
          the value (as of such last day) of the plan's liquid assets.
          (ii) Base amount
            (I) In general
              The term "base amount" means, with respect to any
            quarter, an amount equal to 3 times the sum of the adjusted
            disbursements from the plan for the 12 months ending on the
            last day of such quarter.
            (II) Special rule
              If the amount determined under subclause (I) exceeds an
            amount equal to 2 times the sum of the adjusted
            disbursements from the plan for the 36 months ending on the
            last day of the quarter and an enrolled actuary certifies
            to the satisfaction of the Secretary of the Treasury that
            such excess is the result of nonrecurring circumstances,
            the base amount with respect to such quarter shall be
            determined without regard to amounts related to those
            nonrecurring circumstances.
          (iii) Disbursements from the plan
            The term "disbursements from the plan" means all
          disbursements from the trust, including purchases of
          annuities, payments of single sums and other benefits, and
          administrative expenses.
          (iv) Adjusted disbursements
            The term "adjusted disbursements" means disbursements from
          the plan reduced by the product of - 
              (I) the plan's funded current liability percentage (as
            defined in subsection (d)(8) of this section) for the plan
            year, and
              (II) the sum of the purchases of annuities, payments of
            single sums, and such other disbursements as the Secretary
            of the Treasury shall provide in regulations.
          (v) Liquid assets
            The term "liquid assets" means cash, marketable securities
          and such other assets as specified by the Secretary of the
          Treasury in regulations.
          (vi) Quarter
            The term "quarter" means, with respect to any required
          installment, the 3-month period preceding the month in which
          the due date for such installment occurs.
        (F) Regulations
          The Secretary of the Treasury may prescribe such regulations
        as are necessary to carry out this paragraph.
      (6) Fiscal years and short years
        (A) Fiscal years
          In applying this subsection to a plan year beginning on any
        date other than January 1, there shall be substituted for the
        months specified in this subsection, the months which
        correspond thereto.
        (B) Short plan year
          This section shall be applied to plan years of less than 12
        months in accordance with regulations prescribed by the
        Secretary of the Treasury.
      (7) Special rule for 2002
        In any case in which the interest rate used to determine
      current liability is determined under subsection
      (d)(7)(C)(i)(III) of this section, for purposes of applying
      paragraphs (1) and (4)(B)(ii) for plan years beginning in 2002,
      the current liability for the preceding plan year shall be
      redetermined using 120 percent as the specified percentage
      determined under subsection (d)(7)(C)(i)(II) of this section.
    (f) Imposition of lien where failure to make required contributions
      (1) In general
        In the case of a plan covered under section 1321 of this title,
      if - 
          (A) any person fails to make a required installment under
        subsection (e) of this section or any other payment required
        under this section before the due date for such installment or
        other payment, and
          (B) the unpaid balance of such installment or other payment
        (including interest), when added to the aggregate unpaid
        balance of all preceding such installments or other payments
        for which payment was not made before the due date (including
        interest), exceeds $1,000,000,

      then there shall be a lien in favor of the plan in the amount
      determined under paragraph (3) upon all property and rights to
      property, whether real or personal, belonging to such person and
      any other person who is a member of the same controlled group of
      which such person is a member.
      (2) Plans to which subsection applies
        This subsection shall apply to a defined benefit plan (other
      than a multiemployer plan) for any plan year for which the funded
      current liability percentage (within the meaning of subsection
      (d)(8)(B) of this section) of such plan is less than 100 percent.
      (3) Amount of lien
        For purposes of paragraph (1), the amount of the lien shall be
      equal to the aggregate unpaid balance of required installments
      and other payments required under this section (including
      interest) - 
          (A) for plan years beginning after 1987, and
          (B) for which payment has not been made before the due date.
      (4) Notice of failure; lien
        (A) Notice of failure
          A person committing a failure described in paragraph (1)
        shall notify the Pension Benefit Guaranty Corporation of such
        failure within 10 days of the due date for the required
        installment or other payment.
        (B) Period of lien
          The lien imposed by paragraph (1) shall arise on the due date
        for the required installment or other payment and shall
        continue until the last day of the first plan year in which the
        plan ceases to be described in paragraph (1)(B). Such lien
        shall continue to run without regard to whether such plan
        continues to be described in paragraph (2) during the period
        referred to in the preceding sentence.
        (C) Certain rules to apply
          Any amount with respect to which a lien is imposed under
        paragraph (1) shall be treated as taxes due and owing the
        United States and rules similar to the rules of subsections
        (c), (d), and (e) of section 1368 of this title shall apply
        with respect to a lien imposed by subsection (a) of this
        section and the amount with respect to such lien.
      (5) Enforcement
        Any lien created under paragraph (1) may be perfected and
      enforced only by the Pension Benefit Guaranty Corporation, or at
      the direction of the Pension Benefit Guaranty Corporation, by the
      contributing sponsor (or any member of the controlled group of
      the contributing sponsor).
      (6) Definitions
        For purposes of this subsection - 
        (A) Due date; required installment
          The terms "due date" and "required installment" have the
        meanings given such terms by subsection (e) of this section,
        except that in the case of a payment other than a required
        installment, the due date shall be the date such payment is
        required to be made under this section.
        (B) Controlled group
          The term "controlled group" means any group treated as a
        single employer under subsections (b), (c), (m), and (o) of
        section 414 of title 26.
    (g) Qualified transfers to health benefit accounts
      For purposes of this section, in the case of a qualified transfer
    (as defined in section 420 of title 26) - 
        (1) any assets transferred in a plan year on or before the
      valuation date for such year (and any income allocable thereto)
      shall, for purposes of subsection (c)(7) of this section, be
      treated as assets in the plan as of the valuation date for such
      year, and
        (2) the plan shall be treated as having a net experience loss
      under subsection (b)(2)(B)(iv) of this section in an amount equal
      to the amount of such transfer (reduced by any amounts
      transferred back to the plan under section 420(c)(1)(B) of title
      26) and for which amortization charges begin for the first plan
      year after the plan year in which such transfer occurs, except
      that such subsection shall be applied to such amount by
      substituting "10 plan years" for "5 plan years".
    (h) Cross reference
          For alternative amortization method for certain multiemployer
        plans see section 1013(d) of this Act.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 302, Sept. 2, 1974, 88 Stat. 869;
    Pub. L. 96-364, title III, Sec. 304(b), Sept. 26, 1980, 94 Stat.
    1293; Pub. L. 100-203, title IX, Secs. 9301(b), 9303(b), (d)(2),
    9304(a)(2), (b)(2), (e)(2), 9305(b)(2), 9307(a)(2), (b)(2), (e)(2),
    Dec. 22, 1987, 101 Stat. 1330-332, 1330-337, 1330-342, 1330-344,
    1330-346, 1330-349, 1330-352, 1330-356 to 1330-358; Pub. L. 100-
    647, title II, Sec. 2005(a)(2)(B), (d)(2), Nov. 10, 1988, 102
    Stat. 3610, 3612; Pub. L. 101-239, title VII, Secs. 7881(a)(1)(B),
    (2)(B), (3)(B), (4)(B), (5)(B), (6)(B), (b)(1)(B), (2)(B), (3)(B),
    (4)(B), (6)(B)(i), (d)(1)(B), (2), (4), 7891(a)(1), 7892(b),
    7894(d)(2), (5), Dec. 19, 1989, 103 Stat. 2435-2439, 2445, 2447,
    2449, 2450; Pub. L. 101-508, title XII, Sec. 12012(c), Nov. 5,
    1990, 104 Stat. 1388-572; Pub. L. 103-465, title VII, Secs.
    761(a)(1)-(9)(A), (10), 762(a), 763(a), 764(a), 768(b), Dec. 8,
    1994, 108 Stat. 5024-5031, 5033-5036, 5041; Pub. L. 105-34, title
    XV, Sec. 1521(b), (c)(2), (3)(B), title XVI, Sec. 1604(b)(2)(B),
    Aug. 5, 1997, 111 Stat. 1069, 1070, 1097; Pub. L. 107-16, title VI,
    Secs. 651(b), 661(b), June 7, 2001, 115 Stat. 129, 142; Pub. L. 107-
    147, title IV, Secs. 405(b), 411(v)(2), Mar. 9, 2002, 116 Stat.
    42, 52; Pub. L. 108-218, title I, Secs. 101(a)(1)-(3), 102(a),
    104(a)(1), Apr. 10, 2004, 118 Stat. 596, 597, 599, 604; Pub. L. 109-
    135, title IV, Sec. 412(x)(2), Dec. 21, 2005, 119 Stat. 2638; Pub.
    L. 109-280, title III, Sec. 301(a)(1), (2), Aug. 17, 2006, 120
    Stat. 919.)


-STATAMEND-
                      REPEAL AND ENACTMENT OF SECTION                  
      Pub. L. 109-280, title I, Sec. 101(a), (b), (d), Aug. 17, 2006,
    120 Stat. 784, 789, provided that, applicable to plan years
    beginning after 2007, this section is repealed and a new section
    1082 of this title is enacted to read as follows:
    Sec. 1082. Minimum funding standards
    (a) Requirement to meet minimum funding standard
      (1) In general
        A plan to which this part applies shall satisfy the minimum
      funding standard applicable to the plan for any plan year.
      (2) Minimum funding standard
        For purposes of paragraph (1), a plan shall be treated as
      satisfying the minimum funding standard for a plan year if - 
          (A) in the case of a defined benefit plan which is a single-
        employer plan, the employer makes contributions to or under
        the plan for the plan year which, in the aggregate, are not
        less than the minimum required contribution determined under
        section 1083 of this title for the plan for the plan year,
          (B) in the case of a money purchase plan which is a single-
        employer plan, the employer makes contributions to or under
        the plan for the plan year which are required under the terms
        of the plan, and
          (C) in the case of a multiemployer plan, the employers make
        contributions to or under the plan for any plan year which, in
        the aggregate, are sufficient to ensure that the plan does not
        have an accumulated funding deficiency under section 1084 of
        this title as of the end of the plan year.
    (b) Liability for contributions
      (1) In general
        Except as provided in paragraph (2), the amount of any
      contribution required by this section (including any required
      installments under paragraphs (3) and (4) of section 1083(j) of
      this title) shall be paid by the employer responsible for making
      contributions to or under the plan.
      (2) Joint and several liability where employer member of
        controlled group
        If the employer referred to in paragraph (1) is a member of a
      controlled group, each member of such group shall be jointly and
      severally liable for payment of such contributions.
    (c) Variance from minimum funding standards
      (1) Waiver in case of business hardship
        (A) In general
          If - 
            (i) an employer is (or in the case of a multiemployer plan,
          10 percent or more of the number of employers contributing to
          or under the plan is) unable to satisfy the minimum funding
          standard for a plan year without temporary substantial
          business hardship (substantial business hardship in the case
          of a multiemployer plan), and
            (ii) application of the standard would be adverse to the
          interests of plan participants in the aggregate,

        the Secretary of the Treasury may, subject to subparagraph (C),
        waive the requirements of subsection (a) for such year with
        respect to all or any portion of the minimum funding standard.
        The Secretary of the Treasury shall not waive the minimum
        funding standard with respect to a plan for more than 3 of any
        15 (5 of any 15 in the case of a multiemployer plan)
        consecutive plan years.
        (B) Effects of waiver
          If a waiver is granted under subparagraph (A) for any plan
        year - 
            (i) in the case of a single-employer plan, the minimum
          required contribution under section 1083 of this title for
          the plan year shall be reduced by the amount of the waived
          funding deficiency and such amount shall be amortized as
          required under section 1083(e) of this title, and
            (ii) in the case of a multiemployer plan, the funding
          standard account shall be credited under section
          1084(b)(3)(C) of this title with the amount of the waived
          funding deficiency and such amount shall be amortized as
          required under section 1084(b)(2)(C) of this title.
        (C) Waiver of amortized portion not allowed
          The Secretary of the Treasury may not waive under
        subparagraph (A) any portion of the minimum funding standard
        under subsection (a) for a plan year which is attributable to
        any waived funding deficiency for any preceding plan year.
      (2) Determination of business hardship
        For purposes of this subsection, the factors taken into account
      in determining temporary substantial business hardship
      (substantial business hardship in the case of a multiemployer
      plan) shall include (but shall not be limited to) whether or not -
       
          (A) the employer is operating at an economic loss,
          (B) there is substantial unemployment or underemployment in
        the trade or business and in the industry concerned,
          (C) the sales and profits of the industry concerned are
        depressed or declining, and
          (D) it is reasonable to expect that the plan will be
        continued only if the waiver is granted.
      (3) Waived funding deficiency
        For purposes of this part, the term "waived funding deficiency"
      means the portion of the minimum funding standard under
      subsection (a) (determined without regard to the waiver) for a
      plan year waived by the Secretary of the Treasury and not
      satisfied by employer contributions.
      (4) Security for waivers for single-employer plans, consultations
        (A) Security may be required
          (i) In general
            Except as provided in subparagraph (C), the Secretary of
          the Treasury may require an employer maintaining a defined
          benefit plan which is a single-employer plan (within the
          meaning of section 1301(a)(15) of this title) to provide
          security to such plan as a condition for granting or
          modifying a waiver under paragraph (1).
          (ii) Special rules
            Any security provided under clause (i) may be perfected and
          enforced only by the Pension Benefit Guaranty Corporation, or
          at the direction of the Corporation, by a contributing
          sponsor (within the meaning of section 1301(a)(13) of this
          title), or a member of such sponsor's controlled group
          (within the meaning of section 1301(a)(14) of this title).
        (B) Consultation with the Pension Benefit Guaranty Corporation
          Except as provided in subparagraph (C), the Secretary of the
        Treasury shall, before granting or modifying a waiver under
        this subsection with respect to a plan described in
        subparagraph (A)(i) - 
            (i) provide the Pension Benefit Guaranty Corporation with -
          
              (I) notice of the completed application for any waiver or
            modification, and
              (II) an opportunity to comment on such application within
            30 days after receipt of such notice, and

            (ii) consider - 
              (I) any comments of the Corporation under clause (i)(II),
            and
              (II) any views of any employee organization (within the
            meaning of section 1002(4) of this title) representing
            participants in the plan which are submitted in writing to
            the Secretary of the Treasury in connection with such
            application.

        Information provided to the Corporation under this subparagraph
        shall be considered tax return information and subject to the
        safeguarding and reporting requirements of section 6103(p) of
        title 26.
        (C) Exception for certain waivers
          (i) In general
            The preceding provisions of this paragraph shall not apply
          to any plan with respect to which the sum of - 
              (I) the aggregate unpaid minimum required contributions
            for the plan year and all preceding plan years, and
              (II) the present value of all waiver amortization
            installments determined for the plan year and succeeding
            plan years under section 1083(e)(2) of this title,

          is less than $1,000,000.
          (ii) Treatment of waivers for which applications are pending
            The amount described in clause (i)(I) shall include any
          increase in such amount which would result if all
          applications for waivers of the minimum funding standard
          under this subsection which are pending with respect to such
          plan were denied.
          (iii) Unpaid minimum required contribution
            For purposes of this subparagraph - 
            (I) In general
              The term "unpaid minimum required contribution" means,
            with respect to any plan year, any minimum required
            contribution under section 1083 of this title for the plan
            year which is not paid on or before the due date (as
            determined under section 1083(j)(1) of this title) for the
            plan year.
            (II) Ordering rule
              For purposes of subclause (I), any payment to or under a
            plan for any plan year shall be allocated first to unpaid
            minimum required contributions for all preceding plan years
            on a first-in, first-out basis and then to the minimum
            required contribution under section 1083 of this title for
            the plan year.
      (5) Special rules for single-employer plans
        (A) Application must be submitted before date 2 1/2  months
          after close of year
          In the case of a single-employer plan, no waiver may be
        granted under this subsection with respect to any plan for any
        plan year unless an application therefor is submitted to the
        Secretary of the Treasury not later than the 15th day of the
        3rd month beginning after the close of such plan year.
        (B) Special rule if employer is member of controlled group
          In the case of a single-employer plan, if an employer is a
        member of a controlled group, the temporary substantial
        business hardship requirements of paragraph (1) shall be
        treated as met only if such requirements are met - 
            (i) with respect to such employer, and
            (ii) with respect to the controlled group of which such
          employer is a member (determined by treating all members of
          such group as a single employer).

        The Secretary of the Treasury may provide that an analysis of a
        trade or business or industry of a member need not be conducted
        if such Secretary determines such analysis is not necessary
        because the taking into account of such member would not
        significantly affect the determination under this paragraph.
      (6) Advance notice
        (A) In general
          The Secretary of the Treasury shall, before granting a waiver
        under this subsection, require each applicant to provide
        evidence satisfactory to such Secretary that the applicant has
        provided notice of the filing of the application for such
        waiver to each affected party (as defined in section
        1301(a)(21) of this title). Such notice shall include a
        description of the extent to which the plan is funded for
        benefits which are guaranteed under subchapter III and for
        benefit liabilities.
        (B) Consideration of relevant information
          The Secretary of the Treasury shall consider any relevant
        information provided by a person to whom notice was given under
        subparagraph (A).
      (7) Restriction on plan amendments
        (A) In general
          No amendment of a plan which increases the liabilities of the
        plan by reason of any increase in benefits, any change in the
        accrual of benefits, or any change in the rate at which
        benefits become nonforfeitable under the plan shall be adopted
        if a waiver under this subsection or an extension of time under
        section 1084(d) of this title is in effect with respect to the
        plan, or if a plan amendment described in subsection (d)(2) has
        been made at any time in the preceding 12 months (24 months in
        the case of a multiemployer plan). If a plan is amended in
        violation of the preceding sentence, any such waiver, or
        extension of time, shall not apply to any plan year ending on
        or after the date on which such amendment is adopted.
        (B) Exception
          Subparagraph (A) shall not apply to any plan amendment which -
         
            (i) the Secretary of the Treasury determines to be
          reasonable and which provides for only de minimis increases
          in the liabilities of the plan,
            (ii) only repeals an amendment described in subsection
          (d)(2), or
            (iii) is required as a condition of qualification under
          part I of subchapter D of chapter 1 of title 26.
      (8) Cross reference
        For corresponding duties of the Secretary of the Treasury with
      regard to implementation of the Internal Revenue Code of 1986,
      see section 412(c) of title 26.
    (d) Miscellaneous rules
      (1) Change in method or year
        If the funding method, the valuation date, or a plan year for a
      plan is changed, the change shall take effect only if approved by
      the Secretary of the Treasury.
      (2) Certain retroactive plan amendments
        For purposes of this section, any amendment applying to a plan
      year which - 
          (A) is adopted after the close of such plan year but no later
        than 2 1/2  months after the close of the plan year (or, in the
        case of a multiemployer plan, no later than 2 years after the
        close of such plan year),
          (B) does not reduce the accrued benefit of any participant
        determined as of the beginning of the first plan year to which
        the amendment applies, and
          (C) does not reduce the accrued benefit of any participant
        determined as of the time of adoption except to the extent
        required by the circumstances,

      shall, at the election of the plan administrator, be deemed to
      have been made on the first day of such plan year. No amendment
      described in this paragraph which reduces the accrued benefits of
      any participant shall take effect unless the plan administrator
      files a notice with the Secretary of the Treasury notifying him
      of such amendment and such Secretary has approved such amendment,
      or within 90 days after the date on which such notice was filed,
      failed to disapprove such amendment. No amendment described in
      this subsection shall be approved by the Secretary of the
      Treasury unless such Secretary determines that such amendment is
      necessary because of a temporary substantial business hardship
      (as determined under subsection (c)(2)) or a substantial business
      hardship (as so determined) in the case of a multiemployer plan
      and that a waiver under subsection (c) (or, in the case of a
      multiemployer plan, any extension of the amortization period
      under section 1084(d) of this title) is unavailable or
      inadequate.
      (3) Controlled group
        For purposes of this section, the term "controlled group" means
      any group treated as a single employer under subsection (b), (c),
      (m), or (o) of section 414 of title 26.

                      ENACTMENT OF SUBSECTION (B)(3)                  
      Pub. L. 109-280, title II, Sec. 202(d), (f), Aug. 17, 2006, 120
    Stat. 885, 919, provided that, applicable with respect to plan
    years beginning after 2007, with special rules for certain notices
    and for certain restored benefits, subsection (b) of this section
    is amended by adding paragraph (3) at the end to read as follows:
      (3) Multiemployer plans in critical status
        Paragraph (1) shall not apply in the case of a multiemployer
      plan for any plan year in which the plan is in critical status
      pursuant to section 1085 of this title. This paragraph shall only
      apply if the plan adopts a rehabilitation plan in accordance with
      section 1085(e) of this title and complies with the terms of such
      rehabilitation plan (and any updates or modifications of the
      plan).

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Social Security Act, referred to in subsecs. (c)(4)(A) and
    (d)(7)(C)(iii)(II), is act Aug. 14, 1935, ch. 531, 49 Stat. 620, as
    amended, which is classified generally to chapter 7 (Sec. 301 et
    seq.) of Title 42, The Public Health and Welfare. Title II of the
    Act is classified generally to subchapter II (Sec. 401 et seq.) of
    chapter 7 of Title 42. For complete classification of this Act to
    the Code, see section 1305 of Title 42 and Tables.
      The Retirement Protection Act of 1994, referred to in subsec.
    (d)(11), is subtitle F (Secs. 750-781) of title VII of Pub. L. 103-
    465, Dec. 8, 1994, 108 Stat. 5012. For complete classification of
    this Act to the Code, see Short Title of 1994 Amendment note set
    out under section 1 of Title 26, Internal Revenue Code, and Tables.
      Section 1013(d) of this Act, referred to in subsec. (h), is
    section 1013(d) of Pub. L. 93-406, which is set out as an
    Alternative Amortization Method for Certain Multi-employer Plans
    note under section 412 of Title 26.

-COD-
                               CODIFICATION                           
      Section 2005(d)(2) of Pub. L. 100-647, which directed that
    subsec. (d)(3)(B) of this section be amended by striking out
    "October 17, 1987" in cl. (i) and inserting in lieu thereof
    "October 29, 1987", and by striking out "October 16, 1987" in cl.
    (iii) and inserting in lieu thereof "October 28, 1987", could not
    be executed because it did not contain cls. (i) and (iii).


-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (b)(5)(B)(ii)(II). Pub. L. 109-280, Sec.
    301(a)(1), substituted ", 2005, 2006, and 2007" for "and 2005" in
    heading and "2008" for "2006" in text.
      Subsec. (d)(7)(C)(i)(IV). Pub. L. 109-280, Sec. 301(a)(2),
    substituted ", 2005, 2006, and 2007" for "and 2005" in heading and
    ", 2005, 2006, or 2007" for "or 2005" in text.
      2005 - Subsec. (e)(4)(B)(i). Pub. L. 109-135 substituted
    "subsection (d)" for "subsection (c)".
      2004 - Subsec. (b)(5)(B)(ii)(I). Pub. L. 108-218, Sec.
    101(a)(1)(C), inserted "or (III)" after "subclause (II)".
      Subsec. (b)(5)(B)(ii)(II). Pub. L. 108-218, Sec. 101(a)(1)(A),
    added subcl. (II). Former subcl. (II) redesignated (III).
      Subsec. (b)(5)(B)(ii)(III). Pub. L. 108-218, Sec. 101(a)(1)(A),
    (B), redesignated subcl. (II) as (III), inserted "or (II)" after
    "subclause (I)" the first place appearing, and substituted "such
    subclause" for "subclause (I)" the second place appearing.
      Subsec. (b)(7)(F). Pub. L. 108-218, Sec. 104(a)(1), added subpar.
    (F).
      Subsec. (d)(7)(C)(i)(IV). Pub. L. 108-218, Sec. 101(a)(2), added
    subcl. (IV).
      Subsec. (d)(12). Pub. L. 108-218, Sec. 102(a), added par. (12).
      Subsec. (e)(7). Pub. L. 108-218, Sec. 101(a)(3), amended heading
    and text of par. (7) generally. Prior to amendment, text consisted
    of subpars. (A) and (B) relating to special rules for 2002 and
    2004, respectively.
      2002 - Subsec. (c)(9)(B)(ii). Pub. L. 107-147, Sec. 411(v)(2)(A),
    substituted "100 percent" for "125 percent".
      Subsec. (c)(9)(B)(iv). Pub. L. 107-147, Sec. 411(v)(2)(B), added
    cl. (iv).
      Subsec. (d)(7)(C)(i)(III). Pub. L. 107-147, Sec. 405(b)(1), added
    subcl. (III).
      Subsec. (e)(7). Pub. L. 107-147, Sec. 405(b)(2), added par. (7).
      2001 - Subsec. (c)(7)(A)(i)(I). Pub. L. 107-16, Sec. 651(b)(1),
    substituted "in the case of plan years beginning before January 1,
    2004, the applicable percentage" for "the applicable percentage".
      Subsec. (c)(7)(F). Pub. L. 107-16, Sec. 651(b)(2), reenacted
    heading without change and amended text of subpar. (F) generally,
    substituting applicable percentages 165 and 170 in the case of any
    plan year beginning in calendar year 2002 and 2003, respectively,
    for applicable percentages 155, 160, 165, and 170 in the case of
    any plan year beginning in 1999 or 2000, 2001 or 2002, 2003 or
    2004, and 2005 and succeeding years, respectively.
      Subsec. (c)(9). Pub. L. 107-16, Sec. 661(b), designated existing
    provisions as subpar. (A) and added subpar. (B).
      1997 - Subsec. (b)(2)(E). Pub. L. 105-34, Sec. 1521(c)(2), added
    subpar. (E).
      Subsec. (c)(7)(A)(i)(I). Pub. L. 105-34, Sec. 1521(b)(A),
    substituted "the applicable percentage" for "150 percent".
      Subsec. (c)(7)(D). Pub. L. 105-34, Sec. 1521(c)(3)(B), inserted
    "and" at end of cl. (i), substituted a period for ", and" at end of
    cl. (ii), and struck out cl. (iii) which read as follows: "for the
    treatment under this section of contributions which would be
    required to be made under the plan but for the provisions of
    subparagraph (A)(i)(I)."
      Subsec. (c)(7)(F). Pub. L. 105-34, Sec. 1521(b)(B), added subpar.
    (F).
      Subsec. (e)(5)(E)(ii)(II). Pub. L. 105-34, Sec. 1604(b)(2)(B),
    substituted "subclause (I)" for "clause (i)".
      1994 - Subsec. (c)(5). Pub. L. 103-465, Sec. 762(a), designated
    existing provisions as subpar. (A), inserted heading, and added
    subpar. (B).
      Subsec. (c)(7)(A)(i). Pub. L. 103-465, Sec. 761(a)(10)(A),
    inserted "(including the expected increase in current liability due
    to benefits accruing during the plan year)" after "current
    liability".
      Subsec. (c)(7)(B). Pub. L. 103-465, Sec. 761(a)(10)(C), amended
    heading and text of subpar. (B) generally. Prior to amendment, text
    read as follows: "For purposes of subparagraphs (A) and (D), the
    term 'current liability' has the meaning given such term by
    subsection (d)(7) of this section (without regard to subparagraph
    (D) thereof)."
      Subsec. (c)(7)(E). Pub. L. 103-465, Sec. 761(a)(10)(B), added
    subpar. (E).
      Subsec. (c)(12). Pub. L. 103-465, Sec. 763(a), added par. (12).
      Subsec. (d)(1). Pub. L. 103-465, Sec. 761(a)(1)(A), (2)(B),
    substituted "to which this subsection applies under paragraph (9)"
    for "which has an unfunded current liability" in introductory
    provisions and substituted last sentence for one which read "Such
    increase shall not exceed the amount necessary to increase the
    funded current liability percentage to 100 percent."
      Subsec. (d)(1)(A)(ii). Pub. L. 103-465, Sec. 761(a)(2)(A),
    amended cl. (ii) generally. Prior to amendment, cl. (ii) read as
    follows: "the sum of the charges for such plan year under
    subparagraphs (B) (other than clauses (iv) and (v) thereof), (C),
    and (D) of subsection (b)(2) of this section, reduced by the sum of
    the credits for such plan year under subparagraph (B)(i) of
    subsection (b)(3) of this section, plus".
      Subsec. (d)(2)(C), (D). Pub. L. 103-465, Sec. 761(a)(3),
    (7)(B)(i), added subpars. (C) and (D).
      Subsec. (d)(3)(D), (E). Pub. L. 103-465, Sec. 761(a)(4)(A), added
    subpars. (D) and (E).
      Subsec. (d)(4)(B)(i). Pub. L. 103-465, Sec. 761(a)(4)(B),
    (7)(B)(iii), inserted ", the unamortized portion of the additional
    unfunded old liability, the unamortized portion of each unfunded
    mortality increase," after "the unfunded old liability".
      Subsec. (d)(4)(C). Pub. L. 103-465, Sec. 761(a)(5), substituted
    ".40" for ".25" in cl. (i) and "60" for "35" in cl. (ii).
      Subsec. (d)(5)(A). Pub. L. 103-465, Sec. 761(a)(6)(A)(i),
    substituted "greatest of" for "greater of" in introductory
    provisions.
      Subsec. (d)(5)(A)(iii). Pub. L. 103-465, Sec. 761(a)(6)(A)(ii)-
    (iv), added cl. (iii).
      Subsec. (d)(5)(E). Pub. L. 103-465, Sec. 761(a)(6)(B), added
    subpar. (E).
      Subsec. (d)(7)(C). Pub. L. 103-465, Sec. 761(a)(7)(A), amended
    heading and text of subpar. (C) generally. Prior to amendment, text
    read as follows: "The rate of interest used to determine current
    liability shall be the rate of interest used under subsection
    (b)(5) of this section."
      Subsec. (d)(9) to (11). Pub. L. 103-465, Sec. 761(a)(1)(B),
    (7)(B)(ii), (8), added pars. (9) to (11).
      Subsec. (e)(1). Pub. L. 103-465, Sec. 764(a), in introductory
    provisions, inserted "which has a funded current liability
    percentage (as defined in subsection (d)(8) of this section) for
    the preceding plan year of less than 100 percent" before "fails to
    pay" and substituted "the plan year" for "any plan year".
      Subsec. (e)(4)(D)(ii). Pub. L. 103-465, Sec. 761(a)(6)(C)(i),
    substituted "greatest of" for "greater of" in introductory
    provisions.
      Subsec. (e)(4)(D)(ii)(III). Pub. L. 103-465, Sec.
    761(a)(6)(C)(ii)-(iv), added subcl. (III).
      Subsec. (e)(5), (6). Pub. L. 103-465, Sec. 761(a)(9)(A), added
    par. (5) and redesignated former par. (5) as (6).
      Subsec. (f)(1). Pub. L. 103-465, Sec. 768(b)(1), substituted
    "covered under section 4021 of this title" for "to which this
    section applies" in introductory provisions.
      Subsec. (f)(3). Pub. L. 103-465, Sec. 768(b)(2), amended heading
    and text of par. (3) generally. Prior to amendment, text read as
    follows: "For purposes of paragraph (1), the amount of the lien
    shall be equal to the lesser of - 
        "(A) the amount by which the unpaid balances described in
      paragraph (1)(B) (including interest) exceed $1,000,000, or
        "(B) the aggregate unpaid balance of required installments and
      other payments required under this section (including interest) -
      
          "(i) for plan years beginning after 1987, and
          "(ii) for which payment has not been made before the due
        date."
      Subsec. (f)(4)(B). Pub. L. 103-465, Sec. 768(b)(3), struck out
    "60th day following the" before "due date".
      1990 - Subsecs. (g), (h). Pub. L. 101-508 added subsec. (g) and
    redesignated former subsec. (g) as (h).
      1989 - Subsec. (b)(3)(B)(iii). Pub. L. 101-239, Sec. 7894(d)(2),
    substituted comma for period at end.
      Subsec. (b)(5). Pub. L. 101-239, Sec. 7881(d)(2)(B), struck out
    introductory provision which read as follows: "For purposes of
    determining a plan's current liability and for purposes of
    determining a plan's required contribution under section 412(l) of
    title 26 for any plan year - ".
      Subsec. (b)(5)(B). Pub. L. 101-239, Sec. 7881(d)(2)(A), inserted
    introductory provision "For purposes of determining a plan's
    current liability and for purposes of determining a plan's required
    contribution under subsection (d) of this section for any plan year
    - ".
      Subsec. (b)(5)(B)(ii)(I). Pub. L. 101-239, Sec. 7881(d)(2)(C),
    substituted "the weighted average of the rates" for "average rate".
      Subsec. (b)(5)(B)(iii). Pub. L. 101-239, Sec. 7881(d)(1)(B),
    struck out "for purposes of this section and for purposes of
    determining current liability," before "the interest rate" in
    introductory provisions.
      Subsec. (b)(7)(B), (E). Pub. L. 101-239, Sec. 7891(a)(1),
    substituted "Internal Revenue Code of 1986" for "Internal Revenue
    Code of 1954", which for purposes of codification was translated as
    "title 26" thus requiring no change in text.
      Subsec. (c)(3). Pub. L. 101-239, Sec. 7881(d)(4), realigned
    margins.
      Subsec. (c)(4)(B). Pub. L. 101-239, Sec. 7891(a)(1), substituted
    "Internal Revenue Code of 1986" for "Internal Revenue Code of
    1954", which for purposes of codification was translated as "title
    26" thus requiring no change in text.
      Subsec. (c)(6). Pub. L. 101-239, Sec. 7894(d)(5), substituted
    "section 1085 of this title" for "subsection (g) of this section".
      Subsec. (c)(7). Pub. L. 101-239, Sec. 7892(b), realigned margins.
      Subsec. (c)(9). Pub. L. 101-239, Sec. 7881(a)(6)(B), substituted
    "every year" for "every 3 years".
      Subsec. (c)(10)(A). Pub. L. 101-239, Sec. 7881(b)(1)(B), inserted
    "defined benefit" before "plan other".
      Subsec. (c)(10)(B). Pub. L. 101-239, Sec. 7881(b)(2)(B),
    substituted "plan not described in subparagraph (A)" for
    "multiemployer plan".
      Subsec. (d)(3)(C)(ii)(II). Pub. L. 101-239, Sec. 7881(a)(1)(B),
    inserted "(but not below zero)" after "reducing".
      Subsec. (d)(4)(B)(i). Pub. L. 101-239, Sec. 7881(a)(2)(B),
    inserted "and the unamortized portion of the unfunded existing
    benefit increase liability" after "liability".
      Subsec. (d)(5)(C). Pub. L. 101-239, Sec. 7881(a)(3)(B),
    substituted "the first plan year beginning after December 31, 1988"
    for "October 17, 1987".
      Subsec. (d)(7)(D)(iii)(III). Pub. L. 101-239, Sec.
    7881(a)(4)(B)(i), added subcl. (III).
      Subsec. (d)(7)(D)(iv). Pub. L. 101-239, Sec. 7881(a)(4)(B)(ii),
    added cl. (iv).
      Subsec. (d)(8)(A)(ii). Pub. L. 101-239, Sec. 7881(a)(5)(B)(i),
    struck out "reduced by any credit balance in the funding standard
    account" after "this section".
      Subsec. (d)(8)(E). Pub. L. 101-239, Sec. 7881(a)(5)(B)(ii), added
    subpar. (E).
      Subsec. (e)(1). Pub. L. 101-239, Sec. 7881(b)(3)(B), inserted
    "defined benefit" before "plan (other".
      Subsec. (e)(1)(B). Pub. L. 101-239, Sec. 7881(b)(6)(B)(i),
    amended subpar. (B) generally. Prior to amendment, subpar. (B) read
    as follows: "the rate under subsection (b)(5) of this section."
      Subsec. (e)(4)(D). Pub. L. 101-239, Sec. 7881(b)(4)(B), amended
    subpar. (D) generally. Prior to amendment, subpar. (D) read as
    follows: "In the case of a plan with any unpredictable contingent
    event benefit liabilities - 
        "(i) such liabilities shall not be taken into account in
      computing the required annual payment under subparagraph (B), and
        "(ii) each required installment shall be increased by the
      greater of - 
          "(I) the amount of benefits described in subsection
        (d)(5)(A)(i) of this section paid during the 3-month period
        preceding the month in which the due date for such installment
        occurs, or
          "(II) 25 percent of the amount determined under subsection
        (d)(5)(A)(ii) of this section for the plan year."
      1988 - Subsec. (d)(3)(C). Pub. L. 100-647, Sec. 2005(a)(2)(B),
    substituted "October 29" for "October 17" in cl. (i) and "October
    28" for "October 16" in cl. (iii).
      1987 - Subsec. (b)(2)(B)(iv), (C), (3)(B)(ii). Pub. L. 100-203,
    Sec. 9307(a)(2)(A), substituted "5 plan years (15 plan years in the
    case of a multiemployer plan)" for "15 plan years".
      Subsec. (b)(2)(B)(v), (3)(B)(iii). Pub. L. 100-203, Sec.
    9307(a)(2)(B), substituted "10 plan years (30 plan years in the
    case of a multiemployer plan)" for "30 plan years".
      Subsec. (b)(5). Pub. L. 100-203, Sec. 9307(e)(2), amended par.
    (5) generally. Prior to amendment, par. (5) read as follows: "The
    funding standard account (and items therein) shall be charged or
    credited (as determined under regulations prescribed by the
    Secretary of the Treasury) with interest at the appropriate rate
    consistent with the rate or rates of interest used under the plan
    to determine costs."
      Subsec. (c)(2)(B). Pub. L. 100-203, Sec. 9303(d)(2), inserted at
    end "In the case of a plan other than a multiemployer plan, this
    subparagraph shall not apply, but the Secretary of the Treasury may
    by regulations provide that the value of any dedicated bond
    portfolio of such plan shall be determined by using the interest
    rate under subsection (b)(5) of this section."
      Subsec. (c)(3). Pub. L. 100-203, Sec. 9307(b)(2), amended par.
    (3) generally. Prior to amendment, par. (3) read as follows: "For
    purposes of this part, all costs, liabilities, rates of interest,
    and other factors under the plan shall be determined on the basis
    of actuarial assumptions and methods which, in the aggregate, are
    reasonable (taking into account the experience of the plan and
    reasonable expectations) and which, in combination, offer the
    actuary's best estimate of anticipated experience under the plan."
      Subsec. (c)(7). Pub. L. 100-203, Sec. 9301(b), amended par. (7)
    generally. Prior to amendment, par. (7) read as follows: "For
    purposes of paragraph (6), the term 'full funding limitation' means
    the excess (if any) of - 
        "(A) the accrued liability (including normal cost) under the
      plan (determined under the entry age normal funding method if
      such accrued liability cannot be directly calculated under the
      funding method used for the plan), over
        "(B) the lesser of the fair market value of the plan's assets
      or the value of such assets determined under paragraph (2)."
      Subsec. (c)(10). Pub. L. 100-203, Sec. 9304(a)(2), amended par.
    (10) generally. Prior to amendment, par. (10) read as follows: "For
    purposes of this part, any contributions for a plan year made by an
    employer after the last day of such plan year, but not later than 2
    1/2  months after such day, shall be deemed to have been made on
    such last day. For purposes of this paragraph, such 2 1/2  month
    period may be extended for not more than 6 months under regulations
    prescribed by the Secretary of the Treasury."
      Subsec. (c)(11). Pub. L. 100-203, Sec. 9305(b)(2), added par.
    (11).
      Subsec. (d). Pub. L. 100-203, Sec. 9303(b)(1), added subsec. (d).
    Former subsec. (d) "Cross reference" redesignated (e).
      Subsec. (e). Pub. L. 100-203, Sec. 9304(b)(2), added subsec. (e).
    Former subsec. (e) "Cross reference" redesignated (f).
      Pub. L. 100-203, Sec. 9303(b)(1), redesignated former subsec. (d)
    as (e).
      Subsec. (f). Pub. L. 100-203, Sec. 9304(e)(2), added subsec. (f).
    Former subsec. (f) "Cross reference" redesignated (g).
      Pub. L. 100-203, Sec. 9304(b)(2), redesignated former subsec. (e)
    as (f).
      Subsec. (g). Pub. L. 100-203, Sec. 9304(e)(2), redesignated
    former subsec. (f) as (g).
      1980 - Subsec. (a)(3). Pub. L. 96-364, Sec. 304(b)(3), added par.
    (3).
      Subsec. (b)(2). Pub. L. 96-364, Sec. 304(b)(1), struck out in
    par. (B)(ii) and (iii) "(40 plan years in the case of a
    multiemployer plan)" after "30 plan years" and in par. (B)(iv) "(20
    plan years in the case of a multiemployer plan)" after "15 plan
    years".
      Subsec. (b)(3). Pub. L. 96-364, Sec. 304(b)(1), struck out in
    par. (B)(i) "(40 plan years in the case of a multiemployer plan)"
    after "30 plan years" and in par. (B)(ii) "(20 plan years in the
    case of a multiemployer plan)" after "15 plan years".
      Subsec. (b)(6), (7). Pub. L. 96-364, Sec. 304(b)(2), added pars.
    (6) and (7).

             EFFECTIVE AND TERMINATION DATES OF 2006 AMENDMENT         
      Pub. L. 109-280, title I, Sec. 101(d), Aug. 17, 2006, 120 Stat.
    789, provided that: "The amendments made by this section [enacting
    a new section 1082 of this title and repealing existing section
    1082 of this title and sections 1083 to 1085, 1085a, 1085b, and
    1086 of this title] shall apply to plan years beginning after
    2007."
      Pub. L. 109-280, title II, Sec. 202(f), Aug. 17, 2006, 120 Stat.
    885, provided that:
      "(1) In general. - The amendments made by this section [enacting
    section 1085 of this title and amending this section and section
    1132 of this title] shall apply with respect to plan years
    beginning after 2007.
      "(2) Special rule for certain notices. - In any case in which a
    plan's actuary certifies that it is reasonably expected that a
    multiemployer plan will be in critical status under section
    305(b)(3) of the Employee Retirement Income Security Act of 1974
    [29 U.S.C. 1085(b)(3)], as added by this section, with respect to
    the first plan year beginning after 2007, the notice required under
    subparagraph (D) of such section may be provided at any time after
    the date of enactment [Aug. 17, 2006], so long as it is provided on
    or before the last date for providing the notice under such
    subparagraph.
      "(3) Special rule for certain restored benefits. - In the case of
    a multiemployer plan - 
        "(A) with respect to which benefits were reduced pursuant to a
      plan amendment adopted on or after January 1, 2002, and before
      June 30, 2005, and
        "(B) which, pursuant to the plan document, the trust agreement,
      or a formal written communication from the plan sponsor to
      participants provided before June 30, 2005, provided for the
      restoration of such benefits,
    the amendments made by this section shall not apply to such benefit
    restorations to the extent that any restriction on the providing or
    accrual of such benefits would otherwise apply by reason of such
    amendments."
      Amendment by section 202(d) of Pub. L. 109-280 inapplicable to
    plan years beginning after Dec. 31, 2014, with exception for
    certain funding improvement and rehabilitation plans, see section
    221(c) of Pub. L. 109-280, set out as a note under section 412 of
    Title 26, Internal Revenue Code.

                     EFFECTIVE DATE OF 2004 AMENDMENT                 
      Amendment by section 101(a) of Pub. L. 108-218 applicable, except
    as otherwise provided, to plan years beginning after Dec. 31, 2003,
    see section 101(d) of Pub. L. 108-218, set out as a note under
    section 404 of Title 26, Internal Revenue Code.

                     EFFECTIVE DATE OF 2002 AMENDMENT                 
      Amendment by section 411(v)(2) of Pub. L. 107-147 effective as if
    included in the provisions of the Economic Growth and Tax Relief
    Reconciliation Act of 2001, Pub. L. 107-16, to which such amendment
    relates, see section 411(x) of Pub. L. 107-147, set out as a note
    under section 25B of Title 26, Internal Revenue Code.

                     EFFECTIVE DATE OF 2001 AMENDMENT                 
      Amendment by section 651(b) of Pub. L. 107-16 applicable to plan
    years beginning after Dec. 31, 2001, see section 651(c) of Pub. L.
    107-16, set out as a note under section 412 of Title 26, Internal
    Revenue Code.
      Amendment by section 661(b) of Pub. L. 107-16 applicable to plan
    years beginning after Dec. 31, 2001, see section 661(c) of Pub. L.
    107-16, set out as a note under section 412 of Title 26, Internal
    Revenue Code.

                     EFFECTIVE DATE OF 1997 AMENDMENT                 
      Amendment by section 1521(b), (c)(2), (3)(B) of Pub. L. 105-34
    applicable to plan years beginning after Dec. 31, 1998, see section
    1521(d)(1) of Pub. L. 105-34, set out as a note under section 412
    of Title 26, Internal Revenue Code.
      Amendment by section 1604(b)(2)(B) of Pub. L. 105-34 effective as
    if included in the sections of the Uruguay Round Agreements Act,
    Pub. L. 103-465, to which it relates, see section 1604(b)(4) of
    Pub. L. 105-34, set out as a note under section 412 of Title 26,
    Internal Revenue Code.

                     EFFECTIVE DATE OF 1994 AMENDMENT                 
      Amendment by section 761(a)(1)-(9)(A), (10) of Pub. L. 103-465
    applicable to plan years beginning after Dec. 31, 1994, see section
    761(b)(1) of Pub. L. 103-465, set out as a note under section 1056
    of this title.
      Section 762(b) of Pub. L. 103-465 provided that:
      "(1) In general. - The amendment made by this section [amending
    this section] shall apply to changes in assumptions for plan years
    beginning after October 28, 1993.
      "(2) Certain changes cease to be effective. - In the case of
    changes in assumptions for plan years beginning after December 31,
    1992, and on or before October 28, 1993, such changes shall cease
    to be effective for plan years beginning after December 31, 1994,
    if - 
        "(A) such change would have required the approval of the
      Secretary of the Treasury had such amendment applied to such
      change, and
        "(B) such change is not so approved."
      Section 763(b) of Pub. L. 103-465 provided that: "The amendment
    made by this section [amending this section] shall apply to plan
    years beginning after December 31, 1994 with respect to collective
    bargaining agreements in effect on or after January 1, 1995."
      Section 764(b) of Pub. L. 103-465 provided that: "The amendment
    made by this section [amending this section] shall apply to plan
    years beginning after the date of enactment of this Act [Dec. 8,
    1994].
      Amendment by section 768(b) of Pub. L. 103-465 effective for
    installments and other payments required under section 412 of Title
    26, Internal Revenue Code, or under this part, that become due on
    or after Dec. 8, 1994, see section 768(c) of Pub. L. 103-465, set
    out as a note under section 412 of Title 26.

                     EFFECTIVE DATE OF 1990 AMENDMENT                 
      Amendment by Pub. L. 101-508 applicable to qualified transfers
    under section 420 of title 26 made after Nov. 5, 1990, see section
    12012(e) of Pub. L. 101-508, set out as a note under section 1021
    of this title.

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by section 7881(a)(1)(B), (2)(B), (3)(B), (4)(B),
    (5)(B), (6)(B), (b)(1)(B), (2)(B), (3)(B), (4)(B), (6)(B)(i),
    (d)(1)(B), (2), (4) of Pub. L. 101-239 effective, except as
    otherwise provided, as if included in the provision of the Pension
    Protection Act, Pub. L. 100-203, Secs. 9302-9346, to which such
    amendment relates, see section 7882 of Pub. L. 101-239, set out as
    a note under section 401 of Title 26, Internal Revenue Code.
      Amendment by section 7891(a)(1) of Pub. L. 101-239 effective,
    except as otherwise provided, as if included in the provision of
    the Tax Reform Act of 1986, Pub. L. 99-514, to which such amendment
    relates, see section 7891(f) of Pub. L. 101-239, set out as a note
    under section 1002 of this title.
      Amendment by section 7892(b) of Pub. L. 101-239 effective as if
    included in the provision of the Pension Protection Act, Pub. L.
    100-203, Secs. 9302-9346, to which such amendment relates, see
    section 7892(c) of Pub. L. 101-239, set out as a note under section
    1052 of this title.
      Amendment by section 7894(d)(2), (5) of Pub. L. 101-239
    effective, except as otherwise provided, as if originally included
    in the provision of the Employee Retirement Income Security Act of
    1974, Pub. L. 93-406, to which such amendment relates, see section
    7894(i) of Pub. L. 101-239, set out as a note under section 1002 of
    this title.

                     EFFECTIVE DATE OF 1988 AMENDMENT                 
      Amendment by Pub. L. 100-647 effective as if included in the
    amendments made by the provisions of the Omnibus Budget
    Reconciliation Act of 1987, Pub. L. 100-203, to which it relates,
    see section 2005(e) of Pub. L. 100-647, set out as a note under
    section 404 of Title 26, Internal Revenue Code.

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Amendment by section 9301(b) of Pub. L. 100-203 applicable to
    years beginning after Dec. 31, 1987, see section 9301(c)(1) of Pub.
    L. 100-203, set out as a note under section 412 of Title 26,
    Internal Revenue Code.
      Amendment by section 9303(b) of Pub. L. 100-203 applicable with
    respect to plan years beginning after Dec. 31, 1988, see section
    9303(e)(1) of Pub. L. 100-203, set out as a note under section 412
    of Title 26.
      Amendment by section 9303(d)(2) of Pub. L. 100-203 applicable
    with respect to plan years beginning after Dec. 31, 1987, see
    section 9303(e)(2) of Pub. L. 100-203, set out as a note under
    section 412 of Title 26.
      Amendment by section 9304(a)(2) of Pub. L. 100-203 applicable to
    plan years beginning after Dec. 31, 1987, see section 9304(a)(3) of
    Pub. L. 100-203, set out as a note under section 412 of Title 26.
      Amendment by section 9304(b)(2) of Pub. L. 100-203 applicable
    with respect to plan years beginning after 1988, see section
    9304(b)(3) of Pub. L. 100-203, set out as a note under section 412
    of Title 26.
      Amendment by section 9304(e)(2) of Pub. L. 100-203 applicable to
    plan years beginning after Dec. 31, 1987, see section 9304(e)(3) of
    Pub. L. 100-203, set out as a note under section 412 of Title 26.
      Amendment by section 9305(b)(2) of Pub. L. 100-203 applicable
    with respect to plan years beginning after Dec. 31, 1987, see
    section 9305(d) of Pub. L. 100-203, set out as a note under section
    412 of Title 26.
      Amendment by section 9307(a)(2), (b)(2), (e)(2) of Pub. L. 100-
    203 applicable to years beginning after Dec. 31, 1987, except that
    subsec. (b)(2)(B)(iv), (3)(B)(ii) of this section (as amended by
    section 9307(a)(2)(A) of Pub. L. 100-203) is applicable to gains
    and losses established in years beginning after Dec. 31, 1987, see
    section 9307(f) of Pub. L. 100-203, as amended, set out as a note
    under section 404 of Title 26.

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-364 effective Sept. 26, 1980, except as
    specifically provided, see section 1461(e) of this title.

                                REGULATIONS                            
      Secretary authorized, effective Sept. 2, 1974, to promulgate
    regulations wherever provisions of this subchapter call for the
    promulgation of regulations, see section 1031 of this title.

    APPLICABILITY OF AMENDMENTS BY SUBTITLES A AND B OF TITLE I OF PUB.
                                L. 109-280
      For special rules on applicability of amendments by subtitles A
    (Secs. 101-107) and B (Secs. 111-116) of title I of Pub. L. 109-280
    to certain eligible cooperative plans, PBGC settlement plans, and
    eligible government contractor plans, see sections 104, 105, and
    106 of Pub. L. 109-280, set out as notes under section 401 of Title
    26, Internal Revenue Code.

        SPECIAL RULE FOR CERTAIN BENEFITS FUNDED UNDER AN AGREEMENT
           APPROVED BY THE PENSION BENEFIT GUARANTY CORPORATION
      For applicability of amendment by section 202(d) of Pub. L. 109-
    280 to a multiemployer plan that is a party to an agreement that
    was approved by the Pension Benefit Guaranty Corporation prior to
    June 30, 2005, and that increases benefits and provides for certain
    withdrawal liability rules, see section 206 of Pub. L. 109-280, set
    out as a note under section 412 of Title 26, Internal Revenue Code.

-FOOTNOTE-
    (!1) So in original.

    (!2) So in original. Probably should be "actuarial".


-End-



-CITE-
    29 USC Sec. 1083                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 3 - funding

-HEAD-
    Sec. 1083. Variance from minimum funding standard

-STATUTE-
    (a) Waiver of requirements in event of business hardship
      If an employer, or in the case of a multi-employer plan, 10
    percent or more of the number of employers contributing to or under
    the plan are unable to satisfy the minimum funding standard for a
    plan year without temporary substantial business hardship
    (substantial business hardship in the case of a multiemployer plan)
    and if application of the standard would be adverse to the
    interests of plan participants in the aggregate, the Secretary of
    the Treasury may waive the requirements of section 1082(a) of this
    title for such year with respect to all or any portion of the
    minimum funding standard other than the portion thereof determined
    under section 1082(b)(2)(C) of this title. The Secretary of the
    Treasury shall not waive the minimum funding standard with respect
    to a plan for more than 3 of any 15 (5 of any 15 in the case of a
    multiemployer plan) consecutive plan years. The interest rate used
    for purposes of computing the amortization charge described in
    subsection (b)(2)(C) of this section for any plan year shall be - 
        (1) in the case of a plan other than a multiemployer plan, the
      greater of (A) 150 percent of the Federal mid-term rate (as in
      effect under section 1274 of title 26 for the 1st month of such
      plan year), or (B) the rate of interest used under the plan in
      determining costs (including adjustments under section
      1082(b)(5)(B) of this title), and
        (2) in the case of a multiemployer plan, the rate determined
      under section 6621(b) of title 26.
    (b) Matters considered in determining business hardship
      For purposes of this part, the factors taken into account in
    determining temporary substantial business hardship (substantial
    business hardship in the case of a multiemployer plan) shall
    include (but shall not be limited to) whether - 
        (1) the employer is operating at an economic loss,
        (2) there is substantial unemployment or underemployment in the
      trade or business and in the industry concerned,
        (3) the sales and profits of the industry concerned are
      depressed or declining, and
        (4) it is reasonable to expect that the plan will be continued
      only if the waiver is granted.
    (c) "Waived funding deficiency" defined
      For purposes of this part, the term "waived funding deficiency"
    means the portion of the minimum funding standard (determined
    without regard to subsection (b)(3)(C) of section 1082 of this
    title) for a plan year waived by the Secretary of the Treasury and
    not satisfied by employer contributions.
    (d) Special rules
      (1) Application must be submitted before date 2 1/2  months after
        close of year
        In the case of a plan other than a multiemployer plan, no
      waiver may be granted under this section with respect to any plan
      for any plan year unless an application therefor is submitted to
      the Secretary of the Treasury not later than the 15th day of the
      3rd month beginning after the close of such plan year.
      (2) Special rule if employer is member of controlled group
        (A) In general
          In the case of a plan other than a multiemployer plan, if an
        employer is a member of a controlled group, the temporary
        substantial business hardship requirements of subsection (a) of
        this section shall be treated as met only if such requirements
        are met - 
            (i) with respect to such employer, and
            (ii) with respect to the controlled group of which such
          employer is a member (determined by treating all members of
          such group as a single employer).

        The Secretary of the Treasury may provide that an analysis of a
        trade or business or industry of a member need not be conducted
        if the Secretary of the Treasury determines such analysis is
        not necessary because the taking into account of such member
        would not significantly affect the determination under this
        subsection.
        (B) Controlled group
          For purposes of subparagraph (A), the term "controlled group"
        means any group treated as a single employer under subsection
        (b), (c), (m), or (o) of section 414 of title 26.
    (e) Notice of filing of application for waiver
      (1) The Secretary of the Treasury shall, before granting a waiver
    under this section, require each applicant to provide evidence
    satisfactory to such Secretary that the applicant has provided
    notice of the filing of the application for such waiver to each
    employee organization representing employees covered by the
    affected plan, and each affected party (as defined in section
    1301(a)(21) of this title) other than the Pension Benefit Guaranty
    Corporation. Such notice shall include a description of the extent
    to which the plan is funded for benefits which are guaranteed under
    subchapter III of this chapter and for benefit liabilities.
      (2) The Secretary of the Treasury shall consider any relevant
    information provided by a person to whom notice was given under
    paragraph (1).
    (f) Cross reference
          For corresponding duties of the Secretary of the Treasury
        with regard to implementation of the Internal Revenue Code of
        1986, see section 412(d) of title 26.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 303, Sept. 2, 1974, 88 Stat. 872;
    Pub. L. 99-272, title XI, Secs. 11015(b)(1)(A), 11016(c)(2), Apr.
    7, 1986, 100 Stat. 267, 273; Pub. L. 100-203, title IX, Sec.
    9306(a)(2), (b)(2), (c)(2)(A), (d)(2), Dec. 22, 1987, 101 Stat.
    1330-353 to 1330-355; Pub. L. 101-239, title VII, Secs.
    7881(b)(6)(B)(ii), (7), (8), (c)(2), 7891(a)(1), Dec. 19, 1989, 103
    Stat. 2438, 2439, 2445.)


-STATAMEND-
                             REPEAL OF SECTION                         
      Pub. L. 109-280, title I, Sec. 101(a), (d), Aug. 17, 2006, 120
    Stat. 784, 789, provided that, applicable to plan years beginning
    after 2007, this section is repealed.

                           ENACTMENT OF SECTION                       
      Pub. L. 109-280, title I, Sec. 102(a), (c), Aug. 17, 2006, 120
    Stat. 789, 809, provided that, applicable with respect to plan
    years beginning after 2007, a new section 1083 of this title is
    enacted to read as follows:
    Sec. 1083. Minimum funding standards for single-employer defined
    benefit pension plans
    (a) Minimum required contribution
      For purposes of this section and section 1082(a)(2)(A) of this
    title, except as provided in subsection (f), the term "minimum
    required contribution" means, with respect to any plan year of a
    single-employer plan - 
        (1) in any case in which the value of plan assets of the plan
      (as reduced under subsection (f)(4)(B)) is less than the funding
      target of the plan for the plan year, the sum of - 
          (A) the target normal cost of the plan for the plan year,
          (B) the shortfall amortization charge (if any) for the plan
        for the plan year determined under subsection (c), and
          (C) the waiver amortization charge (if any) for the plan for
        the plan year as determined under subsection (e); or

        (2) in any case in which the value of plan assets of the plan
      (as reduced under subsection (f)(4)(B)) equals or exceeds the
      funding target of the plan for the plan year, the target normal
      cost of the plan for the plan year reduced (but not below zero)
      by such excess.
    (b) Target normal cost
      For purposes of this section, except as provided in subsection
    (i)(2) with respect to plans in at-risk status, the term "target
    normal cost" means, for any plan year, the present value of all
    benefits which are expected to accrue or to be earned under the
    plan during the plan year. For purposes of this subsection, if any
    benefit attributable to services performed in a preceding plan year
    is increased by reason of any increase in compensation during the
    current plan year, the increase in such benefit shall be treated as
    having accrued during the current plan year.
    (c) Shortfall amortization charge
      (1) In general
        For purposes of this section, the shortfall amortization charge
      for a plan for any plan year is the aggregate total (not less
      than zero) of the shortfall amortization installments for such
      plan year with respect to the shortfall amortization bases for
      such plan year and each of the 6 preceding plan years.
      (2) Shortfall amortization installment
        For purposes of paragraph (1) - 
        (A) Determination
          The shortfall amortization installments are the amounts
        necessary to amortize the shortfall amortization base of the
        plan for any plan year in level annual installments over the 7-
        plan-year period beginning with such plan year.
        (B) Shortfall installment
          The shortfall amortization installment for any plan year in
        the 7-plan-year period under subparagraph (A) with respect to
        any shortfall amortization base is the annual installment
        determined under subparagraph (A) for that year for that base.
        (C) Segment rates
          In determining any shortfall amortization installment under
        this paragraph, the plan sponsor shall use the segment rates
        determined under subparagraph (C) of subsection (h)(2), applied
        under rules similar to the rules of subparagraph (B) of
        subsection (h)(2).
      (3) Shortfall amortization base
        For purposes of this section, the shortfall amortization base
      of a plan for a plan year is - 
          (A) the funding shortfall of such plan for such plan year,
        minus
          (B) the present value (determined using the segment rates
        determined under subparagraph (C) of subsection (h)(2), applied
        under rules similar to the rules of subparagraph (B) of
        subsection (h)(2)) of the aggregate total of the shortfall
        amortization installments and waiver amortization installments
        which have been determined for such plan year and any
        succeeding plan year with respect to the shortfall amortization
        bases and waiver amortization bases of the plan for any plan
        year preceding such plan year.
      (4) Funding shortfall
        For purposes of this section, the funding shortfall of a plan
      for any plan year is the excess (if any) of - 
          (A) the funding target of the plan for the plan year, over
          (B) the value of plan assets of the plan (as reduced under
        subsection (f)(4)(B)) for the plan year which are held by the
        plan on the valuation date.
      (5) Exemption from new shortfall amortization base
        (A) In general
          In any case in which the value of plan assets of the plan (as
        reduced under subsection (f)(4)(A)) is equal to or greater than
        the funding target of the plan for the plan year, the shortfall
        amortization base of the plan for such plan year shall be zero.
        (B) Transition rule
          (i) In general
            Except as provided in clauses (iii) and (iv), in the case
          of plan years beginning after 2007 and before 2011, only the
          applicable percentage of the funding target shall be taken
          into account under paragraph (3)(A) in determining the
          funding shortfall for the plan year for purposes of
          subparagraph (A).
          (ii) Applicable percentage
            For purposes of subparagraph (A), the applicable percentage
          shall be determined in accordance with the following table:

        In the case of a plan year                                 The
                                                            applicable
         beginning in calendar year:                     percentage is
        2008                                                      92  
        2009                                                      94  
        2010                                                       96.
          (iii) Limitation
            Clause (i) shall not apply with respect to any plan year
          after 2008 unless the shortfall amortization base for each of
          the preceding years beginning after 2007 was zero (determined
          after application of this subparagraph).
          (iv) Transition relief not available for new or deficit
            reduction plans
            Clause (i) shall not apply to a plan - 
              (I) which was not in effect for a plan year beginning in
            2007, or
              (II) which was in effect for a plan year beginning in
            2007 and which was subject to section 1082(d) of this title
            (as in effect for plan years beginning in 2007), determined
            after the application of paragraphs (6) and (9) thereof.
      (6) Early deemed amortization upon attainment of funding target
        In any case in which the funding shortfall of a plan for a plan
      year is zero, for purposes of determining the shortfall
      amortization charge for such plan year and succeeding plan years,
      the shortfall amortization bases for all preceding plan years
      (and all shortfall amortization installments determined with
      respect to such bases) shall be reduced to zero.
    (d) Rules relating to funding target
      For purposes of this section - 
      (1) Funding target
        Except as provided in subsection (i)(1) with respect to plans
      in at-risk status, the funding target of a plan for a plan year
      is the present value of all benefits accrued or earned under the
      plan as of the beginning of the plan year.
      (2) Funding target attainment percentage
        The "funding target attainment percentage" of a plan for a plan
      year is the ratio (expressed as a percentage) which - 
          (A) the value of plan assets for the plan year (as reduced
        under subsection (f)(4)(B)), bears to
          (B) the funding target of the plan for the plan year
        (determined without regard to subsection (i)(1)).
    (e) Waiver amortization charge
      (1) Determination of waiver amortization charge
        The waiver amortization charge (if any) for a plan for any plan
      year is the aggregate total of the waiver amortization
      installments for such plan year with respect to the waiver
      amortization bases for each of the 5 preceding plan years.
      (2) Waiver amortization installment
        For purposes of paragraph (1) - 
        (A) Determination
          The waiver amortization installments are the amounts
        necessary to amortize the waiver amortization base of the plan
        for any plan year in level annual installments over a period of
        5 plan years beginning with the succeeding plan year.
        (B) Waiver installment
          The waiver amortization installment for any plan year in the
        5-year period under subparagraph (A) with respect to any waiver
        amortization base is the annual installment determined under
        subparagraph (A) for that year for that base.
      (3) Interest rate
        In determining any waiver amortization installment under this
      subsection, the plan sponsor shall use the segment rates
      determined under subparagraph (C) of subsection (h)(2), applied
      under rules similar to the rules of subparagraph (B) of
      subsection (h)(2).
      (4) Waiver amortization base
        The waiver amortization base of a plan for a plan year is the
      amount of the waived funding deficiency (if any) for such plan
      year under section 1082(c) of this title.
      (5) Early deemed amortization upon attainment of funding target
        In any case in which the funding shortfall of a plan for a plan
      year is zero, for purposes of determining the waiver amortization
      charge for such plan year and succeeding plan years, the waiver
      amortization bases for all preceding plan years (and all waiver
      amortization installments determined with respect to such bases)
      shall be reduced to zero.
    (f) Reduction of minimum required contribution by prefunding
      balance and funding standard carryover balance
      (1) Election to maintain balances
        (A) Prefunding balance
          The plan sponsor of a single-employer plan may elect to
        maintain a prefunding balance.
        (B) Funding standard carryover balance
          (i) In general
            In the case of a single-employer plan described in clause
          (ii), the plan sponsor may elect to maintain a funding
          standard carryover balance, until such balance is reduced to
          zero.
          (ii) Plans maintaining funding standard account in 2007
            A plan is described in this clause if the plan - 
              (I) was in effect for a plan year beginning in 2007, and
              (II) had a positive balance in the funding standard
            account under section 1082(b) of this title as in effect
            for such plan year and determined as of the end of such
            plan year.
      (2) Application of balances
        A prefunding balance and a funding standard carryover balance
      maintained pursuant to this paragraph - 
          (A) shall be available for crediting against the minimum
        required contribution, pursuant to an election under paragraph
        (3),
          (B) shall be applied as a reduction in the amount treated as
        the value of plan assets for purposes of this section, to the
        extent provided in paragraph (4), and
          (C) may be reduced at any time, pursuant to an election under
        paragraph (5).
      (3) Election to apply balances against minimum required
        contribution
        (A) In general
          Except as provided in subparagraphs (B) and (C), in the case
        of any plan year in which the plan sponsor elects to credit
        against the minimum required contribution for the current plan
        year all or a portion of the prefunding balance or the funding
        standard carryover balance for the current plan year (not in
        excess of such minimum required contribution), the minimum
        required contribution for the plan year shall be reduced as of
        the first day of the plan year by the amount so credited by the
        plan sponsor. For purposes of the preceding sentence, the
        minimum required contribution shall be determined after taking
        into account any waiver under section 1082(c) of this title.
        (B) Coordination with funding standard carryover balance
          To the extent that any plan has a funding standard carryover
        balance greater than zero, no amount of the prefunding balance
        of such plan may be credited under this paragraph in reducing
        the minimum required contribution.
        (C) Limitation for underfunded plans
          The preceding provisions of this paragraph shall not apply
        for any plan year if the ratio (expressed as a percentage)
        which - 
            (i) the value of plan assets for the preceding plan year
          (as reduced under paragraph (4)(C)), bears to
            (ii) the funding target of the plan for the preceding plan
          year (determined without regard to subsection (i)(1)),

        is less than 80 percent. In the case of plan years beginning in
        2008, the ratio under this subparagraph may be determined using
        such methods of estimation as the Secretary of the Treasury may
        prescribe.
      (4) Effect of balances on amounts treated as value of plan assets
        In the case of any plan maintaining a prefunding balance or a
      funding standard carryover balance pursuant to this subsection,
      the amount treated as the value of plan assets shall be deemed to
      be such amount, reduced as provided in the following
      subparagraphs:
        (A) Applicability of shortfall amortization base
          For purposes of subsection (c)(5), the value of plan assets
        is deemed to be such amount, reduced by the amount of the
        prefunding balance, but only if an election under paragraph (2)
        applying any portion of the prefunding balance in reducing the
        minimum required contribution is in effect for the plan year.
        (B) Determination of excess assets, funding shortfall, and
          funding target attainment percentage
          (i) In general
            For purposes of subsections (a), (c)(4)(B), and (d)(2)(A),
          the value of plan assets is deemed to be such amount, reduced
          by the amount of the prefunding balance and the funding
          standard carryover balance.
          (ii) Special rule for certain binding agreements with PBGC
            For purposes of subsection (c)(4)(B), the value of plan
          assets shall not be deemed to be reduced for a plan year by
          the amount of the specified balance if, with respect to such
          balance, there is in effect for a plan year a binding written
          agreement with the Pension Benefit Guaranty Corporation which
          provides that such balance is not available to reduce the
          minimum required contribution for the plan year. For purposes
          of the preceding sentence, the term "specified balance" means
          the prefunding balance or the funding standard carryover
          balance, as the case may be.
        (C) Availability of balances in plan year for crediting against
          minimum required contribution
          For purposes of paragraph (3)(C)(i) of this subsection, the
        value of plan assets is deemed to be such amount, reduced by
        the amount of the prefunding balance.
      (5) Election to reduce balance prior to determinations of value
        of plan assets and crediting against minimum required
        contribution
        (A) In general
          The plan sponsor may elect to reduce by any amount the
        balance of the prefunding balance and the funding standard
        carryover balance for any plan year (but not below zero). Such
        reduction shall be effective prior to any determination of the
        value of plan assets for such plan year under this section and
        application of the balance in reducing the minimum required
        contribution for such plan for such plan year pursuant to an
        election under paragraph (2).
        (B) Coordination between prefunding balance and funding
          standard carryover balance
          To the extent that any plan has a funding standard carryover
        balance greater than zero, no election may be made under
        subparagraph (A) with respect to the prefunding balance.
      (6) Prefunding balance
        (A) In general
          A prefunding balance maintained by a plan shall consist of a
        beginning balance of zero, increased and decreased to the
        extent provided in subparagraphs (B) and (C), and adjusted
        further as provided in paragraph (8).
        (B) Increases
          (i) In general
            As of the first day of each plan year beginning after 2008,
          the prefunding balance of a plan shall be increased by the
          amount elected by the plan sponsor for the plan year. Such
          amount shall not exceed the excess (if any) of - 
              (I) the aggregate total of employer contributions to the
            plan for the preceding plan year, over - 
              (II) the minimum required contribution for such preceding
            plan year.
          (ii) Adjustments for interest
            Any excess contributions under clause (i) shall be properly
          adjusted for interest accruing for the periods between the
          first day of the current plan year and the dates on which the
          excess contributions were made, determined by using the
          effective interest rate for the preceding plan year and by
          treating contributions as being first used to satisfy the
          minimum required contribution.
          (iii) Certain contributions necessary to avoid benefit
            limitations disregarded
            The excess described in clause (i) with respect to any
          preceding plan year shall be reduced (but not below zero) by
          the amount of contributions an employer would be required to
          make under paragraph (1), (2), or (4) of section 1056(g) of
          this title to avoid a benefit limitation which would
          otherwise be imposed under such paragraph for the preceding
          plan year. Any contribution which may be taken into account
          in satisfying the requirements of more than 1 of such
          paragraphs shall be taken into account only once for purposes
          of this clause.
        (C) Decrease
          The prefunding balance of a plan shall be decreased (but not
        below zero) by - 
            (i) as of the first day of each plan year after 2008, the
          amount of such balance credited under paragraph (2) (if any)
          in reducing the minimum required contribution of the plan for
          the preceding plan year, and
            (ii) as of the time specified in paragraph (5)(A), any
          reduction in such balance elected under paragraph (5).
      (7) Funding standard carryover balance
        (A) In general
          A funding standard carryover balance maintained by a plan
        shall consist of a beginning balance determined under
        subparagraph (B), decreased to the extent provided in
        subparagraph (C), and adjusted further as provided in paragraph
        (8).
        (B) Beginning balance
          The beginning balance of the funding standard carryover
        balance shall be the positive balance described in paragraph
        (1)(B)(ii)(II).
        (C) Decreases
          The funding standard carryover balance of a plan shall be
        decreased (but not below zero) by - 
            (i) as of the first day of each plan year after 2008, the
          amount of such balance credited under paragraph (2) (if any)
          in reducing the minimum required contribution of the plan for
          the preceding plan year, and
            (ii) as of the time specified in paragraph (5)(A), any
          reduction in such balance elected under paragraph (5).
      (8) Adjustments for investment experience
        In determining the prefunding balance or the funding standard
      carryover balance of a plan as of the first day of the plan year,
      the plan sponsor shall, in accordance with regulations prescribed
      by the Secretary of the Treasury, adjust such balance to reflect
      the rate of return on plan assets for the preceding plan year.
      Notwithstanding subsection (g)(3), such rate of return shall be
      determined on the basis of fair market value and shall properly
      take into account, in accordance with such regulations, all
      contributions, distributions, and other plan payments made during
      such period.
      (9) Elections
        Elections under this subsection shall be made at such times,
      and in such form and manner, as shall be prescribed in
      regulations of the Secretary of the Treasury.
    (g) Valuation of plan assets and liabilities
      (1) Timing of determinations
        Except as otherwise provided under this subsection, all
      determinations under this section for a plan year shall be made
      as of the valuation date of the plan for such plan year.
      (2) Valuation date
        For purposes of this section - 
        (A) In general
          Except as provided in subparagraph (B), the valuation date of
        a plan for any plan year shall be the first day of the plan
        year.
        (B) Exception for small plans
          If, on each day during the preceding plan year, a plan had
        100 or fewer participants, the plan may designate any day
        during the plan year as its valuation date for such plan year
        and succeeding plan years. For purposes of this subparagraph,
        all defined benefit plans which are single-employer plans and
        are maintained by the same employer (or any member of such
        employer's controlled group) shall be treated as 1 plan, but
        only participants with respect to such employer or member shall
        be taken into account.
        (C) Application of certain rules in determination of plan size
          For purposes of this paragraph - 
          (i) Plans not in existence in preceding year
            In the case of the first plan year of any plan,
          subparagraph (B) shall apply to such plan by taking into
          account the number of participants that the plan is
          reasonably expected to have on days during such first plan
          year.
          (ii) Predecessors
            Any reference in subparagraph (B) to an employer shall
          include a reference to any predecessor of such employer.
      (3) Determination of value of plan assets
        For purposes of this section - 
        (A) In general
          Except as provided in subparagraph (B), the value of plan
        assets shall be the fair market value of the assets.
        (B) Averaging allowed
          A plan may determine the value of plan assets on the basis of
        the averaging of fair market values, but only if such method - 
            (i) is permitted under regulations prescribed by the
          Secretary of the Treasury,
            (ii) does not provide for averaging of such values over
          more than the period beginning on the last day of the 25th
          month preceding the month in which the valuation date occurs
          and ending on the valuation date (or a similar period in the
          case of a valuation date which is not the 1st day of a
          month), and
            (iii) does not result in a determination of the value of
          plan assets which, at any time, is lower than 90 percent or
          greater than 110 percent of the fair market value of such
          assets at such time.

        Any such averaging shall be adjusted for contributions and
        distributions (as provided by the Secretary of the Treasury).
      (4) Accounting for contribution receipts
        For purposes of determining the value of assets under paragraph
      (3) - 
        (A) Prior year contributions
          If - 
            (i) an employer makes any contribution to the plan after
          the valuation date for the plan year in which the
          contribution is made, and
            (ii) the contribution is for a preceding plan year,

        the contribution shall be taken into account as an asset of the
        plan as of the valuation date, except that in the case of any
        plan year beginning after 2008, only the present value
        (determined as of the valuation date) of such contribution may
        be taken into account. For purposes of the preceding sentence,
        present value shall be determined using the effective interest
        rate for the preceding plan year to which the contribution is
        properly allocable.
        (B) Special rule for current year contributions made before
          valuation date
          If any contributions for any plan year are made to or under
        the plan during the plan year but before the valuation date for
        the plan year, the assets of the plan as of the valuation date
        shall not include - 
            (i) such contributions, and
            (ii) interest on such contributions for the period between
          the date of the contributions and the valuation date,
          determined by using the effective interest rate for the plan
          year.
    (h) Actuarial assumptions and methods
      (1) In general
        Subject to this subsection, the determination of any present
      value or other computation under this section shall be made on
      the basis of actuarial assumptions and methods - 
          (A) each of which is reasonable (taking into account the
        experience of the plan and reasonable expectations), and
          (B) which, in combination, offer the actuary's best estimate
        of anticipated experience under the plan.
      (2) Interest rates
        (A) Effective interest rate
          For purposes of this section, the term "effective interest
        rate" means, with respect to any plan for any plan year, the
        single rate of interest which, if used to determine the present
        value of the plan's accrued or earned benefits referred to in
        subsection (d)(1), would result in an amount equal to the
        funding target of the plan for such plan year.
        (B) Interest rates for determining funding target
          For purposes of determining the funding target and normal
        cost of a plan for any plan year, the interest rate used in
        determining the present value of the benefits of the plan shall
        be - 
            (i) in the case of benefits reasonably determined to be
          payable during the 5-year period beginning on the first day
          of the plan year, the first segment rate with respect to the
          applicable month,
            (ii) in the case of benefits reasonably determined to be
          payable during the 15-year period beginning at the end of the
          period described in clause (i), the second segment rate with
          respect to the applicable month, and
            (iii) in the case of benefits reasonably determined to be
          payable after the period described in clause (ii), the third
          segment rate with respect to the applicable month.
        (C) Segment rates
          For purposes of this paragraph - 
          (i) First segment rate
            The term "first segment rate" means, with respect to any
          month, the single rate of interest which shall be determined
          by the Secretary of the Treasury for such month on the basis
          of the corporate bond yield curve for such month, taking into
          account only that portion of such yield curve which is based
          on bonds maturing during the 5-year period commencing with
          such month.
          (ii) Second segment rate
            The term "second segment rate" means, with respect to any
          month, the single rate of interest which shall be determined
          by the Secretary of the Treasury for such month on the basis
          of the corporate bond yield curve for such month, taking into
          account only that portion of such yield curve which is based
          on bonds maturing during the 15-year period beginning at the
          end of the period described in clause (i).
          (iii) Third segment rate
            The term "third segment rate" means, with respect to any
          month, the single rate of interest which shall be determined
          by the Secretary of the Treasury for such month on the basis
          of the corporate bond yield curve for such month, taking into
          account only that portion of such yield curve which is based
          on bonds maturing during periods beginning after the period
          described in clause (ii).
        (D) Corporate bond yield curve
          For purposes of this paragraph - 
          (i) In general
            The term "corporate bond yield curve" means, with respect
          to any month, a yield curve which is prescribed by the
          Secretary of the Treasury for such month and which reflects
          the average, for the 24-month period ending with the month
          preceding such month, of monthly yields on investment grade
          corporate bonds with varying maturities and that are in the
          top 3 quality levels available.
          (ii) Election to use yield curve
            Solely for purposes of determining the minimum required
          contribution under this section, the plan sponsor may, in
          lieu of the segment rates determined under subparagraph (C),
          elect to use interest rates under the corporate bond yield
          curve. For purposes of the preceding sentence such curve
          shall be determined without regard to the 24-month averaging
          described in clause (i). Such election, once made, may be
          revoked only with the consent of the Secretary of the
          Treasury.
        (E) Applicable month
          For purposes of this paragraph, the term "applicable month"
        means, with respect to any plan for any plan year, the month
        which includes the valuation date of such plan for such plan
        year or, at the election of the plan sponsor, any of the 4
        months which precede such month. Any election made under this
        subparagraph shall apply to the plan year for which the
        election is made and all succeeding plan years, unless the
        election is revoked with the consent of the Secretary of the
        Treasury.
        (F) Publication requirements
          The Secretary of the Treasury shall publish for each month
        the corporate bond yield curve (and the corporate bond yield
        curve reflecting the modification described in section
        1055(g)(3)(B)(iii)(I) of this title) for such month and each of
        the rates determined under subparagraph (B) for such month. The
        Secretary of the Treasury shall also publish a description of
        the methodology used to determine such yield curve and such
        rates which is sufficiently detailed to enable plans to make
        reasonable projections regarding the yield curve and such rates
        for future months based on the plan's projection of future
        interest rates.
        (G) Transition rule
          (i) In general
            Notwithstanding the preceding provisions of this paragraph,
          for plan years beginning in 2008 or 2009, the first, second,
          or third segment rate for a plan with respect to any month
          shall be equal to the sum of - 
              (I) the product of such rate for such month determined
            without regard to this subparagraph, multiplied by the
            applicable percentage, and
              (II) the product of the rate determined under the rules
            of section 1082(b)(5)(B)(ii)(II) of this title (as in
            effect for plan years beginning in 2007), multiplied by a
            percentage equal to 100 percent minus the applicable
            percentage.
          (ii) Applicable percentage
            For purposes of clause (i), the applicable percentage is 33
          1/3  percent for plan years beginning in 2008 and 66 2/3 
          percent for plan years beginning in 2009.
          (iii) New plans ineligible
            Clause (i) shall not apply to any plan if the first plan
          year of the plan begins after December 31, 2007.
          (iv) Election
            The plan sponsor may elect not to have this subparagraph
          apply. Such election, once made, may be revoked only with the
          consent of the Secretary of the Treasury.
      (3) Mortality tables
        (A) In general
          Except as provided in subparagraph (C) or (D), the Secretary
        of the Treasury shall by regulation prescribe mortality tables
        to be used in determining any present value or making any
        computation under this section. Such tables shall be based on
        the actual experience of pension plans and projected trends in
        such experience. In prescribing such tables, the Secretary of
        the Treasury shall take into account results of available
        independent studies of mortality of individuals covered by
        pension plans.
        (B) Periodic revision
          The Secretary of the Treasury shall (at least every 10 years)
        make revisions in any table in effect under subparagraph (A) to
        reflect the actual experience of pension plans and projected
        trends in such experience.
        (C) Substitute mortality table
          (i) In general
            Upon request by the plan sponsor and approval by the
          Secretary of the Treasury, a mortality table which meets the
          requirements of clause (iii) shall be used in determining any
          present value or making any computation under this section
          during the period of consecutive plan years (not to exceed
          10) specified in the request.
          (ii) Early termination of period
            Notwithstanding clause (i), a mortality table described in
          clause (i) shall cease to be in effect as of the earliest of -
           
              (I) the date on which there is a significant change in
            the participants in the plan by reason of a plan spinoff or
            merger or otherwise, or
              (II) the date on which the plan actuary determines that
            such table does not meet the requirements of clause (iii).
          (iii) Requirements
            A mortality table meets the requirements of this clause if -
           
              (I) there is a sufficient number of plan participants,
            and the pension plans have been maintained for a sufficient
            period of time, to have credible information necessary for
            purposes of subclause (II), and
              (II) such table reflects the actual experience of the
            pension plans maintained by the sponsor and projected
            trends in general mortality experience.
          (iv) All plans in controlled group must use separate table
            Except as provided by the Secretary of the Treasury, a plan
          sponsor may not use a mortality table under this subparagraph
          for any plan maintained by the plan sponsor unless - 
              (I) a separate mortality table is established and used
            under this subparagraph for each other plan maintained by
            the plan sponsor and if the plan sponsor is a member of a
            controlled group, each member of the controlled group, and
              (II) the requirements of clause (iii) are met separately
            with respect to the table so established for each such
            plan, determined by only taking into account the
            participants of such plan, the time such plan has been in
            existence, and the actual experience of such plan.
          (v) Deadline for submission and disposition of application
            (I) Submission
              The plan sponsor shall submit a mortality table to the
            Secretary of the Treasury for approval under this
            subparagraph at least 7 months before the 1st day of the
            period described in clause (i).
            (II) Disposition
              Any mortality table submitted to the Secretary of the
            Treasury for approval under this subparagraph shall be
            treated as in effect as of the 1st day of the period
            described in clause (i) unless the Secretary of the
            Treasury, during the 180-day period beginning on the date
            of such submission, disapproves of such table and provides
            the reasons that such table fails to meet the requirements
            of clause (iii). The 180-day period shall be extended upon
            mutual agreement of the Secretary of the Treasury and the
            plan sponsor.
        (D) Separate mortality tables for the disabled
          Notwithstanding subparagraph (A) - 
          (i) In general
            The Secretary of the Treasury shall establish mortality
          tables which may be used (in lieu of the tables under
          subparagraph (A)) under this subsection for individuals who
          are entitled to benefits under the plan on account of
          disability. The Secretary of the Treasury shall establish
          separate tables for individuals whose disabilities occur in
          plan years beginning before January 1, 1995, and for
          individuals whose disabilities occur in plan years beginning
          on or after such date.
          (ii) Special rule for disabilities occurring after 1994
            In the case of disabilities occurring in plan years
          beginning after December 31, 1994, the tables under clause
          (i) shall apply only with respect to individuals described in
          such subclause who are disabled within the meaning of title
          II of the Social Security Act and the regulations thereunder.
          (iii) Periodic revision
            The Secretary of the Treasury shall (at least every 10
          years) make revisions in any table in effect under clause (i)
          to reflect the actual experience of pension plans and
          projected trends in such experience.
      (4) Probability of benefit payments in the form of lump sums or
        other optional forms
        For purposes of determining any present value or making any
      computation under this section, there shall be taken into account
      - 
          (A) the probability that future benefit payments under the
        plan will be made in the form of optional forms of benefits
        provided under the plan (including lump sum distributions,
        determined on the basis of the plan's experience and other
        related assumptions), and
          (B) any difference in the present value of such future
        benefit payments resulting from the use of actuarial
        assumptions, in determining benefit payments in any such
        optional form of benefits, which are different from those
        specified in this subsection.
      (5) Approval of large changes in actuarial assumptions
        (A) In general
          No actuarial assumption used to determine the funding target
        for a plan to which this paragraph applies may be changed
        without the approval of the Secretary of the Treasury.
        (B) Plans to which paragraph applies
          This paragraph shall apply to a plan only if - 
            (i) the plan is a single-employer plan to which subchapter
          III applies,
            (ii) the aggregate unfunded vested benefits as of the close
          of the preceding plan year (as determined under section
          1306(a)(3)(E)(iii) of this title) of such plan and all other
          plans maintained by the contributing sponsors (as defined in
          section 1301(a)(13) of this title) and members of such
          sponsors' controlled groups (as defined in section
          1301(a)(14) of this title) which are covered by subchapter
          III (disregarding plans with no unfunded vested benefits)
          exceed $50,000,000, and
            (iii) the change in assumptions (determined after taking
          into account any changes in interest rate and mortality
          table) results in a decrease in the funding shortfall of the
          plan for the current plan year that exceeds $50,000,000, or
          that exceeds $5,000,000 and that is 5 percent or more of the
          funding target of the plan before such change.
    (i) Special rules for at-risk plans
      (1) Funding target for plans in at-risk status
        (A) In general
          In the case of a plan which is in at-risk status for a plan
        year, the funding target of the plan for the plan year shall be
        equal to the sum of - 
            (i) the present value of all benefits accrued or earned
          under the plan as of the beginning of the plan year, as
          determined by using the additional actuarial assumptions
          described in subparagraph (B), and
            (ii) in the case of a plan which also has been in at-risk
          status for at least 2 of the 4 preceding plan years, a
          loading factor determined under subparagraph (C).
        (B) Additional actuarial assumptions
          The actuarial assumptions described in this subparagraph are
        as follows:
            (i) All employees who are not otherwise assumed to retire
          as of the valuation date but who will be eligible to elect
          benefits during the plan year and the 10 succeeding plan
          years shall be assumed to retire at the earliest retirement
          date under the plan but not before the end of the plan year
          for which the at-risk funding target and at-risk target
          normal cost are being determined.
            (ii) All employees shall be assumed to elect the retirement
          benefit available under the plan at the assumed retirement
          age (determined after application of clause (i)) which would
          result in the highest present value of benefits.
        (C) Loading factor
          The loading factor applied with respect to a plan under this
        paragraph for any plan year is the sum of - 
            (i) $700, times the number of participants in the plan,
          plus
            (ii) 4 percent of the funding target (determined without
          regard to this paragraph) of the plan for the plan year.
      (2) Target normal cost of at-risk plans
        In the case of a plan which is in at-risk status for a plan
      year, the target normal cost of the plan for such plan year shall
      be equal to the sum of - 
          (A) the present value of all benefits which are expected to
        accrue or be earned under the plan during the plan year,
        determined using the additional actuarial assumptions described
        in paragraph (1)(B), plus
          (B) in the case of a plan which also has been in at-risk
        status for at least 2 of the 4 preceding plan years, a loading
        factor equal to 4 percent of the target normal cost (determined
        without regard to this paragraph) of the plan for the plan
        year.
      (3) Minimum amount
        In no event shall - 
          (A) the at-risk funding target be less than the funding
        target, as determined without regard to this subsection, or
          (B) the at-risk target normal cost be less than the target
        normal cost, as determined without regard to this subsection.
      (4) Determination of at-risk status
        For purposes of this subsection - 
        (A) In general
          A plan is in at-risk status for a plan year if - 
            (i) the funding target attainment percentage for the
          preceding plan year (determined under this section without
          regard to this subsection) is less than 80 percent, and
            (ii) the funding target attainment percentage for the
          preceding plan year (determined under this section by using
          the additional actuarial assumptions described in paragraph
          (1)(B) in computing the funding target) is less than 70
          percent.
        (B) Transition rule
          In the case of plan years beginning in 2008, 2009, and 2010,
        subparagraph (A)(i) shall be applied by substituting the
        following percentages for "80 percent":
            (i) 65 percent in the case of 2008.
            (ii) 70 percent in the case of 2009.
            (iii) 75 percent in the case of 2010.

        In the case of plan years beginning in 2008, the funding target
        attainment percentage for the preceding plan year under
        subparagraph (A)(ii) may be determined using such methods of
        estimation as the Secretary of the Treasury may provide.
        (C) Special rule for employees offered early retirement in 2006
          (i) In general
            For purposes of subparagraph (A)(ii), the additional
          actuarial assumptions described in paragraph (1)(B) shall not
          be taken into account with respect to any employee if - 
              (I) such employee is employed by a specified automobile
            manufacturer,
              (II) such employee is offered a substantial amount of
            additional cash compensation, substantially enhanced
            retirement benefits under the plan, or materially reduced
            employment duties on the condition that by a specified date
            (not later than December 31, 2010) the employee retires (as
            defined under the terms of the plan),
              (III) such offer is made during 2006 and pursuant to a
            bona fide retirement incentive program and requires, by the
            terms of the offer, that such offer can be accepted not
            later than a specified date (not later than December 31,
            2006), and
              (IV) such employee does not elect to accept such offer
            before the specified date on which the offer expires.
          (ii) Specified automobile manufacturer
            For purposes of clause (i), the term "specified automobile
          manufacturer" means - 
              (I) any manufacturer of automobiles, and
              (II) any manufacturer of automobile parts which supplies
            such parts directly to a manufacturer of automobiles and
            which, after a transaction or series of transactions ending
            in 1999, ceased to be a member of a controlled group which
            included such manufacturer of automobiles.
      (5) Transition between applicable funding targets and between
        applicable target normal costs
        (A) In general
          In any case in which a plan which is in at-risk status for a
        plan year has been in such status for a consecutive period of
        fewer than 5 plan years, the applicable amount of the funding
        target and of the target normal cost shall be, in lieu of the
        amount determined without regard to this paragraph, the sum of -
         
            (i) the amount determined under this section without regard
          to this subsection, plus
            (ii) the transition percentage for such plan year of the
          excess of the amount determined under this subsection
          (without regard to this paragraph) over the amount determined
          under this section without regard to this subsection.
        (B) Transition percentage
          For purposes of subparagraph (A), the transition percentage
        shall be determined in accordance with the following table:

       If the consecutive number of                                The
        years (including the plan year)                     transition
        the plan is in at-risk status is -                  percentage
                                                                 is - 
      1                                                           20  
      2                                                           40  
      3                                                           60  
      4                                                            80.
        (C) Years before effective date
          For purposes of this paragraph, plan years beginning before
        2008 shall not be taken into account.
      (6) Small plan exception
        If, on each day during the preceding plan year, a plan had 500
      or fewer participants, the plan shall not be treated as in at-
      risk status for the plan year. For purposes of this paragraph,
      all defined benefit plans (other than multiemployer plans)
      maintained by the same employer (or any member of such employer's
      controlled group) shall be treated as 1 plan, but only
      participants with respect to such employer or member shall be
      taken into account and the rules of subsection (g)(2)(C) shall
      apply.
    (j) Payment of minimum required contributions
      (1) In general
        For purposes of this section, the due date for any payment of
      any minimum required contribution for any plan year shall be 8
      1/2  months after the close of the plan year.
      (2) Interest
        Any payment required under paragraph (1) for a plan year that
      is made on a date other than the valuation date for such plan
      year shall be adjusted for interest accruing for the period
      between the valuation date and the payment date, at the effective
      rate of interest for the plan for such plan year.
      (3) Accelerated quarterly contribution schedule for underfunded
        plans
        (A) Failure to timely make required installment
          In any case in which the plan has a funding shortfall for the
        preceding plan year, the employer maintaining the plan shall
        make the required installments under this paragraph and if the
        employer fails to pay the full amount of a required installment
        for the plan year, then the amount of interest charged under
        paragraph (2) on the underpayment for the period of
        underpayment shall be determined by using a rate of interest
        equal to the rate otherwise used under paragraph (2) plus 5
        percentage points.
        (B) Amount of underpayment, period of underpayment
          For purposes of subparagraph (A) - 
          (i) Amount
            The amount of the underpayment shall be the excess of - 
              (I) the required installment, over
              (II) the amount (if any) of the installment contributed
            to or under the plan on or before the due date for the
            installment.
          (ii) Period of underpayment
            The period for which any interest is charged under this
          paragraph with respect to any portion of the underpayment
          shall run from the due date for the installment to the date
          on which such portion is contributed to or under the plan.
          (iii) Order of crediting contributions
            For purposes of clause (i)(II), contributions shall be
          credited against unpaid required installments in the order in
          which such installments are required to be paid.
        (C) Number of required installments; due dates
          For purposes of this paragraph - 
          (i) Payable in 4 installments
            There shall be 4 required installments for each plan year.
          (ii) Time for payment of installments
            The due dates for required installments are set forth in
          the following table:


    In the case of the                   The due date is:               
    following required                                                  
    installment:                                                        
      1st                                April 15                       
      2nd                                July 15                        
      3rd                                October 15                     
      4th                                January 15 of the following    
                                          year.                         
    --------------------------------------------------------------------

        (D) Amount of required installment
          For purposes of this paragraph - 
          (i) In general
            The amount of any required installment shall be 25 percent
          of the required annual payment.
          (ii) Required annual payment
            For purposes of clause (i), the term "required annual
          payment" means the lesser of - 
              (I) 90 percent of the minimum required contribution
            (determined without regard to this subsection) to the plan
            for the plan year under this section, or
              (II) 100 percent of the minimum required contribution
            (determined without regard to this subsection or to any
            waiver under section 1082(c) of this title) to the plan for
            the preceding plan year.

          Subclause (II) shall not apply if the preceding plan year
          referred to in such clause was not a year of 12 months.
        (E) Fiscal years and short years
          (i) Fiscal years
            In applying this paragraph to a plan year beginning on any
          date other than January 1, there shall be substituted for the
          months specified in this paragraph, the months which
          correspond thereto.
          (ii) Short plan year
            This subparagraph shall be applied to plan years of less
          than 12 months in accordance with regulations prescribed by
          the Secretary of the Treasury.
      (4) Liquidity requirement in connection with quarterly
        contributions
        (A) In general
          A plan to which this paragraph applies shall be treated as
        failing to pay the full amount of any required installment
        under paragraph (3) to the extent that the value of the liquid
        assets paid in such installment is less than the liquidity
        shortfall (whether or not such liquidity shortfall exceeds the
        amount of such installment required to be paid but for this
        paragraph).
        (B) Plans to which paragraph applies
          This paragraph shall apply to a plan (other than a plan
        described in subsection (g)(2)(B)) which - 
            (i) is required to pay installments under paragraph (3) for
          a plan year, and
            (ii) has a liquidity shortfall for any quarter during such
          plan year.
        (C) Period of underpayment
          For purposes of paragraph (3)(A), any portion of an
        installment that is treated as not paid under subparagraph (A)
        shall continue to be treated as unpaid until the close of the
        quarter in which the due date for such installment occurs.
        (D) Limitation on increase
          If the amount of any required installment is increased by
        reason of subparagraph (A), in no event shall such increase
        exceed the amount which, when added to prior installments for
        the plan year, is necessary to increase the funding target
        attainment percentage of the plan for the plan year (taking
        into account the expected increase in funding target due to
        benefits accruing or earned during the plan year) to 100
        percent.
        (E) Definitions
          For purposes of this paragraph - 
          (i) Liquidity shortfall
            The term "liquidity shortfall" means, with respect to any
          required installment, an amount equal to the excess (as of
          the last day of the quarter for which such installment is
          made) of - 
              (I) the base amount with respect to such quarter, over
              (II) the value (as of such last day) of the plan's liquid
            assets.
          (ii) Base amount
            (I) In general
              The term "base amount" means, with respect to any
            quarter, an amount equal to 3 times the sum of the adjusted
            disbursements from the plan for the 12 months ending on the
            last day of such quarter.
            (II) Special rule
              If the amount determined under subclause (I) exceeds an
            amount equal to 2 times the sum of the adjusted
            disbursements from the plan for the 36 months ending on the
            last day of the quarter and an enrolled actuary certifies
            to the satisfaction of the Secretary of the Treasury that
            such excess is the result of nonrecurring circumstances,
            the base amount with respect to such quarter shall be
            determined without regard to amounts related to those
            nonrecurring circumstances.
          (iii) Disbursements from the plan
            The term "disbursements from the plan" means all
          disbursements from the trust, including purchases of
          annuities, payments of single sums and other benefits, and
          administrative expenses.
          (iv) Adjusted disbursements
            The term "adjusted disbursements" means disbursements from
          the plan reduced by the product of - 
              (I) the plan's funding target attainment percentage for
            the plan year, and
              (II) the sum of the purchases of annuities, payments of
            single sums, and such other disbursements as the Secretary
            of the Treasury shall provide in regulations.
          (v) Liquid assets
            The term "liquid assets" means cash, marketable securities,
          and such other assets as specified by the Secretary of the
          Treasury in regulations.
          (vi) Quarter
            The term "quarter" means, with respect to any required
          installment, the 3-month period preceding the month in which
          the due date for such installment occurs.
        (F) Regulations
          The Secretary of the Treasury may prescribe such regulations
        as are necessary to carry out this paragraph.
    (k) Imposition of lien where failure to make required contributions
      (1) In general
        In the case of a plan to which this subsection applies (as
      provided under paragraph (2)), if - 
          (A) any person fails to make a contribution payment required
        by section 1082 of this title and this section before the due
        date for such payment, and
          (B) the unpaid balance of such payment (including interest),
        when added to the aggregate unpaid balance of all preceding
        such payments for which payment was not made before the due
        date (including interest), exceeds $1,000,000,

      then there shall be a lien in favor of the plan in the amount
      determined under paragraph (3) upon all property and rights to
      property, whether real or personal, belonging to such person and
      any other person who is a member of the same controlled group of
      which such person is a member.
      (2) Plans to which subsection applies
        This subsection shall apply to a single-employer plan covered
      under section 1321 of this title for any plan year for which the
      funding target attainment percentage (as defined in subsection
      (d)(2)) of such plan is less than 100 percent.
      (3) Amount of lien
        For purposes of paragraph (1), the amount of the lien shall be
      equal to the aggregate unpaid balance of contribution payments
      required under this section and section 1082 of this title for
      which payment has not been made before the due date.
      (4) Notice of failure; lien
        (A) Notice of failure
          A person committing a failure described in paragraph (1)
        shall notify the Pension Benefit Guaranty Corporation of such
        failure within 10 days of the due date for the required
        contribution payment.
        (B) Period of lien
          The lien imposed by paragraph (1) shall arise on the due date
        for the required contribution payment and shall continue until
        the last day of the first plan year in which the plan ceases to
        be described in paragraph (1)(B). Such lien shall continue to
        run without regard to whether such plan continues to be
        described in paragraph (2) during the period referred to in the
        preceding sentence.
        (C) Certain rules to apply
          Any amount with respect to which a lien is imposed under
        paragraph (1) shall be treated as taxes due and owing the
        United States and rules similar to the rules of subsections
        (c), (d), and (e) of section 1368 of this title shall apply
        with respect to a lien imposed by subsection (a) and the amount
        with respect to such lien.
      (5) Enforcement
        Any lien created under paragraph (1) may be perfected and
      enforced only by the Pension Benefit Guaranty Corporation, or at
      the direction of the Pension Benefit Guaranty Corporation, by the
      contributing sponsor (or any member of the controlled group of
      the contributing sponsor).
      (6) Definitions
        For purposes of this subsection - 
        (A) Contribution payment
          The term "contribution payment" means, in connection with a
        plan, a contribution payment required to be made to the plan,
        including any required installment under paragraphs (3) and (4)
        of subsection (j).
        (B) Due date; required installment
          The terms "due date" and "required installment" have the
        meanings given such terms by subsection (j), except that in the
        case of a payment other than a required installment, the due
        date shall be the date such payment is required to be made
        under this section.
        (C) Controlled group
          The term "controlled group" means any group treated as a
        single employer under subsections (b), (c), (m), and (o) of
        section 414 of title 26.
    (l) Qualified transfers to health benefit accounts
      In the case of a qualified transfer (as defined in section 420 of
    title 26), any assets so transferred shall not, for purposes of
    this section, be treated as assets in the plan.

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Internal Revenue Code of 1986, referred to in subsec. (f), is
    classified generally to Title 26, Internal Revenue Code.


-MISC1-
                                AMENDMENTS                            
      1989 - Subsec. (a). Pub. L. 101-239, Sec. 7881(b)(7),
    redesignated pars. (A) and (B) as pars. (1) and (2), respectively,
    realigned margins, redesignated cls. (i) and (ii) as subpars. (A)
    and (B), respectively, of par. (1), and made technical correction
    to reference to section 6621(b) of title 26 in par. (2) resulting
    in no change in text.
      Subsec. (a)(1)(B). Pub. L. 101-239, Sec. 7881(b)(6)(B)(ii),
    inserted "(including adjustments under section 1082(b)(5)(B) of
    this title)" after "costs".
      Subsec. (e)(1). Pub. L. 101-239, Sec. 7881(c)(2), substituted
    "for benefit liabilities" for "the benefit liabilities" in last
    sentence.
      Subsec. (f). Pub. L. 101-239, Sec. 7891(a)(1), substituted
    "Internal Revenue Code of 1986" for "Internal Revenue Code of
    1954".
      Pub. L. 101-239, Sec. 7881(b)(8), transferred subsec. (f) to
    follow immediately after subsec. (e).
      1987 - Subsec. (a). Pub. L. 100-203, Sec. 9306(a)(2)(B),
    substituted "temporary substantial business hardship (substantial
    business hardship in the case of a multiemployer plan)" for
    "substantial business hardship".
      Pub. L. 100-203, Sec. 9306(b)(2), substituted "more than 3 of any
    15 (5 of any 15 in the case of a multiemployer plan)" for "more
    than 5 of any 15".
      Pub. L. 100-203, Sec. 9306(c)(2)(A), substituted "The interest
    rate used for purposes of computing the amortization charge
    described in subsection (b)(2)(C) of this section for any plan year
    shall be - " and pars. (A) and (B) for "The interest rate used for
    purposes of computing the amortization charge described in section
    1082(b)(2)(C) of this title for a variance granted under this
    subsection shall be the rate determined under section 6621(b) of
    title 26."
      Subsec. (b). Pub. L. 100-203, Sec. 9306(a)(2)(B), substituted
    "temporary substantial business hardship (substantial business
    hardship in the case of a multiemployer plan)" for "substantial
    business hardship".
      Subsec. (d)(1). Pub. L. 100-203, Sec. 9306(a)(2)(A), added
    subsec. (d)(1). Former subsec. (d) redesignated (f).
      Subsec. (d)(2). Pub. L. 100-203, Sec. 9306(a)(2)(C), added par.
    (2).
      Subsec. (e)(1). Pub. L. 100-203, Sec. 9306(d)(2), substituted
    "plan, and each affected party (as defined in section 1301(a)(21)
    of this title) other than the Pension Benefit Guaranty Corporation.
    Such notice shall include a description of the extent to which the
    plan is funded for benefits which are guaranteed under subchapter
    III of this chapter and the benefit liabilities." for "plan."
      Subsec. (f). Pub. L. 100-203, Sec. 9306(a)(2)(A), redesignated
    former subsec. (d) as (f).
      1986 - Pub. L. 99-272, Sec. 11015(b)(1)(A), inserted provision
    that the interest rate used for purposes of computing the
    amortization charge described in section 1082(b)(2)(C) of this
    title for a variance granted under this subsection be the rate
    determined under section 6621(b) of title 26.
      Subsec. (e). Pub. L. 99-272, Sec. 11016(c)(2), added subsec. (e).

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Pub. L. 109-280, title I, Sec. 102(c), Aug. 17, 2006, 120 Stat.
    809, provided that: "The amendments made by this section [enacting
    new section 1083 of this title] shall apply with respect to plan
    years beginning after 2007."

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by section 7881(b)(6)(B)(ii), (7), (8), (c)(2) of Pub.
    L. 101-239 effective, except as otherwise provided, as if included
    in the provision of the Pension Protection Act, Pub. L. 100-203,
    Secs. 9302-9346, to which such amendment relates, see section 7882
    of Pub. L. 101-239, set out as a note under section 401 of Title
    26, Internal Revenue Code.
      Amendment by section 7891(a)(1) of Pub. L. 101-239 effective,
    except as otherwise provided, as if included in the provision of
    the Tax Reform Act of 1986, Pub. L. 99-514, to which such amendment
    relates, see section 7891(f) of Pub. L. 101-239, set out as a note
    under section 1002 of this title.

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Amendment by Pub. L. 100-203 applicable in the case of any
    application submitted after Dec. 17, 1987, and any waiver granted
    pursuant to such an application, except that the amendment by
    section 9306(a)(2)(A) of Pub. L. 100-203 applicable to plan years
    beginning after Dec. 31, 1987, amendment by section 9306(b)(2) of
    Pub. L. 100-203 applicable to waivers for plan years beginning
    after Dec. 31, 1987, and amendment by section 9306(d)(2) of Pub. L.
    100-203 applicable to applications submitted more than 90 days
    after Dec. 22, 1987, with certain exceptions and transitional
    rules, see section 9306(f) of Pub. L. 100-203, as amended, set out
    as a note under section 412 of Title 26, Internal Revenue Code.

                     EFFECTIVE DATE OF 1986 AMENDMENT                 
      Amendment by Pub. L. 99-272 effective Jan. 1, 1986, with certain
    exceptions, see section 11019 of Pub. L. 99-272, set out as a note
    under section 1341 of this title.

    APPLICABILITY OF AMENDMENTS BY SUBTITLES A AND B OF TITLE I OF PUB.
                                L. 109-280
      For special rules on applicability of amendments by subtitles A
    (Secs. 101-107) and B (Secs. 111-116) of title I of Pub. L. 109-280
    to certain eligible cooperative plans, PBGC settlement plans, and
    eligible government contractor plans, see sections 104, 105, and
    106 of Pub. L. 109-280, set out as notes under section 401 of Title
    26, Internal Revenue Code.

      MODIFICATION OF TRANSITION RULE TO PENSION FUNDING REQUIREMENTS  
      For modification of transition rule to pension funding
    requirements in the case of a plan that was not required to pay a
    variable rate premium for the plan year beginning in 1996, has not,
    in any plan year beginning after 1995, merged with another plan
    (other than a plan sponsored by an employer that was in 1996 within
    the controlled group of the plan sponsor), and is sponsored by a
    company that is engaged primarily in the interurban or interstate
    passenger bus service, see section 115(a)-(c) of Pub. L. 109-280,
    set out as a note under section 430 of Title 26, Internal Revenue
    Code.

-End-



-CITE-
    29 USC Sec. 1084                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 3 - funding

-HEAD-
    Sec. 1084. Extension of amortization periods

-STATUTE-
    (a) Determinations by Secretary in granting extension
      The period of years required to amortize any unfunded liability
    (described in any clause of subsection (b)(2)(B) of section 1082 of
    this title) of any plan may be extended by the Secretary for a
    period of time (not in excess of 10 years) if he determines that
    such extension would carry out the purposes of this chapter and
    would provide adequate protection for participants under the plan
    and their beneficiaries and if he determines that the failure to
    permit such extension would - 
        (1) result in - 
          (A) a substantial risk to the voluntary continuation of the
        plan, or
          (B) a substantial curtailment of pension benefit levels or
        employee compensation, and

        (2) be adverse to the interests of plan participants in the
      aggregate.

    In the case of a plan other than a multiemployer plan, the interest
    rate applicable for any plan year under any arrangement entered
    into by the Secretary in connection with an extension granted under
    this subsection shall be the greater of (A) 150 percent of the
    Federal mid-term rate (as in effect under section 1274 of title 26
    for the 1st month of such plan year), or (B) the rate of interest
    used under the plan in determining costs. In the case of a
    multiemployer plan, such rate shall be the rate determined under
    section 6621(b) of title 26.
    (b) Amendment of plan
      (1) No amendment of the plan which increases the liabilities of
    the plan by reason of any increase in benefits, any change in the
    accrual of benefits, or any change in the rate at which benefits
    become nonforfeitable under the plan shall be adopted if a waiver
    under section 1083(a) of this title or an extension of time under
    subsection (a) of this section is in effect with respect to the
    plan, or if a plan amendment described in section 1082(c)(8) of
    this title has been made at any time in the preceding 12 months (24
    months in the case of a multiemployer plan). If a plan is amended
    in violation of the preceding sentence, any such waiver, or
    extension of time, shall not apply to any plan year ending on or
    after the date on which such amendment is adopted.
      (2) Paragraph (1) shall not apply to any plan amendment which - 
        (A) the Secretary determines to be reasonable and which
      provides for only de minimis increases in the liabilities of the
      plan,
        (B) only repeals an amendment described in section 1082(c)(8)
      of this title, or
        (C) is required as a condition of qualification under part I of
      subchapter D, of chapter 1, of title 26.
    (c) Notice of filing of application for extension
      (1) The Secretary of the Treasury shall, before granting an
    extension under this section, require each applicant to provide
    evidence satisfactory to such Secretary that the applicant has
    provided notice of the filing of the application for such extension
    to each employee organization representing employees covered by the
    affected plan.
      (2) The Secretary of the Treasury shall consider any relevant
    information provided by a person to whom notice was given under
    paragraph (1).

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 304, Sept. 2, 1974, 88 Stat. 873;
    Pub. L. 99-272, title XI, Secs. 11015(b)(1)(B), 11016(c)(3), Apr.
    7, 1986, 100 Stat. 267, 273; Pub. L. 100-203, title IX, Sec.
    9306(c)(2)(B), Dec. 22, 1987, 101 Stat. 1330-355; Pub. L. 101-239,
    title VII, Secs. 7891(a)(1), 7894(d)(3), Dec. 19, 1989, 103 Stat.
    2445, 2449.)


-STATAMEND-
                             REPEAL OF SECTION                         
      Pub. L. 109-280, title I, Sec. 101(a), (d), Aug. 17, 2006, 120
    Stat. 784, 789, provided that, applicable to plan years beginning
    after 2007, this section is repealed.

                           ENACTMENT OF SECTION                       
      Pub. L. 109-280, title II, Sec. 201(a), (d), Aug. 17, 2006, 120
    Stat. 858, 868, provided that, applicable to plan years beginning
    after 2007, with special rule for certain amortization extensions,
    a new section 1084 of this title is enacted to read as follows:
    Sec. 1084. Minimum funding standards for multiemployer plans
    (a) In general
      For purposes of section 1082 of this title, the accumulated
    funding deficiency of a multiemployer plan for any plan year is - 
        (1) except as provided in paragraph (2), the amount, determined
      as of the end of the plan year, equal to the excess (if any) of
      the total charges to the funding standard account of the plan for
      all plan years (beginning with the first plan year for which this
      part applies to the plan) over the total credits to such account
      for such years, and
        (2) if the multiemployer plan is in reorganization for any plan
      year, the accumulated funding deficiency of the plan determined
      under section 1423 of this title.
    (b) Funding standard account
      (1) Account required
        Each multiemployer plan to which this part applies shall
      establish and maintain a funding standard account. Such account
      shall be credited and charged solely as provided in this section.
      (2) Charges to account
        For a plan year, the funding standard account shall be charged
      with the sum of - 
          (A) the normal cost of the plan for the plan year,
          (B) the amounts necessary to amortize in equal annual
        installments (until fully amortized) - 
            (i) in the case of a plan which comes into existence on or
          after January 1, 2008, the unfunded past service liability
          under the plan on the first day of the first plan year to
          which this section applies, over a period of 15 plan years,
            (ii) separately, with respect to each plan year, the net
          increase (if any) in unfunded past service liability under
          the plan arising from plan amendments adopted in such year,
          over a period of 15 plan years,
            (iii) separately, with respect to each plan year, the net
          experience loss (if any) under the plan, over a period of 15
          plan years, and
            (iv) separately, with respect to each plan year, the net
          loss (if any) resulting from changes in actuarial assumptions
          used under the plan, over a period of 15 plan years,

          (C) the amount necessary to amortize each waived funding
        deficiency (within the meaning of section 1082(c)(3) of this
        title) for each prior plan year in equal annual installments
        (until fully amortized) over a period of 15 plan years,
          (D) the amount necessary to amortize in equal annual
        installments (until fully amortized) over a period of 5 plan
        years any amount credited to the funding standard account under
        section 1082(b)(3)(D) of this title (as in effect on the day
        before August 17, 2006), and
          (E) the amount necessary to amortize in equal annual
        installments (until fully amortized) over a period of 20 years
        the contributions which would be required to be made under the
        plan but for the provisions of section 1082(c)(7)(A)(i)(I) of
        this title (as in effect on the day before August 17, 2006).
      (3) Credits to account
        For a plan year, the funding standard account shall be credited
      with the sum of - 
          (A) the amount considered contributed by the employer to or
        under the plan for the plan year,
          (B) the amount necessary to amortize in equal annual
        installments (until fully amortized) - 
            (i) separately, with respect to each plan year, the net
          decrease (if any) in unfunded past service liability under
          the plan arising from plan amendments adopted in such year,
          over a period of 15 plan years,
            (ii) separately, with respect to each plan year, the net
          experience gain (if any) under the plan, over a period of 15
          plan years, and
            (iii) separately, with respect to each plan year, the net
          gain (if any) resulting from changes in actuarial assumptions
          used under the plan, over a period of 15 plan years,

          (C) the amount of the waived funding deficiency (within the
        meaning of section 1082(c)(3) of this title) for the plan year,
        and
          (D) in the case of a plan year for which the accumulated
        funding deficiency is determined under the funding standard
        account if such plan year follows a plan year for which such
        deficiency was determined under the alternative minimum funding
        standard under section 1085 of this title (as in effect on the
        day before August 17, 2006), the excess (if any) of any debit
        balance in the funding standard account (determined without
        regard to this subparagraph) over any debit balance in the
        alternative minimum funding standard account.
      (4) Special rule for amounts first amortized in plan years before
        2008
        In the case of any amount amortized under section 1082(b) of
      this title (as in effect on the day before August 17, 2006) over
      any period beginning with a plan year beginning before 2008, in
      lieu of the amortization described in paragraphs (2)(B) and
      (3)(B), such amount shall continue to be amortized under such
      section as so in effect.
      (5) Combining and offsetting amounts to be amortized
        Under regulations prescribed by the Secretary of the Treasury,
      amounts required to be amortized under paragraph (2) or paragraph
      (3), as the case may be - 
          (A) may be combined into one amount under such paragraph to
        be amortized over a period determined on the basis of the
        remaining amortization period for all items entering into such
        combined amount, and
          (B) may be offset against amounts required to be amortized
        under the other such paragraph, with the resulting amount to be
        amortized over a period determined on the basis of the
        remaining amortization periods for all items entering into
        whichever of the two amounts being offset is the greater.
      (6) Interest
        The funding standard account (and items therein) shall be
      charged or credited (as determined under regulations prescribed
      by the Secretary of the Treasury) with interest at the
      appropriate rate consistent with the rate or rates of interest
      used under the plan to determine costs.
      (7) Special rules relating to charges and credits to funding
        standard account
        For purposes of this part - 
        (A) Withdrawal liability
          Any amount received by a multiemployer plan in payment of all
        or part of an employer's withdrawal liability under part 1 of
        subtitle E of subchapter III shall be considered an amount
        contributed by the employer to or under the plan. The Secretary
        of the Treasury may prescribe by regulation additional charges
        and credits to a multiemployer plan's funding standard account
        to the extent necessary to prevent withdrawal liability
        payments from being unduly reflected as advance funding for
        plan liabilities.
        (B) Adjustments when a multiemployer plan leaves reorganization
          If a multiemployer plan is not in reorganization in the plan
        year but was in reorganization in the immediately preceding
        plan year, any balance in the funding standard account at the
        close of such immediately preceding plan year - 
            (i) shall be eliminated by an offsetting credit or charge
          (as the case may be), but
            (ii) shall be taken into account in subsequent plan years
          by being amortized in equal annual installments (until fully
          amortized) over 30 plan years.

        The preceding sentence shall not apply to the extent of any
        accumulated funding deficiency under section 1423(a) of this
        title as of the end of the last plan year that the plan was in
        reorganization.
        (C) Plan payments to supplemental program or withdrawal
          liability payment fund
          Any amount paid by a plan during a plan year to the Pension
        Benefit Guaranty Corporation pursuant to section 1402 of this
        title or to a fund exempt under section 501(c)(22) of title 26
        pursuant to section 1403 of this title shall reduce the amount
        of contributions considered received by the plan for the plan
        year.
        (D) Interim withdrawal liability payments
          Any amount paid by an employer pending a final determination
        of the employer's withdrawal liability under part 1 of subtitle
        E of subchapter III and subsequently refunded to the employer
        by the plan shall be charged to the funding standard account in
        accordance with regulations prescribed by the Secretary of the
        Treasury.
        (E) Election for deferral of charge for portion of net
          experience loss
          If an election is in effect under section 1082(b)(7)(F) of
        this title (as in effect on the day before August 17, 2006) for
        any plan year, the funding standard account shall be charged in
        the plan year to which the portion of the net experience loss
        deferred by such election was deferred with the amount so
        deferred (and paragraph (2)(B)(iii) shall not apply to the
        amount so charged).
        (F) Financial assistance
          Any amount of any financial assistance from the Pension
        Benefit Guaranty Corporation to any plan, and any repayment of
        such amount, shall be taken into account under this section and
        section 1082 of this title in such manner as is determined by
        the Secretary of the Treasury.
        (G) Short-term benefits
          To the extent that any plan amendment increases the unfunded
        past service liability under the plan by reason of an increase
        in benefits which are not payable as a life annuity but are
        payable under the terms of the plan for a period that does not
        exceed 14 years from the effective date of the amendment,
        paragraph (2)(B)(ii) shall be applied separately with respect
        to such increase in unfunded past service liability by
        substituting the number of years of the period during which
        such benefits are payable for "15".
    (c) Additional rules
      (1) Determinations to be made under funding method
        For purposes of this part, normal costs, accrued liability,
      past service liabilities, and experience gains and losses shall
      be determined under the funding method used to determine costs
      under the plan.
      (2) Valuation of assets
        (A) In general
          For purposes of this part, the value of the plan's assets
        shall be determined on the basis of any reasonable actuarial
        method of valuation which takes into account fair market value
        and which is permitted under regulations prescribed by the
        Secretary of the Treasury.
        (B) Election with respect to bonds
          The value of a bond or other evidence of indebtedness which
        is not in default as to principal or interest may, at the
        election of the plan administrator, be determined on an
        amortized basis running from initial cost at purchase to par
        value at maturity or earliest call date. Any election under
        this subparagraph shall be made at such time and in such manner
        as the Secretary of the Treasury shall by regulations provide,
        shall apply to all such evidences of indebtedness, and may be
        revoked only with the consent of such Secretary.
      (3) Actuarial assumptions must be reasonable
        For purposes of this section, all costs, liabilities, rates of
      interest, and other factors under the plan shall be determined on
      the basis of actuarial assumptions and methods - 
          (A) each of which is reasonable (taking into account the
        experience of the plan and reasonable expectations), and
          (B) which, in combination, offer the actuary's best estimate
        of anticipated experience under the plan.
      (4) Treatment of certain changes as experience gain or loss
        For purposes of this section, if - 
          (A) a change in benefits under the Social Security Act or in
        other retirement benefits created under Federal or State law,
        or
          (B) a change in the definition of the term "wages" under
        section 3121 of title 26, or a change in the amount of such
        wages taken into account under regulations prescribed for
        purposes of section 401(a)(5) of title 26,

      results in an increase or decrease in accrued liability under a
      plan, such increase or decrease shall be treated as an experience
      loss or gain.
      (5) Full funding
        If, as of the close of a plan year, a plan would (without
      regard to this paragraph) have an accumulated funding deficiency
      in excess of the full funding limitation - 
          (A) the funding standard account shall be credited with the
        amount of such excess, and
          (B) all amounts described in subparagraphs (B), (C), and (D)
        of subsection (b)(2) and subparagraph (B) of subsection (b)(3)
        which are required to be amortized shall be considered fully
        amortized for purposes of such subparagraphs.
      (6) Full-funding limitation
        (A) In general
          For purposes of paragraph (5), the term "full-funding
        limitation" means the excess (if any) of - 
            (i) the accrued liability (including normal cost) under the
          plan (determined under the entry age normal funding method if
          such accrued liability cannot be directly calculated under
          the funding method used for the plan), over
            (ii) the lesser of - 
              (I) the fair market value of the plan's assets, or
              (II) the value of such assets determined under paragraph
            (2).
        (B) Minimum amount
          (i) In general
            In no event shall the full-funding limitation determined
          under subparagraph (A) be less than the excess (if any) of - 
              (I) 90 percent of the current liability of the plan
            (including the expected increase in current liability due
            to benefits accruing during the plan year), over
              (II) the value of the plan's assets determined under
            paragraph (2).
          (ii) Assets
            For purposes of clause (i), assets shall not be reduced by
          any credit balance in the funding standard account.
        (C) Full funding limitation
          For purposes of this paragraph, unless otherwise provided by
        the plan, the accrued liability under a multiemployer plan
        shall not include benefits which are not nonforfeitable under
        the plan after the termination of the plan (taking into
        consideration section 411(d)(3) of title 26).
        (D) Current liability
          For purposes of this paragraph - 
          (i) In general
            The term "current liability" means all liabilities to
          employees and their beneficiaries under the plan.
          (ii) Treatment of unpredictable contingent event benefits
            For purposes of clause (i), any benefit contingent on an
          event other than - 
              (I) age, service, compensation, death, or disability, or
              (II) an event which is reasonably and reliably
            predictable (as determined by the Secretary of the
            Treasury),

          shall not be taken into account until the event on which the
          benefit is contingent occurs.
          (iii) Interest rate used
            The rate of interest used to determine current liability
          under this paragraph shall be the rate of interest determined
          under subparagraph (E).
          (iv) Mortality tables
            (I) Commissioners' standard table
              In the case of plan years beginning before the first plan
            year to which the first tables prescribed under subclause
            (II) apply, the mortality table used in determining current
            liability under this paragraph shall be the table
            prescribed by the Secretary of the Treasury which is based
            on the prevailing commissioners' standard table (described
            in section 807(d)(5)(A) of title 26) used to determine
            reserves for group annuity contracts issued on January 1,
            1993.
            (II) Secretarial authority
              The Secretary of the Treasury may by regulation prescribe
            for plan years beginning after December 31, 1999, mortality
            tables to be used in determining current liability under
            this subsection. Such tables shall be based upon the actual
            experience of pension plans and projected trends in such
            experience. In prescribing such tables, such Secretary
            shall take into account results of available independent
            studies of mortality of individuals covered by pension
            plans.
          (v) Separate mortality tables for the disabled
            Notwithstanding clause (iv) - 
            (I) In general
              The Secretary of the Treasury shall establish mortality
            tables which may be used (in lieu of the tables under
            clause (iv)) to determine current liability under this
            subsection for individuals who are entitled to benefits
            under the plan on account of disability. Such Secretary
            shall establish separate tables for individuals whose
            disabilities occur in plan years beginning before January
            1, 1995, and for individuals whose disabilities occur in
            plan years beginning on or after such date.
            (II) Special rule for disabilities occurring after 1994
              In the case of disabilities occurring in plan years
            beginning after December 31, 1994, the tables under
            subclause (I) shall apply only with respect to individuals
            described in such subclause who are disabled within the
            meaning of title II of the Social Security Act and the
            regulations thereunder.
          (vi) Periodic review
            The Secretary of the Treasury shall periodically (at least
          every 5 years) review any tables in effect under this
          subparagraph and shall, to the extent such Secretary
          determines necessary, by regulation update the tables to
          reflect the actual experience of pension plans and projected
          trends in such experience.
        (E) Required change of interest rate
          For purposes of determining a plan's current liability for
        purposes of this paragraph - 
          (i) In general
            If any rate of interest used under the plan under
          subsection (b)(6) to determine cost is not within the
          permissible range, the plan shall establish a new rate of
          interest within the permissible range.
          (ii) Permissible range
            For purposes of this subparagraph - 
            (I) In general
              Except as provided in subclause (II), the term
            "permissible range" means a rate of interest which is not
            more than 5 percent above, and not more than 10 percent
            below, the weighted average of the rates of interest on 30-
            year Treasury securities during the 4-year period ending
            on the last day before the beginning of the plan year.
            (II) Secretarial authority
              If the Secretary of the Treasury finds that the lowest
            rate of interest permissible under subclause (I) is
            unreasonably high, such Secretary may prescribe a lower
            rate of interest, except that such rate may not be less
            than 80 percent of the average rate determined under such
            subclause.
          (iii) Assumptions
            Notwithstanding paragraph (3)(A), the interest rate used
          under the plan shall be - 
              (I) determined without taking into account the experience
            of the plan and reasonable expectations, but
              (II) consistent with the assumptions which reflect the
            purchase rates which would be used by insurance companies
            to satisfy the liabilities under the plan.
      (7) Annual valuation
        (A) In general
          For purposes of this section, a determination of experience
        gains and losses and a valuation of the plan's liability shall
        be made not less frequently than once every year, except that
        such determination shall be made more frequently to the extent
        required in particular cases under regulations prescribed by
        the Secretary of the Treasury.
        (B) Valuation date
          (i) Current year
            Except as provided in clause (ii), the valuation referred
          to in subparagraph (A) shall be made as of a date within the
          plan year to which the valuation refers or within one month
          prior to the beginning of such year.
          (ii) Use of prior year valuation
            The valuation referred to in subparagraph (A) may be made
          as of a date within the plan year prior to the year to which
          the valuation refers if, as of such date, the value of the
          assets of the plan are not less than 100 percent of the
          plan's current liability (as defined in paragraph (6)(D)
          without regard to clause (iv) thereof).
          (iii) Adjustments
            Information under clause (ii) shall, in accordance with
          regulations, be actuarially adjusted to reflect significant
          differences in participants.
          (iv) Limitation
            A change in funding method to use a prior year valuation,
          as provided in clause (ii), may not be made unless as of the
          valuation date within the prior plan year, the value of the
          assets of the plan are not less than 125 percent of the
          plan's current liability (as defined in paragraph (6)(D)
          without regard to clause (iv) thereof).
      (8) Time when certain contributions deemed made
        For purposes of this section, any contributions for a plan year
      made by an employer after the last day of such plan year, but not
      later than two and one-half months after such day, shall be
      deemed to have been made on such last day. For purposes of this
      subparagraph, such two and one-half month period may be extended
      for not more than six months under regulations prescribed by the
      Secretary of the Treasury.
    (d) Extension of amortization periods for multiemployer plans
      (1) Automatic extension upon application by certain plans
        (A) In general
          If the plan sponsor of a multiemployer plan - 
            (i) submits to the Secretary of the Treasury an application
          for an extension of the period of years required to amortize
          any unfunded liability described in any clause of subsection
          (b)(2)(B) or described in subsection (b)(4), and
            (ii) includes with the application a certification by the
          plan's actuary described in subparagraph (B),

        the Secretary of the Treasury shall extend the amortization
        period for the period of time (not in excess of 5 years)
        specified in the application. Such extension shall be in
        addition to any extension under paragraph (2).
        (B) Criteria
          A certification with respect to a multiemployer plan is
        described in this subparagraph if the plan's actuary certifies
        that, based on reasonable assumptions - 
            (i) absent the extension under subparagraph (A), the plan
          would have an accumulated funding deficiency in the current
          plan year or any of the 9 succeeding plan years,
            (ii) the plan sponsor has adopted a plan to improve the
          plan's funding status,
            (iii) the plan is projected to have sufficient assets to
          timely pay expected benefits and anticipated expenditures
          over the amortization period as extended, and
            (iv) the notice required under paragraph (3)(A) has been
          provided.
        (C) Termination
          The preceding provisions of this paragraph shall not apply
        with respect to any application submitted after December 31,
        2014.
      (2) Alternative extension
        (A) In general
          If the plan sponsor of a multiemployer plan submits to the
        Secretary of the Treasury an application for an extension of
        the period of years required to amortize any unfunded liability
        described in any clause of subsection (b)(2)(B) or described in
        subsection (b)(4), the Secretary of the Treasury may extend the
        amortization period for a period of time (not in excess of 10
        years reduced by the number of years of any extension under
        paragraph (1) with respect to such unfunded liability) if the
        Secretary of the Treasury makes the determination described in
        subparagraph (B). Such extension shall be in addition to any
        extension under paragraph (1).
        (B) Determination
          The Secretary of the Treasury may grant an extension under
        subparagraph (A) if such Secretary determines that - 
            (i) such extension would carry out the purposes of this
          chapter and would provide adequate protection for
          participants under the plan and their beneficiaries, and
            (ii) the failure to permit such extension would - 
              (I) result in a substantial risk to the voluntary
            continuation of the plan, or a substantial curtailment of
            pension benefit levels or employee compensation, and
              (II) be adverse to the interests of plan participants in
            the aggregate.
        (C) Action by Secretary of the Treasury
          The Secretary of the Treasury shall act upon any application
        for an extension under this paragraph within 180 days of the
        submission of such application. If such Secretary rejects the
        application for an extension under this paragraph, such
        Secretary shall provide notice to the plan detailing the
        specific reasons for the rejection, including references to the
        criteria set forth above.
      (3) Advance notice
        (A) In general
          The Secretary of the Treasury shall, before granting an
        extension under this subsection, require each applicant to
        provide evidence satisfactory to such Secretary that the
        applicant has provided notice of the filing of the application
        for such extension to each affected party (as defined in
        section 1301(a)(21) of this title) with respect to the affected
        plan. Such notice shall include a description of the extent to
        which the plan is funded for benefits which are guaranteed
        under subchapter III and for benefit liabilities.
        (B) Consideration of relevant information
          The Secretary of the Treasury shall consider any relevant
        information provided by a person to whom notice was given under
        paragraph (1).

-REFTEXT-
                            REFERENCES IN TEXT                        
      This chapter, referred to in subsec. (a), was in the original
    "this Act", meaning Pub. L. 93-406, known as the Employee
    Retirement Income Security Act of 1974. Titles I, III, and IV of
    such Act are classified principally to this chapter. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 1001 of this title and Tables.


-MISC1-
                                AMENDMENTS                            
      1989 - Subsec. (b)(2)(A). Pub. L. 101-239, Sec. 7894(d)(3),
    substituted a comma for period at end.
      Subsec. (b)(2)(C). Pub. L. 101-239, Sec. 7891(a)(1), substituted
    "Internal Revenue Code of 1986" for "Internal Revenue Code of
    1954", which for purposes of codification was translated as "title
    26" thus requiring no change in text.
      1987 - Subsec. (a). Pub. L. 100-203 amended last sentence
    generally. Prior to amendment, last sentence read as follows: "The
    interest rate applicable under any arrangement entered into by the
    Secretary in connection with an extension granted under this
    subsection shall be the rate determined under section 6621(b) of
    title 26."
      1986 - Subsec. (a). Pub. L. 99-272, Sec. 11015(b)(1)(B), inserted
    provision that the interest rate applicable under any arrangement
    entered into by the Secretary in connection with an extension
    granted under this subsection be the rate determined under section
    6621(b) of title 26.
      Subsec. (c). Pub. L. 99-272, Sec. 11016(c)(3), added subsec. (c).

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      New section 1084 of this title, enacted by section 201(a) of Pub.
    L. 109-280, applicable to plan years beginning after 2007, with
    special rule for certain amortization extensions, see section
    201(d) of Pub. L. 109-280, set out as a note under section 1081 of
    this title.

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by section 7891(a)(1) of Pub. L. 101-239 effective,
    except as otherwise provided, as if included in the provision of
    the Tax Reform Act of 1986, Pub. L. 99-514, to which such amendment
    relates, see section 7891(f) of Pub. L. 101-239, set out as a note
    under section 1002 of this title.
      Amendment by section 7894(d)(3) of Pub. L. 101-239 effective,
    except as otherwise provided, as if originally included in the
    provision of the Employee Retirement Income Security Act of 1974,
    Pub. L. 93-406, to which such amendment relates, see section
    7894(i) of Pub. L. 101-239, set out as a note under section 1002 of
    this title.

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Amendment by Pub. L. 100-203 applicable in the case of any
    application submitted after Dec. 17, 1987, and any waiver granted
    pursuant to such an application, see section 9306(f) of Pub. L. 100-
    203, set out as a note under section 412 of Title 26, Internal
    Revenue Code.

                     EFFECTIVE DATE OF 1986 AMENDMENT                 
      Amendment by Pub. L. 99-272 effective Jan. 1, 1986, with certain
    exceptions, see section 11019 of Pub. L. 99-272, set out as a note
    under section 1341 of this title.

                         SHORTFALL FUNDING METHOD                     
      Pub. L. 109-280, title II, Sec. 201(b), Aug. 17, 2006, 120 Stat.
    867, provided that:
      "(1) In general. - A multiemployer plan meeting the criteria of
    paragraph (2) may adopt, use, or cease using, the shortfall funding
    method and such adoption, use, or cessation of use of such method,
    shall be deemed approved by the Secretary of the Treasury under
    section 302(d)(1) of the Employee Retirement Income Security Act of
    1974 [29 U.S.C. 1082(d)(1)] and section 412(d)(1) of the Internal
    Revenue Code of 1986 [26 U.S.C. 412(d)(1)].
      "(2) Criteria. - A multiemployer pension plan meets the criteria
    of this clause if - 
        "(A) the plan has not used the shortfall funding method during
      the 5-year period ending on the day before the date the plan is
      to use the method under paragraph (1); and
        "(B) the plan is not operating under an amortization period
      extension under section 304(d) of such Act [29 U.S.C. 1084(d)]
      and did not operate under such an extension during such 5-year
      period.
      "(3) Shortfall funding method defined. - For purposes of this
    subsection, the term 'shortfall funding method' means the shortfall
    funding method described in Treasury Regulations section
    1.412(c)(1)-2 (26 CFR 1.412(c)(1)-2).
      "(4) Benefit restrictions to apply. - The benefit restrictions
    under section 302(c)(7) of such Act [29 U.S.C. 1082(c)(7)] and
    section 412(c)(7) of such Code [26 U.S.C. 412(c)(7)] shall apply
    during any period a multiemployer plan is on the shortfall funding
    method pursuant to this subsection.
      "(5) Use of shortfall method not to preclude other options. -
    Nothing in this subsection shall be construed to affect a
    multiemployer plan's ability to adopt the shortfall funding method
    with the Secretary's permission under otherwise applicable
    regulations or to affect a multiemployer plan's right to change
    funding methods, with or without the Secretary's consent, as
    provided in applicable rules and regulations."
      [Pub. L. 109-280, Sec. 201(b), set out above, applicable to plan
    years beginning after 2007, with special rule for certain
    amortization extensions, see section 201(d) of Pub. L. 109-280, set
    out as an Effective Date of 2006 Amendment note under section 1081
    of this title.]
      [Pub. L. 109-280, Sec. 201(b), set out above, inapplicable to
    plan years beginning after Dec. 31, 2014, with exception for
    certain funding improvement and rehabilitation plans, see section
    221(c) of Pub. L. 109-280, set out as an Effective and Termination
    Dates of 2006 Amendment note under section 412 of Title 26,
    Internal Revenue Code.]

        SPECIAL RULE FOR CERTAIN BENEFITS FUNDED UNDER AN AGREEMENT
           APPROVED BY THE PENSION BENEFIT GUARANTY CORPORATION
      For applicability of new section 1084 of this title, enacted by
    section 201(a) of Pub. L. 109-280, to a multiemployer plan that is
    a party to an agreement that was approved by the Pension Benefit
    Guaranty Corporation prior to June 30, 2005, and that increases
    benefits and provides for certain withdrawal liability rules, see
    section 206 of Pub. L. 109-280, set out as a note under section 412
    of Title 26, Internal Revenue Code.

-End-



-CITE-
    29 USC Sec. 1085                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 3 - funding

-HEAD-
    Sec. 1085. Alternative minimum funding standard

-STATUTE-
    (a) Maintenance of account
      A plan which uses a funding method that requires contributions in
    all years not less than those required under the entry age normal
    funding method may maintain an alternative minimum funding standard
    account for any plan year. Such account shall be credited and
    charged solely as provided in this section.
    (b) Operation of account
      For a plan year the alternative minimum funding standard accounts
    shall be - 
        (1) charged with the sum of - 
          (A) the lesser of normal cost under the funding method used
        under the plan or normal cost determined under the unit credit
        method,
          (B) the excess, if any, of the present value of accrued
        benefits under the plan over the fair market value of the
        assets, and
          (C) an amount equal to the excess, if any, of credits to the
        alternative minimum funding standard account for all prior plan
        years over charges to such account for all such years, and

        (2) credited with the amount considered contributed by the
      employer to or under the plan (within the meaning of section
      1082(c)(10) of this title) for the plan year.
    (c) Interest
      The alternative minimum funding standard account (and items
    therein) shall be charged or credited with interest in the manner
    provided under section 1082(b)(5) of this title with respect to the
    funding standard account.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 305, Sept. 2, 1974, 88 Stat. 873.)


-STATAMEND-
                             REPEAL OF SECTION                         
      Pub. L. 109-280, title I, Sec. 101(a), (d), Aug. 17, 2006, 120
    Stat. 784, 789, provided that, applicable to plan years beginning
    after 2007, this section is repealed.

                           ENACTMENT OF SECTION                       
      Pub. L. 109-280, title II, Sec. 202(a), (f), Aug. 17, 2006, 120
    Stat. 868, 885, provided that, applicable with respect to plan
    years beginning after 2007, with special rules for certain notices
    and certain restored benefits, a new section 1085 of this title is
    enacted to read as follows:
    Sec. 1085. Additional funding rules for multiemployer plans in
    endangered status or critical status
    (a) General rule
      For purposes of this part, in the case of a multiemployer plan in
    effect on July 16, 2006 - 
        (1) if the plan is in endangered status - 
          (A) the plan sponsor shall adopt and implement a funding
        improvement plan in accordance with the requirements of
        subsection (c), and
          (B) the requirements of subsection (d) shall apply during the
        funding plan adoption period and the funding improvement
        period, and

        (2) if the plan is in critical status - 
          (A) the plan sponsor shall adopt and implement a
        rehabilitation plan in accordance with the requirements of
        subsection (e), and
          (B) the requirements of subsection (f) shall apply during the
        rehabilitation plan adoption period and the rehabilitation
        period.
    (b) Determination of endangered and critical status
      For purposes of this section - 
      (1) Endangered status
        A multiemployer plan is in endangered status for a plan year
      if, as determined by the plan actuary under paragraph (3), the
      plan is not in critical status for the plan year and, as of the
      beginning of the plan year, either - 
          (A) the plan's funded percentage for such plan year is less
        than 80 percent, or
          (B) the plan has an accumulated funding deficiency for such
        plan year, or is projected to have such an accumulated funding
        deficiency for any of the 6 succeeding plan years, taking into
        account any extension of amortization periods under section
        1084(d) of this title.

      For purposes of this section, a plan shall be treated as in
      seriously endangered status for a plan year if the plan is
      described in both subparagraphs (A) and (B).
      (2) Critical status
        A multiemployer plan is in critical status for a plan year if,
      as determined by the plan actuary under paragraph (3), the plan
      is described in 1 or more of the following subparagraphs as of
      the beginning of the plan year:
          (A) A plan is described in this subparagraph if - 
            (i) the funded percentage of the plan is less than 65
          percent, and
            (ii) the sum of - 
              (I) the fair market value of plan assets, plus
              (II) the present value of the reasonably anticipated
            employer contributions for the current plan year and each
            of the 6 succeeding plan years, assuming that the terms of
            all collective bargaining agreements pursuant to which the
            plan is maintained for the current plan year continue in
            effect for succeeding plan years,

          is less than the present value of all nonforfeitable benefits
          projected to be payable under the plan during the current
          plan year and each of the 6 succeeding plan years (plus
          administrative expenses for such plan years).
          (B) A plan is described in this subparagraph if - 
            (i) the plan has an accumulated funding deficiency for the
          current plan year, not taking into account any extension of
          amortization periods under section 1084(d) of this title, or
            (ii) the plan is projected to have an accumulated funding
          deficiency for any of the 3 succeeding plan years (4
          succeeding plan years if the funded percentage of the plan is
          65 percent or less), not taking into account any extension of
          amortization periods under section 1084(d) of this title.

          (C) A plan is described in this subparagraph if - 
            (i)(I) the plan's normal cost for the current plan year,
          plus interest (determined at the rate used for determining
          costs under the plan) for the current plan year on the amount
          of unfunded benefit liabilities under the plan as of the last
          date of the preceding plan year, exceeds
            (II) the present value of the reasonably anticipated
          employer and employee contributions for the current plan
          year,
            (ii) the present value, as of the beginning of the current
          plan year, of nonforfeitable benefits of inactive
          participants is greater than the present value of
          nonforfeitable benefits of active participants, and
            (iii) the plan has an accumulated funding deficiency for
          the current plan year, or is projected to have such a
          deficiency for any of the 4 succeeding plan years, not taking
          into account any extension of amortization periods under
          section 1084(d) of this title.

          (D) A plan is described in this subparagraph if the sum of - 
            (i) the fair market value of plan assets, plus
            (ii) the present value of the reasonably anticipated
          employer contributions for the current plan year and each of
          the 4 succeeding plan years, assuming that the terms of all
          collective bargaining agreements pursuant to which the plan
          is maintained for the current plan year continue in effect
          for succeeding plan years,

        is less than the present value of all benefits projected to be
        payable under the plan during the current plan year and each of
        the 4 succeeding plan years (plus administrative expenses for
        such plan years).
      (3) Annual certification by plan actuary
        (A) In general
          Not later than the 90th day of each plan year of a
        multiemployer plan, the plan actuary shall certify to the
        Secretary of the Treasury and to the plan sponsor - 
            (i) whether or not the plan is in endangered status for
          such plan year and whether or not the plan is or will be in
          critical status for such plan year, and
            (ii) in the case of a plan which is in a funding
          improvement or rehabilitation period, whether or not the plan
          is making the scheduled progress in meeting the requirements
          of its funding improvement or rehabilitation plan.
        (B) Actuarial projections of assets and liabilities
          (i) In general
            In making the determinations and projections under this
          subsection, the plan actuary shall make projections required
          for the current and succeeding plan years of the current
          value of the assets of the plan and the present value of all
          liabilities to participants and beneficiaries under the plan
          for the current plan year as of the beginning of such year.
          The actuary's projections shall be based on reasonable
          actuarial estimates, assumptions, and methods that, except as
          provided in clause (iii), offer the actuary's best estimate
          of anticipated experience under the plan. The projected
          present value of liabilities as of the beginning of such year
          shall be determined based on the most recent of either - 
              (I) the actuarial statement required under section
            1023(d) of this title with respect to the most recently
            filed annual report, or
              (II) the actuarial valuation for the preceding plan year.
          (ii) Determinations of future contributions
            Any actuarial projection of plan assets shall assume - 
              (I) reasonably anticipated employer contributions for the
            current and succeeding plan years, assuming that the terms
            of the one or more collective bargaining agreements
            pursuant to which the plan is maintained for the current
            plan year continue in effect for succeeding plan years, or
              (II) that employer contributions for the most recent plan
            year will continue indefinitely, but only if the plan
            actuary determines there have been no significant
            demographic changes that would make such assumption
            unreasonable.
          (iii) Projected industry activity
            Any projection of activity in the industry or industries
          covered by the plan, including future covered employment and
          contribution levels, shall be based on information provided
          by the plan sponsor, which shall act reasonably and in good
          faith.
        (C) Penalty for failure to secure timely actuarial
          certification
          Any failure of the plan's actuary to certify the plan's
        status under this subsection by the date specified in
        subparagraph (A) shall be treated for purposes of section
        1132(c)(2) of this title as a failure or refusal by the plan
        administrator to file the annual report required to be filed
        with the Secretary under section 1021(b)(4) of this title.
        (D) Notice
          (i) In general
            In any case in which it is certified under subparagraph (A)
          that a multiemployer plan is or will be in endangered or
          critical status for a plan year, the plan sponsor shall, not
          later than 30 days after the date of the certification,
          provide notification of the endangered or critical status to
          the participants and beneficiaries, the bargaining parties,
          the Pension Benefit Guaranty Corporation, and the Secretary.
          (ii) Plans in critical status
            If it is certified under subparagraph (A) that a
          multiemployer plan is or will be in critical status, the plan
          sponsor shall include in the notice under clause (i) an
          explanation of the possibility that - 
              (I) adjustable benefits (as defined in subsection (e)(8))
            may be reduced, and
              (II) such reductions may apply to participants and
            beneficiaries whose benefit commencement date is on or
            after the date such notice is provided for the first plan
            year in which the plan is in critical status.
          (iii) Model notice
            The Secretary shall prescribe a model notice that a
          multiemployer plan may use to satisfy the requirements under
          clause (ii).
    (c) Funding improvement plan must be adopted for multiemployer
      plans in endangered status
      (1) In general
        In any case in which a multiemployer plan is in endangered
      status for a plan year, the plan sponsor, in accordance with this
      subsection - 
          (A) shall adopt a funding improvement plan not later than 240
        days following the required date for the actuarial
        certification of endangered status under subsection (b)(3)(A),
        and
          (B) within 30 days after the adoption of the funding
        improvement plan - 
            (i) shall provide to the bargaining parties 1 or more
          schedules showing revised benefit structures, revised
          contribution structures, or both, which, if adopted, may
          reasonably be expected to enable the multiemployer plan to
          meet the applicable benchmarks in accordance with the funding
          improvement plan, including - 
              (I) one proposal for reductions in the amount of future
            benefit accruals necessary to achieve the applicable
            benchmarks, assuming no amendments increasing contributions
            under the plan (other than amendments increasing
            contributions necessary to achieve the applicable
            benchmarks after amendments have reduced future benefit
            accruals to the maximum extent permitted by law), and
              (II) one proposal for increases in contributions under
            the plan necessary to achieve the applicable benchmarks,
            assuming no amendments reducing future benefit accruals
            under the plan, and

            (ii) may, if the plan sponsor deems appropriate, prepare
          and provide the bargaining parties with additional
          information relating to contribution rates or benefit
          reductions, alternative schedules, or other information
          relevant to achieving the applicable benchmarks in accordance
          with the funding improvement plan.

        For purposes of this section, the term "applicable benchmarks"
        means the requirements applicable to the multiemployer plan
        under paragraph (3) (as modified by paragraph (5)).
      (2) Exception for years after process begins
        Paragraph (1) shall not apply to a plan year if such year is in
      a funding plan adoption period or funding improvement period by
      reason of the plan being in endangered status for a preceding
      plan year. For purposes of this section, such preceding plan year
      shall be the initial determination year with respect to the
      funding improvement plan to which it relates.
      (3) Funding improvement plan
        For purposes of this section - 
        (A) In general
          A funding improvement plan is a plan which consists of the
        actions, including options or a range of options to be proposed
        to the bargaining parties, formulated to provide, based on
        reasonably anticipated experience and reasonable actuarial
        assumptions, for the attainment by the plan during the funding
        improvement period of the following requirements:
          (i) Increase in plan's funding percentage
            The plan's funded percentage as of the close of the funding
          improvement period equals or exceeds a percentage equal to
          the sum of - 
              (I) such percentage as of the beginning of such period,
            plus
              (II) 33 percent of the difference between 100 percent and
            the percentage under subclause (I).
          (ii) Avoidance of accumulated funding deficiencies
            No accumulated funding deficiency for any plan year during
          the funding improvement period (taking into account any
          extension of amortization periods under section 1084(d) of
          this title).
        (B) Seriously endangered plans
          In the case of a plan in seriously endangered status, except
        as provided in paragraph (5), subparagraph (A)(i)(II) shall be
        applied by substituting "20 percent" for "33 percent".
      (4) Funding improvement period
        For purposes of this section - 
        (A) In general
          The funding improvement period for any funding improvement
        plan adopted pursuant to this subsection is the 10-year period
        beginning on the first day of the first plan year of the
        multiemployer plan beginning after the earlier of - 
            (i) the second anniversary of the date of the adoption of
          the funding improvement plan, or
            (ii) the expiration of the collective bargaining agreements
          in effect on the due date for the actuarial certification of
          endangered status for the initial determination year under
          subsection (b)(3)(A) and covering, as of such due date, at
          least 75 percent of the active participants in such
          multiemployer plan.
        (B) Seriously endangered plans
          In the case of a plan in seriously endangered status, except
        as provided in paragraph (5), subparagraph (A) shall be applied
        by substituting "15-year period" for "10-year period".
        (C) Coordination with changes in status
          (i) Plans no longer in endangered status
            If the plan's actuary certifies under subsection (b)(3)(A)
          for a plan year in any funding plan adoption period or
          funding improvement period that the plan is no longer in
          endangered status and is not in critical status, the funding
          plan adoption period or funding improvement period, whichever
          is applicable, shall end as of the close of the preceding
          plan year.
          (ii) Plans in critical status
            If the plan's actuary certifies under subsection (b)(3)(A)
          for a plan year in any funding plan adoption period or
          funding improvement period that the plan is in critical
          status, the funding plan adoption period or funding
          improvement period, whichever is applicable, shall end as of
          the close of the plan year preceding the first plan year in
          the rehabilitation period with respect to such status.
        (D) Plans in endangered status at end of period
          If the plan's actuary certifies under subsection (b)(3)(A)
        for the first plan year following the close of the period
        described in subparagraph (A) that the plan is in endangered
        status, the provisions of this subsection and subsection (d)
        shall be applied as if such first plan year were an initial
        determination year, except that the plan may not be amended in
        a manner inconsistent with the funding improvement plan in
        effect for the preceding plan year until a new funding
        improvement plan is adopted.
      (5) Special rules for seriously endangered plans more than 70
        percent funded
        (A) In general
          If the funded percentage of a plan in seriously endangered
        status was more than 70 percent as of the beginning of the
        initial determination year - 
            (i) paragraphs (3)(B) and (4)(B) shall apply only if the
          plan's actuary certifies, within 30 days after the
          certification under subsection (b)(3)(A) for the initial
          determination year, that, based on the terms of the plan and
          the collective bargaining agreements in effect at the time of
          such certification, the plan is not projected to meet the
          requirements of paragraph (3)(A) (without regard to
          paragraphs (3)(B) and (4)(B)), and
            (ii) if there is a certification under clause (i), the plan
          may, in formulating its funding improvement plan, only take
          into account the rules of paragraph (3)(B) and (4)(B) for
          plan years in the funding improvement period beginning on or
          before the date on which the last of the collective
          bargaining agreements described in paragraph (4)(A)(ii)
          expires.
        (B) Special rule after expiration of agreements
          Notwithstanding subparagraph (A)(ii), if, for any plan year
        ending after the date described in subparagraph (A)(ii), the
        plan actuary certifies (at the time of the annual certification
        under subsection (b)(3)(A) for such plan year) that, based on
        the terms of the plan and collective bargaining agreements in
        effect at the time of that annual certification, the plan is
        not projected to be able to meet the requirements of paragraph
        (3)(A) (without regard to paragraphs (3)(B) and (4)(B)),
        paragraphs (3)(B) and (4)(B) shall continue to apply for such
        year.
      (6) Updates to funding improvement plan and schedules
        (A) Funding improvement plan
          The plan sponsor shall annually update the funding
        improvement plan and shall file the update with the plan's
        annual report under section 1024 of this title.
        (B) Schedules
          The plan sponsor shall annually update any schedule of
        contribution rates provided under this subsection to reflect
        the experience of the plan.
        (C) Duration of schedule
          A schedule of contribution rates provided by the plan sponsor
        and relied upon by bargaining parties in negotiating a
        collective bargaining agreement shall remain in effect for the
        duration of that collective bargaining agreement.
      (7) Imposition of default schedule where failure to adopt funding
        improvement plan
        (A) In general
          If - 
            (i) a collective bargaining agreement providing for
          contributions under a multiemployer plan that was in effect
          at the time the plan entered endangered status expires, and
            (ii) after receiving one or more schedules from the plan
          sponsor under paragraph (1)(B), the bargaining parties with
          respect to such agreement fail to agree on changes to
          contribution or benefit schedules necessary to meet the
          applicable benchmarks in accordance with the funding
          improvement plan,

        the plan sponsor shall implement the schedule described in
        paragraph (1)(B)(i)(I) beginning on the date specified in
        subparagraph (B).
        (B) Date of implementation
          The date specified in this subparagraph is the earlier of the
        date - 
            (i) on which the Secretary certifies that the parties are
          at an impasse, or
            (ii) which is 180 days after the date on which the
          collective bargaining agreement described in subparagraph (A)
          expires.
      (8) Funding plan adoption period
        For purposes of this section, the term "funding plan adoption
      period" means the period beginning on the date of the
      certification under subsection (b)(3)(A) for the initial
      determination year and ending on the day before the first day of
      the funding improvement period.
    (d) Rules for operation of plan during adoption and improvement
      periods
      (1) Special rules for plan adoption period
        During the funding plan adoption period - 
          (A) the plan sponsor may not accept a collective bargaining
        agreement or participation agreement with respect to the
        multiemployer plan that provides for - 
            (i) a reduction in the level of contributions for any
          participants,
            (ii) a suspension of contributions with respect to any
          period of service, or
            (iii) any new direct or indirect exclusion of younger or
          newly hired employees from plan participation,

          (B) no amendment of the plan which increases the liabilities
        of the plan by reason of any increase in benefits, any change
        in the accrual of benefits, or any change in the rate at which
        benefits become nonforfeitable under the plan may be adopted
        unless the amendment is required as a condition of
        qualification under part I of subchapter D of chapter 1 of
        title 26 or to comply with other applicable law, and
          (C) in the case of a plan in seriously endangered status, the
        plan sponsor shall take all reasonable actions which are
        consistent with the terms of the plan and applicable law and
        which are expected, based on reasonable assumptions, to achieve
        - 
            (i) an increase in the plan's funded percentage, and
            (ii) postponement of an accumulated funding deficiency for
          at least 1 additional plan year.

      Actions under subparagraph (C) include applications for
      extensions of amortization periods under section 1084(d) of this
      title, use of the shortfall funding method in making funding
      standard account computations, amendments to the plan's benefit
      structure, reductions in future benefit accruals, and other
      reasonable actions consistent with the terms of the plan and
      applicable law.
      (2) Compliance with funding improvement plan
        (A) In general
          A plan may not be amended after the date of the adoption of a
        funding improvement plan so as to be inconsistent with the
        funding improvement plan.
        (B) No reduction in contributions
          A plan sponsor may not during any funding improvement period
        accept a collective bargaining agreement or participation
        agreement with respect to the multiemployer plan that provides
        for - 
            (i) a reduction in the level of contributions for any
          participants,
            (ii) a suspension of contributions with respect to any
          period of service, or
            (iii) any new direct or indirect exclusion of younger or
          newly hired employees from plan participation.
        (C) Special rules for benefit increases
          A plan may not be amended after the date of the adoption of a
        funding improvement plan so as to increase benefits, including
        future benefit accruals, unless the plan actuary certifies that
        the benefit increase is consistent with the funding improvement
        plan and is paid for out of contributions not required by the
        funding improvement plan to meet the applicable benchmark in
        accordance with the schedule contemplated in the funding
        improvement plan.
    (e) Rehabilitation plan must be adopted for multiemployer plans in
      critical status
      (1) In general
        In any case in which a multiemployer plan is in critical status
      for a plan year, the plan sponsor, in accordance with this
      subsection - 
          (A) shall adopt a rehabilitation plan not later than 240 days
        following the required date for the actuarial certification of
        critical status under subsection (b)(3)(A), and
          (B) within 30 days after the adoption of the rehabilitation
        plan - 
            (i) shall provide to the bargaining parties 1 or more
          schedules showing revised benefit structures, revised
          contribution structures, or both, which, if adopted, may
          reasonably be expected to enable the multiemployer plan to
          emerge from critical status in accordance with the
          rehabilitation plan, and
            (ii) may, if the plan sponsor deems appropriate, prepare
          and provide the bargaining parties with additional
          information relating to contribution rates or benefit
          reductions, alternative schedules, or other information
          relevant to emerging from critical status in accordance with
          the rehabilitation plan.

      The schedule or schedules described in subparagraph (B)(i) shall
      reflect reductions in future benefit accruals and adjustable
      benefits, and increases in contributions, that the plan sponsor
      determines are reasonably necessary to emerge from critical
      status. One schedule shall be designated as the default schedule
      and such schedule shall assume that there are no increases in
      contributions under the plan other than the increases necessary
      to emerge from critical status after future benefit accruals and
      other benefits (other than benefits the reduction or elimination
      of which are not permitted under section 1054(g) of this title)
      have been reduced to the maximum extent permitted by law.
      (2) Exception for years after process begins
        Paragraph (1) shall not apply to a plan year if such year is in
      a rehabilitation plan adoption period or rehabilitation period by
      reason of the plan being in critical status for a preceding plan
      year. For purposes of this section, such preceding plan year
      shall be the initial critical year with respect to the
      rehabilitation plan to which it relates.
      (3) Rehabilitation plan
        For purposes of this section - 
        (A) In general
          A rehabilitation plan is a plan which consists of - 
            (i) actions, including options or a range of options to be
          proposed to the bargaining parties, formulated, based on
          reasonably anticipated experience and reasonable actuarial
          assumptions, to enable the plan to cease to be in critical
          status by the end of the rehabilitation period and may
          include reductions in plan expenditures (including plan
          mergers and consolidations), reductions in future benefit
          accruals or increases in contributions, if agreed to by the
          bargaining parties, or any combination of such actions, or
            (ii) if the plan sponsor determines that, based on
          reasonable actuarial assumptions and upon exhaustion of all
          reasonable measures, the plan can not reasonably be expected
          to emerge from critical status by the end of the
          rehabilitation period, reasonable measures to emerge from
          critical status at a later time or to forestall possible
          insolvency (within the meaning of section 1426 of this
          title).

        A rehabilitation plan must provide annual standards for meeting
        the requirements of such rehabilitation plan. Such plan shall
        also include the schedules required to be provided under
        paragraph (1)(B)(i) and if clause (ii) applies, shall set forth
        the alternatives considered, explain why the plan is not
        reasonably expected to emerge from critical status by the end
        of the rehabilitation period, and specify when, if ever, the
        plan is expected to emerge from critical status in accordance
        with the rehabilitation plan.
        (B) Updates to rehabilitation plan and schedules
          (i) Rehabilitation plan
            The plan sponsor shall annually update the rehabilitation
          plan and shall file the update with the plan's annual report
          under section 1024 of this title.
          (ii) Schedules
            The plan sponsor shall annually update any schedule of
          contribution rates provided under this subsection to reflect
          the experience of the plan.
          (iii) Duration of schedule
            A schedule of contribution rates provided by the plan
          sponsor and relied upon by bargaining parties in negotiating
          a collective bargaining agreement shall remain in effect for
          the duration of that collective bargaining agreement.
        (C) Imposition of default schedule where failure to adopt
          rehabilitation plan
          (i) In general
            If - 
              (I) a collective bargaining agreement providing for
            contributions under a multiemployer plan that was in effect
            at the time the plan entered critical status expires, and
              (II) after receiving one or more schedules from the plan
            sponsor under paragraph (1)(B), the bargaining parties with
            respect to such agreement fail to adopt a contribution or
            benefit schedules with terms consistent with the
            rehabilitation plan and the schedule from the plan sponsor
            under paragraph (1)(B)(i),

          the plan sponsor shall implement the default schedule
          described in the last sentence of paragraph (1) beginning on
          the date specified in clause (ii).
          (ii) Date of implementation
            The date specified in this clause is the earlier of the
          date - 
              (I) on which the Secretary certifies that the parties are
            at an impasse, or
              (II) which is 180 days after the date on which the
            collective bargaining agreement described in clause (i)
            expires.
      (4) Rehabilitation period
        For purposes of this section - 
        (A) In general
          The rehabilitation period for a plan in critical status is
        the 10-year period beginning on the first day of the first plan
        year of the multiemployer plan following the earlier of - 
            (i) the second anniversary of the date of the adoption of
          the rehabilitation plan, or
            (ii) the expiration of the collective bargaining agreements
          in effect on the date of the due date for the actuarial
          certification of critical status for the initial critical
          year under subsection (a)(1) and covering, as of such date at
          least 75 percent of the active participants in such
          multiemployer plan.

        If a plan emerges from critical status as provided under
        subparagraph (B) before the end of such 10-year period, the
        rehabilitation period shall end with the plan year preceding
        the plan year for which the determination under subparagraph
        (B) is made.
        (B) Emergence
          A plan in critical status shall remain in such status until a
        plan year for which the plan actuary certifies, in accordance
        with subsection (b)(3)(A), that the plan is not projected to
        have an accumulated funding deficiency for the plan year or any
        of the 9 succeeding plan years, without regard to the use of
        the shortfall method and taking into account any extension of
        amortization periods under section 1084(d) of this title.
      (5) Rehabilitation plan adoption period
        For purposes of this section, the term "rehabilitation plan
      adoption period" means the period beginning on the date of the
      certification under subsection (b)(3)(A) for the initial critical
      year and ending on the day before the first day of the
      rehabilitation period.
      (6) Limitation on reduction in rates of future accruals
        Any reduction in the rate of future accruals under the default
      schedule described in paragraph (1)(B)(i) shall not reduce the
      rate of future accruals below - 
          (A) a monthly benefit (payable as a single life annuity
        commencing at the participant's normal retirement age) equal to
        1 percent of the contributions required to be made with respect
        to a participant, or the equivalent standard accrual rate for a
        participant or group of participants under the collective
        bargaining agreements in effect as of the first day of the
        initial critical year, or
          (B) if lower, the accrual rate under the plan on such first
        day.

      The equivalent standard accrual rate shall be determined by the
      plan sponsor based on the standard or average contribution base
      units which the plan sponsor determines to be representative for
      active participants and such other factors as the plan sponsor
      determines to be relevant. Nothing in this paragraph shall be
      construed as limiting the ability of the plan sponsor to prepare
      and provide the bargaining parties with alternative schedules to
      the default schedule that established lower or higher accrual and
      contribution rates than the rates otherwise described in this
      paragraph.
      (7) Automatic employer surcharge
        (A) Imposition of surcharge
          Each employer otherwise obligated to make contributions for
        the initial critical year shall be obligated to pay to the plan
        for such year a surcharge equal to 5 percent of the
        contributions otherwise required under the applicable
        collective bargaining agreement (or other agreement pursuant to
        which the employer contributes). For each succeeding plan year
        in which the plan is in critical status for a consecutive
        period of years beginning with the initial critical year, the
        surcharge shall be 10 percent of the contributions otherwise so
        required.
        (B) Enforcement of surcharge
          The surcharges under subparagraph (A) shall be due and
        payable on the same schedule as the contributions on which the
        surcharges are based. Any failure to make a surcharge payment
        shall be treated as a delinquent contribution under section
        1145 of this title and shall be enforceable as such.
        (C) Surcharge to terminate upon collective bargaining agreement
          renegotiation
          The surcharge under this paragraph shall cease to be
        effective with respect to employees covered by a collective
        bargaining agreement (or other agreement pursuant to which the
        employer contributes), beginning on the effective date of a
        collective bargaining agreement (or other such agreement) that
        includes terms consistent with a schedule presented by the plan
        sponsor under paragraph (1)(B)(i), as modified under
        subparagraph (B) of paragraph (3).
        (D) Surcharge not to apply until employer receives notice
          The surcharge under this paragraph shall not apply to an
        employer until 30 days after the employer has been notified by
        the plan sponsor that the plan is in critical status and that
        the surcharge is in effect.
        (E) Surcharge not to generate increased benefit accruals
          Notwithstanding any provision of a plan to the contrary, the
        amount of any surcharge under this paragraph shall not be the
        basis for any benefit accrual under the plan.
      (8) Benefit adjustments
        (A) Adjustable benefits
          (i) In general
            Notwithstanding section 1054(g) of this title, the plan
          sponsor shall, subject to the notice requirements in
          subparagraph (C), make any reductions to adjustable benefits
          which the plan sponsor deems appropriate, based upon the
          outcome of collective bargaining over the schedule or
          schedules provided under paragraph (1)(B)(i).
          (ii) Exception for retirees
            Except in the case of adjustable benefits described in
          clause (iv)(III), the plan sponsor of a plan in critical
          status shall not reduce adjustable benefits of any
          participant or beneficiary whose benefit commencement date is
          before the date on which the plan provides notice to the
          participant or beneficiary under subsection (b)(3)(D) for the
          initial critical year.
          (iii) Plan sponsor flexibility
            The plan sponsor shall include in the schedules provided to
          the bargaining parties an allowance for funding the benefits
          of participants with respect to whom contributions are not
          currently required to be made, and shall reduce their
          benefits to the extent permitted under this subchapter and
          considered appropriate by the plan sponsor based on the
          plan's then current overall funding status.
          (iv) Adjustable benefit defined
            For purposes of this paragraph, the term "adjustable
          benefit" means - 
              (I) benefits, rights, and features under the plan,
            including post-retirement death benefits, 60-month
            guarantees, disability benefits not yet in pay status, and
            similar benefits,
              (II) any early retirement benefit or retirement-type
            subsidy (within the meaning of section 1054(g)(2)(A) of
            this title) and any benefit payment option (other than the
            qualified joint and survivor annuity), and
              (III) benefit increases that would not be eligible for a
            guarantee under section 1322a of this title on the first
            day of initial critical year because the increases were
            adopted (or, if later, took effect) less than 60 months
            before such first day.
        (B) Normal retirement benefits protected
          Except as provided in subparagraph (A)(iv)(III), nothing in
        this paragraph shall be construed to permit a plan to reduce
        the level of a participant's accrued benefit payable at normal
        retirement age.
        (C) Notice requirements
          (i) In general
            No reduction may be made to adjustable benefits under
          subparagraph (A) unless notice of such reduction has been
          given at least 30 days before the general effective date of
          such reduction for all participants and beneficiaries to - 
              (I) plan participants and beneficiaries,
              (II) each employer who has an obligation to contribute
            (within the meaning of section 1392(a) of this title) under
            the plan, and
              (III) each employee organization which, for purposes of
            collective bargaining, represents plan participants
            employed by such an employer.
          (ii) Content of notice
            The notice under clause (i) shall contain - 
              (I) sufficient information to enable participants and
            beneficiaries to understand the effect of any reduction on
            their benefits, including an estimate (on an annual or
            monthly basis) of any affected adjustable benefit that a
            participant or beneficiary would otherwise have been
            eligible for as of the general effective date described in
            clause (i), and
              (II) information as to the rights and remedies of plan
            participants and beneficiaries as well as how to contact
            the Department of Labor for further information and
            assistance where appropriate.
          (iii) Form and manner
            Any notice under clause (i) - 
              (I) shall be provided in a form and manner prescribed in
            regulations of the Secretary,
              (II) shall be written in a manner so as to be understood
            by the average plan participant, and
              (III) may be provided in written, electronic, or other
            appropriate form to the extent such form is reasonably
            accessible to persons to whom the notice is required to be
            provided.

          The Secretary shall in the regulations prescribed under
          subclause (I) establish a model notice that a plan sponsor
          may use to meet the requirements of this subparagraph.
      (9) Adjustments disregarded in withdrawal liability determination
        (A) Benefit reductions
          Any benefit reductions under this subsection shall be
        disregarded in determining a plan's unfunded vested benefits
        for purposes of determining an employer's withdrawal liability
        under section 1381 of this title.
        (B) Surcharges
          Any surcharges under paragraph (7) shall be disregarded in
        determining an employer's withdrawal liability under section
        1391 of this title, except for purposes of determining the
        unfunded vested benefits attributable to an employer under
        section 1391(c)(4) of this title or a comparable method
        approved under section 1391(c)(5) of this title.
        (C) Simplified calculations
          The Pension Benefit Guaranty Corporation shall prescribe
        simplified methods for the application of this paragraph in
        determining withdrawal liability.
    (f) Rules for operation of plan during adoption and rehabilitation
      period
      (1) Compliance with rehabilitation plan
        (A) In general
          A plan may not be amended after the date of the adoption of a
        rehabilitation plan under subsection (e) so as to be
        inconsistent with the rehabilitation plan.
        (B) Special rules for benefit increases
          A plan may not be amended after the date of the adoption of a
        rehabilitation plan under subsection (e) so as to increase
        benefits, including future benefit accruals, unless the plan
        actuary certifies that such increase is paid for out of
        additional contributions not contemplated by the rehabilitation
        plan, and, after taking into account the benefit increase, the
        multiemployer plan still is reasonably expected to emerge from
        critical status by the end of the rehabilitation period on the
        schedule contemplated in the rehabilitation plan.
      (2) Restriction on lump sums and similar benefits
        (A) In general
          Effective on the date the notice of certification of the
        plan's critical status for the initial critical year under
        subsection (b)(3)(D) is sent, and notwithstanding section
        1054(g) of this title, the plan shall not pay - 
            (i) any payment, in excess of the monthly amount paid under
          a single life annuity (plus any social security supplements
          described in the last sentence of section 1054(b)(1)(G) of
          this title),
            (ii) any payment for the purchase of an irrevocable
          commitment from an insurer to pay benefits, and
            (iii) any other payment specified by the Secretary of the
          Treasury by regulations.
        (B) Exception
          Subparagraph (A) shall not apply to a benefit which under
        section 1053(e) of this title may be immediately distributed
        without the consent of the participant or to any makeup payment
        in the case of a retroactive annuity starting date or any
        similar payment of benefits owed with respect to a prior
        period.
      (3) Adjustments disregarded in withdrawal liability determination
        Any benefit reductions under this subsection shall be
      disregarded in determining a plan's unfunded vested benefits for
      purposes of determining an employer's withdrawal liability under
      section 1381 of this title.
      (4) Special rules for plan adoption period
        During the rehabilitation plan adoption period - 
          (A) the plan sponsor may not accept a collective bargaining
        agreement or participation agreement with respect to the
        multiemployer plan that provides for - 
            (i) a reduction in the level of contributions for any
          participants,
            (ii) a suspension of contributions with respect to any
          period of service, or
            (iii) any new direct or indirect exclusion of younger or
          newly hired employees from plan participation, and

          (B) no amendment of the plan which increases the liabilities
        of the plan by reason of any increase in benefits, any change
        in the accrual of benefits, or any change in the rate at which
        benefits become nonforfeitable under the plan may be adopted
        unless the amendment is required as a condition of
        qualification under part I of subchapter D of chapter 1 of
        title 26 or to comply with other applicable law.
    (g) Expedited resolution of plan sponsor decisions
      If, within 60 days of the due date for adoption of a funding
    improvement plan or a rehabilitation plan under subsection (e), the
    plan sponsor of a plan in endangered status or a plan in critical
    status has not agreed on a funding improvement plan or
    rehabilitation plan, then any member of the board or group that
    constitutes the plan sponsor may require that the plan sponsor
    enter into an expedited dispute resolution procedure for the
    development and adoption of a funding improvement plan or
    rehabilitation plan.
    (h) Nonbargained participation
      (1) Both bargained and nonbargained employee-participants
        In the case of an employer that contributes to a multiemployer
      plan with respect to both employees who are covered by one or
      more collective bargaining agreements and employees who are not
      so covered, if the plan is in endangered status or in critical
      status, benefits of and contributions for the nonbargained
      employees, including surcharges on those contributions, shall be
      determined as if those nonbargained employees were covered under
      the first to expire of the employer's collective bargaining
      agreements in effect when the plan entered endangered or critical
      status.
      (2) Nonbargained employees only
        In the case of an employer that contributes to a multiemployer
      plan only with respect to employees who are not covered by a
      collective bargaining agreement, this section shall be applied as
      if the employer were the bargaining party, and its participation
      agreement with the plan were a collective bargaining agreement
      with a term ending on the first day of the plan year beginning
      after the employer is provided the schedule or schedules
      described in subsections (c) and (e).
    (i) Definitions; actuarial method
      For purposes of this section - 
      (1) Bargaining party
        The term "bargaining party" means - 
          (A)(i) except as provided in clause (ii), an employer who has
        an obligation to contribute under the plan; or
          (ii) in the case of a plan described under section 404(c) of
        title 26, or a continuation of such a plan, the association of
        employers that is the employer settlor of the plan; and
          (B) an employee organization which, for purposes of
        collective bargaining, represents plan participants employed by
        an employer who has an obligation to contribute under the plan.
      (2) Funded percentage
        The term "funded percentage" means the percentage equal to a
      fraction - 
          (A) the numerator of which is the value of the plan's assets,
        as determined under section 1084(c)(2) of this title, and
          (B) the denominator of which is the accrued liability of the
        plan, determined using actuarial assumptions described in
        section 1084(c)(3) of this title.
      (3) Accumulated funding deficiency
        The term "accumulated funding deficiency" has the meaning given
      such term in section 1084(a) of this title.
      (4) Active participant
        The term "active participant" means, in connection with a
      multiemployer plan, a participant who is in covered service under
      the plan.
      (5) Inactive participant
        The term "inactive participant" means, in connection with a
      multiemployer plan, a participant, or the beneficiary or
      alternate payee of a participant, who - 
          (A) is not in covered service under the plan, and
          (B) is in pay status under the plan or has a nonforfeitable
        right to benefits under the plan.
      (6) Pay status
        A person is in pay status under a multiemployer plan if - 
          (A) at any time during the current plan year, such person is
        a participant or beneficiary under the plan and is paid an
        early, late, normal, or disability retirement benefit under the
        plan (or a death benefit under the plan related to a retirement
        benefit), or
          (B) to the extent provided in regulations of the Secretary of
        the Treasury, such person is entitled to such a benefit under
        the plan.
      (7) Obligation to contribute
        The term "obligation to contribute" has the meaning given such
      term under section 1392(a) of this title.
      (8) Actuarial method
        Notwithstanding any other provision of this section, the
      actuary's determinations with respect to a plan's normal cost,
      actuarial accrued liability, and improvements in a plan's funded
      percentage under this section shall be based upon the unit credit
      funding method (whether or not that method is used for the plan's
      actuarial valuation).
      (9) Plan sponsor
        In the case of a plan described under section 404(c) of title
      26, or a continuation of such a plan, the term "plan sponsor"
      means the bargaining parties described under paragraph (1).
      (10) Benefit commencement date
        The term "benefit commencement date" means the annuity starting
      date (or in the case of a retroactive annuity starting date, the
      date on which benefit payments begin).


-MISC1-
                      EFFECTIVE AND TERMINATION DATES                  
      New section 1085 of this title, enacted by section 202(a) of Pub.
    L. 109-280, applicable with respect to plan years beginning after
    2007, with special rules for certain notices and certain restored
    benefits, see section 202(f) of Pub. L. 109-280, set out as an
    Effective and Termination Dates of 2006 Amendment note under
    section 1082 of this title.
      New section 1085 of this title, enacted by section 202(a) of Pub.
    L. 109-280, inapplicable to plan years beginning after Dec. 31,
    2014, with exception for certain funding improvement and
    rehabilitation plans, see section 221(c) of Pub. L. 109-280, set
    out as an Effective and Termination Dates of 2006 Amendment note
    under section 412 of Title 26, Internal Revenue Code.

        SPECIAL RULE FOR CERTAIN BENEFITS FUNDED UNDER AN AGREEMENT
           APPROVED BY THE PENSION BENEFIT GUARANTY CORPORATION
      For applicability of new section 1085 of this title, enacted by
    section 202(a) of Pub. L. 109-280, to a multiemployer plan that is
    a party to an agreement that was approved by the Pension Benefit
    Guaranty Corporation prior to June 30, 2005, and that increases
    benefits and provides for certain withdrawal liability rules, see
    section 206 of Pub. L. 109-280, set out as a note under section 412
    of Title 26, Internal Revenue Code.

-End-



-CITE-
    29 USC Sec. 1085a                                           01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 3 - funding

-HEAD-
    Sec. 1085a. Security for waivers of minimum funding standard and
      extensions of amortization period

-STATUTE-
    (a) Security may be required
      (1) In general
        Except as provided in subsection (c) of this section, the
      Secretary of the Treasury may require an employer maintaining a
      defined benefit plan which is a single-employer plan (within the
      meaning of section 1301(a)(15) of this title) to provide security
      to such plan as a condition for granting or modifying a waiver
      under section 1083 of this title or an extension under section
      1084 of this title.
      (2) Special rules
        Any security provided under paragraph (1) may be perfected and
      enforced only by the Pension Benefit Guaranty Corporation or, at
      the direction of the Corporation, by a contributing sponsor
      (within the meaning of section 1301(a)(13) of this title) or a
      member of such sponsor's controlled group (within the meaning of
      section 1301(a)(14) of this title).
    (b) Consultation with the Pension Benefit Guaranty Corporation
      Except as provided in subsection (c) of this section, the
    Secretary of the Treasury shall, before granting or modifying a
    waiver under section 1083 of this title or an extension under
    section 1084 of this title with respect to a plan described in
    subsection (a)(1) of this section - 
        (1) provide the Pension Benefit Guaranty Corporation with - 
          (A) notice of the completed application for any waiver,
        extension, or modification, and
          (B) an opportunity to comment on such application within 30
        days after receipt of such notice, and

        (2) consider - 
          (A) any comments of the Corporation under paragraph (1)(B),
        and
          (B) any views of any employee organization representing
        participants in the plan which are submitted in writing to the
        Secretary of the Treasury in connection with such application.

    Information provided to the corporation under this subsection shall
    be considered tax return information and subject to the
    safeguarding and reporting requirements of section 6103(p) of title
    26.
    (c) Exception for certain waivers and extensions
      (1) In general
        The preceding provisions of this section shall not apply to any
      plan with respect to which the sum of - 
          (A) the outstanding balance of the accumulated funding
        deficiencies (within the meaning of section 1082(a)(2) of this
        title and section 412(a) of title 26) of the plan,
          (B) the outstanding balance of the amount of waived funding
        deficiencies of the plan waived under section 1083 of this
        title or section 412(d) of title 26, and
          (C) the outstanding balance of the amount of decreases in the
        minimum funding standard allowed under section 1084 of this
        title or section 412(e) of title 26,

      is less than $1,000,000.
      (2) Accumulated funding deficiencies
        For purposes of paragraph (1)(A), accumulated funding
      deficiencies shall include any increase in such amount which
      would result if all applications for waivers of the minimum
      funding standard under section 1083 of this title or section
      412(d) of title 26 and for extensions of the amortization period
      under section 1084 of this title or section 412(e) of title 26
      which are pending with respect to such plan were denied.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 306, as added Pub. L. 99-272, title
    XI, Sec. 11015(a)(1)(A)(ii), Apr. 7, 1986, 100 Stat. 264; amended
    Pub. L. 100-203, title IX, Sec. 9306(e)(2), Dec. 22, 1987, 101
    Stat. 1330-355; Pub. L. 101-239, title VII, Sec. 7891(a)(1), Dec.
    19, 1989, 103 Stat. 2445.)


-STATAMEND-
                             REPEAL OF SECTION                         
      Pub. L. 109-280, title I, Sec. 101(a), (d), Aug. 17, 2006, 120
    Stat. 784, 789, provided that, applicable to plan years beginning
    after 2007, this section is repealed.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 306 of Pub. L. 93-406 was renumbered section 308
    and is classified to section 1086 of this title.

                                AMENDMENTS                            
      1989 - Subsecs. (b), (c). Pub. L. 101-239 substituted "Internal
    Revenue Code of 1986" for "Internal Revenue Code of 1954", which
    for purposes of codification was translated as "title 26" thus
    requiring no change in text.
      1987 - Subsec. (c)(1). Pub. L. 100-203, Sec. 9306(e)(2),
    substituted "$1,000,000" for "$2,000,000".

                         EFFECTIVE DATE OF REPEAL                     
      Repeal applicable to plan years beginning after 2007, see section
    101(d) of Pub. L. 109-280, set out as an Effective Date note under
    section 1082 of this title.

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by Pub. L. 101-239 effective, except as otherwise
    provided, as if included in the provision of the Tax Reform Act of
    1986, Pub. L. 99-514, to which such amendment relates, see section
    7891(f) of Pub. L. 101-239, set out as a note under section 1002 of
    this title.

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Amendment by Pub. L. 100-203 applicable in the case of any
    application submitted after Dec. 17, 1987, and any waiver granted
    pursuant to such an application, see section 9306(f) of Pub. L. 100-
    203, set out as a note under section 412 of Title 26, Internal
    Revenue Code.

                              EFFECTIVE DATE                          
      Section 11015(a)(3) of Pub. L. 99-272 provided that: "The
    amendments made by this subsection [enacting this section and
    amending section 1061 of this title and section 412 of Title 26,
    Internal Revenue Code] shall apply with respect to applications for
    waivers, extensions, and modifications filed on or after the date
    of the enactment of this Act [Apr. 7, 1986]."

    APPLICABILITY OF AMENDMENTS BY SUBTITLES A AND B OF TITLE I OF PUB.
                                L. 109-280
      For special rules on applicability of amendments by subtitles A
    (Secs. 101-107) and B (Secs. 111-116) of title I of Pub. L. 109-280
    to certain eligible cooperative plans, PBGC settlement plans, and
    eligible government contractor plans, see sections 104, 105, and
    106 of Pub. L. 109-280, set out as notes under section 401 of Title
    26, Internal Revenue Code.

-End-



-CITE-
    29 USC Sec. 1085b                                           01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 3 - funding

-HEAD-
    Sec. 1085b. Security required upon adoption of plan amendment
      resulting in significant underfunding

-STATUTE-
    (a) In general
      If - 
        (1) a defined benefit plan (other than a multiemployer plan) to
      which the requirements of section 1082 of this title apply adopts
      an amendment an effect of which is to increase current liability
      under the plan for a plan year, and
        (2) the funded current liability percentage of the plan for the
      plan year in which the amendment takes effect is less than 60
      percent, including the amount of the unfunded current liability
      under the plan attributable to the plan amendment,

    the contributing sponsor (or any member of the controlled group of
    the contributing sponsor) shall provide security to the plan.
    (b) Form of security
      The security required under subsection (a) of this section shall
    consist of - 
        (1) a bond issued by a corporate surety company that is an
      acceptable surety for purposes of section 1112 of this title,
        (2) cash, or United States obligations which mature in 3 years
      or less, held in escrow by a bank or similar financial
      institution, or
        (3) such other form of security as is satisfactory to the
      Secretary of the Treasury and the parties involved.
    (c) Amount of security
      The security shall be in an amount equal to the excess of - 
        (1) the lesser of - 
          (A) the amount of additional plan assets which would be
        necessary to increase the funded current liability percentage
        under the plan to 60 percent, including the amount of the
        unfunded current liability under the plan attributable to the
        plan amendment, or
          (B) the amount of the increase in current liability under the
        plan attributable to the plan amendment and any other plan
        amendments adopted after December 22, 1987, and before such
        plan amendment, over

        (2) $10,000,000.
    (d) Release of security
      The security shall be released (and any amounts thereunder shall
    be refunded together with any interest accrued thereon) at the end
    of the first plan year which ends after the provision of the
    security and for which the funded current liability percentage
    under the plan is not less than 60 percent. The Secretary of the
    Treasury may prescribe regulations for partial releases of the
    security by reason of increases in the funded current liability
    percentage.
    (e) Notice
      A contributing sponsor which is required to provide security
    under subsection (a) of this section shall notify the Pension
    Benefit Guaranty Corporation within 30 days after the amendment
    requiring such security takes effect. Such notice shall contain
    such information as the Corporation may require.
    (f) Definitions
      For purposes of this section, the terms "current liability",
    "funded current liability percentage", and "unfunded current
    liability" shall have the meanings given such terms by section
    1082(d) of this title, except that in computing unfunded current
    liability there shall not be taken into account any unamortized
    portion of the unfunded old liability amount as of the close of the
    plan year.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 307, as added Pub. L. 100-203, title
    IX, Sec. 9341(b)(2), Dec. 22, 1987, 101 Stat. 1330-370; amended
    Pub. L. 101-239, title VII, Sec. 7881(i)(1)(B)-(3)(A), (4)(B), Dec.
    19, 1989, 103 Stat. 2442.)


-STATAMEND-
                             REPEAL OF SECTION                         
      Pub. L. 109-280, title I, Sec. 101(a), (d), Aug. 17, 2006, 120
    Stat. 784, 789, provided that, applicable to plan years beginning
    after 2007, this section is repealed.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 307 of Pub. L. 93-406 was renumbered section 308
    and is classified to section 1086 of this title.

                                AMENDMENTS                            
      1989 - Subsec. (a)(1). Pub. L. 101-239, Sec. 7881(i)(4)(B),
    inserted "to which the requirements of section 1082 of this title
    apply" after "multiemployer plan)".
      Subsec. (c)(1)(B). Pub. L. 101-239, Sec. 7881(i)(1)(B), which
    directed amendment of subsec. (c)(1)(B) by inserting "and any other
    plan amendments adopted after December 22, 1987, and before such
    plan amendment" without specifying where such language was to be
    inserted, was executed by making the insertion after "to the plan
    amendment", as the probable intent of Congress.
      Subsec. (d). Pub. L. 101-239, Sec. 7881(i)(2), inserted "of the
    Treasury" after "Secretary".
      Subsecs. (e), (f). Pub. L. 101-239, Sec. 7881(i)(3)(A), added
    subsec. (e) and redesignated former subsec. (e) as (f).

                         EFFECTIVE DATE OF REPEAL                     
      Repeal applicable to plan years beginning after 2007, see section
    101(d) of Pub. L. 109-280, set out as an Effective Date note under
    section 1082 of this title.

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by Pub. L. 101-239 effective, except as otherwise
    provided, as if included in the provision of the Pension Protection
    Act, Pub. L. 100-203, Secs. 9302-9346, to which such amendment
    relates, see section 7882 of Pub. L. 101-239, set out as a note
    under section 401 of Title 26, Internal Revenue Code.

                              EFFECTIVE DATE                          
      This section applicable to plan amendments adopted after Dec. 22,
    1987, except that, in the case of a plan maintained pursuant to one
    or more collective bargaining agreements between employee
    representatives and one or more employers ratified before Dec. 22,
    1987, this section not applicable to plan amendments adopted
    pursuant to collective bargaining agreements ratified before Dec.
    22, 1987, see section 9341(c) of Pub. L. 100-203, set out as an
    Effective Date of 1987 Amendment note under section 401 of Title
    26, Internal Revenue Code.

    APPLICABILITY OF AMENDMENTS BY SUBTITLES A AND B OF TITLE I OF PUB.
                                L. 109-280
      For special rules on applicability of amendments by subtitles A
    (Secs. 101-107) and B (Secs. 111-116) of title I of Pub. L. 109-280
    to certain eligible cooperative plans, PBGC settlement plans, and
    eligible government contractor plans, see sections 104, 105, and
    106 of Pub. L. 109-280, set out as notes under section 401 of Title
    26, Internal Revenue Code.

-End-



-CITE-
    29 USC Sec. 1086                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 3 - funding

-HEAD-
    Sec. 1086. Effective dates

-STATUTE-
      (a) Except as otherwise provided in this section, this part shall
    apply in the case of plan years beginning after September 2, 1974.
      (b) Except as otherwise provided in subsections (c) and (d) of
    this section, in the case of a plan in existence on January 1,
    1974, this part shall apply in the case of plan years beginning
    after December 31, 1975.
      (c)(1) In the case of a plan maintained on January 1, 1974,
    pursuant to one or more agreements which the Secretary finds to be
    collective bargaining agreements between employee representatives
    and one or more employers, this part shall apply only with respect
    to plan years beginning after the earlier of the date specified in
    subparagraph (A) or (B) of section 1061(c)(1) of this title.
      (2) This subsection shall apply with respect to a plan if (and
    only if) the application of this subsection results in a later
    effective date for this part than the effective date required by
    subsection (b) of this section.
      (d) In the case of a plan the administrator of which elects under
    section 1017(d) of this Act to have the provisions of the Internal
    Revenue Code of 1954 relating to participation, vesting, funding,
    and form of benefit to apply to a plan year and to all subsequent
    plan years, this part shall apply to plan years beginning on the
    earlier of the first plan year to which such election applies or
    the first plan year determined under subsections (a), (b), and (c)
    of this section.
      (e) In the case of a plan maintained by a labor organization
    which is exempt from tax under section 501(c)(5) of title 26
    exclusively for the benefit of its employees and their
    beneficiaries, this part shall be applied by substituting for the
    term "December 31, 1975" in subsection (b) of this section, the
    earlier of - 
        (1) the date on which the second convention of such labor
      organization held after September 2, 1974, ends or
        (2) December 31, 1980,

    but in no event shall a date earlier than the later of December 31,
    1975, or the date determined under subsection (c) of this section
    be substituted.
      (f) The preceding provisions of this section shall not apply with
    respect to amendments made to this part in provisions enacted after
    September 2, 1974.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 308, formerly Sec. 306, Sept. 2,
    1974, 88 Stat. 874, renumbered Sec. 307, Pub. L. 99-272, title XI,
    Sec. 11015(a)(1)(A)(i), Apr. 7, 1986, 100 Stat. 264; renumbered
    Sec. 308, Pub. L. 100-203, title IX, Sec. 9341(b)(1), Dec. 22,
    1987, 101 Stat. 1330-370; amended Pub. L. 101-239, title VII, Sec.
    7894(h)(3), Dec. 19, 1989, 103 Stat. 2451.)


-STATAMEND-
                             REPEAL OF SECTION                         
      Pub. L. 109-280, title I, Sec. 101(a), (d), Aug. 17, 2006, 120
    Stat. 784, 789, provided that, applicable to plan years beginning
    after 2007, this section is repealed.

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 1017 of this Act, referred to in subsec. (d), is section
    1017 of Pub. L. 93-406, which is set out as an Effective Date;
    Transitional Rules note under section 410 of Title 26, Internal
    Revenue Code.
      The Internal Revenue Code of 1954, referred to in subsec. (d),
    was redesignated the Internal Revenue Code of 1986 by Pub. L. 99-
    514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, and is classified to
    Title 26.


-MISC1-
                                AMENDMENTS                            
      1989 - Subsec. (f). Pub. L. 101-239 added subsec. (f).

                         EFFECTIVE DATE OF REPEAL                     
      Repeal applicable to plan years beginning after 2007, see section
    101(d) of Pub. L. 109-280, set out as an Effective Date note under
    section 1082 of this title.

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by Pub. L. 101-239 effective, except as otherwise
    provided, as if originally included in the provision of the
    Employee Retirement Income Security Act of 1974, Pub. L. 93-406, to
    which such amendment relates, see section 7894(i) of Pub. L. 101-
    239, set out as a note under section 1002 of this title.

    APPLICABILITY OF AMENDMENTS BY SUBTITLES A AND B OF TITLE I OF PUB.
                                L. 109-280
      For special rules on applicability of amendments by subtitles A
    (Secs. 101-107) and B (Secs. 111-116) of title I of Pub. L. 109-280
    to certain eligible cooperative plans, PBGC settlement plans, and
    eligible government contractor plans, see sections 104, 105, and
    106 of Pub. L. 109-280, set out as notes under section 401 of Title
    26, Internal Revenue Code.

-End-


-CITE-
    29 USC part 4 - fiduciary responsibility                    01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 4 - fiduciary responsibility

-HEAD-
                     PART 4 - FIDUCIARY RESPONSIBILITY                 

-End-



-CITE-
    29 USC Sec. 1101                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 4 - fiduciary responsibility

-HEAD-
    Sec. 1101. Coverage

-STATUTE-
    (a) Scope of coverage
      This part shall apply to any employee benefit plan described in
    section 1003(a) of this title (and not exempted under section
    1003(b) of this title), other than - 
        (1) a plan which is unfunded and is maintained by an employer
      primarily for the purpose of providing deferred compensation for
      a select group of management or highly compensated employees; or
        (2) any agreement described in section 736 of title 26, which
      provides payments to a retired partner or deceased partner or a
      deceased partner's successor in interest.
    (b) Securities or policies deemed to be included in plan assets
      For purposes of this part:
        (1) In the case of a plan which invests in any security issued
      by an investment company registered under the Investment Company
      Act of 1940 [15 U.S.C. 80a-1 et seq.], the assets of such plan
      shall be deemed to include such security but shall not, solely by
      reason of such investment, be deemed to include any assets of
      such investment company.
        (2) In the case of a plan to which a guaranteed benefit policy
      is issued by an insurer, the assets of such plan shall be deemed
      to include such policy, but shall not, solely by reason of the
      issuance of such policy, be deemed to include any assets of such
      insurer. For purposes of this paragraph:
          (A) The term "insurer" means an insurance company, insurance
        service, or insurance organization, qualified to do business in
        a State.
          (B) The term "guaranteed benefit policy" means an insurance
        policy or contract to the extent that such policy or contract
        provides for benefits the amount of which is guaranteed by the
        insurer. Such term includes any surplus in a separate account,
        but excludes any other portion of a separate account.
    (c) Clarification of application of ERISA to insurance company
      general accounts
      (1)(A) Not later than June 30, 1997, the Secretary shall issue
    proposed regulations to provide guidance for the purpose of
    determining, in cases where an insurer issues 1 or more policies to
    or for the benefit of an employee benefit plan (and such policies
    are supported by assets of such insurer's general account), which
    assets held by the insurer (other than plan assets held in its
    separate accounts) constitute assets of the plan for purposes of
    this part and section 4975 of title 26 and to provide guidance with
    respect to the application of this subchapter to the general
    account assets of insurers.
      (B) The proposed regulations under subparagraph (A) shall be
    subject to public notice and comment until September 30, 1997.
      (C) The Secretary shall issue final regulations providing the
    guidance described in subparagraph (A) not later than December 31,
    1997.
      (D) Such regulations shall only apply with respect to policies
    which are issued by an insurer on or before December 31, 1998, to
    or for the benefit of an employee benefit plan which is supported
    by assets of such insurer's general account. With respect to
    policies issued on or before December 31, 1998, such regulations
    shall take effect at the end of the 18-month period following the
    date on which such regulations become final.
      (2) The Secretary shall ensure that the regulations issued under
    paragraph (1) - 
        (A) are administratively feasible, and
        (B) protect the interests and rights of the plan and of its
      participants and beneficiaries (including meeting the
      requirements of paragraph (3)).

      (3) The regulations prescribed by the Secretary pursuant to
    paragraph (1) shall require, in connection with any policy issued
    by an insurer to or for the benefit of an employee benefit plan to
    the extent that the policy is not a guaranteed benefit policy (as
    defined in subsection (b)(2)(B) of this section) - 
        (A) that a plan fiduciary totally independent of the insurer
      authorize the purchase of such policy (unless such purchase is a
      transaction exempt under section 1108(b)(5) of this title),
        (B) that the insurer describe (in such form and manner as shall
      be prescribed in such regulations), in annual reports and in
      policies issued to the policyholder after the date on which such
      regulations are issued in final form pursuant to paragraph (1)(C)
      - 
          (i) a description of the method by which any income and
        expenses of the insurer's general account are allocated to the
        policy during the term of the policy and upon the termination
        of the policy, and
          (ii) for each report, the actual return to the plan under the
        policy and such other financial information as the Secretary
        may deem appropriate for the period covered by each such annual
        report,

        (C) that the insurer disclose to the plan fiduciary the extent
      to which alternative arrangements supported by assets of separate
      accounts of the insurer (which generally hold plan assets) are
      available, whether there is a right under the policy to transfer
      funds to a separate account and the terms governing any such
      right, and the extent to which support by assets of the insurer's
      general account and support by assets of separate accounts of the
      insurer might pose differing risks to the plan, and
        (D) that the insurer manage those assets of the insurer which
      are assets of such insurer's general account (irrespective of
      whether any such assets are plan assets) with the care, skill,
      prudence, and diligence under the circumstances then prevailing
      that a prudent man acting in a like capacity and familiar with
      such matters would use in the conduct of an enterprise of a like
      character and with like aims, taking into account all obligations
      supported by such enterprise.

      (4) Compliance by the insurer with all requirements of the
    regulations issued by the Secretary pursuant to paragraph (1) shall
    be deemed compliance by such insurer with sections 1104, 1106, and
    1107 of this title with respect to those assets of the insurer's
    general account which support a policy described in paragraph (3).
      (5)(A) Subject to subparagraph (B), any regulations issued under
    paragraph (1) shall not take effect before the date on which such
    regulations become final.
      (B) No person shall be subject to liability under this part or
    section 4975 of title 26 for conduct which occurred before the date
    which is 18 months following the date described in subparagraph (A)
    on the basis of a claim that the assets of an insurer (other than
    plan assets held in a separate account) constitute assets of the
    plan, except - 
        (i) as otherwise provided by the Secretary in regulations
      intended to prevent avoidance of the regulations issued under
      paragraph (1), or
        (ii) as provided in an action brought by the Secretary pursuant
      to paragraph (2) or (5) of section 1132(a) of this title for a
      breach of fiduciary responsibilities which would also constitute
      a violation of Federal or State criminal law.

    The Secretary shall bring a cause of action described in clause
    (ii) if a participant, beneficiary, or fiduciary demonstrates to
    the satisfaction of the Secretary that a breach described in clause
    (ii) has occurred.
      (6) Nothing in this subsection shall preclude the application of
    any Federal criminal law.
      (7) For purposes of this subsection, the term "policy" includes a
    contract.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 401, Sept. 2, 1974, 88 Stat. 874;
    Pub. L. 101-239, title VII, Sec. 7891(a)(1), Dec. 19, 1989, 103
    Stat. 2445; Pub. L. 104-188, title I, Sec. 1460(a), Aug. 20, 1996,
    110 Stat. 1820.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Investment Company Act of 1940, referred to in subsec.
    (b)(1), is title I of act Aug. 22, 1940, ch. 686, 54 Stat. 789, as
    amended, which is classified generally to subchapter I (Sec. 80a-1
    et seq.) of chapter 2D of Title 15, Commerce and Trade. For
    complete classification of this Act to the Code, see section 80a-51
    of Title 15 and Tables.


-MISC1-
                                AMENDMENTS                            
      1996 - Subsec. (c). Pub. L. 104-188 added subsec. (c).
      1989 - Subsec. (a)(2). Pub. L. 101-239 substituted "Internal
    Revenue Code of 1986" for "Internal Revenue Code of 1954", which
    for purposes of codification was translated as "title 26" thus
    requiring no change in text.

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Section 1460(b) of Pub. L. 104-188 provided that:
      "(1) In general. - Except as provided in paragraph (2), the
    amendment made by this section [amending this section] shall take
    effect on January 1, 1975.
      "(2) Civil actions. - The amendment made by this section shall
    not apply to any civil action commenced before November 7, 1995."

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by Pub. L. 101-239 effective, except as otherwise
    provided, as if included in the provision of the Tax Reform Act of
    1986, Pub. L. 99-514, to which such amendment relates, see section
    7891(f) of Pub. L. 101-239, set out as a note under section 1002 of
    this title.

            PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1998        
      For provisions directing that if any amendments made by subtitle
    D [Secs. 1401-1465] of title I of Pub. L. 104-188 require an
    amendment to any plan or annuity contract, such amendment shall not
    be required to be made before the first day of the first plan year
    beginning on or after Jan. 1, 1998, see section 1465 of Pub. L. 104-
    188, set out as a note under section 401 of Title 26, Internal
    Revenue Code.

-End-



-CITE-
    29 USC Sec. 1102                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 4 - fiduciary responsibility

-HEAD-
    Sec. 1102. Establishment of plan

-STATUTE-
    (a) Named fiduciaries
      (1) Every employee benefit plan shall be established and
    maintained pursuant to a written instrument. Such instrument shall
    provide for one or more named fiduciaries who jointly or severally
    shall have authority to control and manage the operation and
    administration of the plan.
      (2) For purposes of this subchapter, the term "named fiduciary"
    means a fiduciary who is named in the plan instrument, or who,
    pursuant to a procedure specified in the plan, is identified as a
    fiduciary (A) by a person who is an employer or employee
    organization with respect to the plan or (B) by such an employer
    and such an employee organization acting jointly.
    (b) Requisite features of plan
      Every employee benefit plan shall - 
        (1) provide a procedure for establishing and carrying out a
      funding policy and method consistent with the objectives of the
      plan and the requirements of this subchapter,
        (2) describe any procedure under the plan for the allocation of
      responsibilities for the operation and administration of the plan
      (including any procedure described in section 1105(c)(1) of this
      title),
        (3) provide a procedure for amending such plan, and for
      identifying the persons who have authority to amend the plan, and
        (4) specify the basis on which payments are made to and from
      the plan.
    (c) Optional features of plan
      Any employee benefit plan may provide - 
        (1) that any person or group of persons may serve in more than
      one fiduciary capacity with respect to the plan (including
      service both as trustee and administrator);
        (2) that a named fiduciary, or a fiduciary designated by a
      named fiduciary pursuant to a plan procedure described in section
      1105(c)(1) of this title, may employ one or more persons to
      render advice with regard to any responsibility such fiduciary
      has under the plan; or
        (3) that a person who is a named fiduciary with respect to
      control or management of the assets of the plan may appoint an
      investment manager or managers to manage (including the power to
      acquire and dispose of) any assets of a plan.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 402, Sept. 2, 1974, 88 Stat. 875.)

-End-



-CITE-
    29 USC Sec. 1103                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 4 - fiduciary responsibility

-HEAD-
    Sec. 1103. Establishment of trust

-STATUTE-
    (a) Benefit plan assets to be held in trust; authority of trustees
      Except as provided in subsection (b) of this section, all assets
    of an employee benefit plan shall be held in trust by one or more
    trustees. Such trustee or trustees shall be either named in the
    trust instrument or in the plan instrument described in section
    1102(a) of this title or appointed by a person who is a named
    fiduciary, and upon acceptance of being named or appointed, the
    trustee or trustees shall have exclusive authority and discretion
    to manage and control the assets of the plan, except to the extent
    that - 
        (1) the plan expressly provides that the trustee or trustees
      are subject to the direction of a named fiduciary who is not a
      trustee, in which case the trustees shall be subject to proper
      directions of such fiduciary which are made in accordance with
      the terms of the plan and which are not contrary to this chapter,
      or
        (2) authority to manage, acquire, or dispose of assets of the
      plan is delegated to one or more investment managers pursuant to
      section 1102(c)(3) of this title.
    (b) Exceptions
      The requirements of subsection (a) of this section shall not
    apply - 
        (1) to any assets of a plan which consist of insurance
      contracts or policies issued by an insurance company qualified to
      do business in a State;
        (2) to any assets of such an insurance company or any assets of
      a plan which are held by such an insurance company;
        (3) to a plan - 
          (A) some or all of the participants of which are employees
        described in section 401(c)(1) of title 26; or
          (B) which consists of one or more individual retirement
        accounts described in section 408 of title 26;

      to the extent that such plan's assets are held in one or more
      custodial accounts which qualify under section 401(f) or 408(h)
      of title 26, whichever is applicable.
        (4) to a plan which the Secretary exempts from the requirement
      of subsection (a) of this section and which is not subject to any
      of the following provisions of this chapter - 
          (A) part 2 of this subtitle,
          (B) part 3 of this subtitle, or
          (C) subchapter III of this chapter; or

        (5) to a contract established and maintained under section
      403(b) of title 26 to the extent that the assets of the contract
      are held in one or more custodial accounts pursuant to section
      403(b)(7) of title 26.
        (6) Any plan, fund or program under which an employer, all of
      whose stock is directly or indirectly owned by employees, former
      employees or their beneficiaries, proposes through an unfunded
      arrangement to compensate retired employees for benefits which
      were forfeited by such employees under a pension plan maintained
      by a former employer prior to the date such pension plan became
      subject to this chapter.
    (c) Assets of plan not to inure to benefit of employer; allowable
      purposes of holding plan assets
      (1) Except as provided in paragraph (2), (3), or (4) or
    subsection (d) of this section, or under sections 1342 and 1344 of
    this title (relating to termination of insured plans), or under
    section 420 of title 26 (as in effect on October 22, 2004), the
    assets of a plan shall never inure to the benefit of any employer
    and shall be held for the exclusive purposes of providing benefits
    to participants in the plan and their beneficiaries and defraying
    reasonable expenses of administering the plan.
      (2)(A) In the case of a contribution, or a payment of withdrawal
    liability under part 1 of subtitle E of subchapter III of this
    chapter - 
        (i) if such contribution or payment is made by an employer to a
      plan (other than a multiemployer plan) by a mistake of fact,
      paragraph (1) shall not prohibit the return of such contribution
      to the employer within one year after the payment of the
      contribution, and
        (ii) if such contribution or payment is made by an employer to
      a multiemployer plan by a mistake of fact or law (other than a
      mistake relating to whether the plan is described in section
      401(a) of title 26 or the trust which is part of such plan is
      exempt from taxation under section 501(a) of title 26), paragraph
      (1) shall not prohibit the return of such contribution or payment
      to the employer within 6 months after the plan administrator
      determines that the contribution was made by such a mistake.

      (B) If a contribution is conditioned on initial qualification of
    the plan under section 401 or 403(a) of title 26, and if the plan
    receives an adverse determination with respect to its initial
    qualification, then paragraph (1) shall not prohibit the return of
    such contribution to the employer within one year after such
    determination, but only if the application for the determination is
    made by the time prescribed by law for filing the employer's return
    for the taxable year in which such plan was adopted, or such later
    date as the Secretary of the Treasury may prescribe.
      (C) If a contribution is conditioned upon the deductibility of
    the contribution under section 404 of title 26, then, to the extent
    the deduction is disallowed, paragraph (1) shall not prohibit the
    return to the employer of such contribution (to the extent
    disallowed) within one year after the disallowance of the
    deduction.
      (3) In the case of a withdrawal liability payment which has been
    determined to be an overpayment, paragraph (1) shall not prohibit
    the return of such payment to the employer within 6 months after
    the date of such determination.
    (d) Termination of plan
      (1) Upon termination of a pension plan to which section 1321 of
    this title does not apply at the time of termination and to which
    this part applies (other than a plan to which no employer
    contributions have been made) the assets of the plan shall be
    allocated in accordance with the provisions of section 1344 of this
    title, except as otherwise provided in regulations of the
    Secretary.
      (2) The assets of a welfare plan which terminates shall be
    distributed in accordance with the terms of the plan, except as
    otherwise provided in regulations of the Secretary.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 403, Sept. 2, 1974, 88 Stat. 876;
    Pub. L. 96-364, title III, Sec. 310, title IV, Secs. 402(b)(2),
    410(a), 411(c), Sept. 26, 1980, 94 Stat. 1296, 1299, 1308; Pub. L.
    100-203, title IX, Sec. 9343(c), Dec. 22, 1987, 101 Stat. 1330-372;
    Pub. L. 101-239, title VII, Secs. 7881(k), 7891(a)(1),
    7894(e)(1)(A), (3), Dec. 19, 1989, 103 Stat. 2443, 2445, 2450; Pub.
    L. 101-508, title XII, Sec. 12012(a), Nov. 5, 1990, 104 Stat. 1388-
    571; Pub. L. 103-465, title VII, Sec. 731(c)(4)(B), Dec. 8, 1994,
    108 Stat. 5004; Pub. L. 106-170, title V, Sec. 535(a)(2)(B), Dec.
    17, 1999, 113 Stat. 1934; Pub. L. 108-218, title II, Sec.
    204(b)(2), Apr. 10, 2004, 118 Stat. 609; Pub. L. 108-357, title
    VII, Sec. 709(a)(2), Oct. 22, 2004, 118 Stat. 1551; Pub. L. 109-
    280, title I, Sec. 107(a)(11), Aug. 17, 2006, 120 Stat. 819.)


-STATAMEND-
                      AMENDMENT OF SUBSECTION (C)(1)                  
      Pub. L. 109-280, title I, Sec. 107(a)(11), (e), Aug. 17, 2006,
    120 Stat. 819, 820, provided that, applicable to plan years
    beginning after 2007, subsection (c)(1) of this section is amended
    by substituting "August 17, 2006" for "October 22, 2004".

-REFTEXT-
                            REFERENCES IN TEXT                        
      This chapter, referred to in subsecs. (a)(1) and (b)(4), (6), was
    in the original "this Act", meaning Pub. L. 93-406, known as the
    Employee Retirement Income Security Act of 1974. Titles I, III, and
    IV of such Act are classified principally to this chapter. For
    complete classification of this Act to the Code, see Short Title
    note set out under section 1001 of this title and Tables.


-MISC1-
                                AMENDMENTS                            
      2004 - Subsec. (c)(1). Pub. L. 108-357 substituted "October 22,
    2004" for "April 10, 2004".
      Pub. L. 108-218 substituted "April 10, 2004" for "December 17,
    1999".
      1999 - Subsec. (c)(1). Pub. L. 106-170 substituted "December 17,
    1999" for "January 1, 1995".
      1994 - Subsec. (c)(1). Pub. L. 103-465 substituted "1995" for
    "1991".
      1990 - Subsec. (c)(1). Pub. L. 101-508 inserted ", or under
    section 420 of title 26 (as in effect on January 1, 1991)" after
    "insured plans".
      1989 - Subsecs. (b)(3), (5), (c)(2)(A)(ii), (C). Pub. L. 101-239,
    Sec. 7891(a)(1), substituted "Internal Revenue Code of 1986" for
    "Internal Revenue Code of 1954", which for purposes of codification
    was translated as "title 26" thus requiring no change in text.
      Subsec. (b)(3). Pub. L. 101-239, Sec. 7894(e)(3), redesignated
    cls. (i) and (ii) as subpars. (A) and (B), respectively, struck out
    ", to the extent that such plan's assets are held in one or more
    custodial accounts which qualify under section 401(f) or 408(h) of
    title 26, whichever is applicable" before the semicolon in subpar.
    (B), and inserted concluding provision "to the extent that such
    plan's assets are held in one or more custodial accounts which
    qualify under section 401(f) or 408(h) of title 26, whichever is
    applicable."
      Subsec. (c)(2)(A). Pub. L. 101-239, Sec. 7894(e)(1)(A), in
    introductory provisions, made technical amendment to reference to
    part 1 of subtitle E of subchapter III of this chapter to correct
    reference to corresponding part of original Act, requiring no
    change in text, and in cls. (i) and (ii), inserted "if such
    contribution or payment is" before "made by an employer".
      Subsec. (c)(3), (4). Pub. L. 101-239, Sec. 7881(k), redesignated
    par. (4) as (3) and struck out former par. (3) which read as
    follows: "In the case of a contribution which would otherwise be an
    excess contribution (as defined in section 4979(c) of title 26)
    paragraph (1) shall not prohibit a correcting distribution with
    respect to such contribution from the plan to the employer to the
    extent permitted in such section to avoid payment of an excise tax
    on excess contributions under such section."
      1987 - Subsec. (c)(2)(B). Pub. L. 100-203, Sec. 9343(c)(1),
    amended subpar. (B) generally. Prior to amendment, subpar. (B) read
    as follows: "If a contribution is conditioned on qualification of
    the plan under section 401, 403(a), or 405(a) of title 26, and if
    the plan does not qualify, then paragraph (1) shall not prohibit
    the return of such contributions to the employer within one year
    after the date of denial of qualification of the plan."
      Subsec. (c)(3). Pub. L. 100-203, Sec. 9343(c)(2), substituted
    "section 4979(c) of title 26" for "section 4972(b) of title 26".
      1980 - Subsec. (a)(1). Pub. L. 96-364, Sec. 402(b)(2),
    substituted "chapter" for "subchapter".
      Subsec. (b)(6). Pub. L. 96-364, Sec. 411(c), added par. (6).
      Subsec. (c)(1). Pub. L. 96-364, Sec. 310(1), inserted reference
    to par. (4).
      Subsec. (c)(2)(A). Pub. L. 96-364, Sec. 410(a), substituted
    provisions relating to contributions or payments of withdrawal
    liability under part 1 of subtitle E of subchapter III of this
    chapter made by an employer to a plan by a mistake of fact, and by
    an employer to a multiemployer plan by a mistake of fact or law,
    for provisions relating to contributions made by an employer by a
    mistake of fact.
      Subsec. (c)(4). Pub. L. 96-364, Sec. 310(2), added par. (4).

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Amendment by Pub. L. 109-280 applicable to plan years beginning
    after 2007, see section 107(e) of Pub. L. 109-280, set out as a
    note under section 1021 of this title.

                     EFFECTIVE DATE OF 1999 AMENDMENT                 
      Amendment by Pub. L. 106-170 applicable to qualified transfers
    occurring after Dec. 17, 1999, see section 535(c)(1) of Pub. L. 106-
    170, set out as a note under section 420 of Title 26, Internal
    Revenue Code.

                     EFFECTIVE DATE OF 1990 AMENDMENT                 
      Amendment by Pub. L. 101-508 applicable to qualified transfers
    under section 420 of title 26 made after Nov. 5, 1990, see section
    12012(e) of Pub. L. 101-508, set out as a note under section 1021
    of this title.

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by section 7881(k) of Pub. L. 101-239 effective, except
    as otherwise provided, as if included in the provision of the
    Pension Protection Act, Pub. L. 100-203, Secs. 9302-9346, to which
    such amendment relates, see section 7882 of Pub. L. 101-239, set
    out as a note under section 401 of Title 26, Internal Revenue Code.
      Amendment by section 7891(a)(1) of Pub. L. 101-239 effective,
    except as otherwise provided, as if included in the provision of
    the Tax Reform Act of 1986, Pub. L. 99-514, to which such amendment
    relates, see section 7891(f) of Pub. L. 101-239, set out as a note
    under section 1002 of this title.
      Section 7894(e)(1)(B) of Pub. L. 101-239 provided that: "The
    amendments made by subparagraph (A) [amending this section] shall
    take effect as if included in section 410 of the Multiemployer
    Pension Plan Amendments Act of 1980 [Pub. L. 96-364]."
      Amendment by section 7894(e)(3) of Pub. L. 101-239 effective,
    except as otherwise provided, as if originally included in the
    provision of the Employee Retirement Income Security Act of 1974,
    Pub. L. 93-406, to which such amendment relates, see section
    7894(i) of Pub. L. 101-239, set out as a note under section 1002 of
    this title.

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-364 effective Sept. 26, 1980, except as
    specifically provided, see section 1461(e) of this title.
      Amendment by section 410(a) of Pub. L. 96-364 effective Jan. 1,
    1975, except with respect to contributions received by a
    collectively bargained plan maintained by more than one employer
    before Sept. 26, 1980, see section 410(c) of Pub. L. 96-364, set
    out as a note under section 401 of Title 26, Internal Revenue Code.

                                REGULATIONS                            
      Secretary authorized, effective Sept. 2, 1974, to promulgate
    regulations wherever provisions of this part call for the
    promulgation of regulations, see sections 1031 and 1114 of this
    title.

    APPLICABILITY OF AMENDMENTS BY SUBTITLES A AND B OF TITLE I OF PUB.
                                L. 109-280
      For special rules on applicability of amendments by subtitles A
    (Secs. 101-107) and B (Secs. 111-116) of title I of Pub. L. 109-280
    to certain eligible cooperative plans, PBGC settlement plans, and
    eligible government contractor plans, see sections 104, 105, and
    106 of Pub. L. 109-280, set out as notes under section 401 of Title
    26, Internal Revenue Code.

-End-



-CITE-
    29 USC Sec. 1104                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 4 - fiduciary responsibility

-HEAD-
    Sec. 1104. Fiduciary duties

-STATUTE-
    (a) Prudent man standard of care
      (1) Subject to sections 1103(c) and (d), 1342, and 1344 of this
    title, a fiduciary shall discharge his duties with respect to a
    plan solely in the interest of the participants and beneficiaries
    and - 
        (A) for the exclusive purpose of:
          (i) providing benefits to participants and their
        beneficiaries; and
          (ii) defraying reasonable expenses of administering the plan;

        (B) with the care, skill, prudence, and diligence under the
      circumstances then prevailing that a prudent man acting in a like
      capacity and familiar with such matters would use in the conduct
      of an enterprise of a like character and with like aims;
        (C) by diversifying the investments of the plan so as to
      minimize the risk of large losses, unless under the circumstances
      it is clearly prudent not to do so; and
        (D) in accordance with the documents and instruments governing
      the plan insofar as such documents and instruments are consistent
      with the provisions of this subchapter and subchapter III of this
      chapter.

      (2) In the case of an eligible individual account plan (as
    defined in section 1107(d)(3) of this title), the diversification
    requirement of paragraph (1)(C) and the prudence requirement (only
    to the extent that it requires diversification) of paragraph (1)(B)
    is not violated by acquisition or holding of qualifying employer
    real property or qualifying employer securities (as defined in
    section 1107(d)(4) and (5) of this title).
    (b) Indicia of ownership of assets outside jurisdiction of district
      courts
      Except as authorized by the Secretary by regulations, no
    fiduciary may maintain the indicia of ownership of any assets of a
    plan outside the jurisdiction of the district courts of the United
    States.
    (c) Control over assets by participant or beneficiary
      (1) In the case of a pension plan which provides for individual
    accounts and permits a participant or beneficiary to exercise
    control over the assets in his account, if a participant or
    beneficiary exercises control over the assets in his account (as
    determined under regulations of the Secretary) - 
        (A) such participant or beneficiary shall not be deemed to be a
      fiduciary by reason of such exercise, and
        (B) no person who is otherwise a fiduciary shall be liable
      under this part for any loss, or by reason of any breach, which
      results from such participant's or beneficiary's exercise of
      control.

      (2) In the case of a simple retirement account established
    pursuant to a qualified salary reduction arrangement under section
    408(p) of title 26, a participant or beneficiary shall, for
    purposes of paragraph (1), be treated as exercising control over
    the assets in the account upon the earliest of - 
        (A) an affirmative election among investment options with
      respect to the initial investment of any contribution,
        (B) a rollover to any other simple retirement account or
      individual retirement plan, or
        (C) one year after the simple retirement account is
      established.

    No reports, other than those required under section 1021(g) of this
    title, shall be required with respect to a simple retirement
    account established pursuant to such a qualified salary reduction
    arrangement.
      (3) In the case of a pension plan which makes a transfer to an
    individual retirement account or annuity of a designated trustee or
    issuer under section 401(a)(31)(B) of title 26, the participant or
    beneficiary shall, for purposes of paragraph (1), be treated as
    exercising control over the assets in the account or annuity upon -
    
        (A) the earlier of - 
          (i) a rollover of all or a portion of the amount to another
        individual retirement account or annuity; or
          (ii) one year after the transfer is made; or

        (B) a transfer that is made in a manner consistent with
      guidance provided by the Secretary.
    (d) Plan terminations
      (1) If, in connection with the termination of a pension plan
    which is a single-employer plan, there is an election to establish
    or maintain a qualified replacement plan, or to increase benefits,
    as provided under section 4980(d) of title 26, a fiduciary shall
    discharge the fiduciary's duties under this subchapter and
    subchapter III of this chapter in accordance with the following
    requirements:
        (A) In the case of a fiduciary of the terminated plan, any
      requirement - 
          (i) under section 4980(d)(2)(B) of title 26 with respect to
        the transfer of assets from the terminated plan to a qualified
        replacement plan, and
          (ii) under section 4980(d)(2)(B)(ii) or 4980(d)(3) of title
        26 with respect to any increase in benefits under the
        terminated plan.

        (B) In the case of a fiduciary of a qualified replacement plan,
      any requirement - 
          (i) under section 4980(d)(2)(A) of title 26 with respect to
        participation in the qualified replacement plan of active
        participants in the terminated plan,
          (ii) under section 4980(d)(2)(B) of title 26 with respect to
        the receipt of assets from the terminated plan, and
          (iii) under section 4980(d)(2)(C) of title 26 with respect to
        the allocation of assets to participants of the qualified
        replacement plan.

      (2) For purposes of this subsection - 
        (A) any term used in this subsection which is also used in
      section 4980(d) of title 26 shall have the same meaning as when
      used in such section, and
        (B) any reference in this subsection to title 26 shall be a
      reference to title 26 as in effect immediately after the
      enactment of the Omnibus Budget Reconciliation Act of 1990.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 404, Sept. 2, 1974, 88 Stat. 877;
    Pub. L. 96-364, title III, Sec. 309, Sept. 26, 1980, 94 Stat. 1296;
    Pub. L. 101-508, title XII, Sec. 12002(b)(1), (2)(A), Nov. 5, 1990,
    104 Stat. 1388-565, 1388-566; Pub. L. 104-188, title I, Sec.
    1421(d)(2), Aug. 20, 1996, 110 Stat. 1799; Pub. L. 107-16, title
    VI, Sec. 657(c)(1), June 7, 2001, 115 Stat. 136; Pub. L. 107-147,
    title IV, Sec. 411(t), Mar. 9, 2002, 116 Stat. 51; Pub. L. 109-280,
    title VI, Secs. 621(a), 624(a), Aug. 17, 2006, 120 Stat. 978, 980.)


-STATAMEND-
                        AMENDMENT OF SUBSECTION (C)                    
      Pub. L. 109-280, title VI, Sec. 621, Aug. 17, 2006, 120 Stat.
    978, provided that, applicable to plan years beginning after Dec.
    31, 2007, with special rule for collectively bargained agreements,
    subsection (c) of this section is amended as follows:
      (1) in paragraph (1), by designating existing provisions as
    subparagraph (A), by redesignating former subparagraphs (A) and (B)
    as clauses (i) and (ii), respectively, in clause (ii), by inserting
    ", except that this clause shall not apply in connection with such
    participant or beneficiary for any blackout period during which the
    ability of such participant or beneficiary to direct the investment
    of the assets in his or her account is suspended by a plan sponsor
    or fiduciary" before the period at the end, and by adding
    subparagraphs (B) and (C) to read as follows:
      "(B) If a person referred to in subparagraph (A)(ii) meets the
    requirements of this subchapter in connection with authorizing and
    implementing the blackout period, any person who is otherwise a
    fiduciary shall not be liable under this subchapter for any loss
    occurring during such period.
      "(C) For purposes of this paragraph, the term 'blackout period'
    has the meaning given such term by section 1021(i)(7) of this
    title."; and
      (2) by adding paragraph (4) at the end to read as follows:
      (4)(A) In any case in which a qualified change in investment
    options occurs in connection with an individual account plan, a
    participant or beneficiary shall not be treated for purposes of
    paragraph (1) as not exercising control over the assets in his
    account in connection with such change if the requirements of
    subparagraph (C) are met in connection with such change.
      (B) For purposes of subparagraph (A), the term "qualified change
    in investment options" means, in connection with an individual
    account plan, a change in the investment options offered to the
    participant or beneficiary under the terms of the plan, under which
    - 
        (i) the account of the participant or beneficiary is
      reallocated among one or more remaining or new investment options
      which are offered in lieu of one or more investment options
      offered immediately prior to the effective date of the change,
      and
        (ii) the stated characteristics of the remaining or new
      investment options provided under clause (i), including
      characteristics relating to risk and rate of return, are, as of
      immediately after the change, reasonably similar to those of the
      existing investment options as of immediately before the change.

      (C) The requirements of this subparagraph are met in connection
    with a qualified change in investment options if - 
        (i) at least 30 days and no more than 60 days prior to the
      effective date of the change, the plan administrator furnishes
      written notice of the change to the participants and
      beneficiaries, including information comparing the existing and
      new investment options and an explanation that, in the absence of
      affirmative investment instructions from the participant or
      beneficiary to the contrary, the account of the participant or
      beneficiary will be invested in the manner described in
      subparagraph (B),
        (ii) the participant or beneficiary has not provided to the
      plan administrator, in advance of the effective date of the
      change, affirmative investment instructions contrary to the
      change, and
        (iii) the investments under the plan of the participant or
      beneficiary as in effect immediately prior to the effective date
      of the change were the product of the exercise by such
      participant or beneficiary of control over the assets of the
      account within the meaning of paragraph (1).
      Pub. L. 109-280, title VI, Sec. 624(a), (b)(1), Aug. 17, 2006,
    120 Stat. 980, provided that, applicable to plan years beginning
    after Dec. 31, 2006, subsection (c) of this section is amended by
    adding paragraph (5) at the end to read as follows:
      (5) Default investment arrangements. - 
        (A) In general. - For purposes of paragraph (1), a participant
      in an individual account plan meeting the notice requirements of
      subparagraph (B) shall be treated as exercising control over the
      assets in the account with respect to the amount of contributions
      and earnings which, in the absence of an investment election by
      the participant, are invested by the plan in accordance with
      regulations prescribed by the Secretary. The regulations under
      this subparagraph shall provide guidance on the appropriateness
      of designating default investments that include a mix of asset
      classes consistent with capital preservation or long-term capital
      appreciation, or a blend of both.
        (B) Notice requirements. - 
          (i) In general. - The requirements of this subparagraph are
        met if each participant - 
            (I) receives, within a reasonable period of time before
          each plan year, a notice explaining the employee's right
          under the plan to designate how contributions and earnings
          will be invested and explaining how, in the absence of any
          investment election by the participant, such contributions
          and earnings will be invested, and
            (II) has a reasonable period of time after receipt of such
          notice and before the beginning of the plan year to make such
          designation.

          (ii) Form of notice. - The requirements of clauses (i) and
        (ii) of section 401(k)(12)(D) of title 26 shall apply with
        respect to the notices described in this subparagraph.

-REFTEXT-
                            REFERENCES IN TEXT                        
      The enactment of the Omnibus Budget Reconciliation Act of 1990,
    referred to in subsec. (d)(2)(B), is the enactment of Pub. L. 101-
    508, which was approved Nov. 5, 1990.


-MISC1-
                                AMENDMENTS                            
      2002 - Subsec. (c)(3)(A). Pub. L. 107-147, Sec. 411(t)(1), struck
    out "the earlier of" after "the earlier of" in introductory
    provisions.
      Subsec. (c)(3)(B). Pub. L. 107-147, Sec. 411(t)(2), substituted
    "a transfer that" for "if the transfer".
      2001 - Subsec. (c)(3). Pub. L. 107-16 added par. (3).
      1996 - Subsec. (c). Pub. L. 104-188 designated existing
    provisions as par. (1), redesignated former pars. (1) and (2) as
    subpars. (A) and (B), respectively, and added par. (2).
      1990 - Subsec. (a)(1)(D). Pub. L. 101-508, Sec. 12002(b)(2)(A),
    substituted "and subchapter III" for "or subchapter III".
      Subsec. (d). Pub. L. 101-508, Sec. 12002(b)(1), added subsec.
    (d).
      1980 - Subsec. (a)(1)(D). Pub. L. 96-364 inserted reference to
    subchapter III of this chapter.

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Pub. L. 109-280, title VI, Sec. 621(b), Aug. 17, 2006, 120 Stat.
    979, provided that:
      "(1) In general. - The amendments made by this section [amending
    this section] shall apply to plan years beginning after December
    31, 2007.
      "(2) Special rule for collectively bargained agreements. - In the
    case of a plan maintained pursuant to 1 or more collective
    bargaining agreements between employee representatives and 1 or
    more employers ratified on or before the date of the enactment of
    this Act [Aug. 17, 2006], paragraph (1) shall be applied to
    benefits pursuant to, and individuals covered by, any such
    agreement by substituting for 'December 31, 2007' the earlier of - 
        "(A) the later of - 
          "(i) December 31, 2008, or
          "(ii) the date on which the last of such collective
        bargaining agreements terminates (determined without regard to
        any extension thereof after such date of enactment), or
        "(B) December 31, 2009."
      Pub. L. 109-280, title VI, Sec. 624(b), Aug. 17, 2006, 120 Stat.
    980, provided that:
      "(1) In general. - The amendments made by this section [amending
    this section] shall apply to plan years beginning after December
    31, 2006.
      "(2) Regulations. - Final regulations under section 404(c)(5)(A)
    of the Employee Retirement Income Security Act of 1974 [29 U.S.C.
    1104(c)(5)(A)] (as added by this section) shall be issued no later
    than 6 months after the date of the enactment of this Act [Aug. 17,
    2006]."

                     EFFECTIVE DATE OF 2002 AMENDMENT                 
      Amendment by Pub. L. 107-147 effective as if included in the
    provisions of the Economic Growth and Tax Relief Reconciliation Act
    of 2001, Pub. L. 107-16, to which such amendment relates, see
    section 411(x) of Pub. L. 107-147, set out as a note under section
    25B of Title 26, Internal Revenue Code.

                     EFFECTIVE DATE OF 2001 AMENDMENT                 
      Amendment by Pub. L. 107-16 applicable to distributions made
    after Mar. 28, 2005, see section 657(d) of Pub. L. 107-16, set out
    as a note under section 401 of Title 26, Internal Revenue Code.

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Amendment by Pub. L. 104-188 applicable to taxable years
    beginning after Dec. 31, 1996, see section 1421(e) of Pub. L. 104-
    188, set out as a note under section 72 of Title 26, Internal
    Revenue Code.

                     EFFECTIVE DATE OF 1990 AMENDMENT                 
      Amendment by Pub. L. 101-508 applicable to reversions occurring
    after Sept. 30, 1990, but not applicable to any reversion after
    Sept. 30, 1990, if (1) in the case of plans subject to subchapter
    III of this chapter, notice of intent to terminate under such
    subchapter was provided to participants (or if no participants, to
    Pension Benefit Guaranty Corporation) before Oct. 1, 1990, (2) in
    the case of plans subject to subchapter I of this chapter (and not
    subchapter III), notice of intent to reduce future accruals under
    section 1054(h) of this title was provided to participants in
    connection with termination before Oct. 1, 1990, (3) in the case of
    plans not subject to subchapter I or III of this chapter, a request
    for a determination letter with respect to termination was filed
    with Secretary of the Treasury or Secretary's delegate before Oct.
    1, 1990, or (4) in the case of plans not subject to subchapter I or
    III of this chapter and having only one participant, a resolution
    terminating the plan was adopted by employer before Oct. 1, 1990,
    see section 12003 of Pub. L. 101-508, set out as a note under
    section 4980 of Title 26, Internal Revenue Code.

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-364 effective Sept. 26, 1980, except as
    specifically provided, see section 1461(e) of this title.

                                REGULATIONS                            
      Pub. L. 109-280, title VI, Sec. 625, Aug. 17, 2006, 120 Stat.
    980, provided that:
      "(a) In General. - Not later than 1 year after the date of the
    enactment of this Act [Aug. 17, 2006], the Secretary of Labor shall
    issue final regulations clarifying that the selection of an annuity
    contract as an optional form of distribution from an individual
    account plan to a participant or beneficiary - 
        "(1) is not subject to the safest available annuity standard
      under Interpretive Bulletin 95-1 (29 CFR 2509.95-1), and
        "(2) is subject to all otherwise applicable fiduciary
      standards.
      "(b) Effective Date. - This section shall take effect on the date
    of enactment of this Act [Aug. 17, 2006]."
      Secretary authorized, effective Sept. 2, 1974, to promulgate
    regulations wherever provisions of this part call for the
    promulgation of regulations, see sections 1031 and 1114 of this
    title.

            PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1998        
      For provisions directing that if any amendments made by subtitle
    D [Secs. 1401-1465] of title I of Pub. L. 104-188 require an
    amendment to any plan or annuity contract, such amendment shall not
    be required to be made before the first day of the first plan year
    beginning on or after Jan. 1, 1998, see section 1465 of Pub. L. 104-
    188, set out as a note under section 401 of Title 26, Internal
    Revenue Code.

-End-



-CITE-
    29 USC Sec. 1105                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 4 - fiduciary responsibility

-HEAD-
    Sec. 1105. Liability for breach of co-fiduciary

-STATUTE-
    (a) Circumstances giving rise to liability
      In addition to any liability which he may have under any other
    provisions of this part, a fiduciary with respect to a plan shall
    be liable for a breach of fiduciary responsibility of another
    fiduciary with respect to the same plan in the following
    circumstances:
        (1) if he participates knowingly in, or knowingly undertakes to
      conceal, an act or omission of such other fiduciary, knowing such
      act or omission is a breach;
        (2) if, by his failure to comply with section 1104(a)(1) of
      this title in the administration of his specific responsibilities
      which give rise to his status as a fiduciary, he has enabled such
      other fiduciary to commit a breach; or
        (3) if he has knowledge of a breach by such other fiduciary,
      unless he makes reasonable efforts under the circumstances to
      remedy the breach.
    (b) Assets held by two or more trustees
      (1) Except as otherwise provided in subsection (d) of this
    section and in section 1103(a)(1) and (2) of this title, if the
    assets of a plan are held by two or more trustees - 
        (A) each shall use reasonable care to prevent a co-trustee from
      committing a breach; and
        (B) they shall jointly manage and control the assets of the
      plan, except that nothing in this subparagraph (B) shall preclude
      any agreement, authorized by the trust instrument, allocating
      specific responsibilities, obligations, or duties among trustees,
      in which event a trustee to whom certain responsibilities,
      obligations, or duties have not been allocated shall not be
      liable by reason of this subparagraph (B) either individually or
      as a trustee for any loss resulting to the plan arising from the
      acts or omissions on the part of another trustee to whom such
      responsibilities, obligations, or duties have been allocated.

      (2) Nothing in this subsection shall limit any liability that a
    fiduciary may have under subsection (a) of this section or any
    other provision of this part.
      (3)(A) In the case of a plan the assets of which are held in more
    than one trust, a trustee shall not be liable under paragraph (1)
    except with respect to an act or omission of a trustee of a trust
    of which he is a trustee.
      (B) No trustee shall be liable under this subsection for
    following instructions referred to in section 1103(a)(1) of this
    title.
    (c) Allocation of fiduciary responsibility; designated persons to
      carry out fiduciary responsibilities
      (1) The instrument under which a plan is maintained may expressly
    provide for procedures (A) for allocating fiduciary
    responsibilities (other than trustee responsibilities) among named
    fiduciaries, and (B) for named fiduciaries to designate persons
    other than named fiduciaries to carry out fiduciary
    responsibilities (other than trustee responsibilities) under the
    plan.
      (2) If a plan expressly provides for a procedure described in
    paragraph (1), and pursuant to such procedure any fiduciary
    responsibility of a named fiduciary is allocated to any person, or
    a person is designated to carry out any such responsibility, then
    such named fiduciary shall not be liable for an act or omission of
    such person in carrying out such responsibility except to the
    extent that - 
        (A) the named fiduciary violated section 1104(a)(1) of this
      title - 
          (i) with respect to such allocation or designation,
          (ii) with respect to the establishment or implementation of
        the procedure under paragraph (1), or
          (iii) in continuing the allocation or designation; or

        (B) the named fiduciary would otherwise be liable in accordance
      with subsection (a) of this section.

      (3) For purposes of this subsection, the term "trustee
    responsibility" means any responsibility provided in the plan's
    trust instrument (if any) to manage or control the assets of the
    plan, other than a power under the trust instrument of a named
    fiduciary to appoint an investment manager in accordance with
    section 1102(c)(3) of this title.
    (d) Investment managers
      (1) If an investment manager or managers have been appointed
    under section 1102(c)(3) of this title, then, notwithstanding
    subsections (a)(2) and (3) and subsection (b) of this section, no
    trustee shall be liable for the acts or omissions of such
    investment manager or managers, or be under an obligation to invest
    or otherwise manage any asset of the plan which is subject to the
    management of such investment manager.
      (2) Nothing in this subsection shall relieve any trustee of any
    liability under this part for any act of such trustee.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 405, Sept. 2, 1974, 88 Stat. 878.)

-End-



-CITE-
    29 USC Sec. 1106                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 4 - fiduciary responsibility

-HEAD-
    Sec. 1106. Prohibited transactions

-STATUTE-
    (a) Transactions between plan and party in interest
      Except as provided in section 1108 of this title:
        (1) A fiduciary with respect to a plan shall not cause the plan
      to engage in a transaction, if he knows or should know that such
      transaction constitutes a direct or indirect - 
          (A) sale or exchange, or leasing, of any property between the
        plan and a party in interest;
          (B) lending of money or other extension of credit between the
        plan and a party in interest;
          (C) furnishing of goods, services, or facilities between the
        plan and a party in interest;
          (D) transfer to, or use by or for the benefit of a party in
        interest, of any assets of the plan; or
          (E) acquisition, on behalf of the plan, of any employer
        security or employer real property in violation of section
        1107(a) of this title.

        (2) No fiduciary who has authority or discretion to control or
      manage the assets of a plan shall permit the plan to hold any
      employer security or employer real property if he knows or should
      know that holding such security or real property violates section
      1107(a) of this title.
    (b) Transactions between plan and fiduciary
      A fiduciary with respect to a plan shall not - 
        (1) deal with the assets of the plan in his own interest or for
      his own account,
        (2) in his individual or in any other capacity act in any
      transaction involving the plan on behalf of a party (or represent
      a party) whose interests are adverse to the interests of the plan
      or the interests of its participants or beneficiaries, or
        (3) receive any consideration for his own personal account from
      any party dealing with such plan in connection with a transaction
      involving the assets of the plan.
    (c) Transfer of real or personal property to plan by party in
      interest
      A transfer of real or personal property by a party in interest to
    a plan shall be treated as a sale or exchange if the property is
    subject to a mortgage or similar lien which the plan assumes or if
    it is subject to a mortgage or similar lien which a party-in-
    interest placed on the property within the 10-year period ending
    on the date of the transfer.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 406, Sept. 2, 1974, 88 Stat. 879.)

-End-



-CITE-
    29 USC Sec. 1107                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 4 - fiduciary responsibility

-HEAD-
    Sec. 1107. Limitation with respect to acquisition and holding of
      employer securities and employer real property by certain plans

-STATUTE-
    (a) Percentage limitation
      Except as otherwise provided in this section and section 1114 of
    this title:
        (1) A plan may not acquire or hold - 
          (A) any employer security which is not a qualifying employer
        security, or
          (B) any employer real property which is not qualifying
        employer real property.

        (2) A plan may not acquire any qualifying employer security or
      qualifying employer real property, if immediately after such
      acquisition the aggregate fair market value of employer
      securities and employer real property held by the plan exceeds 10
      percent of the fair market value of the assets of the plan.
        (3)(A) After December 31, 1984, a plan may not hold any
      qualifying employer securities or qualifying employer real
      property (or both) to the extent that the aggregate fair market
      value of such securities and property determined on December 31,
      1984, exceeds 10 percent of the greater of - 
          (i) the fair market value of the assets of the plan,
        determined on December 31, 1984, or
          (ii) the fair market value of the assets of the plan
        determined on January 1, 1975.

        (B) Subparagraph (A) of this paragraph shall not apply to any
      plan which on any date after December 31, 1974; and before
      January 1, 1985, did not hold employer securities or employer
      real property (or both) the aggregate fair market value of which
      determined on such date exceeded 10 percent of the greater of
          (i) the fair market value of the assets of the plan,
        determined on such date, or
          (ii) the fair market value of the assets of the plan
        determined on January 1, 1975.

        (4)(A) After December 31, 1979, a plan may not hold any
      employer securities or employer real property in excess of the
      amount specified in regulations under subparagraph (B). This
      subparagraph shall not apply to a plan after the earliest date
      after December 31, 1974, on which it complies with such
      regulations.
        (B) Not later than December 31, 1976, the Secretary shall
      prescribe regulations which shall have the effect of requiring
      that a plan divest itself of 50 percent of the holdings of
      employer securities and employer real property which the plan
      would be required to divest before January 1, 1985, under
      paragraph (2) or subsection (c) of this section (whichever is
      applicable).
    (b) Exception
      (1) Subsection (a) of this section shall not apply to any
    acquisition or holding of qualifying employer securities or
    qualifying employer real property by an eligible individual account
    plan.
      (2)(A) If this paragraph applies to an eligible individual
    account plan, the portion of such plan which consists of applicable
    elective deferrals (and earnings allocable thereto) shall be
    treated as a separate plan - 
        (i) which is not an eligible individual account plan, and
        (ii) to which the requirements of this section apply.

      (B)(i) This paragraph shall apply to any eligible individual
    account plan if any portion of the plan's applicable elective
    deferrals (or earnings allocable thereto) are required to be
    invested in qualifying employer securities or qualifying employer
    real property or both - 
        (I) pursuant to the terms of the plan, or
        (II) at the direction of a person other than the participant on
      whose behalf such elective deferrals are made to the plan (or a
      beneficiary).

      (ii) This paragraph shall not apply to an individual account plan
    for a plan year if, on the last day of the preceding plan year, the
    fair market value of the assets of all individual account plans
    maintained by the employer equals not more than 10 percent of the
    fair market value of the assets of all pension plans (other than
    multiemployer plans) maintained by the employer.
      (iii) This paragraph shall not apply to an individual account
    plan that is an employee stock ownership plan as defined in section
    4975(e)(7) of title 26.
      (iv) This paragraph shall not apply to an individual account plan
    if, pursuant to the terms of the plan, the portion of any
    employee's applicable elective deferrals which is required to be
    invested in qualifying employer securities and qualifying employer
    real property for any year may not exceed 1 percent of the
    employee's compensation which is taken into account under the plan
    in determining the maximum amount of the employee's applicable
    elective deferrals for such year.
      (C) For purposes of this paragraph, the term "applicable elective
    deferral" means any elective deferral (as defined in section
    402(g)(3)(A) of title 26) which is made pursuant to a qualified
    cash or deferred arrangement as defined in section 401(k) of title
    26.
      (3) Cross References. - 
          (A) For exemption from diversification requirements for
        holding of qualifying employer securities and qualifying
        employer real property by eligible individual account plans,
        see section 1104(a)(2) of this title.
          (B) For exemption from prohibited transactions for certain
        acquisitions of qualifying employer securities and qualifying
        employer real property which are not in violation of 10 percent
        limitation, see section 1108(e) of this title.
          (C) For transitional rules respecting securities or real
        property subject to binding contracts in effect on June 30,
        1974, see section 1114(c) of this title.
          (D) For diversification requirements for qualifying employer
        securities held in certain individual account plans, see
        section 1054(j) of this title.
    (c) Election
      (1) A plan which makes the election, under paragraph (3) shall be
    treated as satisfying the requirement of subsection (a)(3) of this
    section if and only if employer securities held on any date after
    December 31, 1974 and before January 1, 1985 have a fair market
    value, determined as of December 31, 1974, not in excess of 10
    percent of the lesser of - 
        (A) the fair market value of the assets of the plan determined
      on such date (disregarding any portion of the fair market value
      of employer securities which is attributable to appreciation of
      such securities after December 31, 1974) but not less than the
      fair market value of plan assets on January 1, 1975, or
        (B) an amount equal to the sum of (i) the total amount of the
      contributions to the plan received after December 31, 1974, and
      prior to such date, plus (ii) the fair market value of the assets
      of the plan, determined on January 1, 1975.

      (2) For purposes of this subsection, in the case of an employer
    security held by a plan after January 1, 1975, the ownership of
    which is derived from ownership of employer securities held by the
    plan on January 1, 1975, or from the exercise of rights derived
    from such ownership, the value of such security held after January
    1, 1975, shall be based on the value as of January 1, 1975, of the
    security from which ownership was derived. The Secretary shall
    prescribe regulations to carry out this paragraph.
      (3) An election under this paragraph may not be made after
    December 31, 1975. Such an election shall be made in accordance
    with regulations prescribed by the Secretary, and shall be
    irrevocable. A plan may make an election under this paragraph only
    if on January 1, 1975, the plan holds no employer real property.
    After such election and before January 1, 1985 the plan may not
    acquire any employer real property.
    (d) Definitions
      For purposes of this section - 
        (1) The term "employer security" means a security issued by an
      employer of employees covered by the plan, or by an affiliate of
      such employer. A contract to which section 1108(b)(5) of this
      title applies shall not be treated as a security for purposes of
      this section.
        (2) The term "employer real property" means real property (and
      related personal property) which is leased to an employer of
      employees covered by the plan, or to an affiliate of such
      employer. For purposes of determining the time at which a plan
      acquires employer real property for purposes of this section,
      such property shall be deemed to be acquired by the plan on the
      date on which the plan acquires the property or on the date on
      which the lease to the employer (or affiliate) is entered into,
      whichever is later.
        (3)(A) The term "eligible individual account plan" means an
      individual account plan which is (i) a profit-sharing, stock
      bonus, thrift, or savings plan; (ii) an employee stock ownership
      plan; or (iii) a money purchase plan which was in existence on
      September 2, 1974, and which on such date invested primarily in
      qualifying employer securities. Such term excludes an individual
      retirement account or annuity described in section 408 of title
      26.
        (B) Notwithstanding subparagraph (A), a plan shall be treated
      as an eligible individual account plan with respect to the
      acquisition or holding of qualifying employer real property or
      qualifying employer securities only if such plan explicitly
      provides for acquisition and holding of qualifying employer
      securities or qualifying employer real property (as the case may
      be). In the case of a plan in existence on September 2, 1974,
      this subparagraph shall not take effect until January 1, 1976.
        (C) The term "eligible individual account plan" does not
      include any individual account plan the benefits of which are
      taken into account in determining the benefits payable to a
      participant under any defined benefit plan.
        (4) The term "qualifying employer real property" means parcels
      of employer real property - 
          (A) if a substantial number of the parcels are dispersed
        geographically;
          (B) if each parcel of real property and the improvements
        thereon are suitable (or adaptable without excessive cost) for
        more than one use;
          (C) even if all of such real property is leased to one lessee
        (which may be an employer, or an affiliate of an employer); and
          (D) if the acquisition and retention of such property comply
        with the provisions of this part (other than section
        1104(a)(1)(B) of this title to the extent it requires
        diversification, and sections 1104(a)(1)(C), 1106 of this
        title, and subsection (a) of this section).

        (5) The term "qualifying employer security" means an employer
      security which is - 
          (A) stock,
          (B) a marketable obligation (as defined in subsection (e) of
        this section), or
          (C) an interest in a publicly traded partnership (as defined
        in section 7704(b) of title 26), but only if such partnership
        is an existing partnership as defined in section 10211(c)(2)(A)
        of the Revenue Act of 1987 (Public Law 100-203).

      After December 17, 1987, in the case of a plan other than an
      eligible individual account plan, an employer security described
      in subparagraph (A) or (C) shall be considered a qualifying
      employer security only if such employer security satisfies the
      requirements of subsection (f)(1) of this section.
        (6) The term "employee stock ownership plan" means an
      individual account plan - 
          (A) which is a stock bonus plan which is qualified, or a
        stock bonus plan and money purchase plan both of which are
        qualified, under section 401 of title 26, and which is designed
        to invest primarily in qualifying employer securities, and
          (B) which meets such other requirements as the Secretary of
        the Treasury may prescribe by regulation.

        (7) A corporation is an affiliate of an employer if it is a
      member of any controlled group of corporations (as defined in
      section 1563(a) of title 26, except that "applicable percentage"
      shall be substituted for "80 percent" wherever the latter
      percentage appears in such section) of which the employer who
      maintains the plan is a member. For purposes of the preceding
      sentence, the term "applicable percentage" means 50 percent, or
      such lower percentage as the Secretary may prescribe by
      regulation. A person other than a corporation shall be treated as
      an affiliate of an employer to the extent provided in regulations
      of the Secretary. An employer which is a person other than a
      corporation shall be treated as affiliated with another person to
      the extent provided by regulations of the Secretary. Regulations
      under this paragraph shall be prescribed only after consultation
      and coordination with the Secretary of the Treasury.
        (8) The Secretary may prescribe regulations specifying the
      extent to which conversions, splits, the exercise of rights, and
      similar transactions are not treated as acquisitions.
        (9) For purposes of this section, an arrangement which consists
      of a defined benefit plan and an individual account plan shall be
      treated as 1 plan if the benefits of such individual account plan
      are taken into account in determining the benefits payable under
      such defined benefit plan.
    (e) Marketable obligations
      For purposes of subsection (d)(5) of this section, the term
    "marketable obligation" means a bond, debenture, note, or
    certificate, or other evidence of indebtedness (hereinafter in this
    subsection referred to as "obligation") if - 
        (1) such obligation is acquired - 
          (A) on the market, either (i) at the price of the obligation
        prevailing on a national securities exchange which is
        registered with the Securities and Exchange Commission, or (ii)
        if the obligation is not traded on such a national securities
        exchange, at a price not less favorable to the plan than the
        offering price for the obligation as established by current bid
        and asked prices quoted by persons independent of the issuer;
          (B) from an underwriter, at a price (i) not in excess of the
        public offering price for the obligation as set forth in a
        prospectus or offering circular filed with the Securities and
        Exchange Commission, and (ii) at which a substantial portion of
        the same issue is acquired by persons independent of the
        issuer; or
          (C) directly from the issuer, at a price not less favorable
        to the plan than the price paid currently for a substantial
        portion of the same issue by persons independent of the issuer;

        (2) immediately following acquisition of such obligation - 
          (A) not more than 25 percent of the aggregate amount of
        obligations issued in such issue and outstanding at the time of
        acquisition is held by the plan, and
          (B) at least 50 percent of the aggregate amount referred to
        in subparagraph (A) is held by persons independent of the
        issuer; and

        (3) immediately following acquisition of the obligation, not
      more than 25 percent of the assets of the plan is invested in
      obligations of the employer or an affiliate of the employer.
    (f) Maximum percentage of stock held by plan; time of holding or
      acquisition; necessity of legally binding contract
      (1) Stock satisfies the requirements of this paragraph if,
    immediately following the acquisition of such stock - 
        (A) no more than 25 percent of the aggregate amount of stock of
      the same class issued and outstanding at the time of acquisition
      is held by the plan, and
        (B) at least 50 percent of the aggregate amount referred to in
      subparagraph (A) is held by persons independent of the issuer.

      (2) Until January 1, 1993, a plan shall not be treated as
    violating subsection (a) of this section solely by holding stock
    which fails to satisfy the requirements of paragraph (1) if such
    stock - 
        (A) has been so held since December 17, 1987, or
        (B) was acquired after December 17, 1987, pursuant to a legally
      binding contract in effect on December 17, 1987, and has been so
      held at all times after the acquisition.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 407, Sept. 2, 1974, 88 Stat. 880;
    Pub. L. 100-203, title IX, Sec. 9345(a)(1), (2), (b), Dec. 22,
    1987, 101 Stat. 1330-373; Pub. L. 101-239, title VII, Secs.
    7881(l)(1)-(4), 7891(a)(1), 7894(e)(2), Dec. 19, 1989, 103 Stat.
    2443, 2445, 2450; Pub. L. 101-540, Sec. 1, Nov. 8, 1990, 104 Stat.
    2379; Pub. L. 105-34, title XV, Sec. 1524(a), Aug. 5, 1997, 111
    Stat. 1071; Pub. L. 109-280, title IX, Sec. 901(b)(2), Aug. 17,
    2006, 120 Stat. 1032.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 10211(c)(2)(A) of the Revenue Act of 1987 (Public Law 100-
    203), referred to in subsec. (d)(5)(C), is set out as a note under
    section 7704 of Title 26, Internal Revenue Code.


-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (b)(3)(D). Pub. L. 109-280 added subpar. (D).
      1997 - Subsec. (b)(2), (3). Pub. L. 105-34 added par. (2) and
    redesignated former par. (2) as (3).
      1990 - Subsec. (d)(5). Pub. L. 101-540 amended par. (5)
    generally. Prior to amendment, par. (5) read as follows: "The term
    'qualifying employer security' means an employer security which is
    stock or a marketable obligation (as defined in subsection (e) of
    this section). After December 17, 1987, in the case of a plan other
    than an eligible individual account plan, stock shall be considered
    a qualifying employer security only if such stock satisfies the
    requirements of subsection (f)(1) of this section."
      1989 - Subsec. (d)(3)(A), (6)(A), (7). Pub. L. 101-239, Sec.
    7891(a)(1), substituted "Internal Revenue Code of 1986" for
    "Internal Revenue Code of 1954", which for purposes of codification
    was translated as "title 26" thus requiring no change in text.
      Subsec. (d)(3)(C). Pub. L. 101-239, Sec. 7881(l)(1), realigned
    margin.
      Subsec. (d)(6)(A). Pub. L. 101-239, Sec. 7894(e)(2), substituted
    "money purchase plan" for "money purchase" and "employer
    securities" for "employee securities".
      Subsec. (d)(9). Pub. L. 101-239, Sec. 7881(l)(2), substituted
    "such individual account plan" for "such arrangement" and realigned
    margin.
      Subsec. (f)(1). Pub. L. 101-239, Sec. 7881(l)(3)(A), (4),
    substituted "paragraph" for "subsection" and "if, immediately
    following the acquisition of such stock" for "if".
      Subsec. (f)(3). Pub. L. 101-239, Sec. 7881(l)(3)(B), struck out
    par. (3) which read as follows: "After December 17, 1987, no plan
    may acquire stock which does not satisfy the requirements of
    paragraph (1) unless the acquisition is made pursuant to a legally
    binding contract in effect on such date."
      1987 - Subsec. (d)(3)(C). Pub. L. 100-203, Sec. 9345(a)(1), added
    subpar. (C).
      Subsec. (d)(5). Pub. L. 100-203, Sec. 9345(b)(1), inserted at end
    "After December 17, 1987, in the case of a plan other than an
    eligible individual account plan, stock shall be considered a
    qualifying employer security only if such stock satisfies the
    requirements of subsection (f)(1) of this section."
      Subsec. (d)(9). Pub. L. 100-203, Sec. 9345(a)(2), added par. (9).
      Subsec. (f). Pub. L. 100-203, Sec. 9345(b)(2), added subsec. (f).

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Amendment by Pub. L. 109-280 applicable to plan years beginning
    after Dec. 31, 2006, with special rules for collectively bargained
    agreements and certain employer securities held in an ESOP, see
    section 901(c) of Pub. L. 109-280, set out as a note under section
    401 of Title 26, Internal Revenue Code.

                     EFFECTIVE DATE OF 1997 AMENDMENT                 
      Section 1524(b) of Pub. L. 105-34, as amended by Pub. L. 107-16,
    title VI, Sec. 655(a), June 7, 2001, 115 Stat. 131, provided that:
      "(1) In general. - Except as provided in paragraph (2), the
    amendments made by this section [amending this section] shall apply
    to elective deferrals for plan years beginning after December 31,
    1998.
      "(2) Nonapplication to previously acquired property. - The
    amendments made by this section shall not apply to any elective
    deferral which is invested in assets consisting of qualifying
    employer securities, qualifying employer real property, or both, if
    such assets were acquired before January 1, 1999."
      [Pub. L. 107-16, title VI, Sec. 655(b), June 7, 2001, 115 Stat.
    131, provided that: "The amendment made by this section [amending
    section 1524(b) of Pub. L. 105-34, set out above] shall apply as if
    included in the provision of the Taxpayer Relief Act of 1997 [Pub.
    L. 105-34] to which it relates."]

                     EFFECTIVE DATE OF 1990 AMENDMENT                 
      Section 2 of Pub. L. 101-540 provided that: "The amendment made
    by section 1 [amending this section] shall apply to interests in
    publicly traded partnerships acquired before, on, or after January
    1, 1987."

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by section 7881(l)(1)-(4) of Pub. L. 101-239 effective,
    except as otherwise provided, as if included in the provision of
    the Pension Protection Act, Pub. L. 100-203, Secs. 9302-9346, to
    which such amendment relates, see section 7882 of Pub. L. 101-239,
    set out as a note under section 401 of Title 26, Internal Revenue
    Code.
      Amendment by section 7891(a)(1) of Pub. L. 101-239 effective,
    except as otherwise provided, as if included in the provision of
    the Tax Reform Act of 1986, Pub. L. 99-514, to which such amendment
    relates, see section 7891(f) of Pub. L. 101-239, set out as a note
    under section 1002 of this title.
      Amendment by section 7894(e)(2) of Pub. L. 101-239 effective,
    except as otherwise provided, as if originally included in the
    provision of the Employee Retirement Income Security Act of 1974,
    Pub. L. 93-406, to which such amendment relates, see section
    7894(i) of Pub. L. 101-239, set out as a note under section 1002 of
    this title.

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Section 9345(a)(3) of Pub. L. 100-203 provided that: "The
    amendments made by this subsection [amending this section] shall
    apply with respect to arrangements established after December 17,
    1987."

                                REGULATIONS                            
      Secretary authorized, effective Sept. 2, 1974, to promulgate
    regulations wherever provisions of this part call for the
    promulgation of regulations, see sections 1031 and 1114 of this
    title.

-End-



-CITE-
    29 USC Sec. 1108                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 4 - fiduciary responsibility

-HEAD-
    Sec. 1108. Exemptions from prohibited transactions

-STATUTE-
    (a) Grant of exemptions
      The Secretary shall establish an exemption procedure for purposes
    of this subsection. Pursuant to such procedure, he may grant a
    conditional or unconditional exemption of any fiduciary or
    transaction, or class of fiduciaries or transactions, from all or
    part of the restrictions imposed by sections 1106 and 1107(a) of
    this title. Action under this subsection may be taken only after
    consultation and coordination with the Secretary of the Treasury.
    An exemption granted under this section shall not relieve a
    fiduciary from any other applicable provision of this chapter. The
    Secretary may not grant an exemption under this subsection unless
    he finds that such exemption is - 
        (1) administratively feasible,
        (2) in the interests of the plan and of its participants and
      beneficiaries, and
        (3) protective of the rights of participants and beneficiaries
      of such plan.

    Before granting an exemption under this subsection from section
    1106(a) or 1107(a) of this title, the Secretary shall publish
    notice in the Federal Register of the pendency of the exemption,
    shall require that adequate notice be given to interested persons,
    and shall afford interested persons opportunity to present views.
    The Secretary may not grant an exemption under this subsection from
    section 1106(b) of this title unless he affords an opportunity for
    a hearing and makes a determination on the record with respect to
    the findings required by paragraphs (1), (2), and (3) of this
    subsection.
    (b) Enumeration of transactions exempted from section 1106
      prohibitions
      The prohibitions provided in section 1106 of this title shall not
    apply to any of the following transactions:
        (1) Any loans made by the plan to parties in interest who are
      participants or beneficiaries of the plan if such loans (A) are
      available to all such participants and beneficiaries on a
      reasonably equivalent basis, (B) are not made available to highly
      compensated employees (within the meaning of section 414(q) of
      title 26) in an amount greater than the amount made available to
      other employees, (C) are made in accordance with specific
      provisions regarding such loans set forth in the plan, (D) bear a
      reasonable rate of interest, and (E) are adequately secured. A
      loan made by a plan shall not fail to meet the requirements of
      the preceding sentence by reason of a loan repayment suspension
      described under section 414(u)(4) of title 26.
        (2) Contracting or making reasonable arrangements with a party
      in interest for office space, or legal, accounting, or other
      services necessary for the establishment or operation of the
      plan, if no more than reasonable compensation is paid therefor.
        (3) A loan to an employee stock ownership plan (as defined in
      section 1107(d)(6) of this title), if - 
          (A) such loan is primarily for the benefit of participants
        and beneficiaries of the plan, and
          (B) such loan is at an interest rate which is not in excess
        of a reasonable rate.

      If the plan gives collateral to a party in interest for such
      loan, such collateral may consist only of qualifying employer
      securities (as defined in section 1107(d)(5) of this title).
        (4) The investment of all or part of a plan's assets in
      deposits which bear a reasonable interest rate in a bank or
      similar financial institution supervised by the United States or
      a State, if such bank or other institution is a fiduciary of such
      plan and if - 
          (A) the plan covers only employees of such bank or other
        institution and employees of affiliates of such bank or other
        institution, or
          (B) such investment is expressly authorized by a provision of
        the plan or by a fiduciary (other than such bank or institution
        or affiliate thereof) who is expressly empowered by the plan to
        so instruct the trustee with respect to such investment.

        (5) Any contract for life insurance, health insurance, or
      annuities with one or more insurers which are qualified to do
      business in a State, if the plan pays no more than adequate
      consideration, and if each such insurer or insurers is - 
          (A) the employer maintaining the plan, or
          (B) a party in interest which is wholly owned (directly or
        indirectly) by the employer maintaining the plan, or by any
        person which is a party in interest with respect to the plan,
        but only if the total premiums and annuity considerations
        written by such insurers for life insurance, health insurance,
        or annuities for all plans (and their employers) with respect
        to which such insurers are parties in interest (not including
        premiums or annuity considerations written by the employer
        maintaining the plan) do not exceed 5 percent of the total
        premiums and annuity considerations written for all lines of
        insurance in that year by such insurers (not including premiums
        or annuity considerations written by the employer maintaining
        the plan).

        (6) The providing of any ancillary service by a bank or similar
      financial institution supervised by the United States or a State,
      if such bank or other institution is a fiduciary of such plan,
      and if - 
          (A) such bank or similar financial institution has adopted
        adequate internal safeguards which assure that the providing of
        such ancillary service is consistent with sound banking and
        financial practice, as determined by Federal or State
        supervisory authority, and
          (B) the extent to which such ancillary service is provided is
        subject to specific guidelines issued by such bank or similar
        financial institution (as determined by the Secretary after
        consultation with Federal and State supervisory authority), and
        adherence to such guidelines would reasonably preclude such
        bank or similar financial institution from providing such
        ancillary service (i) in an excessive or unreasonable manner,
        and (ii) in a manner that would be inconsistent with the best
        interests of participants and beneficiaries of employee benefit
        plans.

      Such ancillary services shall not be provided at more than
      reasonable compensation.
        (7) The exercise of a privilege to convert securities, to the
      extent provided in regulations of the Secretary, but only if the
      plan receives no less than adequate consideration pursuant to
      such conversion.
        (8) Any transaction between a plan and (i) a common or
      collective trust fund or pooled investment fund maintained by a
      party in interest which is a bank or trust company supervised by
      a State or Federal agency or (ii) a pooled investment fund of an
      insurance company qualified to do business in a State, if - 
          (A) the transaction is a sale or purchase of an interest in
        the fund,
          (B) the bank, trust company, or insurance company receives
        not more than reasonable compensation, and
          (C) such transaction is expressly permitted by the instrument
        under which the plan is maintained, or by a fiduciary (other
        than the bank, trust company, or insurance company, or an
        affiliate thereof) who has authority to manage and control the
        assets of the plan.

        (9) The making by a fiduciary of a distribution of the assets
      of the plan in accordance with the terms of the plan if such
      assets are distributed in the same manner as provided under
      section 1344 of this title (relating to allocation of assets).
        (10) Any transaction required or permitted under part 1 of
      subtitle E of subchapter III of this chapter.
        (11) A merger of multiemployer plans, or the transfer of assets
      or liabilities between multiemployer plans, determined by the
      Pension Benefit Guaranty Corporation to meet the requirements of
      section 1411 of this title.
        (12) The sale by a plan to a party in interest on or after
      December 18, 1987, of any stock, if - 
          (A) the requirements of paragraphs (1) and (2) of subsection
        (e) of this section are met with respect to such stock,
          (B) on the later of the date on which the stock was acquired
        by the plan, or January 1, 1975, such stock constituted a
        qualifying employer security (as defined in section 1107(d)(5)
        of this title as then in effect), and
          (C) such stock does not constitute a qualifying employer
        security (as defined in section 1107(d)(5) of this title as in
        effect at the time of the sale).

        (13) Any transfer made before January 1, 2014, of excess
      pension assets from a defined benefit plan to a retiree health
      account in a qualified transfer permitted under section 420 of
      title 26 (as in effect on October 22, 2004).
        (14) Any transaction in connection with the provision of
      investment advice described in section 1002(21)(A)(ii) of this
      title to a participant or beneficiary of an individual account
      plan that permits such participant or beneficiary to direct the
      investment of assets in their individual account, if - 
          (A) the transaction is - 
            (i) the provision of the investment advice to the
          participant or beneficiary of the plan with respect to a
          security or other property available as an investment under
          the plan,
            (ii) the acquisition, holding, or sale of a security or
          other property available as an investment under the plan
          pursuant to the investment advice, or
            (iii) the direct or indirect receipt of fees or other
          compensation by the fiduciary adviser or an affiliate thereof
          (or any employee, agent, or registered representative of the
          fiduciary adviser or affiliate) in connection with the
          provision of the advice or in connection with an acquisition,
          holding, or sale of a security or other property available as
          an investment under the plan pursuant to the investment
          advice; and

          (B) the requirements of subsection (g) are met.

        (15)(A) Any transaction involving the purchase or sale of
      securities, or other property (as determined by the Secretary),
      between a plan and a party in interest (other than a fiduciary
      described in section 1002(21)(A) of this title) with respect to a
      plan if - 
          (i) the transaction involves a block trade,
          (ii) at the time of the transaction, the interest of the plan
        (together with the interests of any other plans maintained by
        the same plan sponsor), does not exceed 10 percent of the
        aggregate size of the block trade,
          (iii) the terms of the transaction, including the price, are
        at least as favorable to the plan as an arm's length (!1)
        transaction, and

          (iv) the compensation associated with the purchase and sale
        is not greater than the compensation associated with an arm's
        length (!1) transaction with an unrelated party.

        (B) For purposes of this paragraph, the term "block trade"
      means any trade of at least 10,000 shares or with a market value
      of at least $200,000 which will be allocated across two or more
      unrelated client accounts of a fiduciary.
        (16) Any transaction involving the purchase or sale of
      securities, or other property (as determined by the Secretary),
      between a plan and a party in interest if - 
          (A) the transaction is executed through an electronic
        communication network, alternative trading system, or similar
        execution system or trading venue subject to regulation and
        oversight by - 
            (i) the applicable Federal regulating entity, or
            (ii) such foreign regulatory entity as the Secretary may
          determine by regulation,

          (B) either - 
            (i) the transaction is effected pursuant to rules designed
          to match purchases and sales at the best price available
          through the execution system in accordance with applicable
          rules of the Securities and Exchange Commission or other
          relevant governmental authority, or
            (ii) neither the execution system nor the parties to the
          transaction take into account the identity of the parties in
          the execution of trades,

          (C) the price and compensation associated with the purchase
        and sale are not greater than the price and compensation
        associated with an arm's length (!1) transaction with an
        unrelated party,
          (D) if the party in interest has an ownership interest in the
        system or venue described in subparagraph (A), the system or
        venue has been authorized by the plan sponsor or other
        independent fiduciary for transactions described in this
        paragraph, and
          (E) not less than 30 days prior to the initial transaction
        described in this paragraph executed through any system or
        venue described in subparagraph (A), a plan fiduciary is
        provided written or electronic notice of the execution of such
        transaction through such system or venue.

        (17)(A) Transactions described in subparagraphs (A), (B), and
      (D) of section 1106(a)(1) of this title between a plan and a
      person that is a party in interest other than a fiduciary (or an
      affiliate) who has or exercises any discretionary authority or
      control with respect to the investment of the plan assets
      involved in the transaction or renders investment advice (within
      the meaning of section 1002(21)(A)(ii) of this title) with
      respect to those assets, solely by reason of providing services
      to the plan or solely by reason of a relationship to such a
      service provider described in subparagraph (F), (G), (H), or (I)
      of section 1002(14) of this title, or both, but only if in
      connection with such transaction the plan receives no less, nor
      pays no more, than adequate consideration.
        (B) For purposes of this paragraph, the term "adequate
      consideration" means - 
          (i) in the case of a security for which there is a generally
        recognized market - 
            (I) the price of the security prevailing on a national
          securities exchange which is registered under section 6 of
          the Securities Exchange Act of 1934 [15 U.S.C. 78f], taking
          into account factors such as the size of the transaction and
          marketability of the security, or
            (II) if the security is not traded on such a national
          securities exchange, a price not less favorable to the plan
          than the offering price for the security as established by
          the current bid and asked prices quoted by persons
          independent of the issuer and of the party in interest,
          taking into account factors such as the size of the
          transaction and marketability of the security, and

          (ii) in the case of an asset other than a security for which
        there is a generally recognized market, the fair market value
        of the asset as determined in good faith by a fiduciary or
        fiduciaries in accordance with regulations prescribed by the
        Secretary.

        (18) Foreign exchange transactions. - Any foreign exchange
      transactions, between a bank or broker-dealer (or any affiliate
      of either), and a plan (as defined in section 1002(3) of this
      title) with respect to which such bank or broker-dealer (or
      affiliate) is a trustee, custodian, fiduciary, or other party in
      interest, if - 
          (A) the transaction is in connection with the purchase,
        holding, or sale of securities or other investment assets
        (other than a foreign exchange transaction unrelated to any
        other investment in securities or other investment assets),
          (B) at the time the foreign exchange transaction is entered
        into, the terms of the transaction are not less favorable to
        the plan than the terms generally available in comparable arm's
        length (!1) foreign exchange transactions between unrelated
        parties, or the terms afforded by the bank or broker-dealer (or
        any affiliate of either) in comparable arm's-length foreign
        exchange transactions involving unrelated parties,
          (C) the exchange rate used by such bank or broker-dealer (or
        affiliate) for a particular foreign exchange transaction does
        not deviate by more or less than 3 percent from the interbank
        bid and asked rates for transactions of comparable size and
        maturity at the time of the transaction as displayed on an
        independent service that reports rates of exchange in the
        foreign currency market for such currency, and
          (D) the bank or broker-dealer (or any affiliate of either)
        does not have investment discretion, or provide investment
        advice, with respect to the transaction.

        (19) Cross trading. - Any transaction described in sections
      1106(a)(1)(A) and 1106(b)(2) of this title involving the purchase
      and sale of a security between a plan and any other account
      managed by the same investment manager, if - 
          (A) the transaction is a purchase or sale, for no
        consideration other than cash payment against prompt delivery
        of a security for which market quotations are readily
        available,
          (B) the transaction is effected at the independent current
        market price of the security (within the meaning of section
        270.17a-7(b) of title 17, Code of Federal Regulations),
          (C) no brokerage commission, fee (except for customary
        transfer fees, the fact of which is disclosed pursuant to
        subparagraph (D)), or other remuneration is paid in connection
        with the transaction,
          (D) a fiduciary (other than the investment manager engaging
        in the cross-trades or any affiliate) for each plan
        participating in the transaction authorizes in advance of any
        cross-trades (in a document that is separate from any other
        written agreement of the parties) the investment manager to
        engage in cross trades at the investment manager's discretion,
        after such fiduciary has received disclosure regarding the
        conditions under which cross trades may take place (but only if
        such disclosure is separate from any other agreement or
        disclosure involving the asset management relationship),
        including the written policies and procedures of the investment
        manager described in subparagraph (H),
          (E) each plan participating in the transaction has assets of
        at least $100,000,000, except that if the assets of a plan are
        invested in a master trust containing the assets of plans
        maintained by employers in the same controlled group (as
        defined in section 1107(d)(7) of this title), the master trust
        has assets of at least $100,000,000,
          (F) the investment manager provides to the plan fiduciary who
        authorized cross trading under subparagraph (D) a quarterly
        report detailing all cross trades executed by the investment
        manager in which the plan participated during such quarter,
        including the following information, as applicable: (i) the
        identity of each security bought or sold; (ii) the number of
        shares or units traded; (iii) the parties involved in the cross-
        trade; and (iv) trade price and the method used to establish
        the trade price,
          (G) the investment manager does not base its fee schedule on
        the plan's consent to cross trading, and no other service
        (other than the investment opportunities and cost savings
        available through a cross trade) is conditioned on the plan's
        consent to cross trading,
          (H) the investment manager has adopted, and cross-trades are
        effected in accordance with, written cross-trading policies and
        procedures that are fair and equitable to all accounts
        participating in the cross-trading program, and that include a
        description of the manager's pricing policies and procedures,
        and the manager's policies and procedures for allocating cross
        trades in an objective manner among accounts participating in
        the cross-trading program, and
          (I) the investment manager has designated an individual
        responsible for periodically reviewing such purchases and sales
        to ensure compliance with the written policies and procedures
        described in subparagraph (H), and following such review, the
        individual shall issue an annual written report no later than
        90 days following the period to which it relates signed under
        penalty of perjury to the plan fiduciary who authorized cross
        trading under subparagraph (D) describing the steps performed
        during the course of the review, the level of compliance, and
        any specific instances of non-compliance.

      The written report under subparagraph (I) shall also notify the
      plan fiduciary of the plan's right to terminate participation in
      the investment manager's cross-trading program at any time.
        (20)(A) Except as provided in subparagraphs (B) and (C), a
      transaction described in section 1106(a) of this title in
      connection with the acquisition, holding, or disposition of any
      security or commodity, if the transaction is corrected before the
      end of the correction period.
        (B) Subparagraph (A) does not apply to any transaction between
      a plan and a plan sponsor or its affiliates that involves the
      acquisition or sale of an employer security (as defined in
      section 1107(d)(1) of this title) or the acquisition, sale, or
      lease of employer real property (as defined in section 1107(d)(2)
      of this title).
        (C) In the case of any fiduciary or other party in interest (or
      any other person knowingly participating in such transaction),
      subparagraph (A) does not apply to any transaction if, at the
      time the transaction occurs, such fiduciary or party in interest
      (or other person) knew (or reasonably should have known) that the
      transaction would (without regard to this paragraph) constitute a
      violation of section 1106(a) of this title.
        (D) For purposes of this paragraph, the term "correction
      period" means, in connection with a fiduciary or party in
      interest (or other person knowingly participating in the
      transaction), the 14-day period beginning on the date on which
      such fiduciary or party in interest (or other person) discovers,
      or reasonably should have discovered, that the transaction would
      (without regard to this paragraph) constitute a violation of
      section 1106(a) of this title.
        (E) For purposes of this paragraph - 
          (i) The term "security" has the meaning given such term by
        section 475(c)(2) of title 26 (without regard to subparagraph
        (F)(iii) and the last sentence thereof).
          (ii) The term "commodity" has the meaning given such term by
        section 475(e)(2) of title 26 (without regard to subparagraph
        (D)(iii) thereof).
          (iii) The term "correct" means, with respect to a transaction
        - 
            (I) to undo the transaction to the extent possible and in
          any case to make good to the plan or affected account any
          losses resulting from the transaction, and
            (II) to restore to the plan or affected account any profits
          made through the use of assets of the plan.
    (c) Fiduciary benefits and compensation not prohibited by section
      1106
      Nothing in section 1106 of this title shall be construed to
    prohibit any fiduciary from - 
        (1) receiving any benefit to which he may be entitled as a
      participant or beneficiary in the plan, so long as the benefit is
      computed and paid on a basis which is consistent with the terms
      of the plan as applied to all other participants and
      beneficiaries;
        (2) receiving any reasonable compensation for services
      rendered, or for the reimbursement of expenses properly and
      actually incurred, in the performance of his duties with the
      plan; except that no person so serving who already receives full
      time pay from an employer or an association of employers, whose
      employees are participants in the plan, or from an employee
      organization whose members are participants in such plan shall
      receive compensation from such plan, except for reimbursement of
      expenses properly and actually incurred; or
        (3) serving as a fiduciary in addition to being an officer,
      employee, agent, or other representative of a party in interest.
    (d) Owner-employees; family members; shareholder employees
      (1) Section 1107(b) of this title and subsections (b), (c), and
    (e) of this section shall not apply to a transaction in which a
    plan directly or indirectly - 
        (A) lends any part of the corpus or income of the plan to,
        (B) pays any compensation for personal services rendered to the
      plan to, or
        (C) acquires for the plan any property from, or sells any
      property to,

    any person who is with respect to the plan an owner-employee (as
    defined in section 401(c)(3) of title 26), a member of the family
    (as defined in section 267(c)(4) of such title) of any such owner-
    employee, or any corporation in which any such owner-employee
    owns, directly or indirectly, 50 percent or more of the total
    combined voting power of all classes of stock entitled to vote or
    50 percent or more of the total value of shares of all classes of
    stock of the corporation.
      (2)(A) For purposes of paragraph (1), the following shall be
    treated as owner-employees:
        (i) A shareholder-employee.
        (ii) A participant or beneficiary of an individual retirement
      plan (as defined in section 7701(a)(37) of title 26).
        (iii) An employer or association of employees which establishes
      such an individual retirement plan under section 408(c) of such
      title.

      (B) Paragraph (1)(C) shall not apply to a transaction which
    consists of a sale of employer securities to an employee stock
    ownership plan (as defined in section 1107(d)(6) of this title) by
    a shareholder-employee, a member of the family (as defined in
    section 267(c)(4) of such title) of any such owner-employee, or a
    corporation in which such a shareholder-employee owns stock
    representing a 50 percent or greater interest described in
    paragraph (1).
      (C) For purposes of paragraph (1)(A), the term "owner-employee"
    shall only include a person described in clause (ii) or (iii) of
    subparagraph (A).
      (3) For purposes of paragraph (2), the term "shareholder-
    employee" means an employee or officer of an S corporation (as
    defined in section 1361(a)(1) of such title) who owns (or is
    considered as owning within the meaning of section 318(a)(1) of
    such title) more than 5 percent of the outstanding stock of the
    corporation on any day during the taxable year of such corporation.
    (e) Acquisition or sale by plan of qualifying employer securities;
      acquisition, sale, or lease by plan of qualifying employer real
      property
      Sections 1106 and 1107 of this title shall not apply to the
    acquisition or sale by a plan of qualifying employer securities (as
    defined in section 1107(d)(5) of this title) or acquisition, sale
    or lease by a plan of qualifying employer real property (as defined
    in section 1107(d)(4) of this title) - 
        (1) if such acquisition, sale, or lease is for adequate
      consideration (or in the case of a marketable obligation, at a
      price not less favorable to the plan than the price determined
      under section 1107(e)(1) of this title),
        (2) if no commission is charged with respect thereto, and
        (3) if - 
          (A) the plan is an eligible individual account plan (as
        defined in section 1107(d)(3) of this title), or
          (B) in the case of an acquisition or lease of qualifying
        employer real property by a plan which is not an eligible
        individual account plan, or of an acquisition of qualifying
        employer securities by such a plan, the lease or acquisition is
        not prohibited by section 1107(a) of this title.
    (f) Applicability of statutory prohibitions to mergers or transfers
      Section 1106(b)(2) of this title shall not apply to any merger or
    transfer described in subsection (b)(11) of this section.
    (g) Provision of investment advice to participant and beneficiaries
      (1) In general
        The prohibitions provided in section 1106 of this title shall
      not apply to transactions described in subsection (b)(14) if the
      investment advice provided by a fiduciary adviser is provided
      under an eligible investment advice arrangement.
      (2) Eligible investment advice arrangement
        For purposes of this subsection, the term "eligible investment
      advice arrangement" means an arrangement - 
          (A) which either - 
            (i) provides that any fees (including any commission or
          other compensation) received by the fiduciary adviser for
          investment advice or with respect to the sale, holding, or
          acquisition of any security or other property for purposes of
          investment of plan assets do not vary depending on the basis
          of any investment option selected, or
            (ii) uses a computer model under an investment advice
          program meeting the requirements of paragraph (3) in
          connection with the provision of investment advice by a
          fiduciary adviser to a participant or beneficiary, and

          (B) with respect to which the requirements of paragraph (4),
        (5), (6), (7), (8), and (9) are met.
      (3) Investment advice program using computer model
        (A) In general
          An investment advice program meets the requirements of this
        paragraph if the requirements of subparagraphs (B), (C), and
        (D) are met.
        (B) Computer model
          The requirements of this subparagraph are met if the
        investment advice provided under the investment advice program
        is provided pursuant to a computer model that - 
            (i) applies generally accepted investment theories that
          take into account the historic returns of different asset
          classes over defined periods of time,
            (ii) utilizes relevant information about the participant,
          which may include age, life expectancy, retirement age, risk
          tolerance, other assets or sources of income, and preferences
          as to certain types of investments,
            (iii) utilizes prescribed objective criteria to provide
          asset allocation portfolios comprised of investment options
          available under the plan,
            (iv) operates in a manner that is not biased in favor of
          investments offered by the fiduciary adviser or a person with
          a material affiliation or contractual relationship with the
          fiduciary adviser, and
            (v) takes into account all investment options under the
          plan in specifying how a participant's account balance should
          be invested and is not inappropriately weighted with respect
          to any investment option.
        (C) Certification
          (i) In general
            The requirements of this subparagraph are met with respect
          to any investment advice program if an eligible investment
          expert certifies, prior to the utilization of the computer
          model and in accordance with rules prescribed by the
          Secretary, that the computer model meets the requirements of
          subparagraph (B).
          (ii) Renewal of certifications
            If, as determined under regulations prescribed by the
          Secretary, there are material modifications to a computer
          model, the requirements of this subparagraph are met only if
          a certification described in clause (i) is obtained with
          respect to the computer model as so modified.
          (iii) Eligible investment expert
            The term "eligible investment expert" means any person - 
              (I) which meets such requirements as the Secretary may
            provide, and
              (II) does not bear any material affiliation or
            contractual relationship with any investment adviser or a
            related person thereof (or any employee, agent, or
            registered representative of the investment adviser or
            related person).
        (D) Exclusivity of recommendation
          The requirements of this subparagraph are met with respect to
        any investment advice program if - 
            (i) the only investment advice provided under the program
          is the advice generated by the computer model described in
          subparagraph (B), and
            (ii) any transaction described in subsection (b)(14)(B)(ii)
          occurs solely at the direction of the participant or
          beneficiary.

        Nothing in the preceding sentence shall preclude the
        participant or beneficiary from requesting investment advice
        other than that described in subparagraph (A), but only if such
        request has not been solicited by any person connected with
        carrying out the arrangement.
      (4) Express authorization by separate fiduciary
        The requirements of this paragraph are met with respect to an
      arrangement if the arrangement is expressly authorized by a plan
      fiduciary other than the person offering the investment advice
      program, any person providing investment options under the plan,
      or any affiliate of either.
      (5) Annual audit
        The requirements of this paragraph are met if an independent
      auditor, who has appropriate technical training or experience and
      proficiency and so represents in writing - 
          (A) conducts an annual audit of the arrangement for
        compliance with the requirements of this subsection, and
          (B) following completion of the annual audit, issues a
        written report to the fiduciary who authorized use of the
        arrangement which presents its specific findings regarding
        compliance of the arrangement with the requirements of this
        subsection.

      For purposes of this paragraph, an auditor is considered
      independent if it is not related to the person offering the
      arrangement to the plan and is not related to any person
      providing investment options under the plan.
      (6) Disclosure
        The requirements of this paragraph are met if - 
          (A) the fiduciary adviser provides to a participant or a
        beneficiary before the initial provision of the investment
        advice with regard to any security or other property offered as
        an investment option, a written notification (which may consist
        of notification by means of electronic communication) - 
            (i) of the role of any party that has a material
          affiliation or contractual relationship with the financial
          adviser in the development of the investment advice program
          and in the selection of investment options available under
          the plan,
            (ii) of the past performance and historical rates of return
          of the investment options available under the plan,
            (iii) of all fees or other compensation relating to the
          advice that the fiduciary adviser or any affiliate thereof is
          to receive (including compensation provided by any third
          party) in connection with the provision of the advice or in
          connection with the sale, acquisition, or holding of the
          security or other property,
            (iv) of any material affiliation or contractual
          relationship of the fiduciary adviser or affiliates thereof
          in the security or other property,
            (v) (!2) the manner, and under what circumstances, any
          participant or beneficiary information provided under the
          arrangement will be used or disclosed,

            (vi) of the types of services provided by the fiduciary
          adviser in connection with the provision of investment advice
          by the fiduciary adviser,
            (vii) that the adviser is acting as a fiduciary of the plan
          in connection with the provision of the advice, and
            (viii) that a recipient of the advice may separately
          arrange for the provision of advice by another adviser, that
          could have no material affiliation with and receive no fees
          or other compensation in connection with the security or
          other property, and

          (B) at all times during the provision of advisory services to
        the participant or beneficiary, the fiduciary adviser - 
            (i) maintains the information described in subparagraph (A)
          in accurate form and in the manner described in paragraph
          (8),
            (ii) provides, without charge, accurate information to the
          recipient of the advice no less frequently than annually,
            (iii) provides, without charge, accurate information to the
          recipient of the advice upon request of the recipient, and
            (iv) provides, without charge, accurate information to the
          recipient of the advice concerning any material change to the
          information required to be provided to the recipient of the
          advice at a time reasonably contemporaneous to the change in
          information.
      (7) Other conditions
        The requirements of this paragraph are met if - 
          (A) the fiduciary adviser provides appropriate disclosure, in
        connection with the sale, acquisition, or holding of the
        security or other property, in accordance with all applicable
        securities laws,
          (B) the sale, acquisition, or holding occurs solely at the
        direction of the recipient of the advice,
          (C) the compensation received by the fiduciary adviser and
        affiliates thereof in connection with the sale, acquisition, or
        holding of the security or other property is reasonable, and
          (D) the terms of the sale, acquisition, or holding of the
        security or other property are at least as favorable to the
        plan as an arm's length (!1) transaction would be.
      (8) Standards for presentation of information
        (A) In general
          The requirements of this paragraph are met if the
        notification required to be provided to participants and
        beneficiaries under paragraph (6)(A) is written in a clear and
        conspicuous manner and in a manner calculated to be understood
        by the average plan participant and is sufficiently accurate
        and comprehensive to reasonably apprise such participants and
        beneficiaries of the information required to be provided in the
        notification.
        (B) Model form for disclosure of fees and other compensation
          The Secretary shall issue a model form for the disclosure of
        fees and other compensation required in paragraph (6)(A)(iii)
        which meets the requirements of subparagraph (A).
      (9) Maintenance for 6 years of evidence of compliance
        The requirements of this paragraph are met if a fiduciary
      adviser who has provided advice referred to in paragraph (1)
      maintains, for a period of not less than 6 years after the
      provision of the advice, any records necessary for determining
      whether the requirements of the preceding provisions of this
      subsection and of subsection (b)(14) have been met. A transaction
      prohibited under section 1106 of this title shall not be
      considered to have occurred solely because the records are lost
      or destroyed prior to the end of the 6-year period due to
      circumstances beyond the control of the fiduciary adviser.
      (10) Exemption for plan sponsor and certain other fiduciaries
        (A) In general
          Subject to subparagraph (B), a plan sponsor or other person
        who is a fiduciary (other than a fiduciary adviser) shall not
        be treated as failing to meet the requirements of this part
        solely by reason of the provision of investment advice referred
        to in section 1002(21)(A)(ii) of this title (or solely by
        reason of contracting for or otherwise arranging for the
        provision of the advice), if - 
            (i) the advice is provided by a fiduciary adviser pursuant
          to an eligible investment advice arrangement between the plan
          sponsor or other fiduciary and the fiduciary adviser for the
          provision by the fiduciary adviser of investment advice
          referred to in such section,
            (ii) the terms of the eligible investment advice
          arrangement require compliance by the fiduciary adviser with
          the requirements of this subsection, and
            (iii) the terms of the eligible investment advice
          arrangement include a written acknowledgment by the fiduciary
          adviser that the fiduciary adviser is a fiduciary of the plan
          with respect to the provision of the advice.
        (B) Continued duty of prudent selection of adviser and periodic
          review
          Nothing in subparagraph (A) shall be construed to exempt a
        plan sponsor or other person who is a fiduciary from any
        requirement of this part for the prudent selection and periodic
        review of a fiduciary adviser with whom the plan sponsor or
        other person enters into an eligible investment advice
        arrangement for the provision of investment advice referred to
        in section 1002(21)(A)(ii) of this title. The plan sponsor or
        other person who is a fiduciary has no duty under this part to
        monitor the specific investment advice given by the fiduciary
        adviser to any particular recipient of the advice.
        (C) Availability of plan assets for payment for advice
          Nothing in this part shall be construed to preclude the use
        of plan assets to pay for reasonable expenses in providing
        investment advice referred to in section 1002(21)(A)(ii) of
        this title.
      (11) Definitions
        For purposes of this subsection and subsection (b)(14) - 
        (A) Fiduciary adviser
          The term "fiduciary adviser" means, with respect to a plan, a
        person who is a fiduciary of the plan by reason of the
        provision of investment advice referred to in section
        1002(21)(A)(ii) of this title by the person to the participant
        or beneficiary of the plan and who is - 
            (i) registered as an investment adviser under the
          Investment Advisers Act of 1940 (15 U.S.C. 80b-1 et seq.) or
          under the laws of the State in which the fiduciary maintains
          its principal office and place of business,
            (ii) a bank or similar financial institution referred to in
          section 1108(b)(4) of this title or a savings association (as
          defined in section 1813(b)(1) of title 12), but only if the
          advice is provided through a trust department of the bank or
          similar financial institution or savings association which is
          subject to periodic examination and review by Federal or
          State banking authorities,
            (iii) an insurance company qualified to do business under
          the laws of a State,
            (iv) a person registered as a broker or dealer under the
          Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.),
            (v) an affiliate of a person described in any of clauses
          (i) through (iv), or
            (vi) an employee, agent, or registered representative of a
          person described in clauses (i) through (v) who satisfies the
          requirements of applicable insurance, banking, and securities
          laws relating to the provision of the advice.

        For purposes of this part, a person who develops the computer
        model described in paragraph (3)(B) or markets the investment
        advice program or computer model shall be treated as a person
        who is a fiduciary of the plan by reason of the provision of
        investment advice referred to in section 1002(21)(A)(ii) of
        this title to the participant or beneficiary and shall be
        treated as a fiduciary adviser for purposes of this subsection
        and subsection (b)(14), except that the Secretary may prescribe
        rules under which only 1 fiduciary adviser may elect to be
        treated as a fiduciary with respect to the plan.
        (B) Affiliate
          The term "affiliate" of another entity means an affiliated
        person of the entity (as defined in section 80a-2(a)(3) of
        title 15).
        (C) Registered representative
          The term "registered representative" of another entity means
        a person described in section 3(a)(18) of the Securities
        Exchange Act of 1934 (15 U.S.C. 78c(a)(18)) (substituting the
        entity for the broker or dealer referred to in such section) or
        a person described in section 202(a)(17) of the Investment
        Advisers Act of 1940 (15 U.S.C. 80b-2(a)(17)) (substituting the
        entity for the investment adviser referred to in such section).

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 408, Sept. 2, 1974, 88 Stat. 883;
    Pub. L. 96-364, title III, Sec. 308, Sept. 26, 1980, 94 Stat. 1295;
    Pub. L. 97-354, Sec. 5(a)(43), Oct. 19, 1982, 96 Stat. 1697; Pub.
    L. 99-514, title XI, Sec. 1114(b)(15)(B), title XVIII, Sec.
    1898(i)(1), Oct. 22, 1986, 100 Stat. 2452, 2957; Pub. L. 101-239,
    title VII, Secs. 7881(l)(5), 7891, 7894(e)(4)(A), Dec. 19, 1989,
    103 Stat. 2443, 2445, 2450; Pub. L. 101-508, title XII, Sec.
    12012(b), Nov. 5, 1990, 104 Stat. 1388-571; Pub. L. 103-465, title
    VII, Sec. 731(c)(4)(C), Dec. 8, 1994, 108 Stat. 5004; Pub. L. 104-
    188, title I, Sec. 1704(n)(2), Aug. 20, 1996, 110 Stat. 1886; Pub.
    L. 105-34, title XV, Sec. 1506(b)(2), Aug. 5, 1997, 111 Stat. 1066;
    Pub. L. 106-170, title V, Sec. 535(a)(2)(C), Dec. 17, 1999, 113
    Stat. 1934; Pub. L. 107-16, title VI, Sec. 612(b), June 7, 2001,
    115 Stat. 100; Pub. L. 108-218, title II, Sec. 204(b)(3), Apr. 10,
    2004, 118 Stat. 609; Pub. L. 108-357, title VII, Sec. 709(a)(3),
    Oct. 22, 2004, 118 Stat. 1551; Pub. L. 109-280, title I, Sec.
    107(a)(11), title VI, Secs. 601(a)(1), (2), 611(a)(1), (c)(1),
    (d)(1), (e)(1), (g)(1), 612(a), Aug. 17, 2006, 120 Stat. 819, 952,
    953, 967-969, 971, 972, 975.)


-STATAMEND-
                      AMENDMENT OF SUBSECTION (B)(13)                  
      Pub. L. 109-280, title I, Sec. 107(a)(11), (e), Aug. 17, 2006,
    120 Stat. 819, 820, provided that, applicable to plan years
    beginning after 2007, subsection (b)(13) of this section is amended
    by substituting "August 17, 2006" for "October 22, 2004".

-REFTEXT-
                            REFERENCES IN TEXT                        
      This chapter, referred to in subsec. (a), was in the original
    "this Act", meaning Pub. L. 93-406, known as the Employee
    Retirement Income Security Act of 1974. Titles I, III, and IV of
    such Act are classified principally to this chapter. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 1001 of this title and Tables.
      The Investment Advisers Act of 1940, referred to in subsec.
    (g)(11)(A)(i), is title II of act Aug. 22, 1940, ch. 686, 54 Stat.
    847, as amended, which is classified generally to subchapter II
    (Sec. 80b-1 et seq.) of chapter 2D of Title 15, Commerce and Trade.
    For complete classification of this Act to the Code, see section
    80b-20 of Title 15 and Tables.
      The Securities Exchange Act of 1934, referred to in subsec.
    (g)(11)(A)(iv), is act June 6, 1934, ch. 404, 48 Stat. 881, as
    amended, which is classified principally to chapter 2B (Sec. 78a et
    seq.) of Title 15, Commerce and Trade. For complete classification
    of this Act to the Code, see section 78a of Title 15 and Tables.


-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (b)(14). Pub. L. 109-280, Sec. 601(a)(1), added
    par. (14).
      Subsec. (b)(15) to (19). Pub. L. 109-280, Sec. 611(a)(1), (c)(1),
    (d)(1), (e)(1), (g)(1), added pars. (15) to (19).
      Subsec. (b)(20). Pub. L. 109-280, Sec. 612(a), added par. (20).
      Subsec. (g). Pub. L. 109-280, Sec. 601(a)(2), added subsec. (g).
      2004 - Subsec. (b)(13). Pub. L. 108-357 substituted "October 22,
    2004" for "April 10, 2004".
      Pub. L. 108-218 substituted "January 1, 2014" for "January 1,
    2006" and "April 10, 2004" for "December 17, 1999".
      2001 - Subsec. (d)(2)(C). Pub. L. 107-16 added subpar. (C).
      1999 - Subsec. (b)(13). Pub. L. 106-170 substituted "made before
    January 1, 2006" for "in a taxable year beginning before January 1,
    2001" and "December 17, 1999" for "January 1, 1995".
      1997 - Subsec. (d). Pub. L. 105-34 amended subsec. (d) generally,
    substituting present provisions for provisions exempting
    transactions involving an owner-employee, a member of the family,
    or a corporation controlled by any such owner-employee through the
    ownership, directly or indirectly, of 50 percent or more of the
    total combined voting power of all classes of stock entitled to
    vote or 50 percent or more of the total value of shares of all
    classes of stock of the corporation.
      1996 - Subsec. (b)(1). Pub. L. 104-188 inserted at end "A loan
    made by a plan shall not fail to meet the requirements of the
    preceding sentence by reason of a loan repayment suspension
    described under section 414(u)(4) of title 26."
      1994 - Subsec. (b)(13). Pub. L. 103-465 substituted "2001" for
    "1996" and "1995" for "1991".
      1990 - Subsec. (b)(13). Pub. L. 101-508 added par. (13).
      1989 - Subsec. (b)(12). Pub. L. 101-239, Sec. 7881(l)(5), added
    par. (12).
      Subsec. (d). Pub. L. 101-239, Sec. 7891(a)(1), in last sentence,
    substituted "section 401(c)(3) of the Internal Revenue Code of
    1986" for "section 401(c)(3) of the Internal Revenue Code of 1954",
    which for purposes of codification was translated as "section
    401(c)(3) of title 26" thus requiring no change in text.
      Pub. L. 101-239, Sec. 7891(a)(2), in last sentence, substituted
    "section 408 of the Internal Revenue Code of 1986" for "section 408
    of the Internal Revenue Code of 1954" and "section 408(c) of the
    Internal Revenue Code of 1986" for "section 408(c) of such Code"
    which for purposes of codification were translated as "section 408
    of title 26" and "section 408(c) of title 26", respectively, thus
    requiring no change in text.
      Pub. L. 101-239, Sec. 7894(e)(4)(A), in last sentence,
    substituted "individual retirement account or individual retirement
    annuity described in section 408 of title 26 or a retirement bond
    described in section 409 of title 26 (as effective for obligations
    issued before January 1, 1984)" for "individual retirement account,
    individual retirement annuity, or an individual retirement bond (as
    defined in section 408 or 409 of title 26)" and "section 408(c) of
    such Code" for "section 408(c) of such code", which for purposes of
    codification was translated as "section 408(c) of title 26" thus
    requiring no change in text.
      1986 - Subsec. (b)(1)(B). Pub. L. 99-514, Sec. 1114(b)(15)(B),
    substituted "highly compensated employees (within the meaning of
    section 414(q) of title 26)" for "highly compensated employees,
    officers, or shareholders".
      Subsec. (d). Pub. L. 99-514, Sec. 1898(i)(1), struck out "(a),"
    before "(b)," in introductory provisions.
      1982 - Subsec. (d). Pub. L. 97-354 substituted "section 1379 of
    title 26 as in effect on the day before the date of the enactment
    of the Subchapter S Revision Act of 1982" for "section 1379 of
    title 26".
      1980 - Subsec. (b)(10), (11). Pub. L. 96-364, Sec. 308(a), added
    pars. (10) and (11).
      Subsec. (f). Pub. L. 96-364, Sec. 308(b), added subsec. (f).

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Amendment by section 107(a)(11) of Pub. L. 109-280 applicable to
    plan years beginning after 2007, see section 107(e) of Pub. L. 109-
    280, set out as a note under section 1021 of this title.
      Pub. L. 109-280, title VI, Sec. 601(a)(3), Aug. 17, 2006, 120
    Stat. 958, provided that: "The amendments made by this subsection
    [amending this section] shall apply with respect to advice referred
    to in section 3(21)(A)(ii) of the Employee Retirement Income
    Security Act of 1974 [29 U.S.C. 1002(21)(A)(ii)] provided after
    December 31, 2006."
      Amendment by section 611(a)(1), (c)(1), (d)(1), (e)(1), (g)(1) of
    Pub. L. 109-280 applicable to transactions occurring after Aug. 17,
    2006, see section 611(h)(1) of Pub. L. 109-280, set out as a note
    under section 4975 of Title 26, Internal Revenue Code.
      Amendment by section 612(a) of Pub. L. 109-280 applicable to any
    transaction which the fiduciary or disqualified person discovers,
    or reasonably should have discovered, after Aug. 17, 2006,
    constitutes a prohibited transaction, see section 612(c) of Pub. L.
    109-280, set out as a note under section 4975 of Title 26, Internal
    Revenue Code.

                     EFFECTIVE DATE OF 2001 AMENDMENT                 
      Amendment by Pub. L. 107-16 applicable to years beginning after
    Dec. 31, 2001, see section 612(c) of Pub. L. 107-16, set out as a
    note under section 4975 of Title 26, Internal Revenue Code.

                     EFFECTIVE DATE OF 1999 AMENDMENT                 
      Amendment by Pub. L. 106-170 applicable to qualified transfers
    occurring after Dec. 17, 1999, see section 535(c)(1) of Pub. L. 106-
    170, set out as a note under section 420 of Title 26, Internal
    Revenue Code.

                     EFFECTIVE DATE OF 1997 AMENDMENT                 
      Amendment by Pub. L. 105-34 applicable to taxable years beginning
    after Dec. 31, 1997, see section 1506(c) of Pub. L. 105-34, set out
    as a note under section 409 of Title 26, Internal Revenue Code.

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Amendment by Pub. L. 104-188 effective as of Dec. 12, 1994, see
    section 1704(n)(3) of Pub. L. 104-188, set out as a note under
    section 414 of Title 26, Internal Revenue Code.

                     EFFECTIVE DATE OF 1990 AMENDMENT                 
      Amendment by Pub. L. 101-508 applicable to qualified transfers
    under section 420 of title 26 made after Nov. 5, 1990, see section
    12012(e) of Pub. L. 101-508, set out as a note under section 1021
    of this title.

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by section 7881(l)(5) of Pub. L. 101-239 effective,
    except as otherwise provided, as if included in the provision of
    the Pension Protection Act, Pub. L. 100-203, Secs. 9302-9346, to
    which such amendment relates, see section 7882 of Pub. L. 101-239,
    set out as a note under section 401 of Title 26, Internal Revenue
    Code.
      Amendment by section 7891(a) of Pub. L. 101-239 effective, except
    as otherwise provided, as if included in the provision of the Tax
    Reform Act of 1986, Pub. L. 99-514, to which such amendment
    relates, see section 7891(f) of Pub. L. 101-239, set out as a note
    under section 1002 of this title.
      Section 7894(e)(4)(B) of Pub. L. 101-239 provided that: "The
    amendments made by subparagraph (A) [amending this section] shall
    take effect as if originally included in section 491(b) of the
    Deficit Reduction Act of 1984 [Pub. L. 98-369]."

                     EFFECTIVE DATE OF 1986 AMENDMENT                 
      Amendment by section 1114(b)(15)(B) of Pub. L. 99-514 applicable
    to years beginning after Dec. 31, 1988, see section 1114(c)(3) of
    Pub. L. 99-514, set out as a note under section 414 of Title 26,
    Internal Revenue Code.
      Section 1898(i)(2) of Pub. L. 99-514 provided that: "The
    amendment made by paragraph (1) [amending this section] shall apply
    to transactions after the date of the enactment of this Act [Oct.
    22, 1986]."

                     EFFECTIVE DATE OF 1982 AMENDMENT                 
      Amendment by Pub. L. 97-354 applicable to taxable years beginning
    after Dec. 31, 1982, see section 6(a) of Pub. L. 97-354, set out as
    a note under section 1361 of Title 26, Internal Revenue Code.

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-364 effective Sept. 26, 1980, except as
    specifically provided, see section 1461(e) of this title.

                                REGULATIONS                            
      Pub. L. 109-280, title VI, Sec. 611(g)(3), Aug. 17, 2006, 120
    Stat. 975, provided that: "No later than 180 days after the date of
    the enactment of this Act [Aug. 17, 2006], the Secretary of Labor,
    after consultation with the Securities and Exchange Commission,
    shall issue regulations regarding the content of policies and
    procedures required to be adopted by an investment manager under
    section 408(b)(19) of the Employee Retirement Income Security Act
    of 1974 [29 U.S.C. 1108(b)(19)]."
      Secretary of the Treasury or his delegate to issue before Feb. 1,
    1988, final regulations to carry out amendments made by section
    1114 of Pub. L. 99-514, see section 1141 of Pub. L. 99-514, set out
    as a note under section 401 of Title 26, Internal Revenue Code.
      Secretary authorized, effective Sept. 2, 1974, to promulgate
    regulations wherever provisions of this part call for the
    promulgation of regulations, see sections 1031 and 1114 of this
    title.

    APPLICABILITY OF AMENDMENTS BY SUBTITLES A AND B OF TITLE I OF PUB.
                                L. 109-280
      For special rules on applicability of amendments by subtitles A
    (Secs. 101-107) and B (Secs. 111-116) of title I of Pub. L. 109-280
    to certain eligible cooperative plans, PBGC settlement plans, and
    eligible government contractor plans, see sections 104, 105, and
    106 of Pub. L. 109-280, set out as notes under section 401 of Title
    26, Internal Revenue Code.

          COORDINATION OF 2006 AMENDMENT WITH EXISTING EXEMPTIONS      
      Any exemption under subsec. (b) of this section provided by
    amendment by section 601(a)(1), (2) of Pub. L. 109-280 not to alter
    existing individual or class exemptions provided by statute or
    administrative action, see section 601(c) of Pub. L. 109-280, set
    out as a note under section 4975 of Title 26, Internal Revenue
    Code.

            PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989        
      For provisions directing that if any amendments made by subtitle
    A or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or
    title XVIII [Secs. 1800-1899A] of Pub. L. 99-514 require an
    amendment to any plan, such plan amendment shall not be required to
    be made before the first plan year beginning on or after Jan. 1,
    1989, see section 1140 of Pub. L. 99-514, as amended, set out as a
    note under section 401 of Title 26, Internal Revenue Code.

-FOOTNOTE-
    (!1) So in original. Probably should be "arm's-length".

    (!2) So in original. The word "of" probably should appear.


-End-



-CITE-
    29 USC Sec. 1109                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 4 - fiduciary responsibility

-HEAD-
    Sec. 1109. Liability for breach of fiduciary duty

-STATUTE-
      (a) Any person who is a fiduciary with respect to a plan who
    breaches any of the responsibilities, obligations, or duties
    imposed upon fiduciaries by this subchapter shall be personally
    liable to make good to such plan any losses to the plan resulting
    from each such breach, and to restore to such plan any profits of
    such fiduciary which have been made through use of assets of the
    plan by the fiduciary, and shall be subject to such other equitable
    or remedial relief as the court may deem appropriate, including
    removal of such fiduciary. A fiduciary may also be removed for a
    violation of section 1111 of this title.
      (b) No fiduciary shall be liable with respect to a breach of
    fiduciary duty under this subchapter if such breach was committed
    before he became a fiduciary or after he ceased to be a fiduciary.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 409, Sept. 2, 1974, 88 Stat. 886.)

-End-



-CITE-
    29 USC Sec. 1110                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 4 - fiduciary responsibility

-HEAD-
    Sec. 1110. Exculpatory provisions; insurance

-STATUTE-
      (a) Except as provided in sections 1105(b)(1) and 1105(d) of this
    title, any provision in an agreement or instrument which purports
    to relieve a fiduciary from responsibility or liability for any
    responsibility, obligation, or duty under this part shall be void
    as against public policy.
      (b) Nothing in this subpart (!1) shall preclude - 

        (1) a plan from purchasing insurance for its fiduciaries or for
      itself to cover liability or losses occurring by reason of the
      act or omission of a fiduciary, if such insurance permits
      recourse by the insurer against the fiduciary in the case of a
      breach of a fiduciary obligation by such fiduciary;
        (2) a fiduciary from purchasing insurance to cover liability
      under this part from and for his own account; or
        (3) an employer or an employee organization from purchasing
      insurance to cover potential liability of one or more persons who
      serve in a fiduciary capacity with regard to an employee benefit
      plan.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 410, Sept. 2, 1974, 88 Stat. 886.)

-FOOTNOTE-
    (!1) So in original. This part does not contain subparts.


-End-



-CITE-
    29 USC Sec. 1111                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 4 - fiduciary responsibility

-HEAD-
    Sec. 1111. Persons prohibited from holding certain positions

-STATUTE-
    (a) Conviction or imprisonment
      No person who has been convicted of, or has been imprisoned as a
    result of his conviction of, robbery, bribery, extortion,
    embezzlement, fraud, grand larceny, burglary, arson, a felony
    violation of Federal or State law involving substances defined in
    section 802(6) of title 21, murder, rape, kidnaping, perjury,
    assault with intent to kill, any crime described in section 80a-
    9(a)(1) of title 15, a violation of any provision of this chapter,
    a violation of section 186 of this title, a violation of chapter 63
    of title 18, a violation of section 874, 1027, 1503, 1505, 1506,
    1510, 1951, or 1954 of title 18, a violation of the Labor-
    Management Reporting and Disclosure Act of 1959 (29 U.S.C. 401),
    any felony involving abuse or misuse of such person's position or
    employment in a labor organization or employee benefit plan to seek
    or obtain an illegal gain at the expense of the members of the
    labor organization or the beneficiaries of the employee benefit
    plan, or conspiracy to commit any such crimes or attempt to commit
    any such crimes, or a crime in which any of the foregoing crimes is
    an element, shall serve or be permitted to serve - 
        (1) as an administrator, fiduciary, officer, trustee,
      custodian, counsel, agent, employee, or representative in any
      capacity of any employee benefit plan,
        (2) as a consultant or adviser to an employee benefit plan,
      including but not limited to any entity whose activities are in
      whole or substantial part devoted to providing goods or services
      to any employee benefit plan, or
        (3) in any capacity that involves decisionmaking authority or
      custody or control of the moneys, funds, assets, or property of
      any employee benefit plan,

    during or for the period of thirteen years after such conviction or
    after the end of such imprisonment, whichever is later, unless the
    sentencing court on the motion of the person convicted sets a
    lesser period of at least three years after such conviction or
    after the end of such imprisonment, whichever is later, or unless
    prior to the end of such period, in the case of a person so
    convicted or imprisoned (A) his citizenship rights, having been
    revoked as a result of such conviction, have been fully restored,
    or (B) if the offense is a Federal offense, the sentencing judge
    or, if the offense is a State or local offense, the United States
    district court for the district in which the offense was committed,
    pursuant to sentencing guidelines and policy statements under
    section 994(a) of title 28, determines that such person's service
    in any capacity referred to in paragraphs (1) through (3) would not
    be contrary to the purposes of this subchapter. Prior to making any
    such determination the court shall hold a hearing and shall give
    notice to (!1) such proceeding by certified mail to the Secretary
    of Labor and to State, county, and Federal prosecuting officials in
    the jurisdiction or jurisdictions in which such person was
    convicted. The court's determination in any such proceeding shall
    be final. No person shall knowingly hire, retain, employ, or
    otherwise place any other person to serve in any capacity in
    violation of this subsection. Notwithstanding the preceding
    provisions of this subsection, no corporation or partnership will
    be precluded from acting as an administrator, fiduciary, officer,
    trustee, custodian, counsel, agent, or employee of any employee
    benefit plan or as a consultant to any employee benefit plan
    without a notice, hearing, and determination by such court that
    such service would be inconsistent with the intention of this
    section.

    (b) Penalty
      Any person who intentionally violates this section shall be fined
    not more than $10,000 or imprisoned for not more than five years,
    or both.
    (c) Definitions
      For the purpose of this section - 
        (1) A person shall be deemed to have been "convicted" and under
      the disability of "conviction" from the date of the judgment of
      the trial court, regardless of whether that judgment remains
      under appeal.
        (2) The term "consultant" means any person who, for
      compensation, advises, or represents an employee benefit plan or
      who provides other assistance to such plan, concerning the
      establishment or operation of such plan.
        (3) A period of parole or supervised release shall not be
      considered as part of a period of imprisonment.
    (d) Salary of person barred from employee benefit plan office
      during appeal of conviction
      Whenever any person - 
        (1) by operation of this section, has been barred from office
      or other position in an employee benefit plan as a result of a
      conviction, and
        (2) has filed an appeal of that conviction,

    any salary which would be otherwise due such person by virtue of
    such office or position, shall be placed in escrow by the
    individual or organization responsible for payment of such salary.
    Payment of such salary into escrow shall continue for the duration
    of the appeal or for the period of time during which such salary
    would be otherwise due, whichever period is shorter. Upon the final
    reversal of such person's conviction on appeal, the amounts in
    escrow shall be paid to such person. Upon the final sustaining of
    that person's conviction on appeal, the amounts in escrow shall be
    returned to the individual or organization responsible for payments
    of those amounts. Upon final reversal of such person's conviction,
    such person shall no longer be barred by this statute (!2) from
    assuming any position from which such person was previously barred.


-SOURCE-
    (Pub. L. 93-406, title I, Sec. 411, Sept. 2, 1974, 88 Stat. 887;
    Pub. L. 98-473, title II, Secs. 229, 230, 802, Oct. 12, 1984, 98
    Stat. 2031, 2131; Pub. L. 100-182, Sec. 15(b), Dec. 7, 1987, 101
    Stat. 1269.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This chapter, referred to in subsec. (a), was in the original
    "this Act", meaning Pub. L. 93-406, known as the Employee
    Retirement Income Security Act of 1974. Titles I, III, and IV of
    such Act are classified principally to this chapter. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 1001 of this title and Tables.
      The Labor-Management Reporting and Disclosure Act of 1959,
    referred to in subsec. (a), is Pub. L. 86-257, Sept. 14, 1959, 73
    Stat. 519, as amended, which is classified principally to chapter
    11 (Sec. 401 et seq.) of this title. For complete classification of
    this Act to the Code, see Short Title note set out under section
    401 of this title, and Tables.


-MISC1-
                                AMENDMENTS                            
      1987 - Subsec. (a). Pub. L. 100-182, in concluding provisions,
    substituted "if the offense is a Federal offense, the sentencing
    judge or, if the offense is a State or local offense, the United
    States district court for the district in which the offense was
    committed, pursuant to sentencing guidelines and policy statements
    under section 994(a) of title 28," for "the United States Parole
    Commission", "court shall" for "Commission shall", "court's" for
    "Commission's", "such court" for "such Parole Commission", and "a
    hearing" for "an administrative hearing".
      1984 - Subsec. (a). Pub. L. 98-473, Sec. 229, which directed
    substitution of "if the offense is a Federal offense, the
    sentencing judge or, if the offense is a State or local offense, on
    motion of the United States Department of Justice, the district
    court of the United States for the district in which the offense
    was committed, pursuant to sentencing guidelines and policy
    statements issued pursuant to section 994(a) of title 28," for "the
    Board of Parole of the United States Justice Department", "court"
    and "court's" for "Board" and "Board's", respectively, and "a" for
    "an administrative", was (except for the last substitution)
    incapable of execution in view of the previous amendment by section
    802 of Pub. L. 98-473 which became effective prior to the effective
    date of the amendment by section 229. See note below.
      Pub. L. 98-473, Sec. 802(a), in amending provisions after "the
    Labor-Management Reporting and Disclosure Act of 1959 (29 U.S.C.
    401)," generally, inserted provisions relating to abuse or misuse
    of employment in a labor organization or employee benefit plan, in
    cl. (1) substituted "employee, or representative in any capacity"
    for "or employee", in cl. (2) substituted "consultant or adviser to
    an" for "consultant to any", added cl. (3), substituted "the period
    of thirteen years" for "five years", "unless the sentencing court
    on the motion of the person convicted sets a lesser period of at
    least three years after such conviction or after the end of such
    imprisonment, whichever is later, or unless prior to the end of
    such period," for "unless prior to the end of such five-year
    period,", in cl. (B) substituted "the United States Parole
    Commission" for "the Board of Parole of the United States
    Department of Justice" and "paragraphs (1) through (3)" for
    "paragraph (1) or (2)", and in provisions following cl. (B)
    substituted "Commission" and "Commission's" for "Board" and
    "Board's", respectively, inserted provision of notice to the
    Secretary of Labor, and substituted "hire, retain, employ, or
    otherwise place any other person to serve in any capacity" for
    "permit any other person to serve in any capacity referred to in
    paragraph (1) or (2)" and "Parole Commission" for "Board of
    Parole".
      Subsec. (b). Pub. L. 98-473, Sec. 802(b), substituted "five
    years" for "one year".
      Subsec. (c)(1). Pub. L. 98-473, Sec. 802(c), substituted ",
    regardless of whether that judgment remains under appeal" for "or
    the date of the final sustaining of such judgment on appeal,
    whichever is the later event".
      Subsec. (c)(3). Pub. L. 98-473, Sec. 230, inserted "or supervised
    release" after "parole".
      Subsec. (d). Pub. L. 98-473, Sec. 802(d), added subsec. (d).

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Amendment by Pub. L. 100-182 applicable with respect to offenses
    committed after Dec. 7, 1987, see section 26 of Pub. L. 100-182,
    set out as a note under section 3006A of Title 18, Crimes and
    Criminal Procedure.

                     EFFECTIVE DATE OF 1984 AMENDMENT                 
      Amendments by sections 229 and 230 of Pub. L. 98-473 effective
    Nov. 1, 1987, and applicable only to offenses committed after the
    taking effect of such amendments, see section 235(a)(1) of Pub. L.
    98-473, set out as an Effective Date note under section 3551 of
    Title 18, Crimes and Criminal Procedure.
      Amendment by section 802 of Pub. L. 98-473 effective with respect
    to any judgment of conviction entered by the trial court after Oct.
    12, 1984, except as otherwise provided, see section 804 of Pub. L.
    98-473, set out as a note under section 504 of this title.

-FOOTNOTE-
    (!1) So in original. Probably should be "of".

    (!2) So in original. Probably should be "section".


-End-



-CITE-
    29 USC Sec. 1112                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 4 - fiduciary responsibility

-HEAD-
    Sec. 1112. Bonding

-STATUTE-
    (a) Requisite bonding of plan officials
      Every fiduciary of an employee benefit plan and every person who
    handles funds or other property of such a plan (hereafter in this
    section referred to as "plan official") shall be bonded as provided
    in this section; except that - 
      (1) where such plan is one under which the only assets from which
    benefits are paid are the general assets of a union or of an
    employer, the administrator, officers, and employees of such plan
    shall be exempt from the bonding requirements of this section,
      (2) no bond shall be required of any entity which is registered
    as a broker or a dealer under section 78o(b) of title 15 if the
    broker or dealer is subject to the fidelity bond requirements of a
    self-regulatory organization (within the meaning of section
    78c(a)(26) of title 15).(!1)

      (3) no bond shall be required of a fiduciary (or of any director,
    officer, or employee of such fiduciary) if such fiduciary - 
        (A) is a corporation organized and doing business under the
      laws of the United States or of any State;
        (B) is authorized under such laws to exercise trust powers or
      to conduct an insurance business;
        (C) is subject to supervision or examination by Federal or
      State authority; and
        (D) has at all times a combined capital and surplus in excess
      of such a minimum amount as may be established by regulations
      issued by the Secretary, which amount shall be at least
      $1,000,000. Paragraph (2) shall apply to a bank or other
      financial institution which is authorized to exercise trust
      powers and the deposits of which are not insured by the Federal
      Deposit Insurance Corporation, only if such bank or institution
      meets bonding or similar requirements under State law which the
      Secretary determines are at least equivalent to those imposed on
      banks by Federal law.

    The amount of such bond shall be fixed at the beginning of each
    fiscal year of the plan. Such amount shall be not less than 10 per
    centum of the amount of funds handled. In no case shall such bond
    be less than $1,000 nor more than $500,000, except that the
    Secretary, after due notice and opportunity for hearing to all
    interested parties, and after consideration of the record, may
    prescribe an amount in excess of $500,000, subject to the 10 per
    centum limitation of the preceding sentence. For purposes of fixing
    the amount of such bond, the amount of funds handled shall be
    determined by the funds handled by the person, group, or class to
    be covered by such bond and by their predecessor or predecessors,
    if any, during the preceding reporting year, or if the plan has no
    preceding reporting year, the amount of funds to be handled during
    the current reporting year by such person, group, or class,
    estimated as provided in regulations of the Secretary. Such bond
    shall provide protection to the plan against loss by reason of acts
    of fraud or dishonesty on the part of the plan official, directly
    or through connivance with others. Any bond shall have as surety
    thereon a corporate surety company which is an acceptable surety on
    Federal bonds under authority granted by the Secretary of the
    Treasury pursuant to sections 9304-9308 of title 31. Any bond shall
    be in a form or of a type approved by the Secretary, including
    individual bonds or schedule or blanket forms of bonds which cover
    a group or class.
    (b) Unlawful acts
      It shall be unlawful for any plan official to whom subsection (a)
    of this section applies, to receive, handle, disburse, or otherwise
    exercise custody or control of any of the funds or other property
    of any employee benefit plan, without being bonded as required by
    subsection (a) of this section and it shall be unlawful for any
    plan official of such plan, or any other person having authority to
    direct the performance of such functions, to permit such functions,
    or any of them, to be performed by any plan official, with respect
    to whom the requirements of subsection (a) of this section have not
    been met.
    (c) Conflict of interest prohibited in procuring bonds
      It shall be unlawful for any person to procure any bond required
    by subsection (a) of this section from any surety or other company
    or through any agent or broker in whose business operations such
    plan or any party in interest in such plan has any control or
    significant financial interest, direct or indirect.
    (d) Exclusiveness of statutory basis for bonding requirement for
      persons handling funds or other property of employee benefit
      plans
      Nothing in any other provision of law shall require any person,
    required to be bonded as provided in subsection (a) of this section
    because he handles funds or other property of an employee benefit
    plan, to be bonded insofar as the handling by such person of the
    funds or other property of such plan is concerned.
    (e) Regulations
      The Secretary shall prescribe such regulations as may be
    necessary to carry out the provisions of this section including
    exempting a plan from the requirements of this section where he
    finds that (1) other bonding arrangements or (2) the overall
    financial condition of the plan would be adequate to protect the
    interests of the beneficiaries and participants. When, in the
    opinion of the Secretary, the administrator of a plan offers
    adequate evidence of the financial responsibility of the plan, or
    that other bonding arrangements would provide adequate protection
    of the beneficiaries and participants, he may exempt such plan from
    the requirements of this section.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 412, Sept. 2, 1974, 88 Stat. 888;
    Pub. L. 109-280, title VI, Secs. 611(b), 622(a), Aug. 17, 2006, 120
    Stat. 968, 979.)


-STATAMEND-
                        AMENDMENT OF SUBSECTION (A)                    
      Pub. L. 109-280, title VI, Sec. 622, Aug. 17, 2006, 120 Stat.
    979, provided that, applicable to plan years beginning after Dec.
    31, 2007, subsection (a) of this section is amended by inserting at
    the end "In the case of a plan that holds employer securities
    (within the meaning of section 1107(d)(1) of this title), this
    subsection shall be applied by substituting '$1,000,000' for
    '$500,000' each place it appears."

-COD-
                               CODIFICATION                           
      In subsec. (a), "sections 9304-9308 of title 31" substituted for
    "sections 6 through 13 of title 6, United States Code" on authority
    of Pub. L. 97-258, Sec. 4(b), Sept. 13, 1982, 96 Stat. 1067, the
    first section of which enacted Title 31, Money and Finance.


-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (a)(2), (3). Pub. L. 109-280, Sec. 611(b), added
    par. (2) and redesignated former par. (2) as (3).

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Amendment by section 611(b) of Pub. L. 109-280 applicable to plan
    years beginning after Aug. 17, 2006, see section 611(h)(2) of Pub.
    L. 109-280, set out as a note under section 4975 of Title 26,
    Internal Revenue Code.
      Pub. L. 109-280, title VI, Sec. 622(b), Aug. 17, 2006, 120 Stat.
    979, provided that: "The amendment made by this section [amending
    this section] shall apply to plan years beginning after December
    31, 2007."

                                REGULATIONS                            
      Secretary authorized, effective Sept. 2, 1974, to promulgate
    regulations wherever provisions of this part call for the
    promulgation of regulations, see sections 1031 and 1114 of this
    title.

-FOOTNOTE-               

    (!1) So in original. The period probably should be ", and".


-End-



-CITE-
    29 USC Sec. 1113                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 4 - fiduciary responsibility

-HEAD-
    Sec. 1113. Limitation of actions

-STATUTE-
      No action may be commenced under this subchapter with respect to
    a fiduciary's breach of any responsibility, duty, or obligation
    under this part, or with respect to a violation of this part, after
    the earlier of - 
        (1) six years after (A) the date of the last action which
      constituted a part of the breach or violation, or (B) in the case
      of an omission the latest date on which the fiduciary could have
      cured the breach or violation, or
        (2) three years after the earliest date on which the plaintiff
      had actual knowledge of the breach or violation;

    except that in the case of fraud or concealment, such action may be
    commenced not later than six years after the date of discovery of
    such breach or violation.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 413, Sept. 2, 1974, 88 Stat. 889;
    Pub. L. 100-203, title IX, Sec. 9342(b), Dec. 22, 1987, 101 Stat.
    1330-371; Pub. L. 101-239, title VII, Secs. 7881(j)(4), 7894(e)(5),
    Dec. 19, 1989, 103 Stat. 2443, 2450.)


-MISC1-
                                AMENDMENTS                            
      1989 - Pub. L. 101-239, Sec. 7894(e)(5), struck out "(a)" before
    "No action".
      Par. (2). Pub. L. 101-239, Sec. 7881(j)(4), struck out comma
    after "violation".
      1987 - Subsec. (a)(2). Pub. L. 100-203 struck out "(A)" after
    "date" and struck out "or (B) on which a report from which he could
    reasonably be expected to have obtained knowledge of such breach or
    violation was filed with the Secretary under this subchapter".

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by section 7881(j)(4) of Pub. L. 101-239 effective,
    except as otherwise provided, as if included in the provision of
    the Pension Protection Act, Pub. L. 100-203, Secs. 9302-9346, to
    which such amendment relates, see section 7882 of Pub. L. 101-239,
    set out as a note under section 401 of Title 26, Internal Revenue
    Code.
      Amendment by section 7894(e)(5) of Pub. L. 101-239 effective,
    except as otherwise provided, as if originally included in the
    provision of the Employee Retirement Income Security Act of 1974,
    Pub. L. 93-406, to which such amendment relates, see section
    7894(i) of Pub. L. 101-239, set out as a note under section 1002 of
    this title.

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Amendment by Pub. L. 100-203 applicable with respect to reports
    required to be filed after Dec. 31, 1987, see section 9342(d)(1) of
    Pub. L. 100-203, set out as a note under section 1132 of this
    title.

-End-



-CITE-
    29 USC Sec. 1114                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 4 - fiduciary responsibility

-HEAD-
    Sec. 1114. Effective date

-STATUTE-
      (a) Except as provided in subsections (b), (c), and (d) of this
    section, this part shall take effect on January 1, 1975.
      (b)(1) The provisions of this part authorizing the Secretary to
    promulgate regulations shall take effect on September 2, 1974.
      (2) Upon application of a plan, the Secretary may postpone until
    not later than January 1, 1976, the applicability of any provision
    of sections 1102, 1103 (other than 1103(c)), 1105 (other than
    1105(a) and (d)), and 1110(a) of this title, as it applies to any
    plan in existence on September 2, 1974, if he determines such
    postponement is (A) necessary to amend the instrument establishing
    the plan under which the plan is maintained and (B) not adverse to
    the interest of participants and beneficiaries.
      (3) This part shall take effect on September 2, 1974, with
    respect to a plan which terminates after June 30, 1974, and before
    January 1, 1975, and to which at the time of termination section
    1321 of this title applies.
      (c) Sections 1106 and 1107(a) of this title (relating to
    prohibited transactions) shall not apply - 
        (1) until June 30, 1984, to a loan of money or other extension
      of credit between a plan and a party in interest under a binding
      contract in effect on July 1, 1974 (or pursuant to renewals of
      such a contract), if such loan or other extension of credit
      remains at least as favorable to the plan as an arm's-length
      transaction with an unrelated party would be, and if the
      execution of the contract, the making of the loan, or the
      extension of credit was not, at the time of such execution,
      making, or extension, a prohibited transaction (within the
      meaning of section 503(b) of title 26 or the corresponding
      provisions of prior law);
        (2) until June 30, 1984, to a lease or joint use of property
      involving the plan and a party in interest pursuant to a binding
      contract in effect on July 1, 1974 (or pursuant to renewals of
      such a contract), if such lease or joint use remains at least as
      favorable to the plan as an arm's-length transaction with an
      unrelated party would be and if the execution of the contract was
      not, at the time of such execution, a prohibited transaction
      (within the meaning of section 503(b) of title 26 or the
      corresponding provisions of prior law);
        (3) until June 30, 1984, to the sale, exchange or other
      disposition of property described in paragraph (2) between a plan
      and a party in interest if - 
          (A) in the case of a sale, exchange, or other disposition of
        the property by the plan to the party in interest, the plan
        receives an amount which is not less than the fair market value
        of the property at the time of such disposition; and
          (B) in the case of the acquisition of the property by the
        plan, the plan pays an amount which is not in excess of the
        fair market value of the property at the time of such
        acquisition;

        (4) until June 30, 1977, to the provision of services, to which
      paragraphs (1), (2), and (3) do not apply between a plan and a
      party in interest - 
          (A) under a binding contract in effect on July 1, 1974 (or
        pursuant to renewals of such contract), or
          (B) if the party in interest ordinarily and customarily
        furnished such services on June 30, 1974, if such provision of
        services remains at least as favorable to the plan as an arm's-
        length transaction with an unrelated party would be and if
        such provision of services was not, at the time of such
        provision, a prohibited transaction (within the meaning of
        section 503(b) of title 26) or the corresponding provisions of
        prior law; or

        (5) the sale, exchange, or other disposition of property which
      is owned by a plan on June 30, 1974, and all times thereafter, to
      a party in interest, if such plan is required to dispose of such
      property in order to comply with the provisions of section
      1107(a) of this title (relating to the prohibition against
      holding excess employer securities and employer real property),
      and if the plan receives not less than adequate consideration.

      (d) Any election, or failure to elect, by a disqualified person
    under section 2003(c)(1)(B) of this Act shall be treated for
    purposes of this part (but not for purposes of section 1144 of this
    title) as an act or omission occurring before the effective date of
    this part.
      (e) The preceding provisions of this section shall not apply with
    respect to amendments made to this part in provisions enacted after
    September 2, 1974.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 414, Sept. 2, 1974, 88 Stat. 889;
    Pub. L. 101-239, title VII, Sec. 7894(e)(6), (h)(4), Dec. 19, 1989,
    103 Stat. 2450, 2451.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 2003(c)(1)(B) of this Act, referred to in subsec. (d), is
    section 2003(c)(1)(B) of Pub. L. 93-406, which is set out as an
    Effective Date; Savings Provisions note under section 4975 of Title
    26, Internal Revenue Code.


-MISC1-
                                AMENDMENTS                            
      1989 - Subsec. (c)(2). Pub. L. 101-239, Sec. 7894(e)(6),
    substituted "Internal Revenue Code of 1986" for "Internal Revenue
    Code of 1954", which for purposes of codification was translated as
    "title 26" thus requiring no change in text, and substituted "or
    the corresponding provisions of prior law)" for ") or the
    corresponding provisions of prior law".
      Subsec. (e). Pub. L. 101-239, Sec. 7894(h)(4), added subsec. (e).

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by Pub. L. 101-239 effective, except as otherwise
    provided, as if originally included in the provision of the
    Employee Retirement Income Security Act of 1974, Pub. L. 93-406, to
    which such amendment relates, see section 7894(i) of Pub. L. 101-
    239, set out as a note under section 1002 of this title.

-End-


-CITE-
    29 USC part 5 - administration and enforcement              01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 5 - administration and enforcement

-HEAD-
                  PART 5 - ADMINISTRATION AND ENFORCEMENT              

-End-



-CITE-
    29 USC Sec. 1131                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 5 - administration and enforcement

-HEAD-
    Sec. 1131. Criminal penalties

-STATUTE-
      Any person who willfully violates any provision of part 1 of this
    subtitle, or any regulation or order issued under any such
    provision, shall upon conviction be fined not more than $100,000 or
    imprisoned not more than 10 years, or both; except that in the case
    of such violation by a person not an individual, the fine imposed
    upon such person shall be a fine not exceeding $500,000.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 501, Sept. 2, 1974, 88 Stat. 891;
    Pub. L. 107-204, title IX, Sec. 904, July 30, 2002, 116 Stat. 805.)


-MISC1-
                                AMENDMENTS                            
      2002 - Pub. L. 107-204 substituted "$100,000" for "$5,000", "10
    years" for "one year", and "$500,000" for "$100,000".

                                REGULATIONS                            
      Secretary authorized, effective Sept. 2, 1974, to promulgate
    regulations wherever provisions of this subchapter call for the
    promulgation of regulations, see section 1031 of this title.

-End-



-CITE-
    29 USC Sec. 1132                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 5 - administration and enforcement

-HEAD-
    Sec. 1132. Civil enforcement

-STATUTE-
    (a) Persons empowered to bring a civil action
      A civil action may be brought - 
        (1) by a participant or beneficiary - 
          (A) for the relief provided for in subsection (c) of this
        section, or
          (B) to recover benefits due to him under the terms of his
        plan, to enforce his rights under the terms of the plan, or to
        clarify his rights to future benefits under the terms of the
        plan;

        (2) by the Secretary, or by a participant, beneficiary or
      fiduciary for appropriate relief under section 1109 of this
      title;
        (3) by a participant, beneficiary, or fiduciary (A) to enjoin
      any act or practice which violates any provision of this
      subchapter or the terms of the plan, or (B) to obtain other
      appropriate equitable relief (i) to redress such violations or
      (ii) to enforce any provisions of this subchapter or the terms of
      the plan;
        (4) by the Secretary, or by a participant, or beneficiary for
      appropriate relief in the case of a violation of 1025(c) of this
      title;
        (5) except as otherwise provided in subsection (b) of this
      section, by the Secretary (A) to enjoin any act or practice which
      violates any provision of this subchapter, or (B) to obtain other
      appropriate equitable relief (i) to redress such violation or
      (ii) to enforce any provision of this subchapter;
        (6) by the Secretary to collect any civil penalty under
      paragraph (2), (4), (5), (6), or (7) of subsection (c) of this
      section or under subsection (i) or (l) of this section;
        (7) by a State to enforce compliance with a qualified medical
      child support order (as defined in section 1169(a)(2)(A) of this
      title);
        (8) by the Secretary, or by an employer or other person
      referred to in section 1021(f)(1) of this title, (A) to enjoin
      any act or practice which violates subsection (f) of section 1021
      of this title, or (B) to obtain appropriate equitable relief (i)
      to redress such violation or (ii) to enforce such subsection; or
        (9) in the event that the purchase of an insurance contract or
      insurance annuity in connection with termination of an
      individual's status as a participant covered under a pension plan
      with respect to all or any portion of the participant's pension
      benefit under such plan constitutes a violation of part 4 of this
      title (!1) or the terms of the plan, by the Secretary, by any
      individual who was a participant or beneficiary at the time of
      the alleged violation, or by a fiduciary, to obtain appropriate
      relief, including the posting of security if necessary, to assure
      receipt by the participant or beneficiary of the amounts provided
      or to be provided by such insurance contract or annuity, plus
      reasonable prejudgment interest on such amounts.

    (b) Plans qualified under Internal Revenue Code; maintenance of
      actions involving delinquent contributions
      (1) In the case of a plan which is qualified under section
    401(a), 403(a), or 405(a) (!2) of title 26 (or with respect to
    which an application to so qualify has been filed and has not been
    finally determined) the Secretary may exercise his authority under
    subsection (a)(5) of this section with respect to a violation of,
    or the enforcement of, parts 2 and 3 of this subtitle (relating to
    participation, vesting, and funding), only if - 

        (A) requested by the Secretary of the Treasury, or
        (B) one or more participants, beneficiaries, or fiduciaries, of
      such plan request in writing (in such manner as the Secretary
      shall prescribe by regulation) that he exercise such authority on
      their behalf. In the case of such a request under this paragraph
      he may exercise such authority only if he determines that such
      violation affects, or such enforcement is necessary to protect,
      claims of participants or beneficiaries to benefits under the
      plan.

      (2) The Secretary shall not initiate an action to enforce section
    1145 of this title.
      (3) The Secretary is not authorized to enforce under this part
    any requirement of part 7 against a health insurance issuer
    offering health insurance coverage in connection with a group
    health plan (as defined in section 1191b(a)(1) of this title).
    Nothing in this paragraph shall affect the authority of the
    Secretary to issue regulations to carry out such part.
    (c) Administrator's refusal to supply requested information;
      penalty for failure to provide annual report in complete form
      (1) Any administrator (A) who fails to meet the requirements of
    paragraph (1) or (4) of section 1166 (!2) of this title, section
    1021(e)(1) of this title, section 1021(f) of this title, or section
    1025(a) of this title with respect to a participant or beneficiary,
    or (B) who fails or refuses to comply with a request for any
    information which such administrator is required by this subchapter
    to furnish to a participant or beneficiary (unless such failure or
    refusal results from matters reasonably beyond the control of the
    administrator) by mailing the material requested to the last known
    address of the requesting participant or beneficiary within 30 days
    after such request may in the court's discretion be personally
    liable to such participant or beneficiary in the amount of up to
    $100 a day from the date of such failure or refusal, and the court
    may in its discretion order such other relief as it deems proper.
    For purposes of this paragraph, each violation described in
    subparagraph (A) with respect to any single participant, and each
    violation described in subparagraph (B) with respect to any single
    participant or beneficiary, shall be treated as a separate
    violation.
      (2) The Secretary may assess a civil penalty against any plan
    administrator of up to $1,000 a day from the date of such plan
    administrator's failure or refusal to file the annual report
    required to be filed with the Secretary under section 1021(b)(4)
    (!2) of this title. For purposes of this paragraph, an annual
    report that has been rejected under section 1024(a)(4) of this
    title for failure to provide material information shall not be
    treated as having been filed with the Secretary.
      (3) Any employer maintaining a plan who fails to meet the notice
    requirement of section 1021(d) of this title with respect to any
    participant or beneficiary or who fails to meet the requirements of
    section 1021(e)(2) of this title with respect to any person or who
    fails to meet the requirements of section 1082(d)(12)(E) of this
    title with respect to any person may in the court's discretion be
    liable to such participant or beneficiary or to such person in the
    amount of up to $100 a day from the date of such failure, and the
    court may in its discretion order such other relief as it deems
    proper.
      (4) The Secretary may assess a civil penalty of not more than
    $1,000 a day for each violation by any person of section
    1082(b)(7)(F)(vi) of this title.
      (5) The Secretary may assess a civil penalty against any person
    of up to $1,000 a day from the date of the person's failure or
    refusal to file the information required to be filed by such person
    with the Secretary under regulations prescribed pursuant to section
    1021(g) of this title.
      (6) If, within 30 days of a request by the Secretary to a plan
    administrator for documents under section 1024(a)(6) of this title,
    the plan administrator fails to furnish the material requested to
    the Secretary, the Secretary may assess a civil penalty against the
    plan administrator of up to $100 a day from the date of such
    failure (but in no event in excess of $1,000 per request). No
    penalty shall be imposed under this paragraph for any failure
    resulting from matters reasonably beyond the control of the plan
    administrator.
      (7) The Secretary may assess a civil penalty against a plan
    administrator of up to $100 a day from the date of the plan
    administrator's failure or refusal to provide notice to
    participants and beneficiaries in accordance with subsection (i) or
    (m) of section 1021 of this title. For purposes of this paragraph,
    each violation with respect to any single participant or
    beneficiary shall be treated as a separate violation.
      (8) The Secretary and the Secretary of Health and Human Services
    shall maintain such ongoing consultation as may be necessary and
    appropriate to coordinate enforcement under this subsection with
    enforcement under section 1320b-14(c)(8) (!2) of title 42.
    (d) Status of employee benefit plan as entity
      (1) An employee benefit plan may sue or be sued under this
    subchapter as an entity. Service of summons, subpena, or other
    legal process of a court upon a trustee or an administrator of an
    employee benefit plan in his capacity as such shall constitute
    service upon the employee benefit plan. In a case where a plan has
    not designated in the summary plan description of the plan an
    individual as agent for the service of legal process, service upon
    the Secretary shall constitute such service. The Secretary, not
    later than 15 days after receipt of service under the preceding
    sentence, shall notify the administrator or any trustee of the plan
    of receipt of such service.
      (2) Any money judgment under this subchapter against an employee
    benefit plan shall be enforceable only against the plan as an
    entity and shall not be enforceable against any other person unless
    liability against such person is established in his individual
    capacity under this subchapter.
    (e) Jurisdiction
      (1) Except for actions under subsection (a)(1)(B) of this
    section, the district courts of the United States shall have
    exclusive jurisdiction of civil actions under this subchapter
    brought by the Secretary or by a participant, beneficiary,
    fiduciary, or any person referred to in section 1021(f)(1) of this
    title. State courts of competent jurisdiction and district courts
    of the United States shall have concurrent jurisdiction of actions
    under paragraphs (1)(B) and (7) of subsection (a) of this section.
      (2) Where an action under this subchapter is brought in a
    district court of the United States, it may be brought in the
    district where the plan is administered, where the breach took
    place, or where a defendant resides or may be found, and process
    may be served in any other district where a defendant resides or
    may be found.
    (f) Amount in controversy; citizenship of parties
      The district courts of the United States shall have jurisdiction,
    without respect to the amount in controversy or the citizenship of
    the parties, to grant the relief provided for in subsection (a) of
    this section in any action.
    (g) Attorney's fees and costs; awards in actions involving
      delinquent contributions
      (1) In any action under this subchapter (other than an action
    described in paragraph (2)) by a participant, beneficiary, or
    fiduciary, the court in its discretion may allow a reasonable
    attorney's fee and costs of action to either party.
      (2) In any action under this subchapter by a fiduciary for or on
    behalf of a plan to enforce section 1145 of this title in which a
    judgment in favor of the plan is awarded, the court shall award the
    plan - 
        (A) the unpaid contributions,
        (B) interest on the unpaid contributions,
        (C) an amount equal to the greater of - 
          (i) interest on the unpaid contributions, or
          (ii) liquidated damages provided for under the plan in an
        amount not in excess of 20 percent (or such higher percentage
        as may be permitted under Federal or State law) of the amount
        determined by the court under subparagraph (A),

        (D) reasonable attorney's fees and costs of the action, to be
      paid by the defendant, and
        (E) such other legal or equitable relief as the court deems
      appropriate.

    For purposes of this paragraph, interest on unpaid contributions
    shall be determined by using the rate provided under the plan, or,
    if none, the rate prescribed under section 6621 of title 26.
    (h) Service upon Secretary of Labor and Secretary of the Treasury
      A copy of the complaint in any action under this subchapter by a
    participant, beneficiary, or fiduciary (other than an action
    brought by one or more participants or beneficiaries under
    subsection (a)(1)(B) of this section which is solely for the
    purpose of recovering benefits due such participants under the
    terms of the plan) shall be served upon the Secretary and the
    Secretary of the Treasury by certified mail. Either Secretary shall
    have the right in his discretion to intervene in any action, except
    that the Secretary of the Treasury may not intervene in any action
    under part 4 of this subtitle. If the Secretary brings an action
    under subsection (a) of this section on behalf of a participant or
    beneficiary, he shall notify the Secretary of the Treasury.
    (i) Administrative assessment of civil penalty
      In the case of a transaction prohibited by section 1106 of this
    title by a party in interest with respect to a plan to which this
    part applies, the Secretary may assess a civil penalty against such
    party in interest. The amount of such penalty may not exceed 5
    percent of the amount involved in each such transaction (as defined
    in section 4975(f)(4) of title 26) for each year or part thereof
    during which the prohibited transaction continues, except that, if
    the transaction is not corrected (in such manner as the Secretary
    shall prescribe in regulations which shall be consistent with
    section 4975(f)(5) of title 26) within 90 days after notice from
    the Secretary (or such longer period as the Secretary may permit),
    such penalty may be in an amount not more than 100 percent of the
    amount involved. This subsection shall not apply to a transaction
    with respect to a plan described in section 4975(e)(1) of title 26.
    (j) Direction and control of litigation by Attorney General
      In all civil actions under this subchapter, attorneys appointed
    by the Secretary may represent the Secretary (except as provided in
    section 518(a) of title 28), but all such litigation shall be
    subject to the direction and control of the Attorney General.
    (k) Jurisdiction of actions against the Secretary of Labor
      Suits by an administrator, fiduciary, participant, or beneficiary
    of an employee benefit plan to review a final order of the
    Secretary, to restrain the Secretary from taking any action
    contrary to the provisions of this chapter, or to compel him to
    take action required under this subchapter, may be brought in the
    district court of the United States for the district where the plan
    has its principal office, or in the United States District Court
    for the District of Columbia.
    (l) Civil penalties on violations by fiduciaries
      (1) In the case of - 
        (A) any breach of fiduciary responsibility under (or other
      violation of) part 4 of this subtitle by a fiduciary, or
        (B) any knowing participation in such a breach or violation by
      any other person,

    the Secretary shall assess a civil penalty against such fiduciary
    or other person in an amount equal to 20 percent of the applicable
    recovery amount.
      (2) For purposes of paragraph (1), the term "applicable recovery
    amount" means any amount which is recovered from a fiduciary or
    other person with respect to a breach or violation described in
    paragraph (1) - 
        (A) pursuant to any settlement agreement with the Secretary, or
        (B) ordered by a court to be paid by such fiduciary or other
      person to a plan or its participants and beneficiaries in a
      judicial proceeding instituted by the Secretary under subsection
      (a)(2) or (a)(5) of this section.

      (3) The Secretary may, in the Secretary's sole discretion, waive
    or reduce the penalty under paragraph (1) if the Secretary
    determines in writing that - 
        (A) the fiduciary or other person acted reasonably and in good
      faith, or
        (B) it is reasonable to expect that the fiduciary or other
      person will not be able to restore all losses to the plan (or to
      provide the relief ordered pursuant to subsection (a)(9) of this
      section) without severe financial hardship unless such waiver or
      reduction is granted.

      (4) The penalty imposed on a fiduciary or other person under this
    subsection with respect to any transaction shall be reduced by the
    amount of any penalty or tax imposed on such fiduciary or other
    person with respect to such transaction under subsection (i) of
    this section and section 4975 of title 26.
    (m) Penalty for improper distribution
      In the case of a distribution to a pension plan participant or
    beneficiary in violation of section 1056(e) of this title by a plan
    fiduciary, the Secretary shall assess a penalty against such
    fiduciary in an amount equal to the value of the distribution. Such
    penalty shall not exceed $10,000 for each such distribution.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 502, Sept. 2, 1974, 88 Stat. 891;
    Pub. L. 96-364, title III, Sec. 306(b), Sept. 26, 1980, 94 Stat.
    1295; Pub. L. 99-272, title X, Sec. 10002(b), Apr. 7, 1986, 100
    Stat. 231; Pub. L. 100-203, title IX, Secs. 9342(c), 9344, Dec. 22,
    1987, 101 Stat. 1330-372, 1330-373; Pub. L. 101-239, title II, Sec.
    2101(a), (b), title VII, Secs. 7881(b)(5)(B), (j)(2), (3),
    7891(a)(1), 7894(f)(1), Dec. 19, 1989, 103 Stat. 2123, 2438, 2442,
    2445, 2450; Pub. L. 101-508, title XII, Sec. 12012(d)(2), Nov. 5,
    1990, 104 Stat. 1388-573; Pub. L. 103-66, title IV, Sec. 4301(c)(1)-
    (3), Aug. 10, 1993, 107 Stat. 376; Pub. L. 103-401, Secs. 2, 3,
    Oct. 22, 1994, 108 Stat. 4172; Pub. L. 103-465, title VII, Sec.
    761(a)(9)(B)(ii), Dec. 8, 1994, 108 Stat. 5033; Pub. L. 104-191,
    title I, Sec. 101(b), (e)(2), Aug. 21, 1996, 110 Stat. 1951, 1952;
    Pub. L. 104-204, title VI, Sec. 603(b)(3)(E), Sept. 26, 1996, 110
    Stat. 2938; Pub. L. 105-34, title XV, Sec. 1503(c)(2)(B), (d)(7),
    Aug. 5, 1997, 111 Stat. 1062; Pub. L. 107-204, title III, Sec.
    306(b)(3), July 30, 2002, 116 Stat. 783; Pub. L. 108-218, title I,
    Secs. 102(d), 103(b), 104(a)(2), Apr. 10, 2004, 118 Stat. 602, 603,
    606; Pub. L. 109-280, title I, Sec. 103(b)(2), title II, Sec.
    202(b), (c), title V, Secs. 502(a)(2), (b)(2), 507(b),
    508(a)(2)(C), title IX, Sec. 902(f)(2), Aug. 17, 2006, 120 Stat.
    816, 884, 885, 940, 941, 949, 951, 1039.)


-STATAMEND-
                           AMENDMENT OF SECTION                       
      For termination of amendment by section 221(c) of Pub. L. 109-
    280, see Effective and Termination Dates of 2006 Amendment note
    below.
      Pub. L. 109-280, title II, Sec. 202(b), (c), (f), Aug. 17, 2006,
    120 Stat. 884, 885, provided that, applicable with respect to plan
    years beginning after 2007, with special rules for certain notices
    and certain restored benefits, this section is amended as follows:
      (1) in subsection (a)(6), by substituting "(6), (7), or (8)" for
    "(6), or (7)";
      (2) in subsection (a), by striking out "or" at the end of
    paragraph (8), by substituting "; or" for the period at the end of
    paragraph (9), and by adding paragraph (10) at the end to read as
    follows:
        "(10) in the case of a multiemployer plan that has been
      certified by the actuary to be in endangered or critical status
      under section 1085 of this title, if the plan sponsor - 
          "(A) has not adopted a funding improvement or rehabilitation
        plan under that section by the deadline established in such
        section, or
          "(B) fails to update or comply with the terms of the funding
        improvement or rehabilitation plan in accordance with the
        requirements of such section,

      by an employer that has an obligation to contribute with respect
      to the multiemployer plan or an employee organization that
      represents active participants in the multiemployer plan, for an
      order compelling the plan sponsor to adopt a funding improvement
      or rehabilitation plan or to update or comply with the terms of
      the funding improvement or rehabilitation plan in accordance with
      the requirements of such section and the funding improvement or
      rehabilitation plan."; and
      (3) in subsection (c), by redesignating paragraph (8) as (9) and
    adding a new paragraph (8) to read as follows:
      (8) The Secretary may assess against any plan sponsor of a
    multiemployer plan a civil penalty of not more than $1,100 per day -
     
        (A) for each violation by such sponsor of the requirement under
      section 1085 of this title to adopt by the deadline established
      in that section a funding improvement plan or rehabilitation plan
      with respect to a multiemployer which is in endangered or
      critical status, or
        (B) in the case of a plan in endangered status which is not in
      seriously endangered status, for failure by the plan to meet the
      applicable benchmarks under section 1085 of this title by the end
      of the funding improvement period with respect to the plan.
      Pub. L. 109-280, title I, Sec. 103(b)(2), (c), Aug. 17, 2006, 120
    Stat. 816, provided that, applicable to plan years beginning after
    Dec. 31, 2007, with collective bargaining exception, subsection
    (c)(4) of this section is amended by substituting "section 1021(j)
    or 1082(b)(7)(F)(iv) of this title" for "section 1082(b)(7)(F)(iv)
    of this title".
      Pub. L. 109-280, title V, Sec. 502(a)(2), (b)(2), (d), Aug. 17,
    2006, 120 Stat. 940, 941, provided that, applicable to plan years
    beginning after Dec. 31, 2007, subsection (c)(4) of this section is
    amended by substituting "subsection (j) or (k) of section 1021" for
    "section 1021(j)" and "subsection (j), (k), or (l) of section 1021"
    for "section 1021(j) or (k)".
      Pub. L. 109-280, title IX, Sec. 902(f)(2), (g), Aug. 17, 2006,
    120 Stat. 1039, provided that, effective Aug. 17, 2006, subsection
    (c)(4) of this section is amended by substituting ", section
    1082(b)(7)(F)(vi) of this title, or section 1144(e)(3) of this
    title" for "or section 1082(b)(7)(F)(vi) of this title".

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 405(a) of title 26, referred to in subsec. (b)(1), was
    repealed by Pub. L. 98-369, div. A, title IV, Sec. 491(a), July 18,
    1984, 98 Stat. 848.
      Paragraphs (1) and (4) of section 1166 of this title, referred to
    in subsec. (c)(1), were redesignated as pars. (1) and (4) of
    section 1166(a) of this title by Pub. L. 101-239, title VII, Sec.
    7891(d)(1)(A)(ii)(I), Dec. 19, 1989, 103 Stat. 2445.
      Section 1021(b)(4) of this title, referred to in subsec. (c)(2),
    was redesignated section 1021(b)(1) of this title by Pub. L. 105-
    34, title XV, Sec. 1503(a), Aug. 5, 1997, 111 Stat. 1061.
      Section 1320b-14 of title 42, referred to in subsec. (c)(8), was
    repealed by Pub. L. 104-226, Sec. 1(a), Oct. 2, 1996, 110 Stat.
    3033, and a new section 1320b-14 of title 42, which does not
    contain a subsec. (c)(8), was enacted by Pub. L. 106-554, Sec.
    1(a)(6) [title IX, Sec. 911(a)(1)], Dec. 21, 2000, 114 Stat. 2763,
    2763A-583.
      This chapter, referred to in subsec. (k), was in the original
    "this Act", meaning Pub. L. 93-406, known as the Employee
    Retirement Income Security Act of 1974. Titles I, III, and IV of
    such Act are classified principally to this chapter. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 1001 of this title and Tables.

-COD-
                               CODIFICATION                           
      Another section 306(b)(3) of Pub. L. 107-204 is classified to
    section 7244(b)(3) of Title 15, Commerce and Trade.


-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (c)(1). Pub. L. 109-280, Sec. 508(a)(2)(C),
    substituted "section 1021(f) of this title, or section 1025(a) of
    this title" for "or section 1021(f) of this title".
      Subsec. (c)(7). Pub. L. 109-280, Sec. 507(b), substituted
    "subsection (i) or (m) of section 1021" for "section 1021(i)".
      2004 - Subsec. (c)(1). Pub. L. 108-218, Sec. 103(b), substituted
    ", section 1021(e)(1) of this title, or section 1021(f) of this
    title" for "or section 1021(e)(1) of this title".
      Subsec. (c)(3). Pub. L. 108-218, Sec. 102(d), inserted "or who
    fails to meet the requirements of section 1082(d)(12)(E) of this
    title with respect to any person" after "1021(e)(2) of this title
    with respect to any person".
      Subsec. (c)(4). Pub. L. 108-218, Sec. 104(a)(2), amended par. (4)
    generally. Prior to amendment, par. (4) read as follows: "The
    Secretary may assess a civil penalty of not more than $1,000 for
    each violation by any person of section 1021(f)(1) of this title."
      2002 - Subsec. (a)(6). Pub. L. 107-204, Sec. 306(b)(3)(A),
    substituted "(5), (6), or (7)" for "(5), or (6)".
      Subsec. (c)(7), (8). Pub. L. 107-204, Sec. 306(b)(3)(B), (C),
    added par. (7) and redesignated former par. (7) as (8).
      1997 - Subsec. (a)(6). Pub. L. 105-34, Sec. 1503(d)(7),
    substituted "(5), or (6)" for "or (5)".
      Subsec. (c)(6), (7). Pub. L. 105-34, Sec. 1503(c)(2)(B), added
    par. (6) and redesignated former par. (6) as (7).
      1996 - Subsec. (a)(6). Pub. L. 104-191, Sec. 101(e)(2)(A)(i),
    substituted "under paragraph (2), (4), or (5) of subsection (c) of
    this section or under subsection (i) or (l) of this section" for
    "under subsection (c)(2) or (i) or (l) of this section".
      Subsec. (b)(3). Pub. L. 104-204 made technical amendment to
    reference in original act which appears in text as reference to
    section 1191b of this title.
      Pub. L. 104-191, Sec. 101(b), added par. (3).
      Subsec. (c)(1). Pub. L. 104-191, Sec. 101(e)(2)(B), inserted at
    end "For purposes of this paragraph, each violation described in
    subparagraph (A) with respect to any single participant, and each
    violation described in subparagraph (B) with respect to any single
    participant or beneficiary, shall be treated as a separate
    violation."
      Subsec. (c)(4) to (6). Pub. L. 104-191, Sec. 101(e)(2)(A)(ii),
    struck out "For purposes of this paragraph, each violation
    described in subparagraph (A) with respect to any single
    participant, and each violation described in subparagraph (B) with
    respect to any single participant or beneficiary, shall be treated
    as a separate violation. The Secretary and" after "section
    1021(f)(1) of this title.", redesignated "the Secretary of Health
    and Human Services shall maintain such ongoing consultation as may
    be necessary and appropriate to coordinate enforcement under this
    subsection with enforcement under section 1320b-14(c)(8) of title
    42." as par. (6) and inserted "The Secretary and" before "the
    Secretary of Health and Human Services", and added par. (5).
      1994 - Subsec. (a)(9). Pub. L. 103-401, Sec. 2, added par. (9).
      Subsec. (l)(3)(B). Pub. L. 103-401, Sec. 3, inserted "(or to
    provide the relief ordered pursuant to subsection (a)(9) of this
    section)" after "to restore all losses to the plan".
      Subsec. (m). Pub. L. 103-465 added subsec. (m).
      1993 - Subsec. (a)(7), (8). Pub. L. 103-66, Sec. 4301(c)(1),
    added pars. (7) and (8).
      Subsec. (c)(4). Pub. L. 103-66, Sec. 4301(c)(2), added par. (4).
      Subsec. (e)(1). Pub. L. 103-66, Sec. 4301(c)(3), substituted in
    first sentence "fiduciary, or any person referred to in section
    1021(f)(1) of this title" for "or fiduciary" and in second sentence
    "paragraphs (1)(B) and (7) of subsection (a)" for "subsection
    (a)(1)(B)".
      1990 - Subsec. (c)(1). Pub. L. 101-508, Sec. 12012(d)(2)(A),
    inserted "or section 1021(e)(1) of this title" after "section 1166
    of this title".
      Subsec. (c)(3). Pub. L. 101-508, Sec. 12012(d)(2)(B), inserted
    "or who fails to meet the requirements of section 1021(e)(2) of
    this title with respect to any person" after first reference to
    "beneficiary" and "or to such person" after second reference to
    "beneficiary".
      1989 - Subsec. (a)(6). Pub. L. 101-239, Sec. 7881(j)(2),
    substituted "subsection (c)(2) or (i)" for "subsection (i)".
      Pub. L. 101-239, Sec. 2101(b), inserted "or (l)" after
    "subsection (i)".
      Subsec. (b)(1). Pub. L. 101-239, Sec. 7894(f)(1), substituted
    "respect" for "respct" before "to a violation" in introductory
    provisions.
      Pub. L. 101-239, Sec. 7891(a)(1), substituted "Internal Revenue
    Code of 1986" for "Internal Revenue Code of 1954", which for
    purposes of codification was translated as "title 26" thus
    requiring no change in text.
      Subsec. (c)(2). Pub. L. 101-239, Sec. 7881(j)(3), inserted
    "against any plan administrator" after "civil penalty" and
    substituted "such plan administrator's" for "a plan
    administrator's".
      Subsec. (c)(3). Pub. L. 101-239, Sec. 7881(b)(5)(B), added par.
    (3).
      Subsec. (g)(2). Pub. L. 101-239, Sec. 7891(a)(1), substituted
    "Internal Revenue Code of 1986" for "Internal Revenue Code of
    1954", which for purposes of codification was translated as "title
    26" thus requiring no change in text.
      Subsec. (l). Pub. L. 101-239, Sec. 2101(a), added subsec. (l).
      1987 - Subsec. (c). Pub. L. 100-203, Sec. 9342(c), designated
    existing provision as par. (1), redesignated as cls. (A) and (B)
    former cls. (1) and (2), and added par. (2).
      Subsec. (i). Pub. L. 100-203, Sec. 9344, amended second sentence
    generally. Prior to amendment, second sentence read as follows:
    "The amount of such penalty may not exceed 5 percent of the amount
    involved (as defined in section 4975(f)(4) of title 26); except
    that if the transaction is not corrected (in such manner as the
    Secretary shall prescribe by regulation, which regulations shall be
    consistent with section 4975(f)(5) of title 26) within 90 days
    after notice from the Secretary (or such longer period as the
    Secretary may permit), such penalty may be in an amount not more
    than 100 percent of the amount involved."
      1986 - Subsec. (c). Pub. L. 99-272 inserted "(1) who fails to
    meet the requirements of paragraph (1) or (4) of section 1166 of
    this title with respect to a participant or beneficiary, or (2)".
      1980 - Subsec. (b). Pub. L. 96-364, Sec. 306(b)(1), redesignated
    existing provisions as par. (1)(A) and (B) and added par. (2).
      Subsec. (g). Pub. L. 96-364, Sec. 306(b)(2), redesignated
    existing provisions as par. (1), inserted exception for actions
    under paragraph (2), and added par. (2).

             EFFECTIVE AND TERMINATION DATES OF 2006 AMENDMENT         
      Amendment by section 103(b)(2) of Pub. L. 109-280 applicable to
    plan years beginning after Dec. 31, 2007, with collective
    bargaining exception, see section 103(c) of Pub. L. 109-280, set
    out as an Effective Date of 2006 Amendment note under section 1021
    of this title.
      Amendment by section 202(b), (c) of Pub. L. 109-280 applicable
    with respect to plan years beginning after 2007, with special rules
    for certain notices and certain restored benefits, see section
    202(f) of Pub. L. 109-280, set out as a note under section 1082 of
    this title.
      Amendment by section 202(b), (c) of Pub. L. 109-280 inapplicable
    to plan years beginning after Dec. 31, 2014, with exception for
    certain funding improvement and rehabilitation plans, see section
    221(c) of Pub. L. 109-280, set out as a note under section 412 of
    Title 26, Internal Revenue Code.
      Amendment by section 502(a)(2), (b)(2) of Pub. L. 109-280
    applicable to plan years beginning after Dec. 31, 2007, see section
    502(d) of Pub. L. 109-280, set out as an Effective Date of 2006
    Amendment note under section 4980F of Title 26, Internal Revenue
    Code.
      Amendment by section 507(b) of Pub. L. 109-280 applicable to plan
    years beginning after Dec. 31, 2006, see section 507(d)(1) of Pub.
    L. 109-280, set out as an Effective Date of 2006 Amendment note
    under section 1021 of this title.
      Amendment by section 508(a)(2)(C) of Pub. L. 109-280 applicable
    to plan years beginning after Dec. 31, 2006, with special rule for
    collectively bargained agreements that were ratified on or before
    such date, see section 508(c) of Pub. L. 109-280, set out as an
    Effective Date of 2006 Amendment note under section 1025 of this
    title.
      Amendment by section 902(f)(2) effective Aug. 17, 2006, see
    section 902(g) of Pub. L. 109-280, set out as an Effective Date of
    2006 Amendment note under section 401 of Title 26, Internal Revenue
    Code.

                     EFFECTIVE DATE OF 2004 AMENDMENT                 
      Amendment by section 103(b) of Pub. L. 108-218 applicable to plan
    years beginning after Dec. 31, 2004, see section 103(d) of Pub. L.
    108-218, set out as a note under section 1021 of this title.

                     EFFECTIVE DATE OF 2002 AMENDMENT                 
      Amendment by Pub. L. 107-204 effective 180 days after July 30,
    2002, see section 7244(c) of Title 15, Commerce and Trade.

                     EFFECTIVE DATE OF 1996 AMENDMENTS                 
      Amendment by Pub. L. 104-204 applicable with respect to group
    health plans for plan years beginning on or after Jan. 1, 1998, see
    section 603(c) of Pub. L. 104-204 set out as a note under section
    1003 of this title.
      Amendment by Pub. L. 104-191 applicable with respect to group
    health plans for plan years beginning after June 30, 1997, except
    as otherwise provided, see section 101(g) of Pub. L. 104-191, set
    out as a note under section 1181 of this title.

                     EFFECTIVE DATE OF 1994 AMENDMENTS                 
      Amendment by Pub. L. 103-465 applicable to plan years beginning
    after Dec. 31, 1994, see section 761(b)(1) of Pub. L. 103-465, set
    out as a note under section 1056 of this title.
      Section 5 of Pub. L. 103-401 provided that: "The amendments made
    by this Act [amending this section] shall apply to any legal
    proceeding pending, or brought, on or after May 31, 1993."

                     EFFECTIVE DATE OF 1990 AMENDMENT                 
      Amendment by Pub. L. 101-508 applicable to qualified transfers
    under section 420 of title 26 made after Nov. 5, 1990, see section
    12012(e) of Pub. L. 101-508, set out as a note under section 1021
    of this title.

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Section 2101(c) of Pub. L. 101-239 provided that: "The amendments
    made by this section [amending this section] shall apply to any
    breach of fiduciary responsibility or other violation occurring on
    or after the date of the enactment of this Act [Dec. 19, 1989]."
      Amendment by section 7881(b)(5)(B), (j)(2), (3) of Pub. L. 101-
    239 effective, except as otherwise provided, as if included in the
    provision of the Pension Protection Act, Pub. L. 100-203, Secs.
    9302-9346, to which such amendment relates, see section 7882 of
    Pub. L. 101-239, set out as a note under section 401 of Title 26,
    Internal Revenue Code.
      Amendment by section 7891(a)(1) of Pub. L. 101-239 effective,
    except as otherwise provided, as if included in the provision of
    the Tax Reform Act of 1986, Pub. L. 99-514, to which such amendment
    relates, see section 7891(f) of Pub. L. 101-239, set out as a note
    under section 1002 of this title.
      Amendment by section 7894(f)(1) of Pub. L. 101-239 effective,
    except as otherwise provided, as if originally included in the
    provision of the Employee Retirement Income Security Act of 1974,
    Pub. L. 93-406, to which such amendment relates, see section
    7894(i) of Pub. L. 101-239, set out as a note under section 1002 of
    this title.

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Section 9342(d) of Pub. L. 100-203 provided that:
      "(1) In general. - The amendments made by this section [amending
    this section and sections 1023, 1024, and 1113 of this title] shall
    apply with respect to reports required to be filed after December
    31, 1987.
      "(2) Regulations. - The Secretary of Labor shall issue the
    regulations required to carry out the amendments made by subsection
    (c) [amending this section] not later than January 1, 1989."

                     EFFECTIVE DATE OF 1986 AMENDMENT                 
      Amendment by Pub. L. 99-272 applicable to plan years beginning on
    or after July 1, 1986, with special rule for collective bargaining
    agreements, see section 10002(d) of Pub. L. 99-272, set out as an
    Effective Date note under section 1161 of this title.

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-364 effective Sept. 26, 1980, except as
    specifically provided, see section 1461(e) of this title.

                                REGULATIONS                            
      Secretary authorized, effective Sept. 2, 1974, to promulgate
    regulations wherever provisions of this subchapter call for the
    promulgation of regulations, see section 1031 of this title.

    APPLICABILITY OF AMENDMENTS BY SUBTITLES A AND B OF TITLE I OF PUB.
                                L. 109-280
      For special rules on applicability of amendments by subtitles A
    (Secs. 101-107) and B (Secs. 111-116) of title I of Pub. L. 109-280
    to certain eligible cooperative plans, PBGC settlement plans, and
    eligible government contractor plans, see sections 104, 105, and
    106 of Pub. L. 109-280, set out as notes under section 401 of Title
    26, Internal Revenue Code.

        SPECIAL RULE FOR CERTAIN BENEFITS FUNDED UNDER AN AGREEMENT
           APPROVED BY THE PENSION BENEFIT GUARANTY CORPORATION
      For applicability of amendment by section 202(b), (c) of Pub. L.
    109-280 to a multiemployer plan that is a party to an agreement
    that was approved by the Pension Benefit Guaranty Corporation prior
    to June 30, 2005, and that increases benefits and provides for
    certain withdrawal liability rules, see section 206 of Pub. L. 109-
    280, set out as a note under section 412 of Title 26, Internal
    Revenue Code.

               EFFECT OF PUB. L. 103-401 ON OTHER PROVISIONS           
      Section 4 of Pub. L. 103-401 provided that: "Nothing in this Act
    [amending this section and enacting provisions set out as notes
    under this section and section 1001 of this title] shall be
    construed to limit the legal standing of individuals to bring a
    civil action as participants or beneficiaries under section 502(a)
    of the Employee Retirement Income Security Act of 1974 (29 U.S.C.
    1132(a)), and nothing in this Act shall affect the
    responsibilities, obligations, or duties imposed upon fiduciaries
    by title I of the Employee Retirement Income Security Act of 1974
    [this subchapter]."

             PLAN AMENDMENTS NOT REQUIRED UNTIL JULY 30, 2002         
      For provisions directing that if any amendment made by section
    306(b) of Pub. L. 107-204 requires an amendment to any plan, such
    plan amendment shall not be required to be made before the first
    plan year beginning on or after July 30, 2002, see section
    7244(b)(3) of Title 15, Commerce and Trade.

            PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1994        
      For provisions setting forth circumstances under which any
    amendment to a plan required to be made by an amendment made by
    section 4301 of Pub. L. 103-66 shall not be required to be made
    before the first plan year beginning on or after Jan. 1, 1994, see
    section 4301(d) of Pub. L. 103-66, set out as an Effective Date of
    1993 Amendment note under section 1021 of this title.

-FOOTNOTE-
    (!1) So in original. Probably should be "subtitle".

    (!2) See References in Text note below.


-End-



-CITE-
    29 USC Sec. 1133                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 5 - administration and enforcement

-HEAD-
    Sec. 1133. Claims procedure

-STATUTE-
      In accordance with regulations of the Secretary, every employee
    benefit plan shall - 
        (1) provide adequate notice in writing to any participant or
      beneficiary whose claim for benefits under the plan has been
      denied, setting forth the specific reasons for such denial,
      written in a manner calculated to be understood by the
      participant, and
        (2) afford a reasonable opportunity to any participant whose
      claim for benefits has been denied for a full and fair review by
      the appropriate named fiduciary of the decision denying the
      claim.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 503, Sept. 2, 1974, 88 Stat. 893.)


-MISC1-
                                REGULATIONS                            
      Secretary authorized, effective Sept. 2, 1974, to promulgate
    regulations wherever provisions of this subchapter call for the
    promulgation of regulations, see section 1031 of this title.

-End-



-CITE-
    29 USC Sec. 1134                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 5 - administration and enforcement

-HEAD-
    Sec. 1134. Investigative authority

-STATUTE-
    (a) Investigation and submission of reports, books, etc.
      The Secretary shall have the power, in order to determine whether
    any person has violated or is about to violate any provision of
    this subchapter or any regulation or order thereunder - 
        (1) to make an investigation, and in connection therewith to
      require the submission of reports, books, and records, and the
      filing of data in support of any information required to be filed
      with the Secretary under this subchapter, and
        (2) to enter such places, inspect such books and records and
      question such persons as he may deem necessary to enable him to
      determine the facts relative to such investigation, if he has
      reasonable cause to believe there may exist a violation of this
      subchapter or any rule or regulation issued thereunder or if the
      entry is pursuant to an agreement with the plan.

    The Secretary may make available to any person actually affected by
    any matter which is the subject of an investigation under this
    section, and to any department or agency of the United States,
    information concerning any matter which may be the subject of such
    investigation; except that any information obtained by the
    Secretary pursuant to section 6103(g) of title 26 shall be made
    available only in accordance with regulations prescribed by the
    Secretary of the Treasury.
    (b) Frequency of submission of books and records
      The Secretary may not under the authority of this section require
    any plan to submit to the Secretary any books or records of the
    plan more than once in any 12 month period, unless the Secretary
    has reasonable cause to believe there may exist a violation of this
    subchapter or any regulation or order thereunder.
    (c) Other provisions applicable relating to attendance of witnesses
      and production of books, records, etc.
      For the purposes of any investigation provided for in this
    subchapter, the provisions of sections 49 and 50 of title 15
    (relating to the attendance of witnesses and the production of
    books, records, and documents) are hereby made applicable (without
    regard to any limitation in such sections respecting persons,
    partnerships, banks, or common carriers) to the jurisdiction,
    powers, and duties of the Secretary or any officers designated by
    him. To the extent he considers appropriate, the Secretary may
    delegate his investigative functions under this section with
    respect to insured banks acting as fiduciaries of employee benefit
    plans to the appropriate Federal banking agency (as defined in
    section 1813(q) of title 12).

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 504, Sept. 2, 1974, 88 Stat. 893;
    Pub. L. 101-239, title VII, Sec. 7891(a)(1), Dec. 19, 1989, 103
    Stat. 2445.)


-MISC1-
                                AMENDMENTS                            
      1989 - Subsec. (a). Pub. L. 101-239 substituted "Internal Revenue
    Code of 1986" for "Internal Revenue Code of 1954", which for
    purposes of codification was translated as "title 26" thus
    requiring no change in text.

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by Pub. L. 101-239 effective, except as otherwise
    provided, as if included in the provision of the Tax Reform Act of
    1986, Pub. L. 99-514, to which such amendment relates, see section
    7891(f) of Pub. L. 101-239, set out as a note under section 1002 of
    this title.

                                REGULATIONS                            
      Secretary authorized, effective Sept. 2, 1974, to promulgate
    regulations wherever provisions of this subchapter call for the
    promulgation of regulations, see section 1031 of this title.

-End-



-CITE-
    29 USC Sec. 1135                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 5 - administration and enforcement

-HEAD-
    Sec. 1135. Regulations

-STATUTE-
      Subject to subchapter II of this chapter and section 1029 of this
    title, the Secretary may prescribe such regulations as he finds
    necessary or appropriate to carry out the provisions of this
    subchapter. Among other things, such regulations may define
    accounting, technical and trade terms used in such provisions; may
    prescribe forms; and may provide for the keeping of books and
    records, and for the inspection of such books and records (subject
    to section 1134(a) and (b) of this title).

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 505, Sept. 2, 1974, 88 Stat. 894.)


-MISC1-
                                REGULATIONS                            
      Pub. L. 99-272, title XI, Sec. 11018, Apr. 7, 1986, 100 Stat.
    277, provided that:
      "(a) Regulatory Treatment of Assets of Real Estate Entities. - 
        "(1) In general. - Except as a defense, no rule or regulation
      adopted pursuant to the Secretary's proposed regulation defining
      'plan assets' for purposes of the Employee Retirement Income
      Security Act of 1974 [29 U.S.C. 1001 et seq.] (50 Fed. Reg. 961,
      January 8, 1985, as modified by 50 Fed. Reg. 6361, February 15,
      1985), or any reproposal thereof prior to the adoption of the
      regulations required to be issued in accordance with subsection
      (d), shall apply to any asset of a real estate entity in which a
      plan, account, or arrangement subject to such Act invests if - 
          "(A) any interest in the entity is first offered to a plan,
        account, or arrangement subject to such Act investing in the
        entity (hereinafter in this section referred to as a 'plan
        investor') on or before the date which is 120 days after the
        date of publication of such rule or regulation as a final rule
        or regulation;
          "(B) no plan investor acquires an interest in the entity from
        an issuer or underwriter at any time on or after the date which
        is 270 days after the date of publication of such rule or
        regulation as a final rule or regulation (except pursuant to a
        contract or subscription binding on the plan investor and
        entered into, or tendered, before the expiration of such 270-
        day period, or pursuant to the exercise, on or before December
        31, 1990, of a warrant which was the subject of an effective
        registration under the Securities Act of 1933 (15 U.S.C. 77q et
        seq.) [15 U.S.C. 77a et seq.] prior to the date of the
        enactment of this section [Apr. 7, 1986]); and
          "(C) every interest in the entity acquired by a plan investor
        (or contracted for or subscribed to by a plan investor) before
        the expiration of such 270-day period is a security - 
            "(i) which is part of an issue or class of securities which
          upon such acquisition or at any time during the offering
          period is held by 100 or more persons;
            "(ii) the economic rights of ownership in respect of which
          are freely transferable;
            "(iii) which is registered under the Securities Act of
          1933; and
            "(iv) which is part of an issue or class of securities
          which is registered under the Securities Exchange Act of 1934
          (15 U.S.C. 78a et seq.) (or is so registered within three
          years of the effective date of the registration statement of
          such securities for purposes of the Securities Act of 1933:
          Provided, That the issuer provides plan investors with such
          reports with respect to the offering period as are required
          with respect to such period by the Securities and Exchange
          Commission under such Acts and the rules and regulations
          promulgated thereunder).
      In the case of partnerships organized prior to enactment of this
      section, the requirements of subparagraphs (iii) and (iv) shall
      not apply to initial limited partnership interests in an entity
      otherwise described above: Provided, That such entity was the
      subject of an effective registration under the Securities Act of
      1933 prior to the date of the enactment of this section, such
      interests were issued solely for partnership organizational
      purposes in compliance with State limited partnership laws, and
      such interest has a value as of the date of issue of less than
      $20,000 and represents less than one percent of the total
      interests outstanding as of the completion of the offering
      period.
        "(2) Maintenance of current regulatory treatment. - No asset of
      any real estate entity described in paragraph (1) shall be
      treated as an asset of any plan investor for any purpose of the
      Employee Retirement Income Security Act of 1974 [29 U.S.C. 1001
      et seq.] if the assets of such entity would not have been assets
      of such plan investor under the provisions of - 
          "(A) Interpretive Bulletin 75-2 (29 CFR 2509.750-2); or
          "(B) the regulations proposed by the Secretary of Labor and
        published - 
            "(i) on August 28, 1979, at 44 Fed. Reg. 50363;
            "(ii) on June 6, 1980, at 45 Fed. Reg. 38084;
            "(iii) on January 8, 1985, at 50 Fed. Reg. 961; or
            "(iv) on February 15, 1985, at 50 Fed. Reg. 6361,
      without regard to any limitation of any effective date proposed
      therein.
      "(b) Definitions and Special Rules. - For purposes of this
    section - 
        "(1) The term 'real estate entity' means an entity which, at
      any time within two years after the closing of its offering
      period has invested or has contracted to invest at least 75
      percent of the value of its net assets available for investment
      in direct or indirect ownership of 'real estate assets' or
      'interests in real property'.
        "(2) The term 'real estate asset' means real property
      (including an interest in real property) and any share of stock
      or beneficial interest, partnership interest, depository receipt,
      or any other interest in any other real estate entity.
        "(3) The term 'interest in real property' includes, directly or
      indirectly, the following:
          "(A) the ownership or co-ownership of land or improvements
        thereon;
          "(B) any mortgage (including an interest in or co-ownership
        of any mortgage, leasehold mortgage, pool of mortgages, deed of
        trust, or similar instrument) on land or improvements thereon,
          "(C) any leasehold of land or improvements thereon; and
          "(D) any option to acquire any of the foregoing, but does not
        include any mineral, oil, or gas royalty interest.
        "(4) Whether the economic rights of ownership with respect to a
      security are 'freely transferable' shall be determined based upon
      all the facts and circumstances, but ordinarily none of the
      following, alone or in any combination, shall cause the economic
      rights of ownership to be considered not freely transferable - 
          "(A) any requirement that not less than a minimum number of
        shares or units of such security be transferred or assigned by
        any investor: Provided, That such requirement does not prevent
        transfer of all of the then remaining shares or units held by
        an investor;
          "(B) any prohibition against transfer or assignment of such
        security or rights in respect thereof to an ineligible or
        unsuitable investor;
          "(C) any restriction on or prohibition against any transfer
        or assignment which would either result in a termination or
        reclassification of the entity for Federal or State tax
        purposes or which would violate any State or Federal statute,
        regulation, court order, judicial decree, or rule of law;
          "(D) any requirement that reasonable transfer or
        administrative fees be paid in connection with a transfer or
        assignment;
          "(E) any requirement that advance notice of a transfer or
        assignment be given to the entity and any requirement regarding
        execution of documentation evidencing such transfer or
        assignment (including documentation setting forth
        representations from either or both of the transferor or
        transferee as to compliance with any restriction or requirement
        described in this section or requiring compliance with the
        entity's governing instruments);
          "(F) any restriction on substitution of an assignee as a
        limited partner of a partnership, including a general partner
        consent requirement: Provided, That the economic benefits of
        ownership of the assignor may be transferred or assigned
        without regard to such restriction or consent (other than
        compliance with any other restriction described in this
        section);
          "(G) any administrative procedure which establishes an
        effective date, or an event such as the completion of the
        offering, prior to which a transfer or assignment will not be
        effective; and
          "(H) any limitation or restriction on transfer or assignment
        which is not created or imposed by the issuer or any person
        acting for or on behalf of such issuer.
      "(c) No Effect on Secretary's Authority Other Than As Provided. -
    Except as provided in subsection (a), nothing in this section shall
    limit the authority of the Secretary of Labor to issue regulations
    or otherwise interpret section 3(21) of the Employee Retirement
    Income Security Act of 1974 [29 U.S.C. 1002(21)].
      "(d) Time Limit for Final Regulations. - The Secretary of Labor
    shall adopt final regulations defining 'plan assets' by December
    31, 1986.
      "(e) Effective Date. - The preceding provisions of this section
    shall take effect on the date of the enactment of this Act [Apr. 7,
    1986]."
      Secretary authorized, effective Sept. 2, 1974, to promulgate
    regulations wherever provisions of this subchapter call for the
    promulgation of regulations, see section 1031 of this title.

-End-



-CITE-
    29 USC Sec. 1136                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 5 - administration and enforcement

-HEAD-
    Sec. 1136. Coordination and responsibility of agencies enforcing
      this subchapter and related Federal laws

-STATUTE-
    (a) Coordination with other agencies and departments
      In order to avoid unnecessary expense and duplication of
    functions among Government agencies, the Secretary may make such
    arrangements or agreements for cooperation or mutual assistance in
    the performance of his functions under this subchapter and the
    functions of any such agency as he may find to be practicable and
    consistent with law. The Secretary may utilize, on a reimbursable
    or other basis, the facilities or services of any department,
    agency, or establishment of the United States or of any State or
    political subdivision of a State, including the services of any of
    its employees, with the lawful consent of such department, agency,
    or establishment; and each department, agency, or establishment of
    the United States is authorized and directed to cooperate with the
    Secretary and, to the extent permitted by law, to provide such
    information and facilities as he may request for his assistance in
    the performance of his functions under this subchapter. The
    Attorney General or his representative shall receive from the
    Secretary for appropriate action such evidence developed in the
    performance of his functions under this subchapter as may be found
    to warrant consideration for criminal prosecution under the
    provisions of this subchapter or other Federal law.
    (b) Responsibility for detecting and investigating civil and
      criminal violations of this subchapter and related Federal laws
      The Secretary shall have the responsibility and authority to
    detect and investigate and refer, where appropriate, civil and
    criminal violations related to the provisions of this subchapter
    and other related Federal laws, including the detection,
    investigation, and appropriate referrals of related violations of
    title 18. Nothing in this subsection shall be construed to preclude
    other appropriate Federal agencies from detecting and investigating
    civil and criminal violations of this subchapter and other related
    Federal laws.
    (c) Coordination of enforcement with States with respect to certain
      arrangements
      A State may enter into an agreement with the Secretary for
    delegation to the State of some or all of the Secretary's authority
    under sections 1132 and 1134 of this title to enforce the
    requirements under part 7 in connection with multiple employer
    welfare arrangements, providing medical care (within the meaning of
    section 1191b(a)(2) of this title), which are not group health
    plans.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 506, Sept. 2, 1974, 88 Stat. 894;
    Pub. L. 98-473, title II, Sec. 805, Oct. 12, 1984, 98 Stat. 2134;
    Pub. L. 104-191, title I, Sec. 101(e)(3), Aug. 21, 1996, 110 Stat.
    1953; Pub. L. 104-204, title VI, Sec. 603(b)(3)(F), Sept. 26, 1996,
    110 Stat. 2938.)


-MISC1-
                                AMENDMENTS                            
      1996 - Subsec. (c). Pub. L. 104-204 made technical amendment to
    reference in original act which appears in text as reference to
    section 1191b of this title.
      Pub. L. 104-191 added subsec. (c).
      1984 - Pub. L. 98-473 designated existing provisions as subsec.
    (a), added subsec. (b), and amended section catchline.

                     EFFECTIVE DATE OF 1996 AMENDMENTS                 
      Amendment by Pub. L. 104-204 applicable with respect to group
    health plans for plan years beginning on or after Jan. 1, 1998, see
    section 603(c) of Pub. L. 104-204 set out as a note under section
    1003 of this title.
      Amendment by Pub. L. 104-191 applicable with respect to group
    health plans for plan years beginning after June 30, 1997, except
    as otherwise provided, see section 101(g) of Pub. L. 104-191, set
    out as a note under section 1181 of this title.

                                REGULATIONS                            
      Secretary authorized, effective Sept. 2, 1974, to promulgate
    regulations wherever provisions of this subchapter call for the
    promulgation of regulations, see section 1031 of this title.

      RELATION OF SUBTITLE E OF TITLE II OF PUB. L. 104-191 TO ERISA
                                 AUTHORITY
      Section 250 of title II of Pub. L. 104-191 provided that:
    "Nothing in this subtitle [subtitle E (Secs. 241-250) of title II
    of Pub. L. 104-191, enacting sections 24, 669, 1035, 1347, 1518,
    and 3486 of Title 18, Crimes and Criminal Procedure, amending
    sections 982, 1345, 1510, and 1956 of Title 18, and enacting
    provisions set out as notes under section 1395i of Title 42, The
    Public Health and Welfare] shall be construed as affecting the
    authority of the Secretary of Labor under section 506(b) of the
    Employee Retirement Income Security Act of 1974 [29 U.S.C.
    1136(b)], including the Secretary's authority with respect to
    violations of title 18, United States Code (as amended by this
    subtitle)."

-End-



-CITE-
    29 USC Sec. 1137                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 5 - administration and enforcement

-HEAD-
    Sec. 1137. Administration

-STATUTE-
      (a) Subchapter II of chapter 5, and chapter 7, of title 5
    (relating to administrative procedure), shall be applicable to this
    subchapter.
      (b) Omitted.
      (c) No employee of the Department of Labor or the Department of
    the Treasury shall administer or enforce this subchapter or the
    Internal Revenue Code of 1986 with respect to any employee benefit
    plan under which he is a participant or beneficiary, any employee
    organization of which he is a member, or any employer organization
    in which he has an interest. This subsection does not apply to an
    employee benefit plan which covers only employees of the United
    States.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 507, Sept. 2, 1974, 88 Stat. 894;
    Pub. L. 101-239, title VII, Sec. 7891(a), Dec. 19, 1989, 103 Stat.
    2445.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Internal Revenue Code of 1986, referred to in subsec. (c), is
    classified generally to Title 26, Internal Revenue Code.

-COD-
                               CODIFICATION                           
      Subsec. (b) of this section amended section 5108 of Title 5,
    Government Organization and Employees.


-MISC1-
                                AMENDMENTS                            
      1989 - Subsec. (c). Pub. L. 101-239 substituted "Internal Revenue
    Code of 1986" for "Internal Revenue Code of 1954".

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by Pub. L. 101-239 effective, except as otherwise
    provided, as if included in the provision of the Tax Reform Act of
    1986, Pub. L. 99-514, to which such amendment relates, see section
    7891(f) of Pub. L. 101-239, set out as a note under section 1002 of
    this title.

                                REGULATIONS                            
      Secretary authorized, effective Sept. 2, 1974, to promulgate
    regulations wherever provisions of this subchapter call for the
    promulgation of regulations, see section 1031 of this title.

-End-



-CITE-
    29 USC Sec. 1138                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 5 - administration and enforcement

-HEAD-
    Sec. 1138. Appropriations

-STATUTE-
      There are hereby authorized to be appropriated such sums as may
    be necessary to enable the Secretary to carry out his functions and
    duties under this chapter.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 508, Sept. 2, 1974, 88 Stat. 895.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This chapter, referred to in text, was in the original "this
    Act", meaning Pub. L. 93-406, known as the Employee Retirement
    Income Security Act of 1974. Titles I, III, and IV of such Act are
    classified principally to this chapter. For complete classification
    of this Act to the Code, see Short Title note set out under section
    1001 of this title and Tables.


-MISC1-
                                REGULATIONS                            
      Secretary authorized, effective Sept. 2, 1974, to promulgate
    regulations wherever provisions of this subchapter call for the
    promulgation of regulations, see section 1031 of this title.

-End-



-CITE-
    29 USC Sec. 1139                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 5 - administration and enforcement

-HEAD-
    Sec. 1139. Separability

-STATUTE-
      If any provision of this chapter, or the application of such
    provision to any person or circumstances, shall be held invalid,
    the remainder of this chapter, or the application of such provision
    to persons or circumstances other than those as to which it is held
    invalid, shall not be affected thereby.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 509, Sept. 2, 1974, 88 Stat. 895.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This chapter, referred to in text, was in the original "this
    Act", meaning Pub. L. 93-406, known as the Employee Retirement
    Income Security Act of 1974. Titles I, III, and IV of such Act are
    classified principally to this chapter. For complete classification
    of this Act to the Code, see Short Title note set out under section
    1001 of this title and Tables.


-MISC1-
                                REGULATIONS                            
      Secretary authorized, effective Sept. 2, 1974, to promulgate
    regulations wherever provisions of this subchapter call for the
    promulgation of regulations, see section 1031 of this title.

-End-



-CITE-
    29 USC Sec. 1140                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 5 - administration and enforcement

-HEAD-
    Sec. 1140. Interference with protected rights

-STATUTE-
      It shall be unlawful for any person to discharge, fine, suspend,
    expel, discipline, or discriminate against a participant or
    beneficiary for exercising any right to which he is entitled under
    the provisions of an employee benefit plan, this subchapter,
    section 1201 of this title, or the Welfare and Pension Plans
    Disclosure Act [29 U.S.C. 301 et seq.], or for the purpose of
    interfering with the attainment of any right to which such
    participant may become entitled under the plan, this subchapter, or
    the Welfare and Pension Plans Disclosure Act. It shall be unlawful
    for any person to discharge, fine, suspend, expel, or discriminate
    against any person because he has given information or has
    testified or is about to testify in any inquiry or proceeding
    relating to this chapter or the Welfare and Pension Plans
    Disclosure Act. In the case of a multiemployer plan, it shall be
    unlawful for the plan sponsor or any other person to discriminate
    against any contributing employer for exercising rights under this
    chapter or for giving information or testifying in any inquiry or
    proceeding relating to this chapter before Congress. The provisions
    of section 1132 of this title shall be applicable in the
    enforcement of this section.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 510, Sept. 2, 1974, 88 Stat. 895;
    Pub. L. 109-280, title II, Sec. 205, Aug. 17, 2006, 120 Stat. 889.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Welfare and Pension Plans Disclosure Act, referred to in
    text, is Pub. L. 85-836, Aug. 28, 1958, 72 Stat. 997, as amended,
    which was classified generally to chapter 10 (Sec. 301 et seq.) of
    this title, and was repealed by Pub. L. 93-406, title I, Sec.
    111(a)(1), Sept. 2, 1974, 88 Stat. 851 (Employee Retirement Income
    Security Act of 1974), effective Jan. 1, 1975. Such section
    111(a)(1) also provided that the Welfare and Pension Plans
    Disclosure Act should continue to apply to any conduct and events
    which occurred before Jan. 1, 1975 (see section 1031 of this
    title). For complete classification of the Welfare and Pension
    Plans Disclosure Act to the Code prior to such repeal, see Tables.
      This chapter, referred to in text, was in the original "this
    Act", meaning Pub. L. 93-406, known as the Employee Retirement
    Income Security Act of 1974. Titles I, III, and IV of such Act are
    classified principally to this chapter. For complete classification
    of this Act to the Code, see Short Title note set out under section
    1001 of this title and Tables.


-MISC1-
                                AMENDMENTS                            
      2006 - Pub. L. 109-280 inserted before last sentence "In the case
    of a multiemployer plan, it shall be unlawful for the plan sponsor
    or any other person to discriminate against any contributing
    employer for exercising rights under this chapter or for giving
    information or testifying in any inquiry or proceeding relating to
    this chapter before Congress."

                                REGULATIONS                            
      Secretary authorized, effective Sept. 2, 1974, to promulgate
    regulations wherever provisions of this subchapter call for the
    promulgation of regulations, see section 1031 of this title.

-End-



-CITE-
    29 USC Sec. 1141                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 5 - administration and enforcement

-HEAD-
    Sec. 1141. Coercive interference

-STATUTE-
      It shall be unlawful for any person through the use of fraud,
    force, violence, or threat of the use of force or violence, to
    restrain, coerce, intimidate, or attempt to restrain, coerce, or
    intimidate any participant or beneficiary for the purpose of
    interfering with or preventing the exercise of any right to which
    he is or may become entitled under the plan, this subchapter,
    section 1201 of this title, or the Welfare and Pension Plans
    Disclosure Act [29 U.S.C. 301 et seq.]. Any person who willfully
    violates this section shall be fined $100,000 or imprisoned for not
    more than 10 years, or both.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 511, Sept. 2, 1974, 88 Stat. 895;
    Pub. L. 109-280, title VI, Sec. 623(a), Aug. 17, 2006, 120 Stat.
    979.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Welfare and Pension Plans Disclosure Act, referred to in
    text, is Pub. L. 85-836, Aug. 28, 1958, 72 Stat. 997, as amended,
    which was classified generally to chapter 10 (Sec. 301 et seq.) of
    this title, and was repealed by Pub. L. 93-406, title I, Sec.
    111(a)(1), Sept. 2, 1974, 88 Stat. 851 (Employee Retirement Income
    Security Act of 1974), effective Jan. 1, 1975. Such section
    111(a)(1) also provided that the Welfare and Pension Plans
    Disclosure Act should continue to apply to any conduct and events
    which occurred before Jan. 1, 1975 (see section 1031 of this
    title). For complete classification of the Welfare and Pension
    Plans Disclosure Act to the Code prior to such repeal, see Tables.


-MISC1-
                                AMENDMENTS                            
      2006 - Pub. L. 109-280 substituted "$100,000" for "$10,000" and
    "10 years" for "one year".

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Pub. L. 109-280, title VI, Sec. 623(b), Aug. 17, 2006, 120 Stat.
    979, provided that: "The amendments made by this section [amending
    this section] shall apply to violations occurring on and after the
    date of the enactment of this Act [Aug. 17, 2006]."

                                REGULATIONS                            
      Secretary authorized, effective Sept. 2, 1974, to promulgate
    regulations wherever provisions of this subchapter call for the
    promulgation of regulations, see section 1031 of this title.

-End-



-CITE-
    29 USC Sec. 1142                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 5 - administration and enforcement

-HEAD-
    Sec. 1142. Advisory Council on Employee Welfare and Pension Benefit
      Plans

-STATUTE-
    (a) Establishment; membership; terms; appointment and
      reappointment; vacancies; quorum
      (1) There is hereby established an Advisory Council on Employee
    Welfare and Pension Benefit Plans (hereinafter in this section
    referred to as the "Council") consisting of fifteen members
    appointed by the Secretary. Not more than eight members of the
    Council shall be members of the same political party.
      (2) Members shall be persons qualified to appraise the programs
    instituted under this chapter.
      (3) Of the members appointed, three shall be representatives of
    employee organizations (at least one of whom shall be
    representative of any organization members of which are
    participants in a multiemployer plan); three shall be
    representatives of employers (at least one of whom shall be
    representative of employers maintaining or contributing to multi-
    employer plans); three representatives shall be appointed from the
    general public, one of whom shall be a person representing those
    receiving benefits from a pension plan; and there shall be one
    representative each from the fields of insurance, corporate trust,
    actuarial counseling, investment counseling, investment management,
    and the accounting field.
      (4) Members shall serve for terms of three years except that of
    those first appointed, five shall be appointed for terms of one
    year, five shall be appointed for terms of two years, and five
    shall be appointed for terms of three years. A member may be
    reappointed. A member appointed to fill a vacancy shall be
    appointed only for the remainder of such term. A majority of
    members shall constitute a quorum and action shall be taken only by
    a majority vote of those present and voting.
    (b) Duties and functions
      It shall be the duty of the Council to advise the Secretary with
    respect to the carrying out of his functions under this chapter and
    to submit to the Secretary recommendations with respect thereto.
    The Council shall meet at least four times each year and at such
    other times as the Secretary requests. In his annual report
    submitted pursuant to section 1143(b) (!1) of this title, the
    Secretary shall include each recommendation which he has received
    from the Council during the preceding calendar year.

    (c) Executive secretary; secretarial and clerical services
      The Secretary shall furnish to the Council an executive secretary
    and such secretarial, clerical, and other services as are deemed
    necessary to conduct its business. The Secretary may call upon
    other agencies of the Government for statistical data, reports, and
    other information which will assist the Council in the performance
    of its duties.
    (d) Compensation
      (1) Members of the Council shall each be entitled to receive the
    daily equivalent of the annual rate of basic pay in effect for
    grade GS-18 of the General Schedule for each day (including travel
    time) during which they are engaged in the actual performance of
    duties vested in the Council.
      (2) While away from their homes or regular places of business in
    the performance of services for Council, members of the Council
    shall be allowed travel expenses, including per diem in lieu of
    subsistence, in the same manner as persons employed intermittently
    in the Government service are allowed expenses under section
    5703(b) of title 5.(!1)
    (e) Termination
      Section 14(a) of the Federal Advisory Committee Act (relating to
    termination) shall not apply to the Council.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 512, Sept. 2, 1974, 88 Stat. 895.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This chapter, referred to in subsecs. (a)(2), (b), was in the
    original "this Act", meaning Pub. L. 93-406, known as the Employee
    Retirement Income Security Act of 1974. Titles I, III, and IV of
    such Act are classified principally to this chapter. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 1001 of this title and Tables.
      Section 1143(b) of this title, referred to in subsec. (b), was
    omitted from the Code.
      Section 5703 of title 5, referred to in subsec. (d)(2), was
    amended generally by Pub. L. 94-22, Sec. 4, May 19, 1975, 89 Stat.
    85, and, as so amended, does not contain a subsec. (b).
      Section 14(a) of the Federal Advisory Committee Act, referred to
    in subsec. (e), is section 14(a) of Pub. L. 92-463, which is set
    out in the Appendix to Title 5, Government Organization and
    Employees.


-MISC1-
                                REGULATIONS                            
      Secretary authorized, effective Sept. 2, 1974, to promulgate
    regulations wherever provisions of this subchapter call for the
    promulgation of regulations, see section 1031 of this title.

          REFERENCES IN OTHER LAWS TO GS-16, 17, OR 18 PAY RATES      
      References in laws to the rates of pay for GS-16, 17, or 18, or
    to maximum rates of pay under the General Schedule, to be
    considered references to rates payable under specified sections of
    Title 5, Government Organization and Employees, see section 529
    [title I, Sec. 101(c)(1)] of Pub. L. 101-509, set out in a note
    under section 5376 of Title 5.

-FOOTNOTE-
    (!1) See References in Text note below.


-End-



-CITE-
    29 USC Sec. 1143                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 5 - administration and enforcement

-HEAD-
    Sec. 1143. Research, studies, and reports

-STATUTE-
    (a) Authorization to undertake research and surveys
      (1) The Secretary is authorized to undertake research and surveys
    and in connection therewith to collect, compile, analyze and
    publish data, information, and statistics relating to employee
    benefit plans, including retirement, deferred compensation, and
    welfare plans, and types of plans not subject to this chapter.
      (2) The Secretary is authorized and directed to undertake
    research studies relating to pension plans, including but not
    limited to (A) the effects of this subchapter upon the provisions
    and costs of pension plans, (B) the role of private pensions in
    meeting the economic security needs of the Nation, and (C) the
    operation of private pension plans including types and levels of
    benefits, degree of reciprocity or portability, and financial and
    actuarial characteristics and practices, and methods of encouraging
    the growth of the private pension system.
      (3) The Secretary may, as he deems appropriate or necessary,
    undertake other studies relating to employee benefit plans, the
    matters regulated by this subchapter, and the enforcement
    procedures provided for under this subchapter.
      (4) The research, surveys, studies, and publications referred to
    in this subsection may be conducted directly, or indirectly through
    grant or contract arrangements.
    (b) Omitted
    (c) Cooperation with Congress
      The Secretary is authorized and directed to cooperate with the
    Congress and its appropriate committees, subcommittees, and staff
    in supplying data and any other information, and personnel and
    services, required by the Congress in any study, examination, or
    report by the Congress relating to pension benefit plans
    established or maintained by States or their political
    subdivisions.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 513, Sept. 2, 1974, 88 Stat. 896.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This chapter, referred to in subsec. (a)(1), was in the original
    "this Act", meaning Pub. L. 93-406, known as the Employee
    Retirement Income Security Act of 1974. Titles I, III, and IV of
    such Act are classified principally to this chapter. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 1001 of this title and Tables.

-COD-
                               CODIFICATION                           
      Subsec. (b) of this section, which required the Secretary to
    submit annually a report to Congress on the administration of this
    subchapter, terminated, effective May 15, 2000, pursuant to section
    3003 of Pub. L. 104-66, as amended, set out as a note under section
    1113 of Title 31, Money and Finance. See, also, page 123 of House
    Document No. 103-7.


-MISC1-
                                REGULATIONS                            
      Secretary authorized, effective Sept. 2, 1974, to promulgate
    regulations wherever provisions of this subchapter call for the
    promulgation of regulations, see section 1031 of this title.

-End-



-CITE-
    29 USC Sec. 1143a                                           01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 5 - administration and enforcement

-HEAD-
    Sec. 1143a. Studies by Comptroller General

-STATUTE-
    (1) In general
      The Comptroller General of the United States may, pursuant to the
    request of any Member of Congress, study employee benefit plans,
    including the effects of such plans on employees, participants, and
    their beneficiaries.
    (2) Access to books, documents, etc.
      For the purpose of conducting studies under this section, the
    Comptroller General, or any of his duly authorized representatives,
    shall have access to and the right to examine and copy any books,
    documents, papers, records, or other recorded information - 
        (A) within the possession or control of the administrator,
      sponsor, or employer of and persons providing services to any
      employee benefit plan, and
        (B) which the Comptroller General or his representative finds,
      in his own judgment, pertinent to such study.

    The Comptroller General shall not disclose the identity of any
    individual or employer in making any information obtained under
    this section available to the public.
    (3) Definitions
      For purposes of this section, the terms "employee benefit plan",
    "participant", "administrator", "beneficiary", "plan sponsor",
    "employee", and "employer" are defined in section 1002 of this
    title.
    (4) Effective date
      The preceding provisions of this section shall be effective on
    April 7, 1986.

-SOURCE-
    (Pub. L. 99-272, title XI, Sec. 11016(d), Apr. 7, 1986, 100 Stat.
    275.)

-COD-
                               CODIFICATION                           
      Section was enacted as part of the Single-Employer Pension Plan
    Amendments Act of 1986, and also as part of the Consolidated
    Omnibus Budget Reconciliation Act of 1985, and not as part of the
    Employee Retirement Income Security Act of 1974 which comprises
    this chapter.

-End-



-CITE-
    29 USC Sec. 1144                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 5 - administration and enforcement

-HEAD-
    Sec. 1144. Other laws

-STATUTE-
    (a) Supersedure; effective date
      Except as provided in subsection (b) of this section, the
    provisions of this subchapter and subchapter III of this chapter
    shall supersede any and all State laws insofar as they may now or
    hereafter relate to any employee benefit plan described in section
    1003(a) of this title and not exempt under section 1003(b) of this
    title. This section shall take effect on January 1, 1975.
    (b) Construction and application
      (1) This section shall not apply with respect to any cause of
    action which arose, or any act or omission which occurred, before
    January 1, 1975.
      (2)(A) Except as provided in subparagraph (B), nothing in this
    subchapter shall be construed to exempt or relieve any person from
    any law of any State which regulates insurance, banking, or
    securities.
      (B) Neither an employee benefit plan described in section 1003(a)
    of this title, which is not exempt under section 1003(b) of this
    title (other than a plan established primarily for the purpose of
    providing death benefits), nor any trust established under such a
    plan, shall be deemed to be an insurance company or other insurer,
    bank, trust company, or investment company or to be engaged in the
    business of insurance or banking for purposes of any law of any
    State purporting to regulate insurance companies, insurance
    contracts, banks, trust companies, or investment companies.
      (3) Nothing in this section shall be construed to prohibit use by
    the Secretary of services or facilities of a State agency as
    permitted under section 1136 of this title.
      (4) Subsection (a) of this section shall not apply to any
    generally applicable criminal law of a State.
      (5)(A) Except as provided in subparagraph (B), subsection (a) of
    this section shall not apply to the Hawaii Prepaid Health Care Act
    (Haw. Rev. Stat. Secs. 393-1 through 393-51).
      (B) Nothing in subparagraph (A) shall be construed to exempt from
    subsection (a) of this section - 
        (i) any State tax law relating to employee benefit plans, or
        (ii) any amendment of the Hawaii Prepaid Health Care Act
      enacted after September 2, 1974, to the extent it provides for
      more than the effective administration of such Act as in effect
      on such date.

      (C) Notwithstanding subparagraph (A), parts 1 and 4 of this
    subtitle, and the preceding sections of this part to the extent
    they govern matters which are governed by the provisions of such
    parts 1 and 4, shall supersede the Hawaii Prepaid Health Care Act
    (as in effect on or after January 14, 1983), but the Secretary may
    enter into cooperative arrangements under this paragraph and
    section 1136 of this title with officials of the State of Hawaii to
    assist them in effectuating the policies of provisions of such Act
    which are superseded by such parts 1 and 4 and the preceding
    sections of this part.
      (6)(A) Notwithstanding any other provision of this section - 
        (i) in the case of an employee welfare benefit plan which is a
      multiple employer welfare arrangement and is fully insured (or
      which is a multiple employer welfare arrangement subject to an
      exemption under subparagraph (B)), any law of any State which
      regulates insurance may apply to such arrangement to the extent
      that such law provides - 
          (I) standards, requiring the maintenance of specified levels
        of reserves and specified levels of contributions, which any
        such plan, or any trust established under such a plan, must
        meet in order to be considered under such law able to pay
        benefits in full when due, and
          (II) provisions to enforce such standards, and

        (ii) in the case of any other employee welfare benefit plan
      which is a multiple employer welfare arrangement, in addition to
      this subchapter, any law of any State which regulates insurance
      may apply to the extent not inconsistent with the preceding
      sections of this subchapter.

      (B) The Secretary may, under regulations which may be prescribed
    by the Secretary, exempt from subparagraph (A)(ii), individually or
    by class, multiple employer welfare arrangements which are not
    fully insured. Any such exemption may be granted with respect to
    any arrangement or class of arrangements only if such arrangement
    or each arrangement which is a member of such class meets the
    requirements of section 1002(1) and section 1003 of this title
    necessary to be considered an employee welfare benefit plan to
    which this subchapter applies.
      (C) Nothing in subparagraph (A) shall affect the manner or extent
    to which the provisions of this subchapter apply to an employee
    welfare benefit plan which is not a multiple employer welfare
    arrangement and which is a plan, fund, or program participating in,
    subscribing to, or otherwise using a multiple employer welfare
    arrangement to fund or administer benefits to such plan's
    participants and beneficiaries.
      (D) For purposes of this paragraph, a multiple employer welfare
    arrangement shall be considered fully insured only if the terms of
    the arrangement provide for benefits the amount of all of which the
    Secretary determines are guaranteed under a contract, or policy of
    insurance, issued by an insurance company, insurance service, or
    insurance organization, qualified to conduct business in a State.
      (7) Subsection (a) of this section shall not apply to qualified
    domestic relations orders (within the meaning of section
    1056(d)(3)(B)(i) of this title), qualified medical child support
    orders (within the meaning of section 1169(a)(2)(A) of this title),
    and the provisions of law referred to in section 1169(a)(2)(B)(ii)
    of this title to the extent they apply to qualified medical child
    support orders.
      (8) Subsection (a) of this section shall not be construed to
    preclude any State cause of action - 
        (A) with respect to which the State exercises its acquired
      rights under section 1169(b)(3) of this title with respect to a
      group health plan (as defined in section 1167(1) of this title),
      or
        (B) for recoupment of payment with respect to items or services
      pursuant to a State plan for medical assistance approved under
      title XIX of the Social Security Act [42 U.S.C. 1396 et seq.]
      which would not have been payable if such acquired rights had
      been executed before payment with respect to such items or
      services by the group health plan.

      (9) For additional provisions relating to group health plans, see
    section 1191 of this title.
    (c) Definitions
      For purposes of this section:
        (1) The term "State law" includes all laws, decisions, rules,
      regulations, or other State action having the effect of law, of
      any State. A law of the United States applicable only to the
      District of Columbia shall be treated as a State law rather than
      a law of the United States.
        (2) The term "State" includes a State, any political
      subdivisions thereof, or any agency or instrumentality of either,
      which purports to regulate, directly or indirectly, the terms and
      conditions of employee benefit plans covered by this subchapter.
    (d) Alteration, amendment, modification, invalidation, impairment,
      or supersedure of any law of the United States prohibited
      Nothing in this subchapter shall be construed to alter, amend,
    modify, invalidate, impair, or supersede any law of the United
    States (except as provided in sections 1031 and 1137(b) of this
    title) or any rule or regulation issued under any such law.
    (e) Automatic contribution arrangements
      (1) Notwithstanding any other provision of this section, this
    subchapter shall supersede any law of a State which would directly
    or indirectly prohibit or restrict the inclusion in any plan of an
    automatic contribution arrangement. The Secretary may prescribe
    regulations which would establish minimum standards that such an
    arrangement would be required to satisfy in order for this
    subsection to apply in the case of such arrangement.
      (2) For purposes of this subsection, the term "automatic
    contribution arrangement" means an arrangement - 
        (A) under which a participant may elect to have the plan
      sponsor make payments as contributions under the plan on behalf
      of the participant, or to the participant directly in cash,
        (B) under which a participant is treated as having elected to
      have the plan sponsor make such contributions in an amount equal
      to a uniform percentage of compensation provided under the plan
      until the participant specifically elects not to have such
      contributions made (or specifically elects to have such
      contributions made at a different percentage), and
        (C) under which such contributions are invested in accordance
      with regulations prescribed by the Secretary under section
      1104(c)(5) of this title.

      (3)(A) The plan administrator of an automatic contribution
    arrangement shall, within a reasonable period before such plan
    year, provide to each participant to whom the arrangement applies
    for such plan year notice of the participant's rights and
    obligations under the arrangement which - 
        (i) is sufficiently accurate and comprehensive to apprise the
      participant of such rights and obligations, and
        (ii) is written in a manner calculated to be understood by the
      average participant to whom the arrangement applies.

      (B) A notice shall not be treated as meeting the requirements of
    subparagraph (A) with respect to a participant unless - 
        (i) the notice includes an explanation of the participant's
      right under the arrangement not to have elective contributions
      made on the participant's behalf (or to elect to have such
      contributions made at a different percentage),
        (ii) the participant has a reasonable period of time, after
      receipt of the notice described in clause (i) and before the
      first elective contribution is made, to make such election, and
        (iii) the notice explains how contributions made under the
      arrangement will be invested in the absence of any investment
      election by the participant.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 514, Sept. 2, 1974, 88 Stat. 897;
    Pub. L. 97-473, title III, Secs. 301(a), 302(b), Jan. 14, 1983, 96
    Stat. 2611, 2613; Pub. L. 98-397, title I, Sec. 104(b), Aug. 23,
    1984, 98 Stat. 1436; Pub. L. 99-272, title IX, Sec. 9503(d)(1),
    Apr. 7, 1986, 100 Stat. 207; Pub. L. 101-239, title VII, Sec.
    7894(f)(2)(A), (3)(A), Dec. 19, 1989, 103 Stat. 2450, 2451; Pub. L.
    103-66, title IV, Sec. 4301(c)(4), Aug. 10, 1993, 107 Stat. 377;
    Pub. L. 104-191, title I, Sec. 101(f)(1), Aug. 21, 1996, 110 Stat.
    1953; Pub. L. 104-204, title VI, Sec. 603(b)(3)(G), Sept. 26, 1996,
    110 Stat. 2938; Pub. L. 105-200, title IV, Sec. 401(h)(2)(A)(i),
    (ii), July 16, 1998, 112 Stat. 668; Pub. L. 109-280, title IX, Sec.
    902(f)(1), Aug. 17, 2006, 120 Stat. 1039.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Social Security Act, referred to in subsec. (b)(8)(B), is act
    Aug. 14, 1935, ch. 531, 49 Stat. 620, as amended. Title XIX of the
    Social Security Act is classified generally to subchapter XIX (Sec.
    1396 et seq.) of chapter 7 of Title 42, The Public Health and
    Welfare. For complete classification of this Act to the Code, see
    section 1305 of Title 42 and Tables.


-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (e). Pub. L. 109-280 added subsec. (e).
      1998 - Subsec. (b)(7). Pub. L. 105-200, Sec. 401(h)(2)(A)(ii),
    substituted "they apply to" for "enforced by".
      Pub. L. 105-200, Sec. 401(h)(2)(A)(i), amended directory language
    of Pub. L. 103-66, Sec. 4301(c)(4)(A). See 1993 Amendment note
    below.
      1996 - Subsec. (b)(9). Pub. L. 104-204 made technical amendment
    to reference in original act which appears in text as reference to
    section 1191 of this title.
      Pub. L. 104-191 added par. (9).
      1993 - Subsec. (b)(7). Pub. L. 103-66, Sec. 4301(c)(4)(A), as
    amended by Pub. L. 105-200, Sec. 401(h)(1)(A)(i), inserted ",
    qualified medical child support orders (within the meaning of
    section 1169(a)(2)(A) of this title), and the provisions of law
    referred to in section 1169(a)(2)(B)(ii) of this title to the
    extent enforced by qualified medical child support orders" before
    period at end.
      Subsec. (b)(8). Pub. L. 103-66, Sec. 4301(c)(4)(B), added par.
    (8) and struck out former par. (8) which read as follows:
    "Subsection (a) of this section shall not apply to any State law
    mandating that an employee benefit plan not include any provision
    which has the effect of limiting or excluding coverage or payment
    for any health care for an individual who would otherwise be
    covered or entitled to benefits or services under the terms of the
    employee benefit plan, because that individual is provided, or is
    eligible for, benefits or services pursuant to a plan under title
    XIX of the Social Security Act, to the extent such law is necessary
    for the State to be eligible to receive reimbursement under title
    XIX of that Act."
      1989 - Subsec. (b)(5)(C). Pub. L. 101-239, Sec. 7894(f)(2)(A),
    substituted "by such parts 1 and 4 and the preceding sections of
    this part" for "by such parts".
      Subsec. (b)(6)(B). Pub. L. 101-239, Sec. 7894(f)(3)(A),
    substituted "section 1002(1)" for "section 1002(l)".
      1986 - Subsec. (b)(8). Pub. L. 99-272 added par. (8).
      1984 - Subsec. (b)(7). Pub. L. 98-397 added par. (7).
      1983 - Subsec. (b)(5). Pub. L. 97-473, Sec. 301(a), added par.
    (5).
      Subsec. (b)(6). Pub. L. 97-473, Sec. 302(b), added par. (6).

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Pub. L. 105-200, title IV, Sec. 401(h)(2)(C), July 16, 1998, 112
    Stat. 668, provided that: "The amendments made by subparagraph (A)
    [amending this section and section 1169 of this title] shall be
    effective as if included in the enactment of section 4301(c)(4)(A)
    of the Omnibus Budget Reconciliation Act of 1993 [Pub. L. 103-66]."

                     EFFECTIVE DATE OF 1996 AMENDMENTS                 
      Amendment by Pub. L. 104-204 applicable with respect to group
    health plans for plan years beginning on or after Jan. 1, 1998, see
    section 603(c) of Pub. L. 104-204, set out as a note under section
    1003 of this title.
      Amendment by Pub. L. 104-191 applicable with respect to group
    health plans for plan years beginning after June 30, 1997, except
    as otherwise provided, see section 101(g) of Pub. L. 104-191, set
    out as a note under section 1181 of this title.

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Section 7894(f)(2)(B) of Pub. L. 101-239 provided that: "The
    amendment made by this paragraph [amending this section] shall take
    effect as if included in section 301 of Public Law 97-473."
      Section 7894(f)(3)(B) of Pub. L. 101-239 provided that: "The
    amendments made by this paragraph [amending this section] shall
    take effect as if included in section 302 of Public Law 97-473."

                     EFFECTIVE DATE OF 1986 AMENDMENT                 
      Section 9503(d)(2) of Pub. L. 99-272 provided that:
      "(2)(A) Except as provided in subparagraph (B), the amendment
    made by paragraph (1) [amending this section] shall become
    effective on October 1, 1986.
      "(B) In the case of a plan maintained pursuant to one or more
    collective bargaining agreements between employee representatives
    and one or more employers ratified on or before the date of the
    enactment of this Act [Apr. 7, 1986], the amendment made by
    paragraph (1) shall become effective on the later of - 
        "(i) October 1, 1986; or
        "(ii) the earlier of - 
          "(I) the date on which the last of the collective bargaining
        agreements under which the plan is maintained, which were in
        effect on the date of the enactment of this Act, terminates
        (determined without regard to any extension thereof agreed to
        after the date of the enactment of this Act); or
          "(II) three years after the date of the enactment of this
        Act."

                     EFFECTIVE DATE OF 1984 AMENDMENT                 
      Amendment by Pub. L. 98-397 effective Jan. 1, 1985, except as
    otherwise provided, see section 303(d) of Pub. L. 98-397, set out
    as a note under section 1001 of this title.

                     EFFECTIVE DATE OF 1983 AMENDMENT                 
      Section 301(c) of Pub. L. 97-473 provided that: "The amendment
    made by this section [amending this section] shall take effect on
    the date of the enactment of this Act [Jan. 14, 1983]."
      Amendment by section 302(b) of Pub. L. 97-473 effective Jan. 14,
    1983, see section 302(c) of Pub. L. 97-473, set out as a note under
    section 1002 of this title.

                                REGULATIONS                            
      Secretary authorized, effective Sept. 2, 1974, to promulgate
    regulations wherever provisions of this subchapter call for the
    promulgation of regulations, see section 1031 of this title.

            PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1994        
      For provisions setting forth circumstances under which any
    amendment to a plan required to be made by an amendment made by
    section 4301 of Pub. L. 103-66 shall not be required to be made
    before the first plan year beginning on or after Jan. 1, 1994, see
    section 4301(d) of Pub. L. 103-66, set out as an Effective Date of
    1993 Amendment note under section 1021 of this title.

                       TREATMENT OF OTHER STATE LAWS                   
      Section 301(b) of Pub. L. 97-473 provided that: "The amendment
    made by this section [amending this section] shall not be
    considered a precedent with respect to extending such amendment to
    any other State law."

-End-



-CITE-
    29 USC Sec. 1144a                                           01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 5 - administration and enforcement

-HEAD-
    Sec. 1144a. Clarification of church welfare plan status under State
      insurance law

-STATUTE-
    (a) In general
      For purposes of determining the status of a church plan that is a
    welfare plan under provisions of a State insurance law described in
    subsection (b) of this section, such a church plan (and any trust
    under such plan) shall be deemed to be a plan sponsored by a single
    employer that reimburses costs from general church assets, or
    purchases insurance coverage with general church assets, or both.
    (b) State insurance law
      A State insurance law described in this subsection is a law that -
     
        (1) requires a church plan, or an organization described in
      section 414(e)(3)(A) of title 26 and section 1002(33)(C)(i) of
      this title to the extent that it is administering or funding such
      a plan, to be licensed; or
        (2) relates solely to the solvency or insolvency of a church
      plan (including participation in State guaranty funds and
      associations).
    (c) Definitions
      For purposes of this section:
      (1) Church plan
        The term "church plan" has the meaning given such term by
      section 414(e) of title 26 and section 1002(33) of this title.
      (2) Reimburses costs from general church assets
        The term "reimburses costs from general church assets" means
      engaging in an activity that is not the spreading of risk solely
      for the purposes of the provisions of State insurance laws
      described in subsection (b) of this section.
      (3) Welfare plan
        The term "welfare plan" - 
          (A) means any church plan to the extent that such plan
        provides medical, surgical, or hospital care or benefits, or
        benefits in the event of sickness, accident, disability, death
        or unemployment, or vacation benefits, apprenticeship or other
        training programs, or day care centers, scholarship funds, or
        prepaid legal services; and
          (B) does not include any entity, such as a health insurance
        issuer described in section 9832(b)(2) of title 26 or a health
        maintenance organization described in section 9832(b)(3) of
        title 26, or any other organization that does business with the
        church plan or organization sponsoring or maintaining such a
        plan.
    (d) Enforcement authority
      Notwithstanding any other provision of this section, for purposes
    of enforcing provisions of State insurance laws that apply to a
    church plan that is a welfare plan, the church plan shall be
    subject to State enforcement as if the church plan were an insurer
    licensed by the State.
    (e) Application of section
      Except as provided in subsection (d) of this section, the
    application of this section is limited to determining the status of
    a church plan that is a welfare plan under the provisions of State
    insurance laws described in subsection (b) of this section. This
    section shall not otherwise be construed to recharacterize the
    status, or modify or affect the rights, of any plan participant or
    beneficiary, including participants or beneficiaries who make plan
    contributions.

-SOURCE-
    (Pub. L. 106-244, Sec. 2, July 10, 2000, 114 Stat. 499.)

-COD-
                               CODIFICATION                           
      Section was not enacted as part of the Employee Retirement Income
    Security Act of 1974 which comprises this chapter.


-MISC1-
                                  PURPOSE                              
      Pub. L. 106-244, Sec. 1, July 10, 2000, 114 Stat. 499, provided
    that: "The purpose of this Act [enacting this section] is only to
    clarify the application to a church plan that is a welfare plan of
    State insurance laws that require or solely relate to licensing,
    solvency, insolvency, or the status of such plan as a single
    employer plan."

-End-



-CITE-
    29 USC Sec. 1145                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 5 - administration and enforcement

-HEAD-
    Sec. 1145. Delinquent contributions

-STATUTE-
      Every employer who is obligated to make contributions to a
    multiemployer plan under the terms of the plan or under the terms
    of a collectively bargained agreement shall, to the extent not
    inconsistent with law, make such contributions in accordance with
    the terms and conditions of such plan or such agreement.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 515, as added Pub. L. 96-364, title
    III, Sec. 306(a), Sept. 26, 1980, 94 Stat. 1295.)


-MISC1-
                              EFFECTIVE DATE                          
      Section effective Sept. 26, 1980, except as specifically
    provided, see section 1461(e) of this title.

-End-



-CITE-
    29 USC Sec. 1146                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 5 - administration and enforcement

-HEAD-
    Sec. 1146. Outreach to promote retirement income savings

-STATUTE-
    (a) In general
      The Secretary shall maintain an ongoing program of outreach to
    the public designed to effectively promote retirement income
    savings by the public.
    (b) Methods
      The Secretary shall carry out the requirements of subsection (a)
    of this section by means which shall ensure effective communication
    to the public, including publication of public service
    announcements, public meetings, creation of educational materials,
    and establishment of a site on the Internet.
    (c) Information to be made available
      The information to be made available by the Secretary as part of
    the program of outreach required under subsection (a) of this
    section shall include the following:
        (1) a description of the vehicles currently available to
      individuals and employers for creating and maintaining retirement
      income savings, specifically including information explaining to
      employers, in simple terms, the characteristics and operation of
      the different retirement savings vehicles, including the steps to
      establish each such vehicle; and
        (2) information regarding matters relevant to establishing
      retirement income savings, such as - 
          (A) the forms of retirement income savings;
          (B) the concept of compound interest;
          (C) the importance of commencing savings early in life;
          (D) savings principles;
          (E) the importance of prudence and diversification in
        investing;
          (F) the importance of the timing of investments; and
          (G) the impact on retirement savings of life's uncertainties,
        such as living beyond one's life expectancy.
    (d) Establishment of site on Internet
      The Secretary shall establish a permanent site on the Internet
    concerning retirement income savings. The site shall contain at
    least the following information:
        (1) a means for individuals to calculate their estimated
      retirement savings needs, based on their retirement income goal
      as a percentage of their preretirement income;
        (2) a description in simple terms of the common types of
      retirement income savings arrangements available to both
      individuals and employers (specifically including small
      employers), including information on the amount of money that can
      be placed into a given vehicle, the tax treatment of the money,
      the amount of accumulation possible through different typical
      investment options and interest rate projections, and a directory
      of resources of more descriptive information;
        (3) materials explaining to employers in simple terms, the
      characteristics and operation of the different retirement savings
      arrangements for their workers and what the basic legal
      requirements are under this chapter and the Internal Revenue Code
      of 1986, including the steps to establish each such arrangement;
        (4) copies of all educational materials developed by the
      Department of Labor, and by other Federal agencies in
      consultation with such Department, to promote retirement income
      savings by workers and employers; and
        (5) links to other sites maintained on the Internet by
      governmental agencies and nonprofit organizations that provide
      additional detail on retirement income savings arrangements and
      related topics on savings or investing.
    (e) Coordination
      The Secretary shall coordinate the outreach program under this
    section with similar efforts undertaken by other public and private
    entities.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 516, as added Pub. L. 105-92, Sec.
    3(a), Nov. 19, 1997, 111 Stat. 2139.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This chapter, referred to in subsec. (d)(3), was in the original
    "this Act", meaning Pub. L. 93-406, known as the Employee
    Retirement Income Security Act of 1974. Titles I, III, and IV of
    such Act are classified principally to this chapter. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 1001 of this title and Tables.
      The Internal Revenue Code of 1986, referred to in subsec. (d)(3),
    is classified generally to Title 26, Internal Revenue Code.


-MISC1-
                           FINDINGS AND PURPOSE                       
      Section 2 of Pub. L. 105-92 provided that:
      "(a) Findings. - The Congress finds as follows:
        "(1) The impending retirement of the baby boom generation will
      severely strain our already overburdened entitlement system,
      necessitating increased reliance on pension and other personal
      savings.
        "(2) Studies have found that less than a third of Americans
      have even tried to calculate how much they will need to have
      saved by retirement, and that less than 20 percent are very
      confident they will have enough money to live comfortably
      throughout their retirement.
        "(3) A leading obstacle to expanding retirement savings is the
      simple fact that far too many Americans - particularly the young -
       are either unaware of, or without the knowledge and resources
      necessary to take advantage of, the extensive benefits offered by
      our retirement savings system.
      "(b) Purpose. - It is the purpose of this Act [see Short Title of
    1997 Amendment note, set out under section 1001 of this title] - 
        "(1) to advance the public's knowledge and understanding of
      retirement savings and its critical importance to the future well-
      being of American workers and their families;
        "(2) to provide for a periodic, bipartisan national retirement
      savings summit in conjunction with the White House to elevate the
      issue of savings to national prominence; and
        "(3) to initiate the development of a broad-based, public
      education program to encourage and enhance individual commitment
      to a personal retirement savings strategy."

-End-



-CITE-
    29 USC Sec. 1147                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 5 - administration and enforcement

-HEAD-
    Sec. 1147. National Summit on Retirement Savings

-STATUTE-
    (a) Authority to call Summit
      Not later than July 15, 1998, the President shall convene a
    National Summit on Retirement Income Savings at the White House, to
    be co-hosted by the President and the Speaker and the Minority
    Leader of the House of Representatives and the Majority Leader and
    Minority Leader of the Senate. Such a National Summit shall be
    convened thereafter in 2001 and 2005 on or after September 1 of
    each year involved. Such a National Summit shall - 
        (1) advance the public's knowledge and understanding of
      retirement savings and its critical importance to the future well-
      being of American workers and their families;
        (2) facilitate the development of a broad-based, public
      education program to encourage and enhance individual commitment
      to a personal retirement savings strategy;
        (3) develop recommendations for additional research, reforms,
      and actions in the field of private pensions and individual
      retirement savings; and
        (4) disseminate the report of, and information obtained by, the
      National Summit and exhibit materials and works of the National
      Summit.
    (b) Planning and direction
      The National Summit shall be planned and conducted under the
    direction of the Secretary, in consultation with, and with the
    assistance of, the heads of such other Federal departments and
    agencies as the President may designate. Such assistance may
    include the assignment of personnel. The Secretary shall, in
    planning and conducting the National Summit, consult with the
    congressional leaders specified in subsection (e)(2) of this
    section. The Secretary shall also, in carrying out the Secretary's
    duties under this subsection, consult and coordinate with at least
    one organization made up of private sector businesses and
    associations partnered with Government entities to promote long-
    term financial security in retirement through savings.
    (c) Purpose of National Summit
      The purpose of the National Summit shall be - 
        (1) to increase the public awareness of the value of personal
      savings for retirement;
        (2) to advance the public's knowledge and understanding of
      retirement savings and its critical importance to the future well-
      being of American workers and their families;
        (3) to facilitate the development of a broad-based, public
      education program to encourage and enhance individual commitment
      to a personal retirement savings strategy;
        (4) to identify the problems workers have in setting aside
      adequate savings for retirement;
        (5) to identify the barriers which employers, especially small
      employers, face in assisting their workers in accumulating
      retirement savings;
        (6) to examine the impact and effectiveness of individual
      employers to promote personal savings for retirement among their
      workers and to promote participation in company savings options;
        (7) to examine the impact and effectiveness of government
      programs at the Federal, State, and local levels to educate the
      public about, and to encourage, retirement income savings;
        (8) to develop such specific and comprehensive recommendations
      for the legislative and executive branches of the Government and
      for private sector action as may be appropriate for promoting
      private pensions and individual retirement savings; and
        (9) to develop recommendations for the coordination of Federal,
      State, and local retirement income savings initiatives among the
      Federal, State, and local levels of government and for the
      coordination of such initiatives.
    (d) Scope of National Summit
      The scope of the National Summit shall consist of issues relating
    to individual and employer-based retirement savings and shall not
    include issues relating to the old-age, survivors, and disability
    insurance program under title II of the Social Security Act [42
    U.S.C. 401 et seq.].
    (e) National Summit participants
      (1) In general
        To carry out the purposes of the National Summit, the National
      Summit shall bring together - 
          (A) professionals and other individuals working in the fields
        of employee benefits and retirement savings;
          (B) Members of Congress and officials in the executive
        branch;
          (C) representatives of State and local governments;
          (D) representatives of private sector institutions, including
        individual employers, concerned about promoting the issue of
        retirement savings and facilitating savings among American
        workers; and
          (E) representatives of the general public.
      (2) Statutorily required participation
        The participants in the National Summit shall include the
      following individuals or their designees:
          (A) the Speaker and the Minority Leader of the House of
        Representatives;
          (B) the Majority Leader and the Minority Leader of the
        Senate;
          (C) the Chairman and ranking Member of the Committee on
        Education and the Workforce of the House of Representatives;
          (D) the Chairman and ranking Member of the Committee on Labor
        and Human Resources of the Senate;
          (E) the Chairman and ranking Member of the Special Committee
        on Aging of the Senate;
          (F) the Chairman and ranking Member of the Subcommittees on
        Labor, Health and Human Services, and Education of the Senate
        and House of Representatives; and
          (G) the parties referred to in subsection (b) of this
        section.
      (3) Additional participants
        (A) In general
          There shall be not more than 200 additional participants. Of
        such additional participants - 
            (i) one-half shall be appointed by the President, in
          consultation with the elected leaders of the President's
          party in Congress (either the Speaker of the House of
          Representatives or the Minority Leader of the House of
          Representatives, and either the Majority Leader or the
          Minority Leader of the Senate; (!1) and

            (ii) one-half shall be appointed by the elected leaders of
          Congress of the party to which the President does not belong
          (one-half of that allotment to be appointed by either the
          Speaker of the House of Representatives or the Minority
          Leader of the House of Representatives, and one-half of that
          allotment to be appointed by either the Majority Leader or
          the Minority Leader of the Senate).
        (B) Appointment requirements
          The additional participants described in subparagraph (A)
        shall be - 
            (i) appointed not later than January 31, 1998;
            (ii) selected without regard to political affiliation or
          past partisan activity; and
            (iii) representative of the diversity of thought in the
          fields of employee benefits and retirement income savings.
      (4) Presiding officers
        The National Summit shall be presided over equally by
      representatives of the executive and legislative branches.
    (f) National Summit administration
      (1) Administration
        In administering this section, the Secretary shall - 
          (A) request the cooperation and assistance of such other
        Federal departments and agencies and other parties referred to
        in subsection (b) of this section as may be appropriate in the
        carrying out of this section;
          (B) furnish all reasonable assistance to State agencies, area
        agencies, and other appropriate organizations to enable them to
        organize and conduct conferences in conjunction with the
        National Summit;
          (C) make available for public comment a proposed agenda for
        the National Summit that reflects to the greatest extent
        possible the purposes for the National Summit set out in this
        section;
          (D) prepare and make available background materials for the
        use of participants in the National Summit that the Secretary
        considers necessary; and
          (E) appoint and fix the pay of such additional personnel as
        may be necessary to carry out the provisions of this section
        without regard to provisions of title 5 governing appointments
        in the competitive service, and without regard to chapter 51
        and subchapter III of chapter 53 of such title relating to
        classification and General Schedule pay rates.
      (2) Duties
        The Secretary shall, in carrying out the responsibilities and
      functions of the Secretary under this section, and as part of the
      National Summit, ensure that - 
          (A) the National Summit shall be conducted in a manner that
        ensures broad participation of Federal, State, and local
        agencies and private organizations, professionals, and others
        involved in retirement income savings and provides a strong
        basis for assistance to be provided under paragraph (1)(B);
          (B) the agenda prepared under paragraph (1)(C) for the
        National Summit is published in the Federal Register; and
          (C) the personnel appointed under paragraph (1)(E) shall be
        fairly balanced in terms of points of views represented and
        shall be appointed without regard to political affiliation or
        previous partisan activities.
      (3) Nonapplication of FACA
        The provisions of the Federal Advisory Committee Act (5 U.S.C.
      App.) shall not apply to the National Summit.
    (g) Report
      The Secretary shall prepare a report describing the activities of
    the National Summit and shall submit the report to the President,
    the Speaker and Minority Leader of the House of Representatives,
    the Majority and Minority Leaders of the Senate, and the chief
    executive officers of the States not later than 90 days after the
    date on which the National Summit is adjourned.
    (h) "State" defined
      For purposes of this section, the term "State" means a State, the
    District of Columbia, the Commonwealth of Puerto Rico, the
    Commonwealth of the Northern Mariana Islands, Guam, the Virgin
    Islands, American Samoa, and any other territory or possession of
    the United States.
    (i) Authorization of appropriations
      (1) In general
        There is authorized to be appropriated for fiscal years
      beginning on or after October 1, 1997, such sums as are necessary
      to carry out this section.
      (2) Authorization to accept private contributions
        In order to facilitate the National Summit as a public-private
      partnership, the Secretary may accept private contributions, in
      the form of money, supplies, or services, to defray the costs of
      the National Summit.
    (j) Financial obligation for fiscal year 1998
      The financial obligation for the Department of Labor for fiscal
    year 1998 shall not exceed the lesser of - 
        (1) one-half of the costs of the National Summit; or
        (2) $250,000.

    The private sector organization described in subsection (b) of this
    section and contracted with by the Secretary shall be obligated for
    the balance of the cost of the National Summit.
    (k) Contracts
      The Secretary may enter into contracts to carry out the
    Secretary's responsibilities under this section. The Secretary
    shall enter into a contract on a sole-source basis to ensure the
    timely completion of the National Summit in fiscal year 1998.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 517, as added Pub. L. 105-92, Sec.
    4(a), Nov. 19, 1997, 111 Stat. 2141.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Social Security Act, referred to in subsec. (d), is act Aug.
    14, 1935, ch. 531, 49 Stat. 620, as amended. Title II of the Act is
    classified generally to subchapter II (Sec. 401 et seq.) of chapter
    7 of Title 42, The Public Health and Welfare. For complete
    classification of this Act to the Code, see section 1305 of Title
    42 and Tables.
      The provisions of title 5 governing appointments in the
    competitive service, referred to in subsec. (f)(1)(E), are
    classified generally to section 3301 et seq. of Title 5, Government
    Organization and Employees.
      The Federal Advisory Committee Act, referred to in subsec.
    (f)(3), is Pub. L. 92-463, Oct. 6, 1972, 86 Stat. 770, as amended,
    which is set out in the Appendix to Title 5, Government
    Organization and Employees.

-CHANGE-
                              CHANGE OF NAME                          
      Committee on Labor and Human Resources of Senate changed to
    Committee on Health, Education, Labor, and Pensions of Senate by
    Senate Resolution No. 20, One Hundred Sixth Congress, Jan. 19,
    1999.

-FOOTNOTE-
    (!1) So in original. A closing parenthesis probably should precede
         the semicolon.


-End-



-CITE-
    29 USC Sec. 1148                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 5 - administration and enforcement

-HEAD-
    Sec. 1148. Authority to postpone certain deadlines by reason of
      Presidentially declared disaster or terroristic or military
      actions

-STATUTE-
      In the case of a pension or other employee benefit plan, or any
    sponsor, administrator, participant, beneficiary, or other person
    with respect to such plan, affected by a Presidentially declared
    disaster (as defined in section 1033(h)(3) of title 26) or a
    terroristic or military action (as defined in section 692(c)(2) of
    such title), the Secretary may, notwithstanding any other provision
    of law, prescribe, by notice or otherwise, a period of up to 1 year
    which may be disregarded in determining the date by which any
    action is required or permitted to be completed under this chapter.
    No plan shall be treated as failing to be operated in accordance
    with the terms of the plan solely as the result of disregarding any
    period by reason of the preceding sentence.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 518, as added Pub. L. 107-134, title
    I, Sec. 112(c)(1), Jan. 23, 2002, 115 Stat. 2434.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This chapter, referred to in text, was in the original "this
    Act", meaning Pub. L. 93-406, known as the Employee Retirement
    Income Security Act of 1974. Titles I, III, and IV of such Act are
    classified principally to this chapter. For complete classification
    of this Act to the Code, see Short Title note set out under section
    1001 of this title and Tables.


-MISC1-
                              EFFECTIVE DATE                          
      Section applicable to disasters and terroristic or military
    actions occurring on or after Sept. 11, 2001, with respect to any
    action of the Secretary of the Treasury, the Secretary of Labor, or
    the Pension Benefit Guaranty Corporation occurring on or after Jan.
    23, 2002, see section 112(f) of Pub. L. 107-134, set out as an
    Effective Date of 2002 Amendment note under section 6081 of Title
    26, Internal Revenue Code.

-End-


-CITE-
    29 USC part 6 - continuation coverage and additional
                     standards for group health plans      01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 6 - continuation coverage and additional standards for group
              health plans                            

-HEAD-
     PART 6 - CONTINUATION COVERAGE AND ADDITIONAL STANDARDS FOR GROUP
                               HEALTH PLANS

-End-



-CITE-
    29 USC Sec. 1161                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 6 - continuation coverage and additional standards for group
              health plans                            

-HEAD-
    Sec. 1161. Plans must provide continuation coverage to certain
      individuals

-STATUTE-
    (a) In general
      The plan sponsor of each group health plan shall provide, in
    accordance with this part, that each qualified beneficiary who
    would lose coverage under the plan as a result of a qualifying
    event is entitled, under the plan, to elect, within the election
    period, continuation coverage under the plan.
    (b) Exception for certain plans
      Subsection (a) of this section shall not apply to any group
    health plan for any calendar year if all employers maintaining such
    plan normally employed fewer than 20 employees on a typical
    business day during the preceding calendar year.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 601, as added Pub. L. 99-272, title
    X, Sec. 10002(a), Apr. 7, 1986, 100 Stat. 227; amended Pub. L. 101-
    239, title VII, Secs. 7862(c)(1)(B), 7891(a)(1), Dec. 19, 1989,
    103 Stat. 2432, 2445.)


-MISC1-
                                AMENDMENTS                            
      1989 - Subsec. (b). Pub. L. 101-239 struck out at end "Under
    regulations, rules similar to the rules of subsections (a) and (b)
    of section 52 of title 26 (relating to employers under common
    control) shall apply for purposes of this subsection."
      Pub. L. 101-239, Sec. 7891(a)(1), substituted "Internal Revenue
    Code of 1986" for "Internal Revenue Code of 1954", which for
    purposes of codification was translated as "title 26" thus
    requiring no change in text.

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by section 7862(c)(1)(B) of Pub. L. 101-239 applicable
    to years beginning after Dec. 31, 1986, see section 7862(c)(1)(C)
    of Pub. L. 101-239, set out as a note under section 106 of Title
    26, Internal Revenue Code.
      Amendment by section 7891(a)(1) of Pub. L. 101-239 effective,
    except as otherwise provided, as if included in the provision of
    the Tax Reform Act of 1986, Pub. L. 99-514, to which such amendment
    relates, see section 7891(f) of Pub. L. 101-239, set out as a note
    under section 1002 of this title.

                              EFFECTIVE DATE                          
      Section 10002(d) of Pub. L. 99-272 provided that:
      "(1) General rule. - The amendments made by this section
    [enacting this part and amending section 1132 of this title] shall
    apply to plan years beginning on or after July 1, 1986.
      "(2) Special rule for collective bargaining agreements. - In the
    case of a group health plan maintained pursuant to one or more
    collective bargaining agreements between employee representatives
    and one or more employers ratified before the date of the enactment
    of this Act [Apr. 7, 1986], the amendments made by this section
    shall not apply to plan years beginning before the later of - 
        "(A) the date on which the last of the collective bargaining
      agreements relating to the plan terminates (determined without
      regard to any extension thereof agreed to after the date of the
      enactment of this Act), or
        "(B) January 1, 1987.
    For purposes of subparagraph (A), any plan amendment made pursuant
    to a collective bargaining agreement relating to the plan which
    amends the plan solely to conform to any requirement added by this
    section shall not be treated as a termination of such collective
    bargaining agreement."

-End-



-CITE-
    29 USC Sec. 1162                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 6 - continuation coverage and additional standards for group
              health plans                            

-HEAD-
    Sec. 1162. Continuation coverage

-STATUTE-
      For purposes of section 1161 of this title, the term
    "continuation coverage" means coverage under the plan which meets
    the following requirements:
      (1) Type of benefit coverage
        The coverage must consist of coverage which, as of the time the
      coverage is being provided, is identical to the coverage provided
      under the plan to similarly situated beneficiaries under the plan
      with respect to whom a qualifying event has not occurred. If
      coverage is modified under the plan for any group of similarly
      situated beneficiaries, such coverage shall also be modified in
      the same manner for all individuals who are qualified
      beneficiaries under the plan pursuant to this part in connection
      with such group.
      (2) Period of coverage
        The coverage must extend for at least the period beginning on
      the date of the qualifying event and ending not earlier than the
      earliest of the following:
        (A) Maximum required period
          (i) General rule for terminations and reduced hours
            In the case of a qualifying event described in section
          1163(2) of this title, except as provided in clause (ii), the
          date which is 18 months after the date of the qualifying
          event.
          (ii) Special rule for multiple qualifying events
            If a qualifying event (other than a qualifying event
          described in section 1163(6) of this title) occurs during the
          18 months after the date of a qualifying event described in
          section 1163(2) of this title, the date which is 36 months
          after the date of the qualifying event described in section
          1163(2) of this title.
          (iii) Special rule for certain bankruptcy proceedings
            In the case of a qualifying event described in section
          1163(6) of this title (relating to bankruptcy proceedings),
          the date of the death of the covered employee or qualified
          beneficiary (described in section 1167(3)(C)(iii) of this
          title), or in the case of the surviving spouse or dependent
          children of the covered employee, 36 months after the date of
          the death of the covered employee.
          (iv) General rule for other qualifying events
            In the case of a qualifying event not described in section
          1163(2) or 1163(6) of this title, the date which is 36 months
          after the date of the qualifying event.
          (v) Medicare entitlement followed by qualifying event
            In the case of a qualifying event described in section
          1163(2) of this title that occurs less than 18 months after
          the date the covered employee became entitled to benefits
          under title XVIII of the Social Security Act [42 U.S.C. 1395
          et seq.], the period of coverage for qualified beneficiaries
          other than the covered employee shall not terminate under
          this subparagraph before the close of the 36-month period
          beginning on the date the covered employee became so
          entitled.

        In the case of a qualified beneficiary who is determined, under
        title II or XVI of the Social Security Act [42 U.S.C. 401 et
        seq., 1381 et seq.], to have been disabled at any time during
        the first 60 days of continuation coverage under this part, any
        reference in clause (i) or (ii) to 18 months is deemed a
        reference to 29 months (with respect to all qualified
        beneficiaries), but only if the qualified beneficiary has
        provided notice of such determination under section 1166(3)
        (!1) of this title before the end of such 18 months.

        (B) End of plan
          The date on which the employer ceases to provide any group
        health plan to any employee.
        (C) Failure to pay premium
          The date on which coverage ceases under the plan by reason of
        a failure to make timely payment of any premium required under
        the plan with respect to the qualified beneficiary. The payment
        of any premium (other than any payment referred to in the last
        sentence of paragraph (3)) shall be considered to be timely if
        made within 30 days after the date due or within such longer
        period as applies to or under the plan.
        (D) Group health plan coverage or medicare entitlement
          The date on which the qualified beneficiary first becomes,
        after the date of the election - 
            (i) covered under any other group health plan (as an
          employee or otherwise) which does not contain any exclusion
          or limitation with respect to any preexisting condition of
          such beneficiary (other than such an exclusion or limitation
          which does not apply to (or is satisfied by) such beneficiary
          by reason of chapter 100 of title 26, part 7 of this
          subtitle, or title XXVII of the Public Health Service Act [42
          U.S.C. 300gg et seq.]), or
            (ii) in the case of a qualified beneficiary other than a
          qualified beneficiary described in section 1167(3)(C) of this
          title, entitled to benefits under title XVIII of the Social
          Security Act [42 U.S.C. 1395 et seq.].
        (E) Termination of extended coverage for disability
          In the case of a qualified beneficiary who is disabled at any
        time during the first 60 days of continuation coverage under
        this part, the month that begins more than 30 days after the
        date of the final determination under title II or XVI of the
        Social Security Act [42 U.S.C. 401 et seq., 1381 et seq.] that
        the qualified beneficiary is no longer disabled.
      (3) Premium requirements
        The plan may require payment of a premium for any period of
      continuation coverage, except that such premium - 
          (A) shall not exceed 102 percent of the applicable premium
        for such period, and
          (B) may, at the election of the payor, be made in monthly
        installments.

      In no event may the plan require the payment of any premium
      before the day which is 45 days after the day on which the
      qualified beneficiary made the initial election for continuation
      coverage. In the case of an individual described in the last
      sentence of paragraph (2)(A), any reference in subparagraph (A)
      of this paragraph to "102 percent" is deemed a reference to "150
      percent" for any month after the 18th month of continuation
      coverage described in clause (i) or (ii) of paragraph (2)(A).
      (4) No requirement of insurability
        The coverage may not be conditioned upon, or discriminate on
      the basis of lack of, evidence of insurability.
      (5) Conversion option
        In the case of a qualified beneficiary whose period of
      continuation coverage expires under paragraph (2)(A), the plan
      must, during the 180-day period ending on such expiration date,
      provide to the qualified beneficiary the option of enrollment
      under a conversion health plan otherwise generally available
      under the plan.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 602, as added Pub. L. 99-272, title
    X, Sec. 10002(a), Apr. 7, 1986, 100 Stat. 228; amended Pub. L. 99-
    509, title IX, Sec. 9501(b)(1)(B), (2)(B), Oct. 21, 1986, 100
    Stat. 2076, 2077; Pub. L. 99-514, title XVIII, Sec. 1895(d)(1)(B),
    (2)(B), (3)(B), (4)(B), Oct. 22, 1986, 100 Stat. 2936-2938; Pub. L.
    101-239, title VI, Sec. 6703(a), (b), title VII, Secs.
    7862(c)(3)(B), (4)(A), (5)(B), 7871(c), Dec. 19, 1989, 103 Stat.
    2296, 2432, 2433, 2435; Pub. L. 104-188, title I, Sec.
    1704(g)(1)(B), Aug. 20, 1996, 110 Stat. 1880; Pub. L. 104-191,
    title IV, Sec. 421(b)(1), Aug. 21, 1996, 110 Stat. 2088.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Social Security Act, referred to in par. (2)(A), (D)(ii),
    (E), is act Aug. 14, 1935, ch. 531, 49 Stat. 620, as amended.
    Titles II, XVI, and XVIII of the Social Security Act are classified
    generally to subchapters II (Sec. 401 et seq.), XVI (Sec. 1381 et
    seq.), and XVIII (Sec. 1395 et seq.), respectively, of chapter 7 of
    Title 42, The Public Health and Welfare. For complete
    classification of this Act to the Code, see section 1305 of Title
    42 and Tables.
      Section 1166(3) of this title, referred to in par. (2)(A), was
    redesignated as section 1166(a)(3) of this title by Pub. L. 101-
    239, title VII, Sec. 7891(d)(1)(A)(ii)(I), Dec. 19, 1989, 103
    Stat. 2445.
      The Public Health Service Act, referred to in par. (2)(D)(i), is
    act July 1, 1944, ch. 373, 58 Stat. 682, as amended. Title XXVII of
    the Act is classified generally to subchapter XXV (Sec. 300gg et
    seq.) of chapter 6A of Title 42, The Public Health and Welfare. For
    complete classification of this Act to the Code, see Short Title
    note set out under section 201 of Title 42 and Tables.


-MISC1-
                                AMENDMENTS                            
      1996 - Par. (2)(A). Pub. L. 104-191, Sec. 421(b)(1)(A), in
    closing provisions, substituted "In the case of a qualified
    beneficiary" for "In the case of an individual" and "at any time
    during the first 60 days of continuation coverage under this part"
    for "at the time of a qualifying event described in section 1163(2)
    of this title", struck out "with respect to such event" after "(ii)
    to 18 months", and inserted "(with respect to all qualified
    beneficiaries)" after "29 months".
      Par. (2)(A)(v). Pub. L. 104-188 amended cl. (v) generally. Prior
    to amendment, cl. (v) read as follows:
      "(v) Qualifying event involving medicare entitlement. - In the
    case of an event described in section 1163(4) of this title
    (without regard to whether such event is a qualifying event), the
    period of coverage for qualified beneficiaries other than the
    covered employee for such event or any subsequent qualifying event
    shall not terminate before the close of the 36-month period
    beginning on the date the covered employee becomes entitled to
    benefits under title XVIII of the Social Security Act."
      Par. (2)(D)(i). Pub. L. 104-191, Sec. 421(b)(1)(B), inserted
    "(other than such an exclusion or limitation which does not apply
    to (or is satisfied by) such beneficiary by reason of chapter 100
    of title 26, part 7 of this subtitle, or title XXVII of the Public
    Health Service Act [42 U.S.C. 300gg et seq.])" before ", or" at
    end.
      Par. (2)(E). Pub. L. 104-191, Sec. 421(b)(1)(C), substituted "at
    any time during the first 60 days of continuation coverage under
    this part" for "at the time of a qualifying event described in
    section 1163(2) of this title".
      1989 - Par. (2)(A). Pub. L. 101-239, Sec. 6703(a)(1), inserted
    after and below cl. (iv) "In the case of an individual who is
    determined, under title II or XVI of the Social Security Act, to
    have been disabled at the time of a qualifying event described in
    section 1163(2) of this title, any reference in clause (i) or (ii)
    to 18 months with respect to such event is deemed a reference to 29
    months, but only if the qualified beneficiary has provided notice
    of such determination under section 1166(3) of this title before
    the end of such 18 months."
      Par. (2)(A)(iii). Pub. L. 101-239, Sec. 7871(c), substituted
    "described in section 1163(6)" for "described in 1163(6)".
      Par. (2)(A)(v). Pub. L. 101-239, Sec. 7862(c)(5)(B), which
    directed the insertion of cl. (v) "at the end" of par. (2)(A), was
    executed by inserting cl. (v) after cl. (iv), to reflect the
    probable intent of Congress.
      Par. (2)(D). Pub. L. 101-239, Sec. 7862(c)(3)(B), substituted
    "entitlement" for "eligibility" in heading and inserted "which does
    not contain any exclusion or limitation with respect to any
    preexisting condition of such beneficiary" after "or otherwise)" in
    cl. (i).
      Par. (2)(E). Pub. L. 101-239, Sec. 6703(a)(2), added subpar. (E).
      Par. (3). Pub. L. 101-239, Sec. 7862(c)(4)(A), which directed
    substitution of "In no event may the plan require the payment of
    any premium before the day which is 45 days after the day on which
    the qualified beneficiary made the initial election for
    continuation coverage." for last sentence of par. (3), was executed
    by making the substitution for the following sentence: "If an
    election is made after the qualifying event, the plan shall permit
    payment for continuation coverage during the period preceding the
    election to be made within 45 days of the date of the election.",
    notwithstanding the sentence added at the end of par. (3) by Pub.
    L. 101-239, Sec. 6703(b).
      Pub. L. 101-239, Sec. 6703(b), inserted at end "In the case of an
    individual described in the last sentence of paragraph (2)(A), any
    reference in subparagraph (A) of this paragraph to '102 percent' is
    deemed a reference to '150 percent' for any month after the 18th
    month of continuation coverage described in clause (i) or (ii) of
    paragraph (2)(A)."
      1986 - Par. (1). Pub. L. 99-514, Sec. 1895(d)(1)(B), inserted "If
    coverage is modified under the plan for any group of similarly
    situated beneficiaries, such coverage shall also be modified in the
    same manner for all individuals who are qualified beneficiaries
    under the plan pursuant to this part in connection with such
    group."
      Par. (2)(A). Pub. L. 99-514, Sec. 1895(d)(2)(B), amended subpar.
    (A) generally. Prior to amendment, subpar. (A) read as follows:
      "(A) Maximum period. - In the case of - 
        "(i) a qualifying event described in section 1163(2) of this
      title (relating to terminations and reduced hours), the date
      which is 18 months after the date of the qualifying event, and
        "(ii) any qualifying event not described in clause (i), the
      date which is 36 months after the date of the qualifying event."
      Par. (2)(A)(ii). Pub. L. 99-509, Sec. 9501(b)(1)(B)(i), inserted
    "(other than a qualifying event described in section 1163(6) of
    this title)".
      Par. (2)(A)(iii). Pub. L. 99-509, Sec. 9501(b)(1)(B)(iv), added
    cl. (iii). Former cl. (iii) redesignated (iv).
      Par. (2)(A)(iv). Pub. L. 99-509, Sec. 9501(b)(1)(B)(ii), (iii),
    redesignated cl. (iii) as (iv) and inserted "or 1163(6)".
      Par. (2)(C). Pub. L. 99-514, Sec. 1895(d)(3)(B), inserted "The
    payment of any premium (other than any payment referred to in the
    last sentence of paragraph (3)) shall be considered to be timely if
    made within 30 days after the date due or within such longer period
    as applies to or under the plan."
      Par. (2)(D). Pub. L. 99-514, Sec. 1895(d)(4)(B)(ii), (iii),
    substituted "Group health plan coverage or medicare eligibility"
    for "Reemployment or medicare eligibility" as heading and
    substituted "covered under any other group health plan (as an
    employee or otherwise)" for "a covered employee under any other
    group health plan" in cl. (i).
      Par. (2)(D)(ii). Pub. L. 99-509, Sec. 9501(b)(2)(B), inserted "in
    the case of a qualified beneficiary other than a qualified
    beneficiary described in section 1167(3)(C) of this title" before
    "entitled".
      Par. (2)(E). Pub. L. 99-514, Sec. 1895(d)(4)(B)(i), struck out
    subpar. (E), remarriage of spouse, which read as follows: "In the
    case of an individual who is a qualified beneficiary by reason of
    being the spouse of a covered employee, the date on which the
    beneficiary remarries and becomes covered under a group health
    plan."

                     EFFECTIVE DATE OF 1996 AMENDMENTS                 
      Amendment by Pub. L. 104-191 effective Jan. 1, 1997, regardless
    of whether qualifying event occurred before, on, or after such
    date, see section 421(d) of Pub. L. 104-191 set out as a note under
    section 4980B of Title 26, Internal Revenue Code.
      Amendment by Pub. L. 104-188 applicable to plan years beginning
    after Dec. 31, 1989, see section 1704(g)(2) of Pub. L. 104-188, set
    out as a note under section 4980B of Title 26.

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Section 6703(d) of Pub. L. 101-239 provided that: "The amendments
    made by this section [amending this section and section 1166 of
    this title] shall apply to plan years beginning on or after the
    date of the enactment of this Act [Dec. 19, 1989], regardless of
    whether the qualifying event occurred before, on, or after such
    date."
      Amendment by section 7862(c)(3)(B) of Pub. L. 101-239 applicable
    to (i) qualifying events occurring after Dec. 31, 1989, and (ii) in
    the case of qualified beneficiaries who elected continuation
    coverage after Dec. 31, 1988, the period for which the required
    premium was paid (or was attempted to be paid but was rejected as
    such), see section 7862(c)(3)(D) of Pub. L. 101-239, set out as a
    note under section 162 of Title 26, Internal Revenue Code.
      Amendment by section 7862(c)(4)(A) of Pub. L. 101-239 applicable
    to plan years beginning after Dec. 31, 1989, see section
    7862(c)(4)(C) of Pub. L. 101-239, set out as a note under section
    4980B of Title 26.
      Amendment by section 7862(c)(5)(B) of Pub. L. 101-239 applicable
    to plan years beginning after Dec. 31, 1989, see section
    7862(c)(5)(C) of Pub. L. 101-239, set out as a note under section
    4980B of Title 26.

                     EFFECTIVE DATE OF 1986 AMENDMENTS                 
      Amendment by Pub. L. 99-514 effective, except as otherwise
    provided, as if included in enactment of the Consolidated Omnibus
    Budget Reconciliation Act of 1985, Pub. L. 99-272, see section
    1895(e) of Pub. L. 99-514, set out as a note under section 162 of
    Title 26, Internal Revenue Code.
      Amendment by Pub. L. 99-509 effective, except as otherwise
    provided, as if included in title X of the Consolidated Omnibus
    Budget Reconciliation Act of 1985, Pub. L. 99-272, see section
    9501(e) of Pub. L. 99-509, set out as a note under section 162 of
    Title 26.

            PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989        
      For provisions directing that if any amendments made by subtitle
    A or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or
    title XVIII [Secs. 1800-1899A] of Pub. L. 99-514 require an
    amendment to any plan, such plan amendment shall not be required to
    be made before the first plan year beginning on or after Jan. 1,
    1989, see section 1140 of Pub. L. 99-514, as amended, set out as a
    note under section 401 of Title 26, Internal Revenue Code.

-FOOTNOTE-
    (!1) See References in Text note below.


-End-



-CITE-
    29 USC Sec. 1163                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 6 - continuation coverage and additional standards for group
              health plans                            

-HEAD-
    Sec. 1163. Qualifying event

-STATUTE-
      For purposes of this part, the term "qualifying event" means,
    with respect to any covered employee, any of the following events
    which, but for the continuation coverage required under this part,
    would result in the loss of coverage of a qualified beneficiary:
        (1) The death of the covered employee.
        (2) The termination (other than by reason of such employee's
      gross misconduct), or reduction of hours, of the covered
      employee's employment.
        (3) The divorce or legal separation of the covered employee
      from the employee's spouse.
        (4) The covered employee becoming entitled to benefits under
      title XVIII of the Social Security Act [42 U.S.C. 1395 et seq.].
        (5) A dependent child ceasing to be a dependent child under the
      generally applicable requirements of the plan.
        (6) A proceeding in a case under title 11, commencing on or
      after July 1, 1986, with respect to the employer from whose
      employment the covered employee retired at any time.

    In the case of an event described in paragraph (6), a loss of
    coverage includes a substantial elimination of coverage with
    respect to a qualified beneficiary described in section 1167(3)(C)
    of this title within one year before or after the date of
    commencement of the proceeding.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 603, as added Pub. L. 99-272, title
    X, Sec. 10002(a), Apr. 7, 1986, 100 Stat. 229; amended Pub. L. 99-
    509, title IX, Sec. 9501(a)(2), Oct. 21, 1986, 100 Stat. 2076.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Social Security Act, referred to in par. (4), is act Aug. 14,
    1935, ch. 531, 49 Stat. 620, as amended. Title XVIII of the Social
    Security Act is classified generally to subchapter XVIII (Sec. 1395
    et seq.) of chapter 7 of Title 42, The Public Health and Welfare.
    For complete classification of this Act to the Code, see section
    1305 of Title 42 and Tables.


-MISC1-
                                AMENDMENTS                            
      1986 - Pub. L. 99-509 added par. (6) and last sentence.

                     EFFECTIVE DATE OF 1986 AMENDMENT                 
      Amendment by Pub. L. 99-509 effective, except as otherwise
    provided, as if included in title X of the Consolidated Omnibus
    Budget Reconciliation Act of 1985, Pub. L. 99-272, see section
    9501(e) of Pub. L. 99-509, set out as a note under section 162 of
    Title 26, Internal Revenue Code.

-End-



-CITE-
    29 USC Sec. 1164                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 6 - continuation coverage and additional standards for group
              health plans                            

-HEAD-
    Sec. 1164. Applicable premium

-STATUTE-
      For purposes of this part - 
      (1) In general
        The term "applicable premium" means, with respect to any period
      of continuation coverage of qualified beneficiaries, the cost to
      the plan for such period of the coverage for similarly situated
      beneficiaries with respect to whom a qualifying event has not
      occurred (without regard to whether such cost is paid by the
      employer or employee).
      (2) Special rule for self-insured plans
        To the extent that a plan is a self-insured plan - 
        (A) In general
          Except as provided in subparagraph (B), the applicable
        premium for any period of continuation coverage of qualified
        beneficiaries shall be equal to a reasonable estimate of the
        cost of providing coverage for such period for similarly
        situated beneficiaries which - 
            (i) is determined on an actuarial basis, and
            (ii) takes into account such factors as the Secretary may
          prescribe in regulations.
        (B) Determination on basis of past cost
          If an administrator elects to have this subparagraph apply,
        the applicable premium for any period of continuation coverage
        of qualified beneficiaries shall be equal to - 
            (i) the cost to the plan for similarly situated
          beneficiaries for the same period occurring during the
          preceding determination period under paragraph (3), adjusted
          by
            (ii) the percentage increase or decrease in the implicit
          price deflator of the gross national product (calculated by
          the Department of Commerce and published in the Survey of
          Current Business) for the 12-month period ending on the last
          day of the sixth month of such preceding determination
          period.
        (C) Subparagraph (B) not to apply where significant change
          An administrator may not elect to have subparagraph (B) apply
        in any case in which there is any significant difference,
        between the determination period and the preceding
        determination period, in coverage under, or in employees
        covered by, the plan. The determination under the preceding
        sentence for any determination period shall be made at the same
        time as the determination under paragraph (3).
      (3) Determination period
        The determination of any applicable premium shall be made for a
      period of 12 months and shall be made before the beginning of
      such period.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 604, as added Pub. L. 99-272, title
    X, Sec. 10002(a), Apr. 7, 1986, 100 Stat. 229.)

-End-



-CITE-
    29 USC Sec. 1165                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 6 - continuation coverage and additional standards for group
              health plans                            

-HEAD-
    Sec. 1165. Election

-STATUTE-
    (a) In general
      For purposes of this part - 
      (1) Election period
        The term "election period" means the period which - 
          (A) begins not later than the date on which coverage
        terminates under the plan by reason of a qualifying event,
          (B) is of at least 60 days' duration, and
          (C) ends not earlier than 60 days after the later of - 
            (i) the date described in subparagraph (A), or
            (ii) in the case of any qualified beneficiary who receives
          notice under section 1166(4) (!1) of this title, the date of
          such notice.

      (2) Effect of election on other beneficiaries
        Except as otherwise specified in an election, any election of
      continuation coverage by a qualified beneficiary described in
      subparagraph (A)(i) or (B) of section 1167(3) of this title shall
      be deemed to include an election of continuation coverage on
      behalf of any other qualified beneficiary who would lose coverage
      under the plan by reason of the qualifying event. If there is a
      choice among types of coverage under the plan, each qualified
      beneficiary is entitled to make a separate selection among such
      types of coverage.
    (b) Temporary extension of COBRA election period for certain
      individuals
      (1) In general
        In the case of a nonelecting TAA-eligible individual and
      notwithstanding subsection (a) of this section, such individual
      may elect continuation coverage under this part during the 60-day
      period that begins on the first day of the month in which the
      individual becomes a TAA-eligible individual, but only if such
      election is made not later than 6 months after the date of the
      TAA-related loss of coverage.
      (2) Commencement of coverage; no reach-back
        Any continuation coverage elected by a TAA-eligible individual
      under paragraph (1) shall commence at the beginning of the 60-day
      election period described in such paragraph and shall not include
      any period prior to such 60-day election period.
      (3) Preexisting conditions
        With respect to an individual who elects continuation coverage
      pursuant to paragraph (1), the period - 
          (A) beginning on the date of the TAA-related loss of
        coverage, and
          (B) ending on the first day of the 60-day election period
        described in paragraph (1),

      shall be disregarded for purposes of determining the 63-day
      periods referred to in section 1181(c)(2) of this title, section
      300gg(c)(2) of title 42, and section 9801(c)(2) of title 26.
      (4) Definitions
        For purposes of this subsection:
        (A) Nonelecting TAA-eligible individual
          The term "nonelecting TAA-eligible individual" means a TAA-
        eligible individual who - 
            (i) has a TAA-related loss of coverage; and
            (ii) did not elect continuation coverage under this part
          during the TAA-related election period.
        (B) TAA-eligible individual
          The term "TAA-eligible individual" means - 
            (i) an eligible TAA recipient (as defined in paragraph (2)
          of section 35(c) of title 26), and
            (ii) an eligible alternative TAA recipient (as defined in
          paragraph (3) of such section).
        (C) TAA-related election period
          The term "TAA-related election period" means, with respect to
        a TAA-related loss of coverage, the 60-day election period
        under this part which is a direct consequence of such loss.
        (D) TAA-related loss of coverage
          The term "TAA-related loss of coverage" means, with respect
        to an individual whose separation from employment gives rise to
        being an TAA-eligible individual, the loss of health benefits
        coverage associated with such separation.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 605, as added Pub. L. 99-272, title
    X, Sec. 10002(a), Apr. 7, 1986, 100 Stat. 230; amended Pub. L. 99-
    514, title XVIII, Sec. 1895(d)(5)(B), Oct. 22, 1986, 100 Stat.
    2939; Pub. L. 107-210, div. A, title II, Sec. 203(e)(1), Aug. 6,
    2002, 116 Stat. 969.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 1166(4) of this title, referred to in subsec.
    (a)(1)(C)(ii), was redesignated as section 1166(a)(4) of this title
    by Pub. L. 101-239, title VII, Sec. 7891(d)(1)(A)(ii)(I), Dec. 19,
    1989, 103 Stat. 2445.


-MISC1-
                                AMENDMENTS                            
      2002 - Pub. L. 107-210 designated existing provisions as subsec.
    (a), inserted heading, and added subsec. (b).
      1986 - Par. (2). Pub. L. 99-514 inserted "of continuation
    coverage" after "any election" and inserted at end "If there is a
    choice among types of coverage under the plan, each qualified
    beneficiary is entitled to make a separate selection among such
    types of coverage."

                     EFFECTIVE DATE OF 2002 AMENDMENT                 
      Amendment by Pub. L. 107-210 applicable to petitions for
    certification filed under part 2 or 3 of subchapter II of chapter
    12 of Title 19, Customs Duties, on or after the date that is 90
    days after Aug. 6, 2002, except as otherwise provided, see section
    151 of Pub. L. 107-210, set out as a note preceding section 2271 of
    Title 19.

                     EFFECTIVE DATE OF 1986 AMENDMENT                 
      Amendment by Pub. L. 99-514 effective, except as otherwise
    provided, as if included in enactment of the Consolidated Omnibus
    Budget Reconciliation Act of 1985, Pub. L. 99-272, see section
    1895(e) of Pub. L. 99-514, set out as a note under section 162 of
    Title 26, Internal Revenue Code.

                      CONSTRUCTION OF 2002 AMENDMENT                  
      Nothing in amendment by Pub. L. 107-210, other than provisions
    relating to COBRA continuation coverage and reporting requirements,
    to be construed as creating new mandate on any party regarding
    health insurance coverage, see section 203(f) of Pub. L. 107-210,
    set out as a note under section 2918 of this title.

            PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989        
      For provisions directing that if any amendments made by subtitle
    A or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or
    title XVIII [Secs. 1800-1899A] of Pub. L. 99-514 require an
    amendment to any plan, such plan amendment shall not be required to
    be made before the first plan year beginning on or after Jan. 1,
    1989, see section 1140 of Pub. L. 99-514, as amended, set out as a
    note under section 401 of Title 26, Internal Revenue Code.

-FOOTNOTE-
    (!1) See References in Text note below.


-End-



-CITE-
    29 USC Sec. 1166                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 6 - continuation coverage and additional standards for group
              health plans                            

-HEAD-
    Sec. 1166. Notice requirements

-STATUTE-
    (a) In general
      In accordance with regulations prescribed by the Secretary - 
        (1) the group health plan shall provide, at the time of
      commencement of coverage under the plan, written notice to each
      covered employee and spouse of the employee (if any) of the
      rights provided under this subsection,
        (2) the employer of an employee under a plan must notify the
      administrator of a qualifying event described in paragraph (1),
      (2), (4), or (6) of section 1163 of this title within 30 days
      (or, in the case of a group health plan which is a multiemployer
      plan, such longer period of time as may be provided in the terms
      of the plan) of the date of the qualifying event,
        (3) each covered employee or qualified beneficiary is
      responsible for notifying the administrator of the occurrence of
      any qualifying event described in paragraph (3) or (5) of section
      1163 of this title within 60 days after the date of the
      qualifying event and each qualified beneficiary who is
      determined, under title II or XVI of the Social Security Act [42
      U.S.C. 401 et seq., 1381 et seq.], to have been disabled at any
      time during the first 60 days of continuation coverage under this
      part is responsible for notifying the plan administrator of such
      determination within 60 days after the date of the determination
      and for notifying the plan administrator within 30 days after the
      date of any final determination under such title or titles that
      the qualified beneficiary is no longer disabled, and
        (4) the administrator shall notify - 
          (A) in the case of a qualifying event described in paragraph
        (1), (2), (4), or (6) of section 1163 of this title, any
        qualified beneficiary with respect to such event, and
          (B) in the case of a qualifying event described in paragraph
        (3) or (5) of section 1163 of this title where the covered
        employee notifies the administrator under paragraph (3), any
        qualified beneficiary with respect to such event,

      of such beneficiary's rights under this subsection.
    (b) Alternative means of compliance with requirements for
      notification of multiemployer plans by employers
      The requirements of subsection (a)(2) of this section shall be
    considered satisfied in the case of a multiemployer plan in
    connection with a qualifying event described in paragraph (2) of
    section 1163 of this title if the plan provides that the
    determination of the occurrence of such qualifying event will be
    made by the plan administrator.
    (c) Rules relating to notification of qualified beneficiaries by
      plan administrator
      For purposes of subsection (a)(4) of this section, any
    notification shall be made within 14 days (or, in the case of a
    group health plan which is a multiemployer plan, such longer period
    of time as may be provided in the terms of the plan) of the date on
    which the administrator is notified under paragraph (2) or (3),
    whichever is applicable, and any such notification to an individual
    who is a qualified beneficiary as the spouse of the covered
    employee shall be treated as notification to all other qualified
    beneficiaries residing with such spouse at the time such
    notification is made.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 606, as added Pub. L. 99-272, title
    X, Sec. 10002(a), Apr. 7, 1986, 100 Stat. 230; amended Pub. L. 99-
    509, title IX, Sec. 9501(d)(2), Oct. 21, 1986, 100 Stat. 2077;
    Pub. L. 99-514, title XVIII, Sec. 1895(d)(6)(B), Oct. 22, 1986, 100
    Stat. 2939; Pub. L. 101-239, title VI, Sec. 6703(c), title VII,
    Sec. 7891(d)(1)(A), Dec. 19, 1989, 103 Stat. 2296, 2445; Pub. L.
    104-191, title IV, Sec. 421(b)(2), Aug. 21, 1996, 110 Stat. 2088.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Social Security Act, referred to in subsec. (a)(3), is act
    Aug. 14, 1935, ch. 531, 49 Stat. 620, as amended. Titles II and XVI
    of the Social Security Act are classified generally to subchapters
    II (Sec. 401 et seq.) and XVI (Sec. 1381 et seq.), respectively, of
    chapter 7 of Title 42, The Public Health and Welfare. For complete
    classification of this Act to the Code, see section 1305 of Title
    42 and Tables.


-MISC1-
                                AMENDMENTS                            
      1996 - Subsec. (a)(3). Pub. L. 104-191 substituted "at any time
    during the first 60 days of continuation coverage under this part"
    for "at the time of a qualifying event described in section 1163(2)
    of this title".
      1989 - Pub. L. 101-239, Sec. 7891(d)(1)(A)(ii), designated first
    sentence as subsec. (a), added subsec. (b), designated second
    sentence as subsec. (c), and substituted "For purposes of
    subsection (a)(4) of this section" for "For purposes of paragraph
    (4)".
      Pub. L. 101-239, Sec. 7891(d)(1)(A)(i)(II), inserted in last
    sentence "(or, in the case of a group health plan which is a
    multiemployer plan, such longer period of time as may be provided
    in the terms of the plan)" after "14 days".
      Pub. L. 101-239, Sec. 7891(d)(1)(A)(i)(I), inserted "(or, in the
    case of a group health plan which is a multiemployer plan, such
    longer period of time as may be provided in the terms of the plan)"
    after "30 days" in par. (2).
      Pub. L. 101-239, Sec. 6703(c), inserted "and each qualified
    beneficiary who is determined, under title II or XVI of the Social
    Security Act, to have been disabled at the time of a qualifying
    event described in section 1163(2) of this title is responsible for
    notifying the plan administrator of such determination within 60
    days after the date of the determination and for notifying the plan
    administrator within 30 days after the date of any final
    determination under such title or titles that the qualified
    beneficiary is no longer disabled" before comma in par. (3).
      1986 - Par. (2). Pub. L. 99-509 substituted "(4), or (6)" for "or
    (4)".
      Par. (3). Pub. L. 99-514 inserted "within 60 days after the date
    of the qualifying event".
      Par. (4)(A). Pub. L. 99-509 substituted "(4), or (6)" for "or
    (4)".

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Amendment by Pub. L. 104-191 effective Jan. 1, 1997, regardless
    of whether qualifying event occurred before, on, or after such
    date, see section 421(d) of Pub. L. 104-191 set out as a note under
    section 4980B of Title 26, Internal Revenue Code.

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by section 6703(c) of Pub. L. 101-239 applicable to
    plan years beginning on or after Dec. 19, 1989, regardless of
    whether the qualifying event occurred before, on, or after such
    date, see section 6703(d) of Pub. L. 101-239, set out as a note
    under section 1162 of this title.
      Amendment by section 7891(d)(1)(A) of Pub. L. 101-239 applicable
    with respect to plan years beginning on or after Jan. 1, 1990, see
    section 7891(d)(1)(C) of Pub. L. 101-239, set out as a note under
    section 4980B of Title 26, Internal Revenue Code.

                     EFFECTIVE DATE OF 1986 AMENDMENTS                 
      Amendment by Pub. L. 99-514 applicable only with respect to
    qualifying events occurring after Oct. 22, 1986, see section
    1895(d)(6)(D) of Pub. L. 99-514, set out as a note under section
    162 of Title 26, Internal Revenue Code.
      Amendment by Pub. L. 99-509 effective, except as otherwise
    provided, as if included in title X of the Consolidated Omnibus
    Budget Reconciliation Act of 1985, Pub. L. 99-272, see section
    9501(e) of Pub. L. 99-509, set out as a note under section 162 of
    Title 26.

            PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989        
      For provisions directing that if any amendments made by subtitle
    A or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or
    title XVIII [Secs. 1800-1899A] of Pub. L. 99-514 require an
    amendment to any plan, such plan amendment shall not be required to
    be made before the first plan year beginning on or after Jan. 1,
    1989, see section 1140 of Pub. L. 99-514, as amended, set out as a
    note under section 401 of Title 26, Internal Revenue Code.

                     NOTIFICATION TO COVERED EMPLOYEES                 
      Section 10002(e) of Pub. L. 99-272 provided that: "At the time
    that the amendments made by this section [enacting this part and
    amending section 1132 of this title] apply to a group health plan
    (within the meaning of section 607(1) of the Employee Retirement
    Income Security Act of 1974 [29 U.S.C. 1167(1)]), the plan shall
    notify each covered employee, and spouse of the employee (if any),
    who is covered under the plan at that time of the continuation
    coverage required under part 6 of subtitle B of title I of such Act
    [this part]. The notice furnished under this subsection is in lieu
    of notice that may otherwise be required under section 606(1) of
    such Act [29 U.S.C. 1166(1)] with respect to such individuals."

-End-



-CITE-
    29 USC Sec. 1167                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 6 - continuation coverage and additional standards for group
              health plans                            

-HEAD-
    Sec. 1167. Definitions and special rules

-STATUTE-
      For purposes of this part - 
      (1) Group health plan
        The term "group health plan" means an employee welfare benefit
      plan providing medical care (as defined in section 213(d) of
      title 26) to participants or beneficiaries directly or through
      insurance, reimbursement, or otherwise. Such term shall not
      include any plan substantially all of the coverage under which is
      for qualified long-term care services (as defined in section
      7702B(c) of title 26).
      (2) Covered employee
        The term "covered employee" means an individual who is (or was)
      provided coverage under a group health plan by virtue of the
      performance of services by the individual for 1 or more persons
      maintaining the plan (including as an employee defined in section
      401(c)(1) of title 26).
      (3) Qualified beneficiary
        (A) In general
          The term "qualified beneficiary" means, with respect to a
        covered employee under a group health plan, any other
        individual who, on the day before the qualifying event for that
        employee, is a beneficiary under the plan - 
            (i) as the spouse of the covered employee, or
            (ii) as the dependent child of the employee.

        Such term shall also include a child who is born to or placed
        for adoption with the covered employee during the period of
        continuation coverage under this part.
        (B) Special rule for terminations and reduced employment
          In the case of a qualifying event described in section
        1163(2) of this title, the term "qualified beneficiary"
        includes the covered employee.
        (C) Special rule for retirees and widows
          In the case of a qualifying event described in section
        1163(6) of this title, the term "qualified beneficiary"
        includes a covered employee who had retired on or before the
        date of substantial elimination of coverage and any other
        individual who, on the day before such qualifying event, is a
        beneficiary under the plan - 
            (i) as the spouse of the covered employee,
            (ii) as the dependent child of the employee, or
            (iii) as the surviving spouse of the covered employee.
      (4) Employer
        Subsection (n) (relating to leased employees) and subsection
      (t) (relating to application of controlled group rules to certain
      employee benefits) of section 414 of title 26 shall apply for
      purposes of this part in the same manner and to the same extent
      as such subsections apply for purposes of section 106 of title
      26. Any regulations prescribed by the Secretary pursuant to the
      preceding sentence shall be consistent and coextensive with any
      regulations prescribed for similar purposes by the Secretary of
      the Treasury (or such Secretary's delegate) under such
      subsections.
      (5) Optional extension of required periods
        A group health plan shall not be treated as failing to meet the
      requirements of this part solely because the plan provides both -
      
          (A) that the period of extended coverage referred to in
        section 1162(2) of this title commences with the date of the
        loss of coverage, and
          (B) that the applicable notice period provided under section
        1166(a)(2) of this title commences with the date of the loss of
        coverage.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 607, as added Pub. L. 99-272, title
    X, Sec. 10002(a), Apr. 7, 1986, 100 Stat. 231; amended Pub. L. 99-
    509, title IX, Sec. 9501(c)(2), Oct. 21, 1986, 100 Stat. 2077;
    Pub. L. 99-514, title XVIII, Sec. 1895(d)(8), (9)(A), Oct. 22,
    1986, 100 Stat. 2940; Pub. L. 100-647, title III, Sec. 3011(b)(6),
    Nov. 10, 1988, 102 Stat. 3625; Pub. L. 101-239, title VII, Secs.
    7862(c)(2)(A), (6)(A), 7891(a)(1), (d)(2)(B)(i), Dec. 19, 1989, 103
    Stat. 2432, 2433, 2445, 2446; Pub. L. 104-191, title III, Sec.
    321(d)(2), title IV, Sec. 421(b)(3), Aug. 21, 1996, 110 Stat. 2058,
    2088.)


-MISC1-
                                AMENDMENTS                            
      1996 - Par. (1). Pub. L. 104-191, Sec. 321(d)(2), inserted at end
    "Such term shall not include any plan substantially all of the
    coverage under which is for qualified long-term care services (as
    defined in section 7702B(c) of title 26)."
      Par. (3)(A). Pub. L. 104-191, Sec. 421(b)(3), inserted at end
    "Such term shall also include a child who is born to or placed for
    adoption with the covered employee during the period of
    continuation coverage under this part."
      1989 - Pub. L. 101-239, Sec. 7891(d)(2)(B)(i)(I), inserted "and
    special rules" after "Definitions" in section catchline.
      Par. (1). Pub. L. 101-239, Sec. 7862(c)(6)(A), repealed Pub. L.
    100-647, Sec. 3011(b)(6), see 1988 Amendment note below.
      Pub. L. 101-239, Sec. 7891(a)(1), substituted "Internal Revenue
    Code of 1986" for "Internal Revenue Code of 1954", which for
    purposes of codification was translated as "title 26" thus
    requiring no change in text.
      Par. (2). Pub. L. 101-239, Sec. 7862(c)(2)(A), substituted "the
    performance of services by the individual for 1 or more persons
    maintaining the plan (including as an employee defined in section
    401(c)(1) of title 26)" for "the individual's employment or
    previous employment with an employer".
      Par. (5). Pub. L. 101-239, Sec. 7891(d)(2)(B)(i)(II), added par.
    (5).
      1988 - Par. (1). Pub. L. 100-647, Sec. 3011(b)(6), which directed
    amendment of par. (1) by substituting "section 162(i)(2) of title
    26" for "section 162(i)(3) of title 26", was repealed by Pub. L.
    101-239, Sec. 7862(c)(6)(A).
      Pub. L. 99-514, Sec. 1895(d)(8), amended par. (1) generally.
    Prior to amendment, par. (1) read as follows: "The term 'group
    health plan' means an employee welfare benefit plan that is a group
    health plan (within the meaning of section 162(i)(3) of title 26)."
      Par. (3)(C). Pub. L. 99-509 added subpar. (C).
      Par. (4). Pub. L. 99-514, Sec. 1895(d)(9)(A), added par. (4).

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Amendment by section 321(d)(2) of Pub. L. 104-191 applicable to
    contracts issued after Dec. 31, 1996, see section 321(f) of Pub. L.
    104-191, set out as an Effective Date note under section 7702B of
    Title 26, Internal Revenue Code.
      Amendment by section 421(b)(3) of Pub. L. 104-191 effective Jan.
    1, 1997, regardless of whether qualifying event occurred before,
    on, or after such date, see section 421(d) of Pub. L. 104-191 set
    out as a note under section 4980B of Title 26.

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by section 7862(c)(2)(A) of Pub. L. 101-239 applicable
    to plan years beginning after Dec. 31, 1989, see section
    7862(c)(2)(C) of Pub. L. 101-239, set out as a note under section
    4980B of Title 26, Internal Revenue Code.
      Section 7862(c)(6)(B) of Pub. L. 101-239 provided that:
    "Subparagraph (A) [repealing section 3011(b)(6) of Pub. L. 100-647,
    which amended this section] shall be effective as if included in
    the enactment of section 3011(b) of the Technical and Miscellaneous
    Revenue Act of 1988 [Pub. L. 100-647]."
      Amendment by section 7891(a)(1) of Pub. L. 101-239 effective,
    except as otherwise provided, as if included in the provision of
    the Tax Reform Act of 1986, Pub. L. 99-514, to which such amendment
    relates, see section 7891(f) of Pub. L. 101-239, set out as a note
    under section 1002 of this title.
      Amendment by section 7891(d)(2)(B)(i) of Pub. L. 101-239
    applicable with respect to plan years beginning on or after Jan. 1,
    1990, see section 7891(d)(2)(C) of Pub. L. 101-239, set out as a
    note under section 4980B of Title 26, Internal Revenue Code.

                     EFFECTIVE DATE OF 1988 AMENDMENT                 
      Amendment by Pub. L. 100-647 applicable to taxable years
    beginning after Dec. 31, 1988, but not applicable to any plan for
    any plan year to which section 162(k) of Title 26, Internal Revenue
    Code (as in effect on the day before Nov. 10, 1988) did not apply
    by reason of section 10001(e)(2) of Pub. L. 99-272, see section
    3011(d) of Pub. L. 100-647, set out as a note under section 162 of
    Title 26.

                     EFFECTIVE DATE OF 1986 AMENDMENTS                 
      Section 1895(d)(9)(B) of Pub. L. 99-514 provided that: "The
    amendment made by subparagraph (A) [amending this section] shall
    take effect in the same manner and to the same extent as the
    amendments made by subsections (e) and (i) of section 1151 of this
    Act [amending sections 132 and 414 of Title 26, Internal Revenue
    Code, see section 1151(k) of Pub. L. 99-514, set out as an
    Effective Date note under section 89 of Title 26]."
      Amendment by section 1895(d)(8) of Pub. L. 99-514 effective,
    except as otherwise provided, as if included in enactment of the
    Consolidated Omnibus Budget Reconciliation Act of 1985, Pub. L. 99-
    272, see section 1895(e) of Pub. L. 99-514, set out as a note
    under section 162 of Title 26.
      Amendment by Pub. L. 99-509 effective, except as otherwise
    provided, as if included in title X of the Consolidated Omnibus
    Budget Reconciliation Act of 1985, Pub. L. 99-272, see section
    9501(e) of Pub. L. 99-509, set out as a note under section 162 of
    Title 26.

            PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989        
      For provisions directing that if any amendments made by subtitle
    A or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or
    title XVIII [Secs. 1800-1899A] of Pub. L. 99-514 require an
    amendment to any plan, such plan amendment shall not be required to
    be made before the first plan year beginning on or after Jan. 1,
    1989, see section 1140 of Pub. L. 99-514, as amended, set out as a
    note under section 401 of Title 26, Internal Revenue Code.

-End-



-CITE-
    29 USC Sec. 1168                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 6 - continuation coverage and additional standards for group
              health plans                            

-HEAD-
    Sec. 1168. Regulations

-STATUTE-
      The Secretary may prescribe regulations to carry out the
    provisions of this part.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 608, as added Pub. L. 99-272, title
    X, Sec. 10002(a), Apr. 7, 1986, 100 Stat. 231.)

-End-



-CITE-
    29 USC Sec. 1169                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 6 - continuation coverage and additional standards for group
              health plans                            

-HEAD-
    Sec. 1169. Additional standards for group health plans

-STATUTE-
    (a) Group health plan coverage pursuant to medical child support
      orders
      (1) In general
        Each group health plan shall provide benefits in accordance
      with the applicable requirements of any qualified medical child
      support order. A qualified medical child support order with
      respect to any participant or beneficiary shall be deemed to
      apply to each group health plan which has received such order,
      from which the participant or beneficiary is eligible to receive
      benefits, and with respect to which the requirements of paragraph
      (4) are met.
      (2) Definitions
        For purposes of this subsection - 
        (A) Qualified medical child support order
          The term "qualified medical child support order" means a
        medical child support order - 
            (i) which creates or recognizes the existence of an
          alternate recipient's right to, or assigns to an alternate
          recipient the right to, receive benefits for which a
          participant or beneficiary is eligible under a group health
          plan, and
            (ii) with respect to which the requirements of paragraphs
          (3) and (4) are met.
        (B) Medical child support order
          The term "medical child support order" means any judgment,
        decree, or order (including approval of a settlement agreement)
        which - 
            (i) provides for child support with respect to a child of a
          participant under a group health plan or provides for health
          benefit coverage to such a child, is made pursuant to a State
          domestic relations law (including a community property law),
          and relates to benefits under such plan, or
            (ii) is made pursuant to a law relating to medical child
          support described in section 1908 of the Social Security Act
          [42 U.S.C. 1396g-1] (as added by section 13822 (!1) of the
          Omnibus Budget Reconciliation Act of 1993) with respect to a
          group health plan,


        if such judgment, decree, or order (I) is issued by a court of
        competent jurisdiction or (II) is issued through an
        administrative process established under State law and has the
        force and effect of law under applicable State law. For
        purposes of this subparagraph, an administrative notice which
        is issued pursuant to an administrative process referred to in
        subclause (II) of the preceding sentence and which has the
        effect of an order described in clause (i) or (ii) of the
        preceding sentence shall be treated as such an order.
        (C) Alternate recipient
          The term "alternate recipient" means any child of a
        participant who is recognized under a medical child support
        order as having a right to enrollment under a group health plan
        with respect to such participant.
        (D) Child
          The term "child" includes any child adopted by, or placed for
        adoption with, a participant of a group health plan.
      (3) Information to be included in qualified order
        A medical child support order meets the requirements of this
      paragraph only if such order clearly specifies - 
          (A) the name and the last known mailing address (if any) of
        the participant and the name and mailing address of each
        alternate recipient covered by the order, except that, to the
        extent provided in the order, the name and mailing address of
        an official of a State or a political subdivision thereof may
        be substituted for the mailing address of any such alternate
        recipient,
          (B) a reasonable description of the type of coverage to be
        provided to each such alternate recipient, or the manner in
        which such type of coverage is to be determined, and
          (C) the period to which such order applies.
      (4) Restriction on new types or forms of benefits
        A medical child support order meets the requirements of this
      paragraph only if such order does not require a plan to provide
      any type or form of benefit, or any option, not otherwise
      provided under the plan, except to the extent necessary to meet
      the requirements of a law relating to medical child support
      described in section 1908 of the Social Security Act [42 U.S.C.
      1396g-1] (as added by section 13822 (!1) of the Omnibus Budget
      Reconciliation Act of 1993).
      (5) Procedural requirements
        (A) Timely notifications and determinations
          In the case of any medical child support order received by a
        group health plan - 
            (i) the plan administrator shall promptly notify the
          participant and each alternate recipient of the receipt of
          such order and the plan's procedures for determining whether
          medical child support orders are qualified medical child
          support orders, and
            (ii) within a reasonable period after receipt of such
          order, the plan administrator shall determine whether such
          order is a qualified medical child support order and notify
          the participant and each alternate recipient of such
          determination.
        (B) Establishment of procedures for determining qualified
          status of orders
          Each group health plan shall establish reasonable procedures
        to determine whether medical child support orders are qualified
        medical child support orders and to administer the provision of
        benefits under such qualified orders. Such procedures - 
            (i) shall be in writing,
            (ii) shall provide for the notification of each person
          specified in a medical child support order as eligible to
          receive benefits under the plan (at the address included in
          the medical child support order) of such procedures promptly
          upon receipt by the plan of the medical child support order,
          and
            (iii) shall permit an alternate recipient to designate a
          representative for receipt of copies of notices that are sent
          to the alternate recipient with respect to a medical child
          support order.
        (C) National Medical Support Notice deemed to be a qualified
          medical child support order
          (i) In general
            If the plan administrator of a group health plan which is
          maintained by the employer of a noncustodial parent of a
          child or to which such an employer contributes receives an
          appropriately completed National Medical Support Notice
          promulgated pursuant to section 401(b) of the Child Support
          Performance and Incentive Act of 1998 in the case of such
          child, and the Notice meets the requirements of paragraphs
          (3) and (4), the Notice shall be deemed to be a qualified
          medical child support order in the case of such child.
          (ii) Enrollment of child in plan
            In any case in which an appropriately completed National
          Medical Support Notice is issued in the case of a child of a
          participant under a group health plan who is a noncustodial
          parent of the child, and the Notice is deemed under clause
          (i) to be a qualified medical child support order, the plan
          administrator, within 40 business days after the date of the
          Notice, shall - 
              (I) notify the State agency issuing the Notice with
            respect to such child whether coverage of the child is
            available under the terms of the plan and, if so, whether
            such child is covered under the plan and either the
            effective date of the coverage or, if necessary, any steps
            to be taken by the custodial parent (or by the official of
            a State or political subdivision thereof substituted for
            the name of such child pursuant to paragraph (3)(A)) to
            effectuate the coverage; and
              (II) provide to the custodial parent (or such substituted
            official) a description of the coverage available and any
            forms or documents necessary to effectuate such coverage.
          (iii) Rule of construction
            Nothing in this subparagraph shall be construed as
          requiring a group health plan, upon receipt of a National
          Medical Support Notice, to provide benefits under the plan
          (or eligibility for such benefits) in addition to benefits
          (or eligibility for benefits) provided under the terms of the
          plan as of immediately before receipt of such Notice.
      (6) Actions taken by fiduciaries
        If a plan fiduciary acts in accordance with part 4 of this
      subtitle in treating a medical child support order as being (or
      not being) a qualified medical child support order, then the
      plan's obligation to the participant and each alternate recipient
      shall be discharged to the extent of any payment made pursuant to
      such act of the fiduciary.
      (7) Treatment of alternate recipients
        (A) Treatment as beneficiary generally
          A person who is an alternate recipient under a qualified
        medical child support order shall be considered a beneficiary
        under the plan for purposes of any provision of this chapter.
        (B) Treatment as participant for purposes of reporting and
          disclosure requirements
          A person who is an alternate recipient under any medical
        child support order shall be considered a participant under the
        plan for purposes of the reporting and disclosure requirements
        of part 1 of this subtitle.
      (8) Direct provision of benefits provided to alternate recipients
        Any payment for benefits made by a group health plan pursuant
      to a medical child support order in reimbursement for expenses
      paid by an alternate recipient or an alternate recipient's
      custodial parent or legal guardian shall be made to the alternate
      recipient or the alternate recipient's custodial parent or legal
      guardian.
      (9) Payment to State official treated as satisfaction of plan's
        obligation to make payment to alternate recipient
        Payment of benefits by a group health plan to an official of a
      State or a political subdivision thereof whose name and address
      have been substituted for the address of an alternate recipient
      in a qualified medical child support order, pursuant to paragraph
      (3)(A), shall be treated, for purposes of this subchapter, as
      payment of benefits to the alternate recipient.
    (b) Rights of States with respect to group health plans where
      participants or beneficiaries thereunder are eligible for
      medicaid benefits
      (1) Compliance by plans with assignment of rights
        A group health plan shall provide that payment for benefits
      with respect to a participant under the plan will be made in
      accordance with any assignment of rights made by or on behalf of
      such participant or a beneficiary of the participant as required
      by a State plan for medical assistance approved under title XIX
      of the Social Security Act [42 U.S.C. 1396 et seq.] pursuant to
      section 1912(a)(1)(A) of such Act [42 U.S.C. 1396k(a)(1)(A)] (as
      in effect on August 10, 1993).
      (2) Enrollment and provision of benefits without regard to
        medicaid eligibility
        A group health plan shall provide that, in enrolling an
      individual as a participant or beneficiary or in determining or
      making any payments for benefits of an individual as a
      participant or beneficiary, the fact that the individual is
      eligible for or is provided medical assistance under a State plan
      for medical assistance approved under title XIX of the Social
      Security Act [42 U.S.C. 1396 et seq.] will not be taken into
      account.
      (3) Acquisition by States of rights of third parties
        A group health plan shall provide that, to the extent that
      payment has been made under a State plan for medical assistance
      approved under title XIX of the Social Security Act [42 U.S.C.
      1396 et seq.] in any case in which a group health plan has a
      legal liability to make payment for items or services
      constituting such assistance, payment for benefits under the plan
      will be made in accordance with any State law which provides that
      the State has acquired the rights with respect to a participant
      to such payment for such items or services.
    (c) Group health plan coverage of dependent children in cases of
      adoption
      (1) Coverage effective upon placement for adoption
        In any case in which a group health plan provides coverage for
      dependent children of participants or beneficiaries, such plan
      shall provide benefits to dependent children placed with
      participants or beneficiaries for adoption under the same terms
      and conditions as apply in the case of dependent children who are
      natural children of participants or beneficiaries under the plan,
      irrespective of whether the adoption has become final.
      (2) Restrictions based on preexisting conditions at time of
        placement for adoption prohibited
        A group health plan may not restrict coverage under the plan of
      any dependent child adopted by a participant or beneficiary, or
      placed with a participant or beneficiary for adoption, solely on
      the basis of a preexisting condition of such child at the time
      that such child would otherwise become eligible for coverage
      under the plan, if the adoption or placement for adoption occurs
      while the participant or beneficiary is eligible for coverage
      under the plan.
      (3) Definitions
        For purposes of this subsection - 
        (A) Child
          The term "child" means, in connection with any adoption, or
        placement for adoption, of the child, an individual who has not
        attained age 18 as of the date of such adoption or placement
        for adoption.
        (B) Placement for adoption
          The term "placement", or being "placed", for adoption, in
        connection with any placement for adoption of a child with any
        person, means the assumption and retention by such person of a
        legal obligation for total or partial support of such child in
        anticipation of adoption of such child. The child's placement
        with such person terminates upon the termination of such legal
        obligation.
    (d) Continued coverage of costs of a pediatric vaccine under group
      health plans
      A group health plan may not reduce its coverage of the costs of
    pediatric vaccines (as defined under section 1928(h)(6) of the
    Social Security Act [42 U.S.C. 1396s(h)(6)] as amended by section
    13830 (!2) of the Omnibus Budget Reconciliation Act of 1993) below
    the coverage it provided as of May 1, 1993.

    (e) Regulations
      Any regulations prescribed under this section shall be prescribed
    by the Secretary of Labor, in consultation with the Secretary of
    Health and Human Services.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 609, as added Pub. L. 103-66, title
    IV, Sec. 4301(a), Aug. 10, 1993, 107 Stat. 371; amended Pub. L. 104-
    193, title III, Sec. 381(a), Aug. 22, 1996, 110 Stat. 2257; Pub.
    L. 105-33, title V, Secs. 5611(a), (b), 5612(a), 5613(a), (b), Aug.
    5, 1997, 111 Stat. 647, 648; Pub. L. 105-200, title IV, Sec.
    401(d), (h)(2)(A)(iii), (B), (3)(A), July 16, 1998, 112 Stat. 662,
    668.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 401(b) of the Child Support Performance and Incentive Act
    of 1998, referred to in subsec. (a)(5)(C)(i), is section 401(b) of
    Pub. L. 105-200, which is set out as a note under section 651 of
    Title 42, The Public Health and Welfare.
      This chapter, referred to in subsec. (a)(7)(A), was in the
    original "this Act", meaning Pub. L. 93-406, known as the Employee
    Retirement Income Security Act of 1974. Titles I, III, and IV of
    such Act are classified principally to this chapter. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 1001 of this title and Tables.
      The Social Security Act, referred to in subsec. (b), is act Aug.
    14, 1935, ch. 531, 49 Stat. 620, as amended. Title XIX of the Act
    is classified generally to subchapter XIX (Sec. 1396 et seq.) of
    chapter 7 of Title 42, The Public Health and Welfare. For complete
    classification of this Act to the Code, see section 1305 of Title
    42 and Tables.


-MISC1-
                                AMENDMENTS                            
      1998 - Subsec. (a)(2)(B)(ii). Pub. L. 105-200, Sec.
    401(h)(2)(A)(iii), substituted "is made pursuant to" for
    "enforces".
      Subsec. (a)(2)(D). Pub. L. 105-200, Sec. 401(h)(2)(B), added
    subpar. (D).
      Subsec. (a)(5)(C). Pub. L. 105-200, Sec. 401(d), added subpar.
    (C).
      Subsec. (a)(9). Pub. L. 105-200, Sec. 401(h)(3)(A), substituted
    "the address of an alternate recipient" for "the name and address
    of an alternate recipient".
      1997 - Subsec. (a)(1). Pub. L. 105-33, Sec. 5613(b), inserted at
    end "A qualified medical child support order with respect to any
    participant or beneficiary shall be deemed to apply to each group
    health plan which has received such order, from which the
    participant or beneficiary is eligible to receive benefits, and
    with respect to which the requirements of paragraph (4) are met."
      Subsec. (a)(2)(B). Pub. L. 105-33, Sec. 5612(a), inserted at end
    of concluding provisions "For purposes of this subparagraph, an
    administrative notice which is issued pursuant to an administrative
    process referred to in subclause (II) of the preceding sentence and
    which has the effect of an order described in clause (i) or (ii) of
    the preceding sentence shall be treated as such an order."
      Subsec. (a)(3)(A). Pub. L. 105-33, Sec. 5611(a), inserted at end
    "except that, to the extent provided in the order, the name and
    mailing address of an official of a State or a political
    subdivision thereof may be substituted for the mailing address of
    any such alternate recipient,".
      Subsec. (a)(3)(B). Pub. L. 105-33, Sec. 5613(a)(1), (2), struck
    out "by the plan" after "to be provided" and inserted "and" at end.
      Subsec. (a)(3)(C). Pub. L. 105-33, Sec. 5613(a)(3), substituted a
    period for ", and" at end.
      Subsec. (a)(3)(D). Pub. L. 105-33, Sec. 5613(a)(4), struck out
    subpar. (D) which read as follows: "each plan to which such order
    applies."
      Subsec. (a)(9). Pub. L. 105-33, Sec. 5611(b), added par. (9).
      1996 - Subsec. (a)(2)(B). Pub. L. 104-193 substituted "which - "
    for "issued by a court of competent jurisdiction which - " in
    introductory provisions, substituted a comma for a period at end of
    cl. (ii), and inserted concluding provisions after cl. (ii).

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by section 401(h)(2)(A)(iii) of Pub. L. 105-200
    effective as if included in the enactment of section 4301(c)(4)(A)
    of the Omnibus Budget Reconciliation Act of 1993, Pub. L. 103-66,
    see section 401(h)(2)(C) of Pub. L. 105-200, set out as a note
    under section 1144 of this title.
      Pub. L. 105-200, title IV, Sec. 401(h)(3)(B), July 16, 1998, 112
    Stat. 668, provided that: "The amendment made by subparagraph (A)
    [amending this section] shall be effective as if included in the
    enactment of section 5611(b) of the Balanced Budget Act of 1997
    [Pub. L. 105-33]."

                     EFFECTIVE DATE OF 1997 AMENDMENT                 
      Section 5611(c) of Pub. L. 105-33 provided that: "The amendments
    made by this section [amending this section] shall apply with
    respect to medical child support orders issued on or after the date
    of the enactment of this Act [Aug. 5, 1997]."
      Section 5612(b) of Pub. L. 105-33 provided that: "The amendment
    made by this section [amending this section] shall be effective as
    if included in the enactment of section 381 of the Personal
    Responsibility and Work Opportunity Reconciliation Act of 1996
    (Public Law 104-193; 110 Stat. 2257)."
      Section 5613(c) of Pub. L. 105-33 provided that: "The amendments
    made by this section [amending this section] shall apply with
    respect to medical child support orders issued on or after the date
    of the enactment of this Act [Aug. 5, 1997]."

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Section 381(b) of Pub. L. 104-193 provided that:
      "(1) In general. - The amendments made by this section [amending
    this section] shall take effect on the date of the enactment of
    this Act [Aug. 22, 1996].
      "(2) Plan amendments not required until january 1, 1997. - Any
    amendment to a plan required to be made by an amendment made by
    this section shall not be required to be made before the 1st plan
    year beginning on or after January 1, 1997, if - 
        "(A) during the period after the date before the date of the
      enactment of this Act and before such 1st plan year, the plan is
      operated in accordance with the requirements of the amendments
      made by this section; and
        "(B) such plan amendment applies retroactively to the period
      after the date before the date of the enactment of this Act and
      before such 1st plan year.
    A plan shall not be treated as failing to be operated in accordance
    with the provisions of the plan merely because it operates in
    accordance with this paragraph."
      [For provisions relating to effective date of title III of Pub.
    L. 104-193, see section 395(a)-(c) of Pub. L. 104-193, set out as a
    note under section 654 of Title 42, The Public Health and Welfare.]

       NATIONAL MEDICAL SUPPORT NOTICES FOR HEALTH PLANS; QUALIFIED
                       MEDICAL CHILD SUPPORT ORDERS
      Pub. L. 105-200, title IV, Sec. 401(e)-(g), July 16, 1998, 112
    Stat. 663-668, as amended by Pub. L. 109-171, title VII, Sec.
    7307(a)(2)(B), (C), Feb. 8, 2006, 120 Stat. 146, provided that:
      "(e) National Medical Support Notices for State or Local
    Governmental Group Health Plans. - 
        "(1) In general. - Each State or local governmental group
      health plan shall provide benefits in accordance with the
      applicable requirements of any National Medical Support Notice.
        "(2) Enrollment of child in plan. - In any case in which an
      appropriately completed National Medical Support Notice is issued
      in the case of a child of a participant under a State or local
      governmental group health plan, the plan administrator, within 40
      business days after the date of the Notice, shall - 
          "(A) notify the State agency issuing the Notice with respect
        to such child whether coverage of the child is available under
        the terms of the plan and, if so, whether such child is covered
        under the plan and either the effective date of the coverage or
        any steps necessary to be taken by the custodial parent (or by
        any official of a State or political subdivision thereof
        substituted in the Notice for the name of such child in
        accordance with procedures appliable [sic] under subsection
        (b)(2) of this section [section 401(b)(2) of Pub. L. 105-200,
        42 U.S.C. 651 note]) to effectuate the coverage; and
          "(B) provide to the custodial parent (or such substituted
        official) a description of the coverage available and any forms
        or documents necessary to effectuate such coverage.
        "(3) Rule of construction. - Nothing in this subsection shall
      be construed as requiring a State or local governmental group
      health plan, upon receipt of a National Medical Support Notice,
      to provide benefits under the plan (or eligibility for such
      benefits) in addition to benefits (or eligibility for benefits)
      provided under the terms of the plan as of immediately before
      receipt of such Notice.
        "(4) Definitions. - For purposes of this subsection - 
          "(A) State or local governmental group health plan. - The
        term 'State or local governmental group health plan' means a
        group health plan which is established or maintained for its
        employees by the government of any State, any political
        subdivision of a State, or any agency or instrumentality of
        either of the foregoing.
          "(B) Alternate recipient. - The term 'alternate recipient'
        means any child of a participant who is recognized under a
        National Medical Support Notice as having a right to enrollment
        under a State or local governmental group health plan with
        respect to such participant.
          "(C) Group health plan. - The term 'group health plan' has
        the meaning provided in section 607(1) of the Employee
        Retirement Income Security Act of 1974 [29 U.S.C. 1167(1)].
          "(D) State. - The term 'State' includes the District of
        Columbia, the Commonwealth of Puerto Rico, the Virgin Islands,
        Guam, and American Samoa.
          "(E) Other terms. - The terms 'participant' and
        'administrator' shall have the meanings provided such terms,
        respectively, by paragraphs (7) and (16) of section 3 of the
        Employee Retirement Income Security Act of 1974 [29 U.S.C.
        1002].
        "(5) Effective date. - The provisions of this subsection shall
      take effect on the date of the issuance of interim regulations
      pursuant to subsection (b)(4) of this section [section 401(b)(4)
      of Pub. L. 105-200, 42 U.S.C. 651 note].
      "(f) Qualified Medical Child Support Orders and National Medical
    Support Notices for Church Plans. - 
        "(1) In general. - Each church group health plan shall provide
      benefits in accordance with the applicable requirements of any
      qualified medical child support order. A qualified medical child
      support order with respect to any participant or beneficiary
      shall be deemed to apply to each such group health plan which has
      received such order, from which the participant or beneficiary is
      eligible to receive benefits, and with respect to which the
      requirements of paragraph (4) are met.
        "(2) Definitions. - For purposes of this subsection - 
          "(A) Church group health plan. - The term 'church group
        health plan' means a group health plan which is a church plan.
          "(B) Qualified medical child support order. - The term
        'qualified medical child support order' means a medical child
        support order - 
            "(i) which creates or recognizes the existence of an
          alternate recipient's right to, or assigns to an alternate
          recipient the right to, receive benefits for which a
          participant or beneficiary is eligible under a church group
          health plan; and
            "(ii) with respect to which the requirements of paragraphs
          (3) and (4) are met.
          "(C) Medical child support order. - The term 'medical child
        support order' means any judgment, decree, or order (including
        approval of a settlement agreement) which - 
            "(i) provides for child support with respect to a child of
          a participant under a church group health plan or provides
          for health benefit coverage to such a child, is made pursuant
          to a State domestic relations law (including a community
          property law), and relates to benefits under such plan; or
            "(ii) is made pursuant to a law relating to medical child
          support described in section 1908 of the Social Security Act
          [42 U.S.C. 1396g-1] (as added by section 13822 [13623] of the
          Omnibus Budget Reconciliation Act of 1993 [Pub. L. 103-66])
          with respect to a church group health plan,
      if such judgment, decree, or order: (I) is issued by a court of
      competent jurisdiction; or (II) is issued through an
      administrative process established under State law and has the
      force and effect of law under applicable State law. For purposes
      of this paragraph, an administrative notice which is issued
      pursuant to an administrative process referred to in subclause
      (II) of the preceding sentence and which has the effect of an
      order described in clause (i) or (ii) of the preceding sentence
      shall be treated as such an order.
          "(D) Alternate recipient. - The term 'alternate recipient'
        means any child of a participant who is recognized under a
        medical child support order as having a right to enrollment
        under a church group health plan with respect to such
        participant.
          "(E) Group health plan. - The term 'group health plan' has
        the meaning provided in section 607(1) of the Employee
        Retirement Income Security Act of 1974 [29 U.S.C. 1167(1)].
          "(F) State. - The term 'State' includes the District of
        Columbia, the Commonwealth of Puerto Rico, the Virgin Islands,
        Guam, and American Samoa.
          "(G) Other terms. - The terms 'participant', 'beneficiary',
        'administrator', and 'church plan' shall have the meanings
        provided such terms, respectively, by paragraphs (7), (8),
        (16), and (33) of section 3 of the Employee Retirement Income
        Security Act of 1974 [29 U.S.C. 1102].
        "(3) Information to be included in qualified order. - A medical
      child support order meets the requirements of this paragraph only
      if such order clearly specifies - 
          "(A) the name and the last known mailing address (if any) of
        the participant and the name and mailing address of each
        alternate recipient covered by the order, except that, to the
        extent provided in the order, the name and mailing address of
        an official of a State or a political subdivision thereof may
        be substituted for the mailing address of any such alternate
        recipient;
          "(B) a reasonable description of the type of coverage to be
        provided to each such alternate recipient, or the manner in
        which such type of coverage is to be determined; and
          "(C) the period to which such order applies.
        "(4) Restriction on new types or forms of benefits. - A medical
      child support order meets the requirements of this paragraph only
      if such order does not require a church group health plan to
      provide any type or form of benefit, or any option, not otherwise
      provided under the plan, except to the extent necessary to meet
      the requirements of a law relating to medical child support
      described in section 1908 of the Social Security Act [42 U.S.C.
      1396g-1] (as added by section 13822 [13623] of the Omnibus Budget
      Reconciliation Act of 1993 [Pub. L. 103-66]).
        "(5) Procedural requirements. - 
          "(A) Timely notifications and determinations. - In the case
        of any medical child support order received by a church group
        health plan - 
            "(i) the plan administrator shall promptly notify the
          participant and each alternate recipient of the receipt of
          such order and the plan's procedures for determining whether
          medical child support orders are qualified medical child
          support orders; and
            "(ii) within a reasonable period after receipt of such
          order, the plan administrator shall determine whether such
          order is a qualified medical child support order and notify
          the participant and each alternate recipient of such
          determination.
          "(B) Establishment of procedures for determining qualified
        status of orders. - Each church group health plan shall
        establish reasonable procedures to determine whether medical
        child support orders are qualified medical child support orders
        and to administer the provision of benefits under such
        qualified orders. Such procedures - 
            "(i) shall be in writing;
            "(ii) shall provide for the notification of each person
          specified in a medical child support order as eligible to
          receive benefits under the plan (at the address included in
          the medical child support order) of such procedures promptly
          upon receipt by the plan of the medical child support order;
          and
            "(iii) shall permit an alternate recipient to designate a
          representative for receipt of copies of notices that are sent
          to the alternate recipient with respect to a medical child
          support order.
          "(C) National medical support notice deemed to be a qualified
        medical child support order. - 
            "(i) In general. - If the plan administrator of any church
          group health plan which is maintained by the employer of a
          parent of a child or to which such an employer contributes
          receives an appropriately completed National Medical Support
          Notice promulgated pursuant to subsection (b) of this section
          [section 401(b) of Pub. L. 105-200, 42 U.S.C. 651 note] in
          the case of such child, and the Notice meets the requirements
          of paragraphs (3) and (4) of this subsection, the Notice
          shall be deemed to be a qualified medical child support order
          in the case of such child.
            "(ii) Enrollment of child in plan. - In any case in which
          an appropriately completed National Medical Support Notice is
          issued in the case of a child of a participant under a church
          group health plan who is a parent of the child, and the
          Notice is deemed under clause (i) to be a qualified medical
          child support order, the plan administrator, within 40
          business days after the date of the Notice, shall - 
         "(I) notify the State agency issuing the Notice with respect
          to such child whether coverage of the child is available
          under the terms of the plan and, if so, whether such child is
          covered under the plan and either the effective date of the
          coverage or any steps necessary to be taken by the custodial
          parent (or by the official of a State or political
          subdivision thereof substituted for the name of such child
          pursuant to paragraph (3)(A)) to effectuate the coverage; and
         "(II) provide to the custodial parent (or such substituted
          official) a description of the coverage available and any
          forms or documents necessary to effectuate such coverage.
            "(iii) Rule of construction. - Nothing in this subparagraph
          shall be construed as requiring a church group health plan,
          upon receipt of a National Medical Support Notice, to provide
          benefits under the plan (or eligibility for such benefits) in
          addition to benefits (or eligibility for benefits) provided
          under the terms of the plan as of immediately before receipt
          of such Notice.
        "(6) Direct provision of benefits provided to alternate
      recipients. - Any payment for benefits made by a church group
      health plan pursuant to a medical child support order in
      reimbursement for expenses paid by an alternate recipient or an
      alternate recipient's custodial parent or legal guardian shall be
      made to the alternate recipient or the alternate recipient's
      custodial parent or legal guardian.
        "(7) Payment to state official treated as satisfaction of
      plan's obligation to make payment to alternate recipient. -
      Payment of benefits by a church group health plan to an official
      of a State or a political subdivision thereof whose name and
      address have been substituted for the address of an alternate
      recipient in a medical child support order, pursuant to paragraph
      (3)(A), shall be treated, for purposes of this subsection and
      part D of title IV of the Social Security Act [42 U.S.C. 651 et
      seq.], as payment of benefits to the alternate recipient.
        "(8) Effective date. - The provisions of this subsection shall
      take effect on the date of the issuance of interim regulations
      pursuant to subsection (b)(4) of this section [section 401(b)(4)
      of Pub. L. 105-200, 42 U.S.C. 651 note].
      "(g) Report and Recommendations Regarding the Enforcement of
    Qualified Medical Child Support Orders. - Not later than 8 months
    after the issuance of the report to the Congress pursuant to
    subsection (a)(5) [section 401(a)(5) of Pub. L. 105-200, 42 U.S.C.
    651 note], the Secretary of Health and Human Services and the
    Secretary of Labor shall jointly submit to each House of the
    Congress a report containing recommendations for appropriate
    legislation to improve the effectiveness of, and enforcement of,
    qualified medical child support orders under the provisions of
    subsection (f) of this section and section 609(a) of the Employee
    Retirement Income Security Act of 1974 (29 U.S.C. 1169(a))."

            PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1994        
      For provisions setting forth circumstances under which any
    amendment to a plan required to be made by an amendment made by
    section 4301(d) of Pub. L. 103-66 shall not be required to be made
    before the first plan year beginning on or after Jan. 1, 1994, see
    section 4301(d) of Pub. L. 103-66, set out as an Effective Date of
    1993 Amendment note under section 1021 of this title.

-FOOTNOTE-
    (!1) So in original. Probably should be section "13623".

    (!2) So in original. Probably should be section "13631".


-End-


-CITE-
    29 USC part 7 - group health plan requirements              01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 7 - group health plan requirements

-HEAD-
                  PART 7 - GROUP HEALTH PLAN REQUIREMENTS              

-End-


-CITE-
    29 USC Subpart A - Requirements Relating to Portability,
           Access, and Renewability                        01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 7 - group health plan requirements
    Subpart A - Requirements Relating to Portability, Access, and
                 Renewability                      

-HEAD-
       SUBPART A - REQUIREMENTS RELATING TO PORTABILITY, ACCESS, AND
                               RENEWABILITY

-End-



-CITE-
    29 USC Sec. 1181                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 7 - group health plan requirements
    Subpart A - Requirements Relating to Portability, Access, and
                 Renewability                      

-HEAD-
    Sec. 1181. Increased portability through limitation on preexisting
      condition exclusions

-STATUTE-
    (a) Limitation on preexisting condition exclusion period; crediting
      for periods of previous coverage
      Subject to subsection (d) of this section, a group health plan,
    and a health insurance issuer offering group health insurance
    coverage, may, with respect to a participant or beneficiary, impose
    a preexisting condition exclusion only if - 
        (1) such exclusion relates to a condition (whether physical or
      mental), regardless of the cause of the condition, for which
      medical advice, diagnosis, care, or treatment was recommended or
      received within the 6-month period ending on the enrollment date;
        (2) such exclusion extends for a period of not more than 12
      months (or 18 months in the case of a late enrollee) after the
      enrollment date; and
        (3) the period of any such preexisting condition exclusion is
      reduced by the aggregate of the periods of creditable coverage
      (if any, as defined in subsection (c)(1) of this section)
      applicable to the participant or beneficiary as of the enrollment
      date.
    (b) Definitions
      For purposes of this part - 
      (1) Preexisting condition exclusion
        (A) In general
          The term "preexisting condition exclusion" means, with
        respect to coverage, a limitation or exclusion of benefits
        relating to a condition based on the fact that the condition
        was present before the date of enrollment for such coverage,
        whether or not any medical advice, diagnosis, care, or
        treatment was recommended or received before such date.
        (B) Treatment of genetic information
          Genetic information shall not be treated as a condition
        described in subsection (a)(1) of this section in the absence
        of a diagnosis of the condition related to such information.
      (2) Enrollment date
        The term "enrollment date" means, with respect to an individual
      covered under a group health plan or health insurance coverage,
      the date of enrollment of the individual in the plan or coverage
      or, if earlier, the first day of the waiting period for such
      enrollment.
      (3) Late enrollee
        The term "late enrollee" means, with respect to coverage under
      a group health plan, a participant or beneficiary who enrolls
      under the plan other than during - 
          (A) the first period in which the individual is eligible to
        enroll under the plan, or
          (B) a special enrollment period under subsection (f) of this
        section.
      (4) Waiting period
        The term "waiting period" means, with respect to a group health
      plan and an individual who is a potential participant or
      beneficiary in the plan, the period that must pass with respect
      to the individual before the individual is eligible to be covered
      for benefits under the terms of the plan.
    (c) Rules relating to crediting previous coverage
      (1) "Creditable coverage" defined
        For purposes of this part, the term "creditable coverage"
      means, with respect to an individual, coverage of the individual
      under any of the following:
          (A) A group health plan.
          (B) Health insurance coverage.
          (C) Part A or part B of title XVIII of the Social Security
        Act [42 U.S.C. 1395c et seq.; 1395j et seq.].
          (D) Title XIX of the Social Security Act [42 U.S.C. 1396 et
        seq.], other than coverage consisting solely of benefits under
        section 1928 [42 U.S.C. 1396s].
          (E) Chapter 55 of title 10.
          (F) A medical care program of the Indian Health Service or of
        a tribal organization.
          (G) A State health benefits risk pool.
          (H) A health plan offered under chapter 89 of title 5.
          (I) A public health plan (as defined in regulations).
          (J) A health benefit plan under section 2504(e) of title 22.

      Such term does not include coverage consisting solely of coverage
      of excepted benefits (as defined in section 1191b(c) of this
      title).
      (2) Not counting periods before significant breaks in coverage
        (A) In general
          A period of creditable coverage shall not be counted, with
        respect to enrollment of an individual under a group health
        plan, if, after such period and before the enrollment date,
        there was a 63-day period during all of which the individual
        was not covered under any creditable coverage.
        (B) Waiting period not treated as a break in coverage
          For purposes of subparagraph (A) and subsection (d)(4) of
        this section, any period that an individual is in a waiting
        period for any coverage under a group health plan (or for group
        health insurance coverage) or is in an affiliation period (as
        defined in subsection (g)(2) of this section) shall not be
        taken into account in determining the continuous period under
        subparagraph (A).
      (3) Method of crediting coverage
        (A) Standard method
          Except as otherwise provided under subparagraph (B), for
        purposes of applying subsection (a)(3) of this section, a group
        health plan, and a health insurance issuer offering group
        health insurance coverage, shall count a period of creditable
        coverage without regard to the specific benefits covered during
        the period.
        (B) Election of alternative method
          A group health plan, or a health insurance issuer offering
        group health insurance coverage, may elect to apply subsection
        (a)(3) of this section based on coverage of benefits within
        each of several classes or categories of benefits specified in
        regulations rather than as provided under subparagraph (A).
        Such election shall be made on a uniform basis for all
        participants and beneficiaries. Under such election a group
        health plan or issuer shall count a period of creditable
        coverage with respect to any class or category of benefits if
        any level of benefits is covered within such class or category.
        (C) Plan notice
          In the case of an election with respect to a group health
        plan under subparagraph (B) (whether or not health insurance
        coverage is provided in connection with such plan), the plan
        shall - 
            (i) prominently state in any disclosure statements
          concerning the plan, and state to each enrollee at the time
          of enrollment under the plan, that the plan has made such
          election, and
            (ii) include in such statements a description of the effect
          of this election.
      (4) Establishment of period
        Periods of creditable coverage with respect to an individual
      shall be established through presentation of certifications
      described in subsection (e) of this section or in such other
      manner as may be specified in regulations.
    (d) Exceptions
      (1) Exclusion not applicable to certain newborns
        Subject to paragraph (4), a group health plan, and a health
      insurance issuer offering group health insurance coverage, may
      not impose any preexisting condition exclusion in the case of an
      individual who, as of the last day of the 30-day period beginning
      with the date of birth, is covered under creditable coverage.
      (2) Exclusion not applicable to certain adopted children
        Subject to paragraph (4), a group health plan, and a health
      insurance issuer offering group health insurance coverage, may
      not impose any preexisting condition exclusion in the case of a
      child who is adopted or placed for adoption before attaining 18
      years of age and who, as of the last day of the 30-day period
      beginning on the date of the adoption or placement for adoption,
      is covered under creditable coverage. The previous sentence shall
      not apply to coverage before the date of such adoption or
      placement for adoption.
      (3) Exclusion not applicable to pregnancy
        A group health plan, and health insurance issuer offering group
      health insurance coverage, may not impose any preexisting
      condition exclusion relating to pregnancy as a preexisting
      condition.
      (4) Loss if break in coverage
        Paragraphs (1) and (2) shall no longer apply to an individual
      after the end of the first 63-day period during all of which the
      individual was not covered under any creditable coverage.
    (e) Certifications and disclosure of coverage
      (1) Requirement for certification of period of creditable
        coverage
        (A) In general
          A group health plan, and a health insurance issuer offering
        group health insurance coverage, shall provide the
        certification described in subparagraph (B) - 
            (i) at the time an individual ceases to be covered under
          the plan or otherwise becomes covered under a COBRA
          continuation provision,
            (ii) in the case of an individual becoming covered under
          such a provision, at the time the individual ceases to be
          covered under such provision, and
            (iii) on the request on behalf of an individual made not
          later than 24 months after the date of cessation of the
          coverage described in clause (i) or (ii), whichever is later.

        The certification under clause (i) may be provided, to the
        extent practicable, at a time consistent with notices required
        under any applicable COBRA continuation provision.
        (B) Certification
          The certification described in this subparagraph is a written
        certification of - 
            (i) the period of creditable coverage of the individual
          under such plan and the coverage (if any) under such COBRA
          continuation provision, and
            (ii) the waiting period (if any) (and affiliation period,
          if applicable) imposed with respect to the individual for any
          coverage under such plan.
        (C) Issuer compliance
          To the extent that medical care under a group health plan
        consists of group health insurance coverage, the plan is deemed
        to have satisfied the certification requirement under this
        paragraph if the health insurance issuer offering the coverage
        provides for such certification in accordance with this
        paragraph.
      (2) Disclosure of information on previous benefits
        In the case of an election described in subsection (c)(3)(B) of
      this section by a group health plan or health insurance issuer,
      if the plan or issuer enrolls an individual for coverage under
      the plan and the individual provides a certification of coverage
      of the individual under paragraph (1) - 
          (A) upon request of such plan or issuer, the entity which
        issued the certification provided by the individual shall
        promptly disclose to such requesting plan or issuer information
        on coverage of classes and categories of health benefits
        available under such entity's plan or coverage, and
          (B) such entity may charge the requesting plan or issuer for
        the reasonable cost of disclosing such information.
      (3) Regulations
        The Secretary shall establish rules to prevent an entity's
      failure to provide information under paragraph (1) or (2) with
      respect to previous coverage of an individual from adversely
      affecting any subsequent coverage of the individual under another
      group health plan or health insurance coverage.
    (f) Special enrollment periods
      (1) Individuals losing other coverage
        A group health plan, and a health insurance issuer offering
      group health insurance coverage in connection with a group health
      plan, shall permit an employee who is eligible, but not enrolled,
      for coverage under the terms of the plan (or a dependent of such
      an employee if the dependent is eligible, but not enrolled, for
      coverage under such terms) to enroll for coverage under the terms
      of the plan if each of the following conditions is met:
          (A) The employee or dependent was covered under a group
        health plan or had health insurance coverage at the time
        coverage was previously offered to the employee or dependent.
          (B) The employee stated in writing at such time that coverage
        under a group health plan or health insurance coverage was the
        reason for declining enrollment, but only if the plan sponsor
        or issuer (if applicable) required such a statement at such
        time and provided the employee with notice of such requirement
        (and the consequences of such requirement) at such time.
          (C) The employee's or dependent's coverage described in
        subparagraph (A) - 
            (i) was under a COBRA continuation provision and the
          coverage under such provision was exhausted; or
            (ii) was not under such a provision and either the coverage
          was terminated as a result of loss of eligibility for the
          coverage (including as a result of legal separation, divorce,
          death, termination of employment, or reduction in the number
          of hours of employment) or employer contributions toward such
          coverage were terminated.

          (D) Under the terms of the plan, the employee requests such
        enrollment not later than 30 days after the date of exhaustion
        of coverage described in subparagraph (C)(i) or termination of
        coverage or employer contribution described in subparagraph
        (C)(ii).
      (2) For dependent beneficiaries
        (A) In general
          If - 
            (i) a group health plan makes coverage available with
          respect to a dependent of an individual,
            (ii) the individual is a participant under the plan (or has
          met any waiting period applicable to becoming a participant
          under the plan and is eligible to be enrolled under the plan
          but for a failure to enroll during a previous enrollment
          period), and
            (iii) a person becomes such a dependent of the individual
          through marriage, birth, or adoption or placement for
          adoption,

        the group health plan shall provide for a dependent special
        enrollment period described in subparagraph (B) during which
        the person (or, if not otherwise enrolled, the individual) may
        be enrolled under the plan as a dependent of the individual,
        and in the case of the birth or adoption of a child, the spouse
        of the individual may be enrolled as a dependent of the
        individual if such spouse is otherwise eligible for coverage.
        (B) Dependent special enrollment period
          A dependent special enrollment period under this subparagraph
        shall be a period of not less than 30 days and shall begin on
        the later of - 
            (i) the date dependent coverage is made available, or
            (ii) the date of the marriage, birth, or adoption or
          placement for adoption (as the case may be) described in
          subparagraph (A)(iii).
        (C) No waiting period
          If an individual seeks to enroll a dependent during the first
        30 days of such a dependent special enrollment period, the
        coverage of the dependent shall become effective - 
            (i) in the case of marriage, not later than the first day
          of the first month beginning after the date the completed
          request for enrollment is received;
            (ii) in the case of a dependent's birth, as of the date of
          such birth; or
            (iii) in the case of a dependent's adoption or placement
          for adoption, the date of such adoption or placement for
          adoption.
    (g) Use of affiliation period by HMOs as alternative to preexisting
      condition exclusion
      (1) In general
        In the case of a group health plan that offers medical care
      through health insurance coverage offered by a health maintenance
      organization, the plan may provide for an affiliation period with
      respect to coverage through the organization only if - 
          (A) no preexisting condition exclusion is imposed with
        respect to coverage through the organization,
          (B) the period is applied uniformly without regard to any
        health status-related factors, and
          (C) such period does not exceed 2 months (or 3 months in the
        case of a late enrollee).
      (2) Affiliation period
        (A) Defined
          For purposes of this part, the term "affiliation period"
        means a period which, under the terms of the health insurance
        coverage offered by the health maintenance organization, must
        expire before the health insurance coverage becomes effective.
        The organization is not required to provide health care
        services or benefits during such period and no premium shall be
        charged to the participant or beneficiary for any coverage
        during the period.
        (B) Beginning
          Such period shall begin on the enrollment date.
        (C) Runs concurrently with waiting periods
          An affiliation period under a plan shall run concurrently
        with any waiting period under the plan.
      (3) Alternative methods
        A health maintenance organization described in paragraph (1)
      may use alternative methods, from those described in such
      paragraph, to address adverse selection as approved by the State
      insurance commissioner or official or officials designated by the
      State to enforce the requirements of part A of title XXVII of the
      Public Health Service Act [42 U.S.C. 300gg et seq.] for the State
      involved with respect to such issuer.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 701, as added Pub. L. 104-191, title
    I, Sec. 101(a), Aug. 21, 1996, 110 Stat. 1939; amended Pub. L. 104-
    204, title VI, Sec. 603(b)(3)(H), Sept. 26, 1996, 110 Stat. 2938.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Social Security Act, referred to in subsec. (c)(1)(C), (D),
    is act Aug. 14, 1935, ch. 531, 49 Stat. 620, as amended. Parts A
    and B of title XVIII of the Act are classified generally to parts A
    (Sec. 1395c et seq.) and B (Sec. 1395j et seq.) of subchapter XVIII
    of chapter 7 of Title 42, The Public Health and Welfare. Title XIX
    of the Act is classified generally to subchapter XIX (Sec. 1396 et
    seq.) of chapter 7 of Title 42. For complete classification of this
    Act to the Code, see section 1305 of Title 42 and Tables.
      The Public Health Service Act, referred to in subsec. (g)(3), is
    act July 1, 1944, ch. 373, 58 Stat. 682, as amended. Part A of
    title XXVII of the Act is classified generally to part A (Sec.
    300gg et seq.) of subchapter XXV of chapter 6A of Title 42. For
    complete classification of this Act to the Code, see Short Title
    note set out under section 201 of Title 42 and Tables.


-MISC1-
                                AMENDMENTS                            
      1996 - Subsec. (c)(1). Pub. L. 104-204 made technical amendment
    to reference in original act which appears in text as reference to
    section 1191b of this title.

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Amendment by Pub. L. 104-204 applicable with respect to group
    health plans for plan years beginning on and after Jan. 1, 1998,
    see section 603(c) of Pub. L. 104-204, set out as a note under
    section 1003 of this title.

                              EFFECTIVE DATE                          
      Section 101(g) of Pub. L. 104-191 provided that:
      "(1) In general. - Except as provided in this section, this
    section [enacting this part and amending sections 1003, 1021, 1022,
    1024, 1132, 1136, and 1144 of this title] (and the amendments made
    by this section) shall apply with respect to group health plans for
    plan years beginning after June 30, 1997.
      "(2) Determination of creditable coverage. - 
        "(A) Period of coverage. - 
          "(i) In general. - Subject to clause (ii), no period before
        July 1, 1996, shall be taken into account under part 7 of
        subtitle B of title I of the Employee Retirement Income
        Security Act of 1974 (as added by this section) [this part] in
        determining creditable coverage.
          "(ii) Special rule for certain periods. - The Secretary of
        Labor, consistent with section 104 [42 U.S.C. 300gg-92 note],
        shall provide for a process whereby individuals who need to
        establish creditable coverage for periods before July 1, 1996,
        and who would have such coverage credited but for clause (i)
        may be given credit for creditable coverage for such periods
        through the presentation of documents or other means.
        "(B) Certifications, etc. - 
          "(i) In general. - Subject to clauses (ii) and (iii),
        subsection (e) of section 701 of the Employee Retirement Income
        Security Act of 1974 [29 U.S.C. 1181(e)](as added by this
        section) shall apply to events occurring after June 30, 1996.
          "(ii) No certification required to be provided before june 1,
        1997. - In no case is a certification required to be provided
        under such subsection before June 1, 1997.
          "(iii) Certification only on written request for events
        occurring before october 1, 1996. - In the case of an event
        occurring after June 30, 1996, and before October 1, 1996, a
        certification is not required to be provided under such
        subsection unless an individual (with respect to whom the
        certification is otherwise required to be made) requests such
        certification in writing.
        "(C) Transitional rule. - In the case of an individual who
      seeks to establish creditable coverage for any period for which
      certification is not required because it relates to an event
      occurring before June 30, 1996 - 
          "(i) the individual may present other credible evidence of
        such coverage in order to establish the period of creditable
        coverage; and
          "(ii) a group health plan and a health insurance issuer shall
        not be subject to any penalty or enforcement action with
        respect to the plan's or issuer's crediting (or not crediting)
        such coverage if the plan or issuer has sought to comply in
        good faith with the applicable requirements under the
        amendments made by this section [enacting this part and
        amending sections 1003, 1021, 1022, 1024, 1132, 1136, and 1144
        of this title].
      "(3) Special rule for collective bargaining agreements. - Except
    as provided in paragraph (2), in the case of a group health plan
    maintained pursuant to one or more collective bargaining agreements
    between employee representatives and one or more employers ratified
    before the date of the enactment of this Act [Aug. 21, 1996], part
    7 of subtitle B of title I of Employee Retirement Income Security
    Act of 1974 [this part] (other than section 701(e) thereof [29
    U.S.C. 1181(e)]) shall not apply to plan years beginning before the
    later of - 
        "(A) the date on which the last of the collective bargaining
      agreements relating to the plan terminates (determined without
      regard to any extension thereof agreed to after the date of the
      enactment of this Act), or
        "(B) July 1, 1997.
    For purposes of subparagraph (A), any plan amendment made pursuant
    to a collective bargaining agreement relating to the plan which
    amends the plan solely to conform to any requirement of such part
    shall not be treated as a termination of such collective bargaining
    agreement.
      "(4) Timely regulations. - The Secretary of Labor, consistent
    with section 104 [42 U.S.C. 300gg-92 note], shall first issue by
    not later than April 1, 1997, such regulations as may be necessary
    to carry out the amendments made by this section.
      "(5) Limitation on actions. - No enforcement action shall be
    taken, pursuant to the amendments made by this section, against a
    group health plan or health insurance issuer with respect to a
    violation of a requirement imposed by such amendments before
    January 1, 1998, or, if later, the date of issuance of regulations
    referred to in paragraph (4), if the plan or issuer has sought to
    comply in good faith with such requirements."

-End-



-CITE-
    29 USC Sec. 1182                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 7 - group health plan requirements
    Subpart A - Requirements Relating to Portability, Access, and
                 Renewability                      

-HEAD-
    Sec. 1182. Prohibiting discrimination against individual
      participants and beneficiaries based on health status

-STATUTE-
    (a) In eligibility to enroll
      (1) In general
        Subject to paragraph (2), a group health plan, and a health
      insurance issuer offering group health insurance coverage in
      connection with a group health plan, may not establish rules for
      eligibility (including continued eligibility) of any individual
      to enroll under the terms of the plan based on any of the
      following health status-related factors in relation to the
      individual or a dependent of the individual:
          (A) Health status.
          (B) Medical condition (including both physical and mental
        illnesses).
          (C) Claims experience.
          (D) Receipt of health care.
          (E) Medical history.
          (F) Genetic information.
          (G) Evidence of insurability (including conditions arising
        out of acts of domestic violence).
          (H) Disability.
      (2) No application to benefits or exclusions
        To the extent consistent with section 1181 of this title,
      paragraph (1) shall not be construed - 
          (A) to require a group health plan, or group health insurance
        coverage, to provide particular benefits other than those
        provided under the terms of such plan or coverage, or
          (B) to prevent such a plan or coverage from establishing
        limitations or restrictions on the amount, level, extent, or
        nature of the benefits or coverage for similarly situated
        individuals enrolled in the plan or coverage.
      (3) Construction
        For purposes of paragraph (1), rules for eligibility to enroll
      under a plan include rules defining any applicable waiting
      periods for such enrollment.
    (b) In premium contributions
      (1) In general
        A group health plan, and a health insurance issuer offering
      health insurance coverage in connection with a group health plan,
      may not require any individual (as a condition of enrollment or
      continued enrollment under the plan) to pay a premium or
      contribution which is greater than such premium or contribution
      for a similarly situated individual enrolled in the plan on the
      basis of any health status-related factor in relation to the
      individual or to an individual enrolled under the plan as a
      dependent of the individual.
      (2) Construction
        Nothing in paragraph (1) shall be construed - 
          (A) to restrict the amount that an employer may be charged
        for coverage under a group health plan; or
          (B) to prevent a group health plan, and a health insurance
        issuer offering group health insurance coverage, from
        establishing premium discounts or rebates or modifying
        otherwise applicable copayments or deductibles in return for
        adherence to programs of health promotion and disease
        prevention.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 702, as added Pub. L. 104-191, title
    I, Sec. 101(a), Aug. 21, 1996, 110 Stat. 1945.)

-End-



-CITE-
    29 USC Sec. 1183                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 7 - group health plan requirements
    Subpart A - Requirements Relating to Portability, Access, and
                 Renewability                      

-HEAD-
    Sec. 1183. Guaranteed renewability in multiemployer plans and
      multiple employer welfare arrangements

-STATUTE-
      A group health plan which is a multiemployer plan or which is a
    multiple employer welfare arrangement may not deny an employer
    whose employees are covered under such a plan continued access to
    the same or different coverage under the terms of such a plan,
    other than - 
        (1) for nonpayment of contributions;
        (2) for fraud or other intentional misrepresentation of
      material fact by the employer;
        (3) for noncompliance with material plan provisions;
        (4) because the plan is ceasing to offer any coverage in a
      geographic area;
        (5) in the case of a plan that offers benefits through a
      network plan, there is no longer any individual enrolled through
      the employer who lives, resides, or works in the service area of
      the network plan and the plan applies this paragraph uniformly
      without regard to the claims experience of employers or any
      health status-related factor in relation to such individuals or
      their dependents; and
        (6) for failure to meet the terms of an applicable collective
      bargaining agreement, to renew a collective bargaining or other
      agreement requiring or authorizing contributions to the plan, or
      to employ employees covered by such an agreement.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 703, as added Pub. L. 104-191, title
    I, Sec. 101(a), Aug. 21, 1996, 110 Stat. 1946.)

-End-


-CITE-
    29 USC Subpart B - Other Requirements                       01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 7 - group health plan requirements
    Subpart B - Other Requirements

-HEAD-
                      SUBPART B - OTHER REQUIREMENTS                  

-End-



-CITE-
    29 USC Sec. 1185                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 7 - group health plan requirements
    Subpart B - Other Requirements

-HEAD-
    Sec. 1185. Standards relating to benefits for mothers and newborns

-STATUTE-
    (a) Requirements for minimum hospital stay following birth
      (1) In general
        A group health plan, and a health insurance issuer offering
      group health insurance coverage, may not - 
          (A) except as provided in paragraph (2) - 
            (i) restrict benefits for any hospital length of stay in
          connection with childbirth for the mother or newborn child,
          following a normal vaginal delivery, to less than 48 hours,
          or
            (ii) restrict benefits for any hospital length of stay in
          connection with childbirth for the mother or newborn child,
          following a cesarean section, to less than 96 hours; or

          (B) require that a provider obtain authorization from the
        plan or the issuer for prescribing any length of stay required
        under subparagraph (A) (without regard to paragraph (2)).
      (2) Exception
        Paragraph (1)(A) shall not apply in connection with any group
      health plan or health insurance issuer in any case in which the
      decision to discharge the mother or her newborn child prior to
      the expiration of the minimum length of stay otherwise required
      under paragraph (1)(A) is made by an attending provider in
      consultation with the mother.
    (b) Prohibitions
      A group health plan, and a health insurance issuer offering group
    health insurance coverage in connection with a group health plan,
    may not - 
        (1) deny to the mother or her newborn child eligibility, or
      continued eligibility, to enroll or to renew coverage under the
      terms of the plan, solely for the purpose of avoiding the
      requirements of this section;
        (2) provide monetary payments or rebates to mothers to
      encourage such mothers to accept less than the minimum
      protections available under this section;
        (3) penalize or otherwise reduce or limit the reimbursement of
      an attending provider because such provider provided care to an
      individual participant or beneficiary in accordance with this
      section;
        (4) provide incentives (monetary or otherwise) to an attending
      provider to induce such provider to provide care to an individual
      participant or beneficiary in a manner inconsistent with this
      section; or
        (5) subject to subsection (c)(3) of this section, restrict
      benefits for any portion of a period within a hospital length of
      stay required under subsection (a) of this section in a manner
      which is less favorable than the benefits provided for any
      preceding portion of such stay.
    (c) Rules of construction
      (1) Nothing in this section shall be construed to require a
    mother who is a participant or beneficiary - 
        (A) to give birth in a hospital; or
        (B) to stay in the hospital for a fixed period of time
      following the birth of her child.

      (2) This section shall not apply with respect to any group health
    plan, or any group health insurance coverage offered by a health
    insurance issuer, which does not provide benefits for hospital
    lengths of stay in connection with childbirth for a mother or her
    newborn child.
      (3) Nothing in this section shall be construed as preventing a
    group health plan or issuer from imposing deductibles, coinsurance,
    or other cost-sharing in relation to benefits for hospital lengths
    of stay in connection with childbirth for a mother or newborn child
    under the plan (or under health insurance coverage offered in
    connection with a group health plan), except that such coinsurance
    or other cost-sharing for any portion of a period within a hospital
    length of stay required under subsection (a) of this section may
    not be greater than such coinsurance or cost-sharing for any
    preceding portion of such stay.
    (d) Notice under group health plan
      The imposition of the requirements of this section shall be
    treated as a material modification in the terms of the plan
    described in section 1022(a)(1) (!1) of this title, for purposes of
    assuring notice of such requirements under the plan; except that
    the summary description required to be provided under the last
    sentence of section 1024(b)(1) of this title with respect to such
    modification shall be provided by not later than 60 days after the
    first day of the first plan year in which such requirements apply.

    (e) Level and type of reimbursements
      Nothing in this section shall be construed to prevent a group
    health plan or a health insurance issuer offering group health
    insurance coverage from negotiating the level and type of
    reimbursement with a provider for care provided in accordance with
    this section.
    (f) Preemption; exception for health insurance coverage in certain
      States
      (1) In general
        The requirements of this section shall not apply with respect
      to health insurance coverage if there is a State law (as defined
      in section 1191(d)(1) of this title) for a State that regulates
      such coverage that is described in any of the following
      subparagraphs:
          (A) Such State law requires such coverage to provide for at
        least a 48-hour hospital length of stay following a normal
        vaginal delivery and at least a 96-hour hospital length of stay
        following a cesarean section.
          (B) Such State law requires such coverage to provide for
        maternity and pediatric care in accordance with guidelines
        established by the American College of Obstetricians and
        Gynecologists, the American Academy of Pediatrics, or other
        established professional medical associations.
          (C) Such State law requires, in connection with such coverage
        for maternity care, that the hospital length of stay for such
        care is left to the decision of (or required to be made by) the
        attending provider in consultation with the mother.
      (2) Construction
        Section 1191(a)(1) of this title shall not be construed as
      superseding a State law described in paragraph (1).

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 711, as added Pub. L. 104-204, title
    VI, Sec. 603(a)(5), Sept. 26, 1996, 110 Stat. 2935.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 1022(a)(1) of this title, referred to in subsec. (d), was
    redesignated section 1022(a) of this title by Pub. L. 105-34, title
    XV, Sec. 1503(b)(1)(B), Aug. 5, 1997, 111 Stat. 1061.


-MISC1-
                              EFFECTIVE DATE                          
      Section applicable with respect to group health plans for plan
    years beginning on and after Jan. 1, 1998, see section 603(c) of
    Pub. L. 104-204, set out as an Effective Date of 1996 Amendment
    note under section 1003 of this title.

-FOOTNOTE-
    (!1) See References in Text note below.


-End-



-CITE-
    29 USC Sec. 1185a                                           01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 7 - group health plan requirements
    Subpart B - Other Requirements

-HEAD-
    Sec. 1185a. Parity in application of certain limits to mental
      health benefits

-STATUTE-
    (a) In general
      (1) Aggregate lifetime limits
        In the case of a group health plan (or health insurance
      coverage offered in connection with such a plan) that provides
      both medical and surgical benefits and mental health benefits - 
        (A) No lifetime limit
          If the plan or coverage does not include an aggregate
        lifetime limit on substantially all medical and surgical
        benefits, the plan or coverage may not impose any aggregate
        lifetime limit on mental health benefits.
        (B) Lifetime limit
          If the plan or coverage includes an aggregate lifetime limit
        on substantially all medical and surgical benefits (in this
        paragraph referred to as the "applicable lifetime limit"), the
        plan or coverage shall either - 
            (i) apply the applicable lifetime limit both to the medical
          and surgical benefits to which it otherwise would apply and
          to mental health benefits and not distinguish in the
          application of such limit between such medical and surgical
          benefits and mental health benefits; or
            (ii) not include any aggregate lifetime limit on mental
          health benefits that is less than the applicable lifetime
          limit.
        (C) Rule in case of different limits
          In the case of a plan or coverage that is not described in
        subparagraph (A) or (B) and that includes no or different
        aggregate lifetime limits on different categories of medical
        and surgical benefits, the Secretary shall establish rules
        under which subparagraph (B) is applied to such plan or
        coverage with respect to mental health benefits by substituting
        for the applicable lifetime limit an average aggregate lifetime
        limit that is computed taking into account the weighted average
        of the aggregate lifetime limits applicable to such categories.
      (2) Annual limits
        In the case of a group health plan (or health insurance
      coverage offered in connection with such a plan) that provides
      both medical and surgical benefits and mental health benefits - 
        (A) No annual limit
          If the plan or coverage does not include an annual limit on
        substantially all medical and surgical benefits, the plan or
        coverage may not impose any annual limit on mental health
        benefits.
        (B) Annual limit
          If the plan or coverage includes an annual limit on
        substantially all medical and surgical benefits (in this
        paragraph referred to as the "applicable annual limit"), the
        plan or coverage shall either - 
            (i) apply the applicable annual limit both to medical and
          surgical benefits to which it otherwise would apply and to
          mental health benefits and not distinguish in the application
          of such limit between such medical and surgical benefits and
          mental health benefits; or
            (ii) not include any annual limit on mental health benefits
          that is less than the applicable annual limit.
        (C) Rule in case of different limits
          In the case of a plan or coverage that is not described in
        subparagraph (A) or (B) and that includes no or different
        annual limits on different categories of medical and surgical
        benefits, the Secretary shall establish rules under which
        subparagraph (B) is applied to such plan or coverage with
        respect to mental health benefits by substituting for the
        applicable annual limit an average annual limit that is
        computed taking into account the weighted average of the annual
        limits applicable to such categories.
    (b) Construction
      Nothing in this section shall be construed - 
        (1) as requiring a group health plan (or health insurance
      coverage offered in connection with such a plan) to provide any
      mental health benefits; or
        (2) in the case of a group health plan (or health insurance
      coverage offered in connection with such a plan) that provides
      mental health benefits, as affecting the terms and conditions
      (including cost sharing, limits on numbers of visits or days of
      coverage, and requirements relating to medical necessity)
      relating to the amount, duration, or scope of mental health
      benefits under the plan or coverage, except as specifically
      provided in subsection (a) of this section (in regard to parity
      in the imposition of aggregate lifetime limits and annual limits
      for mental health benefits).
    (c) Exemptions
      (1) Small employer exemption
        (A) In general
          This section shall not apply to any group health plan (and
        group health insurance coverage offered in connection with a
        group health plan) for any plan year of a small employer.
        (B) Small employer
          For purposes of subparagraph (A), the term "small employer"
        means, in connection with a group health plan with respect to a
        calendar year and a plan year, an employer who employed an
        average of at least 2 but not more than 50 employees on
        business days during the preceding calendar year and who
        employs at least 2 employees on the first day of the plan year.
        (C) Application of certain rules in determination of employer
          size
          For purposes of this paragraph - 
          (i) Application of aggregation rule for employers
            Rules similar to the rules under subsections (b), (c), (m),
          and (o) of section 414 of title 26 shall apply for purposes
          of treating persons as a single employer.
          (ii) Employers not in existence in preceding year
            In the case of an employer which was not in existence
          throughout the preceding calendar year, the determination of
          whether such employer is a small employer shall be based on
          the average number of employees that it is reasonably
          expected such employer will employ on business days in the
          current calendar year.
          (iii) Predecessors
            Any reference in this paragraph to an employer shall
          include a reference to any predecessor of such employer.
      (2) Increased cost exemption
        This section shall not apply with respect to a group health
      plan (or health insurance coverage offered in connection with a
      group health plan) if the application of this section to such
      plan (or to such coverage) results in an increase in the cost
      under the plan (or for such coverage) of at least 1 percent.
    (d) Separate application to each option offered
      In the case of a group health plan that offers a participant or
    beneficiary two or more benefit package options under the plan, the
    requirements of this section shall be applied separately with
    respect to each such option.
    (e) Definitions
      For purposes of this section - 
      (1) Aggregate lifetime limit
        The term "aggregate lifetime limit" means, with respect to
      benefits under a group health plan or health insurance coverage,
      a dollar limitation on the total amount that may be paid with
      respect to such benefits under the plan or health insurance
      coverage with respect to an individual or other coverage unit.
      (2) Annual limit
        The term "annual limit" means, with respect to benefits under a
      group health plan or health insurance coverage, a dollar
      limitation on the total amount of benefits that may be paid with
      respect to such benefits in a 12-month period under the plan or
      health insurance coverage with respect to an individual or other
      coverage unit.
      (3) Medical or surgical benefits
        The term "medical or surgical benefits" means benefits with
      respect to medical or surgical services, as defined under the
      terms of the plan or coverage (as the case may be), but does not
      include mental health benefits.
      (4) Mental health benefits
        The term "mental health benefits" means benefits with respect
      to mental health services, as defined under the terms of the plan
      or coverage (as the case may be), but does not include benefits
      with respect to treatment of substance abuse or chemical
      dependency.
    (f) Sunset
      This section shall not apply to benefits for services furnished
    after December 31, 2007.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 712, as added Pub. L. 104-204, title
    VII, Sec. 702(a), Sept. 26, 1996, 110 Stat. 2944; amended Pub. L.
    107-116, title VII, Sec. 701(a), Jan. 10, 2002, 115 Stat. 2228;
    Pub. L. 107-313, Sec. 2(a), Dec. 2, 2002, 116 Stat. 2457; Pub. L.
    108-197, Sec. 2(a), Dec. 19, 2003, 117 Stat. 2898; Pub. L. 108-311,
    title III, Sec. 302(b), Oct. 4, 2004, 118 Stat. 1178; Pub. L. 109-
    151, Sec. 1(a), Dec. 30, 2005, 119 Stat. 2886; Pub. L. 109-432,
    div. A, title I, Sec. 115(b), Dec. 20, 2006, 120 Stat. 2941.)


-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (f). Pub. L. 109-432 substituted "2007" for
    "2006".
      2005 - Subsec. (f). Pub. L. 109-151 substituted "December 31,
    2006" for "December 31, 2005".
      2004 - Subsec. (f). Pub. L. 108-311 substituted "after December
    31, 2005" for "on or after December 31, 2004".
      2003 - Subsec. (f). Pub. L. 108-197 substituted "December 31,
    2004" for "December 31, 2003".
      2002 - Subsec. (f). Pub. L. 107-313 substituted "December 31,
    2003" for "December 31, 2002".
      Pub. L. 107-116 substituted "December 31, 2002" for "September
    30, 2001".

                              EFFECTIVE DATE                          
      Section 702(c) of Pub. L. 104-204 provided that: "The amendments
    made by this section [enacting this section] shall apply with
    respect to group health plans for plan years beginning on or after
    January 1, 1998."

-End-



-CITE-
    29 USC Sec. 1185b                                           01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 7 - group health plan requirements
    Subpart B - Other Requirements

-HEAD-
    Sec. 1185b. Required coverage for reconstructive surgery following
      mastectomies

-STATUTE-
    (a) In general
      A group health plan, and a health insurance issuer providing
    health insurance coverage in connection with a group health plan,
    that provides medical and surgical benefits with respect to a
    mastectomy shall provide, in a case of a participant or beneficiary
    who is receiving benefits in connection with a mastectomy and who
    elects breast reconstruction in connection with such mastectomy,
    coverage for - 
        (1) all stages of reconstruction of the breast on which the
      mastectomy has been performed;
        (2) surgery and reconstruction of the other breast to produce a
      symmetrical appearance; and
        (3) prostheses and physical complications of mastectomy,
      including lymphedemas;

    in a manner determined in consultation with the attending physician
    and the patient. Such coverage may be subject to annual deductibles
    and coinsurance provisions as may be deemed appropriate and as are
    consistent with those established for other benefits under the plan
    or coverage. Written notice of the availability of such coverage
    shall be delivered to the participant upon enrollment and annually
    thereafter.
    (b) Notice
      A group health plan, and a health insurance issuer providing
    health insurance coverage in connection with a group health plan
    shall provide notice to each participant and beneficiary under such
    plan regarding the coverage required by this section in accordance
    with regulations promulgated by the Secretary. Such notice shall be
    in writing and prominently positioned in any literature or
    correspondence made available or distributed by the plan or issuer
    and shall be transmitted - 
        (1) in the next mailing made by the plan or issuer to the
      participant or beneficiary;
        (2) as part of any yearly informational packet sent to the
      participant or beneficiary; or
        (3) not later than January 1, 1999;

    whichever is earlier.
    (c) Prohibitions
      A group health plan, and a health insurance issuer offering group
    health insurance coverage in connection with a group health plan,
    may not - 
        (1) deny to a patient eligibility, or continued eligibility, to
      enroll or to renew coverage under the terms of the plan, solely
      for the purpose of avoiding the requirements of this section; and
        (2) penalize or otherwise reduce or limit the reimbursement of
      an attending provider, or provide incentives (monetary or
      otherwise) to an attending provider, to induce such provider to
      provide care to an individual participant or beneficiary in a
      manner inconsistent with this section.
    (d) Rule of construction
      Nothing in this section shall be construed to prevent a group
    health plan or a health insurance issuer offering group health
    insurance coverage from negotiating the level and type of
    reimbursement with a provider for care provided in accordance with
    this section.
    (e) Preemption, relation to State laws
      (1) In general
        Nothing in this section shall be construed to preempt any State
      law in effect on October 21, 1998, with respect to health
      insurance coverage that requires coverage of at least the
      coverage of reconstructive breast surgery otherwise required
      under this section.
      (2) ERISA
        Nothing in this section shall be construed to affect or modify
      the provisions of section 1144 of this title with respect to
      group health plans.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 713, as added Pub. L. 105-277, div.
    A, Sec. 101(f) [title IX, Sec. 902(a)], Oct. 21, 1998, 112 Stat.
    2681-337, 2681-436.)


-MISC1-
                              EFFECTIVE DATE                          
      Pub. L. 105-277, div. A, Sec. 101(f) [title IX, Sec. 902(c)],
    Oct. 21, 1998, 112 Stat. 2681-337, 2681-438, provided that:
      "(1) In general. - The amendments made by this section [enacting
    this section] shall apply with respect to plan years beginning on
    or after the date of enactment of this Act [Oct. 21, 1998].
      "(2) Special rule for collective bargaining agreements. - In the
    case of a group health plan maintained pursuant to 1 or more
    collective bargaining agreements between employee representatives
    and 1 or more employers, any plan amendment made pursuant to a
    collective bargaining agreement relating to the plan which amends
    the plan solely to conform to any requirement added by this section
    shall not be treated as a termination of such collective bargaining
    agreement."

-End-


-CITE-
    29 USC Subpart C - General Provisions                       01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 7 - group health plan requirements
    Subpart C - General Provisions

-HEAD-
                      SUBPART C - GENERAL PROVISIONS                  

-End-



-CITE-
    29 USC Sec. 1191                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 7 - group health plan requirements
    Subpart C - General Provisions

-HEAD-
    Sec. 1191. Preemption; State flexibility; construction

-STATUTE-
    (a) Continued applicability of State law with respect to health
      insurance issuers
      (1) In general
        Subject to paragraph (2) and except as provided in subsection
      (b) of this section, this part shall not be construed to
      supersede any provision of State law which establishes,
      implements, or continues in effect any standard or requirement
      solely relating to health insurance issuers in connection with
      group health insurance coverage except to the extent that such
      standard or requirement prevents the application of a requirement
      of this part.
      (2) Continued preemption with respect to group health plans
        Nothing in this part shall be construed to affect or modify the
      provisions of section 1144 of this title with respect to group
      health plans.
    (b) Special rules in case of portability requirements
      (1) In general
        Subject to paragraph (2), the provisions of this part relating
      to health insurance coverage offered by a health insurance issuer
      supersede any provision of State law which establishes,
      implements, or continues in effect a standard or requirement
      applicable to imposition of a preexisting condition exclusion
      specifically governed by section 1181 of this title which differs
      from the standards or requirements specified in such section.
      (2) Exceptions
        Only in relation to health insurance coverage offered by a
      health insurance issuer, the provisions of this part do not
      supersede any provision of State law to the extent that such
      provision - 
          (A) substitutes for the reference to "6-month period" in
        section 1181(a)(1) of this title a reference to any shorter
        period of time;
          (B) substitutes for the reference to "12 months" and "18
        months" in section 1181(a)(2) of this title a reference to any
        shorter period of time;
          (C) substitutes for the references to "63 days" in sections
        1181(c)(2)(A) and (d)(4)(A) of this title a reference to any
        greater number of days;
          (D) substitutes for the reference to "30-day period" in
        sections 1181(b)(2) and (d)(1) of this title a reference to any
        greater period;
          (E) prohibits the imposition of any preexisting condition
        exclusion in cases not described in section 1181(d) of this
        title or expands the exceptions described in such section;
          (F) requires special enrollment periods in addition to those
        required under section 1181(f) of this title; or
          (G) reduces the maximum period permitted in an affiliation
        period under section 1181(g)(1)(B) of this title.
    (c) Rules of construction
      Except as provided in section 1185 of this title, nothing in this
    part shall be construed as requiring a group health plan or health
    insurance coverage to provide specific benefits under the terms of
    such plan or coverage.
    (d) Definitions
      For purposes of this section - 
      (1) State law
        The term "State law" includes all laws, decisions, rules,
      regulations, or other State action having the effect of law, of
      any State. A law of the United States applicable only to the
      District of Columbia shall be treated as a State law rather than
      a law of the United States.
      (2) State
        The term "State" includes a State, the Northern Mariana
      Islands, any political subdivisions of a State or such Islands,
      or any agency or instrumentality of either.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 731, formerly Sec. 704, as added
    Pub. L. 104-191, title I, Sec. 101(a), Aug. 21, 1996, 110 Stat.
    1946; renumbered Sec. 731 and amended Pub. L. 104-204, title VI,
    Sec. 603(a)(3), (b)(1), Sept. 26, 1996, 110 Stat. 2935, 2937.)


-MISC1-
                                AMENDMENTS                            
      1996 - Subsec. (c). Pub. L. 104-204, Sec. 603(b)(1), substituted
    "Except as provided in section 1185 of this title, nothing" for
    "Nothing".

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Amendment by Pub. L. 104-204 applicable with respect to group
    health plans for plan years beginning on and after Jan. 1, 1998,
    see section 603(c) of Pub. L. 104-204, set out as a note under
    section 1003 of this title.

                              EFFECTIVE DATE                          
      Section applicable with respect to group health plans for plan
    years beginning after June 30, 1997, except as otherwise provided,
    see section 101(g) of Pub. L. 104-191, set out as a note under
    section 1181 of this title.

-End-



-CITE-
    29 USC Sec. 1191a                                           01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 7 - group health plan requirements
    Subpart C - General Provisions

-HEAD-
    Sec. 1191a. Special rules relating to group health plans

-STATUTE-
    (a) General exception for certain small group health plans
      The requirements of this part (other than section 1185 of this
    title) shall not apply to any group health plan (and group health
    insurance coverage offered in connection with a group health plan)
    for any plan year if, on the first day of such plan year, such plan
    has less than 2 participants who are current employees.
    (b) Exception for certain benefits
      The requirements of this part shall not apply to any group health
    plan (and group health insurance coverage) in relation to its
    provision of excepted benefits described in section 1191b(c)(1) of
    this title.
    (c) Exception for certain benefits if certain conditions met
      (1) Limited, excepted benefits
        The requirements of this part shall not apply to any group
      health plan (and group health insurance coverage offered in
      connection with a group health plan) in relation to its provision
      of excepted benefits described in section 1191b(c)(2) of this
      title if the benefits - 
          (A) are provided under a separate policy, certificate, or
        contract of insurance; or
          (B) are otherwise not an integral part of the plan.
      (2) Noncoordinated, excepted benefits
        The requirements of this part shall not apply to any group
      health plan (and group health insurance coverage offered in
      connection with a group health plan) in relation to its provision
      of excepted benefits described in section 1191b(c)(3) of this
      title if all of the following conditions are met:
          (A) The benefits are provided under a separate policy,
        certificate, or contract of insurance.
          (B) There is no coordination between the provision of such
        benefits and any exclusion of benefits under any group health
        plan maintained by the same plan sponsor.
          (C) Such benefits are paid with respect to an event without
        regard to whether benefits are provided with respect to such an
        event under any group health plan maintained by the same plan
        sponsor.
      (3) Supplemental excepted benefits
        The requirements of this part shall not apply to any group
      health plan (and group health insurance coverage) in relation to
      its provision of excepted benefits described in section
      1191b(c)(4) of this title if the benefits are provided under a
      separate policy, certificate, or contract of insurance.
    (d) Treatment of partnerships
      For purposes of this part - 
      (1) Treatment as a group health plan
        Any plan, fund, or program which would not be (but for this
      subsection) an employee welfare benefit plan and which is
      established or maintained by a partnership, to the extent that
      such plan, fund, or program provides medical care (including
      items and services paid for as medical care) to present or former
      partners in the partnership or to their dependents (as defined
      under the terms of the plan, fund, or program), directly or
      through insurance, reimbursement, or otherwise, shall be treated
      (subject to paragraph (2)) as an employee welfare benefit plan
      which is a group health plan.
      (2) Employer
        In the case of a group health plan, the term "employer" also
      includes the partnership in relation to any partner.
      (3) Participants of group health plans
        In the case of a group health plan, the term "participant" also
      includes - 
          (A) in connection with a group health plan maintained by a
        partnership, an individual who is a partner in relation to the
        partnership, or
          (B) in connection with a group health plan maintained by a
        self-employed individual (under which one or more employees are
        participants), the self-employed individual,

      if such individual is, or may become, eligible to receive a
      benefit under the plan or such individual's beneficiaries may be
      eligible to receive any such benefit.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 732, formerly Sec. 705, as added
    Pub. L. 104-191, title I, Sec. 101(a), Aug. 21, 1996, 110 Stat.
    1948; renumbered Sec. 732 and amended Pub. L. 104-204, title VI,
    Sec. 603(a)(3), (b)(2), (3)(I)-(L), Sept. 26, 1996, 110 Stat. 2935,
    2937, 2938.)


-MISC1-
                                AMENDMENTS                            
      1996 - Subsec. (a). Pub. L. 104-204, Sec. 603(b)(2), inserted
    "(other than section 1185 of this title)" after "part".
      Subsecs. (b), (c)(1) to (3). Pub. L. 104-204, Sec. 603(b)(3)(I)-
    (L), made technical amendment to references in original act which
    appear in text as references to section 1191b of this title.

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Amendment by Pub. L. 104-204 applicable with respect to group
    health plans for plan years beginning on and after Jan. 1, 1998,
    see section 603(c) of Pub. L. 104-204, set out as a note under
    section 1003 of this title.

                              EFFECTIVE DATE                          
      Section applicable with respect to group health plans for plan
    years beginning after June 30, 1997, except as otherwise provided,
    see section 101(g) of Pub. L. 104-191, set out as a note under
    section 1181 of this title.

-End-



-CITE-
    29 USC Sec. 1191b                                           01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 7 - group health plan requirements
    Subpart C - General Provisions

-HEAD-
    Sec. 1191b. Definitions

-STATUTE-
    (a) Group health plan
      For purposes of this part - 
      (1) In general
        The term "group health plan" means an employee welfare benefit
      plan to the extent that the plan provides medical care (as
      defined in paragraph (2) and including items and services paid
      for as medical care) to employees or their dependents (as defined
      under the terms of the plan) directly or through insurance,
      reimbursement, or otherwise.
      (2) Medical care
        The term "medical care" means amounts paid for - 
          (A) the diagnosis, cure, mitigation, treatment, or prevention
        of disease, or amounts paid for the purpose of affecting any
        structure or function of the body,
          (B) amounts paid for transportation primarily for and
        essential to medical care referred to in subparagraph (A), and
          (C) amounts paid for insurance covering medical care referred
        to in subparagraphs (A) and (B).
    (b) Definitions relating to health insurance
      For purposes of this part - 
      (1) Health insurance coverage
        The term "health insurance coverage" means benefits consisting
      of medical care (provided directly, through insurance or
      reimbursement, or otherwise and including items and services paid
      for as medical care) under any hospital or medical service policy
      or certificate, hospital or medical service plan contract, or
      health maintenance organization contract offered by a health
      insurance issuer.
      (2) Health insurance issuer
        The term "health insurance issuer" means an insurance company,
      insurance service, or insurance organization (including a health
      maintenance organization, as defined in paragraph (3)) which is
      licensed to engage in the business of insurance in a State and
      which is subject to State law which regulates insurance (within
      the meaning of section 1144(b)(2) of this title). Such term does
      not include a group health plan.
      (3) Health maintenance organization
        The term "health maintenance organization" means - 
          (A) a federally qualified health maintenance organization (as
        defined in section 1301(a) of the Public Health Service Act (42
        U.S.C. 300e(a))),
          (B) an organization recognized under State law as a health
        maintenance organization, or
          (C) a similar organization regulated under State law for
        solvency in the same manner and to the same extent as such a
        health maintenance organization.
      (4) Group health insurance coverage
        The term "group health insurance coverage" means, in connection
      with a group health plan, health insurance coverage offered in
      connection with such plan.
    (c) Excepted benefits
      For purposes of this part, the term "excepted benefits" means
    benefits under one or more (or any combination thereof) of the
    following:
      (1) Benefits not subject to requirements
        (A) Coverage only for accident, or disability income insurance,
      or any combination thereof.
        (B) Coverage issued as a supplement to liability insurance.
        (C) Liability insurance, including general liability insurance
      and automobile liability insurance.
        (D) Workers' compensation or similar insurance.
        (E) Automobile medical payment insurance.
        (F) Credit-only insurance.
        (G) Coverage for on-site medical clinics.
        (H) Other similar insurance coverage, specified in regulations,
      under which benefits for medical care are secondary or incidental
      to other insurance benefits.
      (2) Benefits not subject to requirements if offered separately
        (A) Limited scope dental or vision benefits.
        (B) Benefits for long-term care, nursing home care, home health
      care, community-based care, or any combination thereof.
        (C) Such other similar, limited benefits as are specified in
      regulations.
      (3) Benefits not subject to requirements if offered as
        independent, noncoordinated benefits
        (A) Coverage only for a specified disease or illness.
        (B) Hospital indemnity or other fixed indemnity insurance.
      (4) Benefits not subject to requirements if offered as separate
        insurance policy
        Medicare supplemental health insurance (as defined under
      section 1395ss(g)(1) of title 42), coverage supplemental to the
      coverage provided under chapter 55 of title 10, and similar
      supplemental coverage provided to coverage under a group health
      plan.
    (d) Other definitions
      For purposes of this part - 
      (1) COBRA continuation provision
        The term "COBRA continuation provision" means any of the
      following:
          (A) Part 6 of this subtitle.
          (B) Section 4980B of title 26, other than subsection (f)(1)
        of such section insofar as it relates to pediatric vaccines.
          (C) Title XXII of the Public Health Service Act [42 U.S.C.
        300bb-1 et seq.].
      (2) Health status-related factor
        The term "health status-related factor" means any of the
      factors described in section 1182(a)(1) of this title.
      (3) Network plan
        The term "network plan" means health insurance coverage offered
      by a health insurance issuer under which the financing and
      delivery of medical care (including items and services paid for
      as medical care) are provided, in whole or in part, through a
      defined set of providers under contract with the issuer.
      (4) Placed for adoption
        The term "placement", or being "placed", for adoption, has the
      meaning given such term in section 1169(c)(3)(B) of this title.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 733, formerly Sec. 706, as added
    Pub. L. 104-191, title I, Sec. 101(a), Aug. 21, 1996, 110 Stat.
    1949; renumbered Sec. 733, Pub. L. 104-204, title VI, Sec.
    603(a)(3), Sept. 26, 1996, 110 Stat. 2935.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Public Health Service Act, referred to in subsec. (d)(1)(C),
    is act July 1, 1944, ch. 373, 58 Stat. 682, as amended. Title XXII
    of the Act is classified generally to subchapter XX (Sec. 300bb-1
    et seq.) of chapter 6A of Title 42, The Public Health and Welfare.
    For complete classification of this Act to the Code, see Short
    Title note set out under section 201 of Title 42 and Tables.


-MISC1-
                              EFFECTIVE DATE                          
      Section applicable with respect to group health plans for plan
    years beginning after June 30, 1997, except as otherwise provided,
    see section 101(g) of Pub. L. 104-191, set out as a note under
    section 1181 of this title.

-End-



-CITE-
    29 USC Sec. 1191c                                           01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS
    Subtitle B - Regulatory Provisions
    part 7 - group health plan requirements
    Subpart C - General Provisions

-HEAD-
    Sec. 1191c. Regulations

-STATUTE-
      The Secretary, consistent with section 104 of the Health Care
    Portability and Accountability Act of 1996, may promulgate such
    regulations as may be necessary or appropriate to carry out the
    provisions of this part. The Secretary may promulgate any interim
    final rules as the Secretary determines are appropriate to carry
    out this part.

-SOURCE-
    (Pub. L. 93-406, title I, Sec. 734, formerly Sec. 707, as added
    Pub. L. 104-191, title I, Sec. 101(a), Aug. 21, 1996, 110 Stat.
    1951; renumbered Sec. 734, Pub. L. 104-204, title VI, Sec.
    603(a)(3), Sept. 26, 1996, 110 Stat. 2935.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 104 of the Health Care Portability and Accountability Act
    of 1996, referred to in text, probably means section 104 of the
    Health Insurance Portability and Accountability Act of 1996, Pub.
    L. 104-191, which is set out as a note under section 300gg-92 of
    Title 42, The Public Health and Welfare.


-MISC1-
                              EFFECTIVE DATE                          
      Section applicable with respect to group health plans for plan
    years beginning after June 30, 1997, except as otherwise provided,
    see section 101(g) of Pub. L. 104-191, set out as a note under
    section 1181 of this title.

-End-


-CITE-
    29 USC SUBCHAPTER II - JURISDICTION, ADMINISTRATION,
           ENFORCEMENT; JOINT PENSION TASK FORCE, ETC.     01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER II - JURISDICTION, ADMINISTRATION, ENFORCEMENT; JOINT
                     PENSION TASK FORCE, ETC.  

-HEAD-
     SUBCHAPTER II - JURISDICTION, ADMINISTRATION, ENFORCEMENT; JOINT
                         PENSION TASK FORCE, ETC.

-End-


-CITE-
    29 USC Subtitle A - Jurisdiction, Administration, and
           Enforcement                                     01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER II - JURISDICTION, ADMINISTRATION, ENFORCEMENT; JOINT
                     PENSION TASK FORCE, ETC.  
    Subtitle A - Jurisdiction, Administration, and Enforcement

-HEAD-
        SUBTITLE A - JURISDICTION, ADMINISTRATION, AND ENFORCEMENT    

-End-



-CITE-
    29 USC Sec. 1201                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER II - JURISDICTION, ADMINISTRATION, ENFORCEMENT; JOINT
                     PENSION TASK FORCE, ETC.  
    Subtitle A - Jurisdiction, Administration, and Enforcement

-HEAD-
    Sec. 1201. Procedures in connection with the issuance of certain
      determination letters by the Secretary of the Treasury covering
      qualifications under Internal Revenue Code

-STATUTE-
    (a) Additional material required of applicants
      Before issuing an advance determination of whether a pension,
    profit-sharing, or stock bonus plan, a trust which is a part of
    such a plan, or an annuity or bond purchase plan meets the
    requirements of part I of subchapter D of chapter 1 of title 26,
    the Secretary of the Treasury shall require the person applying for
    the determination to provide, in addition to any material and
    information necessary for such determination, such other material
    and information as may reasonably be made available at the time
    such application is made as the Secretary of Labor may require
    under subchapter I of this chapter for the administration of that
    subchapter. The Secretary of the Treasury shall also require that
    the applicant provide evidence satisfactory to the Secretary that
    the applicant has notified each employee who qualifies as an
    interested party (within the meaning of regulations prescribed
    under section 7476(b)(1) of title 26 (relating to declaratory
    judgments in connection with the qualification of certain
    retirement plans)) of the application for a determination.
    (b) Opportunity to comment on application
      (1) Whenever an application is made to the Secretary of the
    Treasury for a determination of whether a pension, profit-sharing,
    or stock bonus plan, a trust which is a part of such a plan, or an
    annuity or bond purchase plan meets the requirements of part I of
    subchapter D of chapter 1 of title 26, the Secretary shall upon
    request afford an opportunity to comment on the application at any
    time within 45 days after receipt thereof to - 
        (A) any employee or class of employee qualifying as an
      interested party within the meaning of the regulations referred
      to in subsection (a) of this section.(!1)

        (B) the Secretary of Labor, and
        (C) the Pension Benefit Guaranty Corporation.

      (2) The Secretary of Labor may not request an opportunity to
    comment upon such an application unless he has been requested in
    writing to do so by the Pension Benefit Guaranty Corporation or by
    the lesser of - 
        (A) 10 employees, or
        (B) 10 percent of the employees

    who qualify as interested parties within the meaning of the
    regulations referred to in subsection (a) of this section. Upon
    receiving such a request, the Secretary of Labor shall furnish a
    copy of the request to the Secretary of the Treasury within 5 days
    (excluding Saturdays, Sundays, and legal public holidays (as set
    forth in section 6103 of title 5)).
      (3) Upon receiving such a request from the Secretary of Labor,
    the Secretary of the Treasury shall furnish to the Secretary of
    Labor such information held by the Secretary of the Treasury
    relating to the application as the Secretary of Labor may request.
      (4) The Secretary of Labor shall, within 30 days after receiving
    a request from the Pension Benefit Guaranty Corporation or from the
    necessary number of employees who qualify as interested parties,
    notify the Secretary of the Treasury, the Pension Benefit Guaranty
    Corporation, and such employees with respect to whether he is going
    to comment on the application to which the request relates and with
    respect to any matters raised in such request on which he is not
    going to comment. If the Secretary of Labor indicates in the notice
    required under the preceding sentence that he is not going to
    comment on all or part of the matters raised in such request, the
    Secretary of the Treasury shall afford the corporation, and such
    employees, an opportunity to comment on the application with
    respect to any matter on which the Secretary of Labor has declined
    to comment.
    (c) Intervention by Pension Benefit Guaranty Corporation or
      Secretary of Labor into declaratory judgment action under section
      7476 of title 26, action by Corporation authorized
      The Pension Benefit Guaranty Corporation and, upon petition of a
    group of employees referred to in subsection (b)(2) of this
    section, the Secretary of Labor, may intervene in any action
    brought for declaratory judgment under section 7476 of title 26 in
    accordance with the provisions of such section. The Pension Benefit
    Guaranty Corporation is permitted to bring an action under such
    section 7476 under such rules as may be prescribed by the United
    States Tax Court.
    (d) Notification and information by Secretary of the Treasury to
      Secretary of Labor upon issuance by Secretary of the Treasury of
      a determination letter to applicant
      If the Secretary of the Treasury determines that a plan or trust
    to which this section applies meets the applicable requirements of
    part I of subchapter D of chapter 1 of title 26 and issues a
    determination letter to the applicant, the Secretary shall notify
    the Secretary of Labor of his determination and furnish such
    information and material relating to the application and
    determination held by the Secretary of the Treasury as the
    Secretary of Labor may request for the proper administration of
    subchapter I of this chapter. The Secretary of Labor shall accept
    the determination of the Secretary of the Treasury as prima facie
    evidence of initial compliance by the plan with the standards of
    parts 2, 3, and 4 of subtitle B of subchapter I of this chapter.
    The determination of the Secretary of the Treasury shall not be
    prima facie evidence on issues relating solely to part 4 of
    subtitle B of subchapter I of this chapter. If an application for
    such a determination is withdrawn, or if the Secretary of the
    Treasury issues a determination that the plan or trust does not
    meet the requirements of such part I, the Secretary shall notify
    the Secretary of Labor of the withdrawal or determination.
    (e) Effective date
      This section does not apply with respect to an application for
    any plan received by the Secretary of the Treasury before the date
    on which section 410 of title 26 applies to the plan, or on which
    such section will apply if the plan is determined by the Secretary
    to be a qualified plan.

-SOURCE-
    (Pub. L. 93-406, title III, Sec. 3001, Sept. 2, 1974, 88 Stat. 995;
    Pub. L. 100-203, title IX, Sec. 9343(b), Dec. 22, 1987, 101 Stat.
    1330-372; Pub. L. 101-239, title VII, Sec. 7891(a)(1), Dec. 19,
    1989, 103 Stat. 2445.)


-MISC1-
                                AMENDMENTS                            
      1989 - Subsecs. (a), (b)(1), (c) to (e). Pub. L. 101-239
    substituted "Internal Revenue Code of 1986" for "Internal Revenue
    Code of 1954", which for purposes of codification was translated as
    "title 26" thus requiring no change in text.
      1987 - Subsec. (d). Pub. L. 100-203 inserted after second
    sentence "The determination of the Secretary of the Treasury shall
    not be prima facie evidence on issues relating solely to part 4 of
    subtitle B of subchapter I of this chapter."

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by Pub. L. 101-239 effective, except as otherwise
    provided, as if included in the provision of the Tax Reform Act of
    1986, Pub. L. 99-514, to which such amendment relates, see section
    7891(f) of Pub. L. 101-239, set out as a note under section 1002 of
    this title.

-FOOTNOTE-               

    (!1) So in original. The period probably should be a comma.


-End-



-CITE-
    29 USC Sec. 1202                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER II - JURISDICTION, ADMINISTRATION, ENFORCEMENT; JOINT
                     PENSION TASK FORCE, ETC.  
    Subtitle A - Jurisdiction, Administration, and Enforcement

-HEAD-
    Sec. 1202. Procedures with respect to continued compliance with
      Internal Revenue requirements relating to participation, vesting,
      and funding standards

-STATUTE-
    (a) Notification by Secretary of the Treasury to Secretary of Labor
      of issuance of a preliminary notice of intent to disqualify or of
      commencement of proceedings to determine satisfaction of
      requirements
      In carrying out the provisions of part I of subchapter D of
    chapter 1 of title 26 with respect to whether a plan or a trust
    meets the requirements of section 410(a) or 411 of title 26
    (relating to minimum participation standards and minimum vesting
    standards, respectively), the Secretary of the Treasury shall
    notify the Secretary of Labor when the Secretary of the Treasury
    issues a preliminary notice of intent to disqualify related to the
    plan or trust or, if earlier, at the time of commencing any
    proceeding to determine whether the plan or trust satisfies such
    requirements. Unless the Secretary of the Treasury finds that the
    collection of a tax imposed under the Internal Revenue Code of 1986
    is in jeopardy, the Secretary of the Treasury shall not issue a
    determination that the plan or trust does not satisfy the
    requirements of such section until the expiration of a period of 60
    days after the date on which he notifies the Secretary of Labor of
    such review. The Secretary of the Treasury, in his discretion, may
    extend the 60-day period referred to in the preceding sentence if
    he determines that such an extension would enable the Secretary of
    Labor to obtain compliance with such requirements by the plan
    within the extension period. Except as otherwise provided in this
    chapter, the Secretary of Labor shall not generally apply part 2 of
    subtitle B of subchapter I of this chapter to any plan or trust
    subject to sections 410(a) and 411 of title 26, but shall refer
    alleged general violations of the vesting or participation
    standards to the Secretary of the Treasury. (The preceding sentence
    shall not apply to matters relating to individuals benefits.)
    (b) Notification to Secretary of Labor before Secretary of the
      Treasury sends notice of deficiency under section 4971 of title
      26; waiver of imposition of tax; requests for investigation;
      consultation
      Unless the Secretary of the Treasury finds that the collection of
    a tax is in jeopardy, in carrying out the provisions of section
    4971 of title 26 (relating to taxes on the failure to meet minimum
    funding standards), the Secretary of the Treasury shall notify the
    Secretary of Labor before sending a notice of deficiency with
    respect to any tax imposed under that section on an employer, and,
    in accordance with the provisions of subsection (d) of that
    section, afford the Secretary of Labor an opportunity to comment on
    the imposition of the tax in the case. The Secretary of the
    Treasury may waive the imposition of the tax imposed under section
    4971(b) of title 26 in appropriate cases. Upon receiving a written
    request from the Secretary of Labor or from the Pension Benefit
    Guaranty Corporation, the Secretary of the Treasury shall cause an
    investigation to be commenced expeditiously with respect to whether
    the tax imposed under section 4971 of title 26 should be applied
    with respect to any employer to which the request relates. The
    Secretary of the Treasury and the Secretary of Labor shall consult
    with each other from time to time with respect to the provisions of
    section 412 of title 26 (relating to minimum funding standards) and
    with respect to the funding standards applicable under subchapter I
    of this chapter in order to coordinate the rules applicable under
    such standards.
    (c) Extended application of regulations prescribed by Secretary of
      the Treasury relating to minimum participation standards, minimum
      vesting standards, and minimum funding standards
      Regulations prescribed by the Secretary of the Treasury under
    sections 410(a), 411, and 412 of title 26 (relating to minimum
    participation standards, minimum vesting standards, and minimum
    funding standards, respectively) shall also apply to the minimum
    participation, vesting, and funding standards set forth in parts 2
    and 3 of subtitle B of subchapter I of this chapter. Except as
    otherwise expressly provided in this chapter, the Secretary of
    Labor shall not prescribe other regulations under such parts, or
    apply the regulations prescribed by the Secretary of the Treasury
    under sections 410(a), 411, 412 of title 26 and applicable to the
    minimum participation, vesting, and funding standards under such
    parts in a manner inconsistent with the way such regulations apply
    under sections 410(a), 411, and 412 of title 26.
    (d) Opportunity afforded Secretary of the Treasury to intervene in
      cases involving construction or application of minimum standards;
      review of briefs filed by Pension Benefit Guaranty Corporation or
      Secretary of Labor
      The Secretary of Labor and the Pension Benefit Guaranty
    Corporation, before filing briefs in any case involving the
    construction or application of minimum participation standards,
    minimum vesting standards, or minimum funding standards under
    subchapter I of this chapter shall afford the Secretary of the
    Treasury a reasonable opportunity to review any such brief. The
    Secretary of the Treasury shall have the right to intervene in any
    such case.
    (e) Consultative requirements respecting promulgation of proposed
      or final regulations
      The Secretary of the Treasury shall consult with the Pension
    Benefit Guaranty Corporation with respect to any proposed or final
    regulation authorized by subpart C of part I of subchapter D of
    chapter 1 of title 26, or by sections 1421 through 1426 of this
    title, before publishing any such proposed or final regulation.

-SOURCE-
    (Pub. L. 93-406, title III, Sec. 3002, Sept. 2, 1974, 88 Stat. 996;
    Pub. L. 96-364, title IV, Sec. 402(b)(3), Sept. 26, 1980, 94 Stat.
    1299; Pub. L. 101-239, title VII, Sec. 7891(a)(1), Dec. 19, 1989,
    103 Stat. 2445.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Internal Revenue Code of 1986, referred to in subsec. (a), is
    classified generally to Title 26, Internal Revenue Code.
      This chapter, referred to in subsecs. (a), (c), was in the
    original "this Act", meaning Pub. L. 93-406, known as the Employee
    Retirement Income Security Act of 1974. Titles I, III, and IV of
    such Act are classified principally to this chapter. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 1001 of this title and Tables.
      Subpart C of part I of subchapter D of chapter 1 of title 26,
    referred to in subsec. (e), commences with section 418 of Title 26,
    Internal Revenue Code.


-MISC1-
                                AMENDMENTS                            
      1989 - Subsec. (a). Pub. L. 101-239 substituted "tax imposed
    under the Internal Revenue Code of 1986" for "tax imposed under the
    Internal Revenue Code of 1954" and "Internal Revenue Code of 1986"
    for "Internal Revenue Code of 1954", which for purposes of
    codification was translated as "title 26" thus requiring no change
    in text.
      Subsecs. (b), (c), (e). Pub. L. 101-239 substituted "Internal
    Revenue Code of 1986" for "Internal Revenue Code of 1954", which
    for purposes of codification was translated as "title 26" thus
    requiring no change in text.
      1980 - Subsec. (e). Pub. L. 96-364 added subsec. (e).

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by Pub. L. 101-239 effective, except as otherwise
    provided, as if included in the provision of the Tax Reform Act of
    1986, Pub. L. 99-514, to which such amendment relates, see section
    7891(f) of Pub. L. 101-239, set out as a note under section 1002 of
    this title.

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-364 effective Sept. 26, 1980, except as
    specifically provided, see section 1461(e) of this title.

-End-



-CITE-
    29 USC Sec. 1202a                                           01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER II - JURISDICTION, ADMINISTRATION, ENFORCEMENT; JOINT
                     PENSION TASK FORCE, ETC.  
    Subtitle A - Jurisdiction, Administration, and Enforcement

-HEAD-
    Sec. 1202a. Employee plans compliance resolution system

-STATUTE-
    (a) In general
      The Secretary of the Treasury shall have full authority to
    establish and implement the Employee Plans Compliance Resolution
    System (or any successor program) and any other employee plans
    correction policies, including the authority to waive income,
    excise, or other taxes to ensure that any tax, penalty, or sanction
    is not excessive and bears a reasonable relationship to the nature,
    extent, and severity of the failure.
    (b) Improvements
      The Secretary of the Treasury shall continue to update and
    improve the Employee Plans Compliance Resolution System (or any
    successor program), giving special attention to - 
        (1) increasing the awareness and knowledge of small employers
      concerning the availability and use of the program;
        (2) taking into account special concerns and circumstances that
      small employers face with respect to compliance and correction of
      compliance failures;
        (3) extending the duration of the self-correction period under
      the Self-Correction Program for significant compliance failures;
        (4) expanding the availability to correct insignificant
      compliance failures under the Self-Correction Program during
      audit; and
        (5) assuring that any tax, penalty, or sanction that is imposed
      by reason of a compliance failure is not excessive and bears a
      reasonable relationship to the nature, extent, and severity of
      the failure.

-SOURCE-
    (Pub. L. 109-280, title XI, Sec. 1101, Aug. 17, 2006, 120 Stat.
    1055.)

-COD-
                               CODIFICATION                           
      Section was enacted as part of the Pension Protection Act of
    2006, and not as part of the Employee Retirement Income Security
    Act of 1974 which comprises this chapter.

-End-



-CITE-
    29 USC Sec. 1203                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER II - JURISDICTION, ADMINISTRATION, ENFORCEMENT; JOINT
                     PENSION TASK FORCE, ETC.  
    Subtitle A - Jurisdiction, Administration, and Enforcement

-HEAD-
    Sec. 1203. Procedures in connection with prohibited transactions

-STATUTE-
    (a) Notification to Secretary of Labor; opportunity to comment on
      imposition of tax under section 4975 of title 26; waiver;
      requests for investigations
      Unless the Secretary of the Treasury finds that the collection of
    a tax is in jeopardy, in carrying out the provisions of section
    4975 of title 26 (relating to tax on prohibited transactions) the
    Secretary of the Treasury shall, in accordance with the provisions
    of subsection (h) of such section, notify the Secretary of Labor
    before sending a notice of deficiency with respect to the tax
    imposed by subsection (a) or (b) of such section, and, in
    accordance with the provisions of subsection (h) of such section,
    afford the Secretary an opportunity to comment on the imposition of
    the tax in any case. The Secretary of the Treasury shall have
    authority to waive the imposition of the tax imposed under section
    4975(b) in appropriate cases. Upon receiving a written request from
    the Secretary of Labor or from the Pension Benefit Guaranty
    Corporation, the Secretary of the Treasury shall cause an
    investigation to be carried out with respect to whether the tax
    imposed by section 4975 of title 26 should be applied to any person
    referred to in the request.
    (b) Consultation
      The Secretary of the Treasury and the Secretary of Labor shall
    consult with each other from time to time with respect to the
    provisions of section 4975 of title 26 (relating to tax on
    prohibited transactions) and with respect to the provisions of
    subchapter I of this chapter relating to prohibited transactions
    and exemptions therefrom in order to coordinate the rules
    applicable under such standards.
    (c) Transmission of information to Secretary of the Treasury
      Whenever the Secretary of Labor obtains information indicating
    that a party-in-interest or disqualified person is violating
    section 1106 of this title, he shall transmit such information to
    the Secretary of the Treasury.

-SOURCE-
    (Pub. L. 93-406, title III, Sec. 3003, Sept. 2, 1974, 88 Stat. 998;
    Pub. L. 101-239, title VII, Sec. 7891(a)(1), Dec. 19, 1989, 103
    Stat. 2445.)


-MISC1-
                                AMENDMENTS                            
      1989 - Subsecs. (a), (b). Pub. L. 101-239 substituted "Internal
    Revenue Code of 1986" for "Internal Revenue Code of 1954", which
    for purposes of codification was translated as "title 26" thus
    requiring no change in text.

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by Pub. L. 101-239 effective, except as otherwise
    provided, as if included in the provision of the Tax Reform Act of
    1986, Pub. L. 99-514, to which such amendment relates, see section
    7891(f) of Pub. L. 101-239, set out as a note under section 1002 of
    this title.

-End-



-CITE-
    29 USC Sec. 1204                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER II - JURISDICTION, ADMINISTRATION, ENFORCEMENT; JOINT
                     PENSION TASK FORCE, ETC.  
    Subtitle A - Jurisdiction, Administration, and Enforcement

-HEAD-
    Sec. 1204. Coordination between the Department of the Treasury and
      the Department of Labor

-STATUTE-
      (a) Whenever in this chapter or in any provision of law amended
    by this chapter the Secretary of the Treasury and the Secretary of
    Labor are required to carry out provisions relating to the same
    subject matter (as determined by them) they shall consult with each
    other and shall develop rules, regulations, practices, and forms
    which, to the extent appropriate for the efficient administration
    of such provisions, are designed to reduce duplication of effort,
    duplication of reporting, conflicting or overlapping requirements,
    and the burden of compliance with such provisions by plan
    administrators, employers, and participants and beneficiaries.
      (b) In order to avoid unnecessary expense and duplication of
    functions among Government agencies, the Secretary of the Treasury
    and the Secretary of Labor may make such arrangements or agreements
    for cooperation or mutual assistance in the performance of their
    functions under this chapter, and the functions of any such
    agencies as they find to be practicable and consistent with law.
    The Secretary of the Treasury and the Secretary of Labor may
    utilize, on a reimbursable or other basis, the facilities or
    services, of any department, agency, or establishment of the United
    States or of any State or political subdivision of a State,
    including the services, of any of its employees, with the lawful
    consent of such department, agency, or establishment; and each
    department, agency, or establishment of the United States is
    authorized and directed to cooperate with the Secretary of the
    Treasury and the Secretary of Labor and, to the extent permitted by
    law, to provide such information and facilities as they may request
    for their assistance in the performance of their functions under
    this chapter. The Attorney General or his representative shall
    receive from the Secretary of the Treasury and the Secretary of
    Labor for appropriate action such evidence developed in the
    performance of their functions under this chapter as may be found
    to warrant consideration for criminal prosecution under the
    provisions of this subchapter or other Federal law.

-SOURCE-
    (Pub. L. 93-406, title III, Sec. 3004, Sept. 2, 1974, 88 Stat.
    998.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This chapter, referred to in text, was in the original "this
    Act", meaning Pub. L. 93-406, known as the Employee Retirement
    Income Security Act of 1974. Titles I, III, and IV of such Act are
    classified principally to this chapter. For complete classification
    of this Act to the Code, see Short Title note set out under section
    1001 of this title and Tables.

-End-


-CITE-
    29 USC Subtitle B - Joint Pension, Profit-Sharing, and
           Employee Stock Ownership Plan Task Force;
           Studies                                         01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER II - JURISDICTION, ADMINISTRATION, ENFORCEMENT; JOINT
                     PENSION TASK FORCE, ETC.  
    Subtitle B - Joint Pension, Profit-Sharing, and Employee Stock
                  Ownership Plan Task Force; Studies

-HEAD-
      SUBTITLE B - JOINT PENSION, PROFIT-SHARING, AND EMPLOYEE STOCK
                    OWNERSHIP PLAN TASK FORCE; STUDIES

-End-


-CITE-
    29 USC part 1 - joint pension, profit-sharing, and
                     employee stock ownership plan task
                     force                                 01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER II - JURISDICTION, ADMINISTRATION, ENFORCEMENT; JOINT
                     PENSION TASK FORCE, ETC.  
    Subtitle B - Joint Pension, Profit-Sharing, and Employee Stock
                  Ownership Plan Task Force; Studies
    part 1 - joint pension, profit-sharing, and employee stock ownership
              plan task force                         

-HEAD-
        PART 1 - JOINT PENSION, PROFIT-SHARING, AND EMPLOYEE STOCK
                         OWNERSHIP PLAN TASK FORCE

-End-



-CITE-
    29 USC Sec. 1221                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER II - JURISDICTION, ADMINISTRATION, ENFORCEMENT; JOINT
                     PENSION TASK FORCE, ETC.  
    Subtitle B - Joint Pension, Profit-Sharing, and Employee Stock
                  Ownership Plan Task Force; Studies
    part 1 - joint pension, profit-sharing, and employee stock ownership
              plan task force                         

-HEAD-
    Sec. 1221. Establishment

-STATUTE-
      The staffs of the Committee on Ways and Means and the Committee
    on Education and Labor of the House of Representatives, the Joint
    Committee on Taxation, and the Committee on Finance and the
    Committee on Labor and Public Welfare of the Senate shall carry out
    the duties assigned under this subchapter to the Joint Pension,
    Profit-Sharing, and Employee Stock Ownership Plan Task Force. By
    agreement among the chairmen of such Committees, the Joint Pension,
    Profit-Sharing, and Employee Stock Ownership Plan Task Force shall
    be furnished with office space, clerical personnel, and such
    supplies and equipment as may be necessary for the Joint Pension,
    Profit-Sharing, and Employee Stock Ownership Plan Task Force to
    carry out its duties under this subchapter.

-SOURCE-
    (Pub. L. 93-406, title III, Sec. 3021, Sept. 2, 1974, 88 Stat. 999;
    Pub. L. 94-455, title VIII, Sec. 803(i) (2)(A)(iii), title XIX,
    Sec. 1907(a)(5), Oct. 4, 1976, 90 Stat. 1591, 1836.)


-MISC1-
                                AMENDMENTS                            
      1976 - Pub. L. 94-455, Sec. 803(i)(2)(A)(iii), substituted "Joint
    Pension, Profit-Sharing, and Employee Stock Ownership Plan Task
    Force" for "Joint Pension Task Force" wherever appearing.

-CHANGE-
                              CHANGE OF NAME                          
      Committee on Education and Labor of House of Representatives
    treated as referring to Committee on Economic and Educational
    Opportunities of House of Representatives by section 1(a) of Pub.
    L. 104-14, set out as a note preceding section 21 of Title 2, The
    Congress. Committee on Economic and Educational Opportunities of
    House of Representatives changed to Committee on Education and the
    Workforce of House of Representatives by House Resolution No. 5,
    One Hundred Fifth Congress, Jan. 7, 1997.
      "Joint Committee on Taxation" substituted for "Joint Committee on
    Internal Revenue Taxation" on authority of section 1907(a)(5) of
    Pub. L. 94-455.
      Committee on Labor and Public Welfare of Senate abolished and
    replaced by Committee on Human Resources of Senate, effective Feb.
    11, 1977. See Rule XXV of Standing Rules of Senate, as amended by
    Senate Resolution No. 4 (popularly cited as the "Committee System
    Reorganization Amendments of 1977"), approved Feb. 4, 1977.
    Committee on Human Resources of Senate changed to Committee on
    Labor and Human Resources of Senate, effective Mar. 7, 1979, by
    Senate Resolution No. 30, 96th Congress. See, also, Rule XXV of
    Standing Rules of Senate adopted Nov. 14, 1979. Committee on Labor
    and Human Resources of Senate changed to Committee on Health,
    Education, Labor, and Pensions of Senate by Senate Resolution No.
    20, One Hundred Sixth Congress, Jan. 19, 1999.

-End-



-CITE-
    29 USC Sec. 1222                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER II - JURISDICTION, ADMINISTRATION, ENFORCEMENT; JOINT
                     PENSION TASK FORCE, ETC.  
    Subtitle B - Joint Pension, Profit-Sharing, and Employee Stock
                  Ownership Plan Task Force; Studies
    part 1 - joint pension, profit-sharing, and employee stock ownership
              plan task force                         

-HEAD-
    Sec. 1222. Duties

-STATUTE-
      (a) The Joint Pension, Profit-Sharing, and Employee Stock
    Ownership Plan Task Force shall, within 24 months after September
    2, 1974, make a full study and review of - 
        (1) the effect of the requirements of section 411 of title 26
      and of section 1053 of this title to determine the extent of
      discrimination, if any, among employees in various age groups
      resulting from the application of such requirements;
        (2) means of providing for the portability of pension rights
      among different pension plans;
        (3) the appropriate treatment under subchapter III of this
      chapter (relating to termination insurance) of plans established
      and maintained by small employers;
        (4) the broadening of stock ownership, particularly with regard
      to employee stock ownership plans (as defined in section
      4975(e)(7) of title 26 and section 1107(d)(6) of this title) and
      all other alternative methods for broadening stock ownership to
      the American labor force and others;
        (5) the effects and desirability of the Federal preemption of
      State and local law with respect to matters relating to pension
      and similar plans; and
        (6) such other matter as any of the committees referred to in
      section 1221 of this title may refer to it.

      (b) The Joint Pension, Profit-Sharing, and Employee Stock
    Ownership Plan Task Force shall report the results of its study and
    review to each of the committees referred to in section 1221 of
    this title.

-SOURCE-
    (Pub. L. 93-406, title III, Sec. 3022, Sept. 2, 1974, 88 Stat. 999;
    Pub. L. 94-455, title VIII, Sec. 803(i)(1), (2)(A)(iii), Oct. 4,
    1976, 90 Stat. 1590, 1591; Pub. L. 101-239, title VII, Sec.
    7891(a)(1), Dec. 19, 1989, 103 Stat. 2445.)


-MISC1-
                                AMENDMENTS                            
      1989 - Subsec. (a)(1), (4). Pub. L. 101-239 substituted "Internal
    Revenue Code of 1986" for "Internal Revenue Code of 1954", which
    for purposes of codification was translated as "title 26" thus
    requiring no change in text.
      1976 - Subsec. (a). Pub. L. 94-455, Sec. 803(i)(1), (2)(A)(iii),
    substituted "Joint Pension, Profit-Sharing, and Employee Stock
    Ownership Plan Task Force" for "Joint Pension Task Force" in
    provision preceding par. (1), redesignated pars. (4) and (5) as (5)
    and (6), respectively, and added par. (4).
      Subsec. (b). Pub. L. 94-455, Sec. 803(i)(2)(A)(iii), substituted
    "Joint Pension, Profit-Sharing, and Employee Stock Ownership Plan
    Task Force" for "Joint Pension Task Force".

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by Pub. L. 101-239 effective, except as otherwise
    provided, as if included in the provision of the Tax Reform Act of
    1986, Pub. L. 99-514, to which such amendment relates, see section
    7891(f) of Pub. L. 101-239, set out as a note under section 1002 of
    this title.

-End-


-CITE-
    29 USC part 2 - other studies                               01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER II - JURISDICTION, ADMINISTRATION, ENFORCEMENT; JOINT
                     PENSION TASK FORCE, ETC.  
    Subtitle B - Joint Pension, Profit-Sharing, and Employee Stock
                  Ownership Plan Task Force; Studies
    part 2 - other studies

-HEAD-
                          PART 2 - OTHER STUDIES                      

-End-



-CITE-
    29 USC Sec. 1231                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER II - JURISDICTION, ADMINISTRATION, ENFORCEMENT; JOINT
                     PENSION TASK FORCE, ETC.  
    Subtitle B - Joint Pension, Profit-Sharing, and Employee Stock
                  Ownership Plan Task Force; Studies
    part 2 - other studies

-HEAD-
    Sec. 1231. Congressional study

-STATUTE-
      (a) The Committee on Education and Labor and the Committee on
    Ways and Means of the House of Representatives and the Committee on
    Finance and the Committee on Labor and Public Welfare of the Senate
    shall study retirement plans established and maintained or financed
    (directly or indirectly) by the Government of the United States, by
    any State (including the District of Columbia) or political
    subdivision thereof, or by any agency or instrumentality of any of
    the foregoing. Such study shall include an analysis of - 
        (1) the adequacy of existing levels of participation, vesting,
      and financing arrangements,
        (2) existing fiduciary standards, and
        (3) the necessity for Federal legislation and standards with
      respect to such plans.

    In determining whether any such plan is adequately financed, each
    committee shall consider the necessity for minimum funding
    standards, as well as the taxing power of the government
    maintaining the plan.
      (b) Not later than December 31, 1976, the Committee on Education
    and Labor and the Committee on Ways and Means shall each submit to
    the House of Representatives the results of the studies conducted
    under this section, together with such recommendations as they deem
    appropriate. The Committee on Finance and the Committee on Labor
    and Public Welfare shall each submit to the Senate the results of
    the studies conducted under this section together with such
    recommendations as they deem appropriate not later than such date.

-SOURCE-
    (Pub. L. 93-406, title III, Sec. 3031, Sept. 2, 1974, 88 Stat.
    999.)

-CHANGE-
                              CHANGE OF NAME                          
      Committee on Education and Labor of House of Representatives
    treated as referring to Committee on Economic and Educational
    Opportunities of House of Representatives by section 1(a) of Pub.
    L. 104-14, set out as a note preceding section 21 of Title 2, The
    Congress. Committee on Economic and Educational Opportunities of
    House of Representatives changed to Committee on Education and the
    Workforce of House of Representatives by House Resolution No. 5,
    One Hundred Fifth Congress, Jan. 7, 1997.
      Committee on Labor and Public Welfare of Senate abolished and
    replaced by Committee on Human Resources of Senate, effective Feb.
    11, 1977. See Rule XXV of Standing Rules of Senate, as amended by
    Senate Resolution No. 4 (popularly cited as the "Committee System
    Reorganization Amendments of 1977"), approved Feb. 4, 1977.
    Committee on Human Resources of Senate changed to Committee on
    Labor and Human Resources of Senate, effective Mar. 7, 1979, by
    Senate Resolution No. 30, 96th Congress. See, also, Rule XXV of
    Standing Rules of Senate adopted Nov. 14, 1979. Committee on Labor
    and Human Resources of Senate changed to Committee on Health,
    Education, Labor, and Pensions of Senate by Senate Resolution No.
    20, One Hundred Sixth Congress, Jan. 19, 1999.

-End-



-CITE-
    29 USC Sec. 1232                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER II - JURISDICTION, ADMINISTRATION, ENFORCEMENT; JOINT
                     PENSION TASK FORCE, ETC.  
    Subtitle B - Joint Pension, Profit-Sharing, and Employee Stock
                  Ownership Plan Task Force; Studies
    part 2 - other studies

-HEAD-
    Sec. 1232. Protection for employees under Federal procurement,
      construction, and research contracts and grants

-STATUTE-
    (a) Study and investigation by Secretary of Labor
      The Secretary of Labor shall, during the 2-year period beginning
    on September 2, 1974, conduct a full and complete study and
    investigation of the steps necessary to be taken to insure that
    professional, scientific, and technical personnel and others
    working in associated occupations employed under Federal
    procurement, construction, or research contracts or grants will, to
    the extent feasible, be protected against forfeitures of pension or
    retirement rights or benefits, otherwise provided, as a consequence
    of job transfers or loss of employment resulting from terminations
    or modifications of Federal contracts, grants, or procurement
    policies. The Secretary of Labor shall report the results of his
    study and investigation to the Congress within 2 years after
    September 2, 1974. The Secretary of Labor is authorized, to the
    extent provided by law, to obtain the services of private research
    institutions and such other persons by contract or other
    arrangement as he determines necessary in carrying out the
    provisions of this section.
    (b) Consultation
      In the course of conducting the study and investigation described
    in subsection (a) of this section, and in developing the
    regulations referred to in subsection (c) of this section, the
    Secretary of Labor shall consult - 
        (1) with appropriate professional societies, business
      organizations, and labor organizations, and
        (2) with the heads of interested Federal departments and
      agencies.
    (c) Regulations
      Within 1 year after the date on which he submits his report to
    the Congress under subsection (a) of this section, the Secretary of
    Labor shall, if he determines it to be feasible, develop
    regulations, which will provide the protection of pension and
    retirement rights and benefits referred to in subsection (a) of
    this section.
    (d) Congressional review of regulations; resolution of disapproval
      (1) Any regulations developed pursuant to subsection (c) of this
    section shall take effect if, and only if - 
        (A) the Secretary of Labor, not later than the day which is 3
      years after September 2, 1974, delivers a copy of such
      regulations to the House of Representatives and a copy to the
      Senate, and
        (B) before the close of the 120-day period which begins on the
      day on which the copies of such regulations are delivered to the
      House of Representatives and to the Senate, neither the House of
      Representatives nor the Senate adopts, by an affirmative vote of
      a majority of those present and voting in that House, a
      resolution of disapproval.

      (2) For purposes of this subsection, the term "resolution of
    disapproval" means only a resolution of either House of Congress,
    the matter after the resolving clause of which is as follows: "That
    the __ does not favor the taking effect of the regulations
    transmitted to the Congress by the Secretary of Labor on __", the
    first blank space therein being filled with the name of the
    resolving House and the second blank space therein being filled
    with the day and year.
      (3) A resolution of disapproval in the House of Representatives
    shall be referred to the Committee on Education and Labor. A
    resolution of disapproval in the Senate shall be referred to the
    Committee on Labor and Public Welfare.
      (4)(A) If the committee to which a resolution of disapproval has
    been referred has not reported it at the end of 7 calendar days
    after its introduction, it is in order to move either to discharge
    the committee from further consideration of the resolution or to
    discharge the committee from further consideration of any other
    resolution of disapproval which has been referred to the committee.
      (B) A motion to discharge may be made only by an individual
    favoring the resolution, is highly privileged (except that it may
    not be made after the committee has reported a resolution of
    disapproval), and debate thereon shall be limited to not more than
    1 hour, to be divided equally between those favoring and those
    opposing the resolution. An amendment to the motion is not in
    order, and it is not in order to move to reconsider the vote by
    which the motion is agreed to or disagreed to.
      (C) If the motion to discharge is agreed to or disagreed to, the
    motion may not be renewed, nor may another motion to discharge the
    committee be made with respect to any other resolution of
    disapproval.
      (5)(A) When the committee has reported, or has been discharged
    from further consideration of, a resolution of disapproval, it is
    at any time thereafter in order (even though a previous motion to
    the same effect has been disagreed to) to move to proceed to the
    consideration of the resolution. The motion is highly privileged
    and is not debatable. An amendment to the motion is not in order,
    and it is not in order to move to reconsider the vote by which the
    motion is agreed to or disagreed to.
      (B) Debate on the resolution of disapproval shall be limited to
    not more than 10 hours, which shall be divided equally between
    those favoring and those opposing the resolution. A motion further
    to limit debate is not debatable. An amendment to, or motion to
    recommit, the resolution is not in order, and it is not in order to
    move to reconsider the vote by which the resolution is agreed to or
    disagreed to.
      (6)(A) Motions to postpone, made with respect to the discharge
    from committee or the consideration of a resolution of disapproval,
    and motions to proceed to the consideration of other business,
    shall be decided without debate.
      (B) Appeals from the decisions of the Chair relating to the
    application of the rules of the House of Representatives or the
    Senate, as the case may be, to the procedure relating to any
    resolution of disapproval shall be decided without debate.
      (7) Whenever the Secretary of Labor transmits copies of the
    regulations to the Congress, a copy of such regulations shall be
    delivered to each House of Congress on the same day and shall be
    delivered to the Clerk of the House of Representatives if the House
    is not in session and to the Secretary of the Senate if the Senate
    is not in session.
      (8) The 120 day period referred to in paragraph (1) shall be
    computed by excluding - 
        (A) the days on which either House is not in session because of
      an adjournment of more than 3 days to a day certain or an
      adjournment of the Congress sine die, and
        (B) any Saturday and Sunday, not excluded under subparagraph
      (A), when either House is not in session.

      (9) This subsection is enacted by the Congress - 
        (A) as an exercise of the rulemaking power of the House of
      Representatives and the Senate, respectively, and as such they
      are deemed a part of the rules of each House, respectively, but
      applicable only with respect to the procedure to be followed in
      that House in the case of resolutions of disapproval described in
      paragraph (2); and they supersede other rules only to the extent
      that they are inconsistent therewith; and
        (B) with full recognition of the constitutional right of either
      House to change the rules (so far as relating to the procedures
      of that House) at any time, in the same manner and to the same
      extent as in the case of any other rule of that House.

-SOURCE-
    (Pub. L. 93-406, title III, Sec. 3032, Sept. 2, 1974, 88 Stat.
    1000.)

-CHANGE-
                              CHANGE OF NAME                          
      Committee on Education and Labor of House of Representatives
    treated as referring to Committee on Economic and Educational
    Opportunities of House of Representatives by section 1(a) of Pub.
    L. 104-14, set out as a note preceding section 21 of Title 2, The
    Congress. Committee on Economic and Educational Opportunities of
    House of Representatives changed to Committee on Education and the
    Workforce of House of Representatives by House Resolution No. 5,
    One Hundred Fifth Congress, Jan. 7, 1997.
      Committee on Labor and Public Welfare of Senate abolished and
    replaced by Committee on Human Resources of Senate, effective Feb.
    11, 1977. See Rule XXV of Standing Rules of Senate, as amended by
    Senate Resolution No. 4 (popularly cited as the "Committee System
    Reorganization Amendments of 1977"), approved Feb. 4, 1977.
    Committee on Human Resources of Senate changed to Committee on
    Labor and Human Resources of Senate, effective Mar. 7, 1979, by
    Senate Resolution No. 30, 96th Congress. See, also, Rule XXV of
    Standing Rules of Senate adopted Nov. 14, 1979. Committee on Labor
    and Human Resources of Senate changed to Committee on Health,
    Education, Labor, and Pensions of Senate by Senate Resolution No.
    20, One Hundred Sixth Congress, Jan. 19, 1999.

-End-


-CITE-
    29 USC Subtitle C - Enrollment of Actuaries                 01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER II - JURISDICTION, ADMINISTRATION, ENFORCEMENT; JOINT
                     PENSION TASK FORCE, ETC.  
    Subtitle C - Enrollment of Actuaries

-HEAD-
                   SUBTITLE C - ENROLLMENT OF ACTUARIES               

-End-



-CITE-
    29 USC Sec. 1241                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER II - JURISDICTION, ADMINISTRATION, ENFORCEMENT; JOINT
                     PENSION TASK FORCE, ETC.  
    Subtitle C - Enrollment of Actuaries

-HEAD-
    Sec. 1241. Joint Board for the Enrollment of Actuaries

-STATUTE-
      The Secretary of Labor and the Secretary of the Treasury shall,
    not later than the last day of the first calendar month beginning
    after September 2, 1974, establish a Joint Board for the Enrollment
    of Actuaries (hereinafter in this part referred to as the "Joint
    Board").

-SOURCE-
    (Pub. L. 93-406, title III, Sec. 3041, Sept. 2, 1974, 88 Stat.
    1002.)

-End-



-CITE-
    29 USC Sec. 1242                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER II - JURISDICTION, ADMINISTRATION, ENFORCEMENT; JOINT
                     PENSION TASK FORCE, ETC.  
    Subtitle C - Enrollment of Actuaries

-HEAD-
    Sec. 1242. Enrollment by Board; standards and qualifications;
      suspension or termination of enrollment

-STATUTE-
      (a) The Joint Board shall, by regulations, establish reasonable
    standards and qualifications for persons performing actuarial
    services with respect to plans in which this chapter applies and,
    upon application by any individual, shall enroll such individual if
    the Joint Board finds that such individual satisfies such standards
    and qualifications. With respect to individuals applying for
    enrollment before January 1, 1976, such standards and
    qualifications shall include a requirement for an appropriate
    period of responsible actuarial experience relating to pension
    plans. With respect to individuals applying for enrollment on or
    after January 1, 1976, such standards and qualifications shall
    include - 
        (1) education and training in actuarial mathematics and
      methodology, as evidenced by - 
          (A) a degree in actuarial mathematics or its equivalent from
        an accredited college or university,
          (B) successful completion of an examination in actuarial
        mathematics and methodology to be given by the Joint Board, or
          (C) successful completion of other actuarial examinations
        deemed adequate by the Joint Board, and

        (2) an appropriate period of responsible actuarial experience.

    Notwithstanding the preceding provisions of this subsection, the
    Joint Board may provide for the temporary enrollment for the period
    ending January 1, 1976, of actuaries under such interim standards
    as it deems adequate.
      (b) The Joint Board may, after notice and an opportunity for a
    hearing, suspend or terminate the enrollment of an individual under
    this section if the Joint Board finds that such individual - 
        (1) has failed to discharge his duties under this chapter, or
        (2) does not satisfy the requirements for enrollment as in
      effect at the time of his enrollment.

    The Joint Board may also, after notice and opportunity for hearing,
    suspend or terminate the temporary enrollment of an individual who
    fails to discharge his duties under this chapter or who does not
    satisfy the interim enrollment standards.

-SOURCE-
    (Pub. L. 93-406, title III, Sec. 3042, Sept. 2, 1974, 88 Stat.
    1002.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This chapter, referred to in subsecs. (a) and (b), was in the
    original "this Act", meaning Pub. L. 93-406, known as the Employee
    Retirement Income Security Act of 1974. Titles I, III, and IV of
    such Act are classified principally to this chapter. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 1001 of this title and Tables.

-End-


-CITE-
    29 USC SUBCHAPTER III - PLAN TERMINATION INSURANCE          01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE

-HEAD-
                SUBCHAPTER III - PLAN TERMINATION INSURANCE            

-End-


-CITE-
    29 USC Subtitle A - Pension Benefit Guaranty Corporation    01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle A - Pension Benefit Guaranty Corporation

-HEAD-
             SUBTITLE A - PENSION BENEFIT GUARANTY CORPORATION         

-End-



-CITE-
    29 USC Sec. 1301                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle A - Pension Benefit Guaranty Corporation

-HEAD-
    Sec. 1301. Definitions

-STATUTE-
      (a) For purposes of this subchapter, the term - 
        (1) "administrator" means the person or persons described in
      paragraph (16) of section 1002 of this title;
        (2) "substantial employer", for any plan year of a single-
      employer plan, means one or more persons - 
          (A) who are contributing sponsors of the plan in such plan
        year,
          (B) who, at any time during such plan year, are members of
        the same controlled group, and
          (C) whose required contributions to the plan for each plan
        year constituting one of - 
            (i) the two immediately preceding plan years, or
            (ii) the first two of the three immediately preceding plan
          years,

        total an amount greater than or equal to 10 percent of all
        contributions required to be paid to or under the plan for such
        plan year;

        (3) "multiemployer plan" means a plan - 
          (A) to which more than one employer is required to
        contribute,
          (B) which is maintained pursuant to one or more collective
        bargaining agreements between one or more employee
        organizations and more than one employer, and
          (C) which satisfies such other requirements as the Secretary
        of Labor may prescribe by regulation,

      except that, in applying this paragraph - 
          (i) a plan shall be considered a multiemployer plan on and
        after its termination date if the plan was a multiemployer plan
        under this paragraph for the plan year preceding such
        termination, and
          (ii) for any plan year which began before September 26, 1980,
        the term "multiemployer plan" means a plan described in section
        414(f) of title 26 as in effect immediately before such date;

        (4) "corporation", except where the context clearly requires
      otherwise, means the Pension Benefit Guaranty Corporation
      established under section 1302 of this title;
        (5) "fund" means the appropriate fund established under section
      1305 of this title;
        (6) "basic benefits" means benefits guaranteed under section
      1322 of this title (other than under section 1322(c) (!1) of this
      title), or under section 1322a of this title (other than under
      section 1322a(g) of this title);

        (7) "non-basic benefits" means benefits guaranteed under
      section 1322(c) (!1) of this title or 1322a(g) of this title;
        (8) "nonforfeitable benefit" means, with respect to a plan, a
      benefit for which a participant has satisfied the conditions for
      entitlement under the plan or the requirements of this chapter
      (other than submission of a formal application, retirement,
      completion of a required waiting period, or death in the case of
      a benefit which returns all or a portion of a participant's
      accumulated mandatory employee contributions upon the
      participant's death), whether or not the benefit may subsequently
      be reduced or suspended by a plan amendment, an occurrence of any
      condition, or operation of this chapter or the Internal Revenue
      Code of 1986;
        (9) "reorganization index" means the amount determined under
      section 1421(b) of this title;
        (10) "plan sponsor" means, with respect to a multiemployer plan
      - 
          (A) the plan's joint board of trustees, or
          (B) if the plan has no joint board of trustees, the plan
        administrator;

        (11) "contribution base unit" means a unit with respect to
      which an employer has an obligation to contribute under a
      multiemployer plan, as defined in regulations prescribed by the
      Secretary of the Treasury;
        (12) "outstanding claim for withdrawal liability" means a
      plan's claim for the unpaid balance of the liability determined
      under part 1 of subtitle E of this subchapter for which demand
      has been made, valued in accordance with regulations prescribed
      by the corporation;
        (13) "contributing sponsor", of a single-employer plan, means a
      person described in section 1082(c)(11)(A) of this title (without
      regard to section 1082(c)(11)(B) of this title) or section
      412(c)(11)(A) of title 26 (without regard to section
      412(c)(11)(B) of such title).(!2)

        (14) in the case of a single-employer plan - 
          (A) "controlled group" means, in connection with any person,
        a group consisting of such person and all other persons under
        common control with such person;
          (B) the determination of whether two or more persons are
        under "common control" shall be made under regulations of the
        corporation which are consistent and coextensive with
        regulations prescribed for similar purposes by the Secretary of
        the Treasury under subsections (b) and (c) of section 414 of
        title 26; and
          (C)(i) notwithstanding any other provision of this
        subchapter, during any period in which an individual possesses,
        directly or indirectly, the power to direct or cause the
        direction of the management and policies of an affected air
        carrier of which he was an accountable owner, whether through
        the ownership of voting securities, by contract, or otherwise,
        the affected air carrier shall be considered to be under common
        control not only with those persons described in subparagraph
        (B), but also with all related persons; and
          (ii) for purposes of this subparagraph, the term - 
            (I) "affected air carrier" means an air carrier, as defined
          in section 40102(a)(2) of title 49, that holds a certificate
          of public convenience and necessity under section 41102 of
          title 49 for route number 147, as of November 12, 1991;
            (II) "related person" means any person which was under
          common control (as determined under subparagraph (B)) with an
          affected air carrier on October 10, 1991, or any successor to
          such related person;
            (III) "accountable owner" means any individual who on
          October 10, 1991, owned directly or indirectly through the
          application of section 318 of title 26 more than 50 percent
          of the total voting power of the stock of an affected air
          carrier;
            (IV) "successor" means any person that acquires, directly
          or indirectly through the application of section 318 of title
          26, more than 50 percent of the total voting power of the
          stock of a related person, more than 50 percent of the total
          value of the securities (as defined in section 1002(20) of
          this title) of the related person, more than 50 percent of
          the total value of the assets of the related person, or any
          person into which such related person shall be merged or
          consolidated; and
            (V) "individual" means a living human being;

        (15) "single-employer plan" means any defined benefit plan (as
      defined in section 1002(35) of this title) which is not a
      multiemployer plan;
        (16) "benefit liabilities" means the benefits of employees and
      their beneficiaries under the plan (within the meaning of section
      401(a)(2) of title 26);
        (17) "amount of unfunded guaranteed benefits", of a participant
      or beneficiary as of any date under a single-employer plan, means
      an amount equal to the excess of - 
          (A) the actuarial present value (determined as of such date
        on the basis of assumptions prescribed by the corporation for
        purposes of section 1344 of this title) of the benefits of the
        participant or beneficiary under the plan which are guaranteed
        under section 1322 of this title, over
          (B) the current value (as of such date) of the assets of the
        plan which are required to be allocated to those benefits under
        section 1344 of this title;

        (18) "amount of unfunded benefit liabilities" means, as of any
      date, the excess (if any) of - 
          (A) the value of the benefit liabilities under the plan
        (determined as of such date on the basis of assumptions
        prescribed by the corporation for purposes of section 1344 of
        this title), over
          (B) the current value (as of such date) of the assets of the
        plan;

        (19) "outstanding amount of benefit liabilities" means, with
      respect to any plan, the excess (if any) of - 
          (A) the value of the benefit liabilities under the plan
        (determined as of the termination date on the basis of
        assumptions prescribed by the corporation for purposes of
        section 1344 of this title), over
          (B) the value of the benefit liabilities which would be so
        determined by only taking into account benefits which are
        guaranteed under section 1322 of this title or to which assets
        of the plan are allocated under section 1344 of this title;

        (20) "person" has the meaning set forth in section 1002(9) of
      this title;
        (21) "affected party" means, with respect to a plan - 
          (A) each participant in the plan,
          (B) each beneficiary under the plan who is a beneficiary of a
        deceased participant or who is an alternate payee (within the
        meaning of section 1056(d)(3)(K) of this title) under an
        applicable qualified domestic relations order (within the
        meaning of section 1056(d)(3)(B)(i) of this title),
          (C) each employee organization representing participants in
        the plan, and
          (D) the corporation,

      except that, in connection with any notice required to be
      provided to the affected party, if an affected party has
      designated, in writing, a person to receive such notice on behalf
      of the affected party, any reference to the affected party shall
      be construed to refer to such person.

      (b)(1) An individual who owns the entire interest in an
    unincorporated trade or business is treated as his own employer,
    and a partnership is treated as the employer of each partner who is
    an employee within the meaning of section 401(c)(1) of title 26.
    For purposes of this subchapter, under regulations prescribed by
    the corporation, all employees of trades or businesses (whether or
    not incorporated) which are under common control shall be treated
    as employed by a single employer and all such trades and businesses
    as a single employer. The regulations prescribed under the
    preceding sentence shall be consistent and coextensive with
    regulations prescribed for similar purposes by the Secretary of the
    Treasury under section 414(c) of title 26.
      (2) For purposes of subtitle E of this subchapter - 
        (A) except as otherwise provided in subtitle E of this
      subchapter, contributions or other payments shall be considered
      made under a plan for a plan year if they are made within the
      period prescribed under section 412(c)(10) of title 26
      (determined, in the case of a terminated plan, as if the plan had
      continued beyond the termination date), and
        (B) the term "Secretary of the Treasury" means the Secretary of
      the Treasury or such Secretary's delegate.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4001, Sept. 2, 1974, 88 Stat. 1003;
    Pub. L. 96-364, title IV, Sec. 402(a)(1), Sept. 26, 1980, 94 Stat.
    1296; Pub. L. 99-272, title XI, Sec. 11004, Apr. 7, 1986, 100 Stat.
    238; Pub. L. 100-203, title IX, Secs. 9312(b)(4), (5),
    9313(a)(2)(F), Dec. 22, 1987, 101 Stat. 1330-363, 1330-365; Pub. L.
    101-239, title VII, Sec. 7891(a)(1), Dec. 19, 1989, 103 Stat. 2445;
    Pub. L. 102-229, title II, Sec. 214, Dec. 12, 1991, 105 Stat. 1718;
    Pub. L. 103-465, title VII, Sec. 761(a)(11), Dec. 8, 1994, 108
    Stat. 5034; Pub. L. 109-280, title I, Sec. 107(b)(1), Aug. 17,
    2006, 120 Stat. 819.)


-STATAMEND-
                      AMENDMENT OF SUBSECTION (A)(13)                  
      Pub. L. 109-280, title I, Sec. 107(b)(1), (e), Aug. 17, 2006, 120
    Stat. 819, 820, provided that, applicable to plan years beginning
    after 2007, subsection (a)(13) of this section is amended by
    substituting "1082(b)(1)" for "1082(c)(11)(A)", "1082(b)(2)" for
    "1082(c)(11)(B)", "412(b)(1)" for "412(c)(11)(A)", and "412(b)(2)"
    for "412(c)(11)(B)".

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 1322(c) of this title, referred to in subsec. (a)(6),
    (7), was redesignated section 1322(d) of this title by Pub. L. 100-
    203, title IX, Sec. 9312(b)(3)(A)(i), Dec. 22, 1987, 101 Stat.
    1330-362.
      This chapter, referred to in subsec. (a)(8), was in the original
    "this Act", meaning Pub. L. 93-406, known as the Employee
    Retirement Income Security Act of 1974. Titles I, III, and IV of
    such Act are classified principally to this chapter. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 1001 of this title and Tables.
      The Internal Revenue Code of 1986, referred to in subsec. (a)(8),
    is classified generally to Title 26, Internal Revenue Code.

-COD-
                               CODIFICATION                           
      In subsec. (a)(14)(C)(ii)(I), "section 40102(a)(2) of title 49"
    substituted for "section 101(3) of the Federal Aviation Act of
    1958" and "section 41102 of title 49" substituted for "section 401
    of such Act" on authority of Pub. L. 103-272, Sec. 6(b), July 5,
    1994, 108 Stat. 1378, the first section of which enacted subtitles
    II, III, and V to X of Title 49, Transportation.


-MISC1-
                                AMENDMENTS                            
      1994 - Subsec. (a)(13). Pub. L. 103-465 substituted "means a
    person described in section 1082(c)(11)(A) of this title (without
    regard to section 1082(c)(11)(B) of this title) or section
    412(c)(11)(A) of title 26 (without regard to section 412(c)(11)(B)
    of such title)." for "means a person - 
        "(A) who is responsible, in connection with such plan, for
      meeting the funding requirements under section 1082 of this title
      or section 412 of title 26, or
        "(B) who is a member of the controlled group of a person
      described in subparagraph (A), has been responsible for meeting
      such funding requirements, and has employed a significant number
      (as may be defined in regulations of the corporation) of
      participants under such plan while such person was so
      responsible;".
      1991 - Subsec. (a)(14)(C). Pub. L. 102-229, which directed the
    amendment of section 4001(a)(14) of the Employment Retirement
    Income Security Act of 1974 by adding subpar. (C), was executed to
    section 4001(a)(14) of the Employee Retirement Income Security Act
    of 1974, which is classified to this section, to reflect the
    probable intent of Congress.
      1989 - Subsec. (a)(8). Pub. L. 101-239 substituted "Internal
    Revenue Code of 1986" for "Internal Revenue Code of 1954".
      Subsecs. (a)(13)(A), (14)(B), (b)(1), (2)(A). Pub. L. 101-239
    substituted "Internal Revenue Code of 1986" for "Internal Revenue
    Code of 1954", which for purposes of codification was translated as
    "title 26" thus requiring no change in text.
      1987 - Subsec. (a)(16). Pub. L. 100-203, Sec. 9312(b)(4), amended
    par. (16) generally. Prior to amendment, par. (16) read as follows:
    " 'benefit commitments', to a participant or beneficiary as of any
    date under a single-employer plan, means all benefits provided by
    the plan with respect to the participant or beneficiary which - 
        "(A) are guaranteed under section 1322 of this title,
        "(B) would be guaranteed under section 1322 of this title, but
      for the operation of subsection 1322(b) of this title, or
        "(C) constitute - 
          "(i) early retirement supplements or subsidies, or
          "(ii) plant closing benefits,
      irrespective of whether any such supplements, subsidies, or
      benefits are benefits guaranteed under section 1322 of this
      title, if the participant or beneficiary has satisfied, as of
      such date, all of the conditions required of him or her under the
      provisions of the plan to establish entitlement to the benefits,
      except for the submission of a formal application, retirement,
      completion of a required waiting period subsequent to application
      for benefits, or designation of a beneficiary;".
      Subsec. (a)(18). Pub. L. 100-203, Sec. 9313(a)(2)(F), amended
    par. (18) generally. Prior to amendment, par. (18) read as follows:
    " 'amount of unfunded benefit commitments', of a participant or
    beneficiary as of any date under a single-employer plan, means an
    amount equal to the excess of - 
        "(A) the actuarial present value (determined as of such date on
      the basis of assumptions prescribed by the corporation for
      purposes of section 1344 of this title) of the benefit
      commitments to the participant or beneficiary under the plan,
      over
        "(B) the current value (as of such date) of the assets of the
      plan which are required to be allocated to those benefit
      commitments under section 1344 of this title;".
      Subsec. (a)(19). Pub. L. 100-203, Sec. 9312(b)(5), amended par.
    (19) generally. Prior to amendment, par. (19) read as follows: "
    'outstanding amount of benefit commitments', of a participant or
    beneficiary under a terminated single-employer plan, means the
    excess of - 
        "(A) the actuarial present value (determined as of the
      termination date on the basis of assumptions prescribed by the
      corporation for purposes of section 1344 of this title) of the
      benefit commitments to such participant or beneficiary under the
      plan, over
        "(B) the actuarial present value (determined as of such date on
      the basis of assumptions prescribed by the corporation for
      purposes of section 1344 of this title) of the benefits of such
      participant or beneficiary which are guaranteed under section
      1322 of this title or to which assets of the plan are required to
      be allocated under section 1344 of this title;".
      1986 - Subsec. (a)(2). Pub. L. 99-272, Sec. 11004(a)(1), amended
    par. (2) generally, substituting provisions defining "substantial
    employer" for any plan year of a single-employer plan for
    provisions defining "substantial employer" for any plan year as an
    employer, treating employers who are members of the same affiliated
    group as one employer, who has made contributions to or under a
    plan under which more than one employer, other than a multi-
    employer plan, makes contributions for each of the two immediately
    preceding plan years or the second and third preceding plan years
    equaling or exceeding 10 percent of all employer contributions paid
    to or under that plan for such year.
      Subsec. (a)(13). Pub. L. 99-272, Sec. 11004(a)(2)-(4), added par.
    (13).
      Subsec. (a)(14). Pub. L. 99-272, Sec. 11004(a)(2)-(4), added par.
    (14).
      Subsec. (a)(15) to (21). Pub. L. 99-272, Sec. 11004(a)(2)-(4),
    added pars. (15) to (21).
      Subsec. (b). Pub. L. 99-272, Sec. 11004(b), designated existing
    provisions as par. (1), added par. (2), and struck out amendments
    by Pub. L. 96-364, Sec. 402(a)(1)(F), which had been executed by
    designating existing provisions as par. (1) and adding pars. (2) to
    (4). See 1980 Amendment note below. For successor provisions to
    former pars. (2), (3), and (4), see subsecs. (a)(15), (b)(2)(A),
    and (b)(2)(B), respectively.
      1980 - Subsec. (a)(2). Pub. L. 96-364, Sec. 402(a)(1)(A),
    inserted provision excepting multiemployer plan.
      Subsec. (a)(3). Pub. L. 96-364, Sec. 402(a)(1)(B), substantially
    revised definition of term "multiemployer plan" by, among other
    changes, adding subpars. (A) to (C) and cl. (i), and restating
    existing provisions as cl. (ii) with respect to plan years
    beginning before Sept. 26, 1980.
      Subsec. (a)(6). Pub. L. 96-364, Sec. 402(a)(1)(C), inserted
    references to section 1322a of this title.
      Subsec. (a)(7). Pub. L. 96-364, Sec. 402(a)(1)(D), inserted
    reference to section 1322a(g) of this title.
      Subsec. (a)(8) to (12). Pub. L. 96-364, Sec. 402(a)(1)(E), added
    pars. (8) to (12).
      Subsec. (b). Pub. L. 96-364, Sec. 402(a)(1)(F), which was
    executed by designating existing provisions as par. (1) and adding
    pars. (2) to (4), notwithstanding directory language that pars. (2)
    to (4) be added at end of subsec. (c)(1) as redesignated, was
    struck out by Pub. L. 99-272, Sec. 11004(b). See 1986 Amendment
    note above.

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Amendment by Pub. L. 109-280 applicable to plan years beginning
    after 2007, see section 107(e) of Pub. L. 109-280, set out as a
    note under section 1021 of this title.

                     EFFECTIVE DATE OF 1994 AMENDMENT                 
      Amendment by Pub. L. 103-465 effective as if included in the
    Pension Protection Act, Pub. L. 100-203, Secs. 9302-9346, see
    section 761(b)(2) of Pub. L. 103-465, set out as a note under
    section 1056 of this title.

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by Pub. L. 101-239 effective, except as otherwise
    provided, as if included in the provision of the Tax Reform Act of
    1986, Pub. L. 99-514, to which such amendment relates, see section
    7891(f) of Pub. L. 101-239, set out as a note under section 1002 of
    this title.

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Section 9312(d)(1) of Pub. L. 100-203, as amended by Pub. L. 101-
    239, title VII, Sec. 7881(f)(9), Dec. 19, 1989, 103 Stat. 2440,
    provided that: "The amendments made by this section [amending this
    section and sections 1305, 1322, 1341, 1342, 1349, 1362, 1364, and
    1368 of this title and repealing section 1349 of this title] shall
    apply with respect to - 
        "(A) plan terminations under section 4041 of ERISA [29 U.S.C.
      1341] with respect to which notices of intent to terminate are
      provided under section 4041(a)(2) of ERISA after December 17,
      1987, and
        "(B) plan terminations with respect to which proceedings are
      instituted by the Pension Benefit Guaranty Corporation under
      section 4042 of ERISA [29 U.S.C. 1342] after December 17, 1987."
      Section 9313(c) of Pub. L. 100-203 provided that: "The amendments
    made by this section [amending this section and sections 1341 and
    1367 of this title] shall apply with respect to plan terminations
    under section 4041 of ERISA [29 U.S.C. 1341] with respect to which
    notices of intent to terminate are provided under section
    4041(a)(2) of ERISA after December 17, 1987."

                     EFFECTIVE DATE OF 1986 AMENDMENT                 
      Amendment by Pub. L. 99-272 effective Jan. 1, 1986, with certain
    exceptions, see section 11019 of Pub. L. 99-272, set out as a note
    under section 1341 of this title.

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-364 effective Sept. 26, 1980, except as
    specifically provided, see section 1461(e) of this title.

    APPLICABILITY OF AMENDMENTS BY SUBTITLES A AND B OF TITLE I OF PUB.
                                L. 109-280
      For special rules on applicability of amendments by subtitles A
    (Secs. 101-107) and B (Secs. 111-116) of title I of Pub. L. 109-280
    to certain eligible cooperative plans, PBGC settlement plans, and
    eligible government contractor plans, see sections 104, 105, and
    106 of Pub. L. 109-280, set out as notes under section 401 of Title
    26, Internal Revenue Code.

        COORDINATION OF INTERNAL REVENUE CODE OF 1986 WITH EMPLOYEE
                  RETIREMENT INCOME SECURITY ACT OF 1974
      This subchapter not applicable in interpreting Internal Revenue
    Code of 1986, except to the extent specifically provided in such
    Code, or as determined by the Secretary of the Treasury, see
    section 9343(a) of Pub. L. 100-203, set out as a note under section
    401 of Title 26, Internal Revenue Code.

-FOOTNOTE-
    (!1) See References in Text note below.

               

    (!2) So in original. The period probably should be a semicolon.


-End-



-CITE-
    29 USC Sec. 1302                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle A - Pension Benefit Guaranty Corporation

-HEAD-
    Sec. 1302. Pension Benefit Guaranty Corporation

-STATUTE-
    (a) Establishment within Department of Labor
      There is established within the Department of Labor a body
    corporate to be known as the Pension Benefit Guaranty Corporation.
    In carrying out its functions under this subchapter, the
    corporation shall be administered by a Director, who shall be
    appointed by the President, by and with the advice and consent of
    the Senate, and who shall act in accordance with the policies
    established by the board. The purposes of this subchapter, which
    are to be carried out by the corporation, are - 
        (1) to encourage the continuation and maintenance of voluntary
      private pension plans for the benefit of their participants,
        (2) to provide for the timely and uninterrupted payment of
      pension benefits to participants and beneficiaries under plans to
      which this subchapter applies, and
        (3) to maintain premiums established by the corporation under
      section 1306 of this title at the lowest level consistent with
      carrying out its obligations under this subchapter.
    (b) Powers of corporation
      To carry out the purposes of this subchapter, the corporation has
    the powers conferred on a nonprofit corporation under the District
    of Columbia Nonprofit Corporation Act and, in addition to any
    specific power granted to the corporation elsewhere in this
    subchapter or under that Act, the corporation has the power - 
        (1) to sue and be sued, complain and defend, in its corporate
      name and through its own counsel, in any court, State or Federal;
        (2) to adopt, alter, and use a corporate seal, which shall be
      judicially noticed;
        (3) to adopt, amend, and repeal, by the board of directors,
      bylaws, rules, and regulations relating to the conduct of its
      business and the exercise of all other rights and powers granted
      to it by this chapter and such other bylaws, rules, and
      regulations as may be necessary to carry out the purposes of this
      subchapter;
        (4) to conduct its business (including the carrying on of
      operations and the maintenance of offices) and to exercise all
      other rights and powers granted to it by this chapter in any
      State or other jurisdiction without regard to qualification,
      licensing, or other requirements imposed by law in such State or
      other jurisdiction;
        (5) to lease, purchase, accept gifts or donations of, or
      otherwise to acquire, to own, hold, improve, use, or otherwise
      deal in or with, and to sell, convey, mortgage, pledge, lease,
      exchange, or otherwise dispose of, any property, real, personal,
      or mixed, or any interest therein wherever situated;
        (6) to appoint and fix the compensation of such officers,
      attorneys, employees, and agents as may be required, to determine
      their qualifications, to define their duties, and, to the extent
      desired by the corporation, require bonds for them and fix the
      penalty thereof, and to appoint and fix the compensation of
      experts and consultants in accordance with the provisions of
      section 3109 of title 5;
        (7) to utilize the personnel and facilities of any other agency
      or department of the United States Government, with or without
      reimbursement, with the consent of the head of such agency or
      department; and
        (8) to enter into contracts, to execute instruments, to incur
      liabilities, and to do any and all other acts and things as may
      be necessary or incidental to the conduct of its business and the
      exercise of all other rights and powers granted to the
      corporation by this chapter.
    (c) Omitted
    (d) Board of directors; compensation; reimbursement for expenses
      The board of directors of the corporation consists of the
    Secretary of the Treasury, the Secretary of Labor, and the
    Secretary of Commerce. Members of the Board shall serve without
    compensation, but shall be reimbursed for travel, subsistence, and
    other necessary expenses incurred in the performance of their
    duties as members of the board. The Secretary of Labor is the
    chairman of the board of directors.
    (e) Meetings
      The board of directors shall meet at the call of its chairman, or
    as otherwise provided by the bylaws of the corporation.
    (f) Adoption of bylaws; amendment, alteration; publication in the
      Federal Register
      As soon as practicable, but not later than 180 days after
    September 2, 1974, the board of directors shall adopt initial
    bylaws and rules relating to the conduct of the business of the
    corporation. Thereafter, the board of directors may alter,
    supplement, or repeal any existing bylaw or rule, and may adopt
    additional bylaws and rules from time to time as may be necessary.
    The chairman of the board shall cause a copy of the bylaws of the
    corporation to be published in the Federal Register not less often
    than once each year.
    (g) Exemption from taxation
      (1) The corporation, its property, its franchise, capital,
    reserves, surplus, and its income (including, but not limited to,
    any income of any fund established under section 1305 of this
    title), shall be exempt from all taxation now or hereafter imposed
    by the United States (other than taxes imposed under chapter 21 of
    title 26, relating to Federal Insurance Contributions Act [26
    U.S.C. 3101 et seq.], and chapter 23 of title 26, relating to
    Federal Unemployment Tax Act [26 U.S.C. 3301 et seq.]), or by any
    State or local taxing authority, except that any real property and
    any tangible personal property (other than cash and securities) of
    the corporation shall be subject to State and local taxation to the
    same extent according to its value as other real and tangible
    personal property is taxed.
      (2) The receipts and disbursements of the corporation in the
    discharge of its functions shall be included in the totals of the
    budget of the United States Government. The United States is not
    liable for any obligation or liability incurred by the corporation.
      (3) Omitted.
    (h) Advisory committee to corporation
      (1) There is established an advisory committee to the
    corporation, for the purpose of advising the corporation as to its
    policies and procedures relating to (A) the appointment of trustees
    in termination proceedings, (B) investment of moneys, (C) whether
    plans being terminated should be liquidated immediately or
    continued in operation under a trustee, and (D) such other issues
    as the corporation may request from time to time. The advisory
    committee may also recommend persons for appointment as trustees in
    termination proceedings, make recommendations with respect to the
    investment of moneys in the funds, and advise the corporation as to
    whether a plan subject to being terminated should be liquidated
    immediately or continued in operation under a trustee.
      (2) The advisory committee consists of seven members appointed,
    from among individuals recommended by the board of directors, by
    the President. Of the seven members, two shall represent the
    interests of employee organizations, two shall represent the
    interests of employers who maintain pension plans, and three shall
    represent the interests of the general public. The President shall
    designate one member as chairman at the time of the appointment of
    that member.
      (3) Members shall serve for terms of 3 years each, except that,
    of the members first appointed, one of the members representing the
    interests of employee organizations, one of the members
    representing the interests of employers, and one of the members
    representing the interests of the general public shall be appointed
    for terms of 2 years each, one of the members representing the
    interests of the general public shall be appointed for a term of 1
    year, and the other members shall be appointed to full 3-year
    terms. The advisory committee shall meet at least six times each
    year and at such other times as may be determined by the chairman
    or requested by any three members of the advisory committee.
      (4) Members shall be chosen on the basis of their experience with
    employee organizations, with employers who maintain pension plans,
    with the administration of pension plans, or otherwise on account
    of outstanding demonstrated ability in related fields. Of the
    members serving on the advisory committee at any time, no more than
    four shall be affiliated with the same political party.
      (5) An individual appointed to fill a vacancy occurring other
    than by the expiration of a term of office shall be appointed only
    for the unexpired term of the member he succeeds. Any vacancy
    occurring in the office of a member of the advisory committee shall
    be filled in the manner in which that office was originally filled.
      (6) The advisory committee shall appoint and fix the compensation
    of such employees as it determines necessary to discharge its
    duties, including experts and consultants in accordance with the
    provisions of section 3109 of title 5. The corporation shall
    furnish to the advisory committee such professional, secretarial,
    and other services as the committee may request.
      (7) Members of the advisory committee shall, for each day
    (including traveltime) during which they are attending meetings or
    conferences of the committee or otherwise engaged in the business
    of the committee, be compensated at a rate fixed by the corporation
    which is not in excess of the daily equivalent of the annual rate
    of basic pay in effect for grade GS-18 of the General Schedule, and
    while away from their homes or regular places of business they may
    be allowed travel expenses, including per diem in lieu of
    subsistence, as authorized by section 5703 of title 5.
      (8) The Federal Advisory Committee Act does not apply to the
    advisory committee established by this subsection.
    (i) Special rules regarding disasters, etc.
      In the case of a pension or other employee benefit plan, or any
    sponsor, administrator, participant, beneficiary, or other person
    with respect to such plan, affected by a Presidentially declared
    disaster (as defined in section 1033(h)(3) of title 26) or a
    terroristic or military action (as defined in section 692(c)(2) of
    such title), the corporation may, notwithstanding any other
    provision of law, prescribe, by notice or otherwise, a period of up
    to 1 year which may be disregarded in determining the date by which
    any action is required or permitted to be completed under this
    chapter. No plan shall be treated as failing to be operated in
    accordance with the terms of the plan solely as the result of
    disregarding any period by reason of the preceding sentence.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4002, Sept. 2, 1974, 88 Stat. 1004;
    Pub. L. 94-455, title XV, Sec. 1510(a), Oct. 4, 1976, 90 Stat.
    1741; Pub. L. 96-364, title IV, Secs. 403(l), 406(a), Sept. 26,
    1980, 94 Stat. 1302, 1303; Pub. L. 101-239, title VII, Sec.
    7891(a)(1), Dec. 19, 1989, 103 Stat. 2445; Pub. L. 107-134, title
    I, Sec. 112(c)(2), Jan. 23, 2002, 115 Stat. 2434; Pub. L. 109-280,
    title IV, Sec. 411(a)(1), Aug. 17, 2006, 120 Stat. 935.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The District of Columbia Nonprofit Corporation Act, referred to
    in subsec. (b), is Pub. L. 87-569, Aug. 6, 1962, 76 Stat. 265, as
    amended, which is not classified to the Code.
      This chapter, referred to in subsecs. (b)(3), (4), (8) and (i),
    was in original "this Act", meaning Pub. L. 93-406, known as the
    Employee Retirement Income Security Act of 1974. Titles I, III, and
    IV of such Act are classified principally to this chapter. For
    complete classification of this Act to the Code, see Short Title
    note set out under section 1001 of this title and Tables.
      The Federal Insurance Contributions Act, referred to in subsec.
    (g)(1), is act Aug. 16, 1954, ch. 736, Secs. 3101, 3102, 3111,
    3112, 3121 to 3128, 68A Stat. 415, as amended, which is classified
    generally to chapter 21 (Sec. 3101 et seq.) of Title 26, Internal
    Revenue Code. For complete classification of this Act to the Code,
    see section 3128 of Title 26 and Tables.
      The Federal Unemployment Tax Act, referred to in subsec. (g)(1),
    is act Aug. 16, 1954, ch. 736, Secs. 3301 to 3311, 68A Stat. 454,
    as amended, which is classified generally to chapter 23 (Sec. 3301
    et seq.) of Title 26. For complete classification of this Act to
    the Code, see section 3311 of Title 26 and Tables.
      The Federal Advisory Committee Act, referred to in subsec.
    (h)(8), is Pub. L. 92-463, Oct. 6, 1972, 86 Stat. 770, as amended,
    which is set out in the Appendix to Title 5, Government
    Organization and Employees.

-COD-
                               CODIFICATION                           
      Subsec. (c) amended section 5108 of Title 5, Government
    Organization and Employees, and subsec. (g)(3) amended section 846
    of former Title 31, Money and Finance.


-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (a). Pub. L. 109-280 in introductory provisions
    substituted "In carrying out its functions under this subchapter,
    the corporation shall be administered by a Director, who shall be
    appointed by the President, by and with the advice and consent of
    the Senate, and who shall act in accordance with the policies
    established by the board" for "In carrying out its functions under
    this subchapter, the corporation shall be administered by the
    chairman of the board of directors in accordance with policies
    established by the board".
      2002 - Subsec. (i). Pub. L. 107-134 added subsec. (i).
      1989 - Subsec. (g)(1). Pub. L. 101-239 substituted "Internal
    Revenue Code of 1986" for "Internal Revenue Code of 1954", which
    for purposes of codification was translated as "title 26" thus
    requiring no change in text.
      1980 - Subsec. (b)(3). Pub. L. 96-364, Sec. 403(l), inserted
    provisions respecting bylaws, etc., to carry out this subchapter.
      Subsec. (g)(2). Pub. L. 96-364, Sec. 406(a), substituted
    provisions relating to inclusion of receipts and disbursements in
    United States budget totals and nonliability of United States for
    obligation or liability of corporation, for provisions relating to
    noninclusion of receipts and disbursements in United States budget
    totals, exemption from limitations with respect to budget outlays,
    and restrictions on liability for obligation or liability incurred
    by the corporation.
      1976 - Subsec. (g)(1). Pub. L. 94-455 exempted corporation from
    all taxation now or hereafter imposed by United States (other than
    taxes imposed under chapter 21 of title 26, relating to Federal
    Insurance Contributions Act, and chapter 23 of title 26, relating
    to Federal Unemployment Tax Act).

                     EFFECTIVE DATE OF 2002 AMENDMENT                 
      Amendment by Pub. L. 107-134 applicable to disasters and
    terroristic or military actions occurring on or after Sept. 11,
    2001, with respect to any action of the Secretary of the Treasury,
    the Secretary of Labor, or the Pension Benefit Guaranty Corporation
    occurring on or after Jan. 23, 2002, see section 112(f) of Pub. L.
    107-134, set out as a note under section 6081 of Title 26, Internal
    Revenue Code.

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by Pub. L. 101-239 effective, except as otherwise
    provided, as if included in the provision of the Tax Reform Act of
    1986, Pub. L. 99-514, to which such amendment relates, see section
    7891(f) of Pub. L. 101-239, set out as a note under section 1002 of
    this title.

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-364 effective Sept. 26, 1980, except as
    specifically provided, see section 1461(e) of this title.
      Section 406(b) of Pub. L. 96-364 provided that: "The amendment
    made by subsection (a) [amending this section] shall apply to
    fiscal years beginning after September 30, 1980."

                     EFFECTIVE DATE OF 1976 AMENDMENT                 
      Section 1510(b) of Pub. L. 94-455 provided that: "The amendment
    made by subsection (a) [amending this section] shall take effect on
    September 2, 1974."

                                TRANSITION                            
      Pub. L. 109-280, title IV, Sec. 411(d), Aug. 17, 2006, 120 Stat.
    936, provided that: "The term of the individual serving as
    Executive Director of the Pension Benefit Guaranty Corporation on
    the date of enactment of this Act [Aug. 17, 2006] shall expire on
    such date of enactment. Such individual, or any other individual,
    may serve as interim Director of such Corporation until an
    individual is appointed as Director of such Corporation under
    section 4002 of the Employee Retirement Income Security Act of 1974
    (29 U.S.C. 1302) (as amended by this Act)."

          REFERENCES IN OTHER LAWS TO GS-16, 17, OR 18 PAY RATES      
      References in laws to the rates of pay for GS-16, 17, or 18, or
    to maximum rates of pay under the General Schedule, to be
    considered references to rates payable under specified sections of
    Title 5, Government Organization and Employees, see section 529
    [title I, Sec. 101(c)(1)] of Pub. L. 101-509, set out in a note
    under section 5376 of Title 5.

-End-



-CITE-
    29 USC Sec. 1303                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle A - Pension Benefit Guaranty Corporation

-HEAD-
    Sec. 1303. Operation of corporation

-STATUTE-
    (a) Investigatory authority; audit of statistically significant
      number of terminating plans
      The corporation may make such investigations as it deems
    necessary to enforce any provision of this subchapter or any rule
    or regulation thereunder, and may require or permit any person to
    file with it a statement in writing, under oath or otherwise as the
    corporation shall determine, as to all the facts and circumstances
    concerning the matter to be investigated. The corporation shall
    annually audit a statistically significant number of plans
    terminating under section 1341(b) of this title to determine
    whether participants and beneficiaries have received their benefit
    commitments and whether section 1350(a) of this title has been
    satisfied. Each audit shall include a statistically significant
    number of participants and beneficiaries.
    (b) Discovery powers vested in board members or officers designated
      by the chairman
      For the purpose of any such investigation, or any other
    proceeding under this subchapter, the Director, any member of the
    board of directors of the corporation, or any officer designated by
    the Director or chairman, may administer oaths and affirmations,
    subpena witnesses, compel their attendance, take evidence, and
    require the production of any books, papers, correspondence,
    memoranda, or other records which the corporation deems relevant or
    material to the inquiry.
    (c) Contempt
      In the case of contumacy by, or refusal to obey a subpena issued
    to, any person, the corporation may invoke the aid of any court of
    the United States within the jurisdiction of which such
    investigation or proceeding is carried on, or where such person
    resides or carries on business, in requiring the attendance and
    testimony of witnesses and the production of books, papers,
    correspondence, memoranda, and other records. The court may issue
    an order requiring such person to appear before the corporation, or
    member or officer designated by the corporation, and to produce
    records or to give testimony related to the matter under
    investigation or in question. Any failure to obey such order of the
    court may be punished by the court as a contempt thereof. All
    process in any such case may be served in the judicial district in
    which such person is an inhabitant or may be found.
    (d) Cooperation with other governmental agencies
      In order to avoid unnecessary expense and duplication of
    functions among government agencies, the corporation may make such
    arrangements or agreements for cooperation or mutual assistance in
    the performance of its functions under this subchapter as is
    practicable and consistent with law. The corporation may utilize
    the facilities or services of any department, agency, or
    establishment of the United States or of any State or political
    subdivision of a State, including the services of any of its
    employees, with the lawful consent of such department, agency, or
    establishment. The head of each department, agency, or
    establishment of the United States shall cooperate with the
    corporation and, to the extent permitted by law, provide such
    information and facilities as it may request for its assistance in
    the performance of its functions under this subchapter. The
    Attorney General or his representative shall receive from the
    corporation for appropriate action such evidence developed in the
    performance of its functions under this subchapter as may be found
    to warrant consideration for criminal prosecution under the
    provisions of this or any other Federal law.
    (e) Civil actions by corporation; jurisdiction; process;
      expeditious handling of case; costs; limitation on actions
      (1) Civil actions may be brought by the corporation for
    appropriate relief, legal or equitable or both, to enforce (A) the
    provisions of this subchapter, and (B) in the case of a plan which
    is covered under this subchapter (other than a multiemployer plan)
    and for which the conditions for imposition of a lien described in
    section 1082(f)(1)(A) and (B) of this title or section 412(n)(1)(A)
    and (B) of title 26 have been met, section 1082 of this title and
    section 412 of title 26.
      (2) Except as otherwise provided in this subchapter, where such
    an action is brought in a district court of the United States, it
    may be brought in the district where the plan is administered,
    where the violation took place, or where a defendant resides or may
    be found, and process may be served in any other district where a
    defendant resides or may be found.
      (3) The district courts of the United States shall have
    jurisdiction of actions brought by the corporation under this
    subchapter without regard to the amount in controversy in any such
    action.
      (4) Repealed. Pub. L. 98-620, title IV, Sec. 402(33), Nov. 8,
    1984, 98 Stat. 3360.
      (5) In any action brought under this subchapter, whether to
    collect premiums, penalties, and interest under section 1307 of
    this title or for any other purpose, the court may award to the
    corporation all or a portion of the costs of litigation incurred by
    the corporation in connection with such action.
      (6)(A) Except as provided in subparagraph (C), an action under
    this subsection may not be brought after the later of - 
        (i) 6 years after the date on which the cause of action arose,
      or
        (ii) 3 years after the applicable date specified in
      subparagraph (B).

      (B)(i) Except as provided in clause (ii), the applicable date
    specified in this subparagraph is the earliest date on which the
    corporation acquired or should have acquired actual knowledge of
    the existence of such cause of action.
      (ii) If the corporation brings the action as a trustee, the
    applicable date specified in this subparagraph is the date on which
    the corporation became a trustee with respect to the plan if such
    date is later than the date described in clause (i).
      (C) In the case of fraud or concealment, the period described in
    subparagraph (A)(ii) shall be extended to 6 years after the
    applicable date specified in subparagraph (B).
    (f) Civil actions against corporation; appropriate court; award of
      costs and expenses; limitation on actions; jurisdiction; removal
      of actions
      (1) Except with respect to withdrawal liability disputes under
    part 1 of subtitle E of this subchapter, any person who is a
    fiduciary, employer, contributing sponsor, member of a contributing
    sponsor's controlled group, participant, or beneficiary, and is
    adversely affected by any action of the corporation with respect to
    a plan in which such person has an interest, or who is an employee
    organization representing such a participant or beneficiary so
    adversely affected for purposes of collective bargaining with
    respect to such plan, may bring an action against the corporation
    for appropriate equitable relief in the appropriate court.
      (2) For purposes of this subsection, the term "appropriate court"
    means - 
        (A) the United States district court before which proceedings
      under section 1341 or 1342 of this title are being conducted,
        (B) if no such proceedings are being conducted, the United
      States district court for the judicial district in which the plan
      has its principal office, or
        (C) the United States District Court for the District of
      Columbia.

      (3) In any action brought under this subsection, the court may
    award all or a portion of the costs and expenses incurred in
    connection with such action to any party who prevails or
    substantially prevails in such action.
      (4) This subsection shall be the exclusive means for bringing
    actions against the corporation under this subchapter, including
    actions against the corporation in its capacity as a trustee under
    section 1342 or 1349 (!1) of this title.

      (5)(A) Except as provided in subparagraph (C), an action under
    this subsection may not be brought after the later of - 
        (i) 6 years after the date on which the cause of action arose,
      or
        (ii) 3 years after the applicable date specified in
      subparagraph (B).

      (B)(i) Except as provided in clause (ii), the applicable date
    specified in this subparagraph is the earliest date on which the
    plaintiff acquired or should have acquired actual knowledge of the
    existence of such cause of action.
      (ii) In the case of a plaintiff who is a fiduciary bringing the
    action in the exercise of fiduciary duties, the applicable date
    specified in this subparagraph is the date on which the plaintiff
    became a fiduciary with respect to the plan if such date is later
    than the date specified in clause (i).
      (C) In the case of fraud or concealment, the period described in
    subparagraph (A)(ii) shall be extended to 6 years after the
    applicable date specified in subparagraph (B).
      (6) The district courts of the United States have jurisdiction of
    actions brought under this subsection without regard to the amount
    in controversy.
      (7) In any suit, action, or proceeding in which the corporation
    is a party, or intervenes under section 1451 of this title, in any
    State court, the corporation may, without bond or security, remove
    such suit, action, or proceeding from the State court to the United
    States district court for the district or division in which such
    suit, action, or proceeding is pending by following any procedure
    for removal now or hereafter in effect.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4003, Sept. 2, 1974, 88 Stat. 1006;
    Pub. L. 96-364, title IV, Secs. 402(a)(2), 403(k), Sept. 26, 1980,
    94 Stat. 1297, 1302; Pub. L. 98-620, title IV, Sec. 402(33), Nov.
    8, 1984, 98 Stat. 3360; Pub. L. 99-272, title XI, Secs.
    11014(b)(1), (2), 11016(c)(5), Apr. 7, 1986, 100 Stat. 262, 264,
    274; Pub. L. 103-465, title VII, Secs. 773(a), 776(b)(1), Dec. 8,
    1994, 108 Stat. 5044, 5048; Pub. L. 109-280, title I, Sec.
    107(b)(2), title IV, Sec. 411(a)(2), Aug. 17, 2006, 120 Stat. 819,
    935.)


-STATAMEND-
                      AMENDMENT OF SUBSECTION (E)(1)                  
      Pub. L. 109-280, title I, Sec. 107(b)(2), (e), Aug. 17, 2006, 120
    Stat. 819, 820, provided that, applicable to plan years beginning
    after 2007, subsection (e)(1) of this section is amended by
    substituting "1083(k)(1)(A) and (B)" for "1082(f)(1)(A) and (B)"
    and "430(k)(1)(A) and (B)" for "412(n)(1)(A) and (B)".

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 1349 of this title, referred to in subsec. (f)(4), was
    repealed by Pub. L. 100-203, title IX, Sec. 9312(a), Dec. 22, 1987,
    101 Stat. 1330-361.


-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (b). Pub. L. 109-280, Sec. 411(a)(2), substituted
    "under this subchapter, the Director, any member" for "under this
    subchapter, any member" and "designated by the Director or
    chairman" for "designated by the chairman".
      1994 - Subsec. (a). Pub. L. 103-465, Sec. 776(b)(1), inserted
    "and whether section 1350(a) of this title has been satisfied"
    before period at end of second sentence.
      Subsec. (e)(1). Pub. L. 103-465, Sec. 773(a), inserted "(A)"
    after "enforce" and substituted ", and" and cl. (B) for period at
    end.
      1986 - Subsec. (a). Pub. L. 99-272, Sec. 11016(c)(5), inserted
    provisions directing the corporation to audit annually a
    statistically significant number of plans terminating under section
    1341(b) of this title to determine whether participants and
    beneficiaries have received their benefit commitments and to
    include a statistically significant number of participants and
    beneficiaries in each audit.
      Subsec. (e)(6). Pub. L. 99-272, Sec. 11014(b)(2), added par. (6).
      Subsec. (f). Pub. L. 99-272, Sec. 11014(b)(1), amended subsec.
    (f) generally. Prior to amendment, subsec. (f) read as follows:
    "Except as provided in section 1451(a)(2) of this title, any
    participant, beneficiary, plan administrator, or employee adversely
    affected by any action of the corporation, or by a receiver or
    trustee appointed by the corporation, with respect to a plan in
    which such participant, beneficiary, plan administrator or employer
    has an interest, may bring an action against the corporation,
    receiver, or trustee in the appropriate court. For purposes of this
    subsection the term 'appropriate court' means the United States
    district court before which proceedings under section 1341 or 1342
    of this title are being conducted, or if no such proceedings are
    being conducted the United States district court for the district
    in which the plan has its principal office, or the United States
    district court for the District of Columbia. The district courts of
    the United States have jurisdiction of actions brought under this
    subsection without regard to the amount in controversy. In any
    suit, action, or proceeding in which the corporation is a party, or
    intervenes under section 1451 of this title, in any State court,
    the corporation may, without bond or security, remove such suit,
    action, or proceeding from the State court to the United States
    District Court for the district or division embracing the place
    where the same is pending by following any procedure for removal
    now or hereafter in effect."
      1984 - Subsec. (e)(4). Pub. L. 98-620 struck out par. (4) which
    provided that upon application by the corporation to a court of the
    United States for expedited handling of any case in which the
    corporation was a party, it was the duty of that court to assign
    such case for hearing at the earliest practical date and to cause
    such case to be in every way expedited.
      1980 - Subsec. (a). Pub. L. 96-364, Sec. 402(a)(2)(A),
    substituted "enforce" for "determine whether any person has
    violated or is about to violate".
      Subsec. (e)(1). Pub. L. 96-364, Sec. 402(a)(2)(B), substituted
    "enforce" for "redress violations of".
      Subsec. (f). Pub. L. 96-364, Secs. 402(a)(2)(C), 403(k),
    substituted "Except as provided in section 1451(a)(2) of the title,
    any" for "Any" and inserted provisions relating to removal of
    actions.

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Amendment by section 107(b)(2) of Pub. L. 109-280 applicable to
    plan years beginning after 2007, see section 107(e) of Pub. L. 109-
    280, set out as a note under section 1021 of this title.

                     EFFECTIVE DATE OF 1994 AMENDMENT                 
      Section 773(b) of Pub. L. 103-465 provided that: "The amendments
    made by this section [amending this section] shall be effective for
    installments and other payments required under section 302 of the
    Employee Retirement Income Security Act of 1974 [29 U.S.C. 1082] or
    section 412 of the Internal Revenue Code of 1986 [26 U.S.C. 412]
    that become due on or after the date of the enactment of this Act
    [Dec. 8, 1994]."
      Amendment by section 776(b)(1) of Pub. L. 103-465 effective with
    respect to distributions that occur in plan years commencing on or
    after Jan. 1, 1996, see section 776(e) of Pub. L. 103-465, set out
    as a note under section 1056 of this title.

                     EFFECTIVE DATE OF 1986 AMENDMENT                 
      Section 11014(b)(3) of Pub. L. 99-272 provided that: "The
    amendments made by this subsection [amending this section] shall
    apply with respect to actions filed after the date of the enactment
    of this Act [Apr. 7, 1986]."
      Amendment by section 11016(c)(5) of Pub. L. 99-272 effective Jan.
    1, 1986, with certain exceptions, see section 11019 of Pub. L. 99-
    272, set out as a note under section 1341 of this title.

                     EFFECTIVE DATE OF 1984 AMENDMENT                 
      Amendment by Pub. L. 98-620 not applicable to cases pending on
    Nov. 8, 1984, see section 403 of Pub. L. 98-620, set out as a note
    under section 1657 of Title 28, Judiciary and Judicial Procedure.

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-364 effective Sept. 26, 1980, except as
    specifically provided, see section 1461(e) of this title.

    APPLICABILITY OF AMENDMENTS BY SUBTITLES A AND B OF TITLE I OF PUB.
                                L. 109-280
      For special rules on applicability of amendments by subtitles A
    (Secs. 101-107) and B (Secs. 111-116) of title I of Pub. L. 109-280
    to certain eligible cooperative plans, PBGC settlement plans, and
    eligible government contractor plans, see sections 104, 105, and
    106 of Pub. L. 109-280, set out as notes under section 401 of Title
    26, Internal Revenue Code.

-FOOTNOTE-
    (!1) See References in Text note below.


-End-



-CITE-
    29 USC Sec. 1304                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle A - Pension Benefit Guaranty Corporation

-HEAD-
    Sec. 1304. Repealed.

-MISC1-
    Sec. 1304. Repealed. Pub. L. 99-272, title XI, Sec. 11016(c)(6),
      Apr. 7, 1986, 100 Stat. 274.
      Section, Pub. L. 93-406, title IV, Sec. 4004, Sept. 2, 1974, 88
    Stat. 1008, related to appointment, within 270 days after Sept. 2,
    1974, and powers and functions of a receiver to assume control of
    terminated plan and its assets.

                         EFFECTIVE DATE OF REPEAL                     
      Repeal effective Jan. 1, 1986, with certain exceptions, see
    section 11019 of Pub. L. 99-272, set out as an Effective Date of
    1986 Amendment note under section 1341 of this title.

-End-



-CITE-
    29 USC Sec. 1305                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle A - Pension Benefit Guaranty Corporation

-HEAD-
    Sec. 1305. Pension benefit guaranty funds

-STATUTE-
    (a) Establishment of four revolving funds on books of Treasury of
      the United States
      There are established on the books of the Treasury of the United
    States for revolving funds to be used by the corporation in
    carrying out its duties under this subchapter. One of the funds
    shall be used with respect to basic benefits guaranteed under
    section 1322 of this title, one of the funds shall be used with
    respect to basic benefits guaranteed under section 1322a of this
    title, one of the funds shall be used with respect to nonbasic
    benefits guaranteed under section 1322 of this title (if any), and
    the remaining fund shall be used with respect to nonbasic benefits
    guaranteed under section 1322a of this title (if any), other than
    subsection (g)(2) thereof (if any). Whenever in this subchapter
    reference is made to the term "fund" the reference shall be
    considered to refer to the appropriate fund established under this
    subsection.
    (b) Credits to funds; availability of funds; investment of moneys
      in excess of current needs
      (1) Each fund established under this section shall be credited
    with the appropriate portion of - 
        (A) funds borrowed under subsection (c) of this section,
        (B) premiums, penalties, interest, and charges collected under
      this subchapter,
        (C) the value of the assets of a plan administered under
      section 1342 of this title by a trustee to the extent that they
      exceed the liabilities of such plan,
        (D) the amount of any employer liability payments under
      subtitle D of this subchapter, to the extent that such payments
      exceed liabilities of the plan (taking into account all other
      plan assets),
        (E) earnings on investments of the fund or on assets credited
      to the fund under this subsection,
        (F) attorney's fees awarded to the corporation, and
        (G) receipts from any other operations under this subchapter.

      (2) Subject to the provisions of subsection (a) of this section,
    each fund shall be available - 
        (A) for making such payments as the corporation determines are
      necessary to pay benefits guaranteed under section 1322 or 1322a
      of this title or benefits payable under section 1350 of this
      title,
        (B) to purchase assets from a plan being terminated by the
      corporation when the corporation determines such purchase will
      best protect the interests of the corporation, participants in
      the plan being terminated, and other insured plans,
        (C) to repay to the Secretary of the Treasury such sums as may
      be borrowed (together with interest thereon) under subsection (c)
      of this section,
        (D) to pay the operational and administrative expenses of the
      corporation, including reimbursement of the expenses incurred by
      the Department of the Treasury in maintaining the funds, and the
      Comptroller General in auditing the corporation, and
        (E) to pay to participants and beneficiaries the estimated
      amount of benefits which are guaranteed by the corporation under
      this subchapter and the estimated amount of other benefits to
      which plan assets are allocated under section 1344 of this title,
      under single-employer plans which are unable to pay benefits when
      due or which are abandoned.

      (3) Whenever the corporation determines that the moneys of any
    fund are in excess of current needs, it may request the investment
    of such amounts as it determines advisable by the Secretary of the
    Treasury in obligations issued or guaranteed by the United States
    but, until all borrowings under subsection (c) of this section have
    been repaid, the obligations in which such excess moneys are
    invested may not yield a rate of return in excess of the rate of
    interest payable on such borrowings.
    (c) Authority to issue notes or other obligations; purchase by
      Secretary of the Treasury as public debt transaction
      The corporation is authorized to issue to the Secretary of the
    Treasury notes or other obligations in an aggregate amount of not
    to exceed $100,000,000, in such forms and denominations, bearing
    such maturities, and subject to such terms and conditions as may be
    prescribed by the Secretary of the Treasury. Such notes or other
    obligations shall bear interest at a rate determined by the
    Secretary of the Treasury, taking into consideration the current
    average market yield on outstanding marketable obligations of the
    United States of comparable maturities during the month preceding
    the issuance of such notes or other obligations of the corporation.
    The Secretary of the Treasury is authorized and directed to
    purchase any notes or other obligations issued by the corporation
    under this subsection, and for that purpose he is authorized to use
    as a public debt transaction the proceeds from the sale of any
    securities issued under chapter 31 of title 31, and the purposes
    for which securities may be issued under that chapter, are extended
    to include any purchase of such notes and obligations. The
    Secretary of the Treasury may at any time sell any of the notes or
    other obligations acquired by him under this subsection. All
    redemptions, purchases, and sales by the Secretary of the Treasury
    of such notes or other obligations shall be treated as public debt
    transactions of the United States.
    (d) Establishment of fifth fund; purpose, availability, etc.
      (1) A fifth fund shall be established for the reimbursement of
    uncollectible withdrawal liability under section 1402 of this
    title, and shall be credited with the appropriate - 
        (A) premiums, penalties, and interest charges collected under
      this subchapter, and
        (B) earnings on investments of the fund or on assets credited
      to the fund.

    The fund shall be available to make payments pursuant to the
    supplemental program established under section 1402 of this title,
    including those expenses and other charges determined to be
    appropriate by the corporation.
      (2) The corporation may invest amounts of the fund in such
    obligations as the corporation considers appropriate.
    (e) Establishment of sixth fund; purpose, availability, etc.
      (1) A sixth fund shall be established for the supplemental
    benefit guarantee program provided under section 1322a(g)(2) of
    this title.
      (2) Such fund shall be credited with the appropriate - 
        (A) premiums, penalties, and interest charges collected under
      section 1322a(g)(2) of this title, and
        (B) earnings on investments of the fund or on assets credited
      to the fund.

    The fund shall be available for making payments pursuant to the
    supplemental benefit guarantee program established under section
    1322a(g)(2) of this title, including those expenses and other
    charges determined to be appropriate by the corporation.
      (3) The corporation may invest amounts of the fund in such
    obligations as the corporation considers appropriate.
    (f) Deposit of premiums into separate revolving fund
      (1) A seventh fund shall be established and credited with - 
        (A) premiums, penalties, and interest charges collected under
      section 1306(a)(3)(A)(i) of this title (not described in
      subparagraph (B)) to the extent attributable to the amount of the
      premium in excess of $8.50,
        (B) premiums, penalties, and interest charges collected under
      section 1306(a)(3)(E) of this title, and
        (C) earnings on investments of the fund or on assets credited
      to the fund.

      (2) Amounts in the fund shall be available for transfer to other
    funds established under this section with respect to a single-
    employer plan but shall not be available to pay - 
        (A) administrative costs of the corporation, or
        (B) benefits under any plan which was terminated before October
      1, 1988,

    unless no other amounts are available for such payment.
      (3) The corporation may invest amounts of the fund in such
    obligations as the corporation considers appropriate.
    (g) Other use of funds; deposits of repayments
      (1) Amounts in any fund established under this section may be
    used only for the purposes for which such fund was established and
    may not be used to make loans to (or on behalf of) any other fund
    or to finance any other activity of the corporation.
      (2) None of the funds borrowed under subsection (c) of this
    section may be used to make loans to (or on behalf of) any fund
    other than a fund described in the second sentence of subsection
    (a) of this section.
      (3) Any repayment to the corporation of any amount paid out of
    any fund in connection with a multiemployer plan shall be deposited
    in such fund.
    (h) Voting by corporation of stock paid as liability
      Any stock in a person liable to the corporation under this
    subchapter which is paid to the corporation by such person or a
    member of such person's controlled group in satisfaction of such
    person's liability under this subchapter may be voted only by the
    custodial trustees or outside money managers of the corporation.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4005, Sept. 2, 1974, 88 Stat. 1009;
    Pub. L. 96-364, title IV, Sec. 403(a), Sept. 26, 1980, 94 Stat.
    1300; Pub. L. 99-272, title XI, Sec. 11016(a)(1), (2), (c)(7), Apr.
    7, 1986, 100 Stat. 268, 274; Pub. L. 100-203, title IX, Secs.
    9312(c)(4), 9331(d), Dec. 22, 1987, 101 Stat. 1330-364, 1330-368;
    Pub. L. 103-465, title VII, Sec. 776(b)(2), Dec. 8, 1994, 108 Stat.
    5048.)

-COD-
                               CODIFICATION                           
      In subsec. (c), "chapter 31 of title 31" and "that chapter"
    substituted for "the Second Liberty Bond Act, as amended" and "that
    Act, as amended,", respectively, on authority of Pub. L. 97-258,
    Sec. 4(b), Sept. 13, 1982, 96 Stat. 1067, the first section of
    which enacted Title 31, Money and Finance.


-MISC1-
                                AMENDMENTS                            
      1994 - Subsec. (b)(2)(A). Pub. L. 103-465, which directed the
    amendment of subpar. (A) by inserting "or benefits payable under
    section 1350 of this title" after "section 1322a of this title",
    was executed by making the insertion after "section 1322 or 1322a
    of this title" to reflect the probable intent of Congress.
      1987 - Subsec. (f). Pub. L. 100-203, Sec. 9331(d), added subsec.
    (f). Former subsec. (f) redesignated (g).
      Subsec. (g). Pub. L. 100-203, Sec. 9331(d), redesignated former
    subsec. (f) as (g). Former subsec. (g) redesignated (h).
      Pub. L. 100-203, Sec. 9312(c)(4), struck out "or fiduciaries with
    respect to trusts to which the requirements of section 1349 of this
    title apply" after "money managers of the corporation".
      Subsec. (h). Pub. L. 100-203, Sec. 9331(d), redesignated former
    subsec. (g) as (h).
      1986 - Subsec. (b)(1)(F), (G). Pub. L. 99-272, Sec. 11016(a)(2),
    added subpar. (F) and redesignated former subpar. (F) as (G).
      Subsec. (b)(2)(E). Pub. L. 99-272, Sec. 11016(a)(1), added
    subpar. (E).
      Subsec. (g). Pub. L. 99-272, Sec. 11016(c)(7), added subsec. (g).
      1980 - Subsec. (a). Pub. L. 96-364, Sec. 403(a)(1), substituted
    provisions respecting benefits guaranteed under sections 1322 and
    1322a of this title, for provisions respecting benefits guaranteed
    under sections 1322 and 1323 of this title.
      Subsec. (b)(2). Pub. L. 96-364, Sec. 403(a)(2), (3), in subpar.
    (A) inserted reference to section 1322a of this title, struck out
    subpar. (B) relating to payments under section 1323 of this title,
    and redesignated former subpars. (C) to (E) as (B) to (D),
    respectively.
      Subsecs. (d) to (f). Pub. L. 96-364, Sec. 403(a)(4), added
    subsecs. (d) to (f).

                     EFFECTIVE DATE OF 1994 AMENDMENT                 
      Amendment by Pub. L. 103-465 effective with respect to
    distributions that occur in plan years commencing on or after Jan.
    1, 1996, see section 776(e) of Pub. L. 103-465, set out as a note
    under section 1056 of this title.

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Amendment by section 9312(c)(4) of Pub. L. 100-203 applicable
    with respect to plan terminations under section 1341 of this title
    with respect to which notices of intent to terminate are provided
    under section 1341(a)(2) of this title after Dec. 17, 1987, and
    plan terminations with respect to which proceedings are instituted
    by the Pension Benefit Guaranty Corporation under section 1342 of
    this title after that date, see section 9312(d)(1) of Pub. L. 100-
    203, as amended, set out as a note under section 1301 of this
    title.
      Section 9331(f) of Pub. L. 100-203 provided that:
      "(1) In general. - The amendments made by this section [amending
    this section and sections 1306 and 1307 of this title] shall apply
    to plan years beginning after December 31, 1987.
      "(2) Separate accounting. - The amendments made by subsection (d)
    [amending this section] shall apply to fiscal years beginning after
    September 30, 1988."

                     EFFECTIVE DATE OF 1986 AMENDMENT                 
      Amendment by Pub. L. 99-272 effective Jan. 1, 1986, with certain
    exceptions, see section 11019 of Pub. L. 99-272, set out as a note
    under section 1341 of this title.

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-364 effective Sept. 26, 1980, except as
    specifically provided, see section 1461(e) of this title.

-End-



-CITE-
    29 USC Sec. 1306                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle A - Pension Benefit Guaranty Corporation

-HEAD-
    Sec. 1306. Premium rates

-STATUTE-
    (a) Schedules for premium rates and bases for application;
      establishment, coverage, etc.
      (1) The corporation shall prescribe such schedules of premium
    rates and bases for the application of those rates as may be
    necessary to provide sufficient revenue to the fund for the
    corporation to carry out its functions under this subchapter. The
    premium rates charged by the corporation for any period shall be
    uniform for all plans, other than multiemployer plans, insured by
    the corporation with respect to basic benefits guaranteed by it
    under section 1322 of this title, and shall be uniform for all
    multiemployer plans with respect to basic benefits guaranteed by it
    under section 1322a of this title.
      (2) The corporation shall maintain separate schedules of premium
    rates, and bases for the application of those rates, for - 
        (A) basic benefits guaranteed by it under section 1322 of this
      title for single-employer plans,
        (B) basic benefits guaranteed by it under section 1322a of this
      title for multiemployer plans,
        (C) nonbasic benefits guaranteed by it under section 1322 of
      this title for single-employer plans,
        (D) nonbasic benefits guaranteed by it under section 1322a of
      this title for multiemployer plans, and
        (E) reimbursements of uncollectible withdrawal liability under
      section 1402 of this title.

    The corporation may revise such schedules whenever it determines
    that revised schedules are necessary. Except as provided in section
    1322a(f) of this title, in order to place a revised schedule
    described in subparagraph (A) or (B) in effect, the corporation
    shall proceed in accordance with subsection (b)(1) of this section,
    and such schedule shall apply only to plan years beginning more
    than 30 days after the date on which a joint resolution approving
    such revised schedule is enacted.
      (3)(A) Except as provided in subparagraph (C), the annual premium
    rate payable to the corporation by all plans for basic benefits
    guaranteed under this subchapter is - 
        (i) in the case of a single-employer plan, for plan years
      beginning after December 31, 1990, an amount equal to the sum of
      $30 plus the additional premium (if any) determined under
      subparagraph (E) for each individual who is a participant in such
      plan during the plan year; (!1)

        (ii) in the case of a multiemployer plan, for the plan year
      within which the date of enactment of the Multiemployer Pension
      Plan Amendments Act of 1980 falls, an amount for each individual
      who is a participant in such plan for such plan year equal to the
      sum of - 
          (I) 50 cents, multiplied by a fraction the numerator of which
        is the number of months in such year ending on or before such
        date and the denominator of which is 12, and
          (II) $1.00, multiplied by a fraction equal to 1 minus the
        fraction determined under clause (i),

        (iii) in the case of a multiemployer plan, for plan years
      beginning after September 26, 1980, and before January 1, 2006,
      an amount equal to - 
          (I) $1.40 for each participant, for the first, second, third,
        and fourth plan years,
          (II) $1.80 for each participant, for the fifth and sixth plan
        years,
          (III) $2.20 for each participant, for the seventh and eighth
        plan years, and
          (IV) $2.60 for each participant, for the ninth plan year, and
        for each succeeding plan year, or

        (iv) in the case of a multiemployer plan, for plan years
      beginning after December 31, 2005, $8.00 for each individual who
      is a participant in such plan during the applicable plan year.

      (B) The corporation may prescribe by regulation the extent to
    which the rate described in subparagraph (A)(i) applies more than
    once for any plan year to an individual participating in more than
    one plan maintained by the same employer, and the corporation may
    prescribe regulations under which the rate described in clause
    (iii) or (iv) of subparagraph (A) will not apply to the same
    participant in any multiemployer plan more than once for any plan
    year.
      (C)(i) If the sum of - 
        (I) the amounts in any fund for basic benefits guaranteed for
      multiemployer plans, and
        (II) the value of any assets held by the corporation for
      payment of basic benefits guaranteed for multiemployer plans,

    is for any calendar year less than 2 times the amount of basic
    benefits guaranteed by the corporation under this subchapter for
    multiemployer plans which were paid out of any such fund or assets
    during the preceding calendar year, the annual premium rates under
    subparagraph (A) shall be increased to the next highest premium
    level necessary to insure that such sum will be at least 2 times
    greater than such amount during the following calendar year.
      (ii) If the board of directors of the corporation determines that
    an increase in the premium rates under subparagraph (A) is
    necessary to provide assistance to plans which are receiving
    assistance under section 1431 of this title and to plans the board
    finds are reasonably likely to require such assistance, the board
    may order such increase in the premium rates.
      (iii) The maximum annual premium rate which may be established
    under this subparagraph is $2.60 for each participant.
      (iv) The provisions of this subparagraph shall not apply if the
    annual premium rate is increased to a level in excess of $2.60 per
    participant under any other provisions of this subchapter.
      (D)(i) Not later than 120 days before the date on which an
    increase under subparagraph (C)(ii) is to become effective, the
    corporation shall publish in the Federal Register a notice of the
    determination described in subparagraph (C)(ii), the basis for the
    determination, the amount of the increase in the premium, and the
    anticipated increase in premium income that would result from the
    increase in the premium rate. The notice shall invite public
    comment, and shall provide for a public hearing if one is
    requested. Any such hearing shall be commenced not later than 60
    days before the date on which the increase is to become effective.
      (ii) The board of directors shall review the hearing record
    established under clause (i) and shall, not later than 30 days
    before the date on which the increase is to become effective,
    determine (after consideration of the comments received) whether
    the amount of the increase should be changed and shall publish its
    determination in the Federal Register.
      (E)(i) Except as provided in subparagraph (H), the additional
    premium determined under this subparagraph with respect to any plan
    for any plan year shall be an amount equal to the amount determined
    under clause (ii) divided by the number of participants in such
    plan as of the close of the preceding plan year.
      (ii) The amount determined under this clause for any plan year
    shall be an amount equal to $9.00 for each $1,000 (or fraction
    thereof) of unfunded vested benefits under the plan as of the close
    of the preceding plan year.
      (iii) For purposes of clause (ii) - 
        (I) Except as provided in subclause (II) or (III), the term
      "unfunded vested benefits" means the amount which would be the
      unfunded current liability (within the meaning of section
      1082(d)(8)(A) of this title) if only vested benefits were taken
      into account.
        (II) The interest rate used in valuing vested benefits for
      purposes of subclause (I) shall be equal to the applicable
      percentage of the annual yield on 30-year Treasury securities for
      the month preceding the month in which the plan year begins. For
      purposes of this subclause, the applicable percentage is 80
      percent for plan years beginning before July 1, 1997, 85 percent
      for plan years beginning after June 30, 1997, and before the 1st
      plan year to which the first tables prescribed under section
      1082(d)(7)(C)(ii)(II) of this title apply, and 100 percent for
      such 1st plan year and subsequent plan years.
        (III) In the case of any plan year for which the applicable
      percentage under subclause (II) is 100 percent, the value of the
      plan's assets used in determining unfunded current liability
      under subclause (I) shall be their fair market value.
        (IV) In the case of plan years beginning after December 31,
      2001, and before January 1, 2004, subclause (II) shall be applied
      by substituting "100 percent" for "85 percent". Subclause (III)
      shall be applied for such years without regard to the preceding
      sentence. Any reference to this clause or this subparagraph by
      any other sections or subsections (other than sections 1305,
      1310, 1311, and 1343 of this title) shall be treated as a
      reference to this clause or this subparagraph without regard to
      this subclause.
        (V) In the case of plan years beginning after December 31,
      2003, and before January 1, 2008, the annual yield taken into
      account under subclause (II) shall be the annual rate of interest
      determined by the Secretary of the Treasury on amounts invested
      conservatively in long-term investment grade corporate bonds for
      the month preceding the month in which the plan year begins. For
      purposes of the preceding sentence, the Secretary of the Treasury
      shall determine such rate of interest on the basis of 2 or more
      indices that are selected periodically by the Secretary of the
      Treasury and that are in the top 3 quality levels available. The
      Secretary of the Treasury shall make the permissible range, and
      the indices and methodology used to determine the rate, publicly
      available.

      (iv) No premium shall be determined under this subparagraph for
    any plan year if, as of the close of the preceding plan year,
    contributions to the plan for the preceding plan year were not less
    than the full funding limitation for the preceding plan year under
    section 412(c)(7) of title 26.
      (F) For each plan year beginning in a calendar year after 2006,
    there shall be substituted for the premium rate specified in clause
    (i) of subparagraph (A) an amount equal to the greater of - 
        (i) the product derived by multiplying the premium rate
      specified in clause (i) of subparagraph (A) by the ratio of - 
          (I) the national average wage index (as defined in section
        409(k)(1) of title 42) for the first of the 2 calendar years
        preceding the calendar year in which such plan year begins, to
          (II) the national average wage index (as so defined) for
        2004; and

        (ii) the premium rate in effect under clause (i) of
      subparagraph (A) for plan years beginning in the preceding
      calendar year.

    If the amount determined under this subparagraph is not a multiple
    of $1, such product shall be rounded to the nearest multiple of $1.
      (G) For each plan year beginning in a calendar year after 2006,
    there shall be substituted for the premium rate specified in clause
    (iv) of subparagraph (A) an amount equal to the greater of - 
        (i) the product derived by multiplying the premium rate
      specified in clause (iv) of subparagraph (A) by the ratio of - 
          (I) the national average wage index (as defined in section
        409(k)(1) of title 42) for the first of the 2 calendar years
        preceding the calendar year in which such plan year begins, to
          (II) the national average wage index (as so defined) for
        2004; and

        (ii) the premium rate in effect under clause (iv) of
      subparagraph (A) for plan years beginning in the preceding
      calendar year.

    If the amount determined under this subparagraph is not a multiple
    of $1, such product shall be rounded to the nearest multiple of $1.
      (H)(i) In the case of an employer who has 25 or fewer employees
    on the first day of the plan year, the additional premium
    determined under subparagraph (E) for each participant shall not
    exceed $5 multiplied by the number of participants in the plan as
    of the close of the preceding plan year.
      (ii) For purposes of clause (i), whether an employer has 25 or
    fewer employees on the first day of the plan year is determined by
    taking into consideration all of the employees of all members of
    the contributing sponsor's controlled group. In the case of a plan
    maintained by two or more contributing sponsors, the employees of
    all contributing sponsors and their controlled groups shall be
    aggregated for purposes of determining whether the 25-or-fewer-
    employees limitation has been satisfied.
      (4) The corporation may prescribe, subject to the enactment of a
    joint resolution in accordance with this section or section
    1322a(f) of this title, alternative schedules of premium rates, and
    bases for the application of those rates, for basic benefits
    guaranteed by it under sections 1322 and 1322a of this title based,
    in whole or in part, on the risks insured by the corporation in
    each plan.
      (5)(A) In carrying out its authority under paragraph (1) to
    establish schedules of premium rates, and bases for the application
    of those rates, for nonbasic benefits guaranteed under sections
    1322 and 1322a of this title the premium rates charged by the
    corporation for any period for nonbasic benefits guaranteed shall -
    
        (i) be uniform by category of nonbasic benefits guaranteed,
        (ii) be based on the risks insured in each category, and
        (iii) reflect the experience of the corporation (including
      experience which may be reasonably anticipated) in guaranteeing
      such benefits.

      (B) Notwithstanding subparagraph (A), premium rates charged to
    any multiemployer plan by the corporation for any period for
    supplemental guarantees under section 1322a(g)(2) of this title may
    reflect any reasonable considerations which the corporation
    determines to be appropriate.
      (6)(A) In carrying out its authority under paragraph (1) to
    establish premium rates and bases for basic benefits guaranteed
    under section 1322 of this title with respect to single-employer
    plans, the corporation shall establish such rates and bases in
    coverage schedules in accordance with the provisions of this
    paragraph.
      (B) The corporation may establish annual premiums for single-
    employer plans composed of the sum of - 
        (i) a charge based on a rate applicable to the excess, if any,
      of the present value of the basic benefits of the plan which are
      guaranteed over the value of the assets of the plan, not in
      excess of 0.1 percent, and
        (ii) an additional charge based on a rate applicable to the
      present value of the basic benefits of the plan which are
      guaranteed.

    The rate for the additional charge referred to in clause (ii) shall
    be set by the corporation for every year at a level which the
    corporation estimates will yield total revenue approximately equal
    to the total revenue to be derived by the corporation from the
    charges referred to in clause (i) of this subparagraph.
      (C) The corporation may establish annual premiums for single-
    employer plans based on - 
        (i) the number of participants in a plan, but such premium
      rates shall not exceed the rates described in paragraph (3),
        (ii) unfunded basic benefits guaranteed under this subchapter,
      but such premium rates shall not exceed the limitations
      applicable to charges referred to in subparagraph (B)(i), or
        (iii) total guaranteed basic benefits, but such premium rates
      shall not exceed the rates for additional charges referred to in
      subparagraph (B)(ii).

    If the corporation uses two or more of the rate bases described in
    this subparagraph, the premium rates shall be designed to produce
    approximately equal amounts of aggregate premium revenue from each
    of the rate bases used.
      (D) For purposes of this paragraph, the corporation shall by
    regulation define the terms "value of assets" and "present value of
    the benefits of the plan which are guaranteed" in a manner
    consistent with the purposes of this subchapter and the provisions
    of this section.
      (7) Premium Rate for Certain Terminated Single-Employer Plans. - 
        (A) In general. - If there is a termination of a single-
      employer plan under clause (ii) or (iii) of section
      1341(c)(2)(B) of this title or section 1342 of this title, there
      shall be payable to the corporation, with respect to each
      applicable 12-month period, a premium at a rate equal to $1,250
      multiplied by the number of individuals who were participants in
      the plan immediately before the termination date. Such premium
      shall be in addition to any other premium under this section.
        (B) Special rule for plans terminated in bankruptcy
      reorganization. - In the case of a single-employer plan
      terminated under section 1341(c)(2)(B)(ii) of this title or under
      section 1342 of this title during pendency of any bankruptcy
      reorganization proceeding under chapter 11 of title 11 or under
      any similar law of a State or a political subdivision of a State
      (or a case described in section 1341(c)(2)(B)(i) of this title
      filed by or against such person has been converted, as of such
      date, to such a case in which reorganization is sought),
      subparagraph (A) shall not apply to such plan until the date of
      the discharge or dismissal of such person in such case.
        (C) Applicable 12-month period. - For purposes of subparagraph
      (A) - 
          (i) In general. - The term "applicable 12-month period" means
        - 
            (I) the 12-month period beginning with the first month
          following the month in which the termination date occurs, and
            (II) each of the first two 12-month periods immediately
          following the period described in subclause (I).

          (ii) Plans terminated in bankruptcy reorganization. - In any
        case in which the requirements of subparagraph (B) are met in
        connection with the termination of the plan with respect to 1
        or more persons described in such subparagraph, the 12-month
        period described in clause (i)(I) shall be the 12-month period
        beginning with the first month following the month which
        includes the earliest date as of which each such person is
        discharged or dismissed in the case described in such clause in
        connection with such person.

        (D) Coordination with section 1307. - 
          (i) Notwithstanding section 1307 of this title - 
            (I) premiums under this paragraph shall be due within 30
          days after the beginning of any applicable 12-month period,
          and
            (II) the designated payor shall be the person who is the
          contributing sponsor as of immediately before the termination
          date.

          (ii) The fifth sentence of section 1307(a) of this title
        shall not apply in connection with premiums determined under
        this paragraph.
    (b) Revised schedule; Congressional procedures applicable
      (1) In order to place a revised schedule (other than a schedule
    described in subsection (a)(2)(C), (D), or (E) of this section) in
    effect, the corporation shall transmit the proposed schedule, its
    proposed effective date, and the reasons for its proposal to the
    Committee on Ways and Means and the Committee on Education and
    Labor of the House of Representatives, and to the Committee on
    Finance and the Committee on Labor and Human Resources of the
    Senate.
      (2) The succeeding paragraphs of this subsection are enacted by
    Congress as an exercise of the rulemaking power of the Senate and
    the House of Representatives, respectively, and as such they shall
    be deemed a part of the rules of each House, respectively, but
    applicable only with respect to the procedure to be followed in
    that House in the case of resolutions described in paragraph (3).
    They shall supersede other rules only to the extent that they are
    inconsistent therewith. They are enacted with full recognition of
    the constitutional right of either House to change the rules (so
    far as relating to the procedure of that House) at any time, in the
    same manner and to the same extent as in the case of any rule of
    that House.
      (3) For the purpose of the succeeding paragraphs of this
    subsection, "resolution" means only a joint resolution, the matter
    after the resolving clause of which is as follows: "The proposed
    revised schedule transmitted to Congress by the Pension Benefit
    Guaranty Corporation on __ is hereby approved.", the blank space
    therein being filled with the date on which the corporation's
    message proposing the rate was delivered.
      (4) A resolution shall be referred to the Committee on Ways and
    Means and the Committee on Education and Labor of the House of
    Representatives and to the Committee on Finance and the Committee
    on Labor and Human Resources of the Senate.
      (5) If a committee to which has been referred a resolution has
    not reported it before the expiration of 10 calendar days after its
    introduction, it shall then (but not before) be in order to move to
    discharge the committee from further consideration of that
    resolution, or to discharge the committee from further
    consideration of any other resolution with respect to the proposed
    adjustment which has been referred to the committee. The motion to
    discharge may be made only by a person favoring the resolution,
    shall be highly privileged (except that it may not be made after
    the committee has reported a resolution with respect to the same
    proposed rate), and debate thereon shall be limited to not more
    than 1 hour, to be divided equally between those favoring and those
    opposing the resolution. An amendment to the motion is not in
    order, and it is not in order to move to reconsider the vote by
    which the motion is agreed to or disagreed to. If the motion to
    discharge is agreed to or disagreed to, the motion may not be
    renewed, nor may another motion to discharge the committee be made
    with respect to any other resolution with respect to the same
    proposed rate.
      (6) When a committee has reported, or has been discharged from
    further consideration of a resolution, it is at any time thereafter
    in order (even though a previous motion to the same effect has been
    disagreed to) to move to proceed to the consideration of the
    resolution. The motion is highly privileged and is not debatable.
    An amendment to the motion is not in order, and it is not in order
    to move to reconsider the vote by which the motion is agreed to or
    disagreed to. Debate on the resolution shall be limited to not more
    than 10 hours, which shall be divided equally between those
    favoring and those opposing the resolution. A motion further to
    limit debate is not debatable. An amendment to, or motion to
    recommit, the resolution is not in order, and it is not in order to
    move to reconsider the vote by which the resolution is agreed to or
    disagreed to.
      (7) Motions to postpone, made with respect to the discharge from
    committee, or the consideration of, a resolution and motions to
    proceed to the consideration of other business shall be decided
    without debate. Appeals from the decisions of the Chair relating to
    the application of the rules of the Senate or the House of
    Representatives, as the case may be, to the procedure relating to a
    resolution shall be decided without debate.
    (c) Rates for plans for basic benefits
      (1) Except as provided in subsection (a)(3) of this section, and
    subject to paragraph (2), the rate for all plans for basic benefits
    guaranteed under this subchapter with respect to plan years ending
    after September 2, 1974, is - 
        (A) in the case of each plan which was not a multiemployer plan
      in a plan year - 
          (i) with respect to each plan year beginning before January
        1, 1978, an amount equal to $1 for each individual who was a
        participant in such plan during the plan year,
          (ii) with respect to each plan year beginning after December
        31, 1977, and before January 1, 1986, an amount equal to $2.60
        for each individual who was a participant in such plan during
        the plan year, and (!2)

          (iii) with respect to each plan year beginning after December
        31, 1985, and before January 1, 1988, an amount equal to $8.50
        for each individual who was a participant in such plan during
        the plan year, and
          (iv) with respect to each plan year beginning after December
        31, 1987, and before January 1, 1991, an amount equal to $16
        for each individual who was a participant in such plan during
        the plan year, and

        (B) in the case of each plan which was a multiemployer plan in
      a plan year, an amount equal to 50 cents for each individual who
      was a participant in such plan during the plan year.

      (2) The rate applicable under this subsection for the plan year
    preceding September 1, 1975, is the product of - 
        (A) the rate described in the preceding sentence; and
        (B) a fraction - 
          (i) the numerator of which is the number of calendar months
        in the plan year which ends after September 2, 1974, and before
        the date on which the new plan year commences, and
          (ii) the denominator of which is 12.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4006, Sept. 2, 1974, 88 Stat. 1010;
    Pub. L. 96-364, title I, Sec. 105, Sept. 26, 1980, 94 Stat. 1264;
    Pub. L. 99-272, title XI, Sec. 11005(a)-(c)(3), Apr. 7, 1986, 100
    Stat. 240-242; Pub. L. 100-203, title IX, Sec. 9331(a), (b), (e),
    Dec. 22, 1987, 101 Stat. 1330-367, 1330-368; Pub. L. 101-239, title
    VII, Sec. 7881(h), Dec. 19, 1989, 103 Stat. 2442; Pub. L. 101-508,
    title XII, Sec. 12021(a), (b), Nov. 5, 1990, 104 Stat. 1388-573;
    Pub. L. 103-465, title VII, Sec. 774(a)(1), (b)(1), (2), Dec. 8,
    1994, 108 Stat. 5045, 5046; Pub. L. 107-147, title IV, Sec. 405(c),
    Mar. 9, 2002, 116 Stat. 43; Pub. L. 108-218, title I, Sec.
    101(a)(4), Apr. 10, 2004, 118 Stat. 597; Pub. L. 108-311, title IV,
    Sec. 403(d), Oct. 4, 2004, 118 Stat. 1187; Pub. L. 109-171, title
    VIII, Sec. 8101(a)-(c), Feb. 8, 2006, 120 Stat. 180-182; Pub. L.
    109-280, title III, Sec. 301(a)(3), title IV, Secs. 401(a)(1),
    (b)(1), (2)(A), 405(a), Aug. 17, 2006, 120 Stat. 919, 922, 928.)


-STATAMEND-
                     AMENDMENT OF SUBSECTION (A)(3)(E)                 
      Pub. L. 109-280, title IV, Sec. 401(a), Aug. 17, 2006, 120 Stat.
    922, provided that, applicable with respect to plan years beginning
    after 2007, subsection (a)(3)(E) of this section is amended by
    striking out clauses (iii) and (iv) and by adding new clauses (iii)
    and (iv) to read as follows:
      (iii) For purposes of clause (ii), the term "unfunded vested
    benefits" means, for a plan year, the excess (if any) of - 
        (I) the funding target of the plan as determined under section
      1083(d) of this title for the plan year by only taking into
      account vested benefits and by using the interest rate described
      in clause (iv), over
        (II) the fair market value of plan assets for the plan year
      which are held by the plan on the valuation date.

      (iv) The interest rate used in valuing benefits for purposes of
    subclause (I) of clause (iii) shall be equal to the first, second,
    or third segment rate for the month preceding the month in which
    the plan year begins, which would be determined under section
    1083(h)(2)(C) of this title if section 1083(h)(2)(D) of this title
    were applied by using the monthly yields for the month preceding
    the month in which the plan year begins on investment grade
    corporate bonds with varying maturities and in the top 3 quality
    levels rather than the average of such yields for a 24-month
    period.

-REFTEXT-
                            REFERENCES IN TEXT                        
      The plan year within which the date of enactment of the
    Multiemployer Pension Plan Amendments Act of 1980 falls, referred
    to in subsec. (a)(3)(A)(ii), refers to the plan year within which
    the date of the enactment of Pub. L. 96-364 falls, such enactment
    being approved Sept. 26, 1980.


-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (a)(3)(A)(i). Pub. L. 109-171, Sec. 8101(a)(1)(A),
    substituted "$30" for "$19".
      Subsec. (a)(3)(A)(iii). Pub. L. 109-171, Sec.
    8101(a)(2)(A)(i)(I), inserted "and before January 1, 2006," after
    "September 26, 1980," in introductory provisions.
      Subsec. (a)(3)(A)(iv). Pub. L. 109-171, Sec.
    8101(a)(2)(A)(i)(II), (ii), added cl. (iv).
      Subsec. (a)(3)(B). Pub. L. 109-171, Sec. 8101(c), substituted
    "clause (iii) or (iv) of subparagraph (A)" for "subparagraph
    (A)(iii)".
      Subsec. (a)(3)(E)(i). Pub. L. 109-280, Sec. 405(a)(1),
    substituted "Except as provided in subparagraph (H), the
    additional" for "The additional".
      Subsec. (a)(3)(E)(iii)(V). Pub. L. 109-280, Sec. 301(a)(3),
    substituted "2008" for "2006".
      Subsec. (a)(3)(F). Pub. L. 109-171, Sec. 8101(a)(1)(B), added
    subpar. (F).
      Subsec. (a)(3)(G). Pub. L. 109-171, Sec. 8101(a)(2)(B), added
    subpar. (G).
      Subsec. (a)(3)(H). Pub. L. 109-280, Sec. 405(a)(2), added subpar.
    (H).
      Subsec. (a)(7). Pub. L. 109-171, Sec. 8101(b), added par. (7).
      Subsec. (a)(7)(C)(ii). Pub. L. 109-280, Sec. 401(b)(2)(A),
    substituted "subparagraph (B)" for "subparagraph (B)(i)(I)".
      Subsec. (a)(7)(E). Pub. L. 109-280, Sec. 401(b)(1), struck out
    heading and text of subpar. (E). Text read as follows:
    "Subparagraph (A) shall not apply with respect to any plan
    terminated after December 31, 2010."
      2004-Subsec. (a)(3)(E)(iii)(IV). Pub. L. 108-311, in last
    sentence, inserted "or this subparagraph" after "this clause" in
    two places and inserted "(other than sections 1305, 1310, 1311, and
    1343 of this title)" after "subsections".
      Subsec. (a)(3)(E)(iii)(V). Pub. L. 108-218 added subcl. (V).
      2002 - Subsec. (a)(3)(E)(iii)(IV). Pub. L. 107-147 added subcl.
    (IV).
      1994 - Subsec. (a)(3)(E)(iii). Pub. L. 103-465, Sec. 774(b)(1),
    (2), in subcl. (I), inserted "or (III)" after "subclause (II)", in
    subcl. (II), substituted "equal to the applicable percentage" for
    "equal to 80 percent" and inserted at end "For purposes of this
    subclause, the applicable percentage is 80 percent for plan years
    beginning before July 1, 1997, 85 percent for plan years beginning
    after June 30, 1997, and before the 1st plan year to which the
    first tables prescribed under section 1082(d)(7)(C)(ii)(II) of this
    title apply, and 100 percent for such 1st plan year and subsequent
    plan years.", and added subcl. (III).
      Subsec. (a)(3)(E)(iv), (v). Pub. L. 103-465, Sec. 774(a)(1),
    redesignated cl. (v) as (iv) and struck out former cl. (iv) which
    read as follows:
      "(iv)(I) Except as provided in this clause, the aggregate
    increase in the premium payable with respect to any participant by
    reason of this subparagraph shall not exceed $53.
      "(II) If an employer made contributions to a plan during 1 or
    more of the 5 plan years preceding the 1st plan year to which this
    subparagraph applies in an amount not less than the maximum amount
    allowable as a deduction with respect to such contributions under
    section 404 of title 26, the dollar amount in effect under
    subclause (I) for the 1st 5 plan years to which this subparagraph
    applies shall be reduced by $3 for each plan year for which such
    contributions were made in such amount."
      1990 - Subsec. (a)(3)(A)(i). Pub. L. 101-508, Sec. 12021(a)(1),
    substituted "for plan years beginning after December 31, 1990, an
    amount equal to the sum of $19" for "for plan years beginning after
    December 31, 1987, an amount equal to the sum of $16".
      Subsec. (a)(3)(E)(ii). Pub. L. 101-508, Sec. 12021(b)(1),
    substituted "$9.00" for "$6.00".
      Subsec. (a)(3)(E)(iv)(I). Pub. L. 101-508, Sec. 12021(b)(2),
    substituted "$53" for "$34".
      Subsec. (c)(1)(A)(iv). Pub. L. 101-508, Sec. 12021(a)(2), added
    cl. (iv).
      1989 - Subsec. (a)(3)(E)(v). Pub. L. 101-239, Sec. 7881(h)(1),
    added cl. (v).
      Subsec. (c)(1)(A)(iii). Pub. L. 101-239, Sec. 7881(h)(2),
    realigned margin.
      1987 - Subsec. (a)(3)(A)(i). Pub. L. 100-203, Sec. 9331(a),
    substituted "for plan years beginning after December 31, 1987, an
    amount equal to the sum of $16 plus the additional premium (if any)
    determined under subparagraph (E)" for "for plan years beginning
    after December 31, 1985, an amount equal to $8.50".
      Subsec. (a)(3)(E). Pub. L. 100-203, Sec. 9331(b), added subpar.
    (E).
      Subsec. (c)(1)(A). Pub. L. 100-203, Sec. 9331(e), struck out
    "and" at end of cl. (i), inserted "and before January 1, 1986," in
    cl. (ii), and added cl. (iii).
      1986 - Subsec. (a)(1). Pub. L. 99-272, Sec. 11005(b)(1), struck
    out provision that in establishing annual premiums with respect to
    plans, other than multiemployer plans, pars. (5) and (6) of this
    subsection, as in effect before Sept. 26, 1980, would continue to
    apply.
      Subsec. (a)(2). Pub. L. 99-272, Sec. 11005(c)(1), substituted "a
    joint resolution approving such revised schedule is enacted" for
    "the Congress approves such revised schedule by a concurrent
    resolution".
      Subsec. (a)(3)(A)(i). Pub. L. 99-272, Sec. 11005(a)(1),
    substituted "December 31, 1985, an amount equal to $8.50" for
    "December 31, 1977, an amount equal to $2.60".
      Subsec. (a)(4). Pub. L. 99-272, Sec. 11005(c)(2), substituted
    "the enactment of a joint resolution" for "approval by the
    Congress".
      Subsec. (a)(6). Pub. L. 99-272, Sec. 11005(b)(2), added par. (6).
      Subsec. (b)(3). Pub. L. 99-272, Sec. 11005(c)(3), substituted
    "joint" for "concurrent" and "The" for "That the Congress favors
    the" and inserted "is hereby approved".
      Subsec. (c)(1)(A). Pub. L. 99-272, Sec. 11005(a)(2), amended
    subpar. (A) generally. Prior to amendment, subpar. (A) read as
    follows: "in the case of each plan which was not a multiemployer
    plan in a plan year, an amount equal to $1 for each individual who
    was a participant in such plan during the plan year, and".
      1980 - Subsec. (a). Pub. L. 96-364, Sec. 105(a), substituted
    provisions setting forth authority of corporation to prescribe
    schedules of premium rates and bases for the application of such
    rates and provisions respecting contents, coverages, alternate
    schedules, etc., of schedules and application bases, for provisions
    setting forth authority of corporation to prescribe insurance
    premium rates and coverage schedules for the application of such
    rates and provisions respecting contents, coverages, rates, etc.,
    of schedules and premium rates.
      Subsec. (b). Pub. L. 96-364, Sec. 105(b), in par. (1) substituted
    "(C), (D), or (E)" for "(B) or (C)", "revised schedule" for
    "revised coverage schedule", and "Human Resources" for "Public
    Welfare", in par. (3) substituted "revised schedule" for "revised
    coverage schedule", and in par. (4) substituted "Human Resources"
    for "Public Welfare".
      Subsec. (c). Pub. L. 96-364, Sec. 105(c), added subsec. (c).

-CHANGE-
                              CHANGE OF NAME                          
      Committee on Labor and Human Resources of Senate changed to
    Committee on Health, Education, Labor, and Pensions of Senate by
    Senate Resolution No. 20, One Hundred Sixth Congress, Jan. 19,
    1999.
      Committee on Education and Labor of House of Representatives
    treated as referring to Committee on Economic and Educational
    Opportunities of House of Representatives by section 1(a) of Pub.
    L. 104-14, set out as a note preceding section 21 of Title 2, The
    Congress. Committee on Economic and Educational Opportunities of
    House of Representatives changed to Committee on Education and the
    Workforce of House of Representatives by House Resolution No. 5,
    One Hundred Fifth Congress, Jan. 7, 1997.


-MISC2-
                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Pub. L. 109-280, title IV, Sec. 401(a)(2), Aug. 17, 2006, 120
    Stat. 922, provided that: "The amendments made by paragraph (1)
    [amending this section] shall apply with respect to plan years
    beginning after 2007."
      Pub. L. 109-280, title IV, Sec. 401(b)(2)(B), Aug. 17, 2006, 120
    Stat. 922, provided that: "The amendment made by this paragraph
    [amending this section] shall take effect as if included in the
    provision of the Deficit Reduction Act of 2005 [Pub. L. 109-171] to
    which it relates."
      Pub. L. 109-280, title IV, Sec. 405(b), Aug. 17, 2006, 120 Stat.
    929, provided that: "The amendment made by this section [amending
    this section] shall apply to plan years beginning after December
    31, 2006."
      Pub. L. 109-171, title VIII, Sec. 8101(d), Feb. 8, 2006, 120
    Stat. 182, provided that:
      "(1) In general. - Except as otherwise provided in this
    subsection, the amendments made by this section [amending this
    section] shall apply to plan years beginning after December 31,
    2005.
      "(2) Premium rate for certain terminated single-employer plans. -
    
        "(A) In general. - Except as provided in subparagraph (B), the
      amendment made by subsection (b) [amending this section] shall
      apply to plans terminated after December 31, 2005.
        "(B) Special rule for plans terminated in bankruptcy. - The
      amendment made by subsection (b) shall not apply to a termination
      of a single-employer plan that is terminated during the pendency
      of any bankruptcy reorganization proceeding under chapter 11 of
      title 11, United States Code (or under any similar law of a State
      or political subdivision of a State), if the proceeding is
      pursuant to a bankruptcy filing occurring before October 18,
      2005."

                     EFFECTIVE DATE OF 2004 AMENDMENTS                 
      Amendment by Pub. L. 108-311 effective as if included in the
    provisions of the Job Creation and Worker Assistance Act of 2002,
    Pub. L. 107-147, to which such amendment relates, see section
    403(f) of Pub. L. 108-311, set out as a note under section 56 of
    Title 26, Internal Revenue Code.
      Amendment by Pub. L. 108-218 applicable, except as otherwise
    provided, to plan years beginning after Dec. 31, 2003, see section
    101(d) of Pub. L. 108-218, set out as a note under section 404 of
    Title 26, Internal Revenue Code.

                     EFFECTIVE DATE OF 1994 AMENDMENT                 
      Section 774(a)(2) of Pub. L. 103-465 provided that:
      "(A) In general. - The amendments made by this subsection
    [amending this section] shall be effective for plan years beginning
    on or after July 1, 1994.
      "(B) Transition rule. - In the case of plan years beginning on or
    after July 1, 1994, and before July 1, 1996, the additional premium
    payable with respect to any participant by reason of the amendments
    made by this section shall not exceed the sum of - 
        "(i) $53, and
        "(ii) the product derived by multiplying - 
          "(I) the excess (if any) of the amount determined under
        clause (i) of section 4006(a)(3)(E) of the Employee Retirement
        Income Security Act of 1974 [subsec. (a)(3)(E) of this
        section], over $53, by
          "(II) the applicable percentage.
    For purposes of this subparagraph, the applicable percentage shall
    be the percentage specified in the following table:


             For the plan year beginning:               The applicable  
                                                        percentage is:  

         on or after               but before     
    --------------------------------------------------------------------
    July 1, 1994             July 1, 1995                     20 percent
    July 1, 1995             July 1, 1996                   60 percent."
    --------------------------------------------------------------------

      Section 774(b)(3) of Pub. L. 103-465 provided that: "The
    amendments made by this subsection [amending this section] shall
    apply to plan years beginning after the date of the enactment of
    this Act [Dec. 8, 1994].

                     EFFECTIVE DATE OF 1990 AMENDMENT                 
      Section 12021(c) of Pub. L. 101-508 provided that: "The
    amendments made by this section [amending this section] shall apply
    to plan years beginning after December 31, 1990."

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by Pub. L. 101-239 effective, except as otherwise
    provided, as if included in the provision of the Pension Protection
    Act, Pub. L. 100-203, Secs. 9302-9346, to which such amendment
    relates, see section 7882 of Pub. L. 101-239, set out as a note
    under section 401 of Title 26, Internal Revenue Code.

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Amendment by Pub. L. 100-203 applicable to plan years beginning
    after Dec. 31, 1987, see section 9331(f)(1) of Pub. L. 100-203, set
    out as a note under section 1305 of this title.

                     EFFECTIVE DATE OF 1986 AMENDMENT                 
      Section 11005(d) of Pub. L. 99-272 provided that:
      "(1) General rule. - Except as provided in paragraph (2), the
    amendments made by this section [amending this section and section
    1322a of this title] shall be effective for plan years commencing
    after December 31, 1985.
      "(2) Special rule. - The amendments made by subsection (b)
    [amending this section] shall be effective as of the date of the
    enactment of the Multiemployer Pension Plan Amendments Act of 1980
    [Sept. 26, 1980]."

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
       Amendment by Pub. L. 96-364 effective Sept. 26, 1980, except as
    specifically provided, see section 1461(e) of this title.

      MODIFICATION OF TRANSITION RULE TO PENSION FUNDING REQUIREMENTS  
      For modification of transition rule to pension funding
    requirements in the case of a plan that was not required to pay a
    variable rate premium for the plan year beginning in 1996, has not,
    in any plan year beginning after 1995, merged with another plan
    (other than a plan sponsored by an employer that was in 1996 within
    the controlled group of the plan sponsor), and is sponsored by a
    company that is engaged primarily in the interurban or interstate
    passenger bus service, see section 115(a)-(c) of Pub. L. 109-280,
    set out as a note under section 430 of Title 26, Internal Revenue
    Code.

       APPLICABILITY OF THIS SECTION TO CERTAIN PLANS MAINTAINED BY
                            COMMERCIAL AIRLINES
      For special rules on applicability of this section to certain
    plans maintained by commercial airlines, see section 402 of Pub. L.
    109-280, set out as a note under section 430 of Title 26, Internal
    Revenue Code.

                             TRANSITIONAL RULE                         
      Section 774(c) of Pub. L. 103-465 provided that: "In the case of
    a regulated public utility described in section 7701(a)(33)(A)(i)
    of the Internal Revenue Code of 1986 [26 U.S.C. 7701(a)(33)(A)(i)],
    the amendments made by this section [amending this section] shall
    not apply to plan years beginning before the earlier of - 
        "(1) January 1, 1998, or
        "(2) the date the regulated public utility begins to collect
      from utility customers rates that reflect the costs incurred or
      projected to be incurred for additional premiums under section
      4006(a)(3)(E) of the Employee Retirement Income Security Act of
      1974 [subsec. (a)(3)(E) of this section] pursuant to final and
      nonappealable determinations by all public utility commissions
      (or other authorities having jurisdiction over the rates and
      terms of service by the regulated public utility) that the costs
      are just and reasonable and recoverable from customers of the
      regulated public utility."
      Section 11005(e) of Pub. L. 99-272 provided that:
      "(1) Notice of premium increase. - Not later than 30 days after
    the date of the enactment of this Act [Apr. 7, 1986], the Pension
    Benefit Guaranty Corporation shall send a notice to the plan
    administrator of each single-employer plan affected by the premium
    increase established by the amendment made by subsection (a)(1)
    [amending this section]. Such notice shall describe such increase
    and the requirements of this subsection.
      "(2) Due date for unpaid premiums. - With respect to any plan
    year beginning during the period beginning on January 1, 1986, and
    ending 30 days after the date of the enactment of this Act, any
    unpaid amount of such premium increase shall be due and payable no
    later than the earlier of 60 days after the date of the enactment
    of this Act or 30 days after the date on which the notice required
    by paragraph (1) is sent, except that in no event shall the amount
    of the premium increase established under the amendment made by
    subsection (a)(1) be due and payable for a plan year earlier than
    the date on which premiums for the plan would have been due for
    such plan year had this Act [probably means the Single-Employee
    Pension Plan Amendments Act of 1986, title XI of Pub. L. 99-272,
    see Short Title of 1986 Amendment note set out under section 1001
    of this title] not been enacted.
      "(3) Enforcement. - For purposes of enforcement, the requirements
    of paragraphs (1) and (2) shall be considered to be requirements of
    sections 4006 and 4007 of the Employee Retirement Income Security
    Act of 1974 (29 U.S.C. 1306 and 1307)."

     SINGLE-EMPLOYER PENSION PLAN TERMINATION INSURANCE PREMIUM STUDY 
      Section 11017(a) of Pub. L. 99-272 directed Pension Benefit
    Guaranty Corporation to conduct a study of, and submit to an
    advisory council not later than one year after Apr. 7, 1986, a
    report on the premiums established under the single-employer
    pension plan termination insurance program under this subchapter,
    including (1) the long-term stability of the program, (2)
    alternatives with respect to proposals for changes in the premium
    levels under such program, (3) methods currently used in projecting
    future costs, (4) alternative methods of projecting such future
    costs, (5) methods currently used in determining premiums needed to
    allocate and adequately fund such future costs, along with any
    alternative methods of making such premium determinations, and (6)
    alternative premium bases upon which some or all of such projected
    future costs would be allocated on an exposure-related or risk-
    related computation; and further provided for submission of the
    advisory council's report to Congress 180 days after submission of
    the Corporation's report to the advisory council, as well as the
    cooperation and consultation with other Federal agencies in
    compilation of reports.

    STUDIES AND REPORTS RESPECTING GRADUATED PREMIUM RATE SCHEDULES AND
        UNION MANDATED WITHDRAWALS FROM MULTIEMPLOYER PENSION PLANS
      Section 412(a) of Pub. L. 96-364 directed Pension Benefit
    Guaranty Corporation to conduct a separate study with respect to
    advantages and disadvantages of establishing a graduated premium
    rate schedule under this section which is based on risk, and
    necessity of adopting special rules in cases of union-mandated
    withdrawal from multiemployer pension plans, and to report to
    Congress the results of the studies conducted, including its
    recommendations with respect thereto.

-FOOTNOTE-               

    (!1) So in original. The semicolon probably should be a comma.

               

    (!2) So in original. The word "and" probably should not appear.


-End-



-CITE-
    29 USC Sec. 1307                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle A - Pension Benefit Guaranty Corporation

-HEAD-
    Sec. 1307. Payment of premiums

-STATUTE-
    (a) Premiums payable when due; accrual; waiver or reduction
      The designated payor of each plan shall pay the premiums imposed
    by the corporation under this subchapter with respect to that plan
    when they are due. Premiums under this subchapter are payable at
    the time, and on an estimated, advance, or other basis, as
    determined by the corporation. Premiums imposed by this subchapter
    on September 2, 1974 (applicable to that portion of any plan year
    during which such date occurs) are due within 30 days after such
    date. Premiums imposed by this subchapter on the first plan year
    commencing after September 2, 1974, are due within 30 days after
    such plan year commences. Premiums shall continue to accrue until a
    plan's assets are distributed pursuant to a termination procedure,
    or until a trustee is appointed pursuant to section 1342 of this
    title, whichever is earlier. The corporation may waive or reduce
    premiums for a multiemployer plan for any plan year during which
    such plan receives financial assistance from the corporation under
    section 1431 of this title, except that any amount so waived or
    reduced shall be treated as financial assistance under such
    section.
    (b) Late payment charge; waiver; interest on overpayment
      (1) If any basic benefit premium is not paid when it is due the
    corporation is authorized to assess a late payment charge of not
    more than 100 percent of the premium payment which was not timely
    paid. The preceding sentence shall not apply to any payment of
    premium made within 60 days after the date on which payment is due,
    if before such date, the designated payor obtains a waiver from the
    corporation based upon a showing of substantial hardship arising
    from the timely payment of the premium. The corporation is
    authorized to grant a waiver under this subsection upon application
    made by the designated payor, but the corporation may not grant a
    waiver if it appears that the designated payor will be unable to
    pay the premium within 60 days after the date on which it is due.
    If any premium is not paid by the last date prescribed for a
    payment, interest on the amount of such premium at the rate imposed
    under section 6601(a) of title 26 (relating to interest on
    underpayment, nonpayment, or extensions of time for payment of tax)
    shall be paid for the period from such last date to the date paid.
      (2) The corporation is authorized to pay, subject to regulations
    prescribed by the corporation, interest on the amount of any
    overpayment of premium refunded to a designated payor. Interest
    under this paragraph shall be calculated at the same rate and in
    the same manner as interest is calculated for underpayments under
    paragraph (1).
    (c) Civil action to recover premium penalty and interest
      If any designated payor fails to pay a premium when due, the
    corporation is authorized to bring a civil action in any district
    court of the United States within the jurisdiction of which the
    plan assets are located, the plan is administered, or in which a
    defendant resides or is found for the recovery of the amount of the
    premium penalty, and interest, and process may be served in any
    other district. The district courts of the United States shall have
    jurisdiction over actions brought under this subsection by the
    corporation without regard to the amount in controversy.
    (d) Basic benefits guarantee not stopped by designated payor's
      failure to pay premiums when due
      The corporation shall not cease to guarantee basic benefits on
    account of the failure of a designated payor to pay any premium
    when due.
    (e) Designated payor
      (1) For purposes of this section, the term "designated payor"
    means - 
        (A) the contributing sponsor or plan administrator in the case
      of a single-employer plan, and
        (B) the plan administrator in the case of a multiemployer plan.

      (2) If the contributing sponsor of any single-employer plan is a
    member of a controlled group, each member of such group shall be
    jointly and severally liable for any premiums required to be paid
    by such contributing sponsor. For purposes of the preceding
    sentence, the term "controlled group" means any group treated as a
    single employer under subsection (b), (c), (m), or (o) of section
    414 of title 26.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4007, Sept. 2, 1974, 88 Stat. 1013;
    Pub. L. 96-364, title IV, Secs. 402(a)(3), 403(b), Sept. 26, 1980,
    94 Stat. 1298, 1300; Pub. L. 100-203, title IX, Sec. 9331(c), Dec.
    22, 1987, 101 Stat. 1330-368; Pub. L. 101-239, title VII, Sec.
    7891(a)(1), Dec. 19, 1989, 103 Stat. 2445; Pub. L. 109-280, title
    IV, Sec. 406(a), Aug. 17, 2006, 120 Stat. 929.)


-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (b). Pub. L. 109-280 designated existing
    provisions as par. (1) and added par. (2).
      1989 - Subsec. (b). Pub. L. 101-239 substituted "Internal Revenue
    Code of 1986" for "Internal Revenue Code of 1954", which for
    purposes of codification was translated as "title 26" thus
    requiring no change in text.
      1987 - Subsecs. (a) to (d). Pub. L. 100-203, Sec. 9331(c)(1),
    substituted "designated payor" for "plan administrator" wherever
    appearing.
      Subsec. (e). Pub. L. 100-203, Sec. 9331(c)(2), added subsec. (e).
      1980 - Subsec. (a). Pub. L. 96-364 inserted provisions relating
    to waiver or reduction of premiums, and struck out provisions
    relating to payment of premiums under statutory requirements
    respecting contingent liability coverage.

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Pub. L. 109-280, title IV, Sec. 406(b), Aug. 17, 2006, 120 Stat.
    929, provided that: "The amendments made by subsection (a)
    [amending this section] shall apply to interest accruing for
    periods beginning not earlier than the date of the enactment of
    this Act [Aug. 17, 2006]."

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by Pub. L. 101-239 effective, except as otherwise
    provided, as if included in the provision of the Tax Reform Act of
    1986, Pub. L. 99-514, to which such amendment relates, see section
    7891(f) of Pub. L. 101-239, set out as a note under section 1002 of
    this title.

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Amendment by Pub. L. 100-203 applicable to plan years beginning
    after Dec. 31, 1987, see section 9331(f)(1) of Pub. L. 100-203, set
    out as a note under section 1305 of this title.

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-364 effective Sept. 26, 1980, except as
    specifically provided, see section 1461(e) of this title.

-End-



-CITE-
    29 USC Sec. 1308                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle A - Pension Benefit Guaranty Corporation

-HEAD-
    Sec. 1308. Annual report by the corporation

-STATUTE-
      (a) As soon as practicable after the close of each fiscal year
    the corporation shall transmit to the President and the Congress a
    report relative to the conduct of its business under this
    subchapter for that fiscal year. The report shall include financial
    statements setting forth the finances of the corporation at the end
    of such fiscal year and the result of its operations (including the
    source and application of its funds) for the fiscal year and shall
    include an actuarial evaluation of the expected operations and
    status of the funds established under section 1305 of this title
    for the next five years (including a detailed statement of the
    actuarial assumptions and methods used in making such evaluation).
      (b) The report under subsection (a) shall include - 
        (1) a summary of the Pension Insurance Modeling System
      microsimulation model, including the specific simulation
      parameters, specific initial values, temporal parameters, and
      policy parameters used to calculate the financial statements for
      the corporation;
        (2) a comparison of - 
          (A) the average return on investments earned with respect to
        assets invested by the corporation for the year to which the
        report relates; and
          (B) an amount equal to 60 percent of the average return on
        investment for such year in the Standard & Poor's 500 Index,
        plus 40 percent of the average return on investment for such
        year in the Lehman Aggregate Bond Index (or in a similar fixed
        income index); and

        (3) a statement regarding the deficit or surplus for such year
      that the corporation would have had if the corporation had earned
      the return described in paragraph (2)(B) with respect to assets
      invested by the corporation.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4008, Sept. 2, 1974, 88 Stat. 1014;
    Pub. L. 109-280, title IV, Sec. 412, Aug. 17, 2006, 120 Stat. 936.)


-MISC1-
                                AMENDMENTS                            
      2006 - Pub. L. 109-280 designated existing provisions as subsec.
    (a) and added subsec. (b).

-End-



-CITE-
    29 USC Sec. 1309                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle A - Pension Benefit Guaranty Corporation

-HEAD-
    Sec. 1309. Portability assistance

-STATUTE-
      The corporation shall provide advice and assistance to
    individuals with respect to evaluating the economic desirability of
    establishing individual retirement accounts or other forms of
    individual retirement savings for which a deduction is allowable
    under section 219 of title 26 and with respect to evaluating the
    desirability, in particular cases, of transferring amounts
    representing an employee's interest in a qualified plan to such an
    account upon the employee's separation from service with an
    employer.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4009, Sept. 2, 1974, 88 Stat. 1014;
    Pub. L. 101-239, title VII, Sec. 7891(a)(1), Dec. 19, 1989, 103
    Stat. 2445.)


-MISC1-
                                AMENDMENTS                            
      1989 - Pub. L. 101-239 substituted "Internal Revenue Code of
    1986" for "Internal Revenue Code of 1954", which for purposes of
    codification was translated as "title 26" thus requiring no change
    in text.

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by Pub. L. 101-239 effective, except as otherwise
    provided, as if included in the provision of the Tax Reform Act of
    1986, Pub. L. 99-514, to which such amendment relates, see section
    7891(f) of Pub. L. 101-239, set out as a note under section 1002 of
    this title.

-End-



-CITE-
    29 USC Sec. 1310                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle A - Pension Benefit Guaranty Corporation

-HEAD-
    Sec. 1310. Authority to require certain information

-STATUTE-
    (a) Information required
      Each person described in subsection (b) of this section shall
    provide the corporation annually, on or before a date specified by
    the corporation in regulations, with - 
        (1) such records, documents, or other information that the
      corporation specifies in regulations as necessary to determine
      the liabilities and assets of plans covered by this subchapter;
      and
        (2) copies of such person's audited (or, if unavailable,
      unaudited) financial statements, and such other financial
      information as the corporation may prescribe in regulations.
    (b) Persons required to provide information
      The persons covered by subsection (a) of this section are each
    contributing sponsor, and each member of a contributing sponsor's
    controlled group, of a single-employer plan covered by this
    subchapter, if - 
        (1) the aggregate unfunded vested benefits at the end of the
      preceding plan year (as determined under section
      1306(a)(3)(E)(iii) of this title) of plans maintained by the
      contributing sponsor and the members of its controlled group
      exceed $50,000,000 (disregarding plans with no unfunded vested
      benefits);
        (2) the conditions for imposition of a lien described in
      section 1082(f)(1)(A) and (B) of this title or section
      412(n)(1)(A) and (B) of title 26 have been met with respect to
      any plan maintained by the contributing sponsor or any member of
      its controlled group; or
        (3) minimum funding waivers in excess of $1,000,000 have been
      granted with respect to any plan maintained by the contributing
      sponsor or any member of its controlled group, and any portion
      thereof is still outstanding.
    (c) Information exempt from disclosure requirements
      Any information or documentary material submitted to the
    corporation pursuant to this section shall be exempt from
    disclosure under section 552 of title 5, and no such information or
    documentary material may be made public, except as may be relevant
    to any administrative or judicial action or proceeding. Nothing in
    this section is intended to prevent disclosure to either body of
    Congress or to any duly authorized committee or subcommittee of the
    Congress.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4010, as added Pub. L. 103-465,
    title VII, Sec. 772(a), Dec. 8, 1994, 108 Stat. 5044; amended Pub.
    L. 109-280, title I, Sec. 107(b)(3), title V, Sec. 505(a), (b),
    Aug. 17, 2006, 120 Stat. 819, 946.)


-STATAMEND-
                           AMENDMENT OF SECTION                       
      Pub. L. 109-280, title I, Sec. 107(b)(3), (e), Aug. 17, 2006, 120
    Stat. 819, 820, provided that, applicable to plan years beginning
    after 2007, subsection (b)(2) of this section is amended by
    substituting "1083(k)(1)(A) and (B)" for "1082(f)(1)(A) and (B)"
    and "430(k)(1)(A) and (B)" for "412(n)(1)(A) and (B)".
      Pub. L. 109-280, title V, Sec. 505, Aug. 17, 2006, 120 Stat. 946,
    provided that, applicable with respect to years beginning after
    2007, this section is amended as follows:
      (1) in subsection (b), by striking out paragraph (1) and by
    adding a new paragraph (1) to read as follows:
      "(1) the funding target attainment percentage (as defined in
    subsection (d)) at the end of the preceding plan year of a plan
    maintained by the contributing sponsor or any member of its
    controlled group is less than 80 percent;" and
      (2) by adding subsections (d) and (e) to read as follows:
    (d) Additional information required
      (1) In general
        The information submitted to the corporation under subsection
      (a) shall include - 
          (A) the amount of benefit liabilities under the plan
        determined using the assumptions used by the corporation in
        determining liabilities;
          (B) the funding target of the plan determined as if the plan
        has been in at-risk status for at least 5 plan years; and
          (C) the funding target attainment percentage of the plan.
      (2) Definitions
        For purposes of this subsection:
        (A) Funding target
          The term "funding target" has the meaning provided under
        section 1083(d)(1) of this title.
        (B) Funding target attainment percentage
          The term "funding target attainment percentage" has the
        meaning provided under section 1082(d)(2) of this title.
        (C) At-risk status
          The term "at-risk status" has the meaning provided in section
        1083(i)(4) of this title.
    (e) Notice to Congress
      The corporation shall, on an annual basis, submit to the
    Committee on Health, Education, Labor, and Pensions and the
    Committee on Finance of the Senate and the Committee on Education
    and the Workforce and the Committee on Ways and Means of the House
    of Representatives, a summary report in the aggregate of the
    information submitted to the corporation under this section.


-MISC1-
                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Amendment by section 107(b)(3) of Pub. L. 109-280 applicable to
    plan years beginning after 2007, see section 107(e) of Pub. L. 109-
    280, set out as a note under section 1021 of this title.
      Pub. L. 109-280, title V, Sec. 505(c), Aug. 17, 2006, 120 Stat.
    946, provided that: "The amendments made by this section [amending
    this section] shall apply with respect to years beginning after
    2007."

                              EFFECTIVE DATE                          
      Section 772(c) of Pub. L. 103-465 provided that: "The amendments
    made by this section [enacting this section] shall be effective on
    the date of enactment of this Act [Dec. 8, 1994]."

    APPLICABILITY OF AMENDMENTS BY SUBTITLES A AND B OF TITLE I OF PUB.
                                L. 109-280
      For special rules on applicability of amendments by subtitles A
    (Secs. 101-107) and B (Secs. 111-116) of title I of Pub. L. 109-280
    to certain eligible cooperative plans, PBGC settlement plans, and
    eligible government contractor plans, see sections 104, 105, and
    106 of Pub. L. 109-280, set out as notes under section 401 of Title
    26, Internal Revenue Code.

-End-



-CITE-
    29 USC Sec. 1311                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle A - Pension Benefit Guaranty Corporation

-HEAD-
    Sec. 1311. Repealed.

-MISC1-
    Sec. 1311. Repealed. Pub. L. 109-280, title V, Sec. 501(b)(1), Aug.
      17, 2006, 120 Stat. 939.
      Section, Pub. L. 93-406, title IV, Sec. 4011, as added Pub. L.
    103-465, title VII, Sec. 775(a), Dec. 8, 1994, 108 Stat. 5046,
    related to notice to participants of plan's funding status and
    limitations on corporation's guaranty.

                         EFFECTIVE DATE OF REPEAL                     
      Repeal applicable to plan years beginning after Dec. 31, 2006,
    see section 501(d)(1) of Pub. L. 109-280, set out as an Effective
    Date of 2006 Amendment note under section 1021 of this title.

-End-


-CITE-
    29 USC Subtitle B - Coverage                                01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle B - Coverage

-HEAD-
                           SUBTITLE B - COVERAGE                       

-End-



-CITE-
    29 USC Sec. 1321                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle B - Coverage

-HEAD-
    Sec. 1321. Coverage

-STATUTE-
    (a) Plans covered
      Except as provided in subsection (b) of this section, this
    subchapter applies to any plan (including a successor plan) which,
    for a plan year - 
        (1) is an employee pension benefit plan (as defined in
      paragraph (2) of section 1002 of this title) established or
      maintained - 
          (A) by an employer engaged in commerce or in any industry or
        activity affecting commerce, or
          (B) by any employee organization, or organization
        representing employees, engaged in commerce or in any industry
        or activity affecting commerce, or
          (C) by both,

      which has, in practice, met the requirements of part I of
      subchapter D of chapter 1 of title 26 (as in effect for the
      preceding 5 plan years of the plan) applicable to the plans
      described in paragraph (2) for the preceding 5 plan years; or
        (2) is, or has been determined by the Secretary of the Treasury
      to be, a plan described in section 401(a) of title 26, or which
      meets, or has been determined by the Secretary of the Treasury to
      meet, the requirements of section 404(a)(2) of title 26.

    For purposes of this subchapter, a successor plan is considered to
    be a continuation of a predecessor plan. For this purpose, unless
    otherwise specifically indicated in this subchapter, a successor
    plan is a plan which covers a group of employees which includes
    substantially the same employees as a previously established plan,
    and provides substantially the same benefits as that plan provided.
    (b) Plans not covered
      This section does not apply to any plan - 
        (1) which is an individual account plan, as defined in
      paragraph (34) of section 1002 of this title,(!1)

        (2) established and maintained for its employees by the
      Government of the United States, by the government of any State
      or political subdivision thereof, or by any agency or
      instrumentality of any of the foregoing, or to which the Railroad
      Retirement Act of 1935 or 1937 [45 U.S.C. 231 et seq.] applies
      and which is financed by contributions required under that Act,
      or which is described in the last sentence of section 1002(32) of
      this title (!2)

        (3) which is a church plan as defined in section 414(e) of
      title 26, unless that plan has made an election under section
      410(d) of title 26, and has notified the corporation in
      accordance with procedures prescribed by the corporation, that it
      wishes to have the provisions of this part apply to it,(!1)
        (4)(A) established and maintained by a society, order, or
      association described in section 501(c)(8) or (9) of title 26, if
      no part of the contributions to or under the plan is made by
      employers of participants in the plan, or
        (B) of which a trust described in section 501(c)(18) of title
      26 is a part;
        (5) which has not at any time after September 2, 1974, provided
      for employer contributions;
        (6) which is unfunded and which is maintained by an employer
      primarily for the purpose of providing deferred compensation for
      a select group of management or highly compensated employees;
        (7) which is established and maintained outside of the United
      States primarily for the benefit of individuals substantially all
      of whom are nonresident aliens;
        (8) which is maintained by an employer solely for the purpose
      of providing benefits for certain employees in excess of the
      limitations on contributions and benefits imposed by section 415
      of title 26 on plans to which that section applies, without
      regard to whether the plan is funded, and, to the extent that a
      separable part of a plan (as determined by the corporation)
      maintained by an employer is maintained for such purpose, that
      part shall be treated for purposes of this subchapter, as a
      separate plan which is an excess benefit plan;
        (9) which is established and maintained exclusively for
      substantial owners;
        (10) of an international organization which is exempt from
      taxation under the International Organizations Immunities Act [22
      U.S.C. 288 et seq.];
        (11) maintained solely for the purpose of complying with
      applicable workmen's compensation laws or unemployment
      compensation or disability insurance laws;
        (12) which is a defined benefit plan, to the extent that it is
      treated as an individual account plan under paragraph (35)(B) of
      section 1002 of this title;
        (13) established and maintained by a professional service
      employer which does not at any time after September 2, 1974, have
      more than 25 active participants in the plan; or
        (14) established and maintained by an Indian tribal government
      (as defined in section 7701(a)(40) of title 26), a subdivision of
      an Indian tribal government (determined in accordance with
      section 7871(d) of title 26), or an agency or instrumentality of
      either, and all of the participants of which are employees of
      such entity substantially all of whose services as such an
      employee are in the performance of essential governmental
      functions but not in the performance of commercial activities
      (whether or not an essential government function).
    (c) Definitions
      (1) For purposes of subsection (b)(1) of this section, the term
    "individual account plan" does not include a plan under which a
    fixed benefit is promised if the employer or his representative
    participated in the determination of that benefit.
      (2) For purposes of this paragraph and for purposes of subsection
    (b)(13) of this section - 
        (A) the term "professional service employer" means any
      proprietorship, partnership, corporation, or other association or
      organization (i) owned or controlled by professional individuals
      or by executors or administrators of professional individuals,
      (ii) the principal business of which is the performance of
      professional services, and
        (B) the term "professional individuals" includes but is not
      limited to, physicians, dentists, chiropractors, osteopaths,
      optometrists, other licensed practitioners of the healing arts,
      attorneys at law, public accountants, public engineers,
      architects, draftsmen, actuaries, psychologists, social or
      physical scientists, and performing artists.

      (3) In the case of a plan established and maintained by more than
    one professional service employer, the plan shall not be treated as
    a plan described in subsection (b)(13) of this section if, at any
    time after September 2, 1974, the plan has more than 25 active
    participants.
    (d) Substantial owner defined
      For purposes of subsection (b)(9), the term "substantial owner"
    means an individual who, at any time during the 60-month period
    ending on the date the determination is being made - 
        (1) owns the entire interest in an unincorporated trade or
      business,
        (2) in the case of a partnership, is a partner who owns,
      directly or indirectly, more than 10 percent of either the
      capital interest or the profits interest in such partnership, or
        (3) in the case of a corporation, owns, directly or indirectly,
      more than 10 percent in value of either the voting stock of that
      corporation or all the stock of that corporation.

    For purposes of paragraph (3), the constructive ownership rules of
    section 1563(e) of title 26 (other than paragraph (3)(C) thereof)
    shall apply, including the application of such rules under section
    414(c) of title 26.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4021, Sept. 2, 1974, 88 Stat. 1014;
    Pub. L. 96-364, title IV, Sec. 402(a)(4), Sept. 26, 1980, 94 Stat.
    1298; Pub. L. 101-239, title VII, Secs. 7891(a)(1), 7894(g)(3)(A),
    Dec. 19, 1989, 103 Stat. 2445, 2451; Pub. L. 109-280, title IV,
    Sec. 407(c)(1), title IX, Sec. 906(a)(2)(B), (b)(2), Aug. 17, 2006,
    120 Stat. 930, 1051, 1052.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Railroad Retirement Act of 1935 or 1937, referred to in
    subsec. (b)(2), means act Aug. 29, 1935, ch. 812, 49 Stat. 967,
    known as the Railroad Retirement Act of 1935. The Railroad
    Retirement Act of 1935 was amended generally by act June 24, 1937,
    ch. 382, part I, 50 Stat. 307, and was known as the Railroad
    Retirement Act of 1937. The Railroad Retirement Act of 1937 was
    amended generally and redesignated the Railroad Retirement Act of
    1974 by Pub. L. 93-445, title I, Oct. 16, 1974, 88 Stat. 1305, and
    is classified generally to subchapter IV (Sec. 231 et seq.) of
    chapter 9 of Title 45, Railroads. For complete classification of
    this Act to the Code, see Tables.
      The International Organizations Immunities Act, referred to in
    subsec. (b)(10), is title I of act Dec. 29, 1945, ch. 652, 59 Stat.
    669, as amended, which is classified principally to subchapter
    XVIII (Sec. 288 et seq.) of chapter 7 of Title 22, Foreign
    Relations and Intercourse. For complete classification of this Act
    to the Code, see Short Title note set out under section 288 of
    Title 22 and Tables.


-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (b)(2). Pub. L. 109-280, Sec. 906(a)(2)(B),
    inserted "or which is described in the last sentence of section
    1002(32) of this title" at end.
      Subsec. (b)(9). Pub. L. 109-280, Sec. 407(c)(1)(A), struck out
    "as defined in section 1322(b)(6) of this title" before semicolon
    at end.
      Subsec. (b)(14). Pub. L. 109-280, Sec. 906(b)(2), added par.
    (14).
      Subsec. (d). Pub. L. 109-280, Sec. 407(c)(1)(B), added subsec.
    (d).
      1989 - Subsec. (a). Pub. L. 101-239, Sec. 7894(g)(3)(A),
    substituted "this subchapter applies" for "this section applies" in
    introductory provisions.
      Subsecs. (a)(1), (2), (b)(3), (4)(A), (8). Pub. L. 101-239, Sec.
    7891(a)(1), substituted "Internal Revenue Code of 1986" for
    "Internal Revenue Code of 1954", which for purposes of codification
    was translated as "title 26" thus requiring no change in text.
      1980 - Subsec. (a). Pub. L. 96-364 inserted "unless otherwise
    specifically indicated in this subchapter," after "For this
    purpose,".

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Pub. L. 109-280, title IV, Sec. 407(d), Aug. 17, 2006, 120 Stat.
    931, provided that:
      "(1) In general. - Except as provided in paragraph (2), the
    amendments made by this section [amending this section and sections
    1322, 1343, and 1344 of this title] shall apply to plan
    terminations - 
        "(A) under section 4041(c) of the Employee Retirement Income
      Security Act of 1974 (29 U.S.C. 1341(c)) with respect to which
      notices of intent to terminate are provided under section
      4041(a)(2) of such Act (29 U.S.C. 1341(a)(2)) after December 31,
      2005, and
        "(B) under section 4042 of such Act (29 U.S.C. 1342) with
      respect to which notices of determination are provided under such
      section after such date.
      "(2) Conforming amendments. - The amendments made by subsection
    (c) [amending this section and section 1343 of this title] shall
    take effect on January 1, 2006."
      Amendment by section 906(a)(2)(B), (b)(2) of Pub. L. 109-280
    applicable to any year beginning on or after Aug. 17, 2006, see
    section 906(c) of Pub. L. 109-280, set out as a note under section
    414 of Title 26, Internal Revenue Code.

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by section 7891(a)(1) of Pub. L. 101-239 effective,
    except as otherwise provided, as if included in the provision of
    the Tax Reform Act of 1986, Pub. L. 99-514, to which such amendment
    relates, see section 7891(f) of Pub. L. 101-239, set out as a note
    under section 1002 of this title.
      Amendment by section 7894(g)(3)(A) of Pub. L. 101-239 effective,
    except as otherwise provided, as if originally included in the
    provision of the Employee Retirement Income Security Act of 1974,
    Pub. L. 93-406, to which such amendment relates, see section
    7894(i) of Pub. L. 101-239, set out as a note under section 1002 of
    this title.

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-364 effective Sept. 26, 1980, except as
    specifically provided, see section 1461(e) of this title.

-FOOTNOTE-               

    (!1) So in original. The comma probably should be a semicolon.

               

    (!2) So in original. A semicolon probably should appear.


-End-



-CITE-
    29 USC Sec. 1322                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle B - Coverage

-HEAD-
    Sec. 1322. Single-employer plan benefits guaranteed

-STATUTE-
    (a) Nonforfeitable benefits
      Subject to the limitations contained in subsection (b) of this
    section, the corporation shall guarantee, in accordance with this
    section, the payment of all nonforfeitable benefits (other than
    benefits becoming nonforfeitable solely on account of the
    termination of a plan) under a single-employer plan which
    terminates at a time when this subchapter applies to it.
    (b) Exceptions
      (1) Except to the extent provided in paragraph (7) - 
        (A) no benefits provided by a plan which has been in effect for
      less than 60 months at the time the plan terminates shall be
      guaranteed under this section, and
        (B) any increase in the amount of benefits under a plan
      resulting from a plan amendment which was made, or became
      effective, whichever is later, within 60 months before the date
      on which the plan terminates shall be disregarded.

      (2) For purposes of this subsection, the time a successor plan
    (within the meaning of section 1321(a) of this title) has been in
    effect includes the time a previously established plan (within the
    meaning of section 1321(a) of this title) was in effect. For
    purposes of determining what benefits are guaranteed under this
    section in the case of a plan to which section 1321 of this title
    does not apply on September 3, 1974, the 60-month period referred
    to in paragraph (1) shall be computed beginning on the first date
    on which such section does apply to the plan.
      (3) The amount of monthly benefits described in subsection (a) of
    this section provided by a plan, which are guaranteed under this
    section with respect to a participant, shall not have an actuarial
    value which exceeds the actuarial value of a monthly benefit in the
    form of a life annuity commencing at age 65 equal to the lesser of -
     
        (A) his average monthly gross income from his employer during
      the 5 consecutive calendar year period (or, if less, during the
      number of calendar years in such period in which he actively
      participates in the plan) during which his gross income from that
      employer was greater than during any other such period with that
      employer determined by dividing  1/12  of the sum of all such
      gross income by the number of such calendar years in which he had
      such gross income, or
        (B) $750 multiplied by a fraction, the numerator of which is
      the contribution and benefit base (determined under section 230
      of the Social Security Act [42 U.S.C. 430]) in effect at the time
      the plan terminates and the denominator of which is such
      contribution and benefit base in effect in calendar year 1974.

    The provisions of this paragraph do not apply to non-basic
    benefits. The maximum guaranteed monthly benefit shall not be
    reduced solely on account of the age of a participant in the case
    of a benefit payable by reason of disability that occurred on or
    before the termination date, if the participant demonstrates to the
    satisfaction of the corporation that the Social Security
    Administration has determined that the participant satisfies the
    definition of disability under title II or XVI of the Social
    Security Act [42 U.S.C. 401 et seq.; 1381 et seq.], and the
    regulations thereunder. If a benefit payable by reason of
    disability is converted to an early or normal retirement benefit
    for reasons other than a change in the health of the participant,
    such early or normal retirement benefit shall be treated as a
    continuation of the benefit payable by reason of disability and
    this subparagraph shall continue to apply.
      (4)(A) The actuarial value of a benefit, for purposes of this
    subsection, shall be determined in accordance with regulations
    prescribed by the corporation.
      (B) For purposes of paragraph (3) - 
        (i) the term "gross income" means "earned income" within the
      meaning of section 911(b) of title 26 (determined without regard
      to any community property laws),
        (ii) in the case of a participant in a plan under which
      contributions are made by more than one employer, amounts
      received as gross income from any employer under that plan shall
      be aggregated with amounts received from any other employer under
      that plan during the same period, and
        (iii) any non-basic benefit shall be disregarded.

      (5)(A) For purposes of this paragraph, the term "majority owner"
    means an individual who, at any time during the 60-month period
    ending on the date the determination is being made - 
        (i) owns the entire interest in an unincorporated trade or
      business,
        (ii) in the case of a partnership, is a partner who owns,
      directly or indirectly, 50 percent or more of either the capital
      interest or the profits interest in such partnership, or
        (iii) in the case of a corporation, owns, directly or
      indirectly, 50 percent or more in value of either the voting
      stock of that corporation or all the stock of that corporation.

    For purposes of clause (iii), the constructive ownership rules of
    section 1563(e) of title 26 (other than paragraph (3)(C) thereof)
    shall apply, including the application of such rules under section
    414(c) of title 26.
      (B) In the case of a participant who is a majority owner, the
    amount of benefits guaranteed under this section shall equal the
    product of - 
        (i) a fraction (not to exceed 1) the numerator of which is the
      number of years from the later of the effective date or the
      adoption date of the plan to the termination date, and the
      denominator of which is 10, and
        (ii) the amount of benefits that would be guaranteed under this
      section if the participant were not a majority owner.

      (6)(A) No benefits accrued under a plan after the date on which
    the Secretary of the Treasury issues notice that he has determined
    that any trust which is a part of a plan does not meet the
    requirements of section 401(a) of title 26, or that the plan does
    not meet the requirements of section 404(a)(2) of title 26, are
    guaranteed under this section unless such determination is
    erroneous. This subparagraph does not apply if the Secretary
    subsequently issues a notice that such trust meets the requirements
    of section 401(a) of title 26 or that the plan meets the
    requirements of section 404(a)(2) of title 26 and if the Secretary
    determines that the trust or plan has taken action necessary to
    meet such requirements during the period between the issuance of
    the notice referred to in the preceding sentence and the issuance
    of the notice referred to in this sentence.
      (B) No benefits accrued under a plan after the date on which an
    amendment of the plan is adopted which causes the Secretary of the
    Treasury to determine that any trust under the plan has ceased to
    meet the requirements of section 401(a) of title 26 or that the
    plan has ceased to meet the requirements of section 404(a)(2) of
    title 26, are guaranteed under this section unless such
    determination is erroneous. This subparagraph shall not apply if
    the amendment is revoked as of the date it was first effective or
    amended to comply with such requirements.
      (7) Benefits described in paragraph (1) are guaranteed only to
    the extent of the greater of - 
        (A) 20 percent of the amount which, but for the fact that the
      plan or amendment has not been in effect for 60 months or more,
      would be guaranteed under this section, or
        (B) $20 per month,

    multiplied by the number of years (but not more than 5) the plan or
    amendment, as the case may be, has been in effect. In determining
    how many years a plan or amendment has been in effect for purposes
    of this paragraph, the first 12 months beginning with the date on
    which the plan or amendment is made or first becomes effective
    (whichever is later) constitutes one year, and each consecutive
    period of 12 months thereafter constitutes an additional year. This
    paragraph does not apply to benefits payable under a plan unless
    the corporation finds substantial evidence that the plan was
    terminated for a reasonable business purpose and not for the
    purpose of obtaining the payment of benefits by the corporation
    under this subchapter.
      (8) If an unpredictable contingent event benefit (as defined in
    section 1056(g)(1) of this title) is payable by reason of the
    occurrence of any event, this section shall be applied as if a plan
    amendment had been adopted on the date such event occurred.
    (c) Payment by corporation to participants and beneficiaries of
      recovery percentage of outstanding amount of benefit liabilities
      (1) In addition to benefits paid under the preceding provisions
    of this section with respect to a terminated plan, the corporation
    shall pay the portion of the amount determined under paragraph (2)
    which is allocated with respect to each participant under section
    1344(a) of this title. Such payment shall be made to such
    participant or to such participant's beneficiaries (including
    alternate payees, within the meaning of section 1056(d)(3)(K) of
    this title).
      (2) The amount determined under this paragraph is an amount equal
    to the product derived by multiplying - 
        (A) the outstanding amount of benefit liabilities under the
      plan (including interest calculated from the termination date),
      by
        (B) the applicable recovery ratio.

      (3)(A) In general. - Except as provided in subparagraph (C), the
    term "recovery ratio" means the ratio which - 
        (i) the sum of the values of all recoveries under section 1362,
      1363, or 1364 of this title, determined by the corporation in
      connection with plan terminations described under subparagraph
      (B), bears to
        (ii) the sum of all unfunded benefit liabilities under such
      plans as of the termination date in connection with any such
      prior termination.

      (B) A plan termination described in this subparagraph is a
    termination with respect to which - 
        (i) the corporation has determined the value of recoveries
      under section 1362, 1363, or 1364 of this title, and
        (ii) notices of intent to terminate were provided (or in the
      case of a termination by the corporation, a notice of
      determination under section 1342 of this title was issued) during
      the 5-Federal fiscal year period ending with the third fiscal
      year preceding the fiscal year in which occurs the date of the
      notice of intent to terminate (or the notice of determination
      under section 1342 of this title) with respect to the plan
      termination for which the recovery ratio is being determined.

      (C) In the case of a terminated plan with respect to which the
    outstanding amount of benefit liabilities exceeds $20,000,000, for
    purposes of this section, the term "recovery ratio" means, with
    respect to the termination of such plan, the ratio of - 
        (i) the value of the recoveries of the corporation under
      section 1362, 1363, or 1364 of this title in connection with such
      plan, to
        (ii) the amount of unfunded benefit liabilities under such plan
      as of the termination date.

      (4) Determinations under this subsection shall be made by the
    corporation. Such determinations shall be binding unless shown by
    clear and convincing evidence to be unreasonable.
    (d) Authorization to guarantee other classes of benefits
      The corporation is authorized to guarantee the payment of such
    other classes of benefits and to establish the terms and conditions
    under which such other classes of benefits are guaranteed as it
    determines to be appropriate.
    (e) Nonforfeitability of preretirement survivor annuity
      For purposes of subsection (a) of this section, a qualified
    preretirement survivor annuity (as defined in section 1055(e)(1) of
    this title) with respect to a participant under a terminated single-
    employer plan shall not be treated as forfeitable solely because
    the participant has not died as of the termination date.
    (f) Effective date of plan amendments
      For purposes of this section, the effective date of a plan
    amendment described in section 1054(i)(1) of this title shall be
    the effective date of the plan of reorganization of the employer
    described in section 1054(i)(1) of this title or, if later, the
    effective date stated in such amendment.
    (g) Bankruptcy filing substituted for termination date
      If a contributing sponsor of a plan has filed or has had filed
    against such person a petition seeking liquidation or
    reorganization in a case under title 11 or under any similar
    Federal law or law of a State or political subdivision, and the
    case has not been dismissed as of the termination date of the plan,
    then this section shall be applied by treating the date such
    petition was filed as the termination date of the plan.
    (h) Special rule for plans electing certain funding requirements
      If any plan makes an election under section 402(a)(1) of the
    Pension Protection Act of 2006 and is terminated effective before
    the end of the 10-year period beginning on the first day of the
    first applicable plan year - 
        (1) this section shall be applied - 
          (A) by treating the first day of the first applicable plan
        year as the termination date of the plan, and
          (B) by determining the amount of guaranteed benefits on the
        basis of plan assets and liabilities as of such assumed
        termination date, and

        (2) notwithstanding section 1344(a) of this title, plan assets
      shall first be allocated to pay the amount, if any, by which - 
          (A) the amount of guaranteed benefits under this section
        (determined without regard to paragraph (1) and on the basis of
        plan assets and liabilities as of the actual date of plan
        termination), exceeds
          (B) the amount determined under paragraph (1).

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4022, Sept. 2, 1974, 88 Stat. 1016;
    Pub. L. 96-364, title IV, Sec. 403(c), Sept. 26, 1980, 94 Stat.
    1301; Pub. L. 99-272, title XI, Sec. 11016(c)(8), (9), Apr. 7,
    1986, 100 Stat. 274; Pub. L. 100-203, title IX, Sec. 9312(b)(3)(A),
    Dec. 22, 1987, 101 Stat. 1330-362; Pub. L. 101-239, title VII,
    Secs. 7881(f)(4), (5), (11), 7891(a)(1), 7894(g)(1), (3)(B), Dec.
    19, 1989, 103 Stat. 2440, 2441, 2445, 2451; Pub. L. 103-465, title
    VII, Secs. 766(c), 777(a), Dec. 8, 1994, 108 Stat. 5037, 5049; Pub.
    L. 109-280, title IV, Secs. 402(g)(2)(A), 403(a), 404(a), 407(a),
    408(a), (b)(1), Aug. 17, 2006, 120 Stat. 926, 928, 929, 931.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Social Security Act, referred to in subsec. (b)(3), is act
    Aug. 14, 1935, ch. 531, 49 Stat. 620, as amended. Titles II, and
    XVI of the Act are classified generally to subchapters II (Sec. 401
    et seq.) and XVI (Sec. 1381 et seq.), respectively, of chapter 7 of
    Title 42, The Public Health and Welfare. For complete
    classification of this Act to the Code, see section 1305 of Title
    42 and Tables.
      Section 402(a)(1) of the Pension Protection Act of 2006, referred
    to in subsec. (h), is section 402(a)(1) of Pub. L. 109-280, which
    is set out as a note under section 430 of Title 26, Internal
    Revenue Code.


-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (b)(5). Pub. L. 109-280, Sec. 407(a), amended par.
    (5) generally. Prior to amendment, par. (5) related to the amount
    of benefits guaranteed under this section in the case of a
    participant in a plan who was covered by the plan as a substantial
    owner.
      Subsec. (b)(8). Pub. L. 109-280, Sec. 403(a), added par. (8).
      Subsec. (c)(3)(A). Pub. L. 109-280, Sec. 408(b)(1), amended
    subpar. (A) generally. Prior to amendment, subpar. (A) read as
    follows: "Except as provided in subparagraph (C), for purposes of
    this subsection, the term 'recovery ratio' means the average ratio,
    with respect to prior plan terminations described in subparagraph
    (B), of - 
        "(i) the value of the recovery of the corporation under section
      1362, 1363, or 1364 of this title in connection with such prior
      terminations, to
        "(ii) the amount of unfunded benefit liabilities under such
      plans as of the termination date in connection with such prior
      terminations."
      Subsec. (c)(3)(B)(ii). Pub. L. 109-280, Sec. 408(a), amended cl.
    (ii) generally. Prior to amendment, cl. (ii) read as follows:
    "notices of intent to terminate were provided after December 17,
    1987, and during the 5-Federal fiscal year period ending with the
    fiscal year preceding the fiscal year in which occurs the date of
    the notice of intent to terminate with respect to the plan
    termination for which the recovery ratio is being determined."
      Subsec. (g). Pub. L. 109-280, Sec. 404(a), which directed
    amendment of this section, as amended by Pub. L. 109-280, by adding
    subsec. (g) at the end, was executed by adding subsec. (g) after
    subsec. (f) and before subsec. (h) to reflect the probable intent
    of Congress.
      Subsec. (h). Pub. L. 109-280, Sec. 402(g)(2)(A), added subsec.
    (h).
      1994 - Subsec. (b)(3). Pub. L. 103-465, Sec. 777(a), inserted at
    end "The maximum guaranteed monthly benefit shall not be reduced
    solely on account of the age of a participant in the case of a
    benefit payable by reason of disability that occurred on or before
    the termination date, if the participant demonstrates to the
    satisfaction of the corporation that the Social Security
    Administration has determined that the participant satisfies the
    definition of disability under title II or XVI of the Social
    Security Act, and the regulations thereunder. If a benefit payable
    by reason of disability is converted to an early or normal
    retirement benefit for reasons other than a change in the health of
    the participant, such early or normal retirement benefit shall be
    treated as a continuation of the benefit payable by reason of
    disability and this subparagraph shall continue to apply."
      Subsec. (f). Pub. L. 103-465, Sec. 766(c), added subsec. (f).
      1989 - Subsec. (a). Pub. L. 101-239, Sec. 7894(g)(3)(B),
    substituted "this subchapter" for "section 1321 of this title".
      Subsec. (b)(2). Pub. L. 101-239, Sec. 7894(g)(1), substituted "60-
    month" for "60 month".
      Subsec. (b)(4)(B)(i), (5)(A), (6). Pub. L. 101-239, Sec.
    7891(a)(1), substituted "Internal Revenue Code of 1986" for
    "Internal Revenue Code of 1954", which for purposes of codification
    was translated as "title 26" thus requiring no change in text.
      Subsec. (c)(1). Pub. L. 101-239, Sec. 7881(f)(11), substituted
    "under section 1344(a) of this title. Such payment shall be made to
    such participant" for "under section 1344(a) of this title, to such
    participant".
      Pub. L. 101-239, Sec. 7881(f)(4), struck out "(in the case of a
    deceased participant)" before "to such participant's
    beneficiaries".
      Subsec. (c)(3)(B)(ii). Pub. L. 101-239, Sec. 7881(f)(5), inserted
    before period at end ", and during the 5-Federal fiscal year period
    ending with the fiscal year preceding the fiscal year in which
    occurs the date of the notice of intent to terminate with respect
    to the plan termination for which the recovery ratio is being
    determined".
      1987 - Subsecs. (c) to (e). Pub. L. 100-203 added subsec. (c) and
    redesignated former subsecs. (c) and (d) as (d) and (e),
    respectively.
      Subsec. (b)(7). Pub. L. 99-272, Sec. 11016(c)(8), in provisions
    following subpar. (B) substituted "12 months beginning with" for
    "12 months following".
      Subsec. (d). Pub. L. 99-272, Sec. 11016(c)(9), added subsec. (d).
      1980 - Subsec. (a). Pub. L. 96-364, Sec. 403(c)(2), inserted ",
    in accordance with this section," after "guarantee" and "single-
    employer" before "plan which", and struck out "the terms of" after
    "under".
      Subsec. (b). Pub. L. 96-364, Sec. 403(c)(3), (4), in par. (1)
    substituted "(7)" for "(8)", struck out par. (5) relating to
    receipt of a life annuity commencing at age 65, and redesignated
    pars. (6) to (8) as (5) to (7), respectively.

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Amendment by section 402(g)(2)(A) of Pub. L. 109-280 applicable
    to plan years ending after Aug. 17, 2006, see section 402(j) of
    Pub. L. 109-280, set out as a Special Funding Rules for Certain
    Plans Maintained by Commercial Airlines note under section 430 of
    Title 26, Internal Revenue Code.
      Pub. L. 109-280, title IV, Sec. 403(b), Aug. 17, 2006, 120 Stat.
    928, provided that: "The amendment made by this section [amending
    this section] shall apply to benefits that become payable as a
    result of an event which occurs after July 26, 2005."
      Pub. L. 109-280, title IV, Sec. 404(c), Aug. 17, 2006, 120 Stat.
    928, provided that: "The amendments made this section [amending
    this section and section 1344 of this title] shall apply with
    respect to proceedings initiated under title 11, United States
    Code, or under any similar Federal law or law of a State or
    political subdivision, on or after the date that is 30 days after
    the date of enactment of this Act [Aug. 17, 2006]."
      Amendment by section 407(a) of Pub. L. 109-280 applicable to plan
    terminations under section 1341(c) of this title with respect to
    which notices of intent to terminate are provided under section
    1341(a)(2) of this title after Dec. 31, 2005, and under section
    1342 of this title with respect to which notices of determination
    are provided under such section after such date, see section
    407(d)(1) of Pub. L. 109-280, set out as a note under section 1321
    of this title.
      Pub. L. 109-280, title IV, Sec. 408(c), Aug. 17, 2006, 120 Stat.
    932, provided that: "The amendments made by this section [amending
    this section and section 1344 of this title] shall apply for any
    termination for which notices of intent to terminate are provided
    (or in the case of a termination by the corporation, a notice of
    determination under section 4042 under the Employee Retirement
    Income Security Act of 1974 [29 U.S.C. 1342] is issued) on or after
    the date which is 30 days after the date of enactment of this
    section [Aug. 17, 2006]."

                     EFFECTIVE DATE OF 1994 AMENDMENT                 
      Amendment by section 766(c) of Pub. L. 103-465 applicable to plan
    amendments adopted on or after Dec. 8, 1994, see section 766(d) of
    Pub. L. 103-465, set out as a note under section 401 of Title 26,
    Internal Revenue Code.
      Section 777(b) of Pub. L. 103-465 provided that: "The amendment
    made by this section [amending this section] shall be effective for
    plan terminations under section 4041(c) of the Employee Retirement
    Income Security Act of 1974 [29 U.S.C. 1341(c)] with respect to
    which notices of intent to terminate are provided under section
    4041(a)(2) of such Act [29 U.S.C. 1342], or under section 4042 of
    such Act with respect to which proceedings are instituted by the
    corporation, on or after the date of enactment of this Act [Dec. 8,
    1994]."

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by section 7881(f)(4), (5), (11) of Pub. L. 101-239
    effective, except as otherwise provided, as if included in the
    provision of the Pension Protection Act, Pub. L. 100-203, Secs.
    9302-9346, to which such amendment relates, see section 7882 of
    Pub. L. 101-239, set out as a note under section 401 of Title 26,
    Internal Revenue Code.
      Amendment by section 7891(a)(1) of Pub. L. 101-239 effective,
    except as otherwise provided, as if included in the provision of
    the Tax Reform Act of 1986, Pub. L. 99-514, to which such amendment
    relates, see section 7891(f) of Pub. L. 101-239, set out as a note
    under section 1002 of this title.
      Amendment by section 7894(g)(1), (3)(B) of Pub. L. 101-239
    effective, except as otherwise provided, as if originally included
    in the provision of the Employee Retirement Income Security Act of
    1974, Pub. L. 93-406, to which such amendment relates, see section
    7894(i) of Pub. L. 101-239, set out as a note under section 1002 of
    this title.

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Amendment by Pub. L. 100-203 applicable with respect to plan
    terminations under section 1341 of this title with respect to which
    notices of intent to terminate are provided under section
    1341(a)(2) of this title after Dec. 17, 1987, and plan terminations
    with respect to which proceedings are instituted by the Pension
    Benefit Guaranty Corporation under section 1342 of this title after
    that date, see section 9312(d)(1) of Pub. L. 100-203, as amended,
    set out as a note under section 1301 of this title.

                     EFFECTIVE DATE OF 1986 AMENDMENT                 
      Amendment by Pub. L. 99-272 effective Jan. 1, 1986, with certain
    exceptions, see section 11019 of Pub. L. 99-272, set out as a note
    under section 1341 of this title.

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-364 effective Sept. 26, 1980, except as
    specifically provided, see section 1461(e) of this title.

     TRANSITIONAL RULE REGARDING AMENDMENTS BY SECTION 9312 OF PUB. L.
                                  100-203
      Section 9312(b)(3)(B) of Pub. L. 100-203, as amended by Pub. L.
    101-239, title VII, Sec. 7881(f)(1), (6), Dec. 19, 1989, 103 Stat.
    2440, provided that:
      "(i) In general. - In the case of any plan termination to which
    the amendments made by this section [amending sections 1301, 1305,
    1322, 1341, 1342, 1349, 1362, 1364, and 1368 of this title and
    repealing section 1349 of this title] apply and with respect to
    which notices of intent to terminate were provided on or before
    December 17, 1990 - 
        "(I) subparagraph (A) of section 4022(c)(3) of ERISA [29 U.S.C.
      1322(c)(3)(A)] (as amended by this paragraph) shall not apply,
      and
        "(II) subparagraph (C) of section 4022(c)(3) of ERISA (as so
      amended) shall apply irrespective of the outstanding amount of
      benefit liabilities under the plan.
      "(ii) [Repealed. Pub. L. 101-239, title VII, Sec. 7881(f)(6),
    Dec. 19, 1989, 103 Stat. 2440.]"

-End-



-CITE-
    29 USC Sec. 1322a                                           01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle B - Coverage

-HEAD-
    Sec. 1322a. Multiemployer plan benefits guaranteed

-STATUTE-
    (a) Benefits of covered plans subject to guarantee
      The corporation shall guarantee, in accordance with this section,
    the payment of all nonforfeitable benefits (other than benefits
    becoming nonforfeitable solely on account of the termination of a
    plan) under a multiemployer plan - 
        (1) to which this subchapter applies, and
        (2) which is insolvent under section 1426(b) or 1441(d)(2) of
      this title.
    (b) Benefits or benefit increases not eligible for guarantee
      (1)(A) For purposes of this section, a benefit or benefit
    increase which has been in effect under a plan for less than 60
    months is not eligible for the corporation's guarantee. For
    purposes of this paragraph, any month of any plan year during which
    the plan was insolvent or terminated (within the meaning of section
    1341a(a)(2) of this title) shall not be taken into account.
      (B) For purposes of this section, a benefit or benefit increase
    which has been in effect under a plan for less than 60 months
    before the first day of the plan year for which an amendment
    reducing the benefit or the benefit increase is taken into account
    under section 1425(a)(2) of this title in determining the minimum
    contribution requirement for the plan year under section 1423(b) of
    this title is not eligible for the corporation's guarantee.
      (2) For purposes of this section - 
        (A) the date on which a benefit or a benefit increase under a
      plan is first in effect is the later of - 
          (i) the date on which the documents establishing or
        increasing the benefit were executed, or
          (ii) the effective date of the benefit or benefit increase;

        (B) the period of time for which a benefit or a benefit
      increase has been in effect under a successor plan includes the
      period of time for which the benefit or benefit increase was in
      effect under a previously established plan; and
        (C) in the case of a plan to which section 1321 of this title
      did not apply on September 3, 1974, the time periods referred to
      in this section are computed beginning on the date on which
      section 1321 of this title first applies to the plan.
    (c) Determinations respecting amount of guarantee
      (1) Except as provided in subsection (g) of this section, the
    monthly benefit of a participant or a beneficiary which is
    guaranteed under this section by the corporation with respect to a
    plan is the product of - 
        (A) 100 percent of the accrual rate up to $11, plus 75 percent
      of the lesser of - 
          (i) $33, or
          (ii) the accrual rate, if any, in excess of $11, and

        (B) the number of the participant's years of credited service.

      (2) For purposes of this section, the accrual rate is - 
        (A) the monthly benefit of the participant or beneficiary which
      is described in subsection (a) of this section and which is
      eligible for the corporation's guarantee under subsection (b) of
      this section, except that such benefit shall be - 
          (i) no greater than the monthly benefit which would be
        payable under the plan at normal retirement age in the form of
        a single life annuity, and
          (ii) determined without regard to any reduction under section
        411(a)(3)(E) of title 26; divided by

        (B) the participant's years of credited service.

      (3) For purposes of this subsection - 
        (A) a year of credited service is a year in which the
      participant completed - 
          (i) a full year of participation in the plan, or
          (ii) any period of service before participation which is
        credited for purposes of benefit accrual as the equivalent of a
        full year of participation;

        (B) any year for which the participant is credited for purposes
      of benefit accrual with a fraction of the equivalent of a full
      year of participation shall be counted as such a fraction of a
      year of credited service; and
        (C) years of credited service shall be determined by including
      service which may otherwise be disregarded by the plan under
      section 411(a)(3)(E) of title 26.
    (d) Amount of guarantee of reduced benefit
      In the case of a benefit which has been reduced under section
    411(a)(3)(E) of title 26, the corporation shall guarantee the
    lesser of - 
        (1) the reduced benefit, or
        (2) the amount determined under subsection (c) of this section.
    (e) Ineligibility of benefits for guarantee
      The corporation shall not guarantee benefits under a
    multiemployer plan which, under section 1322(b)(6) of this title,
    would not be guaranteed under a single-employer plan.
    (f) Study, report, etc., respecting premium increase in existing
      basic-benefit guarantee levels; Congressional procedures
      applicable for revision of schedules
      (1) No later than 5 years after September 26, 1980, and at least
    every fifth year thereafter, the corporation shall - 
        (A) conduct a study to determine - 
          (i) the premiums needed to maintain the basic-benefit
        guarantee levels for multiemployer plans described in
        subsection (c) of this section, and
          (ii) whether the basic-benefit guarantee levels for
        multiemployer plans may be increased without increasing the
        basic-benefit premiums for multiemployer plans under this
        subchapter; and

        (B) report such determinations to the Committee on Ways and
      Means and the Committee on Education and Labor of the House of
      Representatives and to the Committee on Finance and the Committee
      on Labor and Human Resources of the Senate.

      (2)(A) If the last report described in paragraph (1) indicates
    that a premium increase is necessary to support the existing basic-
    benefit guarantee levels for multiemployer plans, the corporation
    shall transmit to the Committee on Ways and Means and the Committee
    on Education and Labor of the House of Representatives and to the
    Committee on Finance and the Committee on Labor and Human Resources
    of the Senate by March 31 of any calendar year in which
    congressional action under this subsection is requested - 
        (i) a revised schedule of basic-benefit guarantees for
      multiemployer plans which would be necessary in the absence of an
      increase in premiums approved in accordance with section 1306(b)
      of this title,
        (ii) a revised schedule of basic-benefit premiums for
      multiemployer plans which is necessary to support the existing
      basic-benefit guarantees for such plans, and
        (iii) a revised schedule of basic-benefit guarantees for
      multiemployer plans for which the schedule of premiums necessary
      is higher than the existing premium schedule for such plans but
      lower than the revised schedule of premiums for such plans
      specified in clause (ii), together with such schedule of
      premiums.

      (B) The revised schedule of increased premiums referred to in
    subparagraph (A)(ii) or (A)(iii) shall go into effect as approved
    by the enactment of a joint resolution.
      (C) If an increase in premiums is not so enacted, the revised
    guarantee schedule described in subparagraph (A)(i) shall go into
    effect on the first day of the second calendar year following the
    year in which such revised guarantee schedule was submitted to the
    Congress.
      (3)(A) If the last report described in paragraph (1) indicates
    that basic-benefit guarantees for multiemployer plans can be
    increased without increasing the basic-benefit premiums for
    multiemployer plans under this subchapter, the corporation shall
    submit to the Committee on Ways and Means and the Committee on
    Education and Labor of the House of Representatives and to the
    Committee on Finance and the Committee on Labor and Human Resources
    of the Senate by March 31 of the calendar year in which
    congressional action under this paragraph is requested - 
        (i) a revised schedule of increases in the basic-benefit
      guarantees which can be supported by the existing schedule of
      basic-benefit premiums for multiemployer plans, and
        (ii) a revised schedule of basic-benefit premiums sufficient to
      support the existing basic-benefit guarantees.

      (B) The revised schedules referred to in subparagraph (A)(i) or
    subparagraph (A)(ii) shall go into effect as approved by the
    enactment of a joint resolution.
      (4)(A) The succeeding subparagraphs of this paragraph are enacted
    by the Congress as an exercise of the rulemaking power of the
    Senate and the House of Representatives, respectively, and as such
    they shall be deemed a part of the rules of each House,
    respectively, but applicable only with respect to the procedure to
    be followed in that House in the case of joint resolutions (as
    defined in subparagraph (B)). Such subparagraphs shall supersede
    other rules only to the extent that they are inconsistent
    therewith. They are enacted with full recognition of the
    constitutional right of either House to change the rules (so far as
    relating to the procedure of that House) at any time, in the same
    manner, and to the same extent as in the case of any rule of that
    House.
      (B) For purposes of this subsection, "joint resolution" means
    only a joint resolution, the matter after the resolving clause of
    which is as follows: "The proposed schedule described in       
    transmitted to the Congress by the Pension Benefit Guaranty
    Corporation on        is hereby approved.", the first blank space
    therein being filled with "section 4022A(f)(2)(A)(ii) of the
    Employee Retirement Income Security Act of 1974", "section
    4022A(f)(2)(A)(iii) of the Employee Retirement Income Security Act
    of 1974", "section 4022A(f)(3)(A)(i) of the Employee Retirement
    Income Security Act of 1974", or "section 4022A(f)(3)(A)(ii) of the
    Employee Retirement Income Security Act of 1974" (whichever is
    applicable), and the second blank space therein being filled with
    the date on which the corporation's message proposing the revision
    was submitted.
      (C) The procedure for disposition of a joint resolution shall be
    the procedure described in section 1306(b)(4) through (7) of this
    title.
    (g) Guarantee of payment of other classes of benefits and
      establishment of terms and conditions of guarantee; promulgation
      of regulations for establishment of supplemental program to
      guarantee benefits otherwise ineligible; status of benefits;
      applicability of revised schedule of premiums
      (1) The corporation may guarantee the payment of such other
    classes of benefits under multiemployer plans, and establish the
    terms and conditions under which those other classes of benefits
    are guaranteed, as it determines to be appropriate.
      (2)(A) The corporation shall prescribe regulations to establish a
    supplemental program to guarantee benefits under multiemployer
    plans which would be guaranteed under this section but for the
    limitations in subsection (c) of this section. Such regulations
    shall be proposed by the corporation no later than the end of the
    18th calendar month following September 26, 1980. The regulations
    shall make coverage under the supplemental program available no
    later than January 1, 1983. Any election to participate in the
    supplemental program shall be on a voluntary basis, and a plan
    electing such coverage shall continue to pay the premiums required
    under section 1306(a)(2)(B) of this title to the revolving fund
    used pursuant to section 1305 of this title in connection with
    benefits otherwise guaranteed under this section. Any such election
    shall be irrevocable, except to the extent otherwise provided by
    regulations prescribed by the corporation.
      (B) The regulations prescribed under this paragraph shall provide
    - 
        (i) that a plan must elect coverage under the supplemental
      program within the time permitted by the regulations;
        (ii) unless the corporation determines otherwise, that a plan
      may not elect supplemental coverage unless the value of the
      assets of the plan as of the end of the plan year preceding the
      plan year in which the election must be made is an amount equal
      to 15 times the total amount of the benefit payments made under
      the plan for that year; and
        (iii) such other reasonable terms and conditions for
      supplemental coverage, including funding standards and any other
      reasonable limitations with respect to plans or benefits covered
      or to means of program financing, as the corporation determines
      are necessary and appropriate for a feasible supplemental program
      consistent with the purposes of this subchapter.

      (3) Any benefits guaranteed under this subsection shall be
    considered nonbasic benefits for purposes of this subchapter.
      (4)(A) No revised schedule of premiums under this subsection,
    after the initial schedule, shall go into effect unless - 
        (i) the revised schedule is submitted to the Congress, and
        (ii) a joint resolution described in subparagraph (B) is not
      enacted before the close of the 60th legislative day after such
      schedule is submitted to the Congress.

      (B) For purposes of subparagraph (A), a joint resolution
    described in this subparagraph is a joint resolution the matter
    after the resolving clause of which is as follows: "The revised
    premium schedule transmitted to the Congress by the Pension Benefit
    Guaranty Corporation under section 4022A(g)(4) of the Employee
    Retirement Income Security Act of 1974 on          is hereby
    disapproved.", the blank space therein being filled with the date
    on which the revised schedule was submitted.
      (C) For purposes of subparagraph (A), the term "legislative day"
    means any calendar day other than a day on which either House is
    not in session because of a sine die adjournment or an adjournment
    of more than 3 days to a day certain.
      (D) The procedure for disposition of a joint resolution described
    in subparagraph (B) shall be the procedure described in paragraphs
    (4) through (7) of section 1306(b) of this title.
      (5) Regulations prescribed by the corporation to carry out the
    provisions of this subsection, may, to the extent provided therein,
    supersede the requirements of sections 1426, 1431, and 1441 of this
    title, and the requirements of section 418E of title 26, but only
    with respect to benefits guaranteed under this subsection.
    (h) Applicability to nonforfeitable benefits accrued as of July 30,
      1980; manner and extent of guarantee
      (1) Except as provided in paragraph (3), subsections (b) and (c)
    of this section shall not apply with respect to the nonforfeitable
    benefits accrued as of July 29, 1980, with respect to a participant
    or beneficiary under a multiemployer plan - 
        (1) who is in pay status on July 29, 1980, or
        (2) who is within 36 months of the normal retirement age and
      has a nonforfeitable right to a pension as of that date.

      (2) The benefits described in paragraph (1) shall be guaranteed
    by the corporation in the same manner and to the same extent as
    benefits are guaranteed by the corporation under section 1322 of
    this title (without regard to this section).
      (3) This subsection does not apply with respect to a plan for
    plan years following a plan year - 
        (A) in which the plan has terminated within the meaning of
      section 1341a(a)(2) of this title, or
        (B) in which it is determined by the corporation that
      substantially all the employers have withdrawn from the plan
      pursuant to an agreement or arrangement to withdraw.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4022A, as added Pub. L. 96-364,
    title I, Sec. 102, Sept. 26, 1980, 94 Stat. 1210; amended Pub. L.
    99-272, title XI, Sec. 11005(c)(4)-(12), Apr. 7, 1986, 100 Stat.
    242; Pub. L. 101-239, title VII, Secs. 7891(a)(1), 7893(b),
    7894(g)(3)(C)(i), Dec. 19, 1989, 103 Stat. 2445, 2447, 2451; Pub.
    L. 106-554, Sec. 1(a)(6) [title IX, Sec. 951(a)], Dec. 21, 2000,
    114 Stat. 2763, 2763A-586.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 4022A(f)(2)(A)(ii), (iii), (3)(A)(i), and (ii) of the
    Employee Retirement Income Security Act of 1974, referred to in
    subsec. (f)(4)(B), is classified to subsec. (f)(2)(A)(ii), (iii),
    (3)(A)(i) and (ii) of this section.
      Section 4022A(g)(4) of the Employee Retirement Income Security
    Act of 1974, referred to in subsec. (g)(4)(B), is classified to
    subsec. (g)(4) of this section.


-MISC1-
                                AMENDMENTS                            
      2000 - Subsec. (c)(1)(A). Pub. L. 106-554, Sec. 1(a)(6) [title
    IX, Sec. 951(a)(1)], substituted "$11" for "$5" in two places.
      Subsec. (c)(1)(A)(i). Pub. L. 106-554, Sec. 1(a)(6) [title IX,
    Sec. 951(a)(2)], substituted "$33" for "$15".
      Subsec. (c)(2) to (6). Pub. L. 106-554, Sec. 1(a)(6) [title IX,
    Sec. 951(a)(3)], redesignated pars. (3) and (4) as (2) and (3),
    respectively, and struck out former pars. (2), (5), and (6). Prior
    to amendment, par. (2) modified the amount of benefits guaranteed
    under par. (1) with respect to plans described in par. (5)(A), par.
    (5) described certain plans for which the first plan year in which
    the plan was insolvent and in which benefits were required to be
    suspended or reduced to a certain level began before the year 2000,
    and par. (6) provided that par. (2) did not apply to a plan
    described in par. (5)(A) if the value of the assets of the plan was
    at least a specified amount for a specified period of time.
      1989 - Subsec. (a)(1). Pub. L. 101-239, Sec. 7894(g)(3)(C)(i),
    substituted "this subchapter" for "section 1321 of this title".
      Subsecs. (c)(3)(A)(ii), (4)(C), (5)(A)(ii), (6), (d), (g)(5).
    Pub. L. 101-239, Sec. 7891(a)(1), substituted "Internal Revenue
    Code of 1986" for "Internal Revenue Code of 1954", which for
    purposes of codification was translated as "title 26" thus
    requiring no change in text.
      Subsec. (f)(2)(B). Pub. L. 101-239, Sec. 7893(b), substituted
    "the enactment" for "the the enactment".
      1986 - Subsec. (f)(2)(B). Pub. L. 99-272, Sec. 11005(c)(4),
    substituted "the enactment of a joint resolution" for "Congress by
    concurrent resolution".
      Subsec. (f)(2)(C). Pub. L. 99-272, Sec. 11005(c)(5), substituted
    "so enacted" for "approved".
      Subsec. (f)(3)(B). Pub. L. 99-272, Sec. 11005(c)(6), substituted
    "enactment of a joint resolution" for "Congress by concurrent
    resolution".
      Subsec. (f)(4)(A). Pub. L. 99-272, Sec. 11005(c)(7), substituted
    "joint" for "concurrent".
      Subsec. (f)(4)(B). Pub. L. 99-272, Sec. 11005(c)(8), substituted
    "joint" for "concurrent" in two places and "The" for "That the
    Congress favors the" and inserted "is hereby approved".
      Subsec. (f)(4)(C). Pub. L. 99-272, Sec. 11005(c)(9), substituted
    "joint" for "concurrent".
      Subsec. (g)(4)(A)(ii). Pub. L. 99-272, Sec. 11005(c)(10),
    substituted "joint" for "concurrent" and "enacted" for "adopted".
      Subsec. (g)(4)(B). Pub. L. 99-272, Sec. 11005(c)(11), substituted
    "joint" for "concurrent" in two places and "The" for "That the
    Congress disapproves the" and inserted "is hereby disapproved".
      Subsec. (g)(4)(D). Pub. L. 99-272, Sec. 11005(c)(12), substituted
    "joint" for "concurrent".

-CHANGE-
                              CHANGE OF NAME                          
      Committee on Labor and Human Resources of Senate changed to
    Committee on Health, Education, Labor, and Pensions of Senate by
    Senate Resolution No. 20, One Hundred Sixth Congress, Jan. 19,
    1999.
      Committee on Education and Labor of House of Representatives
    treated as referring to Committee on Economic and Educational
    Opportunities of House of Representatives by section 1(a) of Pub.
    L. 104-14, set out as a note preceding section 21 of Title 2, The
    Congress. Committee on Economic and Educational Opportunities of
    House of Representatives changed to Committee on Education and the
    Workforce of House of Representatives by House Resolution No. 5,
    One Hundred Fifth Congress, Jan. 7, 1997.


-MISC2-
                     EFFECTIVE DATE OF 2000 AMENDMENT                 
      Pub. L. 106-554, Sec. 1(a)(6) [title IX, Sec. 951(b)], Dec. 21,
    2000, 114 Stat. 2763, 2763A-586, provided that: "The amendments
    made by this section [amending this section] shall apply to any
    multiemployer plan that has not received financial assistance
    (within the meaning of section 4261 of the Employee Retirement
    Income Security Act of 1974 [29 U.S.C. 1431]) within the 1-year
    period ending on the date of the enactment of this Act [Dec. 21,
    2000]."

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by section 7891(a)(1) of Pub. L. 101-239 effective,
    except as otherwise provided, as if included in the provision of
    the Tax Reform Act of 1986, Pub. L. 99-514, to which such amendment
    relates, see section 7891(f) of Pub. L. 101-239, set out as a note
    under section 1002 of this title.
      Amendment by section 7893(b) of Pub. L. 101-239 effective as if
    included in the provision of the Single-Employer Pension Plan
    Amendments Act of 1986, Pub. L. 99-272, title XI, to which such
    amendment relates, see section 7893(h) of Pub. L. 101-239, set out
    as a note under section 1002 of this title.
      Section 7894(g)(3)(C)(ii) of Pub. L. 101-239 provided that: "The
    amendment made by clause (i) [amending this section] shall take
    effect as if originally included in section 102 of the
    Multiemployer Pension Plan Amendments Act of 1980 [Pub. L. 96-
    364]."

                     EFFECTIVE DATE OF 1986 AMENDMENT                 
      Amendment by Pub. L. 99-272 effective for plan years commencing
    after Dec. 31, 1985, see section 11005(d)(1) of Pub. L. 99-272, set
    out as a note under section 1306 of this title.

                              EFFECTIVE DATE                          
      Section effective Sept. 26, 1980, except as specifically
    provided, see section 1461(e) of this title.

-End-



-CITE-
    29 USC Sec. 1322b                                           01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle B - Coverage

-HEAD-
    Sec. 1322b. Aggregate limit on benefits guaranteed; criteria
      applicable

-STATUTE-
      (a) Notwithstanding sections 1322 and 1322a of this title, no
    person shall receive from the corporation pursuant to a guarantee
    by the corporation of basic benefits with respect to a participant
    under all multiemployer and single employer plans an amount, or
    amounts, with an actuarial value which exceeds the actuarial value
    of a monthly benefit in the form of a life annuity commencing at
    age 65 equal to the amount determined under section 1322(b)(3)(B)
    of this title as of the date of the last plan termination.
      (b) For purposes of this section - 
        (1) the receipt of benefits under a multiemployer plan
      receiving financial assistance from the corporation shall be
      considered the receipt of amounts from the corporation pursuant
      to a guarantee by the corporation of basic benefits except to the
      extent provided in regulations prescribed by the corporation, and
        (2) the date on which a multiemployer plan, whether or not
      terminated, begins receiving financial assistance from the
      corporation shall be considered a date of plan termination.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4022B, as added Pub. L. 96-364,
    title I, Sec. 102, Sept. 26, 1980, 94 Stat. 1215.)


-MISC1-
                              EFFECTIVE DATE                          
       Section effective Sept. 26, 1980, except as specifically
    provided, see section 1461(e) of this title.

-End-



-CITE-
    29 USC Sec. 1323                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle B - Coverage

-HEAD-
    Sec. 1323. Plan fiduciaries

-STATUTE-
      Notwithstanding any other provision of this chapter, a fiduciary
    of a plan to which section 1321 of this title applies is not in
    violation of the fiduciary's duties as a result of any act or of
    any withholding of action required by this subchapter.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4023, as added Pub. L. 96-364,
    title IV, Sec. 402(a)(5), Sept. 26, 1980, 94 Stat. 1298.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This chapter, referred to in text, was in the original "this
    Act", meaning Pub. L. 93-406, known as the Employee Retirement
    Income Security Act of 1974. Titles I, III, and IV of such Act are
    classified principally to this chapter. For complete classification
    of this Act to the Code, see Short Title note set out under section
    1001 of the title and Tables.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1323, Pub. L. 93-406, title IV, Sec. 4023, Sept.
    2, 1974, 88 Stat. 1019, related to contingent liability coverage,
    prior to repeal by Pub. L. 96-364, title I, Sec. 107, Sept. 26,
    1980, 94 Stat. 1267.

                              EFFECTIVE DATE                          
      Section effective Sept. 26, 1980, except as specifically
    provided, see section 1461(e) of this title.

-End-


-CITE-
    29 USC Subtitle C - Terminations                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle C - Terminations

-HEAD-
                         SUBTITLE C - TERMINATIONS                     

-End-



-CITE-
    29 USC Sec. 1341                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle C - Terminations

-HEAD-
    Sec. 1341. Termination of single-employer plans

-STATUTE-
    (a) General rules governing single-employer plan terminations
      (1) Exclusive means of plan termination
        Except in the case of a termination for which proceedings are
      otherwise instituted by the corporation as provided in section
      1342 of this title, a single-employer plan may be terminated only
      in a standard termination under subsection (b) of this section or
      a distress termination under subsection (c) of this section.
      (2) 60-day notice of intent to terminate
        Not less than 60 days before the proposed termination date of a
      standard termination under subsection (b) of this section or a
      distress termination under subsection (c) of this section, the
      plan administrator shall provide to each affected party (other
      than the corporation in the case of a standard termination) a
      written notice of intent to terminate stating that such
      termination is intended and the proposed termination date. The
      written notice shall include any related additional information
      required in regulations of the corporation.
      (3) Adherence to collective bargaining agreements
        The corporation shall not proceed with a termination of a plan
      under this section if the termination would violate the terms and
      conditions of an existing collective bargaining agreement.
      Nothing in the preceding sentence shall be construed as limiting
      the authority of the corporation to institute proceedings to
      involuntarily terminate a plan under section 1342 of this title.
    (b) Standard termination of single-employer plans
      (1) General requirements
        A single-employer plan may terminate under a standard
      termination only if - 
          (A) the plan administrator provides the 60-day advance notice
        of intent to terminate to affected parties required under
        subsection (a)(2) of this section,
          (B) the requirements of subparagraphs (A) and (B) of
        paragraph (2) are met,
          (C) the corporation does not issue a notice of noncompliance
        under subparagraph (C) of paragraph (2), and
          (D) when the final distribution of assets occurs, the plan is
        sufficient for benefit liabilities (determined as of the
        termination date).
      (2) Termination procedure
        (A) Notice to the corporation
          As soon as practicable after the date on which the notice of
        intent to terminate is provided pursuant to subsection (a)(2)
        of this section, the plan administrator shall send a notice to
        the corporation setting forth - 
            (i) certification by an enrolled actuary - 
              (I) of the projected amount of the assets of the plan (as
            of a proposed date of final distribution of assets),
              (II) of the actuarial present value (as of such date) of
            the benefit liabilities (determined as of the proposed
            termination date) under the plan, and
              (III) that the plan is projected to be sufficient (as of
            such proposed date of final distribution) for such benefit
            liabilities,

            (ii) such information as the corporation may prescribe in
          regulations as necessary to enable the corporation to make
          determinations under subparagraph (C), and
            (iii) certification by the plan administrator that - 
              (I) the information on which the enrolled actuary based
            the certification under clause (i) is accurate and
            complete, and
              (II) the information provided to the corporation under
            clause (ii) is accurate and complete.

        Clause (i) and clause (iii)(I) shall not apply to a plan
        described in section 412(i) of title 26.
        (B) Notice to participants and beneficiaries of benefit
          commitments (!1)

          No later than the date on which a notice is sent by the plan
        administrator under subparagraph (A), the plan administrator
        shall send a notice to each person who is a participant or
        beneficiary under the plan - 
            (i) specifying the amount of the benefit liabilities (if
          any) attributable to such person as of the proposed
          termination date and the benefit form on the basis of which
          such amount is determined, and
            (ii) including the following information used in
          determining such benefit liabilities:
              (I) the length of service,
              (II) the age of the participant or beneficiary,
              (III) wages,
              (IV) the assumptions, including the interest rate, and
              (V) such other information as the corporation may
            require.

        Such notice shall be written in such manner as is likely to be
        understood by the participant or beneficiary and as may be
        prescribed in regulations of the corporation.
        (C) Notice from the corporation of noncompliance
          (i) In general
            Within 60 days after receipt of the notice under
          subparagraph (A), the corporation shall issue a notice of
          noncompliance to the plan administrator if - 
              (I) it determines, based on the notice sent under
            paragraph (2)(A) of subsection (b) of this section, that
            there is reason to believe that the plan is not sufficient
            for benefit liabilities,
              (II) it otherwise determines, on the basis of information
            provided by affected parties or otherwise obtained by the
            corporation, that there is reason to believe that the plan
            is not sufficient for benefit liabilities, or
              (III) it determines that any other requirement of
            subparagraph (A) or (B) of this paragraph or of subsection
            (a)(2) of this section has not been met, unless it further
            determines that the issuance of such notice would be
            inconsistent with the interests of participants and
            beneficiaries.
          (ii) Extension
            The corporation and the plan administrator may agree to
          extend the 60-day period referred to in clause (i) by a
          written agreement signed by the corporation and the plan
          administrator before the expiration of the 60-day period. The
          60-day period shall be extended as provided in the agreement
          and may be further extended by subsequent written agreements
          signed by the corporation and the plan administrator made
          before the expiration of a previously agreed upon extension
          of the 60-day period. Any extension may be made upon such
          terms and conditions (including the payment of benefits) as
          are agreed upon by the corporation and the plan
          administrator.
        (D) Final distribution of assets in absence of notice of
          noncompliance
          The plan administrator shall commence the final distribution
        of assets pursuant to the standard termination of the plan as
        soon as practicable after the expiration of the 60-day (or
        extended) period referred to in subparagraph (C), but such
        final distribution may occur only if - 
            (i) the plan administrator has not received during such
          period a notice of noncompliance from the corporation under
          subparagraph (C), and
            (ii) when such final distribution occurs, the plan is
          sufficient for benefit liabilities (determined as of the
          termination date).
      (3) Methods of final distribution of assets
        (A) In general
          In connection with any final distribution of assets pursuant
        to the standard termination of the plan under this subsection,
        the plan administrator shall distribute the assets in
        accordance with section 1344 of this title. In distributing
        such assets, the plan administrator shall - 
            (i) purchase irrevocable commitments from an insurer to
          provide all benefit liabilities under the plan, or
            (ii) in accordance with the provisions of the plan and any
          applicable regulations, otherwise fully provide all benefit
          liabilities under the plan. A transfer of assets to the
          corporation in accordance with section 1350 of this title on
          behalf of a missing participant shall satisfy this
          subparagraph with respect to such participant.
        (B) Certification to the corporation of final distribution of
          assets
          Within 30 days after the final distribution of assets is
        completed pursuant to the standard termination of the plan
        under this subsection, the plan administrator shall send a
        notice to the corporation certifying that the assets of the
        plan have been distributed in accordance with the provisions of
        subparagraph (A) so as to pay all benefit liabilities under the
        plan.
      (4) Continuing authority
        Nothing in this section shall be construed to preclude the
      continued exercise by the corporation, after the termination date
      of a plan terminated in a standard termination under this
      subsection, of its authority under section 1303 of this title
      with respect to matters relating to the termination. A
      certification under paragraph (3)(B) shall not affect the
      corporation's obligations under section 1322 of this title.
      (5) Special rule for certain plans where cessation or change in
        membership of a controlled group
        (A) In general
          Except as provided in subparagraph (B), if - 
            (i) there is (!2) transaction or series of transactions
          which result in a person ceasing to be a member of a
          controlled group, and

            (ii) such person immediately before the transaction or
          series of transactions maintained a single-employer plan
          which is a defined benefit plan which is fully funded,

        then the interest rate used in determining whether the plan is
        sufficient for benefit liabilities or to otherwise assess plan
        liabilities for purposes of this subsection or section
        1342(a)(4) of this title shall be not less than the interest
        rate used in determining whether the plan is fully funded.
        (B) Limitations
          Subparagraph (A) shall not apply to any transaction or series
        of transactions unless - 
            (i) any employer maintaining the plan immediately before or
          after such transaction or series of transactions - 
              (I) has an outstanding senior unsecured debt instrument
            which is rated investment grade by each of the nationally
            recognized statistical rating organizations for corporate
            bonds that has issued a credit rating for such instrument,
            or
              (II) if no such debt instrument of such employer has been
            rated by such an organization but 1 or more of such
            organizations has made an issuer credit rating for such
            employer, all such organizations which have so rated the
            employer have rated such employer investment grade, and

            (ii) the employer maintaining the plan after the
          transaction or series of transactions employs at least 20
          percent of the employees located in the United States who
          were employed by such employer immediately before the
          transaction or series of transactions.
        (C) Fully funded
          For purposes of subparagraph (A), a plan shall be treated as
        fully funded with respect to any transaction or series of
        transactions if - 
            (i) in the case of a transaction or series of transactions
          which occur in a plan year beginning before January 1, 2008,
          the funded current liability percentage determined under
          section 1082(d) of this title for the plan year is at least
          100 percent, and
            (ii) in the case of a transaction or series of transactions
          which occur in a plan year beginning on or after such date,
          the funding target attainment percentage determined under
          section 1083 of this title is, as of the valuation date for
          such plan year, at least 100 percent.
        (D) 2 year limitation
          Subparagraph (A) shall not apply to any transaction or series
        of transactions if the plan referred to in subparagraph (A)(ii)
        is terminated under subsection (c) or section 1342 of this
        title after the close of the 2-year period beginning on the
        date on which the first such transaction occurs.
    (c) Distress termination of single-employer plans
      (1) In general
        A single-employer plan may terminate under a distress
      termination only if - 
          (A) the plan administrator provides the 60-day advance notice
        of intent to terminate to affected parties required under
        subsection (a)(2) of this section,
          (B) the requirements of subparagraph (A) of paragraph (2) are
        met, and
          (C) the corporation determines that the requirements of
        subparagraphs (B) and (D) of paragraph (2) are met.
      (2) Termination requirements
        (A) Information submitted to the corporation
          As soon as practicable after the date on which the notice of
        intent to terminate is provided pursuant to subsection (a)(2)
        of this section, the plan administrator shall provide the
        corporation, in such form as may be prescribed by the
        corporation in regulations, the following information:
            (i) such information as the corporation may prescribe by
          regulation as necessary to make determinations under
          subparagraph (B) and paragraph (3);
            (ii) unless the corporation determines the information is
          not necessary for purposes of paragraph (3)(A) or section
          1362 of this title, certification by an enrolled actuary of -
          
              (I) the amount (as of the proposed termination date and,
            if applicable, the proposed distribution date) of the
            current value of the assets of the plan,
              (II) the actuarial present value (as of such dates) of
            the benefit liabilities under the plan,
              (III) whether the plan is sufficient for benefit
            liabilities as of such dates,
              (IV) the actuarial present value (as of such dates) of
            benefits under the plan guaranteed under section 1322 of
            this title, and
              (V) whether the plan is sufficient for guaranteed
            benefits as of such dates;

            (iii) in any case in which the plan is not sufficient for
          benefit liabilities as of such date - 
              (I) the name and address of each participant and
            beneficiary under the plan as of such date, and
              (II) such other information as shall be prescribed by the
            corporation by regulation as necessary to enable the
            corporation to be able to make payments to participants and
            beneficiaries as required under section 1322(c) of this
            title; and

            (iv) certification by the plan administrator that - 
              (I) the information on which the enrolled actuary based
            the certifications under clause (ii) is accurate and
            complete, and
              (II) the information provided to the corporation under
            clauses (i) and (iii) is accurate and complete.

        Clause (ii) and clause (iv)(I) shall not apply to a plan
        described in section 412(i) of title 26.
        (B) Determination by the corporation of necessary distress
          criteria
          Upon receipt of the notice of intent to terminate required
        under subsection (a)(2) of this section and the information
        required under subparagraph (A), the corporation shall
        determine whether the requirements of this subparagraph are met
        as provided in clause (i), (ii), or (iii). The requirements of
        this subparagraph are met if each person who is (as of the
        proposed termination date) a contributing sponsor of such plan
        or a member of such sponsor's controlled group meets the
        requirements of any of the following clauses:
          (i) Liquidation in bankruptcy or insolvency proceedings
            The requirements of this clause are met by a person if - 
              (I) such person has filed or has had filed against such
            person, as of the proposed termination date, a petition
            seeking liquidation in a case under title 11 or under any
            similar Federal law or law of a State or political
            subdivision of a State (or a case described in clause (ii)
            filed by or against such person has been converted, as of
            such date, to a case in which liquidation is sought), and
              (II) such case has not, as of the proposed termination
            date, been dismissed.
          (ii) Reorganization in bankruptcy or insolvency proceedings
            The requirements of this clause are met by a person if - 
              (I) such person has filed, or has had filed against such
            person, as of the proposed termination date, a petition
            seeking reorganization in a case under title 11 or under
            any similar law of a State or political subdivision of a
            State (or a case described in clause (i) filed by or
            against such person has been converted, as of such date, to
            such a case in which reorganization is sought),
              (II) such case has not, as of the proposed termination
            date, been dismissed,
              (III) such person timely submits to the corporation any
            request for the approval of the bankruptcy court (or other
            appropriate court in a case under such similar law of a
            State or political subdivision) of the plan termination,
            and
              (IV) the bankruptcy court (or such other appropriate
            court) determines that, unless the plan is terminated, such
            person will be unable to pay all its debts pursuant to a
            plan of reorganization and will be unable to continue in
            business outside the chapter 11 reorganization process and
            approves the termination.
          (iii) Termination required to enable payment of debts while
            staying in business or to avoid unreasonably burdensome
            pension costs caused by declining workforce
            The requirements of this clause are met by a person if such
          person demonstrates to the satisfaction of the corporation
          that - 
              (I) unless a distress termination occurs, such person
            will be unable to pay such person's debts when due and will
            be unable to continue in business, or
              (II) the costs of providing pension coverage have become
            unreasonably burdensome to such person, solely as a result
            of a decline of such person's workforce covered as
            participants under all single-employer plans of which such
            person is a contributing sponsor.
        (C) Notification of determinations by the corporation
          The corporation shall notify the plan administrator as soon
        as practicable of its determinations made pursuant to
        subparagraph (B).
        (D) Disclosure of termination information
          (i) In general
            A plan administrator that has filed a notice of intent to
          terminate under subsection (a)(2) shall provide to an
          affected party any information provided to the corporation
          under subsection (a)(2) not later than 15 days after - 
              (I) receipt of a request from the affected party for the
            information; or
              (II) the provision of new information to the corporation
            relating to a previous request.
          (ii) Confidentiality
            (I) In general
              The plan administrator shall not provide information
            under clause (i) in a form that includes any information
            that may directly or indirectly be associated with, or
            otherwise identify, an individual participant or
            beneficiary.
            (II) Limitation
              A court may limit disclosure under this subparagraph of
            confidential information described in section 552(b) of
            title 5 to any authorized representative of the
            participants or beneficiaries that agrees to ensure the
            confidentiality of such information.
          (iii) Form and manner of information; charges
            (I) Form and manner
              The corporation may prescribe the form and manner of the
            provision of information under this subparagraph, which
            shall include delivery in written, electronic, or other
            appropriate form to the extent that such form is reasonably
            accessible to individuals to whom the information is
            required to be provided.
            (II) Reasonable charges
              A plan administrator may charge a reasonable fee for any
            information provided under this subparagraph in other than
            electronic form.
          (iv) Authorized representative
            For purposes of this subparagraph, the term "authorized
          representative" means any employee organization representing
          participants in the pension plan.
      (3) Termination procedure
        (A) Determinations by the corporation relating to plan
          sufficiency for guaranteed benefits and for benefit
          liabilities
          If the corporation determines that the requirements for a
        distress termination set forth in paragraphs (1) and (2) are
        met, the corporation shall - 
            (i) determine that the plan is sufficient for guaranteed
          benefits (as of the termination date) or that the corporation
          is unable to make such determination on the basis of
          information made available to the corporation,
            (ii) determine that the plan is sufficient for benefit
          liabilities (as of the termination date) or that the
          corporation is unable to make such determination on the basis
          of information made available to the corporation, and
            (iii) notify the plan administrator of the determinations
          made pursuant to this subparagraph as soon as practicable.
        (B) Implementation of termination
          After the corporation notifies the plan administrator of its
        determinations under subparagraph (A), the termination of the
        plan shall be carried out as soon as practicable, as provided
        in clause (i), (ii), or (iii).
          (i) Cases of sufficiency for benefit liabilities
            In any case in which the corporation determines that the
          plan is sufficient for benefit liabilities, the plan
          administrator shall proceed to distribute the plan's assets,
          and make certification to the corporation with respect to
          such distribution, in the manner described in subsection
          (b)(3) of this section, and shall take such other actions as
          may be appropriate to carry out the termination of the plan.
          (ii) Cases of sufficiency for guaranteed benefits without a
            finding of sufficiency for benefit liabilities
            In any case in which the corporation determines that the
          plan is sufficient for guaranteed benefits, but further
          determines that it is unable to determine that the plan is
          sufficient for benefit liabilities on the basis of the
          information made available to it, the plan administrator
          shall proceed to distribute the plan's assets in the manner
          described in subsection (b)(3) of this section, make
          certification to the corporation that the distribution has
          occurred, and take such actions as may be appropriate to
          carry out the termination of the plan.
          (iii) Cases without any finding of sufficiency
            In any case in which the corporation determines that it is
          unable to determine that the plan is sufficient for
          guaranteed benefits on the basis of the information made
          available to it, the corporation shall commence proceedings
          in accordance with section 1342 of this title.
        (C) Finding after authorized commencement of termination that
          plan is unable to pay benefits
          (i) Finding with respect to benefit liabilities which are not
            guaranteed benefits
            If, after the plan administrator has begun to terminate the
          plan as authorized under subparagraph (B)(i), the plan
          administrator finds that the plan is unable, or will be
          unable, to pay benefit liabilities which are not benefits
          guaranteed by the corporation under section 1322 of this
          title, the plan administrator shall notify the corporation of
          such finding as soon as practicable thereafter.
          (ii) Finding with respect to guaranteed benefits
            If, after the plan administrator has begun to terminate the
          plan as authorized by subparagraph (B)(i) or (ii), the plan
          administrator finds that the plan is unable, or will be
          unable, to pay all benefits under the plan which are
          guaranteed by the corporation under section 1322 of this
          title, the plan administrator shall notify the corporation of
          such finding as soon as practicable thereafter. If the
          corporation concurs in the finding of the plan administrator
          (or the corporation itself makes such a finding), the
          corporation shall institute appropriate proceedings under
          section 1342 of this title.
        (D) Administration of the plan during interim period
          (i) In general
            The plan administrator shall - 
              (I) meet the requirements of clause (ii) for the period
            commencing on the date on which the plan administrator
            provides a notice of distress termination to the
            corporation under subsection (a)(2) of this section and
            ending on the date on which the plan administrator receives
            notification from the corporation of its determinations
            under subparagraph (A), and
              (II) meet the requirements of clause (ii) commencing on
            the date on which the plan administrator or the corporation
            makes a finding under subparagraph (C)(ii).
          (ii) Requirements
            The requirements of this clause are met by the plan
          administrator if the plan administrator - 
              (I) refrains from distributing assets or taking any other
            actions to carry out the proposed termination under this
            subsection,
              (II) pays benefits attributable to employer
            contributions, other than death benefits, only in the form
            of an annuity,
              (III) does not use plan assets to purchase irrevocable
            commitments to provide benefits from an insurer, and
              (IV) continues to pay all benefit liabilities under the
            plan, but, commencing on the proposed termination date,
            limits the payment of benefits under the plan to those
            benefits which are guaranteed by the corporation under
            section 1322 of this title or to which assets are required
            to be allocated under section 1344 of this title.

          In the event the plan administrator is later determined not
          to have met the requirements for distress termination, any
          benefits which are not paid solely by reason of compliance
          with subclause (IV) shall be due and payable immediately
          (together with interest, at a reasonable rate, in accordance
          with regulations of the corporation).
    (d) Sufficiency
      For purposes of this section - 
      (1) Sufficiency for benefit liabilities
        A single-employer plan is sufficient for benefit liabilities if
      there is no amount of unfunded benefit liabilities under the
      plan.
      (2) Sufficiency for guaranteed benefits
        A single-employer plan is sufficient for guaranteed benefits if
      there is no amount of unfunded guaranteed benefits under the
      plan.
    (e) Limitation on the conversion of a defined benefit plan to a
      defined contribution plan
      The adoption of an amendment to a plan which causes the plan to
    become a plan described in section 1321(b)(1) of this title
    constitutes a termination of the plan. Such an amendment may take
    effect only after the plan satisfies the requirements for standard
    termination under subsection (b) of this section or distress
    termination under subsection (c) of this section.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4041, Sept. 2, 1974, 88 Stat. 1020;
    Pub. L. 96-364, title IV, Sec. 403(d), Sept. 26, 1980, 94 Stat.
    1301; Pub. L. 99-272, title XI, Secs. 11007, 11008(a), (b), 11009,
    Apr. 7, 1986, 100 Stat. 244, 247, 248; Pub. L. 100-203, title IX,
    Secs. 9312(c)(1), (2), 9313(a)(1)-(2)(E), (b)(1)-(5), 9314(a), Dec.
    22, 1987, 101 Stat. 1330-363 to 1330-366; Pub. L. 101-239, title
    VII, Secs. 7881(f)(7), (g)(1)-(6), 7893(c), (d), Dec. 19, 1989, 103
    Stat. 2440, 2441, 2447; Pub. L. 103-465, title VII, Secs.
    776(b)(3), 778(a)(1), (b)(1), Dec. 8, 1994, 108 Stat. 5048-5050;
    Pub. L. 109-280, title IV, Sec. 409(a), title V, Sec. 506(a), Aug.
    17, 2006, 120 Stat. 933, 946.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Chapter 11, referred to in subsec. (c)(2)(B)(ii)(IV), probably
    means chapter 11 of Title 11, Bankruptcy.


-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (b)(5). Pub. L. 109-280, Sec. 409(a), added par.
    (5).
      Subsec. (c)(1)(C). Pub. L. 109-280, Sec. 506(a)(2), substituted
    "subparagraphs (B) and (D)" for "subparagraph (B)".
      Subsec. (c)(2)(D). Pub. L. 109-280, Sec. 506(a)(1), added subpar.
    (D).
      1994 - Subsec. (b)(2)(C)(i)(I). Pub. L. 103-465, Sec.
    778(a)(1)(A), added subcl. (I) and struck out former subcl. (I)
    which read as follows: "It has reason to believe that any
    requirement of subsection (a)(2) of this section or subparagraph
    (A) or (B) has not been met, or".
      Subsec. (b)(2)(C)(i)(III). Pub. L. 103-465, Sec. 778(a)(1)(B),
    (C), added subcl. (III).
      Subsec. (b)(3)(A)(ii). Pub. L. 103-465, Sec. 776(b)(3), inserted
    at end "A transfer of assets to the corporation in accordance with
    section 1350 of this title on behalf of a missing participant shall
    satisfy this subparagraph with respect to such participant."
      Subsec. (c)(2)(B)(i)(I). Pub. L. 103-465, Sec. 778(b)(1),
    inserted "Federal law or" after "under any similar".
      1989 - Subsec. (b)(2)(A). Pub. L. 101-239, Sec. 7881(g)(6),
    realigned margin of last sentence.
      Subsec. (b)(2)(B). Pub. L. 101-239, Sec. 7893(c), realigned
    margin of last sentence.
      Subsec. (b)(3)(B). Pub. L. 101-239, Sec. 7881(g)(4), inserted
    period at end.
      Subsec. (c)(2)(A)(ii). Pub. L. 101-239, Sec. 7881(g)(3), in
    introductory provisions, inserted "unless the corporation
    determines the information is not necessary for purposes of
    paragraph (3)(A) or section 1362 of this title," before
    "certification", in subcl. (I), inserted "and, if applicable, the
    proposed distribution date" after "termination date", and in
    subcls. (II) to (V), substituted "dates" for "date".
      Subsec. (c)(2)(A)(iii)(II). Pub. L. 101-239, Sec. 7881(f)(7)(A),
    (B), struck out "(or its designee under section 1349(b) of this
    title)" before "to be able" and substituted "section 1322(c) of
    this title" for "section 1349 of this title".
      Subsec. (c)(2)(B). Pub. L. 101-239, Sec. 7881(g)(2), substituted
    "(as of the proposed termination date)" for "(as of the termination
    date)".
      Subsec. (c)(2)(B)(i), (ii). Pub. L. 101-239, Sec. 7881(g)(5),
    made clarifying amendment to directory language of Pub. L. 100-203,
    Sec. 9313(b)(3), see 1987 Amendment note below.
      Subsec. (c)(3)(C)(i). Pub. L. 101-239, Sec. 7881(f)(7)(C), struck
    out at end "If the corporation concurs in the finding of the plan
    administrator (or the corporation itself makes such a finding) the
    corporation shall take the actions set forth in subparagraph
    (B)(ii)(II) relating to the trust established for purposes of
    section 1349 of this title."
      Subsec. (c)(3)(D). Pub. L. 101-239, Sec. 7893(d)(1), realigned
    margins.
      Subsec. (c)(3)(D)(ii)(I). Pub. L. 101-239, Sec. 7893(d)(2),
    substituted "under this subsection" for "of this subsection".
      Subsec. (d)(1). Pub. L. 101-239, Sec. 7881(g)(1), substituted
    "sufficient for benefit liabilities" for "sufficient for benefit
    commitments".
      1987 - Subsec. (b)(1)(D). Pub. L. 100-203, Sec. 9313(a)(1),
    amended subpar. (D) generally. Prior to amendment, subpar. (D) read
    as follows: "when the final distribution of assets occurs, the plan
    is sufficient for benefit commitments (determined as of the
    termination date)."
      Subsec. (b)(2)(A). Pub. L. 100-203, Sec. 9314(a)(1)(B), inserted
    at end "Clause (i) and clause (iii)(I) shall not apply to a plan
    described in section 412(i) of title 26."
      Subsec. (b)(2)(A)(i). Pub. L. 100-203, Sec. 9313(a)(2)(A),
    substituted "benefit liabilities" for "benefit commitments" in
    subcls. (II) and (III).
      Subsec. (b)(2)(A)(iii). Pub. L. 100-203, Sec. 9314(a)(1)(A),
    added cl. (iii) and struck out former cl. (iii) which read as
    follows: "certification by the plan administrator that the
    information on which the enrolled actuary based the certification
    under clause (i) and the information provided to the corporation
    under clause (ii) are accurate and complete."
      Subsec. (b)(2)(B). Pub. L. 100-203, Sec. 9313(a)(2)(B),
    substituted "the amount of the benefit liabilities (if any)
    attributable to such person" for "the amount of such person's
    benefit commitments (if any)" in cl. (i), and "such benefit
    liabilities" for "such benefit commitments" in cl. (ii).
      Subsec. (b)(2)(C)(i)(II), (D)(ii). Pub. L. 100-203, Sec.
    9313(a)(2)(A), substituted "benefit liabilities" for "benefit
    commitments".
      Subsec. (b)(3)(A)(i). Pub. L. 100-203, Sec. 9313(a)(2)(C)(i),
    added cl. (i) and struck out former cl. (i) which read as follows:
    "purchase irrevocable commitments from an insurer to provide the
    benefit liabilities under the plan and all other benefits (if any)
    under the plan to which assets are required to be allocated under
    section 1344 of this title, or".
      Pub. L. 100-203, Sec. 9313(a)(2)(A), substituted "benefit
    liabilities" for "benefit commitments".
      Subsec. (b)(3)(A)(ii). Pub. L. 100-203, Sec. 9313(a)(2)(C)(i),
    added cl. (ii) and struck out former cl. (ii) which read as
    follows: "in accordance with the provisions of the plan and any
    applicable regulations of the corporation, otherwise fully provide
    the benefit liabilities under the plan and all other benefits (if
    any) under the plan to which assets are required to be allocated
    under section 1344 of this title."
      Pub. L. 100-203, Sec. 9313(a)(2)(A), substituted "benefit
    liabilities" for "benefit commitments".
      Subsec. (b)(3)(B). Pub. L. 100-203, Sec. 9313(a)(2)(C)(ii),
    substituted "so as to pay all benefit liabilities under the plan"
    for "so as to pay the benefit liabilities under the plan and all
    other benefits under the plan to which assets are required to be
    allocated under section 1344 of this title."
      Pub. L. 100-203, Sec. 9313(a)(2)(A), substituted "benefit
    liabilities" for "benefit commitments".
      Subsec. (c)(2)(A). Pub. L. 100-203, Sec. 9314(a)(1)(B), inserted
    at end "Clause (ii) and clause (iv)(I) shall not apply to a plan
    described in section 412(i) of title 26."
      Subsec. (c)(2)(A)(ii). Pub. L. 100-203, Sec. 9313(a)(2)(D),
    substituted "benefit liabilities" for "benefit commitments" in
    subcls. (II) and (III).
      Subsec. (c)(2)(A)(iii). Pub. L. 100-203, Sec. 9313(a)(2)(D),
    substituted "benefit liabilities" for "benefit commitments" in
    introductory provision.
      Subsec. (c)(2)(A)(iv). Pub. L. 100-203, Sec. 9314(a)(2)(A), added
    cl. (iv) and struck out former cl. (iv) which read as follows:
    "certification by the plan administrator that the information on
    which the enrolled actuary based the certifications under clause
    (ii) and the information provided to the corporation under clauses
    (i) and (iii) are accurate and complete."
      Subsec. (c)(2)(B). Pub. L. 100-203, Sec. 9313(b)(1)(A),
    substituted "a member" for "a substantial member" in introductory
    provisions.
      Subsec. (c)(2)(B)(i). Pub. L. 100-203, Sec. 9313(b)(3), as
    amended by Pub. L. 101-239, Sec. 7881(g)(5), substituted "proposed
    termination date" for "termination date" in subcls. (I) and (II).
      Pub. L. 100-203, Sec. 9313(b)(4), inserted "(or a case described
    in clause (ii) filed by or against such person has been converted,
    as of such date, to a case in which liquidation is sought)" in
    subcl. (I).
      Subsec. (c)(2)(B)(ii)(I). Pub. L. 100-203, Sec. 9313(b)(3), as
    amended by Pub. L. 101-239, Sec. 7881(g)(5), substituted "proposed
    termination date" for "termination date".
      Subsec. (c)(2)(B)(ii)(II). Pub. L. 100-203 Sec. 9313(b)(5)(A),
    struck out "and" at end.
      Pub. L. 100-203, Sec. 9313(b)(3), as amended by Pub. L. 101-239,
    Sec. 7881(g)(5), substituted "proposed termination date" for
    "termination date".
      Subsec. (c)(2)(B)(ii)(III). Pub. L. 100-203, Sec. 9313(b)(5)(C),
    added subcl. (III). Former subcl. (III) redesignated (IV).
      Subsec. (c)(2)(B)(ii)(IV). Pub. L. 100-203, Sec. 9313(b)(2),
    (5)(B), (D), redesignated former subcl. (III) as (IV) and
    substituted "(or such other appropriate court) determines that,
    unless the plan is terminated, such person will be unable to pay
    all its debts pursuant to a plan of reorganization and will be
    unable to continue in business outside the chapter 11
    reorganization process and approves the termination" for "(or other
    appropriate court in a case under such similar law of a State or
    political subdivision) approves the termination".
      Subsec. (c)(2)(C), (D). Pub. L. 100-203, Sec. 9313(b)(1)(B),
    redesignated former subpar. (D) as (C) and struck out former
    subpar. (C) which read as follows: "For purposes of subparagraph
    (B), the term 'substantial member' of a controlled group means a
    person whose assets comprise 5 percent or more of the total assets
    of the controlled group as a whole."
      Subsec. (c)(3)(A). Pub. L. 100-203, Sec. 9313(a)(2)(D),
    substituted "benefit liabilities" for "benefit commitments" in
    heading and in cl. (ii).
      Subsec. (c)(3)(B)(i). Pub. L. 100-203, Sec. 9313(a)(2)(D),
    substituted in heading and text "benefit liabilities" for "benefit
    commitments".
      Subsec. (c)(3)(B)(ii). Pub. L. 100-203, Sec. 9313(a)(2)(D),
    substituted in heading and text "benefit liabilities" for "benefit
    commitments".
      Pub. L. 100-203, Sec. 9312(c)(1), struck out former subcl. (I)
    designation and substituted comma for dash before "the plan
    administrator", substituted period for ", and" after "termination
    of the plan", and struck out former subcl. (II) which read as
    follows: "the corporation shall establish a separate trust in
    connection with the plan for purposes of section 1349 of this
    title."
      Subsec. (c)(3)(B)(iii). Pub. L. 100-203, Sec. 9312(c)(2), struck
    out former subcl. (I) designation and substituted comma for dash
    before "the corporation shall commence", substituted period for ",
    and" after "section 1342 of this title", and struck out former
    subcl. (II) which read as follows: "the corporation shall establish
    a separate trust in connection with the plan for purposes of
    section 1349 of this title unless the corporation determines that
    all benefit commitments under the plan are benefits guaranteed by
    the corporation under section 1322 of this title."
      Subsec. (c)(3)(C)(i). Pub. L. 100-203, Sec. 9313(a)(2)(D),
    substituted in heading and text "benefit liabilities" for "benefit
    commitments".
      Subsec. (c)(3)(D)(ii)(IV). Pub. L. 100-203, Sec. 9313(a)(2)(D),
    substituted "benefit liabilities" for "benefit commitments".
      Subsec. (d)(1). Pub. L. 100-203, Sec. 9313(a)(2)(E), substituted
    in text, "no amount of unfunded benefit liabilities" for "no amount
    of unfunded benefit commitments" and in heading, "benefit
    liabilities" for "benefit commitments".
      1986 - Subsec. (a). Pub. L. 99-272, Sec. 11007(a), added subsec.
    (a) relating to general rules governing single-employer plan
    terminations and struck out former subsec. (a) relating to filing
    of notice that the plan is to be terminated.
      Subsec. (b). Pub. L. 99-272, Secs. 11007(a), 11008(a), added
    subsec. (b) relating to standard termination of single-employer
    plans and struck out former subsec. (b) relating to notice of
    sufficiency of plan assets.
      Subsec. (c). Pub. L. 99-272, Secs. 11007(a), 11009(a), added
    subsec. (c) relating to distress termination of single-employer
    plans and struck out former subsec. (c) relating to a finding and
    notice of inability to determine that the assets of a plan are
    sufficient.
      Subsec. (d). Pub. L. 99-272, Sec. 11007(b), amended subsec. (d)
    generally, substituting provisions relating to sufficiency for
    benefit commitments and for guaranteed benefits, for provisions
    relating to an extension of the 90-day period upon written
    agreement.
      Subsec. (e). Pub. L. 99-272, Sec. 11009(b), redesignated subsec.
    (f) as (e) and struck out former subsec. (e) which related to
    notification and appropriate proceedings upon a finding after
    authorized commencement of termination that the plan is unable to
    pay basic benefits when due.
      Subsec. (f). Pub. L. 99-272, Sec. 11009(b)(2), redesignated
    subsec. (f) as (e).
      Pub. L. 99-272, Sec. 11008(b), amended subsec. (f) generally,
    substituting provisions relating to limitation on the conversion of
    a defined benefit plan to a defined contribution plan, for
    provisions relating to amendment of a plan with respect to which
    basic benefits are guaranteed.
      1980 - Subsec. (a). Pub. L. 96-364, Sec. 403(d)(2), inserted
    "single-employer" after "termination of a".
      Subsec. (g). Pub. L. 96-364, Sec. 403(d)(3), struck out subsec.
    (g) which related to petition to the appropriate court for
    appointment of a trustee.

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Pub. L. 109-280, title IV, Sec. 409(b), Aug. 17, 2006, 120 Stat.
    934, provided that: "The amendments made by this section [amending
    this section] shall apply to any transaction or series of
    transactions occurring on and after the date of the enactment of
    this Act [Aug. 17, 2006]."
      Pub. L. 109-280, title V, Sec. 506(c), Aug. 17, 2006, 120 Stat.
    948, provided that:
      "(1) In general. - The amendments made by this section [amending
    this section and section 1342 of this title] shall apply to any
    plan termination under title IV of the Employee Retirement Income
    Security Act of 1974 (29 U.S.C. 1301 et seq.) with respect to which
    the notice of intent to terminate (or in the case of a termination
    by the Pension Benefit Guaranty Corporation, a notice of
    determination under section 4042 of such Act (29 U.S.C. 1342))
    occurs after the date of enactment of this Act [Aug. 17, 2006].
      "(2) Transition rule. - If notice under section 4041(c)(2)(D) or
    4042(c)(3) of the Employee Retirement Income Security Act of 1974
    [29 U.S.C. 1341(c)(2)(D), 1342(c)(3)] (as added by this section)
    would otherwise be required to be provided before the 90th day
    after the date of the enactment of this Act [Aug. 17, 2006], such
    notice shall not be required to be provided until such 90th day."

                     EFFECTIVE DATE OF 1994 AMENDMENT                 
      Amendment by section 776(b)(3) of Pub. L. 103-465 effective with
    respect to distributions that occur in plan years commencing on or
    after Jan. 1, 1996, see section 776(e) of Pub. L. 103-465, set out
    as a note under section 1056 of this title.
      Section 778(a)(2) of Pub. L. 103-465 provided that: "The
    amendments made by this subsection [amending this section] shall
    apply to any plan termination under section 4041(b) of the Employee
    Retirement Income Security Act of 1974 [subsec. (b) of this
    section] with respect to which the Pension Benefit Guaranty
    Corporation has not, as of the date of enactment of this Act [Dec.
    8, 1994], issued a notice of noncompliance that has become final,
    or otherwise issued a final determination that the plan termination
    is nullified."
      Section 778(b)(2) of Pub. L. 103-465 provided that: "The
    amendment made by this subsection [amending this section] shall be
    effective as if included in the Single-Employer Pension Plan
    Amendments Act of 1986 [Pub. L. 99-272, title XI]."

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by section 7881(f)(7), (g)(1)-(6) of Pub. L. 101-239
    effective, except as otherwise provided, as if included in the
    provision of the Pension Protection Act, Pub. L. 100-203, Secs.
    9302-9346, to which such amendment relates, see section 7882 of
    Pub. L. 101-239, set out as a note under section 401 of Title 26,
    Internal Revenue Code.
      Amendment by section 7893(c), (d) of Pub. L. 101-239 effective as
    if included in the provision of the Single-Employer Pension Plan
    Amendments Act of 1986, Pub. L. 99-272, title XI, to which such
    amendment relates, see section 7893(h) of Pub. L. 101-239, set out
    as a note under section 1002 of this title.

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Amendment by section 9312(c)(1), (2) of Pub. L. 100-203
    applicable with respect to plan terminations under section 1341 of
    this title with respect to which notices of intent to terminate are
    provided under section 1341(a)(2) of this title after Dec. 17,
    1987, and plan terminations with respect to which proceedings are
    instituted by the Pension Benefit Guaranty Corporation under
    section 1342 of this title after that date, see section 9312(d)(1)
    of Pub. L. 100-203, as amended, set out as a note under section
    1301 of this title.
      Amendment by section 9313(a)(1)-(2)(E), (b)(1)-(5) of Pub. L. 100-
    203 applicable with respect to plan terminations under section
    1341 of this title with respect to which notices of intent to
    terminate are provided under section 1341(a)(2) of this title after
    Dec. 17, 1987, see section 9313(c) of Pub. L. 100-203, set out as a
    note under section 1301 of this title.

                     EFFECTIVE DATE OF 1986 AMENDMENT                 
      Section 11019 of title XI of Pub. L. 99-272 provided that:
      "(a) In General. - Except as otherwise provided in this title,
    the amendments made by this title [see Short Title of 1986
    Amendment note set out under section 1001 of this title] shall be
    effective as of January 1, 1986, except that such amendments shall
    not apply with respect to terminations for which - 
        "(1) notices of intent to terminate were filed with the Pension
      Benefit Guaranty Corporation under section 4041 of the Employee
      Retirement Income Security Act of 1974 [29 U.S.C. 1341] before
      such date, or
        "(2) proceedings were commenced under section 4042 of such Act
      [29 U.S.C. 1342] before such date.
      "(b) Transitional Rules. - 
        "(1) In general. - In the case of a single-employer plan
      termination for which a notice of intent to terminate was filed
      with the Pension Benefit Guaranty Corporation under section 4041
      of the Employee Retirement Income Security Act of 1974 (as in
      effect before the amendments made by this title) [29 U.S.C. 1341]
      on or after January 1, 1986, but before the date of the enactment
      of this Act [Apr. 7, 1986], the amendments made by this title
      [see Short Title of 1986 Amendment note set out under section
      1001 of this title] shall apply with respect to such termination,
      as modified by paragraphs (2) and (3).
        "(2) Deemed compliance with notice requirements. - The
      requirements of subsections (a)(2), (b)(1)(A), and (c)(1)(A) of
      section 4041 of the Employee Retirement Income Security Act of
      1974 (as amended by this title) [29 U.S.C. 1341] shall be
      considered to have been met with respect to a termination
      described in paragraph (1) if - 
          "(A) the plan administrator provided notice to the
        participants in the plan regarding the termination in
        compliance with applicable regulations of the Pension Benefit
        Guaranty Corporation as in effect on the date of the notice,
        and
          "(B) the notice of intent to terminate provided to the
        Pension Benefit Guaranty Corporation in connection with the
        termination was filed with the Corporation not less than 10
        days before the proposed date of termination specified in the
        notice.
      For purposes of section 4041 of such Act (as amended by this
      title), the proposed date of termination specified in the notice
      of intent to terminate referred to in subparagraph (B) shall be
      considered the proposed termination date.
        "(3) Special termination procedures. - 
          "(A) In general. - This paragraph shall apply with respect to
        any termination described in paragraph (1) if, within 90 days
        after the date of enactment of this Act [Apr. 7, 1986], the
        plan administrator notifies the Corporation in writing - 
            "(i) that the plan administrator wishes the termination to
          proceed as a standard termination under section 4041(b) of
          the Employee Retirement Income Security Act of 1974 (as
          amended by this title) [29 U.S.C. 1341(b)] in accordance with
          subparagraph (B),
            "(ii) that the plan administrator wishes the termination to
          proceed as a distress termination under section 4041(c) of
          such Act (as amended by this title) in accordance with
          subparagraph (C), or
            "(iii) that the plan administrator wishes to stop the
          termination proceedings in accordance with subparagraph (D).
          "(B) Terminations proceeding as standard termination. - 
            "(i) Terminations for which sufficiency notices have not
          been issued. - 
         "(I) In general. - In the case of a plan termination described
          in paragraph (1) with respect to which the Corporation has
          been provided the notification described in subparagraph
          (A)(i) and with respect to which a notice of sufficiency has
          not been issued by the Corporation before the date of the
          enactment of this Act, if, during the 90-day period
          commencing on the date of the notice required in subclause
          (II), all benefit commitments under the plan have been
          satisfied, the termination shall be treated as a standard
          termination under section 4041(b) of such Act (as amended by
          this title).
         "(II) Special notice regarding sufficiency for terminations
          for which notices of sufficiency have not been issued as of
          date of enactment. - In the case of a plan termination
          described in paragraph (1) with respect to which the
          Corporation has been provided the notification described in
          subparagraph (A)(i) and with respect to which a notice of
          sufficiency has not been issued by the Corporation before the
          date of the enactment of this Act, the Corporation shall make
          the determinations described in section 4041(c)(3)(A)(i) and
          (ii) (as amended by this title) and notify the plan
          administrator of such determinations as provided in section
          4041(c)(3)(A)(iii) (as amended by this title).
            "(ii) Terminations for which notices of sufficiency have
          been issued. - In the case of a plan termination described in
          paragraph (1) with respect to which the Corporation has been
          provided the notification described in subparagraph (A)(i)
          and with respect to which a notice of sufficiency has been
          issued by the Corporation before the date of the enactment of
          this Act, clause (i)(I) shall apply, except that the 90-day
          period referred to in clause (i)(I) shall begin on the date
          of the enactment of this Act.
          "(C) Terminations proceeding as distress termination. - In
        the case of a plan termination described in paragraph (1) with
        respect to which the Corporation has been provided the
        notification described in subparagraph (A)(ii), if the
        requirements of section 4041(c)(2)(B) of such Act (as amended
        by this title) are met, the termination shall be treated as a
        distress termination under section 4041(c) of such Act (as
        amended by this title).
          "(D) Termination of proceedings by plan administrator. - 
            "(i) In general. - Except as provided in clause (ii), in
          the case of a plan termination described in paragraph (1)
          with respect to which the Corporation has been provided the
          notification described in subparagraph (A)(iii), the
          termination shall not take effect.
            "(ii) Terminations with respect to which final distribution
          of assets has commenced. - Clause (i) shall not apply with
          respect to a termination with respect to which the final
          distribution of assets has commenced before the date of the
          enactment of this Act unless, within 90 days after the date
          of the enactment of this Act, the plan has been restored in
          accordance with procedures issued by the Corporation pursuant
          to subsection (c).
          "(E) Authority of corporation to extend 90-day periods to
        permit standard termination. - The Corporation may, on a case-
        by-case basis in accordance with subsection (c), provide for
        extensions of the applicable 90-day period referred to in
        clause (i) or (ii) of subparagraph (B) if it is demonstrated to
        the satisfaction of the Corporation that - 
            "(i) the plan could not otherwise, pursuant to the
          preceding provisions of this paragraph, terminate in a
          termination treated as a standard termination under section
          4041(b) of the Employee Retirement Income Security Act of
          1974 (as amended by this title), and
            "(ii) the extension would result in a greater likelihood
          that benefit commitments under the plan would be paid in
          full,
      except that any such period may not be so extended beyond one
      year after the date of the enactment of this Act.
      "(c) Authority To Prescribe Temporary Procedures. - The Pension
    Benefit Guaranty Corporation may prescribe temporary procedures for
    purposes of carrying out the amendments made by this title [see
    Short Title of 1986 Amendment note set out under section 1001 of
    this title] during the 180-day period beginning on the date
    described in subsection (a)."

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-364 effective Sept. 26, 1980, except as
    specifically provided, see section 1461(e) of this title.

    60-DAY EXTENSION BY PENSION BENEFIT GUARANTY CORPORATION FOR NOTICE
                             OF NONCOMPLIANCE
      Section 11008(c) of Pub. L. 99-272 provided that: "In the case of
    a standard termination of a plan under section 4041(b) of the
    Employee Retirement Income Security Act of 1974 (as amended by this
    section) [29 U.S.C. 1341(b)] with respect to which a notice of
    intent to terminate is filed before 120 days after the date of the
    enactment of this Act [Apr. 7, 1986], the Pension Benefit Guaranty
    Corporation may, without the consent of the plan administrator,
    extend the 60-day period under section 4041(b)(2)(C)(i) of such Act
    (as so amended) for a period not to exceed 60 days."

      SPECIAL TEMPORARY RULE FOR TERMINATION OF SINGLE-EMPLOYER PLAN  
      Section 11008(d) of Pub. L. 99-272 provided that:
      "(1) Requirements to be met before final distribution of assets. -
     In the case of the termination of a single-employer plan
    described in paragraph (2) with respect to which the amount payable
    to the employer pursuant to section 4044(d) [29 U.S.C. 1344(d)]
    exceeds $1,000,000 (determined as of the proposed date of final
    distribution of assets), the final distribution of assets pursuant
    to such termination may not occur unless the Pension Benefit
    Guaranty Corporation - 
        "(A) determines that the assets of the plan are sufficient for
      benefit commitments (within the meaning of section 4041(d)(1) of
      the Employee Retirement Income Security Act of 1974 (as amended
      by section 11007) [29 U.S.C. 1341(d)(1)]) under the plan, and
        "(B) issues to the plan administrator a written notice setting
      forth the determination described in subparagraph (A).
      "(2) Plans to which subsection applies. - A single-employer plan
    is described in this paragraph if - 
        "(A) the plan administrator has filed a notice of intent to
      terminate with the Pension Benefit Guaranty Corporation, and - 
          "(i) the filing was made before January 1, 1986, and the
        Corporation has not issued a notice of sufficiency for such
        plan before the date of the enactment of this Act [Apr. 7,
        1986], or
          "(ii) the filing is made on or after January 1, 1986, and
        before 60 days after the date of the enactment of this Act and
        the Corporation has not issued a notice of sufficiency for such
        plan before the date of the enactment of this Act, and
        "(B) of the persons who are (as of the termination date)
      participants in the plan, the lesser of 10 percent or 200 have
      filed complaints with the Corporation regarding such termination -
       
          "(i) in the case of plans described in subparagraph (A)(i),
        before 15 days after the date of the enactment of this Act, or
          "(ii) in any other case, before the later of 15 days after
        the date of the enactment of this Act or 45 days after the date
        of the filing of such notice.
      "(3) Consideration of complaints. - The Corporation shall
    consider and respond to such complaints not later than 90 days
    after the date on which the Corporation makes the determination
    described in paragraph (1)(A). The Corporation may hold informal
    hearings to expedite consideration of such complaints. Any such
    hearing shall be exempt from the requirements of chapter 5 of title
    5, United States Code.
      "(4) Delay on issuance of notice. - 
        "(A) General rule. - Except as provided in subparagraph (B),
      the Corporation shall not issue any notice described in paragraph
      (1)(B) until 90 days after the date on which the Corporation
      makes the determination described in paragraph (1)(A).
        "(B) Exception in cases of substantial business hardship. -
      Except in the case of an acquisition, takeover, or leveraged
      buyout, the preceding provisions of this subsection shall not
      apply if the contributing sponsor demonstrates to the
      satisfaction of the Corporation that the contributing sponsor is
      experiencing substantial business hardship. For purposes of this
      subparagraph, a contributing sponsor shall be considered as
      experiencing substantial business hardship if the contributing
      sponsor has been operating, and can demonstrate that the
      contributing sponsor will continue to operate, at an economic
      loss."

-FOOTNOTE-               

    (!1) So in original. Probably should be "benefit liabilities".

    (!2) So in original. The word "a" probably should appear.


-End-



-CITE-
    29 USC Sec. 1341a                                           01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle C - Terminations

-HEAD-
    Sec. 1341a. Termination of multiemployer plans

-STATUTE-
    (a) Determinative factors
      Termination of a multiemployer plan under this section occurs as
    a result of - 
        (1) the adoption after September 26, 1980, of a plan amendment
      which provides that participants will receive no credit for any
      purpose under the plan for service with any employer after the
      date specified by such amendment;
        (2) the withdrawal of every employer from the plan, within the
      meaning of section 1383 of this title, or the cessation of the
      obligation of all employers to contribute under the plan; or
        (3) the adoption of an amendment to the plan which causes the
      plan to become a plan described in section 1321(b)(1) of this
      title.
    (b) Date of termination
      (1) The date on which a plan terminates under paragraph (1) or
    (3) of subsection (a) of this section is the later of - 
        (A) the date on which the amendment is adopted, or
        (B) the date on which the amendment takes effect.

      (2) The date on which a plan terminates under paragraph (2) of
    subsection (a) of this section is the earlier of - 
        (A) the date on which the last employer withdraws, or
        (B) the first day of the first plan year for which no employer
      contributions were required under the plan.
    (c) Duties of plan sponsor of amended plan
      Except as provided in subsection (f)(1) of this section, the plan
    sponsor of a plan which terminates under paragraph (2) of
    subsection (a) of this section shall - 
        (1) limit the payment of benefits to benefits which are
      nonforfeitable under the plan as of the date of the termination,
      and
        (2) pay benefits attributable to employer contributions, other
      than death benefits, only in the form of an annuity, unless the
      plan assets are distributed in full satisfaction of all
      nonforfeitable benefits under the plan.
    (d) Duties of plan sponsor of nonoperative plan
      The plan sponsor of a plan which terminates under paragraph (2)
    of subsection (a) of this section shall reduce benefits and suspend
    benefit payments in accordance with section 1441 of this title.
    (e) Amount of contribution of employer under amended plan for each
      plan year subsequent to plan termination date
      In the case of a plan which terminates under paragraph (1) or (3)
    of subsection (a) of this section, the rate of an employer's
    contributions under the plan for each plan year beginning on or
    after the plan termination date shall equal or exceed the highest
    rate of employer contributions at which the employer had an
    obligation to contribute under the plan in the 5 preceding plan
    years ending on or before the plan termination date, unless the
    corporation approves a reduction in the rate based on a finding
    that the plan is or soon will be fully funded.
    (f) Payment of benefits; reporting requirements for terminated
      plans and rules and standards for administration of such plans
      (1) The plan sponsor of a terminated plan may authorize the
    payment other than in the form of an annuity of a participant's
    entire nonforfeitable benefit attributable to employer
    contributions, other than a death benefit, if the value of the
    entire nonforfeitable benefit does not exceed $1,750. The
    corporation may authorize the payment of benefits under the terms
    of a terminated plan other than nonforfeitable benefits, or the
    payment other than in the form of an annuity of benefits having a
    value greater than $1,750, if the corporation determines that such
    payment is not adverse to the interest of the plan's participants
    and beneficiaries generally and does not unreasonably increase the
    corporation's risk of loss with respect to the plan.
      (2) The corporation may prescribe reporting requirements for
    terminated plans, and rules and standards for the administration of
    such plans, which the corporation considers appropriate to protect
    the interests of plan participants and beneficiaries or to prevent
    unreasonable loss to the corporation.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4041A, as added Pub. L. 96-364,
    title I, Sec. 103, Sept. 26, 1980, 94 Stat. 1216.)


-MISC1-
                              EFFECTIVE DATE                          
      Section effective Sept. 26, 1980, except as specifically
    provided, see section 1461(e) of this title.

-End-



-CITE-
    29 USC Sec. 1342                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle C - Terminations

-HEAD-
    Sec. 1342. Institution of termination proceedings by the
      corporation

-STATUTE-
    (a) Authority to institute proceedings to terminate a plan
      The corporation may institute proceedings under this section to
    terminate a plan whenever it determines that - 
        (1) the plan has not met the minimum funding standard required
      under section 412 of title 26, or has been notified by the
      Secretary of the Treasury that a notice of deficiency under
      section 6212 of title 26 has been mailed with respect to the tax
      imposed under section 4971(a) of title 26,
        (2) the plan will be unable to pay benefits when due,
        (3) the reportable event described in section 1343(c)(7) of
      this title has occurred, or
        (4) the possible long-run loss of the corporation with respect
      to the plan may reasonably be expected to increase unreasonably
      if the plan is not terminated.

    The corporation shall as soon as practicable institute proceedings
    under this section to terminate a single-employer plan whenever the
    corporation determines that the plan does not have assets available
    to pay benefits which are currently due under the terms of the
    plan. The corporation may prescribe a simplified procedure to
    follow in terminating small plans as long as that procedure
    includes substantial safeguards for the rights of the participants
    and beneficiaries under the plans, and for the employers who
    maintain such plans (including the requirement for a court decree
    under subsection (c) of this section). Notwithstanding any other
    provision of this subchapter, the corporation is authorized to pool
    assets of terminated plans for purposes of administration,
    investment, payment of liabilities of all such terminated plans,
    and such other purposes as it determines to be appropriate in the
    administration of this subchapter.
    (b) Appointment of trustee
      (1) Whenever the corporation makes a determination under
    subsection (a) of this section with respect to a plan or is
    required under subsection (a) of this section to institute
    proceedings under this section, it may, upon notice to the plan,
    apply to the appropriate United States district court for the
    appointment of a trustee to administer the plan with respect to
    which the determination is made pending the issuance of a decree
    under subsection (c) of this section ordering the termination of
    the plan. If within 3 business days after the filing of an
    application under this subsection, or such other period as the
    court may order, the administrator of the plan consents to the
    appointment of a trustee, or fails to show why a trustee should not
    be appointed, the court may grant the application and appoint a
    trustee to administer the plan in accordance with its terms until
    the corporation determines that the plan should be terminated or
    that termination is unnecessary. The corporation may request that
    it be appointed as trustee of a plan in any case.
      (2) Notwithstanding any other provision of this subchapter - 
        (A) upon the petition of a plan administrator or the
      corporation, the appropriate United States district court may
      appoint a trustee in accordance with the provisions of this
      section if the interests of the plan participants would be better
      served by the appointment of the trustee, and
        (B) upon the petition of the corporation, the appropriate
      United States district court shall appoint a trustee proposed by
      the corporation for a multiemployer plan which is in
      reorganization or to which section 1341a(d) of this title
      applies, unless such appointment would be adverse to the
      interests of the plan participants and beneficiaries in the
      aggregate.

      (3) The corporation and plan administrator may agree to the
    appointment of a trustee without proceeding in accordance with the
    requirements of paragraphs (1) and (2).
    (c) Adjudication that plan must be terminated
      (1) If the corporation is required under subsection (a) of this
    section to commence proceedings under this section with respect to
    a plan or, after issuing a notice under this section to a plan
    administrator, has determined that the plan should be terminated,
    it may, upon notice to the plan administrator, apply to the
    appropriate United States district court for a decree adjudicating
    that the plan must be terminated in order to protect the interests
    of the participants or to avoid any unreasonable deterioration of
    the financial condition of the plan or any unreasonable increase in
    the liability of the fund. If the trustee appointed under
    subsection (b) of this section disagrees with the determination of
    the corporation under the preceding sentence he may intervene in
    the proceeding relating to the application for the decree, or make
    application for such decree himself. Upon granting a decree for
    which the corporation or trustee has applied under this subsection
    the court shall authorize the trustee appointed under subsection
    (b) of this section (or appoint a trustee if one has not been
    appointed under such subsection and authorize him) to terminate the
    plan in accordance with the provisions of this subtitle. If the
    corporation and the plan administrator agree that a plan should be
    terminated and agree to the appointment of a trustee without
    proceeding in accordance with the requirements of this subsection
    (other than this sentence) the trustee shall have the power
    described in subsection (d)(1) of this section and, in addition to
    any other duties imposed on the trustee under law or by agreement
    between the corporation and the plan administrator, the trustee is
    subject to the duties described in subsection (d)(3) of this
    section. Whenever a trustee appointed under this subchapter is
    operating a plan with discretion as to the date upon which final
    distribution of the assets is to be commenced, the trustee shall
    notify the corporation at least 10 days before the date on which he
    proposes to commence such distribution.
      (2) In the case of a proceeding initiated under this section, the
    plan administrator shall provide the corporation, upon the request
    of the corporation, the information described in clauses (ii),
    (iii), and (iv) of section 1341(c)(2)(A) of this title.
      (3) Disclosure of termination information. - 
        (A) In general. - 
          (i) Information from plan sponsor or administrator. - A plan
        sponsor or plan administrator of a single-employer plan that
        has received a notice from the corporation of a determination
        that the plan should be terminated under this section shall
        provide to an affected party any information provided to the
        corporation in connection with the plan termination.
          (ii) Information from corporation. - The corporation shall
        provide a copy of the administrative record, including the
        trusteeship decision record of a termination of a plan
        described under clause (i).

        (B) Timing of disclosure. - The plan sponsor, plan
      administrator, or the corporation, as applicable, shall provide
      the information described in subparagraph (A) not later than 15
      days after - 
          (i) receipt of a request from an affected party for such
        information; or
          (ii) in the case of information described under subparagraph
        (A)(i), the provision of any new information to the corporation
        relating to a previous request by an affected party.

        (C) Confidentiality. - 
          (i) In general. - The plan administrator and plan sponsor
        shall not provide information under subparagraph (A)(i) in a
        form which includes any information that may directly or
        indirectly be associated with, or otherwise identify, an
        individual participant or beneficiary.
          (ii) Limitation. - A court may limit disclosure under this
        paragraph of confidential information described in section
        552(b) of title 5 to authorized representatives (within the
        meaning of section 1341(c)(2)(D)(iv) of this title) of the
        participants or beneficiaries that agree to ensure the
        confidentiality of such information.

        (D) Form and manner of information; charges. - 
          (i) Form and manner. - The corporation may prescribe the form
        and manner of the provision of information under this
        paragraph, which shall include delivery in written, electronic,
        or other appropriate form to the extent that such form is
        reasonably accessible to individuals to whom the information is
        required to be provided.
          (ii) Reasonable charges. - A plan sponsor may charge a
        reasonable fee for any information provided under this
        paragraph in other than electronic form.
    (d) Powers of trustee
      (1)(A) A trustee appointed under subsection (b) of this section
    shall have the power - 
        (i) to do any act authorized by the plan or this subchapter to
      be done by the plan administrator or any trustee of the plan;
        (ii) to require the transfer of all (or any part) of the assets
      and records of the plan to himself as trustee;
        (iii) to invest any assets of the plan which he holds in
      accordance with the provisions of the plan, regulations of the
      corporation, and applicable rules of law;
        (iv) to limit payment of benefits under the plan to basic
      benefits or to continue payment of some or all of the benefits
      which were being paid prior to his appointment;
        (v) in the case of a multiemployer plan, to reduce benefits or
      suspend benefit payments under the plan, give appropriate
      notices, amend the plan, and perform other acts required or
      authorized by subtitle (E) of this subchapter to be performed by
      the plan sponsor or administrator;
        (vi) to do such other acts as he deems necessary to continue
      operation of the plan without increasing the potential liability
      of the corporation, if such acts may be done under the provisions
      of the plan; and
        (vii) to require the plan sponsor, the plan administrator, any
      contributing or withdrawn employer, and any employee organization
      representing plan participants to furnish any information with
      respect to the plan which the trustee may reasonably need in
      order to administer the plan.

    If the court to which application is made under subsection (c) of
    this section dismisses the application with prejudice, or if the
    corporation fails to apply for a decree under subsection (c) of
    this section, within 30 days after the date on which the trustee is
    appointed under subsection (b) of this section, the trustee shall
    transfer all assets and records of the plan held by him to the plan
    administrator within 3 business days after such dismissal or the
    expiration of such 30-day period, and shall not be liable to the
    plan or any other person for his acts as trustee except for willful
    misconduct, or for conduct in violation of the provisions of part 4
    of subtitle B of subchapter I of this chapter (except as provided
    in subsection (d)(1)(A)(v) of this section). The 30-day period
    referred to in this subparagraph may be extended as provided by
    agreement between the plan administrator and the corporation or by
    court order obtained by the corporation.
      (B) If the court to which an application is made under subsection
    (c) of this section issues the decree requested in such
    application, in addition to the powers described in subparagraph
    (A), the trustee shall have the power - 
        (i) to pay benefits under the plan in accordance with the
      requirements of this subchapter;
        (ii) to collect for the plan any amounts due the plan,
      including but not limited to the power to collect from the
      persons obligated to meet the requirements of section 1082 of
      this title or the terms of the plan;
        (iii) to receive any payment made by the corporation to the
      plan under this subchapter;
        (iv) to commence, prosecute, or defend on behalf of the plan
      any suit or proceeding involving the plan;
        (v) to issue, publish, or file such notices, statements, and
      reports as may be required by the corporation or any order of the
      court;
        (vi) to liquidate the plan assets;
        (vii) to recover payments under section 1345(a) of this title;
      and
        (viii) to do such other acts as may be necessary to comply with
      this subchapter or any order of the court and to protect the
      interests of plan participants and beneficiaries.

      (2) As soon as practicable after his appointment, the trustee
    shall give notice to interested parties of the institution of
    proceedings under this subchapter to determine whether the plan
    should be terminated or to terminate the plan, whichever is
    applicable. For purposes of this paragraph, the term "interested
    party" means - 
        (A) the plan administrator,
        (B) each participant in the plan and each beneficiary of a
      deceased participant,
        (C) each employer who may be subject to liability under section
      1362, 1363, or 1364 of this title,
        (D) each employer who is or may be liable to the plan under
      section (!1) part 1 of subtitle E of this subchapter,

        (E) each employer who has an obligation to contribute, within
      the meaning of section 1392(a) of this title, under a
      multiemployer plan, and
        (F) each employee organization which, for purposes of
      collective bargaining, represents plan participants employed by
      an employer described in subparagraph (C), (D), or (E).

      (3) Except to the extent inconsistent with the provisions of this
    chapter, or as may be otherwise ordered by the court, a trustee
    appointed under this section shall be subject to the same duties as
    those of a trustee under section 704 of title 11, and shall be,
    with respect to the plan, a fiduciary within the meaning of
    paragraph (21) of section 1002 of this title and under section
    4975(e) of title 26 (except to the extent that the provisions of
    this subchapter are inconsistent with the requirements applicable
    under part 4 of subtitle B of subchapter I of this chapter and of
    such section 4975).
    (e) Filing of application notwithstanding pendency of other
      proceedings
      An application by the corporation under this section may be filed
    notwithstanding the pendency in the same or any other court of any
    bankruptcy, mortgage foreclosure, or equity receivership
    proceeding, or any proceeding to reorganize, conserve, or liquidate
    such plan or its property, or any proceeding to enforce a lien
    against property of the plan.
    (f) Exclusive jurisdiction; stay of other proceedings
      Upon the filing of an application for the appointment of a
    trustee or the issuance of a decree under this section, the court
    to which an application is made shall have exclusive jurisdiction
    of the plan involved and its property wherever located with the
    powers, to the extent consistent with the purposes of this section,
    of a court of the United States having jurisdiction over cases
    under chapter 11 of title 11. Pending an adjudication under
    subsection (c) of this section such court shall stay, and upon
    appointment by it of a trustee, as provided in this section such
    court shall continue the stay of, any pending mortgage foreclosure,
    equity receivership, or other proceeding to reorganize, conserve,
    or liquidate the plan or its property and any other suit against
    any receiver, conservator, or trustee of the plan or its property.
    Pending such adjudication and upon the appointment by it of such
    trustee, the court may stay any proceeding to enforce a lien
    against property of the plan or any other suit against the plan.
    (g) Venue
      An action under this subsection may be brought in the judicial
    district where the plan administrator resides or does business or
    where any asset of the plan is situated. A district court in which
    such action is brought may issue process with respect to such
    action in any other judicial district.
    (h) Compensation of trustee and professional service personnel
      appointed or retained by trustee
      (1) The amount of compensation paid to each trustee appointed
    under the provisions of this subchapter shall require the prior
    approval of the corporation, and, in the case of a trustee
    appointed by a court, the consent of that court.
      (2) Trustees shall appoint, retain, and compensate accountants,
    actuaries, and other professional service personnel in accordance
    with regulations prescribed by the corporation.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4042, Sept. 2, 1974, 88 Stat. 1021;
    Pub. L. 95-598, title III, Sec. 321(a), Nov. 6, 1978, 92 Stat.
    2678; Pub. L. 96-364, title IV, Sec. 402(a)(6), Sept. 26, 1980, 94
    Stat. 1298; Pub. L. 99-272, title XI, Secs. 11010, 11016(c)(10),
    (11), Apr. 7, 1986, 100 Stat. 253, 274; Pub. L. 100-203, title IX,
    Secs. 9312(c)(3), 9314(b), 9314(b), Dec. 22, 1987, 101 Stat. 1330-
    363, 1330-366, 1330-367; Pub. L. 101-239, title VII, Secs.
    7881(g)(7), 7891(a)(1), 7893(e), Dec. 19, 1989, 103 Stat. 2441,
    2445, 2447; Pub. L. 103-465, title VII, Sec. 771(e)(2), Dec. 8,
    1994, 108 Stat. 5043; Pub. L. 109-280, title V, Sec. 506(b), Aug.
    17, 2006, 120 Stat. 947.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This chapter, referred to in subsec. (d)(3), was in the original
    "this Act", meaning Pub. L. 93-406, known as the Employee
    Retirement Income Security Act of 1974. Titles I, III, and IV of
    such Act are classified principally to this chapter. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 1001 of this title and Tables.


-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (c). Pub. L. 109-280 designated first par. as par.
    (1), redesignated par. (3) as (2), and added a new par. (3).
      1994 - Subsec. (a)(3). Pub. L. 103-465 substituted "1343(c)(7)"
    for "1343(b)(7)".
      1989 - Subsec. (a). Pub. L. 101-239, Sec. 7893(e), inserted
    period after "terms of the plan" at end of second sentence.
      Pub. L. 101-239, Sec. 7881(g)(7), made technical correction to
    directory language of Pub. L. 100-203, Sec. 9314(b), see 1987
    Amendment note below.
      Subsecs. (a)(1), (d)(3). Pub. L. 101-239, Sec. 7891(a)(1),
    substituted "Internal Revenue Code of 1986" for "Internal Revenue
    Code of 1954", which for purposes of codification was translated as
    "title 26" thus requiring no change in text.
      1987 - Subsec. (a). Pub. L. 100-203, Sec. 9314(b), as amended by
    Pub. L. 101-239, Sec. 7881(g)(7), amended last sentence generally.
    Prior to amendment, last sentence read as follows: "The corporation
    is authorized to pool the assets of terminated plans for purposes
    of administration and such other purposes, not inconsistent with
    its duties to the plan participants and the employer maintaining
    the plan under this subchapter, as it determines to be required for
    the efficient administration of this subchapter." Another section
    9314(b) of Pub. L. 100-203 amended subsec. (c) of this section, see
    below.
      Subsec. (c)(3). Pub. L. 100-203, Sec. 9314(b), added par. (3).
    Another section 9314(b) of Pub. L. 100-203 amended subsec. (a) of
    this section, see above.
      Subsec. (i). Pub. L. 100-203, Sec. 9312(c)(3), struck out subsec.
    (i) which read as follows: "In any case in which a plan is
    terminated under this section in a termination proceeding initiated
    by the corporation pursuant to subsection (a) of this section, the
    corporation shall establish a separate trust in connection with the
    plan for purposes of section 1349 of this title, unless the
    corporation determines that all benefit commitments under the plan
    are benefits guaranteed by the corporation under section 1322 of
    this title or that there is no amount of unfunded benefit
    commitments under the plan."
      1986 - Pub. L. 99-272, Sec. 11010(c), substituted "Institution of
    termination proceedings by the corporation" for "Termination by
    corporation" in section catchline.
      Subsec. (a). Pub. L. 99-272, Sec. 11010(a)(1)(B), in provision
    following par. (4) inserted provision that the corporation as soon
    as practicable institute proceedings under this section to
    terminate a single-employer plan whenever the corporation
    determines that the plan does not have assets available to pay
    benefits currently due under the terms of the plan.
      Subsec. (a)(2). Pub. L. 99-272, Sec. 11010(a)(1)(A), substituted
    "will be" for "is".
      Subsec. (b)(1). Pub. L. 99-272, Sec. 11010(a)(2)(A), inserted "or
    is required under subsection (a) of this section to institute
    proceedings under this section,".
      Subsec. (c). Pub. L. 99-272, Sec. 11010(a)(2)(B), substituted "is
    required under subsection (a) of this section to commence
    proceedings under this section with respect to a plan or, after
    issuing a notice under this section to a plan administrator," for
    "has issued a notice under this section to a plan administrator and
    (whether or not a trustee has been appointed under subsection (b)
    of this section)".
      Subsec. (d)(1)(B)(ii). Pub. L. 99-272, Sec. 11016(c)(10),
    inserted ", including but not limited to the power to collect from
    the persons obligated to meet the requirements of section 1082 of
    this title or the terms of the plan".
      Subsec. (d)(3). Pub. L. 99-272, Sec. 11016(c)(11), substituted
    "those of a trustee under section 704 of title 11" for "a trustee
    appointed under section 75 of title 11".
      Subsec. (i). Pub. L. 99-272, Sec. 11010(b), added subsec. (i).
      1980 - Subsec. (a). Pub. L. 96-364, Sec. 402(a)(6)(A),
    substituted "terminated plans" for "such small plans".
      Subsec. (b). Pub. L. 96-364, Sec. 402(a)(6)(B), redesignated
    existing provisions as par. (1) and added pars. (2) and (3).
      Subsec. (c). Pub. L. 96-364, Sec. 402(a)(6)(C), (D), substituted
    "unreasonable" for "further" wherever appearing, and "of the
    participants or" for "of the participants and".
      Subsec. (d)(1)(A). Pub. L. 96-364, Sec. 402(a)(6)(E), added cls.
    (v) and (vii) and redesignated former cl. (v) as (vi).
      Subsec. (d)(1)(B). Pub. L. 96-364, Sec. 402(a)(6)(F), (G), in cl.
    (i) substituted "requirements of this subchapter" for "allocation
    requirements of section 1344 of this title", and in cl. (iv) struck
    out exception respecting adverse party status of corporation.
      Subsec. (d)(2)(D) to (F). Pub. L. 96-364, Sec. 402(a)(6)(H)-(J),
    added subpars. (D) to (F).
      1978 - Subsec. (f). Pub. L. 95-598 substituted "of a court of the
    United States having jurisdiction over cases under chapter 11 of
    title 11" for "of a court of bankruptcy and of a court in a
    proceeding under chapter X of the Bankruptcy Act" in first sentence
    and struck out "bankruptcy," before "mortgage foreclosure" in
    second sentence.

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Amendment by Pub. L. 109-280 applicable to any plan termination
    under this subchapter with respect to which the notice of intent to
    terminate, or in the case of a termination by the Pension Benefit
    Guaranty Corporation, a notice of determination under this section
    occurs after Aug. 17, 2006, with transition rule, see section
    506(c) of Pub. L. 109-280, set out as a note under section 1341 of
    this title.

                     EFFECTIVE DATE OF 1994 AMENDMENT                 
      Section 771(f) of Pub. L. 103-465 provided that: "The amendments
    made by this section [amending this section and section 1343 of
    this title] shall be effective for events occurring 60 days or more
    after the date of enactment of this Act [Dec. 8, 1994]."

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by section 7881(g)(7) of Pub. L. 101-239 effective,
    except as otherwise provided, as if included in the provision of
    the Pension Protection Act, Pub. L. 100-203, Secs. 9302-9346, to
    which such amendment relates, see section 7882 of Pub. L. 101-239,
    set out as a note under section 401 of Title 26, Internal Revenue
    Code.
      Amendment by section 7891(a)(1) of Pub. L. 101-239 effective,
    except as otherwise provided, as if included in the provision of
    the Tax Reform Act of 1986, Pub. L. 99-514, to which such amendment
    relates, see section 7891(f) of Pub. L. 101-239, set out as a note
    under section 1002 of this title.
      Amendment by section 7893(e) of Pub. L. 101-239 effective as if
    included in the provision of the Single-Employer Pension Plan
    Amendments Act of 1986, Pub. L. 99-272, title XI, to which such
    amendment relates, see section 7893(h) of Pub. L. 101-239, set out
    as a note under section 1002 of this title.

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Amendment by section 9312(c)(3) of Pub. L. 100-203 applicable
    with respect to plan terminations under section 1341 of this title
    with respect to which notices of intent to terminate are provided
    under section 1341(a)(2) of this title after Dec. 17, 1987, and
    plan terminations with respect to which proceedings are instituted
    by the Pension Benefit Guaranty Corporation under this section
    after that date, see section 9312(d)(1) of Pub. L. 100-203, as
    amended, set out as a note under section 1301 of this title.

                     EFFECTIVE DATE OF 1986 AMENDMENT                 
      Amendment by Pub. L. 99-272 effective Jan. 1, 1986, with certain
    exceptions, see section 11019 of Pub. L. 99-272, set out as a note
    under section 1341 of this title.

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-364 effective Sept. 26, 1980, except as
    specifically provided, see section 1461(e) of this title.

                     EFFECTIVE DATE OF 1978 AMENDMENT                 
      Amendment by Pub. L. 95-598 effective Oct. 1, 1979, see section
    402(a) of Pub. L. 95-598, set out as an Effective Date note
    preceding section 101 of Title 11, Bankruptcy.

-FOOTNOTE-
    (!1) So in original.


-End-



-CITE-
    29 USC Sec. 1343                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle C - Terminations

-HEAD-
    Sec. 1343. Reportable events

-STATUTE-
    (a) Notification that event has occurred
      Within 30 days after the plan administrator or the contributing
    sponsor knows or has reason to know that a reportable event
    described in subsection (c) of this section has occurred, he shall
    notify the corporation that such event has occurred, unless a
    notice otherwise required under this subsection has already been
    provided with respect to such event. The corporation is authorized
    to waive the requirement of the preceding sentence with respect to
    any or all reportable events with respect to any plan, and to
    require the notification to be made by including the event in the
    annual report made by the plan.
    (b) Notification that event is about to occur
      (1) The requirements of this subsection shall be applicable to a
    contributing sponsor if, as of the close of the preceding plan year
    - 
        (A) the  aggregate  unfunded  vested  benefits (as determined
      under section 1306(a)(3)(E)(iii) of this title) of plans subject
      to this subchapter which are maintained by such sponsor and
      members of such sponsor's controlled groups (disregarding plans
      with no unfunded vested benefits) exceed $50,000,000, and
        (B) the funded vested benefit percentage for such plans is less
      than 90 percent.

    For purposes of subparagraph (B), the funded vested benefit
    percentage means the percentage which the aggregate value of the
    assets of such plans bears to the aggregate vested benefits of such
    plans (determined in accordance with section 1306(a)(3)(E)(iii) of
    this title).
      (2) This subsection shall not apply to an event if the
    contributing sponsor, or the member of the contributing sponsor's
    controlled group to which the event relates, is - 
        (A) a person subject to the reporting requirements of section
      13 or 15(d) of the Securities Exchange Act of 1934 [15 U.S.C.
      78m, 78o(d)], or
        (B) a subsidiary (as defined for purposes of such Act [15
      U.S.C. 78a et seq.]) of a person subject to such reporting
      requirements.

      (3) No later than 30 days prior to the effective date of an event
    described in paragraph (9), (10), (11), (12), or (13) of subsection
    (c) of this section, a contributing sponsor to which the
    requirements of this subsection apply shall notify the corporation
    that the event is about to occur.
      (4) The corporation may waive the requirement of this subsection
    with respect to any or all reportable events with respect to any
    contributing sponsor.
    (c) Enumeration of reportable events
      For purposes of this section a reportable event occurs - 
        (1) when the Secretary of the Treasury issues notice that a
      plan has ceased to be a plan described in section 1321(a)(2) of
      this title, or when the Secretary of Labor determines the plan is
      not in compliance with subchapter I of this chapter;
        (2) when an amendment of the plan is adopted if, under the
      amendment, the benefit payable with respect to any participant
      may be decreased;
        (3) when the number of active participants is less than 80
      percent of the number of such participants at the beginning of
      the plan year, or is less than 75 percent of the number of such
      participants at the beginning of the previous plan year;
        (4) when the Secretary of the Treasury determines that there
      has been a termination or partial termination of the plan within
      the meaning of section 411(d)(3) of title 26, but the occurrence
      of such a termination or partial termination does not, by itself,
      constitute or require a termination of a plan under this
      subchapter;
        (5) when the plan fails to meet the minimum funding standards
      under section 412 of title 26 (without regard to whether the plan
      is a plan described in section 1321(a)(2) of this title) or under
      section 1082 of this title;
        (6) when the plan is unable to pay benefits thereunder when
      due;
        (7) when there is a distribution under the plan to a
      participant who is a substantial owner as defined in section
      1321(d) of this title if - 
          (A) such distribution has a value of $10,000 or more;
          (B) such distribution is not made by reason of the death of
        the participant; and
          (C) immediately after the distribution, the plan has
        nonforfeitable benefits which are not funded;

        (8) when a plan merges, consolidates, or transfers its assets
      under section 1058 of this title, or when an alternative method
      of compliance is prescribed by the Secretary of Labor under
      section 1030 of this title;
        (9) when, as a result of an event, a person ceases to be a
      member of the controlled group;
        (10) when a contributing sponsor or a member of a contributing
      sponsor's controlled group liquidates in a case under title 11,
      or under any similar Federal law or law of a State or political
      subdivision of a State;
        (11) when a contributing sponsor or a member of a contributing
      sponsor's controlled group declares an extraordinary dividend (as
      defined in section 1059(c) of title 26) or redeems, in any 12-
      month period, an aggregate of 10 percent or more of the total
      combined voting power of all classes of stock entitled to vote,
      or an aggregate of 10 percent or more of the total value of
      shares of all classes of stock, of a contributing sponsor and all
      members of its controlled group;
        (12) when, in any 12-month period, an aggregate of 3 percent or
      more of the benefit liabilities of a plan covered by this
      subchapter and maintained by a contributing sponsor or a member
      of its controlled group are transferred to a person that is not a
      member of the controlled group or to a plan or plans maintained
      by a person or persons that are not such a contributing sponsor
      or a member of its controlled group; or
        (13) when any other event occurs that may be indicative of a
      need to terminate the plan and that is prescribed by the
      corporation in regulations.

    For purposes of paragraph (7), all distributions to a participant
    within any 24-month period are treated as a single distribution.
    (d) Notification to corporation by Secretary of the Treasury
      The Secretary of the Treasury shall notify the corporation - 
        (1) whenever a reportable event described in paragraph (1),
      (4), or (5) of subsection (c) of this section occurs, or
        (2) whenever any other event occurs which the Secretary of the
      Treasury believes indicates that the plan may not be sound.
    (e) Notification to corporation by Secretary of Labor
      The Secretary of Labor shall notify the corporation - 
        (1) whenever a reportable event described in paragraph (1),
      (5), or (8) of subsection (c) of this section occurs, or
        (2) whenever any other event occurs which the Secretary of
      Labor believes indicates that the plan may not be sound.
    (f) Disclosure exemption
      Any information or documentary material submitted to the
    corporation pursuant to this section shall be exempt from
    disclosure under section 552 of title 5, and no such information or
    documentary material may be made public, except as may be relevant
    to any administrative or judicial action or proceeding. Nothing in
    this section is intended to prevent disclosure to either body of
    Congress or to any duly authorized committee or subcommittee of the
    Congress.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4043, Sept. 2, 1974, 88 Stat. 1024;
    Pub. L. 101-239, title VII, Sec. 7891(a), Dec. 19, 1989, 103 Stat.
    2445; Pub. L. 103-465, title VII, Sec. 771(a)-(e)(1), Dec. 8, 1994,
    108 Stat. 5042, 5043; Pub. L. 109-280, title IV, Sec. 407(c)(2),
    Aug. 17, 2006, 120 Stat. 930.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Securities Exchange Act of 1934, referred to in subsec.
    (b)(2)(B), is act June 6, 1934, ch. 404, 48 Stat. 881, as amended,
    which is classified principally to chapter 2B (Sec. 78a et seq.) of
    Title 15, Commerce and Trade. For complete classification of this
    Act to the Code, see section 78a of Title 15 and Tables.


-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (c)(7). Pub. L. 109-280 substituted "1321(d)" for
    "1322(b)(6)" in introductory provisions.
      1994 - Subsec. (a). Pub. L. 103-465, Sec. 771(a), (e)(1), in
    first sentence, inserted "or the contributing sponsor" after
    "administrator", substituted "subsection (c)" for "subsection (b)",
    and inserted before period at end ", unless a notice otherwise
    required under this subsection has already been provided with
    respect to such event", and struck out last sentence which read as
    follows: "Whenever an employer making contributions under a plan to
    which section 1321 of this title applies knows or has reason to
    know that a reportable event has occurred he shall notify the plan
    administrator immediately."
      Subsec. (b). Pub. L. 103-465, Sec. 771(b), added subsec. (b).
    Former subsec. (b) redesignated (c).
      Subsec. (c). Pub. L. 103-465, Sec. 771(b), redesignated subsec.
    (b) as (c). Former subsec. (c) redesignated (d).
      Subsec. (c)(8) to (13). Pub. L. 103-465, Sec. 771(c), struck out
    "or" at end of par. (8), added pars. (9) to (13), and struck out
    former par. (9) which read as follows: "when any other event occurs
    which the corporation determines may be indicative of a need to
    terminate the plan.".
      Subsecs. (d), (e). Pub. L. 103-465, Sec. 771(b), (e)(1),
    redesignated subsecs. (c) and (d) as (d) and (e), respectively, and
    substituted "subsection (c)" for "subsection (b)" in par. (1) of
    each subsec.
      Subsec. (f). Pub. L. 103-465, Sec. 771(d), added subsec. (f).
      1989 - Subsec. (b)(4). Pub. L. 101-239 substituted "Internal
    Revenue Code of 1986" for "Internal Revenue Code of 1954", which
    for purposes of codification was translated as "title 26" thus
    requiring no change in text.

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Amendment by Pub. L. 109-280 effective Jan. 1, 2006, see section
    407(d)(2) of Pub. L. 109-280, set out as a note under section 1321
    of this title.

                     EFFECTIVE DATE OF 1994 AMENDMENT                 
      Amendment by Pub. L. 103-465 effective for events occurring 60
    days or more after Dec. 8, 1994, see section 771(f) of Pub. L. 103-
    465, set out as a note under section 1342 of this title.

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by Pub. L. 101-239 effective, except as otherwise
    provided, as if included in the provision of the Tax Reform Act of
    1986, Pub. L. 99-514, to which such amendment relates, see section
    7891(f) of Pub. L. 101-239, set out as a note under section 1002 of
    this title.

-End-



-CITE-
    29 USC Sec. 1344                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle C - Terminations

-HEAD-
    Sec. 1344. Allocation of assets

-STATUTE-
    (a) Order of priority of participants and beneficiaries
      In the case of the termination of a single-employer plan, the
    plan administrator shall allocate the assets of the plan (available
    to provide benefits) among the participants and beneficiaries of
    the plan in the following order:
        (1) First, to that portion of each individual's accrued benefit
      which is derived from the participant's contributions to the plan
      which were not mandatory contributions.
        (2) Second, to that portion of each individual's accrued
      benefit which is derived from the participant's mandatory
      contributions.
        (3) Third, in the case of benefits payable as an annuity - 
          (A) in the case of the benefit of a participant or
        beneficiary which was in pay status as of the beginning of the
        3-year period ending on the termination date of the plan, to
        each such benefit, based on the provisions of the plan (as in
        effect during the 5-year period ending on such date) under
        which such benefit would be the least,
          (B) in the case of a participant's or beneficiary's benefit
        (other than a benefit described in subparagraph (A)) which
        would have been in pay status as of the beginning of such 3-
        year period if the participant had retired prior to the
        beginning of the 3-year period and if his benefits had
        commenced (in the normal form of annuity under the plan) as of
        the beginning of such period, to each such benefit based on the
        provisions of the plan (as in effect during the 5-year period
        ending on such date) under which such benefit would be the
        least.

      For purposes of subparagraph (A), the lowest benefit in pay
      status during a 3-year period shall be considered the benefit in
      pay status for such period.
        (4) Fourth - 
          (A) to all other benefits (if any) of individuals under the
        plan guaranteed under this subchapter (determined without
        regard to section 1322b(a) of this title), and
          (B) to the additional benefits (if any) which would be
        determined under subparagraph (A) if section 1322(b)(5)(B) of
        this title did not apply.

      For purposes of this paragraph, section 1321 of this title shall
      be applied without regard to subsection (c) thereof.
        (5) Fifth, to all other nonforfeitable benefits under the plan.
        (6) Sixth, to all other benefits under the plan.
    (b) Adjustment of allocations; reallocations; mandatory
      contributions; establishment of subclasses and categories
      For purposes of subsection (a) of this section - 
        (1) The amount allocated under any paragraph of subsection (a)
      of this section with respect to any benefit shall be properly
      adjusted for any allocation of assets with respect to that
      benefit under a prior paragraph of subsection (a) of this
      section.
        (2) If the assets available for allocation under any paragraph
      of subsection (a) of this section (other than paragraphs (4),
      (5), and (6)) are insufficient to satisfy in full the benefits of
      all individuals which are described in that paragraph, the assets
      shall be allocated pro rata among such individuals on the basis
      of the present value (as of the termination date) of their
      respective benefits described in that paragraph.
        (3) If assets available for allocation under paragraph (4) of
      subsection (a) are insufficient to satisfy in full the benefits
      of all individuals who are described in that paragraph, the
      assets shall be allocated first to benefits described in
      subparagraph (A) of that paragraph. Any remaining assets shall
      then be allocated to benefits described in subparagraph (B) of
      that paragraph. If assets allocated to such subparagraph (B) are
      insufficient to satisfy in full the benefits described in that
      subparagraph, the assets shall be allocated pro rata among
      individuals on the basis of the present value (as of the
      termination date) of their respective benefits described in that
      subparagraph.
        (4) This paragraph applies if the assets available for
      allocation under paragraph (5) of subsection (a) of this section
      are not sufficient to satisfy in full the benefits of individuals
      described in that paragraph.
          (A) If this paragraph applies, except as provided in
        subparagraph (B), the assets shall be allocated to the benefits
        of individuals described in such paragraph (5) on the basis of
        the benefits of individuals which would have been described in
        such paragraph (5) under the plan as in effect at the beginning
        of the 5-year period ending on the date of plan termination.
          (B) If the assets available for allocation under subparagraph
        (A) are sufficient to satisfy in full the benefits described in
        such subparagraph (without regard to this subparagraph), then
        for purposes of subparagraph (A), benefits of individuals
        described in such subparagraph shall be determined on the basis
        of the plan as amended by the most recent plan amendment
        effective during such 5-year period under which the assets
        available for allocation are sufficient to satisfy in full the
        benefits of individuals described in subparagraph (A) and any
        assets remaining to be allocated under such subparagraph shall
        be allocated under subparagraph (A) on the basis of the plan as
        amended by the next succeeding plan amendment effective during
        such period.

        (5) If the Secretary of the Treasury determines that the
      allocation made pursuant to this section (without regard to this
      paragraph) results in discrimination prohibited by section
      401(a)(4) of title 26 then, if required to prevent the
      disqualification of the plan (or any trust under the plan) under
      section 401(a) or 403(a) of title 26, the assets allocated under
      subsections (a)(4)(B), (a)(5), and (a)(6) of this section shall
      be reallocated to the extent necessary to avoid such
      discrimination.
        (6) The term "mandatory contributions" means amounts
      contributed to the plan by a participant which are required as a
      condition of employment, as a condition of participation in such
      plan, or as a condition of obtaining benefits under the plan
      attributable to employer contributions. For this purpose, the
      total amount of mandatory contributions of a participant is the
      amount of such contributions reduced (but not below zero) by the
      sum of the amounts paid or distributed to him under the plan
      before its termination.
        (7) A plan may establish subclasses and categories within the
      classes described in paragraphs (1) through (6) of subsection (a)
      of this section in accordance with regulations prescribed by the
      corporation.
    (c) Increase or decrease in value of assets
      Any increase or decrease in the value of the assets of a single-
    employer plan occurring during the period beginning on the later
    of (1) the date a trustee is appointed under section 1342(b) of
    this title or (2) the date on which the plan is terminated is to be
    allocated between the plan and the corporation in the manner
    determined by the court (in the case of a court-appointed trustee)
    or as agreed upon by the corporation and the plan administrator in
    any other case. Any increase or decrease in the value of the assets
    of a single-employer plan occurring after the date on which the
    plan is terminated shall be credited to, or suffered by, the
    corporation.
    (d) Distribution of residual assets; restrictions on reversions
      pursuant to recently amended plans; assets attributable to
      employee contributions; calculation of remaining assets
      (1) Subject to paragraph (3), any residual assets of a single-
    employer plan may be distributed to the employer if - 
        (A) all liabilities of the plan to participants and their
      beneficiaries have been satisfied,
        (B) the distribution does not contravene any provision of law,
      and
        (C) the plan provides for such a distribution in these
      circumstances.

      (2)(A) In determining the extent to which a plan provides for the
    distribution of plan assets to the employer for purposes of
    paragraph (1)(C), any such provision, and any amendment increasing
    the amount which may be distributed to the employer, shall not be
    treated as effective before the end of the fifth calendar year
    following the date of the adoption of such provision or amendment.
      (B) A distribution to the employer from a plan shall not be
    treated as failing to satisfy the requirements of this paragraph if
    the plan has been in effect for fewer than 5 years and the plan has
    provided for such a distribution since the effective date of the
    plan.
      (C) Except as otherwise provided in regulations of the Secretary
    of the Treasury, in any case in which a transaction described in
    section 1058 of this title occurs, subparagraph (A) shall continue
    to apply separately with respect to the amount of any assets
    transferred in such transaction.
      (D) For purposes of this subsection, the term "employer" includes
    any member of the controlled group of which the employer is a
    member. For purposes of the preceding sentence, the term
    "controlled group" means any group treated as a single employer
    under subsection (b), (c), (m) or (o) of section 414 of title 26.
      (3)(A) Before any distribution from a plan pursuant to paragraph
    (1), if any assets of the plan attributable to employee
    contributions remain after satisfaction of all liabilities
    described in subsection (a) of this section, such remaining assets
    shall be equitably distributed to the participants who made such
    contributions or their beneficiaries (including alternate payees,
    within the meaning of section 1056(d)(3)(K) of this title).
      (B) For purposes of subparagraph (A), the portion of the
    remaining assets which are attributable to employee contributions
    shall be an amount equal to the product derived by multiplying - 
        (i) the market value of the total remaining assets, by
        (ii) a fraction - 
          (I) the numerator of which is the present value of all
        portions of the accrued benefits with respect to participants
        which are derived from participants' mandatory contributions
        (referred to in subsection (a)(2) of this section), and
          (II) the denominator of which is the present value of all
        benefits with respect to which assets are allocated under
        paragraphs (2) through (6) of subsection (a) of this section.

      (C) For purposes of this paragraph, each person who is, as of the
    termination date - 
        (i) a participant under the plan, or
        (ii) an individual who has received, during the 3-year period
      ending with the termination date, a distribution from the plan of
      such individual's entire nonforfeitable benefit in the form of a
      single sum distribution in accordance with section 1053(e) of
      this title or in the form of irrevocable commitments purchased by
      the plan from an insurer to provide such nonforfeitable benefit,

    shall be treated as a participant with respect to the termination,
    if all or part of the nonforfeitable benefit with respect to such
    person is or was attributable to participants' mandatory
    contributions (referred to in subsection (a)(2) of this section).
      (4) Nothing in this subsection shall be construed to limit the
    requirements of section 4980(d) of title 26 (as in effect
    immediately after the enactment of the Omnibus Budget
    Reconciliation Act of 1990) or section 1104(d) of this title with
    respect to any distribution of residual assets of a single-employer
    plan to the employer.
    (e) (!1) Bankruptcy filing substituted for termination date

      If a contributing sponsor of a plan has filed or has had filed
    against such person a petition seeking liquidation or
    reorganization in a case under title 11 or under any similar
    Federal law or law of a State or political subdivision, and the
    case has not been dismissed as of the termination date of the plan,
    then subsection (a)(3) shall be applied by treating the date such
    petition was filed as the termination date of the plan.
    (e) (!1) Valuation of section 1362(c) liability for determining
      amounts payable by corporation to participants and beneficiaries
      (1) In general
        In the case of a terminated plan, the value of the recovery of
      liability under section 1362(c) of this title allocable as a plan
      asset under this section for purposes of determining the amount
      of benefits payable by the corporation shall be determined by
      multiplying - 
          (A) the amount of liability under section 1362(c) of this
        title as of the termination date of the plan, by
          (B) the applicable section 1362(c) recovery ratio.
      (2) Section 1362(c) recovery ratio
        For purposes of this subsection - 
        (A) In general
          Except as provided in subparagraph (C), the term "section
        1362(c) recovery ratio" means the ratio which - 
            (i) the sum of the values of all recoveries under section
          1362(c) of this title determined by the corporation in
          connection with plan terminations described under
          subparagraph (B), bears to
            (ii) the sum of all the amounts of liability under section
          1362(c) of this title with respect to such plans as of the
          termination date in connection with any such prior
          termination.
        (B) Prior terminations
          A plan termination described in this subparagraph is a
        termination with respect to which - 
            (i) the value of recoveries under section 1362(c) of this
          title have been determined by the corporation, and
            (ii) notices of intent to terminate were provided (or in
          the case of a termination by the corporation, a notice of
          determination under section 1342 of this title was issued)
          during the 5-Federal fiscal year period ending with the third
          fiscal year preceding the fiscal year in which occurs the
          date of the notice of intent to terminate (or the notice of
          determination under section 1342 of this title) with respect
          to the plan termination for which the recovery ratio is being
          determined.
        (C) Exception
          In the case of a terminated plan with respect to which the
        outstanding amount of benefit liabilities exceeds $20,000,000,
        the term "section 1362(c) recovery ratio" means, with respect
        to the termination of such plan, the ratio of - 
            (i) the value of the recoveries on behalf of the plan under
          section 1362(c) of this title, to
            (ii) the amount of the liability owed under section 1362(c)
          of this title as of the date of plan termination to the
          trustee appointed under section 1342(b) or (c) of this title.
      (3) Subsection not to apply
        This subsection shall not apply with respect to the
      determination of - 
          (A) whether the amount of outstanding benefit liabilities
        exceeds $20,000,000, or
          (B) the amount of any liability under section 1362 of this
        title to the corporation or the trustee appointed under section
        1342(b) or (c) of this title.
      (4) Determinations
        Determinations under this subsection shall be made by the
      corporation. Such determinations shall be binding unless shown by
      clear and convincing evidence to be unreasonable.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4044, Sept. 2, 1974, 88 Stat. 1025;
    Pub. L. 96-364, title IV, Sec. 402(a)(7), Sept. 26, 1980, 94 Stat.
    1299; Pub. L. 99-272, title XI, Sec. 11016(c)(12), (13), Apr. 7,
    1986, 100 Stat. 274; Pub. L. 100-203, title IX, Sec. 9311(a)(1),
    (b), (c), Dec. 22, 1987, 101 Stat. 1330-359, 1330-360; Pub. L. 101-
    239, title VII, Secs. 7881(e)(3), 7891(a)(1), 7894(g)(2), Dec. 19,
    1989, 103 Stat. 2440, 2445, 2451; Pub. L. 101-508, title XII, Sec.
    12002(b)(2)(B), Nov. 5, 1990, 104 Stat. 1388-566; Pub. L. 109-280,
    title IV, Secs. 404(b), 407(b), 408(b)(2), Aug. 17, 2006, 120 Stat.
    928, 930, 931.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The enactment of the Omnibus Budget Reconciliation Act of 1990,
    referred to in subsec. (d)(4), is the enactment of Pub. L. 101-508,
    which was approved Nov. 5, 1990.


-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (a)(4)(B). Pub. L. 109-280, Sec. 407(b)(1),
    substituted "1322(b)(5)(B)" for "1322(b)(5)".
      Subsec. (b)(2). Pub. L. 109-280, Sec. 407(b)(2)(A), substituted
    "(4), (5)," for "(5)".
      Subsec. (b)(3) to (7). Pub. L. 109-280, Sec. 407(b)(2)(B), added
    par. (3) and redesignated former pars. (3) to (6) as (4) to (7),
    respectively.
      Subsec. (e). Pub. L. 109-280, Sec. 408(b)(2), added subsec. (e)
    relating to valuation of section 1362(c) liability for determining
    amounts payable by corporation to participants and beneficiaries.
      Pub. L. 109-280, Sec. 404(b), added subsec. (e) relating to
    substitution of bankruptcy filing date for termination date.
      1990 - Subsec. (d)(4). Pub. L. 101-508 added par. (4).
      1989 - Subsec. (a)(1). Pub. L. 101-239, Sec. 7894(g)(2),
    substituted "accrued" for "accured".
      Subsec. (b)(4). Pub. L. 101-239, Sec. 7891(a)(1), substituted
    "Internal Revenue Code of 1986" for "Internal Revenue Code of
    1954", which for purposes of codification was translated as "title
    26" thus requiring no change in text.
      Subsec. (d)(3). Pub. L. 101-239, Sec. 7881(e)(3), made technical
    correction to directory language of Pub. L. 100-203, Sec.
    9311(b)(2), see 1987 Amendment note below.
      1987 - Subsec. (b)(4). Pub. L. 100-203, Sec. 9311(c), struck out
    reference to section 405(a) of title 26.
      Subsec. (d)(1). Pub. L. 100-203, Sec. 9311(b)(1), substituted
    "Subject to paragraph (3), any" for "Any".
      Subsec. (d)(2). Pub. L. 100-203, Sec. 9311(a)(1)(B), added par.
    (2). Former par. (2) redesignated (3).
      Subsec. (d)(3). Pub. L. 100-203, Sec. 9311(b)(2), as amended by
    Pub. L. 101-239, Sec. 7881(e)(3), added par. (3), and struck out
    former par. (3) which read as follows: "Notwithstanding the
    provisions of paragraph (1), if any assets of the plan attributable
    to employee contributions, remain after all liabilities of the plan
    to participants and their beneficiaries have been satisfied, such
    assets shall be equitably distributed to the employees who made
    such contributions (or their beneficiaries) in accordance with
    their rate of contributions."
      Pub. L. 100-203, Sec. 9311(a)(1)(A), redesignated former par. (2)
    as (3).
      1986 - Subsec. (a). Pub. L. 99-272, Sec. 11016(c)(12), in
    provision preceding par. (1) struck out "defined benefit" after
    "single-employer".
      Subsec. (a)(4)(A). Pub. L. 99-272, Sec. 11016(c)(13)(A),
    substituted "section 1322b(a)" for "section 1322(b)(5)".
      Subsec. (a)(4)(B). Pub. L. 99-272, Sec. 11016(c)(13)(B),
    substituted "section 1322(b)(5)" for "section 1322(b)(6)".
      1980 - Subsec. (a). Pub. L. 96-364, Sec. 402(a)(7)(A), inserted
    "single-employer" before "defined benefit".
      Subsec. (c). Pub. L. 96-364, Sec. 402(a)(7)(B), inserted "single-
    employer" before "plan occurring" wherever appearing.
      Subsec. (d)(1). Pub. L. 96-364, Sec. 402(a)(7)(C), inserted
    "single-employer" after "assets of a".

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Amendment by section 404(b) of Pub. L. 109-280 applicable with
    respect to proceedings initiated under Title 11, Bankruptcy, or
    under any similar Federal law or law of a State or political
    subdivision, on or after the date that is 30 days after Aug. 17,
    2006, see section 404(c) of Pub. L. 109-280, set out as a note
    under section 1322 of this title.
      Amendment by section 407(b) of Pub. L. 109-280 applicable to plan
    terminations under section 1341(c) of this title with respect to
    which notices of intent to terminate are provided under section
    1341(a)(2) of this title after Dec. 31, 2005, and under section
    1342 of this title with respect to which notices of determination
    are provided under such section after such date, see section
    407(d)(1) of Pub. L. 109-280, set out as a note under section 1321
    of this title.
      Amendment by section 408(b)(2) of Pub. L. 109-280 applicable for
    any termination for which notices of intent to terminate are
    provided, or in the case of a termination by the corporation, a
    notice of determination under section 1342 of this title is issued,
    on or after the date which is 30 days after Aug. 17, 2006, see
    section 408(c) of Pub. L. 109-280, set out as a note under section
    1322 of this title.

                     EFFECTIVE DATE OF 1990 AMENDMENT                 
      Amendment by Pub. L. 101-508 applicable to reversions occurring
    after Sept. 30, 1990, but not applicable to any reversion after
    Sept. 30, 1990, if (1) in the case of plans subject to subchapter
    III of this chapter, notice of intent to terminate under such
    subchapter was provided to participants (or if no participants, to
    Pension Benefit Guaranty Corporation) before Oct. 1, 1990, (2) in
    the case of plans subject to subchapter I of this chapter (and not
    subchapter III), notice of intent to reduce future accruals under
    section 1054(h) of this title was provided to participants in
    connection with termination before Oct. 1, 1990, (3) in the case of
    plans not subject to subchapter I or III of this chapter, a request
    for a determination letter with respect to termination was filed
    with Secretary of the Treasury or Secretary's delegate before Oct.
    1, 1990, or (4) in the case of plans not subject to subchapter I or
    III of this chapter and having only one participant, a resolution
    terminating the plan was adopted by employer before Oct. 1, 1990,
    see section 12003 of Pub. L. 101-508, set out as a note under
    section 4980 of Title 26, Internal Revenue Code.

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by section 7881(e)(3) of Pub. L. 101-239 effective,
    except as otherwise provided, as if included in the provision of
    the Pension Protection Act, Pub. L. 100-203, Secs. 9302-9346, to
    which such amendment relates, see section 7882 of Pub. L. 101-239,
    set out as a note under section 401 of Title 26, Internal Revenue
    Code.
      Amendment by section 7891(a)(1) of Pub. L. 101-239 effective,
    except as otherwise provided, as if included in the provision of
    the Tax Reform Act of 1986, Pub. L. 99-514, to which such amendment
    relates, see section 7891(f) of Pub. L. 101-239, set out as a note
    under section 1002 of this title.
      Amendment by section 7894(g)(2) of Pub. L. 101-239 effective,
    except as otherwise provided, as if originally included in the
    provision of the Employee Retirement Income Security Act of 1974,
    Pub. L. 93-406, to which such amendment relates, see section
    7894(i) of Pub. L. 101-239, set out as a note under section 1002 of
    this title.

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Section 9311(d) of Pub. L. 100-203, as amended by Pub. L. 101-
    239, title VII, Sec. 7881(e)(2), Dec. 19, 1989, 103 Stat. 2439,
    provided that: "The amendments made by this section [amending this
    section] shall apply with respect to - 
        "(1) plan terminations under section 4041 of ERISA [29 U.S.C.
      1341] with respect to which notices of intent to terminate are
      provided under section 4041(a)(2) of ERISA after December 17,
      1987, and
        "(2) plan terminations with respect to which proceedings are
      instituted by the Pension Benefit Guaranty Corporation under
      section 4042 of ERISA [29 U.S.C. 1342] after December 17, 1987.
    Except as provided in subsection (a)(2) [set out below], the
    amendments made by subsection (a) [amending this section] shall
    apply to any provision of the plan or plan amendment adopted after
    December 17, 1987."

                     EFFECTIVE DATE OF 1986 AMENDMENT                 
      Amendment by Pub. L. 99-272 effective Jan. 1, 1986, with certain
    exceptions, see section 11019 of Pub. L. 99-272, set out as a note
    under section 1341 of this title.

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-364 effective Sept. 26, 1980, except as
    specifically provided, see section 1461(e) of this title.

     TRANSITIONAL RULE RELATING TO RESTRICTIONS ON EMPLOYER REVERSIONS
         UPON PLAN TERMINATION PURSUANT TO RECENTLY AMENDED PLANS
      Section 9311(a)(2) of Pub. L. 100-203, as amended by Pub. L. 101-
    239, title VII, Sec. 7881(e)(1), (4), Dec. 19, 1989, 103 Stat.
    2439, 2440, provided that: "The amendments made by paragraph (1)
    [amending this section] shall apply, in the case of plans which, as
    of December 17, 1987, have no provision relating to the
    distribution of residual plan assets upon termination, only with
    respect to plan amendments providing for the distribution of plan
    assets to the employer which are adopted after December 17, 1988."

      SPECIAL TEMPORARY RULE FOR TERMINATION OF SINGLE-EMPLOYER PLAN  
      For special temporary rule relating to requirements to be met
    before the final distribution of assets in the case of the
    termination of certain single-employer plans with respect to which
    the amount payable to the employer pursuant to subsec. (d) of this
    section exceeds $1,000,000, see section 11008(d) of Pub. L. 99-272,
    set out as a note under section 1341 of this title.

-FOOTNOTE-
    (!1) So in original. Two subsecs. (e) have been enacted.


-End-



-CITE-
    29 USC Sec. 1345                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle C - Terminations

-HEAD-
    Sec. 1345. Recapture of payments

-STATUTE-
    (a) Authorization to recover benefits
      Except as provided in subsection (c) of this section, the trustee
    is authorized to recover for the benefit of a plan from a
    participant the recoverable amount (as defined in subsection (b) of
    this section) of all payments from the plan to him which commenced
    within the 3-year period immediately preceding the time the plan is
    terminated.
    (b) Recoverable amount
      For purposes of subsection (a) of this section the recoverable
    amount is the excess of the amount determined under paragraph (1)
    over the amount determined under paragraph (2).
        (1) The amount determined under this paragraph is the sum of
      the amount of the actual payments received by the participant
      within the 3-year period.
        (2) The amount determined under this paragraph is the sum of - 
          (A) the sum of the amount such participant would have
        received during each consecutive 12-month period within the 3
        years if the participant received the benefit in the form
        described in paragraph (3),
          (B) the sum for each of the consecutive 12-month periods of
        the lesser of - 
            (i) the excess, if any, of $10,000 over the benefit in the
          form described in paragraph (3), or
            (ii) the excess of the actual payment, if any, over the
          benefit in the form described in paragraph (3), and

          (C) the present value at the time of termination of the
        participant's future benefits guaranteed under this subchapter
        as if the benefits commenced in the form described in paragraph
        (3).

        (3) The form of benefit for purposes of this subsection shall
      be the monthly benefit the participant would have received during
      the consecutive 12-month period, if he had elected at the time of
      the first payment made during the 3-year period, to receive his
      interest in the plan as a monthly benefit in the form of a life
      annuity commencing at the time of such first payment.
    (c) Payments made on or after death or disability of participant;
      waiver of recovery in case of hardship
      (1) In the event of a distribution described in section
    1343(b)(7) (!1) of this title the 3-year period referred to in
    subsection (b) of this section shall not end sooner than the date
    on which the corporation is notified of the distribution.

      (2) The trustee shall not recover any payment made from a plan
    after or on account of the death of a participant, or to a
    participant who is disabled (within the meaning of section 72(m)(7)
    of title 26).
      (3) The corporation is authorized to waive, in whole or in part,
    the recovery of any amount which the trustee is authorized to
    recover for the benefit of a plan under this section in any case in
    which it determines that substantial economic hardship would result
    to the participant or his beneficiaries from whom such amount is
    recoverable.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4045, Sept. 2, 1974, 88 Stat. 1027;
    Pub. L. 101-239, title VII, Sec. 7891(a)(1), Dec. 19, 1989, 103
    Stat. 2445.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 1343(b)(7) of this title, referred to in subsec. (c)(1),
    was redesignated section 1343(c)(7) of this title by Pub. L. 103-
    465, title VII, Sec. 771(b), Dec. 8, 1994, 108 Stat. 5042.


-MISC1-
                                AMENDMENTS                            
      1989 - Subsec. (c)(2). Pub. L. 101-239 substituted "Internal
    Revenue Code of 1986" for "Internal Revenue Code of 1954", which
    for purposes of codification was translated as "title 26" thus
    requiring no change in text.

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by Pub. L. 101-239 effective, except as otherwise
    provided, as if included in the provision of the Tax Reform Act of
    1986, Pub. L. 99-514, to which such amendment relates, see section
    7891(f) of Pub. L. 101-239, set out as a note under section 1002 of
    this title.

-FOOTNOTE-
    (!1) See References in Text note below.


-End-



-CITE-
    29 USC Sec. 1346                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle C - Terminations

-HEAD-
    Sec. 1346. Reports to trustee

-STATUTE-
      The corporation and the plan administrator of any plan to be
    terminated under this subtitle shall furnish to the trustee such
    information as the corporation or the plan administrator has and,
    to the extent practicable, can obtain regarding - 
        (1) the amount of benefits payable with respect to each
      participant under a plan to be terminated,
        (2) the amount of basic benefits guaranteed under section 1322
      or 1322a of this title which are payable with respect to each
      participant in the plan,
        (3) the present value, as of the time of termination, of the
      aggregate amount of basic benefits payable under section 1322 or
      1322a of this title (determined without regard to section 1322b
      of this title),
        (4) the fair market value of the assets of the plan at the time
      of termination,
        (5) the computations under section 1344 of this title, and all
      actuarial assumptions under which the items described in
      paragraphs (1) through (4) were computed, and
        (6) any other information with respect to the plan the trustee
      may require in order to terminate the plan.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4046, Sept. 2, 1974, 88 Stat. 1028;
    Pub. L. 96-364, title IV, Sec. 403(e), Sept. 26, 1980, 94 Stat.
    1301.)


-MISC1-
                                AMENDMENTS                            
      1980 - Par. (2). Pub. L. 96-364, Sec. 403(e)(1), inserted "basic"
    before "benefits" and "or 1322a" after "1322".
      Par. (3). Pub. L. 96-364, Sec. 403(e), inserted "basic" before
    "benefits" and "or 1322a" after "1322", and substituted "1322b" for
    "1322(b)(5)".

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-364 effective Sept. 26, 1980, except as
    specifically provided, see section 1461(e) of this title.

-End-



-CITE-
    29 USC Sec. 1347                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle C - Terminations

-HEAD-
    Sec. 1347. Restoration of plans

-STATUTE-
      Whenever the corporation determines that a plan which is to be
    terminated under section 1341 or 1342 of this title, or which is in
    the process of being terminated under section 1341 or 1342 of this
    title, should not be terminated under section 1341 or 1342 of this
    title as a result of such circumstances as the corporation
    determines to be relevant, the corporation is authorized to cease
    any activities undertaken to terminate the plan, and to take
    whatever action is necessary and within its power to restore the
    plan to its status prior to the determination that the plan was to
    be terminated under section 1341 or 1342 of this title. In the case
    of a plan which has been terminated under section 1341 or 1342 of
    this title the corporation is authorized in any such case in which
    the corporation determines such action to be appropriate and
    consistent with its duties under this subchapter, to take such
    action as may be necessary to restore the plan to its
    pretermination status, including, but not limited to, the transfer
    to the employer or a plan administrator of control of part or all
    of the remaining assets and liabilities of the plan.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4047, Sept. 2, 1974, 88 Stat. 1028;
    Pub. L. 99-272, title XI, Sec. 11016(a)(3), Apr. 7, 1986, 100 Stat.
    268; Pub. L. 101-239, title VII, Sec. 7893(g)(1), Dec. 19, 1989,
    103 Stat. 2447.)


-MISC1-
                                AMENDMENTS                            
      1989 - Pub. L. 101-239 struck out "under this subtitle" before
    "should not be terminated".
      1986 - Pub. L. 99-272 inserted "under section 1341 or 1342 of
    this title" after "terminated" in four places and substituted
    "section 1341 or 1342 of this title the corporation" for "section
    1342 of this title the corporation".

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by Pub. L. 101-239 effective as if included in the
    provision of the Single-Employer Pension Plan Amendments Act of
    1986, Pub. L. 99-272, title XI, to which such amendment relates,
    see section 7893(h) of Pub. L. 101-239, set out as a note under
    section 1002 of this title.

                     EFFECTIVE DATE OF 1986 AMENDMENT                 
      Amendment by Pub. L. 99-272 effective Jan. 1, 1986, with certain
    exceptions, see section 11019 of Pub. L. 99-272, set out as a note
    under section 1341 of this title.

-End-



-CITE-
    29 USC Sec. 1348                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle C - Terminations

-HEAD-
    Sec. 1348. Termination date

-STATUTE-
      (a) For purposes of this subchapter the termination date of a
    single-employer plan is - 
        (1) in the case of a plan terminated in a standard termination
      in accordance with the provisions of section 1341(b) of this
      title, the termination date proposed in the notice provided under
      section 1341(a)(2) of this title,
        (2) in the case of a plan terminated in a distress termination
      in accordance with the provisions of section 1341(c) of this
      title, the date established by the plan administrator and agreed
      to by the corporation,
        (3) in the case of a plan terminated in accordance with the
      provisions of section 1342 of this title, the date established by
      the corporation and agreed to by the plan administrator, or
        (4) in the case of a plan terminated under section 1341(c) or
      1342 of this title in any case in which no agreement is reached
      between the plan administrator and the corporation (or the
      trustee), the date established by the court.

      (b) For purposes of this subchapter, the date of termination of a
    multiemployer plan is - 
        (1) in the case of a plan terminated in accordance with the
      provisions of section 1341a of this title, the date determined
      under subsection (b) of that section; or
        (2) in the case of a plan terminated in accordance with the
      provisions of section 1342 of this title, the date agreed to
      between the plan administrator and the corporation (or the
      trustee appointed under section 1342(b)(2) of this title, if
      any), or, if no agreement is reached, the date established by the
      court.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4048, Sept. 2, 1974, 88 Stat. 1028;
    Pub. L. 96-364, title IV, Sec. 402(a)(8), Sept. 26, 1980, 94 Stat.
    1299; Pub. L. 99-272, title XI, Sec. 11016(a)(4), Apr. 7, 1986, 100
    Stat. 268.)


-MISC1-
                                AMENDMENTS                            
      1986 - Subsec. (a). Pub. L. 99-272 in provisions preceding par.
    (1) substituted "termination date" for "date of termination",
    redesignated pars. (1) to (3) as (2) to (4), respectively, added
    par. (1), in par. (2), as so redesignated, inserted "in a distress
    termination" after "terminated" and substituted "section 1341(c)"
    for "section 1341", and in par. (4), as so redesignated,
    substituted "under section 1341(c) or 1342 of this title" for "in
    accordance with the provisions of either section".
      1980 - Subsec. (a). Pub. L. 96-364, Sec. 402(a)(8)(A), (B),
    designated existing provisions as subsec. (a), and inserted
    applicability to a single-employer plan.
      Subsec. (b). Pub. L. 96-364, Sec. 402(a)(8)(C), added subsec.
    (b).

                     EFFECTIVE DATE OF 1986 AMENDMENT                 
      Amendment by Pub. L. 99-272 effective Jan. 1, 1986, with certain
    exceptions, see section 11019 of Pub. L. 99-272, set out as a note
    under section 1341 of this title.

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-364 effective Sept. 26, 1980, except as
    specifically provided, see section 1461(e) of this title.

-End-



-CITE-
    29 USC Sec. 1349                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle C - Terminations

-HEAD-
    Sec. 1349. Repealed.

-MISC1-
    Sec. 1349. Repealed. Pub. L. 100-203, title IX, Sec. 9312(a), Dec.
      22, 1987, 101 Stat. 1330-361.
      Section, Pub. L. 93-406, title IV, Sec. 4049, as added Pub. L. 99-
    272, title XI, Sec. 11012(a), Apr. 7, 1986, 100 Stat. 258; amended
    Pub. L. 99-514, title XVIII, Sec. 1879(u)(2), Oct. 22, 1986, 100
    Stat. 2913; Pub. L. 100-203, title IX, Sec. 9312(d)(2), Dec. 22,
    1987, 101 Stat. 1330-364, related to distribution of liability
    payments to participants and beneficiaries.

                         EFFECTIVE DATE OF REPEAL                     
      Repeal applicable with respect to plan terminations under section
    1341 of this title with respect to which notices of intent to
    terminate are provided under section 1341(a)(2) of this title after
    Dec. 17, 1987, and plan terminations with respect to which
    proceedings are instituted by the Pension Benefit Guaranty
    Corporation under section 1342 of this title after that date, see
    section 9312(d)(1) of Pub. L. 100-203, as amended, set out as an
    Effective Date of 1987 Amendment note under section 1301 of this
    title.

-End-



-CITE-
    29 USC Sec. 1350                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle C - Terminations

-HEAD-
    Sec. 1350. Missing participants

-STATUTE-
    (a) General rule
      (1) Payment to the corporation
        A plan administrator satisfies section 1341(b)(3)(A) of this
      title in the case of a missing participant only if the plan
      administrator - 
          (A) transfers the participant's designated benefit to the
        corporation or purchases an irrevocable commitment from an
        insurer in accordance with clause (i) of section 1341(b)(3)(A)
        of this title, and
          (B) provides the corporation such information and
        certifications with respect to such designated benefits or
        irrevocable commitments as the corporation shall specify.
      (2) Treatment of transferred assets
        A transfer to the corporation under this section shall be
      treated as a transfer of assets from a terminated plan to the
      corporation as trustee, and shall be held with assets of
      terminated plans for which the corporation is trustee under
      section 1342 of this title, subject to the rules set forth in
      that section.
      (3) Payment by the corporation
        After a missing participant whose designated benefit was
      transferred to the corporation is located - 
          (A) in any case in which the plan could have distributed the
        benefit of the missing participant in a single sum without
        participant or spousal consent under section 1055(g) of this
        title, the corporation shall pay the participant or beneficiary
        a single sum benefit equal to the designated benefit paid the
        corporation plus interest as specified by the corporation, and
          (B) in any other case, the corporation shall pay a benefit
        based on the designated benefit and the assumptions prescribed
        by the corporation at the time that the corporation received
        the designated benefit.

      The corporation shall make payments under subparagraph (B)
      available in the same forms and at the same times as a guaranteed
      benefit under section 1322 of this title would be available to be
      paid, except that the corporation may make a benefit available in
      the form of a single sum if the plan provided a single sum
      benefit (other than a single sum described in subsection
      (b)(2)(A) of this section).
    (b) Definitions
      For purposes of this section - 
      (1) Missing participant
        The term "missing participant" means a participant or
      beneficiary under a terminating plan whom the plan administrator
      cannot locate after a diligent search.
      (2) Designated benefit
        The term "designated benefit" means the single sum benefit the
      participant would receive - 
          (A) under the plan's assumptions, in the case of a
        distribution that can be made without participant or spousal
        consent under section 1055(g) of this title;
          (B) under the assumptions of the corporation in effect on the
        date that the designated benefit is transferred to the
        corporation, in the case of a plan that does not pay any single
        sums other than those described in subparagraph (A); or
          (C) under the assumptions of the corporation or of the plan,
        whichever provides the higher single sum, in the case of a plan
        that pays a single sum other than those described in
        subparagraph (A).
    (c) Multiemployer plans
      The corporation shall prescribe rules similar to the rules in
    subsection (a) for multiemployer plans covered by this subchapter
    that terminate under section 1341a of this title.
    (d) Plans not otherwise subject to subchapter
      (1) Transfer to corporation
        The plan administrator of a plan described in paragraph (4) may
      elect to transfer a missing participant's benefits to the
      corporation upon termination of the plan.
      (2) Information to the corporation
        To the extent provided in regulations, the plan administrator
      of a plan described in paragraph (4) shall, upon termination of
      the plan, provide the corporation information with respect to
      benefits of a missing participant if the plan transfers such
      benefits - 
          (A) to the corporation, or
          (B) to an entity other than the corporation or a plan
        described in paragraph (4)(B)(ii).
      (3) Payment by the corporation
        If benefits of a missing participant were transferred to the
      corporation under paragraph (1), the corporation shall, upon
      location of the participant or beneficiary, pay to the
      participant or beneficiary the amount transferred (or the
      appropriate survivor benefit) either - 
          (A) in a single sum (plus interest), or
          (B) in such other form as is specified in regulations of the
        corporation.
      (4) Plans described
        A plan is described in this paragraph if - 
          (A) the plan is a pension plan (within the meaning of section
        1002(2) of this title) - 
            (i) to which the provisions of this section do not apply
          (without regard to this subsection), and
            (ii) which is not a plan described in paragraphs (2)
          through (11) of section 1321(b) of this title, and

          (B) at the time the assets are to be distributed upon
        termination, the plan - 
            (i) has missing participants, and
            (ii) has not provided for the transfer of assets to pay the
          benefits of all missing participants to another pension plan
          (within the meaning of section 1002(2) of this title).
      (5) Certain provisions not to apply
        Subsections (a)(1) and (a)(3) shall not apply to a plan
      described in paragraph (4).
    (e) Regulatory authority
      The corporation shall prescribe such regulations as are necessary
    to carry out the purposes of this section, including rules relating
    to what will be considered a diligent search, the amount payable to
    the corporation, and the amount to be paid by the corporation.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4050, as added Pub. L. 103-465,
    title VII, Sec. 776(a), Dec. 8, 1994, 108 Stat. 5047; amended Pub.
    L. 109-280, title IV, Sec. 410(a), Aug. 17, 2006, 120 Stat. 934.)


-MISC1-
                                AMENDMENTS                            
      2006 - Subsecs. (c) to (e). Pub. L. 109-280 added subsecs. (c)
    and (d) and redesignated former subsec. (c) as (e).

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Amendment by Pub. L. 109-280 applicable to distributions made
    after final regulations implementing subsections (c) and (d) of
    this section are prescribed, see section 410(c) of Pub. L. 109-280,
    set out as a note under section 1056 of this title.

                              EFFECTIVE DATE                          
      Section effective with respect to distributions that occur in
    plan years commencing on or after Jan. 1, 1996, see section 776(e)
    of Pub. L. 103-465, set out as an Effective Date of 1994 Amendment
    note under section 1056 of this title.

-End-


-CITE-
    29 USC Subtitle D - Liability                               01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle D - Liability

-HEAD-
                          SUBTITLE D - LIABILITY                      

-End-



-CITE-
    29 USC Sec. 1361                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle D - Liability

-HEAD-
    Sec. 1361. Amounts payable by corporation

-STATUTE-
      The corporation shall pay benefits under a single-employer plan
    terminated under this subchapter subject to the limitations and
    requirements of subtitle B of this subchapter. The corporation
    shall provide financial assistance to pay benefits under a
    multiemployer plan which is insolvent under section 1426 or
    1441(d)(2)(A) of this title, subject to the limitations and
    requirements of subtitles B, C, and E of this subchapter. Amounts
    guaranteed by the corporation under sections 1322 and 1322a of this
    title shall be paid by the corporation only out of the appropriate
    fund. The corporation shall make payments under the supplemental
    program to reimburse multiemployer plans for uncollectible
    withdrawal liability only out of the fund established under section
    1305(e) of this title.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4061, Sept. 2, 1974, 88 Stat. 1029;
    Pub. L. 96-364, title IV, Sec. 403(f), Sept. 26, 1980, 94 Stat.
    1301.)


-MISC1-
                                AMENDMENTS                            
      1980 - Pub. L. 96-364 substituted provisions relating to payment
    of benefits under a single-employer plan terminated under this
    subchapter subject to limitations and requirements of subtitle B of
    this subchapter for provisions relating to payment of benefits
    under a plan terminated under this subchapter subject to
    limitations and requirements of subtitle B of this subchapter.

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-364 effective Sept. 26, 1980, except as
    specifically provided, see section 1461(e) of this title.

-End-



-CITE-
    29 USC Sec. 1362                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle D - Liability

-HEAD-
    Sec. 1362. Liability for termination of single-employer plans under
      a distress termination or a termination by corporation

-STATUTE-
    (a) In general
      In any case in which a single-employer plan is terminated in a
    distress termination under section 1341(c) of this title or a
    termination otherwise instituted by the corporation under section
    1342 of this title, any person who is, on the termination date, a
    contributing sponsor of the plan or a member of such a contributing
    sponsor's controlled group shall incur liability under this
    section. The liability under this section of all such persons shall
    be joint and several. The liability under this section consists of -
     
        (1) liability to the corporation, to the extent provided in
      subsection (b) of this section, and
        (2) liability to the trustee appointed under subsection (b) or
      (c) of section 1342 of this title, to the extent provided in
      subsection (c) of this section.
    (b) Liability to corporation
      (1) Amount of liability
        (A) In general
          Except as provided in subparagraph (B), the liability to the
        corporation of a person described in subsection (a) of this
        section shall be the total amount of the unfunded benefit
        liabilities (as of the termination date) to all participants
        and beneficiaries under the plan, together with interest (at a
        reasonable rate) calculated from the termination date in
        accordance with regulations prescribed by the corporation.
        (B) Special rule in case of subsequent insufficiency
          For purposes of subparagraph (A), in any case described in
        section 1341(c)(3)(C)(ii) of this title, actuarial present
        values shall be determined as of the date of the notice to the
        corporation (or the finding by the corporation) described in
        such section.
      (2) Payment of liability
        (A) In general
          Except as provided in subparagraph (B), the liability to the
        corporation under this subsection shall be due and payable to
        the corporation as of the termination date, in cash or
        securities acceptable to the corporation.
        (B) Special rule
          Payment of so much of the liability under paragraph (1)(A) as
        exceeds 30 percent of the collective net worth of all persons
        described in subsection (a) of this section (including
        interest) shall be made under commercially reasonable terms
        prescribed by the corporation. The parties involved shall make
        a reasonable effort to reach agreement on such commercially
        reasonable terms. Any such terms prescribed by the corporation
        shall provide for deferral of 50 percent of any amount of
        liability otherwise payable for any year under this
        subparagraph if a person subject to such liability demonstrates
        to the satisfaction of the corporation that no person subject
        to such liability has any individual pre-tax profits for such
        person's fiscal year ending during such year.
      (3) Alternative arrangements
        The corporation and any person liable under this section may
      agree to alternative arrangements for the satisfaction of
      liability to the corporation under this subsection.
    (c) Liability to section 1342 trustee
      A person described in subsection (a) of this section shall be
    subject to liability under this subsection to the trustee appointed
    under subsection (b) or (c) of section 1342 of this title. The
    liability of such person under this subsection shall consist of - 
        (1) the outstanding balance of the accumulated funding
      deficiencies (within the meaning of section 1082(a)(2) of this
      title and section 412(a) of title 26) of the plan (if any)
      (which, for purposes of this subparagraph, shall include the
      amount of any increase in such accumulated funding deficiencies
      of the plan which would result if all pending applications for
      waivers of the minimum funding standard under section 1083 of
      this title or section 412(d) of title 26 and for extensions of
      the amortization period under section 1084 of this title or
      section 412(e) of title 26 with respect to such plan were denied
      and if no additional contributions (other than those already made
      by the termination date) were made for the plan year in which the
      termination date occurs or for any previous plan year),
        (2) the outstanding balance of the amount of waived funding
      deficiencies of the plan waived before such date under section
      1083 of this title or section 412(d) of title 26 (if any), and
        (3) the outstanding balance of the amount of decreases in the
      minimum funding standard allowed before such date under section
      1084 of this title or section 412(e) of title 26 (if any),

    together with interest (at a reasonable rate) calculated from the
    termination date in accordance with regulations prescribed by the
    corporation. The liability under this subsection shall be due and
    payable to such trustee as of the termination date, in cash or
    securities acceptable to such trustee.
    (d) Definitions
      (1) Collective net worth of persons subject to liability
        (A) In general
          The collective net worth of persons subject to liability in
        connection with a plan termination consists of the sum of the
        individual net worths of all persons who - 
            (i) have individual net worths which are greater than zero,
          and
            (ii) are (as of the termination date) contributing sponsors
          of the terminated plan or members of their controlled groups.
        (B) Determination of net worth
          For purposes of this paragraph, the net worth of a person is -
         
            (i) determined on whatever basis best reflects, in the
          determination of the corporation, the current status of the
          person's operations and prospects at the time chosen for
          determining the net worth of the person, and
            (ii) increased by the amount of any transfers of assets
          made by the person which are determined by the corporation to
          be improper under the circumstances, including any such
          transfers which would be inappropriate under title 11 if the
          person were a debtor in a case under chapter 7 of such title.
        (C) Timing of determination
          For purposes of this paragraph, determinations of net worth
        shall be made as of a day chosen by the corporation (during the
        120-day period ending with the termination date) and shall be
        computed without regard to any liability under this section.
      (2) Pre-tax profits
        The term "pre-tax profits" means - 
          (A) except as provided in subparagraph (B), for any fiscal
        year of any person, such person's consolidated net income
        (excluding any extraordinary charges to income and including
        any extraordinary credits to income) for such fiscal year, as
        shown on audited financial statements prepared in accordance
        with generally accepted accounting principles, or
          (B) for any fiscal year of an organization described in
        section 501(c) of title 26, the excess of income over expenses
        (as such terms are defined for such organizations under
        generally accepted accounting principles),

      before provision for or deduction of Federal or other income tax,
      any contribution to any single-employer plan of which such person
      is a contributing sponsor at any time during the period beginning
      on the termination date and ending with the end of such fiscal
      year, and any amounts required to be paid for such fiscal year
      under this section. The corporation may by regulation require
      such information to be filed on such forms as may be necessary to
      determine the existence and amount of such pre-tax profits.
    (e) Treatment of substantial cessation of operations
      If an employer ceases operations at a facility in any location
    and, as a result of such cessation of operations, more than 20
    percent of the total number of his employees who are participants
    under a plan established and maintained by him are separated from
    employment, the employer shall be treated with respect to that plan
    as if he were a substantial employer under a plan under which more
    than one employer makes contributions and the provisions of
    sections 1363, 1364, and 1365 of this title shall apply.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4062, Sept. 2, 1974, 88 Stat. 1029;
    Pub. L. 95-598, title III, Sec. 321(b), Nov. 6, 1978, 92 Stat.
    2678; Pub. L. 96-364, title IV, Sec. 403(g), Sept. 26, 1980, 94
    Stat. 1301; Pub. L. 99-272, title XI, Sec. 11011(a), (b), Apr. 7,
    1986, 100 Stat. 253, 257; Pub. L. 100-203, title IX, Sec.
    9312(b)(1), (2)(A), (B)(ii), Dec. 22, 1987, 101 Stat. 1330-361;
    Pub. L. 101-239, title VII, Secs. 7881(f)(2), (10)(A), (B),
    7891(a)(1), Dec. 19, 1989, 103 Stat. 2440, 2441, 2445; Pub. L. 109-
    280, title I, Sec. 107(b)(4), Aug. 17, 2006, 120 Stat. 819.)


-STATAMEND-
                        AMENDMENT OF SUBSECTION (C)                    
      Pub. L. 109-280, title I, Sec. 107(b)(4), (e), Aug. 17, 2006, 120
    Stat. 819, 820, provided that, applicable to plan years beginning
    after 2007, subsection (c) of this section is amended by striking
    out paragraphs (1) to (3) and adding new paragraphs (1) and (2) to
    read as follows:
        (1) the sum of the shortfall amortization charge (within the
      meaning of section 1083(c)(1) of this title and 430(d)(1) of
      title 26) with respect to the plan (if any) for the plan year in
      which the termination date occurs, plus the aggregate total of
      shortfall amortization installments (if any) determined for
      succeeding plan years under section 1083(c)(2) of this title and
      section 430(d)(2) of title 26 (which, for purposes of this
      subparagraph, shall include any increase in such sum which would
      result if all applications for waivers of the minimum funding
      standard under section 1082(c) of this title and section 412(c)
      of title 26 which are pending with respect to such plan were
      denied and if no additional contributions (other than those
      already made by the termination date) were made for the plan year
      in which the termination date occurs or for any previous plan
      year), and
        (2) the sum of the waiver amortization charge (within the
      meaning of section 1083(e)(1) of this title and 430(e)(1) of
      title 26) with respect to the plan (if any) for the plan year in
      which the termination date occurs, plus the aggregate total of
      waiver amortization installments (if any) determined for
      succeeding plan years under section 1083(e)(2) of this title and
      section 430(e)(2) of title 26,


-MISC1-
                                AMENDMENTS                            
      1989 - Subsec. (a). Pub. L. 101-239, Sec. 7881(f)(2), inserted
    "and" at end of par. (1), redesignated par. (3) as (2), substituted
    "subsection (c)" for "subsection (d)", and struck out former par.
    (2) which read as follows: "liability to the trust established
    pursuant to section 1341(c)(3)(B)(ii) or (iii) of this title or
    section 1342(i) of this title, to the extent provided in subsection
    (c) of this section, and".
      Subsec. (b)(2)(B). Pub. L. 101-239, Sec. 7881(f)(10)(A),
    substituted "so much of the liability under paragraph (1)(A) as
    exceeds 30 percent of the collective net worth of all persons
    described in subsection (a) of this section (including interest)"
    for "the liability under paragraph (1)(A)(ii)".
      Subsecs. (c)(1), (d)(2)(B). Pub. L. 101-239, Sec. 7891(a)(1),
    substituted "Internal Revenue Code of 1986" for "Internal Revenue
    Code of 1954", which for purposes of codification was translated as
    "title 26" thus requiring no change in text.
      Subsec. (d)(3). Pub. L. 101-239, Sec. 7881(f)(10)(B), amended
    Pub. L. 100-203, Sec. 9312(b)(2)(B)(ii), see 1987 Amendment note
    below.
      1987 - Subsec. (b)(1)(A). Pub. L. 100-203, Sec. 9312(b)(2)(A),
    amended subpar. (A) generally. Prior to amendment, subpar. (A) read
    as follows: "Except as provided in subparagraph (B), the liability
    to the corporation of a person described in subsection (a) of this
    section shall consist of the sum of - 
        "(i) the lesser of - 
          "(I) the total amount of unfunded guaranteed benefits (as of
        the termination date) of all participants and beneficiaries
        under the plan, or
          "(II) 30 percent of the collective net worth of all persons
        described in subsection (a) of this section,
      and
        "(ii) the excess (if any) of - 
          "(I) 75 percent of the amount described in clause (i)(I),
        over
          "(II) the amount described in clause (i)(II),
    together with interest (at a reasonable rate) calculated from the
    termination date in accordance with regulations prescribed by the
    corporation."
      Subsec. (c). Pub. L. 100-203, Sec. 9312(b)(1), redesignated
    subsec. (d) as (c) and struck out former subsec. (c) which related
    to liability to section 1349 trust.
      Subsec. (d). Pub. L. 100-203, Sec. 9312(b)(1)(B), redesignated
    subsec. (e) as (d). Former subsec. (d) redesignated (c).
      Subsec. (d)(3). Pub. L. 100-203, Sec. 9312(b)(2)(B)(ii), as
    amended by Pub. L. 101-239, Sec. 7881(f)(10)(B), struck out par.
    (3) which read as follows: "The liability payment years in
    connection with a terminated plan consist of the consecutive one-
    year periods following the last plan year preceding the
    termination date, excluding the first such year in any case in
    which the first such year ends less than 180 days after the
    termination date."
      Subsecs. (e), (f). Pub. L. 100-203, Sec. 9312(b)(1)(B),
    redesignated subsec. (f) as (e). Former subsec. (e) redesignated
    (d).
      1986 - Pub. L. 99-272, Sec. 11011(a)(2), substituted "Liability
    for termination of single-employer plans under a distress
    termination or a termination by the corporation" for "Liability of
    employer" in section catchline.
      Subsec. (a). Pub. L. 99-272, Sec. 11011(a)(2), added subsec. (a)
    specifying persons liable and the nature and extent of liability
    and struck out former subsec. (a) specifying employers covered.
      Subsec. (b). Pub. L. 99-272, Sec. 11011(a)(2), added subsec. (b)
    relating to liability to corporation and struck out former subsec.
    (b) relating to amount of liability.
      Subsec. (c). Pub. L. 99-272, Sec. 11011(a)(2), added subsec. (c)
    relating to liability to section 1349 trust and struck out former
    subsec. (c) relating to method of determining net worth of
    employer.
      Subsec. (d). Pub. L. 99-272, Sec. 11011(a)(2), added subsec. (d)
    relating to liability to section 1342 trustee and struck out former
    subsec. (d) relating to corporate reorganizations.
      Subsec. (e). Pub. L. 99-272, Sec. 11011(a), added subsec. (e) and
    redesignated former subsec. (e) as (f).
      Subsec. (f). Pub. L. 99-272, Sec. 11011(a)(1), (b), redesignated
    former subsec. (e) as (f), and substituted in heading "Treatment of
    substantial cessation of operations" for "Cessation of operations
    at one facility".
      1980 - Subsec. (a). Pub. L. 96-364 substituted "single-employee
    plan" for "plan (other than a multiemployer plan)".
      1978 - Subsec. (c)(2). Pub. L. 95-598 substituted "title 11" and
    "a debtor in a case under chapter 7 of such title" for "the
    Bankruptcy Act" and "the subject of a proceeding under that Act",
    respectively.

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Amendment by Pub. L. 109-280 applicable to plan years beginning
    after 2007, see section 107(e) of Pub. L. 109-280, set out as a
    note under section 1021 of this title.

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by section 7881(f)(2), (10)(A), (B) of Pub. L. 101-239
    effective, except as otherwise provided, as if included in the
    provision of the Pension Protection Act, Pub. L. 100-203, Secs.
    9302-9346, to which such amendment relates, see section 7882 of
    Pub. L. 101-239, set out as a note under section 401 of Title 26,
    Internal Revenue Code.
      Amendment by section 7891(a)(1) of Pub. L. 101-239 effective,
    except as otherwise provided, as if included in the provision of
    the Tax Reform Act of 1986, Pub. L. 99-514, to which such amendment
    relates, see section 7891(f) of Pub. L. 101-239, set out as a note
    under section 1002 of this title.

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Amendment by Pub. L. 100-203 applicable with respect to plan
    terminations under section 1341 of this title with respect to which
    notices of intent to terminate are provided under section
    1341(a)(2) of this title after Dec. 17, 1987, and plan terminations
    with respect to which proceedings are instituted by the Pension
    Benefit Guaranty Corporation under section 1342 of this title after
    that date, see section 9312(d)(1) of Pub. L. 100-203, as amended,
    set out as a note under section 1301 of this title.

                     EFFECTIVE DATE OF 1986 AMENDMENT                 
      Amendment by Pub. L. 99-272 effective Jan. 1, 1986, with certain
    exceptions, see section 11019 of Pub. L. 99-272, set out as a note
    under section 1341 of this title.

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-364 effective Sept. 26, 1980, except as
    specifically provided, see section 1461(e) of this title.

                     EFFECTIVE DATE OF 1978 AMENDMENT                 
      Amendment by Pub. L. 95-598 effective Oct. 1, 1979, see section
    402(a) of Pub. L. 95-598, set out as an Effective Date note
    preceding section 101 of Title 11, Bankruptcy.

    APPLICABILITY OF AMENDMENTS BY SUBTITLES A AND B OF TITLE I OF PUB.
                                L. 109-280
      For special rules on applicability of amendments by subtitles A
    (Secs. 101-107) and B (Secs. 111-116) of title I of Pub. L. 109-280
    to certain eligible cooperative plans, PBGC settlement plans, and
    eligible government contractor plans, see sections 104, 105, and
    106 of Pub. L. 109-280, set out as notes under section 401 of Title
    26, Internal Revenue Code.

                       SPECIAL DELAYED PAYMENT RULE                   
      Section 11012(d) of Pub. L. 99-272 provided that: "In the case of
    a distress termination under section 4041(c) of the Employee
    Retirement Income Security Act of 1974 (as amended by section
    11009) [29 U.S.C. 1341(c)] pursuant to a notice of intent to
    terminate filed before January 1, 1987, no payment of liability
    otherwise payable as provided in section 4062(c)(2)(B) of such Act
    [29 U.S.C. 1362(c)(2)(B)] (as amended by this section [Act]) shall
    be required to be made before January 1, 1989."

-End-



-CITE-
    29 USC Sec. 1363                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle D - Liability

-HEAD-
    Sec. 1363. Liability of substantial employer for withdrawal from
      single-employer plans under multiple controlled groups

-STATUTE-
    (a) Single-employer plans with two or more contributing sponsors
      Except as provided in subsection (d) of this section, the plan
    administrator of a single-employer plan which has two or more
    contributing sponsors at least two of whom are not under common
    control - 
        (1) shall notify the corporation of the withdrawal during a
      plan year of a substantial employer for such plan year from the
      plan, within 60 days after such withdrawal, and
        (2) request that the corporation determine the liability of all
      persons with respect to the withdrawal of the substantial
      employer.

    The corporation shall, as soon as practicable thereafter, determine
    whether there is liability resulting from the withdrawal of the
    substantial employer and notify the liable persons of such
    liability.
    (b) Computation of liability
      Except as provided in subsection (c) of this section, any one or
    more contributing sponsors who withdraw, during a plan year for
    which they constitute a substantial employer, from a single-
    employer plan which has two or more contributing sponsors at least
    two of whom are not under common control, shall, upon notification
    of such contributing sponsors by the corporation as provided by
    subsection (a) of this section, be liable, together with the
    members of their controlled groups, to the corporation in
    accordance with the provisions of section 1362 of this title and
    this section. The amount of liability shall be computed on the
    basis of an amount determined by the corporation to be the amount
    described in section 1362 of this title for the entire plan, as if
    the plan had been terminated by the corporation on the date of the
    withdrawal referred to in subsection (a)(1) of this section
    multiplied by a fraction - 
        (1) the numerator of which is the total amount required to be
      contributed to the plan by such contributing sponsors for the
      last 5 years ending prior to the withdrawal, and
        (2) the denominator of which is the total amount required to be
      contributed to the plan by all contributing sponsors for such
      last 5 years.

    In addition to and in lieu of the manner prescribed in the
    preceding sentence, the corporation may also determine such
    liability on any other equitable basis prescribed by the
    corporation in regulations. Any amount collected by the corporation
    under this subsection shall be held in escrow subject to
    disposition in accordance with the provisions of paragraphs (2) and
    (3) of subsection (c) of this section.
    (c) Bond in lieu of payment of liability; 5-year termination period
      (1) In lieu of payment of a contributing sponsor's liability
    under this section, the contributing sponsor may be required to
    furnish a bond to the corporation in an amount not exceeding 150
    percent of his liability to insure payment of his liability under
    this section. The bond shall have as surety thereon a corporate
    surety company which is an acceptable surety on Federal bonds under
    authority granted by the Secretary of the Treasury under sections
    9304-9308 of title 31. Any such bond shall be in a form or of a
    type approved by the Secretary including individual bonds or
    schedule or blanket forms of bonds which cover a group or class.
      (2) If the plan is not terminated under section 1341(c) or 1342
    of this title within the 5-year period commencing on the day of
    withdrawal, the liability is abated and any payment held in escrow
    shall be refunded without interest (or the bond cancelled) in
    accordance with bylaws or rules prescribed by the corporation.
      (3) If the plan terminates under section 1341(c) or 1342 of this
    title within the 5-year period commencing on the day of withdrawal,
    the corporation shall - 
        (A) demand payment or realize on the bond and hold such amount
      in escrow for the benefit of the plan;
        (B) treat any escrowed payments under this section as if they
      were plan assets and apply them in a manner consistent with this
      subtitle; and
        (C) refund any amount to the contributing sponsor which is not
      required to meet any obligation of the corporation with respect
      to the plan.
    (d) Alternate appropriate procedure
      The provisions of this subsection apply in the case of a
    withdrawal described in subsection (a) of this section, and the
    provisions of subsections (b) and (c) of this section shall not
    apply, if the corporation determines that the procedure provided
    for under this subsection is consistent with the purposes of this
    section and section 1364 of this title and is more appropriate in
    the particular case. Upon a showing by the plan administrator of
    the plan that the withdrawal from the plan by one or more
    contributing sponsors has resulted, or will result, in a
    significant reduction in the amount of aggregate contributions to
    or under the plan, the corporation may - 
        (1) require the plan fund to be equitably allocated between
      those participants no longer working in covered service under the
      plan as a result of the withdrawal, and those participants who
      remain in covered service under the plan;
        (2) treat that portion of the plan funds allocable under
      paragraph (1) to participants no longer in covered service as a
      plan terminated under section 1342 of this title; and
        (3) treat that portion of the plan fund allocable to
      participants remaining in covered service as a separate plan.
    (e) Indemnity agreement
      The corporation is authorized to waive the application of the
    provisions of subsections (b), (c), and (d) of this section
    whenever it determines that there is an indemnity agreement in
    effect among contributing sponsors under the plan which is adequate
    to satisfy the purposes of this section and of section 1364 of this
    title.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4063, Sept. 2, 1974, 88 Stat. 1030;
    Pub. L. 96-364, title IV, Sec. 403(h), Sept. 26, 1980, 94 Stat.
    1301; Pub. L. 99-272, title XI, Sec. 11016(a)(5)(A), Apr. 7, 1986,
    100 Stat. 268.)

-COD-
                               CODIFICATION                           
      In subsec. (c)(1), "sections 9304-9308 of title 31" substituted
    for "sections 6 through 13 of title 6, United States Code" on
    authority of Pub. L. 97-258, Sec. 4(b), Sept. 13, 1982, 96 Stat.
    1067, the first section of which enacted Title 31, Money and
    Finance.


-MISC1-
                                AMENDMENTS                            
      1986 - Pub. L. 99-272, Sec. 11016(a)(5)(A)(vi), inserted "from
    single-employer plans under multiple controlled groups" in section
    catchline.
      Subsec. (a). Pub. L. 99-272, Sec. 11016(a)(5)(A)(i), in
    introductory par., substituted "single-employer plan which has two
    or more contributing sponsors at least two of whom are not under
    common control" for "plan under which more than one employer makes
    contributions (other than a multiemployer plan)", in par. (1),
    substituted "withdrawal during a plan year of a substantial
    employer for such plan year" for "withdrawal of a substantial
    employer", in par. (2), substituted "of all persons with respect to
    the withdrawal of the substantial employer" for "of such employer
    under this subtitle with respect to such withdrawal", and in
    concluding provision substituted "whether there is liability
    resulting from the withdrawal of the substantial employer" for
    "whether such employer is liable for any amount under this subtitle
    with respect to the withdrawal" and "notify the liable persons" for
    "notify such employer".
      Subsec. (b). Pub. L. 99-272, Sec. 11016(a)(5)(A)(ii), in
    introductory par., substituted "any one or more contributing
    sponsors who withdraw, during a plan year for which they constitute
    a substantial employer, from a single-employer plan which has two
    or more contributing sponsors at least two of whom are not under
    common control, shall, upon notification of such contributing
    sponsors by the corporation as provided by subsection (a) of this
    section, be liable, together with the members of their controlled
    groups," for "an employer who withdraws from a plan to which
    section 1321 of this title applies, during a plan year for which he
    was a substantial employer, and who is notified by the corporation
    as provided by subsection (a) of this section, shall be liable",
    "amount of liability" for "amount of such employer's liability",
    and "the withdrawal referred to in subsection (a)(1) of this
    section" for "the employer's withdrawal", in par. (1), substituted
    "such contributing sponsors" for "such employer", in par. (2),
    substituted "all contributing sponsors" for "all employers", and in
    concluding provision substituted "such liability" for "the
    liability of each such employer".
      Subsec. (c)(1). Pub. L. 99-272, Sec. 11016(a)(5)(A)(iii)(I),
    substituted "of a contributing sponsor's liability under this
    section, the contributing sponsor" for "of his liability under this
    section the employer".
      Subsec. (c)(2). Pub. L. 99-272, Sec. 11016(a)(5)(A)(iii)(II),
    inserted "under section 1341(c) or 1342 of this title" and
    substituted "liability is" for "liability of such employer is" and
    "(or the bond cancelled)" for "to the employer (or his bond
    cancelled)".
      Subsec. (c)(3). Pub. L. 99-272, Sec. 11016(a)(5)(A)(iii)(III), in
    introductory par., inserted "under section 1341(c) or 1342 of this
    title" and, in subpar. (C), substituted "contributing sponsor" for
    "employer".
      Subsec. (d). Pub. L. 99-272, Sec. 11016(a)(5)(A)(iv), in
    introductory par., substituted "of the plan that the withdrawal
    from the plan by one or more contributing sponsors" for "of a plan
    (other than a multiemployer plan) that the withdrawal from the plan
    by any employer or employers" and struck out "by employers" after
    "contributions to or under the plan", in par. (1), substituted "the
    withdrawal" for "their employer's withdrawal", and in par. (2),
    substituted "plan terminated under section 1342 of this title" for
    "termination".
      Subsec. (e). Pub. L. 99-272, Sec. 11016(a)(5)(A)(v), struck out
    "to any employer or plan administrator" before "whenever it
    determines" and substituted "contributing sponsors" for "all other
    employers".
      1980 - Subsecs. (a), (d). Pub. L. 96-364 inserted provisions
    excepting a multiemployer plan.

                     EFFECTIVE DATE OF 1986 AMENDMENT                 
      Amendment by Pub. L. 99-272 effective Jan. 1, 1986, with certain
    exceptions, see section 11019 of Pub. L. 99-272, set out as a note
    under section 1341 of this title.

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-364 effective Sept. 26, 1980, except as
    specifically provided, see section 1461(e) of this title.

-End-



-CITE-
    29 USC Sec. 1364                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle D - Liability

-HEAD-
    Sec. 1364. Liability on termination of single-employer plans under
      multiple controlled groups

-STATUTE-
      (a) This section applies to all contributing sponsors of a single-
    employer plan which has two or more contributing sponsors at least
    two of whom are not under common control at the time such plan is
    terminated under section 1341(c) or 1342 of this title, or who, at
    any time within the 5 plan years preceding the date of termination,
    made contributions under the plan.
      (b) The corporation shall determine the liability with respect to
    each contributing sponsor and each member of its controlled group
    in a manner consistent with section 1362 of this title, except that
    the amount of liability determined under section 1362(b)(1) of this
    title with respect to the entire plan shall be allocated to each
    controlled group by multiplying such amount by a fraction - 
        (1) the numerator of which is the amount required to be
      contributed to the plan for the last 5 plan years ending prior to
      the termination date by persons in such controlled group as
      contributing sponsors, and
        (2) the denominator of which is the total amount required to be
      contributed to the plan for such last 5 plan years by all persons
      as contributing sponsors,

    and section 1368(a) of this title shall be applied separately with
    respect to each controlled group. The corporation may also
    determine the liability of each such contributing sponsor and
    member of its controlled group on any other equitable basis
    prescribed by the corporation in regulations.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4064, Sept. 2, 1974, 88 Stat. 1031;
    Pub. L. 96-364, title IV, Sec. 403(i), Sept. 26, 1980, 94 Stat.
    1301; Pub. L. 99-272, title XI, Sec. 11016(a)(5)(B), Apr. 7, 1986,
    100 Stat. 270; Pub. L. 100-203, title IX, Sec. 9312(b)(2)(C)(i),
    Dec. 22, 1987, 101 Stat. 1330-361; Pub. L. 101-239, title VII, Sec.
    7881(f)(3)(A), Dec. 19, 1989, 103 Stat. 2440.)


-MISC1-
                                AMENDMENTS                            
      1989 - Subsec. (b). Pub. L. 101-239 substituted "section 1368(a)"
    for "clauses (i)(II) and (ii) of section 1362(b)(1)(A)".
      1987 - Subsec. (b). Pub. L. 100-203 amended first sentence
    generally. Prior to amendment, first sentence read as follows: "The
    corporation shall determine the liability with respect to each
    contributing sponsor and each member of its controlled group in a
    manner consistent with section 1362 of this title, except that - 
        "(1) the amount of the liability determined under section
      1362(b)(1) of this title with respect to the entire plan - 
          "(A) shall be determined without regard to clauses (i)(II)
        and (ii) of section 1362(b)(1)(A) of this title, and
          "(B) shall be allocated to each controlled group by
        multiplying such amount by a fraction - 
            "(i) the numerator of which is the amount required to be
          contributed to the plan for the last 5 plan years ending
          prior to the termination date by persons in such controlled
          group as contributing sponsors, and
            "(ii) the denominator of which is the total amount required
          to be contributed to the plan for such last 5 plan years by
          all persons as contributing sponsors,
      and clauses (i)(II) and (ii) of section 1362(b)(1)(A) of this
      title shall be applied separately with respect to each such
      controlled group, and
        "(2) the amount of the liability determined under section
      1362(c)(1) of this title with respect to the entire plan shall be
      allocated to each controlled group by multiplying such amount by
      the fraction described in paragraph (1)(B) in connection with
      such controlled group."
      1986 - Pub. L. 99-272, Sec. 11016(a)(5)(B)(iii), substituted "on
    termination of single-employer plans under multiple controlled
    groups" for "of employers on termination of plan maintained by more
    than one employer" in section catchline.
      Subsec. (a). Pub. L. 99-272, Sec. 11016(a)(5)(B)(i), substituted
    "all contributing sponsors of a single-employer plan which has two
    or more contributing sponsors at least two of whom are not under
    common control" for "all employers who maintain a plan under which
    more than one employer makes contributions (other than a
    multiemployer plan)" and inserted "under section 1341(c) or 1342 of
    this title" after "terminated".
      Subsec. (b). Pub. L. 99-272, Sec. 11016(a)(5)(B)(ii), amended
    subsec. (b) generally, substituting reference to each contributing
    sponsor and each member of its controlled group for reference to
    each employer of a plan maintained by more than one employer and
    inserted provisions that liability determined under section
    1362(b)(1) of this title with respect to the entire plan be
    determined without regard to cls. (i)(II) and (ii) of section
    1362(b)(1)(A) of this title and that the amount of liability
    determined under section 1362(c)(1) of this title with respect to
    the entire plan be allocated to each controlled group by
    multiplying such amount by the fraction described in par. (1)(B) in
    connection with such controlled group.
      1980 - Subsec. (a). Pub. L. 96-364 inserted provisions excepting
    a multiemployer plan.

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by Pub. L. 101-239 effective, except as otherwise
    provided, as if included in the provision of the Pension Protection
    Act, Pub. L. 100-203, Secs. 9302-9346, to which such amendment
    relates, see section 7882 of Pub. L. 101-239, set out as a note
    under section 401 of Title 26, Internal Revenue Code.

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Amendment by Pub. L. 100-203 applicable with respect to plan
    terminations under section 1341 of this title with respect to which
    notices of intent to terminate are provided under section
    1341(a)(2) of this title after Dec. 17, 1987, and plan terminations
    with respect to which proceedings are instituted by the Pension
    Benefit Guaranty Corporation under section 1342 of this title after
    that date, see section 9312(d)(1) of Pub. L. 100-203, as amended,
    set out as a note under section 1301 of this title.

                     EFFECTIVE DATE OF 1986 AMENDMENT                 
      Amendment by Pub. L. 99-272 effective Jan. 1, 1986, with certain
    exceptions, see section 11019 of Pub. L. 99-272, set out as a note
    under section 1341 of this title.

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-364 effective Sept. 26, 1980, except as
    specifically provided, see section 1461(e) of this title.

-End-



-CITE-
    29 USC Sec. 1365                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle D - Liability

-HEAD-
    Sec. 1365. Annual report of plan administrator

-STATUTE-
      For each plan year for which section 1321 of this title applies
    to a plan, the plan administrator shall file with the corporation,
    on a form prescribed by the corporation, an annual report which
    identifies the plan and plan administrator and which includes - 
        (1) a copy of each notification required under section 1363 of
      this title with respect to such year,
        (2) a statement disclosing whether any reportable event
      (described in section 1343(b) (!1) of this title) occurred during
      the plan year except to the extent the corporation waives such
      requirement, and

        (3) in the case of a multiemployer plan, information with
      respect to such plan which the corporation determines is
      necessary for the enforcement of subtitle E of this subchapter
      and requires by regulation, which may include - 
          (A) a statement certified by the plan's enrolled actuary of -
        
            (i) the value of all vested benefits under the plan as of
          the end of the plan year, and
            (ii) the value of the plan's assets as of the end of the
          plan year;

          (B) a statement certified by the plan sponsor of each claim
        for outstanding withdrawal liability (within the meaning of
        section 1301(a)(12) of this title) and its value as of the end
        of that plan year and as of the end of the preceding plan year;
        and
          (C) the number of employers having an obligation to
        contribute to the plan and the number of employers required to
        make withdrawal liability payments.

    The report shall be filed within 6 months after the close of the
    plan year to which it relates. The corporation shall cooperate with
    the Secretary of the Treasury and the Secretary of Labor in an
    endeavor to coordinate the timing and content, and possibly obtain
    the combination, of reports under this section with reports
    required to be made by plan administrators to such Secretaries.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4065, Sept. 2, 1974, 88 Stat. 1032;
    Pub. L. 96-364, title I, Sec. 106, Sept. 26, 1980, 94 Stat. 1266.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 1343(b) of this title, referred to in par. (2), was
    redesignated section 1343(c) of this title and a new section
    1343(b) was added by Pub. L. 103-465, title VII, Sec. 771(b), Dec.
    8, 1994, 108 Stat. 5042.


-MISC1-
                                AMENDMENTS                            
      1980 - Pub. L. 96-364 inserted provisions in par. (2) respecting
    waiver by corporation and added par. (3).

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-364 effective Sept. 26, 1980, except as
    specifically provided, see section 1461(e) of this title.

-FOOTNOTE-
    (!1) See References in Text note below.


-End-



-CITE-
    29 USC Sec. 1366                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle D - Liability

-HEAD-
    Sec. 1366. Annual notification to substantial employers

-STATUTE-
      The plan administrator of each single-employer plan which has at
    least two contributing sponsors at least two of whom are not under
    common control shall notify, within 6 months after the close of
    each plan year, any contributing sponsor of the plan who is
    described in section 1301(a)(2) of this title that such
    contributing sponsor (alone or together with members of such
    contributing sponsor's controlled group) constitutes a substantial
    employer for that year.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4066, Sept. 2, 1974, 88 Stat. 1032;
    Pub. L. 96-364, title IV, Sec. 403(j), Sept. 26, 1980, 94 Stat.
    1301; Pub. L. 99-272, title XI, Sec. 11016(a)(5)(C), Apr. 7, 1986,
    100 Stat. 271; Pub. L. 101-239, title VII, Sec. 7893(g)(2), Dec.
    19, 1989, 103 Stat. 2447.)


-MISC1-
                                AMENDMENTS                            
      1989 - Pub. L. 101-239 inserted "any" before "contributing
    sponsor of the plan".
      1986 - Pub. L. 99-272 substituted "each single-employer plan
    which has at least two contributing sponsors at least two of whom
    are not under common control" for "each plan under which
    contributions are made by more than one employer (other than a
    multiemployer plan)", "contributing sponsor of the plan" for "any
    employer making contributions under that plan", and "that such
    contributing sponsor (alone or together with members of such
    contributing sponsor's controlled group) constitutes a substantial
    employer" for "that he is a substantial employer".
      1980 - Pub. L. 96-364 inserted provisions excepting a
    multiemployer plan.

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by Pub. L. 101-239 effective as if included in the
    provision of the Single-Employer Pension Plan Amendments Act of
    1986, Pub. L. 99-272, title XI, to which such amendment relates,
    see section 7893(h) of Pub. L. 101-239, set out as a note under
    section 1002 of this title.

                     EFFECTIVE DATE OF 1986 AMENDMENT                 
      Amendment by Pub. L. 99-272 effective Jan. 1, 1986, with certain
    exceptions, see section 11019 of Pub. L. 99-272, set out as a note
    under section 1341 of this title.

                     EFFECTIVE DATE OF 1980 AMENDMENT                 
      Amendment by Pub. L. 96-364 effective Sept. 26, 1980, except as
    specifically provided, see section 1461(e) of this title.

-End-



-CITE-
    29 USC Sec. 1367                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle D - Liability

-HEAD-
    Sec. 1367. Recovery of liability for plan termination

-STATUTE-
      The corporation is authorized to make arrangements with
    contributing sponsors and members of their controlled groups who
    are or may become liable under section 1362, 1363, or 1364 of this
    title for payment of their liability, including arrangements for
    deferred payment of amounts of liability to the corporation
    accruing as of the termination date on such terms and for such
    periods as the corporation deems equitable and appropriate.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4067, Sept. 2, 1974, 88 Stat. 1032;
    Pub. L. 99-272, title XI, Sec. 11016(a)(6)(A), Apr. 7, 1986, 100
    Stat. 271; Pub. L. 100-203, title IX, Sec. 9313(b)(6), Dec. 22,
    1987, 101 Stat. 1330-366; Pub. L. 101-239, title VII, Sec.
    7893(g)(3), Dec. 19, 1989, 103 Stat. 2448.)


-MISC1-
                                AMENDMENTS                            
      1989 - Pub. L. 101-239 amended directory language of Pub. L. 99-
    272, Sec. 11016(a)(6)(A)(ii), see 1986 Amendment note below.
      1987 - Pub. L. 100-203 inserted "or may become" after "who are".
      1986 - Pub. L. 99-272, Sec. 11016(a)(6)(A)(i), (iii), substituted
    "of liability" for "of employer liability" in section catchline and
    inserted "of amounts of liability to the corporation accruing as of
    the termination date" in text.
      Pub. L. 99-272, Sec. 11016(a)(6)(A)(ii), as amended by Pub. L.
    101-239, substituted "contributing sponsors and members of their
    controlled groups" for "employers".

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by Pub. L. 101-239 effective as if included in the
    provision of the Single-Employer Pension Plan Amendments Act of
    1986, Pub. L. 99-272, title XI, to which such amendment relates,
    see section 7893(h) of Pub. L. 101-239, set out as a note under
    section 1002 of this title.

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Amendment by Pub. L. 100-203 applicable with respect to plan
    terminations under section 1341 of this title with respect to which
    notices of intent to terminate are provided under section
    1341(a)(2) of this title after Dec. 17, 1987, see section 9313(c)
    of Pub. L. 100-203, set out as a note under section 1301 of this
    title.

                     EFFECTIVE DATE OF 1986 AMENDMENT                 
      Amendment by Pub. L. 99-272 effective Jan. 1, 1986, with certain
    exceptions, see section 11019 of Pub. L. 99-272, set out as a note
    under section 1341 of this title.

-End-



-CITE-
    29 USC Sec. 1368                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle D - Liability

-HEAD-
    Sec. 1368. Lien for liability

-STATUTE-
    (a) Creation of lien
      If any person liable to the corporation under section 1362, 1363,
    or 1364 of this title neglects or refuses to pay, after demand, the
    amount of such liability (including interest), there shall be a
    lien in favor of the corporation in the amount of such liability
    (including interest) upon all property and rights to property,
    whether real or personal, belonging to such person, except that
    such lien may not be in an amount in excess of 30 percent of the
    collective net worth of all persons described in section 1362(a) of
    this title (!1)

    (b) Term of lien
      The lien imposed by subsection (a) of this section arises on the
    date of termination of a plan, and continues until the liability
    imposed under section 1362, 1363, or 1364 of this title is
    satisfied or becomes unenforceable by reason of lapse of time.
    (c) Priority
      (1) Except as otherwise provided under this section, the priority
    of a lien imposed under subsection (a) of this section shall be
    determined in the same manner as under section 6323 of title 26 (as
    in effect on April 7, 1986). Such section 6323 shall be applied for
    purposes of this section by disregarding subsection (g)(4) and by
    substituting - 
        (A) "lien imposed by section 4068 of the Employee Retirement
      Income Security Act of 1974 [29 U.S.C. 1368]" for "lien imposed
      by section 6321" each place it appears in subsections (a), (b),
      (c)(1), (c)(4)(B), (d), (e), and (h)(5);
        (B) "the corporation" for "the Secretary" in subsections (a)
      and (b)(9)(C);
        (C) "the payment of the amount on which the section 4068(a)
      lien is based" for "the collection of any tax under this title"
      in subsection (b)(3);
        (D) "a person whose property is subject to the lien" for "the
      taxpayer" in subsections (b)(8), (c)(2)(A)(i) (the first place it
      appears), (c)(2)(A)(ii), (c)(2)(B), (c)(4)(B), and (c)(4)(C) (in
      the matter preceding clause (i));
        (E) "such person" for "the taxpayer" in subsections
      (c)(2)(A)(i) (the second place it appears) and (c)(4)(C)(ii);
        (F) "payment of the loan value of the amount on which the lien
      is based is made to the corporation" for "satisfaction of a levy
      pursuant to section 6332(b)" in subsection (b)(9)(C);
        (G) "section 4068(a) lien" for "tax lien" each place it appears
      in subsections (c)(1), (c)(2)(A), (c)(2)(B), (c)(3)(B)(iii),
      (c)(4)(B), (d), and (h)(5); and
        (H) "the date on which the lien is first filed" for "the date
      of the assessment of the tax" in subsection (g)(3)(A).

      (2) In a case under title 11 or in insolvency proceedings, the
    lien imposed under subsection (a) of this section shall be treated
    in the same manner as a tax due and owing to the United States for
    purposes of title 11 or section 3713 of title 31.
      (3) For purposes of applying section 6323(a) of title 26 to
    determine the priority between the lien imposed under subsection
    (a) of this section and a Federal tax lien, each lien shall be
    treated as a judgment lien arising as of the time notice of such
    lien is filed.
      (4) For purposes of this subsection, notice of the lien imposed
    by subsection (a) of this section shall be filed in the same manner
    as under section 6323(f) and (g) of title 26.
    (d) Civil action; limitation period
      (1) In any case where there has been a refusal or neglect to pay
    the liability imposed under section 1362, 1363, or 1364 of this
    title, the corporation may bring civil action in a district court
    of the United States to enforce the lien of the corporation under
    this section with respect to such liability or to subject any
    property, of whatever nature, of the liable person, or in which he
    has any right, title, or interest to the payment of such liability.
      (2) The liability imposed by section 1362, 1363, or 1364 of this
    title may be collected by a proceeding in court if the proceeding
    is commenced within 6 years after the date upon which the plan was
    terminated or prior to the expiration of any period for collection
    agreed upon in writing by the corporation and the liable person
    before the expiration of such 6-year period. The period of
    limitations provided under this paragraph shall be suspended for
    the period the assets of the liable person are in the control or
    custody of any court of the United States, or of any State, or of
    the District of Columbia, and for 6 months thereafter, and for any
    period during which the liable person is outside the United States
    if such period of absence is for a continuous period of at least 6
    months.
    (e) Release or subordination
      If the corporation determines that release of the lien or
    subordination of the lien to any other creditor of the liable
    person would not adversely affect the collection of the liability
    imposed under section 1362, 1363, or 1364 of this title, or that
    the amount realizable by the corporation from the property to which
    the lien attaches will ultimately be increased by such release or
    subordination, and that the ultimate collection of the liability
    will be facilitated by such release or subordination, the
    corporation may issue a certificate of release or subordination of
    the lien with respect to such property, or any part thereof.
    (f) Definitions
      For purposes of this section - 
        (1) The collective net worth of persons subject to liability in
      connection with a plan termination shall be determined as
      provided in section 1362(d)(1) of this title.
        (2) The term "pre-tax profits" has the meaning provided in
      section 1362(d)(2) of this title.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4068, Sept. 2, 1974, 88 Stat. 1032;
    Pub. L. 95-598, title III, Sec. 321(c), Nov. 6, 1978, 92 Stat.
    2678; Pub. L. 99-272, title XI, Sec. 11016(a)(6)(B), (c)(14), Apr.
    7, 1986, 100 Stat. 271, 275; Pub. L. 100-203, title IX, Sec.
    9312(b)(2)(B)(i), (C)(ii), Dec. 22, 1987, 101 Stat. 1330-361, 1330-
    362; Pub. L. 101-239, title VII, Secs. 7881(f)(3)(B), (10)(C),
    (12), 7891(a)(1), 7894(g)(4)(A), Dec. 19, 1989, 103 Stat. 2440,
    2441, 2445, 2451.)

-COD-
                               CODIFICATION                           
      A former subsec. (f) of this section was originally subsec. (e)
    of section 1362 of this title and was redesignated as subsec. (f)
    of this section by Pub. L. 100-203, Sec. 9312(b)(2)(B)(ii).
    Subsequently, Pub. L. 100-203, Sec. 9312(b)(2)(B)(ii), was amended
    generally by Pub. L. 101-239, Sec. 7881(f)(10)(B), and, as so
    amended, no longer contains language redesignating subsec. (e) of
    section 1362 as subsec. (f) of this section. As a result of that
    amendment, the transfer of subsec. (e) of section 1362 to subsec.
    (f) of this section was rescinded.


-MISC1-
                                AMENDMENTS                            
      1989 - Subsec. (a). Pub. L. 101-239, Sec. 7881(f)(12), struck out
    "to the extent such amount does not exceed 30 percent of the
    collective net worth of all persons described in section 1362(a) of
    this title" after "the amount of such liability" and substituted
    "in the amount of such liability (including interest) upon all
    property and rights to property, whether real or personal,
    belonging to such person, except that such lien may not be in an
    amount in excess of 30 percent of the collective net worth of all
    persons described in section 1362(a) of this title" for "to the
    extent such amount does not exceed 30 percent of the collective net
    worth of all persons described in section 1362(a) of this title
    upon all property and rights to property, whether real or personal,
    belonging to such person."
      Pub. L. 101-239, Sec. 7881(f)(3)(B), struck out at end "The
    preceding provisions of this subsection shall be applied in a
    manner consistent with the provisions of section 1364(d) of this
    title relating to treatment of multiple controlled groups."
      Subsec. (c). Pub. L. 101-239, Sec. 7891(a)(1), in pars. (1), (3),
    and (4), substituted "Internal Revenue Code of 1986" for "Internal
    Revenue Code of 1954", which for purposes of codification was
    translated as "title 26" thus requiring no change in text.
      Subsec. (c)(2). Pub. L. 101-239, Sec. 7894(g)(4)(A), substituted
    "section 3713 of title 31" for "section 3466 of the Revised
    Statutes (31 U.S.C. 191)".
      Subsec. (f). Pub. L. 101-239, Sec. 7881(f)(10)(C), added subsec.
    (f).
      1987 - Subsec. (a). Pub. L. 100-203, Sec. 9312(b)(2)(B)(i),
    substituted "to the extent such amount does not exceed 30 percent
    of the collective net worth of all persons described in section
    1362(a) of this title" for "to the extent of an amount equal to the
    unpaid amount described in section 1362(b)(1)(A)(i) of this title"
    in two places.
      Pub. L. 100-203, Sec. 9312(b)(2)(C)(ii), inserted at end "The
    preceding provisions of this subsection shall be applied in a
    manner consistent with the provisions of section 1364(d) of this
    title relating to treatment of multiple controlled groups."
      1986 - Pub. L. 99-272, Sec. 11016(a)(6)(B)(i), struck out "of
    employer" after "liability" in section catchline.
      Subsec. (a). Pub. L. 99-272, Sec. 11016(a)(6)(B)(ii), substituted
    "person liable" for "employer or employers liable", "neglects or
    refuses" for "neglect or refuse", and "such person" for "such
    employer or employers" and inserted "to the extent of an amount
    equal to the unpaid amount described in section 1362(b)(1)(A)(i) of
    this title" in two places.
      Subsec. (c)(1). Pub. L. 99-272, Sec. 11016(a)(6)(B)(vi),
    substituted par. (1) for former par. (1) which read as follows:
    "Except as otherwise provided under this section, the priority of
    the lien imposed under subsection (a) of this section shall be
    determined in the same manner as under section 6323 of title 26.
    Such section 6323 shall be applied by substituting 'lien imposed by
    section 4068 of the Employee Retirement Income Security Act of
    1974' for 'lien imposed by section 6321'; 'corporation' for
    'Secretary or his delegate'; 'employer liability lien' for 'tax
    lien'; 'employer' for 'taxpayer'; 'lien arising under section
    4068(a) of the Employee Retirement Income Security Act of 1974' for
    'assessment of the tax'; and 'payment of the loan value is made to
    the corporation' for 'satisfaction of a levy pursuant to section
    6332(b)'; each place such terms appear."
      Subsec. (d)(1), (2). Pub. L. 99-272, Sec. 11016(a)(6)(B)(iii),
    (iv), substituted "liable person" for "employer" wherever
    appearing.
      Subsec. (e). Pub. L. 99-272, Sec. 11016(a)(6)(B)(v), (c)(14),
    struck out ", with the consent of the board of directors," after
    "corporation determines" and substituted "liable person" for
    "employer or employers".
      1978 - Subsec. (c)(2). Pub. L. 95-598 substituted "a case under
    title 11 or in" and "title 11" for "the case of bankruptcy or" and
    "the Bankruptcy Act".

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by section 7881(f)(3)(B), (10)(C), (12) of Pub. L. 101-
    239 effective, except as otherwise provided, as if included in the
    provision of the Pension Protection Act, Pub. L. 100-203, Secs.
    9302-9346, to which such amendment relates, see section 7882 of
    Pub. L. 101-239, set out as a note under section 401 of Title 26,
    Internal Revenue Code.
      Amendment by section 7891(a)(1) of Pub. L. 101-239 effective,
    except as otherwise provided, as if included in the provision of
    the Tax Reform Act of 1986, Pub. L. 99-514, to which such amendment
    relates, see section 7891(f) of Pub. L. 101-239, set out as a note
    under section 1002 of this title.
      Section 7894(g)(4)(B) of Pub. L. 101-239 provided that: "The
    amendment made by subparagraph (A) [amending this section] shall
    take effect as if originally included in section 3 of Public Law 97-
    258."

                     EFFECTIVE DATE OF 1987 AMENDMENT                 
      Amendment by Pub. L. 100-203 applicable with respect to plan
    terminations under section 1341 of this title with respect to which
    notices of intent to terminate are provided under section
    1341(a)(2) of this title after Dec. 17, 1987, and plan terminations
    with respect to which proceedings are instituted by the Pension
    Benefit Guaranty Corporation under section 1342 of this title after
    that date, see section 9312(d)(1) of Pub. L. 100-203, as amended,
    set out as a note under section 1301 of this title.

                     EFFECTIVE DATE OF 1986 AMENDMENT                 
      Amendment by Pub. L. 99-272 effective Jan. 1, 1986, with certain
    exceptions, see section 11019 of Pub. L. 99-272, set out as a note
    under section 1341 of this title.

                     EFFECTIVE DATE OF 1978 AMENDMENT                 
      Amendment by Pub. L. 95-598 effective Oct. 1, 1979, see section
    402(a) of Pub. L. 95-598, set out as an Effective Date note
    preceding section 101 of Title 11, Bankruptcy.

-FOOTNOTE-               

    (!1) So in original. Probably should be followed by a period.


-End-



-CITE-
    29 USC Sec. 1369                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle D - Liability

-HEAD-
    Sec. 1369. Treatment of transactions to evade liability; effect of
      corporate reorganization

-STATUTE-
    (a) Treatment of transactions to evade liability
      If a principal purpose of any person in entering into any
    transaction is to evade liability to which such person would be
    subject under this subtitle and the transaction becomes effective
    within five years before the termination date of the termination on
    which such liability would be based, then such person and the
    members of such person's controlled group (determined as of the
    termination date) shall be subject to liability under this subtitle
    in connection with such termination as if such person were a
    contributing sponsor of the terminated plan as of the termination
    date. This subsection shall not cause any person to be liable under
    this subtitle in connection with such plan termination for any
    increases or improvements in the benefits provided under the plan
    which are adopted after the date on which the transaction referred
    to in the preceding sentence becomes effective.
    (b) Effect of corporate reorganization
      For purposes of this subtitle, the following rules apply in the
    case of certain corporate reorganizations:
      (1) Change of identity, form, etc.
        If a person ceases to exist by reason of a reorganization which
      involves a mere change in identity, form, or place of
      organization, however effected, a successor corporation resulting
      from such reorganization shall be treated as the person to whom
      this subtitle applies.
      (2) Liquidation into parent corporation
        If a person ceases to exist by reason of liquidation into a
      parent corporation, the parent corporation shall be treated as
      the person to whom this subtitle applies.
      (3) Merger, consolidation, or division
        If a person ceases to exist by reason of a merger,
      consolidation, or division, the successor corporation or
      corporations shall be treated as the person to whom this subtitle
      applies.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4069, as added Pub. L. 99-272,
    title XI, Sec. 11013(a), Apr. 7, 1986, 100 Stat. 260.)


-MISC1-
                              EFFECTIVE DATE                          
      Section 11013(b) of Pub. L. 99-272 provided that: "Section
    4069(a) of the Employee Retirement Income Security Act of 1974 (as
    added by subsection (a)) [subsec. (a) of this section] shall apply
    with respect to transactions becoming effective on or after January
    1, 1986."
      Section effective Jan. 1, 1986, with certain exceptions, see
    section 11019 of Pub. L. 99-272, set out as an Effective Date of
    1986 Amendment note under section 1341 of this title.

-End-



-CITE-
    29 USC Sec. 1370                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle D - Liability

-HEAD-
    Sec. 1370. Enforcement authority relating to terminations of single-
      employer plans

-STATUTE-
    (a) In general
      Any person who is with respect to a single-employer plan a
    fiduciary, contributing sponsor, member of a contributing sponsor's
    controlled group, participant, or beneficiary, and is adversely
    affected by an act or practice of any party (other than the
    corporation) in violation of any provision of section 1341, 1342,
    1362, 1363, 1364, or 1369 of this title, or who is an employee
    organization representing such a participant or beneficiary so
    adversely affected for purposes of collective bargaining with
    respect to such plan, may bring an action - 
        (1) to enjoin such act or practice, or
        (2) to obtain other appropriate equitable relief (A) to redress
      such violation or (B) to enforce such provision.
    (b) Status of plan as party to action and with respect to legal
      process
      A single-employer plan may be sued under this section as an
    entity. Service of summons, subpoena, or other legal process of a
    court upon a trustee or an administrator of a single-employer plan
    in such trustee's or administrator's capacity as such shall
    constitute service upon the plan. If a plan has not designated in
    the summary plan description of the plan an individual as agent for
    the service of legal process, service upon any contributing sponsor
    of the plan shall constitute such service. Any money judgment under
    this section against a single-employer plan shall be enforceable
    only against the plan as an entity and shall not be enforceable
    against any other person unless liability against such person is
    established in such person's individual capacity.
    (c) Jurisdiction and venue
      The district courts of the United States shall have exclusive
    jurisdiction of civil actions under this section. Such actions may
    be brought in the district where the plan is administered, where
    the violation took place, or where a defendant resides or may be
    found, and process may be served in any other district where a
    defendant resides or may be found. The district courts of the
    United States shall have jurisdiction, without regard to the amount
    in controversy or the citizenship of the parties, to grant the
    relief provided for in subsection (a) of this section in any
    action.
    (d) Right of corporation to intervene
      A copy of the complaint or notice of appeal in any action under
    this section shall be served upon the corporation by certified
    mail. The corporation shall have the right in its discretion to
    intervene in any action.
    (e) Awards of costs and expenses
      (1) General rule
        In any action brought under this section, the court in its
      discretion may award all or a portion of the costs and expenses
      incurred in connection with such action, including reasonable
      attorney's fees, to any party who prevails or substantially
      prevails in such action.
      (2) Exemption for plans
        Notwithstanding the preceding provisions of this subsection, no
      plan shall be required in any action to pay any costs and
      expenses (including attorney's fees).
    (f) Limitation on actions
      (1) In general
        Except as provided in paragraph (3), an action under this
      section may not be brought after the later of - 
          (A) 6 years after the date on which the cause of action
        arose, or
          (B) 3 years after the applicable date specified in paragraph
        (2).
      (2) Applicable date
        (A) General rule
          Except as provided in subparagraph (B), the applicable date
        specified in this paragraph is the earliest date on which the
        plaintiff acquired or should have acquired actual knowledge of
        the existence of such cause of action.
        (B) Special rule for plaintiffs who are fiduciaries
          In the case of a plaintiff who is a fiduciary bringing the
        action in the exercise of fiduciary duties, the applicable date
        specified in this paragraph is the date on which the plaintiff
        became a fiduciary with respect to the plan if such date is
        later than the date described in subparagraph (A).
      (3) Cases of fraud or concealment
        In the case of fraud or concealment, the period described in
      paragraph (1)(B) shall be extended to 6 years after the
      applicable date specified in paragraph (2).

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4070, as added Pub. L. 99-272,
    title XI, Sec. 11014(a), Apr. 7, 1986, 100 Stat. 261; amended Pub.
    L. 101-239, title VII, Sec. 7881(f)(8), Dec. 19, 1989, 103 Stat.
    2440.)


-MISC1-
                                AMENDMENTS                            
      1989 - Subsec. (a). Pub. L. 101-239 struck out "1349," after
    "section 1341, 1342,".

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by Pub. L. 101-239 effective, except as otherwise
    provided, as if included in the provision of the Pension Protection
    Act, Pub. L. 100-203, Secs. 9302-9346, to which such amendment
    relates, see section 7882 of Pub. L. 101-239, set out as a note
    under section 401 of Title 26, Internal Revenue Code.

                              EFFECTIVE DATE                          
      Section effective Jan. 1, 1986, with certain exceptions, see
    section 11019 of Pub. L. 99-272, set out as an Effective Date of
    1986 Amendment note under section 1341 of this title.

-End-



-CITE-
    29 USC Sec. 1371                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle D - Liability

-HEAD-
    Sec. 1371. Penalty for failure to timely provide required
      information

-STATUTE-
      The corporation may assess a penalty, payable to the corporation,
    against any person who fails to provide any notice or other
    material information required under this subtitle, subtitle A, B,
    or C of this subchapter, as (!1) section 1082(f)(4) or 1085b(e) of
    this title, or any regulations prescribed under any such subtitle
    or such section, within the applicable time limit specified
    therein. Such penalty shall not exceed $1,000 for each day for
    which such failure continues.


-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4071, as added Pub. L. 100-203,
    title IX, Sec. 9314(c)(1), Dec. 22, 1987, 101 Stat. 1330-367;
    amended Pub. L. 101-239, title VII, Sec. 7881(g)(8), (i)(3)(B),
    Dec. 19, 1989, 103 Stat. 2442; Pub. L. 109-280, title I, Sec.
    107(b)(5), Aug. 17, 2006, 120 Stat. 820.)


-STATAMEND-
                           AMENDMENT OF SECTION                       
      Pub. L. 109-280, title I, Sec. 107(b)(5), (e), Aug. 17, 2006, 120
    Stat. 820, provided that, applicable to plan years beginning after
    2007, this section is amended by substituting "1083(k)(4)" for
    "1082(f)(4)".


-MISC1-
                                AMENDMENTS                            
      1989 - Pub. L. 101-239, Sec. 7881(i)(3)(B), substituted ",
    subtitle A, B, or C of this subchapter, as section 1082(f)(4) or
    1085b(e) of this title" for "or subtitle A, B, or C" and inserted
    "or such section" after "such subtitle".
      Pub. L. 101-239, Sec. 7881(g)(8), made clarifying amendment to
    directory language of Pub. L. 100-203, Sec. 9314(c)(1), resulting
    in no change in text.

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Amendment by Pub. L. 109-280 applicable to plan years beginning
    after 2007, see section 107(e) of Pub. L. 109-280, set out as a
    note under section 1021 of this title.

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by Pub. L. 101-239 effective, except as otherwise
    provided, as if included in the provision of the Pension Protection
    Act, Pub. L. 100-203, Secs. 9302-9346, to which such amendment
    relates, see section 7882 of Pub. L. 101-239, set out as a note
    under section 401 of Title 26, Internal Revenue Code.

    APPLICABILITY OF AMENDMENTS BY SUBTITLES A AND B OF TITLE I OF PUB.
                                L. 109-280
      For special rules on applicability of amendments by subtitles A
    (Secs. 101-107) and B (Secs. 111-116) of title I of Pub. L. 109-280
    to certain eligible cooperative plans, PBGC settlement plans, and
    eligible government contractor plans, see sections 104, 105, and
    106 of Pub. L. 109-280, set out as notes under section 401 of Title
    26, Internal Revenue Code.

-FOOTNOTE-
    (!1) So in original. Probably should be "or".


-End-


-CITE-
    29 USC Subtitle E - Special Provisions for Multiemployer
           Plans                                           01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle E - Special Provisions for Multiemployer Plans

-HEAD-
          SUBTITLE E - SPECIAL PROVISIONS FOR MULTIEMPLOYER PLANS      


-MISC1-
                                AMENDMENTS                            
      1980 - Pub. L. 96-364, title I, Sec. 104, Sept. 26, 1980, 94
    Stat. 1217, added subtitle heading. Former subtitle E heading
    "Effective Date; Special Rules" was struck out. See subtitle F of
    this subchapter.

-End-


-CITE-
    29 USC part 1 - employer withdrawals                        01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle E - Special Provisions for Multiemployer Plans
    part 1 - employer withdrawals

-HEAD-
                       PART 1 - EMPLOYER WITHDRAWALS                   

-End-



-CITE-
    29 USC Sec. 1381                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle E - Special Provisions for Multiemployer Plans
    part 1 - employer withdrawals

-HEAD-
    Sec. 1381. Withdrawal liability established; criteria and
      definitions

-STATUTE-
      (a) If an employer withdraws from a multiemployer plan in a
    complete withdrawal or a partial withdrawal, then the employer is
    liable to the plan in the amount determined under this part to be
    the withdrawal liability.
      (b) For purposes of subsection (a) of this section - 
        (1) The withdrawal liability of an employer to a plan is the
      amount determined under section 1391 of this title to be the
      allocable amount of unfunded vested benefits, adjusted - 
          (A) first, by any de minimis reduction applicable under
        section 1389 of this title,
          (B) next, in the case of a partial withdrawal, in accordance
        with section 1386 of this title,
          (C) then, to the extent necessary to reflect the limitation
        on annual payments under section 1399(c)(1)(B) of this title,
        and
          (D) finally, in accordance with section 1405 of this title.

        (2) The term "complete withdrawal" means a complete withdrawal
      described in section 1383 of this title.
        (3) The term "partial withdrawal" means a partial withdrawal
      described in section 1385 of this title.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4201, as added Pub. L. 96-364,
    title I, Sec. 104(2), Sept. 26, 1980, 94 Stat. 1217.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1381, Pub. L. 93-406, title IV, Sec. 4402,
    formerly Sec. 4082, Sept. 2, 1974, 88 Stat. 1034; S.Res. 4, Feb. 4,
    1977; Pub. L. 95-214, Sec. 1, Dec. 19, 1977, 91 Stat. 1501; S.Res.
    30, Mar. 7, 1979; Pub. L. 96-24, June 19, 1979, 93 Stat. 70; Pub.
    L. 96-239, Sec. 1, Apr. 30, 1980, 94 Stat. 341; Pub. L. 96-293,
    Sec. 1, June 30, 1980, 94 Stat. 610, renumbered Sec. 4402 and
    amended Pub. L. 96-364, title I, Sec. 108(a)-(c)(1), Sept. 26,
    1980, 94 Stat. 1267, relating to the effective dates and special
    rules for this subchapter, was transferred to section 1461 of this
    title.

                              EFFECTIVE DATE                          
      Part effective Sept. 26, 1980, see section 1461(e)(2) of this
    title.

       ELIMINATION OF RETROACTIVE APPLICATION OF AMENDMENTS MADE BY
     MULTIEMPLOYER PENSION PLAN AMENDMENTS ACT OF 1980, PUB. L. 96-364
      Pub. L. 98-369, div. A, title V, Sec. 558(a), (c), (d), July 18,
    1984, 98 Stat. 899, provided that:
      "(a) In General. - 
        "(1) Liability. - Any withdrawal liability incurred by an
      employer pursuant to part 1 of subtitle E of title IV of the
      Employee Retirement Income Security Act of 1974 (29 U.S.C. 1381
      et seq.) as a result of the complete or partial withdrawal of
      such employer from a multiemployer plan before September 26,
      1980, shall be void.
        "(2) Refunds. - Any amounts paid by an employer to a plan
      sponsor as a result of such withdrawal liability shall be
      refunded by the plan sponsor to the employer with interest (in
      accordance with section 401(a)(2) [26 U.S.C. 401(a)(2)]), less a
      reasonable amount for administrative expenses incurred by the
      plan sponsor (other than legal expenses incurred with respect to
      the plan) in calculating, assessing, and refunding such amounts.
      "(c) No Increase in Liability. - The amendments made by this
    section [amending sections 1391, 1397, 1399, 1415 and 1461 of this
    title and provisions set out as a note under section 1385 of this
    title] shall not be construed to increase the liability incurred by
    any employer pursuant to part 1 of subtitle E of title IV of the
    Employee Retirement Income Security Act of 1974 (29 U.S.C. 1381 et
    seq.), as in effect immediately before the amendments made by
    subsection (b) [amending sections 1391, 1397, 1399, 1415, and 1461
    of this title and provisions set out as a note under section 1385
    of this title], as a result of the complete or partial withdrawal
    of such employer from a multiemployer plan prior to September 26,
    1980.
      "(d) Special Rule for Certain Binding Agreements. - In the case
    of an employer who, on September 26, 1980, has a binding agreement
    to withdraw from a multiemployer plan, subsection (a)(1) shall be
    applied by substituting 'December 31, 1980' for 'September 26,
    1980'."

    APPLICABILITY TO CERTAIN EMPLOYERS WITHDRAWN BEFORE SEPT. 26, 1980,
     FROM MULTIEMPLOYER PLAN COVERING EMPLOYEES IN SEAGOING INDUSTRY;
                      EFFECTIVE DATE, COVERAGE, ETC.
      Section 108(c)(4) of Pub. L. 96-364 provided that: "In the case
    of an employer who withdrew before the date of enactment of this
    Act [Sept. 26, 1980] from a multiemployer plan covering employees
    in the seagoing industry (as determined by the corporation),
    sections 4201 through 4219 of the Employee Retirement Income
    Security Act of 1974, as added by this Act, [section 1381 through
    1399 of this title], are effective as of May 3, 1979. For the
    purpose of applying section 4217 [section 1397 of this title] for
    purposes of the preceding sentence, the date 'May 2, 1979,' shall
    be substituted for 'April 28, 1980,' and the date 'May 3, 1979'
    shall be substituted for 'April 29, 1980'. For purposes of this
    paragraph, terms which are used in title IV of the Employee
    Retirement Income Security Act of 1974 [this subchapter], or in
    regulations prescribed under that title, and which are used in the
    preceding sentence have the same meaning as when used in that Act
    [see Short Title note set out under sections 1001 of this title] or
    those regulations. For purposes of this paragraph, the term
    'employer' includes only a substantial employer covering employees
    in the seagoing industry (as so determined) in connection with
    ports on the West Coast of the United States, but does not include
    an employer who withdrew from a plan because of a change in the
    collective bargaining representative."

-End-



-CITE-
    29 USC Sec. 1382                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle E - Special Provisions for Multiemployer Plans
    part 1 - employer withdrawals

-HEAD-
    Sec. 1382. Determination and collection of liability; notification
      of employer

-STATUTE-
      When an employer withdraws from a multiemployer plan, the plan
    sponsor, in accordance with this part, shall - 
        (1) determine the amount of the employer's withdrawal
      liability,
        (2) notify the employer of the amount of the withdrawal
      liability, and
        (3) collect the amount of the withdrawal liability from the
      employer.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4202, as added Pub. L. 96-364,
    title I, Sec. 104(2), Sept. 26, 1980, 94 Stat. 1218.)

-End-



-CITE-
    29 USC Sec. 1383                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle E - Special Provisions for Multiemployer Plans
    part 1 - employer withdrawals

-HEAD-
    Sec. 1383. Complete withdrawal

-STATUTE-
    (a) Determinative factors
      For purposes of this part, a complete withdrawal from a
    multiemployer plan occurs when an employer - 
        (1) permanently ceases to have an obligation to contribute
      under the plan, or
        (2) permanently ceases all covered operations under the plan.
    (b) Building and construction industry
      (1) Notwithstanding subsection (a) of this section, in the case
    of an employer that has an obligation to contribute under a plan
    for work performed in the building and construction industry, a
    complete withdrawal occurs only as described in paragraph (2), if -
    
        (A) substantially all the employees with respect to whom the
      employer has an obligation to contribute under the plan perform
      work in the building and construction industry, and
        (B) the plan - 
          (i) primarily covers employees in the building and
        construction industry, or
          (ii) is amended to provide that this subsection applies to
        employers described in this paragraph.

      (2) A withdrawal occurs under this paragraph if - 
        (A) an employer ceases to have an obligation to contribute
      under the plan, and
        (B) the employer - 
          (i) continues to perform work in the jurisdiction of the
        collective bargaining agreement of the type for which
        contributions were previously required, or
          (ii) resumes such work within 5 years after the date on which
        the obligation to contribute under the plan ceases, and does
        not renew the obligation at the time of the resumption.

      (3) In the case of a plan terminated by mass withdrawal (within
    the meaning of section 1341a(a)(2) of this title), paragraph (2)
    shall be applied by substituting "3 years" for "5 years" in
    subparagraph (B)(ii).
    (c) Entertainment industry
      (1) Notwithstanding subsection (a) of this section, in the case
    of an employer that has an obligation to contribute under a plan
    for work performed in the entertainment industry, primarily on a
    temporary or project-by-project basis, if the plan primarily covers
    employees in the entertainment industry, a complete withdrawal
    occurs only as described in subsection (b)(2) of this section
    applied by substituting "plan" for "collective bargaining
    agreement" in subparagraph (B)(i) thereof.
      (2) For purposes of this subsection, the term "entertainment
    industry" means - 
        (A) theater, motion picture (except to the extent provided in
      regulations prescribed by the corporation), radio, television,
      sound or visual recording, music, and dance, and
        (B) such other entertainment activities as the corporation may
      determine to be appropriate.

      (3) The corporation may by regulation exclude a group or class of
    employers described in the preceding sentence from the application
    of this subsection if the corporation determines that such
    exclusion is necessary - 
        (A) to protect the interest of the plan's participants and
      beneficiaries, or
        (B) to prevent a significant risk of loss to the corporation
      with respect to the plan.

      (4) A plan may be amended to provide that this subsection shall
    not apply to a group or class of employers under the plan.
    (d) Other determinative factors
      (1) Notwithstanding subsection (a) of this section, in the case
    of an employer who - 
        (A) has an obligation to contribute under a plan described in
      paragraph (2) primarily for work described in such paragraph, and
        (B) does not continue to perform work within the jurisdiction
      of the plan,

    a complete withdrawal occurs only as described in paragraph (3).
      (2) A plan is described in this paragraph if substantially all of
    the contributions required under the plan are made by employers
    primarily engaged in the long and short haul trucking industry, the
    household goods moving industry, or the public warehousing
    industry.
      (3) A withdrawal occurs under this paragraph if - 
        (A) an employer permanently ceases to have an obligation to
      contribute under the plan or permanently ceases all covered
      operations under the plan, and
        (B) either - 
          (i) the corporation determines that the plan has suffered
        substantial damage to its contribution base as a result of such
        cessation, or
          (ii) the employer fails to furnish a bond issued by a
        corporate surety company that is an acceptable surety for
        purposes of section 1112 of this title, or an amount held in
        escrow by a bank or similar financial institution satisfactory
        to the plan, in an amount equal to 50 percent of the withdrawal
        liability of the employer.

      (4) If, after an employer furnishes a bond or escrow to a plan
    under paragraph (3)(B)(ii), the corporation determines that the
    cessation of the employer's obligation to contribute under the plan
    (considered together with any cessations by other employers), or
    cessation of covered operations under the plan, has resulted in
    substantial damage to the contribution base of the plan, the
    employer shall be treated as having withdrawn from the plan on the
    date on which the obligation to contribute or covered operations
    ceased, and such bond or escrow shall be paid to the plan. The
    corporation shall not make a determination under this paragraph
    more than 60 months after the date on which such obligation to
    contribute or covered operations ceased.
      (5) If the corporation determines that the employer has no
    further liability under the plan either - 
        (A) because it determines that the contribution base of the
      plan has not suffered substantial damage as a result of the
      cessation of the employer's obligation to contribute or cessation
      of covered operations (considered together with any cessation of
      contribution obligation, or of covered operations, with respect
      to other employers), or
        (B) because it may not make a determination under paragraph (4)
      because of the last sentence thereof,

    then the bond shall be cancelled or the escrow refunded.
      (6) Nothing in this subsection shall be construed as a limitation
    on the amount of the withdrawal liability of any employer.
    (e) Date of complete withdrawal
      For purposes of this part, the date of a complete withdrawal is
    the date of the cessation of the obligation to contribute or the
    cessation of covered operations.
    (f) Special liability withdrawal rules for industries other than
      construction and entertainment industries; procedures applicable
      to amend plans
      (1) The corporation may prescribe regulations under which plans
    in industries other than the construction or entertainment
    industries may be amended to provide for special withdrawal
    liability rules similar to the rules described in subsections (b)
    and (c) of this section.
      (2) Regulations under paragraph (1) shall permit use of special
    withdrawal liability rules - 
        (A) only in industries (or portions thereof) in which, as
      determined by the corporation, the characteristics that would
      make use of such rules appropriate are clearly shown, and
        (B) only if the corporation determines, in each instance in
      which special withdrawal liability rules are permitted, that use
      of such rules will not pose a significant risk to the corporation
      under this subchapter.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4203, as added Pub. L. 96-364,
    title I, Sec. 104(2), Sept. 26, 1980, 94 Stat. 1218.)

-End-



-CITE-
    29 USC Sec. 1384                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle E - Special Provisions for Multiemployer Plans
    part 1 - employer withdrawals

-HEAD-
    Sec. 1384. Sale of assets

-STATUTE-
    (a) Complete or partial withdrawal not occurring as a result of
      sale and subsequent cessation of covered operations or cessation
      of obligation to contribute to covered operations; continuation
      of liability of seller
      (1) A complete or partial withdrawal of an employer (hereinafter
    in this section referred to as the "seller") under this section
    does not occur solely because, as a result of a bona fide, arm's-
    length sale of assets to an unrelated party (hereinafter in this
    section referred to as the "purchaser"), the seller ceases covered
    operations or ceases to have an obligation to contribute for such
    operations, if - 
        (A) the purchaser has an obligation to contribute to the plan
      with respect to the operations for substantially the same number
      of contribution base units for which the seller had an obligation
      to contribute to the plan;
        (B) the purchaser provides to the plan for a period of 5 plan
      years commencing with the first plan year beginning after the
      sale of assets, a bond issued by a corporate surety company that
      is an acceptable surety for purposes of section 1112 of this
      title, or an amount held in escrow by a bank or similar financial
      institution satisfactory to the plan, in an amount equal to the
      greater of - 
          (i) the average annual contribution required to be made by
        the seller with respect to the operations under the plan for
        the 3 plan years preceding the plan year in which the sale of
        the employer's assets occurs, or
          (ii) the annual contribution that the seller was required to
        make with respect to the operations under the plan for the last
        plan year before the plan year in which the sale of the assets
        occurs,

      which bond or escrow shall be paid to the plan if the purchaser
      withdraws from the plan, or fails to make a contribution to the
      plan when due, at any time during the first 5 plan years
      beginning after the sale; and
        (C) the contract for sale provides that, if the purchaser
      withdraws in a complete withdrawal, or a partial withdrawal with
      respect to operations, during such first 5 plan years, the seller
      is secondarily liable for any withdrawal liability it would have
      had to the plan with respect to the operations (but for this
      section) if the liability of the purchaser with respect to the
      plan is not paid.

      (2) If the purchaser - 
        (A) withdraws before the last day of the fifth plan year
      beginning after the sale, and
        (B) fails to make any withdrawal liability payment when due,

    then the seller shall pay to the plan an amount equal to the
    payment that would have been due from the seller but for this
    section.
      (3)(A) If all, or substantially all, of the seller's assets are
    distributed, or if the seller is liquidated before the end of the 5
    plan year period described in paragraph (1)(C), then the seller
    shall provide a bond or amount in escrow equal to the present value
    of the withdrawal liability the seller would have had but for this
    subsection.
      (B) If only a portion of the seller's assets are distributed
    during such period, then a bond or escrow shall be required, in
    accordance with regulations prescribed by the corporation, in a
    manner consistent with subparagraph (A).
      (4) The liability of the party furnishing a bond or escrow under
    this subsection shall be reduced, upon payment of the bond or
    escrow to the plan, by the amount thereof.
    (b) Liability of purchaser
      (1) For the purposes of this part, the liability of the purchaser
    shall be determined as if the purchaser had been required to
    contribute to the plan in the year of the sale and the 4 plan years
    preceding the sale the amount the seller was required to contribute
    for such operations for such 5 plan years.
      (2) If the plan is in reorganization in the plan year in which
    the sale of assets occurs, the purchaser shall furnish a bond or
    escrow in an amount equal to 200 percent of the amount described in
    subsection (a)(1)(B) of this section.
    (c) Variances or exemptions from continuation of liability of
      seller; procedures applicable
      The corporation may by regulation vary the standards in
    subparagraphs (B) and (C) of subsection (a)(1) of this section if
    the variance would more effectively or equitably carry out the
    purposes of this subchapter. Before it promulgates such
    regulations, the corporation may grant individual or class
    variances or exemptions from the requirements of such subparagraphs
    if the particular case warrants it. Before granting such an
    individual or class variance or exemption, the corporation - 
        (1) shall publish notice in the Federal Register of the
      pendency of the variance or exemption,
        (2) shall require that adequate notice be given to interested
      persons, and
        (3) shall afford interested persons an opportunity to present
      their views.
    (d) "Unrelated party" defined
      For purposes of this section, the term "unrelated party" means a
    purchaser or seller who does not bear a relationship to the seller
    or purchaser, as the case may be, that is described in section
    267(b) of title 26, or that is described in regulations prescribed
    by the corporation applying principles similar to the principles of
    such section.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4204, as added Pub. L. 96-364,
    title I, Sec. 104(2), Sept. 26, 1980, 94 Stat. 1220; amended Pub.
    L. 101-239, title VII, Sec. 7891(a)(1), Dec. 19, 1989, 103 Stat.
    2445.)


-MISC1-
                                AMENDMENTS                            
      1989 - Subsec. (d). Pub. L. 101-239 substituted "Internal Revenue
    Code of 1986" for "Internal Revenue Code of 1954", which for
    purposes of codification was translated as "title 26" thus
    requiring no change in text.

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by Pub. L. 101-239 effective, except as otherwise
    provided, as if included in the provision of the Tax Reform Act of
    1986, Pub. L. 99-514, to which such amendment relates, see section
    7891(f) of Pub. L. 101-239, set out as a note under section 1002 of
    this title.

-End-



-CITE-
    29 USC Sec. 1385                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle E - Special Provisions for Multiemployer Plans
    part 1 - employer withdrawals

-HEAD-
    Sec. 1385. Partial withdrawals

-STATUTE-
    (a) Determinative factors
      Except as otherwise provided in this section, there is a partial
    withdrawal by an employer from a plan on the last day of a plan
    year if for such plan year - 
        (1) there is a 70-percent contribution decline, or
        (2) there is a partial cessation of the employer's contribution
      obligation.
    (b) Criteria applicable
      For purposes of subsection (a) of this section - 
        (1)(A) There is a 70-percent contribution decline for any plan
      year if during each plan year in the 3-year testing period the
      employer's contribution base units do not exceed 30 percent of
      the employer's contribution base units for the high base year.
        (B) For purposes of subparagraph (A) - 
          (i) The term "3-year testing period" means the period
        consisting of the plan year and the immediately preceding 2
        plan years.
          (ii) The number of contribution base units for the high base
        year is the average number of such units for the 2 plan years
        for which the employer's contribution base units were the
        highest within the 5 plan years immediately preceding the
        beginning of the 3-year testing period.

        (2)(A) There is a partial cessation of the employer's
      contribution obligation for the plan year if, during such year - 
          (i) the employer permanently ceases to have an obligation to
        contribute under one or more but fewer than all collective
        bargaining agreements under which the employer has been
        obligated to contribute under the plan but continues to perform
        work in the jurisdiction of the collective bargaining agreement
        of the type for which contributions were previously required or
        transfers such work to another location or to an entity or
        entities owned or controlled by the employer, or
          (ii) an employer permanently ceases to have an obligation to
        contribute under the plan with respect to work performed at one
        or more but fewer than all of its facilities, but continues to
        perform work at the facility of the type for which the
        obligation to contribute ceased.

        (B) For purposes of subparagraph (A), a cessation of
      obligations under a collective bargaining agreement shall not be
      considered to have occurred solely because, with respect to the
      same plan, one agreement that requires contributions to the plan
      has been substituted for another agreement.
    (c) Retail food industry
      (1) In the case of a plan in which a majority of the covered
    employees are employed in the retail food industry, the plan may be
    amended to provide that this section shall be applied with respect
    to such plan - 
        (A) by substituting "35 percent" for "70 percent" in
      subsections (a) and (b) of this section, and
        (B) by substituting "65 percent" for "30 percent" in subsection
      (b) of this section.

      (2) Any amendment adopted under paragraph (1) shall provide rules
    for the equitable reduction of withdrawal liability in any case in
    which the number of the plan's contribution base units, in the 2
    plan years following the plan year of withdrawal of the employer,
    is higher than such number immediately after the withdrawal.
      (3) Section 1388 of this title shall not apply to a plan which
    has been amended under paragraph (1).
    (d) Continuation of liability of employer for partial withdrawal
      under amended plan
      In the case of a plan described in section 404(c) of title 26, or
    a continuation thereof, the plan may be amended to provide rules
    setting forth other conditions consistent with the purposes of this
    chapter under which an employer has liability for partial
    withdrawal.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4205, as added Pub. L. 96-364,
    title I, Sec. 104(2), Sept. 26, 1980, 94 Stat. 1221; amended Pub.
    L. 101-239, title VII, Sec. 7891(a)(1), Dec. 19, 1989, 103 Stat.
    2445; Pub. L. 109-280, title II, Sec. 204(b)(1), Aug. 17, 2006, 120
    Stat. 887.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This chapter, referred to in subsec. (d), was in the original
    "this Act", meaning Pub. L. 93-406, known as the Employee
    Retirement Income Security Act of 1974. Titles I, III, and IV of
    such Act are classified principally to this chapter. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 1001 of this title and Tables.


-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (b)(2)(A)(i). Pub. L. 109-280 inserted "or to an
    entity or entities owned or controlled by the employer" after "to
    another location".
      1989 - Subsec. (d). Pub. L. 101-239 substituted "Internal Revenue
    Code of 1986" for "Internal Revenue Code of 1954", which for
    purposes of codification was translated as "title 26" thus
    requiring no change in text.

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Pub. L. 109-280, title II, Sec. 204(b)(2), Aug. 17, 2006, 120
    Stat. 887, provided that: "The amendment made by this subsection
    [amending this section] shall apply with respect to work
    transferred on or after the date of the enactment of this Act [Aug.
    17, 2006]."

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by Pub. L. 101-239 effective, except as otherwise
    provided, as if included in the provision of the Tax Reform Act of
    1986, Pub. L. 99-514, to which such amendment relates, see section
    7891(f) of Pub. L. 101-239, set out as a note under section 1002 of
    this title.

    APPLICABILITY TO CERTAIN EMPLOYERS ENGAGED IN TRADE OR BUSINESS OF
          SHIPPING BULK CARGOES IN GREAT LAKES MARITIME INDUSTRY
      Section 108(c)(2) of Pub. L. 96-364 provided that:
      "(A) For the purpose of applying section 4205 of the Employee
    Retirement Income Security Act of 1974 [this section] in the case
    of an employer described in subparagraph (B) - 
        "(i) 'more than 75 percent' shall be substituted for '70
      percent' in subsections (a) and (b) of such section.
        "(ii) '25 percent or less' shall be substituted for '30
      percent' in subsection (b) of such section, and
        "(iii) the number of contribution units for the high base year
      shall be the average annual number of such units for calendar
      years 1970 and 1971.
      "(B) An employer is described in this subparagraph if - 
        "(i) the employer is engaged in the trade or business of
      shipping bulk cargoes in the Great Lakes Maritime Industry, and
      whose fleet consists of vessels the gross registered tonnage of
      which was at least 7,800, as stated in the American Bureau of
      Shipping Record, and
        "(ii) whose fleet during any 5 years from the period 1970
      through and including 1979 has experienced a 33 percent or more
      increase in the contribution units as measured from the average
      annual contribution units for the calendar years 1970 and 1971."

      APPLICABILITY TO SPECIFIED PLAN YEAR, CESSATION OF CONTRIBUTION
           OBLIGATIONS, AND CONTRIBUTION BASE UNITS OF EMPLOYER
      Section 108(d) of Pub. L. 96-364, as amended by Pub. L. 98-369,
    div. A, title V, Sec. 558(b)(2), July 18, 1984, 98 Stat. 899,
    provided that: "For purposes of section 4205 of the Employee
    Retirement Income Security Act of 1974 [this section] - 
        "(1) subsection (a)(1) of such section shall not apply to any
      plan year beginning before September 26, 1982,
        "(2) subsection (a)(2) of such section shall not apply with
      respect to any cessation of contribution obligations occurring
      before September 26, 1980, and
        "(3) in applying subsection (b) of such section, the employer's
      contribution base units for any plan year ending before September
      26, 1980, shall be deemed to be equal to the employer's
      contribution base units for the last plan year ending before such
      date."

    LIABILITY OF CERTAIN EMPLOYERS ANNOUNCING PUBLICLY BEFORE DECEMBER
    13, 1979, TOTAL CESSATION OF COVERED OPERATIONS AT A FACILITY IN A
           STATE; AMOUNT, COVERAGE, DETERMINATIVE FACTORS, ETC.
      Section 108(e) of Pub. L. 96-364 provided that:
      "(1) In the case of a partial withdrawal under section 4205 of
    the Employee Retirement Income Security Act of 1974 [this section],
    an employer who - 
        "(A) before December 13, 1979, had publicly announced the total
      cessation of covered operations at a facility in a State (and
      such cessation occurred within 12 months after the announcement),
        "(B) had not been obligated to make contributions to the plan
      on behalf of the employees at such facility for more than 8 years
      before the discontinuance of contributions, and
        "(C) after the discontinuance of contributions does not within
      1 year after the date of the partial withdrawal perform work in
      the same State of the type for which contributions were
      previously required,
    shall be liable under such section with respect to such partial
    withdrawal in an amount not greater than the amount determined
    under paragraph (2).
      "(2) The amount determined under this paragraph is the excess (if
    any) of - 
        "(A) the present value (on the withdrawal date) of the benefits
      under the plan which - 
          "(i) were vested on the withdrawal date (or, if earlier, at
        the time of separation from service with the employer at the
        facility),
          "(ii) were accrued by employees who on December 13, 1979 (or,
        if earlier, at the time of separation from service with the
        employer at the facility), were employed at the facility, and
          "(iii) are attributable to service with the withdrawing
        employer, over
        "(B)(i) the sum of - 
          "(I) all employer contributions to the plan on behalf of
        employees at the facility before the withdrawal date,
          "(II) interest (to the withdrawal date) on amounts described
        in subclause (I), and
          "(III) $100,000, reduced by
        "(ii) the sum of - 
          "(I) the benefits paid under the plan on or before the
        withdrawal date with respect to former employees who separated
        from employment at the facility, and
          "(II) interest (to the withdrawal date) on amounts described
        in subclause (I).
      "(3) For purposes of paragraph (2) - 
        "(A) actuarial assumptions shall be those used in the last
      actuarial report completed before December 13, 1979,
        "(B) the term 'withdrawal date' means the date on which the
      employer ceased work at the facility of the type for which
      contributions were previously required, and
        "(C) the term 'facility' means the facility referred to in
      paragraph (1)."

-End-



-CITE-
    29 USC Sec. 1386                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle E - Special Provisions for Multiemployer Plans
    part 1 - employer withdrawals

-HEAD-
    Sec. 1386. Adjustment for partial withdrawal; determination of
      amount; reduction for partial withdrawal liability; procedures
      applicable

-STATUTE-
      (a) The amount of an employer's liability for a partial
    withdrawal, before the application of sections 1399(c)(1) and 1405
    of this title, is equal to the product of - 
        (1) the amount determined under section 1391 of this title, and
      adjusted under section 1389 of this title if appropriate,
      determined as if the employer had withdrawn from the plan in a
      complete withdrawal - 
          (A) on the date of the partial withdrawal, or
          (B) in the case of a partial withdrawal described in section
        1385(a)(1) of this title (relating to 70-percent contribution
        decline), on the last day of the first plan year in the 3-year
        testing period,

      multiplied by
        (2) a fraction which is 1 minus a fraction - 
          (A) the numerator of which is the employer's contribution
        base units for the plan year following the plan year in which
        the partial withdrawal occurs, and
          (B) the denominator of which is the average of the employer's
        contribution base units for - 
            (i) except as provided in clause (ii), the 5 plan years
          immediately preceding the plan year in which the partial
          withdrawal occurs, or
            (ii) in the case of a partial withdrawal described in
          section 1385(a)(1) of this title (relating to 70-percent
          contribution decline), the 5 plan years immediately preceding
          the beginning of the 3-year testing period.

      (b)(1) In the case of an employer that has withdrawal liability
    for a partial withdrawal from a plan, any withdrawal liability of
    that employer for a partial or complete withdrawal from that plan
    in a subsequent plan year shall be reduced by the amount of any
    partial withdrawal liability (reduced by any abatement or reduction
    of such liability) of the employer with respect to the plan for a
    previous plan year.
      (2) The corporation shall prescribe such regulations as may be
    necessary to provide for proper adjustments in the reduction
    provided by paragraph (1) for - 
        (A) changes in unfunded vested benefits arising after the close
      of the prior year for which partial withdrawal liability was
      determined,
        (B) changes in contribution base units occurring after the
      close of the prior year for which partial withdrawal liability
      was determined, and
        (C) any other factors for which it determines adjustment to be
      appropriate,

    so that the liability for any complete or partial withdrawal in any
    subsequent year (after the application of the reduction) properly
    reflects the employer's share of liability with respect to the
    plan.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4206, as added Pub. L. 96-364,
    title I, Sec. 104(2), Sept. 26, 1980, 94 Stat. 1222.)

-End-



-CITE-
    29 USC Sec. 1387                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle E - Special Provisions for Multiemployer Plans
    part 1 - employer withdrawals

-HEAD-
    Sec. 1387. Reduction or waiver of complete withdrawal liability;
      procedures and standards applicable

-STATUTE-
      (a) The corporation shall provide by regulation for the reduction
    or waiver of liability for a complete withdrawal in the event that
    an employer who has withdrawn from a plan subsequently resumes
    covered operations under the plan or renews an obligation to
    contribute under the plan, to the extent that the corporation
    determines that reduction or waiver of withdrawal liability is
    consistent with the purposes of this chapter.
      (b) The corporation shall prescribe by regulation a procedure and
    standards for the amendment of plans to provide alternative rules
    for the reduction or waiver of liability for a complete withdrawal
    in the event that an employer who has withdrawn from the plan
    subsequently resumes covered operations or renews an obligation to
    contribute under the plan. The rules may apply only to the extent
    that the rules are consistent with the purposes of this chapter.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4207, as added Pub. L. 96-364,
    title I, Sec. 104(2), Sept. 26, 1980, 94 Stat. 1223.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This chapter, referred to in text, was in the original "this
    Act", meaning Pub. L. 93-406, known as the Employee Retirement
    Income Security Act of 1974. Titles I, III, and IV of such Act are
    classified principally to this chapter. For complete classification
    of this Act to the Code see Short Title note set out under section
    1001 of this title and Tables.

-End-



-CITE-
    29 USC Sec. 1388                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle E - Special Provisions for Multiemployer Plans
    part 1 - employer withdrawals

-HEAD-
    Sec. 1388. Reduction of partial withdrawal liability

-STATUTE-
    (a) Obligation of employer for payments for partial withdrawal for
      plan years beginning after the second consecutive plan year
      following the partial withdrawal year; criteria applicable;
      furnishing of bond in lieu of payment of partial withdrawal
      liability
      (1) If, for any 2 consecutive plan years following the plan year
    in which an employer has partially withdrawn from a plan under
    section 1385(a)(1) of this title (referred to elsewhere in this
    section as the "partial withdrawal year"), the number of
    contribution base units with respect to which the employer has an
    obligation to contribute under the plan for each such year is not
    less than 90 percent of the total number of contribution base units
    with respect to which the employer had an obligation to contribute
    under the plan for the high base year (within the meaning of
    section 1385(b)(1)(B)(ii) of this title), then the employer shall
    have no obligation to make payments with respect to such partial
    withdrawal (other than delinquent payments) for plan years
    beginning after the second consecutive plan year following the
    partial withdrawal year.
      (2)(A) For any plan year for which the number of contribution
    base units with respect to which an employer who has partially
    withdrawn under section 1385(a)(1) of this title has an obligation
    to contribute under the plan equals or exceeds the number of units
    for the highest year determined under paragraph (1) without regard
    to "90 percent of", the employer may furnish (in lieu of payment of
    the partial withdrawal liability determined under section 1386 of
    this title) a bond to the plan in the amount determined by the plan
    sponsor (not exceeding 50 percent of the annual payment otherwise
    required).
      (B) If the plan sponsor determines under paragraph (1) that the
    employer has no further liability to the plan for the partial
    withdrawal, then the bond shall be cancelled.
      (C) If the plan sponsor determines under paragraph (1) that the
    employer continues to have liability to the plan for the partial
    withdrawal, then - 
        (i) the bond shall be paid to the plan,
        (ii) the employer shall immediately be liable for the
      outstanding amount of liability due with respect to the plan year
      for which the bond was posted, and
        (iii) the employer shall continue to make the partial
      withdrawal liability payments as they are due.
    (b) Obligation of employer for payments for partial withdrawal for
      plan years beginning after the second consecutive plan year;
      other criteria applicable
      If - 
        (1) for any 2 consecutive plan years following a partial
      withdrawal under section 1385(a)(1) of this title, the number of
      contribution base units with respect to which the employer has an
      obligation to contribute for each such year exceeds 30 percent of
      the total number of contribution base units with respect to which
      the employer had an obligation to contribute for the high base
      year (within the meaning of section 1385(b)(1)(B)(ii) of this
      title,(!1) and

        (2) the total number of contribution base units with respect to
      which all employers under the plan have obligations to contribute
      in each of such 2 consecutive years is not less than 90 percent
      of the total number of contribution base units for which all
      employers had obligations to contribute in the partial withdrawal
      plan year;

    then, the employer shall have no obligation to make payments with
    respect to such partial withdrawal (other than delinquent payments)
    for plan years beginning after the second such consecutive plan
    year.
    (c) Pro rata reduction of amount of partial withdrawal liability
      payment of employer for plan year following partial withdrawal
      year
      In any case in which, in any plan year following a partial
    withdrawal under section 1385(a)(1) of this title, the number of
    contribution base units with respect to which the employer has an
    obligation to contribute for such year equals or exceeds 110
    percent (or such other percentage as the plan may provide by
    amendment and which is not prohibited under regulations prescribed
    by the corporation) of the number of contribution base units with
    respect to which the employer had an obligation to contribute in
    the partial withdrawal year, then the amount of the employer's
    partial withdrawal liability payment for such year shall be reduced
    pro rata, in accordance with regulations prescribed by the
    corporation.
    (d) Building and construction industry; entertainment industry
      (1) An employer to whom section 1383(b) (!2) of this title
    (relating to the building and construction industry) applies is
    liable for a partial withdrawal only if the employer's obligation
    to contribute under the plan is continued for no more than an
    insubstantial portion of its work in the craft and area
    jurisdiction of the collective bargaining agreement of the type for
    which contributions are required.

      (2) An employer to whom section 1383(c) (!2) of this title
    (relating to the entertainment industry) applies shall have no
    liability for a partial withdrawal except under the conditions and
    to the extent prescribed by the corporation by regulation.
    (e) Reduction or elimination of partial withdrawal liability under
      any conditions; criteria; procedures applicable
      (1) The corporation may prescribe regulations providing for the
    reduction or elimination of partial withdrawal liability under any
    conditions with respect to which the corporation determines that
    reduction or elimination of partial withdrawal liability is
    consistent with the purposes of this chapter.
      (2) Under such regulations, reduction of withdrawal liability
    shall be provided only with respect to subsequent changes in the
    employer's contributions for the same operations, or under the same
    collective bargaining agreement, that gave rise to the partial
    withdrawal, and changes in the employer's contribution base units
    with respect to other facilities or other collective bargaining
    agreements shall not be taken into account.
      (3) The corporation shall prescribe by regulation a procedure by
    which a plan may by amendment adopt rules for the reduction or
    elimination of partial withdrawal liability under any other
    conditions, subject to the approval of the corporation based on its
    determination that adoption of such rules by the plan is consistent
    with the purposes of this chapter.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4208, as added Pub. L. 96-364,
    title I, Sec. 104(2), Sept. 26, 1980, 94 Stat. 1224.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      "Section 1383(b) of this title" and "section 1383(c) of this
    title", referred to in subsec. (d), were in the original "section
    4202(b)" and "section 4202(c)", respectively, meaning section
    4202(b) and section 4202(c) of the Employee Retirement Income
    Security Act of 1974 and were editorially translated as the
    probable intent of Congress in view of section 4202 of the Employee
    Retirement Income Security Act of 1974, which is classified to
    section 1382 of this title, not having subsection designations and
    the subject matter of section 4203 of the Act which is classified
    to section 1383 of this title.
      This chapter, referred to in subsec. (e)(1), (3), was in the
    original "this Act", meaning Pub. L. 93-406, known as the Employee
    Retirement Income Security Act of 1974. Titles I, III, and IV of
    such Act are classified principally to this chapter. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 1001 of this title and Tables.

-FOOTNOTE-
    (!1) So in original. Probably should be "title),".

    (!2) See References in Text note below.


-End-



-CITE-
    29 USC Sec. 1389                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle E - Special Provisions for Multiemployer Plans
    part 1 - employer withdrawals

-HEAD-
    Sec. 1389. De minimis rule

-STATUTE-
    (a) Reduction of unfunded vested benefits allocable to employer
      withdrawn from plan
      Except in the case of a plan amended under subsection (b) of this
    section, the amount of the unfunded vested benefits allocable under
    section 1391 of this title to an employer who withdraws from a plan
    shall be reduced by the smaller of - 
        (1)  3/4  of 1 percent of the plan's unfunded vested
      obligations (determined as of the end of the plan year ending
      before the date of withdrawal), or
        (2) $50,000,

    reduced by the amount, if any, by which the unfunded vested
    benefits allowable to the employer, determined without regard to
    this subsection, exceeds $100,000.
    (b) Amendment of plan for reduction of amount of unfunded vested
      benefits allocable to employer withdrawn from plan
      A plan may be amended to provide for the reduction of the amount
    determined under section 1391 of this title by not more than the
    greater of - 
        (1) the amount determined under subsection (a) of this section,
      or
        (2) the lesser of - 
          (A) the amount determined under subsection (a)(1) of this
        section, or
          (B) $100,000,

    reduced by the amount, if any, by which the amount determined under
    section 1391 of this title for the employer, determined without
    regard to this subsection, exceeds $150,000.
    (c) Nonapplicability
      This section does not apply - 
        (1) to an employer who withdraws in a plan year in which
      substantially all employers withdraw from the plan, or
        (2) in any case in which substantially all employers withdraw
      from the plan during a period of one or more plan years pursuant
      to an agreement or arrangement to withdraw, to an employer who
      withdraws pursuant to such agreement or arrangement.
    (d) Presumption of employer withdrawal from plan pursuant to
      agreement or arrangement applicable in action or proceeding to
      determine or collect withdrawal liability
      In any action or proceeding to determine or collect withdrawal
    liability, if substantially all employers have withdrawn from a
    plan within a period of 3 plan years, an employer who has withdrawn
    from such plan during such period shall be presumed to have
    withdrawn from the plan pursuant to an agreement or arrangement,
    unless the employer proves otherwise by a preponderance of the
    evidence.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4209, as added Pub. L. 96-364,
    title I, Sec. 104(2), Sept. 26, 1980, 94 Stat. 1225.)

-End-



-CITE-
    29 USC Sec. 1390                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle E - Special Provisions for Multiemployer Plans
    part 1 - employer withdrawals

-HEAD-
    Sec. 1390. Nonapplicability of withdrawal liability for certain
      temporary contribution obligation periods; exception

-STATUTE-
      (a) An employer who withdraws from a plan in complete or partial
    withdrawal is not liable to the plan if the employer - 
        (1) first had an obligation to contribute to the plan after
      September 26, 1980,
        (2) had an obligation to contribute to the plan for no more
      than the lesser of - 
          (A) 6 consecutive plan years preceding the date on which the
        employer withdraws, or
          (B) the number of years required for vesting under the plan,

        (3) was required to make contributions to the plan for each
      such plan year in an amount equal to less than 2 percent of the
      sum of all employer contributions made to the plan for each such
      year, and
        (4) has never avoided withdrawal liability because of the
      application of this section with respect to the plan.

      (b) Subsection (a) of this section shall apply to an employer
    with respect to a plan only if - 
        (1) the plan is amended to provide that subsection (a) of this
      section applies;
        (2) the plan provides, or is amended to provide, that the
      reduction under section 411(a)(3)(E) of title 26 applies with
      respect to the employees of the employer; and
        (3) the ratio of the assets of the plan for the plan year
      preceding the first plan year for which the employer was required
      to contribute to the plan to the benefit payments made during
      that plan year was at least 8 to 1.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4210, as added Pub. L. 96-364,
    title I, Sec. 104(2), Sept. 26, 1980, 94 Stat. 1226; amended Pub.
    L. 101-239, title VII, Sec. 7891(a)(1), Dec. 19, 1989, 103 Stat.
    2445; Pub. L. 109-280, title II, Sec. 204(c)(1), Aug. 17, 2006, 120
    Stat. 887.)


-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (b)(1) to (4). Pub. L. 109-280 redesignated pars.
    (2) to (4) as (1) to (3), respectively, and struck out former par.
    (1) which read as follows: "the plan is not a plan which primarily
    covers employees in the building and construction industry;".
      1989 - Subsec. (b)(3). Pub. L. 101-239 substituted "Internal
    Revenue Code of 1986" for "Internal Revenue Code of 1954", which
    for purposes of codification was translated as "title 26" thus
    requiring no change in text.

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Pub. L. 109-280, title II, Sec. 204(c)(3), Aug. 17, 2006, 120
    Stat. 887, provided that: "The amendments made by this subsection
    [amending this section and section 1391 of this title] shall apply
    with respect to plan withdrawals occurring on or after January 1,
    2007."

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by Pub. L. 101-239 effective, except as otherwise
    provided, as if included in the provision of the Tax Reform Act of
    1986, Pub. L. 99-514, to which such amendment relates, see section
    7891(f) of Pub. L. 101-239, set out as a note under section 1002 of
    this title.

-End-



-CITE-
    29 USC Sec. 1391                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle E - Special Provisions for Multiemployer Plans
    part 1 - employer withdrawals

-HEAD-
    Sec. 1391. Methods for computing withdrawal liability

-STATUTE-
    (a) Determination of amount of unfunded vested benefits allocable
      to employer withdrawn from plan
      The amount of the unfunded vested benefits allocable to an
    employer that withdraws from a plan shall be determined in
    accordance with subsection (b), (c), or (d) of this section.
    (b) Factors determining computation of amount of unfunded vested
      benefits allocable to employer withdrawn from plan
      (1) Except as provided in subsections (c) and (d) of this
    section, the amount of unfunded vested benefits allocable to an
    employer that withdraws is the sum of - 
        (A) the employer's proportional share of the unamortized amount
      of the change in the plan's unfunded vested benefits for plan
      years ending after September 25, 1980, as determined under
      paragraph (2),
        (B) the employer's proportional share, if any, of the
      unamortized amount of the plan's unfunded vested benefits at the
      end of the plan year ending before September 26, 1980, as
      determined under paragraph (3); and
        (C) the employer's proportional share of the unamortized
      amounts of the reallocated unfunded vested benefits (if any) as
      determined under paragraph (4).

    If the sum of the amounts determined with respect to an employer
    under paragraphs (2), (3), and (4) is negative, the unfunded vested
    benefits allocable to the employer shall be zero.
      (2)(A) An employer's proportional share of the unamortized amount
    of the change in the plan's unfunded vested benefits for plan years
    ending after September 25, 1980, is the sum of the employer's
    proportional shares of the unamortized amount of the change in
    unfunded vested benefits for each plan year in which the employer
    has an obligation to contribute under the plan ending - 
        (i) after such date, and
        (ii) before the plan year in which the withdrawal of the
      employer occurs.

      (B) The change in a plan's unfunded vested benefits for a plan
    year is the amount by which - 
        (i) the unfunded vested benefits at the end of the plan year;
      exceeds
        (ii) the sum of - 
          (I) the unamortized amount of the unfunded vested benefits
        for the last plan year ending before September 26, 1980, and
          (II) the sum of the unamortized amounts of the change in
        unfunded vested benefits for each plan year ending after
        September 25, 1980, and preceding the plan year for which the
        change is determined.

      (C) The unamortized amount of the change in a plan's unfunded
    vested benefits with respect to a plan year is the change in
    unfunded vested benefits for the plan year, reduced by 5 percent of
    such change for each succeeding plan year.
      (D) The unamortized amount of the unfunded vested benefits for
    the last plan year ending before September 26, 1980, is the amount
    of the unfunded vested benefits as of the end of that plan year
    reduced by 5 percent of such amount for each succeeding plan year.
      (E) An employer's proportional share of the unamortized amount of
    a change in unfunded vested benefits is the product of - 
        (i) the unamortized amount of such change (as of the end of the
      plan year preceding the plan year in which the employer
      withdraws); multiplied by
        (ii) a fraction - 
          (I) the numerator of which is the sum of the contributions
        required to be made under the plan by the employer for the year
        in which such change arose and for the 4 preceding plan years,
        and
          (II) the denominator of which is the sum for the plan year in
        which such change arose and the 4 preceding plan years of all
        contributions made by employers who had an obligation to
        contribute under the plan for the plan year in which such
        change arose reduced by the contributions made in such years by
        employers who had withdrawn from the plan in the year in which
        the change arose.

      (3) An employer's proportional share of the unamortized amount of
    the plan's unfunded vested benefits for the last plan year ending
    before September 26, 1980, is the product of - 
        (A) such unamortized amount; multiplied by - 
        (B) a fraction - 
          (i) the numerator of which is the sum of all contributions
        required to be made by the employer under the plan for the most
        recent 5 plan years ending before September 26, 1980, and
          (ii) the denominator of which is the sum of all contributions
        made for the most recent 5 plan years ending before September
        26, 1980, by all employers - 
            (I) who had an obligation to contribute under the plan for
          the first plan year ending on or after such date, and
            (II) who had not withdrawn from the plan before such date.

      (4)(A) An employer's proportional share of the unamortized amount
    of the reallocated unfunded vested benefits is the sum of the
    employer's proportional share of the unamortized amount of the
    reallocated unfunded vested benefits for each plan year ending
    before the plan year in which the employer withdrew from the plan.
      (B) Except as otherwise provided in regulations prescribed by the
    corporation, the reallocated unfunded vested benefits for a plan
    year is the sum of - 
        (i) any amount which the plan sponsor determines in that plan
      year to be uncollectible for reasons arising out of cases or
      proceedings under title 11, or similar proceedings.(!1)

        (ii) any amount which the plan sponsor determines in that plan
      year will not be assessed as a result of the operation of section
      1389, 1399(c)(1)(B), or 1405 of this title against an employer to
      whom a notice described in section 1399 of this title has been
      sent, and
        (iii) any amount which the plan sponsor determines to be
      uncollectible or unassessable in that plan year for other reasons
      under standards not inconsistent with regulations prescribed by
      the corporation.

      (C) The unamortized amount of the reallocated unfunded vested
    benefits with respect to a plan year is the reallocated unfunded
    vested benefits for the plan year, reduced by 5 percent of such
    reallocated unfunded vested benefits for each succeeding plan year.
      (D) An employer's proportional share of the unamortized amount of
    the reallocated unfunded vested benefits with respect to a plan
    year is the product of - 
        (i) the unamortized amount of the reallocated unfunded vested
      benefits (as of the end of the plan year preceding the plan year
      in which the employer withdraws); multiplied by
        (ii) the fraction defined in paragraph (2)(E)(ii).
    (c) Amendment of multiemployer plan for determination respecting
      amount of unfunded vested benefits allocable to employer
      withdrawn from plan; factors determining computation of amount
      (1) A multiemployer plan, other than a plan which primarily
    covers employees in the building and construction industry, may be
    amended to provide that the amount of unfunded vested benefits
    allocable to an employer that withdraws from the plan is an amount
    determined under paragraph (2), (3), (4), or (5) of this
    subsection, rather than under subsection (b) or (d) of this
    section. A plan described in section 1383(b)(1)(B)(i) of this title
    (relating to the building and construction industry) may be
    amended, to the extent provided in regulations prescribed by the
    corporation, to provide that the amount of the unfunded vested
    benefits allocable to an employer not described in section
    1383(b)(1)(A) of this title shall be determined in a manner
    different from that provided in subsection (b) of this section.
      (2)(A) The amount of the unfunded vested benefits allocable to
    any employer under this paragraph is the sum of the amounts
    determined under subparagraphs (B) and (C).
      (B) The amount determined under this subparagraph is the product
    of - 
        (i) the plan's unfunded vested benefits as of the end of the
      last plan year ending before September 26, 1980, reduced as if
      those obligations were being fully amortized in level annual
      installments over 15 years beginning with the first plan year
      ending on or after such date; multiplied by
        (ii) a fraction - 
          (I) the numerator of which is the sum of all contributions
        required to be made by the employer under the plan for the last
        5 plan years ending before September 26, 1980, and
          (II) the denominator of which is the sum of all contributions
        made for the last 5 plan years ending before September 26,
        1980, by all employers who had an obligation to contribute
        under the plan for the first plan year ending after September
        25, 1980, and who had not withdrawn from the plan before such
        date.

      (C) The amount determined under this subparagraph is the product
    of - 
        (i) an amount equal to - 
          (I) the plan's unfunded vested benefits as of the end of the
        plan year preceding the plan year in which the employer
        withdraws, less
          (II) the sum of the value as of such date of all outstanding
        claims for withdrawal liability which can reasonably be
        expected to be collected, with respect to employers withdrawing
        before such plan year, and that portion of the amount
        determined under subparagraph (B)(i) which is allocable to
        employers who have an obligation to contribute under the plan
        in the plan year preceding the plan year in which the employer
        withdraws and who also had an obligation to contribute under
        the plan for the first plan year ending after September 25,
        1980; multiplied by

        (ii) a fraction - 
          (I) the numerator of which is the total amount required to be
        contributed under the plan by the employer for the last 5 plan
        years ending before the date on which the employer withdraws,
        and
          (II) the denominator of which is the total amount contributed
        under the plan by all employers for the last 5 plan years
        ending before the date on which the employer withdraws,
        increased by the amount of 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
        who withdrew from the plan under this part during those plan
        years.

      (D) The corporation may by regulation permit adjustments in any
    denominator under this section, consistent with the purposes of
    this subchapter, where such adjustment would be appropriate to ease
    administrative burdens of plan sponsors in calculating such
    denominators.
      (3) The amount of the unfunded vested benefits allocable to an
    employer under this paragraph is the product of - 
        (A) the plan's unfunded vested benefits as of the end of the
      plan year preceding the plan year in which the employer
      withdraws, less the value as of the end of such year of all
      outstanding claims for withdrawal liability which can reasonably
      be expected to be collected from employers withdrawing before
      such year; multiplied by
        (B) a fraction - 
          (i) the numerator of which is the total amount required to be
        contributed by the employer under the plan for the last 5 plan
        years ending before the withdrawal, and
          (ii) the denominator of which is the total amount contributed
        under the plan by all employers for the last 5 plan years
        ending before the withdrawal, increased by any employer
        contributions owed with respect to earlier periods which were
        collected in those plan years, and decreased by any amount
        contributed to the plan during those plan years by employers
        who withdrew from the plan under this section during those plan
        years.

      (4)(A) The amount of the unfunded vested benefits allocable to an
    employer under this paragraph is equal to the sum of - 
        (i) the plan's unfunded vested benefits which are attributable
      to participants' service with the employer (determined as of the
      end of the plan year preceding the plan year in which the
      employer withdraws), and
        (ii) the employer's proportional share of any unfunded vested
      benefits which are not attributable to service with the employer
      or other employers who are obligated to contribute under the plan
      in the plan year preceding the plan year in which the employer
      withdraws (determined as of the end of the plan year preceding
      the plan year in which the employer withdraws).

      (B) The plan's unfunded vested benefits which are attributable to
    participants' service with the employer is the amount equal to the
    value of nonforfeitable benefits under the plan which are
    attributable to participants' service with such employer
    (determined under plan rules not inconsistent with regulations of
    the corporation) decreased by the share of plan assets determined
    under subparagraph (C) which is allocated to the employer as
    provided under subparagraph (D).
      (C) The value of plan assets determined under this subparagraph
    is the value of plan assets allocated to nonforfeitable benefits
    which are attributable to service with the employers who have an
    obligation to contribute under the plan in the plan year preceding
    the plan year in which the employer withdraws, which is determined
    by multiplying - 
        (i) the value of the plan assets as of the end of the plan year
      preceding the plan year in which the employer withdraws, by
        (ii) a fraction - 
          (I) the numerator of which is the value of nonforfeitable
        benefits which are attributable to service with such employers,
        and
          (II) the denominator of which is the value of all
        nonforfeitable benefits under the plan

      as of the end of the plan year.

      (D) The share of plan assets, determined under subparagraph (C),
    which is allocated to the employer shall be determined in
    accordance with one of the following methods which shall be adopted
    by the plan by amendment:
        (i) by multiplying the value of plan assets determined under
      subparagraph (C) by a fraction - 
          (I) the numerator of which is the value of the nonforfeitable
        benefits which are attributable to service with the employer,
        and
          (II) the denominator of which is the value of the
        nonforfeitable benefits which are attributable to service with
        all employers who have an obligation to contribute under the
        plan in the plan year preceding the plan year in which the
        employer withdraws;

        (ii) by multiplying the value of plan assets determined under
      subparagraph (C) by a fraction - 
          (I) the numerator of which is the sum of all contributions
        (accumulated with interest) which have been made to the plan by
        the employer for the plan year preceding the plan year in which
        the employer withdraws and all preceding plan years; and
          (II) the denominator of which is the sum of all contributions
        (accumulated with interest) which have been made to the plan
        (for the plan year preceding the plan year in which the
        employer withdraws and all preceding plan years) by all
        employers who have an obligation to contribute to the plan for
        the plan year preceding the plan year in which the employer
        withdraws; or

        (iii) by multiplying the value of plan assets under
      subparagraph (C) by a fraction - 
          (I) the numerator of which is the amount determined under
        clause (ii)(I) of this subparagraph, less the sum of benefit
        payments (accumulated with interest) made to participants (and
        their beneficiaries) for the plan years described in such
        clause (ii)(I) which are attributable to service with the
        employer; and
          (II) the denominator of which is the amount determined under
        clause (ii)(II) of this subparagraph, reduced by the sum of
        benefit payments (accumulated with interest) made to
        participants (and their beneficiaries) for the plan years
        described in such clause (ii)(II) which are attributable to
        service with respect to the employers described in such clause
        (ii)(II).

      (E) The amount of the plan's unfunded vested benefits for a plan
    year preceding the plan year in which an employer withdraws, which
    is not attributable to service with employers who have an
    obligation to contribute under the plan in the plan year preceding
    the plan year in which such employer withdraws, is equal to - 
        (i) an amount equal to - 
          (I) the value of all nonforfeitable benefits under the plan
        at the end of such plan year, reduced by
          (II) the value of nonforfeitable benefits under the plan at
        the end of such plan year which are attributable to
        participants' service with employers who have an obligation to
        contribute under the plan for such plan year; reduced by

        (ii) an amount equal to - 
          (I) the value of the plan assets as of the end of such plan
        year, reduced by
          (II) the value of plan assets as of the end of such plan year
        as determined under subparagraph (C); reduced by

        (iii) the value of all outstanding claims for withdrawal
      liability which can reasonably be expected to be collected with
      respect to employers withdrawing before the year preceding the
      plan year in which the employer withdraws.

      (F) The employer's proportional share described in subparagraph
    (A)(ii) for a plan year is the amount determined under subparagraph
    (E) for the employer, but not in excess of an amount which bears
    the same ratio to the sum of the amounts determined under
    subparagraph (E) for all employers under the plan as the amount
    determined under subparagraph (C) for the employer bears to the sum
    of the amounts determined under subparagraph (C) for all employers
    under the plan.
      (G) The corporation may prescribe by regulation other methods
    which a plan may adopt for allocating assets to determine the
    amount of the unfunded vested benefits attributable to service with
    the employer and to determine the employer's share of unfunded
    vested benefits not attributable to service with employers who have
    an obligation to contribute under the plan in the plan year in
    which the employer withdraws.
      (5)(A) The corporation shall prescribe by regulation a procedure
    by which a plan may, by amendment, adopt any other alternative
    method for determining an employer's allocable share of unfunded
    vested benefits under this section, subject to the approval of the
    corporation based on its determination that adoption of the method
    by the plan would not significantly increase the risk of loss to
    plan participants and beneficiaries or to the corporation.
      (B) The corporation may prescribe by regulation standard
    approaches for alternative methods, other than those set forth in
    the preceding paragraphs of this subsection, which a plan may adopt
    under subparagraph (A), for which the corporation may waive or
    modify the approval requirements of subparagraph (A). Any
    alternative method shall provide for the allocation of
    substantially all of a plan's unfunded vested benefits among
    employers who have an obligation to contribute under the plan.
      (C) Unless the corporation by regulation provides otherwise, a
    plan may be amended to provide that a period of more than 5 but not
    more than 10 plan years may be used for determining the numerator
    and denominator of any fraction which is used under any method
    authorized under this section for determining an employer's
    allocable share of unfunded vested benefits under this section.
      (D) The corporation may by regulation permit adjustments in any
    denominator under this section, consistent with the purposes of
    this subchapter, where such adjustment would be appropriate to ease
    administrative burdens of plan sponsors in calculating such
    denominators.
      (E) Fresh start option. - Notwithstanding paragraph (1), a plan
    may be amended to provide that the withdrawal liability method
    described in subsection (b) shall be applied by substituting the
    plan year which is specified in the amendment and for which the
    plan has no unfunded vested benefits for the plan year ending
    before September 26, 1980.
    (d) Method of calculating allocable share of employer of unfunded
      vested benefits set forth in subsection (c)(3) of this section;
      applicability of certain statutory provisions
      (1) The method of calculating an employer's allocable share of
    unfunded vested benefits set forth in subsection (c)(3) of this
    section shall be the method for calculating an employer's allocable
    share of unfunded vested benefits under a plan to which section
    404(c) of title 26, or a continuation of such a plan, applies,
    unless the plan is amended to adopt another method authorized under
    subsection (b) or (c) of this section.
      (2) Sections 1384, 1389, 1399(c)(1)(B), and 1405 of this title
    shall not apply with respect to the withdrawal of an employer from
    a plan described in paragraph (1) unless the plan is amended to
    provide that any of such sections apply.
    (e) Reduction of liability of withdrawn employer in case of
      transfer of liabilities to another plan incident to withdrawal or
      partial withdrawal of employer
      In the case of a transfer of liabilities to another plan incident
    to an employer's withdrawal or partial withdrawal, the withdrawn
    employer's liability under this part shall be reduced in an amount
    equal to the value, as of the end of the last plan year ending on
    or before the date of the withdrawal, of the transferred unfunded
    vested benefits.
    (f) Computations applicable in case of withdrawal following merger
      of multiemployer plans
      In the case of a withdrawal following a merger of multiemployer
    plans, subsection (b), (c), or (d) of this section shall be applied
    in accordance with regulations prescribed by the corporation;
    except that, if a withdrawal occurs in the first plan year
    beginning after a merger of multiemployer plans, the determination
    under this section shall be made as if each of the multiemployer
    plans had remained separate plans.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4211, as added Pub. L. 96-364,
    title I, Sec. 104(2), Sept. 26, 1980, 94 Stat. 1226; amended Pub.
    L. 98-369, div. A, title V, Sec. 558(b)(1)(A), (B), July 18, 1984,
    98 Stat. 899; Pub. L. 101-239, title VII, Sec. 7891(a)(1), Dec. 19,
    1989, 103 Stat. 2445; Pub. L. 109-280, title II, Sec. 204(c)(2),
    Aug. 17, 2006, 120 Stat. 887.)


-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (c)(5)(E). Pub. L. 109-280 added subpar. (E).
      1989 - Subsec. (d)(1). Pub. L. 101-239 substituted "Internal
    Revenue Code of 1986" for "Internal Revenue Code of 1954", which
    for purposes of codification was translated as "title 26" thus
    requiring no change in text.
      1984 - Subsec. (b). Pub. L. 98-369, Sec. 558(b)(1)(A), (B),
    substituted "September 25, 1980" for "April 28, 1980" in pars.
    (1)(A) and (2)(A), (B)(ii)(II), and "September 26, 1980" for "April
    29, 1980" in pars. (1)(B) and (2)(B)(ii)(I), (D), and in par. (3)
    in provisions preceding subpar. (A) and in subpar. (B)(i), (ii).
      Subsec. (c)(2). Pub. L. 98-369, Sec. 558(b)(1)(A), (B),
    substituted "September 25, 1980" for "April 28, 1980" in subpars.
    (B)(ii)(II) and (C)(i)(II) and "September 26, 1980" for "April 29,
    1980" in subpar. (B)(i), (ii)(I), (II).

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Amendment by Pub. L. 109-280 applicable with respect to plan
    withdrawals occurring on or after Jan. 1, 2007, see section
    204(c)(3) of Pub. L. 109-280, set out as a note under section 1390
    of this title.

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by Pub. L. 101-239 effective, except as otherwise
    provided, as if included in the provision of the Tax Reform Act of
    1986, Pub. L. 99-514, to which such amendment relates, see section
    7891(f) of Pub. L. 101-239, set out as a note under section 1002 of
    this title.

-FOOTNOTE-               

    (!1) So in original. The period probably should be a comma.


-End-



-CITE-
    29 USC Sec. 1392                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle E - Special Provisions for Multiemployer Plans
    part 1 - employer withdrawals

-HEAD-
    Sec. 1392. Obligation to contribute

-STATUTE-
    (a) "Obligation to contribute" defined
      For purposes of this part, the term "obligation to contribute"
    means an obligation to contribute arising - 
        (1) under one or more collective bargaining (or related)
      agreements, or
        (2) as a result of a duty under applicable labor-management
      relations law, but

    does not include an obligation to pay withdrawal liability under
    this section or to pay delinquent contributions.
    (b) Payments of withdrawal liability not considered contributions
      Payments of withdrawal liability under this part shall not be
    considered contributions for purposes of this part.
    (c) Transactions to evade or avoid liability
      If a principal purpose of any transaction is to evade or avoid
    liability under this part, this part shall be applied (and
    liability shall be determined and collected) without regard to such
    transaction.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4212, as added Pub. L. 96-364,
    title I, Sec. 104(2), Sept. 26, 1980, 94 Stat. 1233.)

-End-



-CITE-
    29 USC Sec. 1393                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle E - Special Provisions for Multiemployer Plans
    part 1 - employer withdrawals

-HEAD-
    Sec. 1393. Actuarial assumptions

-STATUTE-
    (a) Use by plan actuary in determining unfunded vested benefits of
      a plan for computing withdrawal liability of employer
      The corporation may prescribe by regulation actuarial assumptions
    which may be used by a plan actuary in determining the unfunded
    vested benefits of a plan for purposes of determining an employer's
    withdrawal liability under this part. Withdrawal liability under
    this part shall be determined by each plan on the basis of - 
        (1) actuarial assumptions and methods which, in the aggregate,
      are reasonable (taking into account the experience of the plan
      and reasonable expectations) and which, in combination, offer the
      actuary's best estimate of anticipated experience under the plan,
      or
        (2) actuarial assumptions and methods set forth in the
      corporation's regulations for purposes of determining an
      employer's withdrawal liability.
    (b) Factors determinative of unfunded vested benefits of plan for
      computing withdrawal liability of employer
      In determining the unfunded vested benefits of a plan for
    purposes of determining an employer's withdrawal liability under
    this part, the plan actuary may - 
        (1) rely on the most recent complete actuarial valuation used
      for purposes of section 412 of title 26 and reasonable estimates
      for the interim years of the unfunded vested benefits, and
        (2) in the absence of complete data, rely on the data available
      or on data secured by a sampling which can reasonably be expected
      to be representative of the status of the entire plan.
    (c) Determination of amount of unfunded vested benefits
      For purposes of this part, the term "unfunded vested benefits"
    means with respect to a plan, an amount equal to - 
        (A) the value of nonforfeitable benefits under the plan, less
        (B) the value of the assets of the plan.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4213, as added Pub. L. 96-364,
    title I, Sec. 104(2), Sept. 26, 1980, 94 Stat. 1233; amended Pub.
    L. 101-239, title VII, Sec. 7891(a)(1), Dec. 19, 1989, 103 Stat.
    2445.)


-MISC1-
                                AMENDMENTS                            
      1989 - Subsec. (b)(1). Pub. L. 101-239 substituted "Internal
    Revenue Code of 1986" for "Internal Revenue Code of 1954", which
    for purposes of codification was translated as "title 26" thus
    requiring no change in text.

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by Pub. L. 101-239 effective, except as otherwise
    provided, as if included in the provision of the Tax Reform Act of
    1986, Pub. L. 99-514, to which such amendment relates, see section
    7891(f) of Pub. L. 101-239, set out as a note under section 1002 of
    this title.

-End-



-CITE-
    29 USC Sec. 1394                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle E - Special Provisions for Multiemployer Plans
    part 1 - employer withdrawals

-HEAD-
    Sec. 1394. Application of plan amendments; exception

-STATUTE-
      (a) No plan rule or amendment adopted after January 31, 1981,
    under section 1389 or 1391(c) of this title may be applied without
    the employer's consent with respect to liability for a withdrawal
    or partial withdrawal which occurred before the date on which the
    rule or amendment was adopted.
      (b) All plan rules and amendments authorized under this part
    shall operate and be applied uniformly with respect to each
    employer, except that special provisions may be made to take into
    account the creditworthiness of an employer. The plan sponsor shall
    give notice to all employers who have an obligation to contribute
    under the plan and to all employee organizations representing
    employees covered under the plan of any plan rules or amendments
    adopted pursuant to this section.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4214, as added Pub. L. 96-364,
    title I, Sec. 104(2), Sept. 26, 1980, 94 Stat. 1234.)

-End-



-CITE-
    29 USC Sec. 1395                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle E - Special Provisions for Multiemployer Plans
    part 1 - employer withdrawals

-HEAD-
    Sec. 1395. Plan notification to corporation of potentially
      significant withdrawals

-STATUTE-
      The corporation may, by regulation, require the plan sponsor of a
    multiemployer plan to provide notice to the corporation when the
    withdrawal from the plan by any employer has resulted, or will
    result, in a significant reduction in the amount of aggregate
    contributions under the plan made by employers.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4215, as added Pub. L. 96-364,
    title I, Sec. 104(2), Sept. 26, 1980, 94 Stat. 1234.)

-End-



-CITE-
    29 USC Sec. 1396                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle E - Special Provisions for Multiemployer Plans
    part 1 - employer withdrawals

-HEAD-
    Sec. 1396. Special rules for plans under section 404(c) of title 26

-STATUTE-
    (a) Amount of withdrawal liability; determinative factors
      In the case of a plan described in subsection (b) of this section
    - 
        (1) if an employer withdraws prior to a termination described
      in section 1341a(a)(2) of this title, the amount of withdrawal
      liability to be paid in any year by such employer shall be an
      amount equal to the greater of - 
          (A) the amount determined under section 1399(c)(1)(C)(i) of
        this title, or
          (B) the product of - 
            (i) the number of contribution base units for which the
          employer would have been required to make contributions for
          the prior plan year if the employer had not withdrawn,
          multiplied by
            (ii) the contribution rate for the plan year which would be
          required to meet the amortization schedules contained in
          section 1423(d)(3)(B)(ii) of this title (determined without
          regard to any limitation on such rate otherwise provided by
          this subchapter)

      except that an employer shall not be required to pay an amount in
      excess of the withdrawal liability computed with interest; and
        (2) the withdrawal liability of an employer who withdraws after
      December 31, 1983, as a result of a termination described in
      section 1341a(a)(2) of this title which is agreed to by the labor
      organization that appoints the employee representative on the
      joint board of trustees which sponsors the plan, shall be
      determined under subsection (c) of this section if - 
          (A) as a result of prior employer withdrawals in any plan
        year commencing after January 1, 1980, the number of
        contribution base units is reduced to less than 67 percent of
        the average number of such units for the calendar years 1974
        through 1979; and
          (B) at least 50 percent of the withdrawal liability
        attributable to the first 33 percent decline described in
        subparagraph (A) has been determined by the plan sponsor to be
        uncollectible within the meaning of regulations of the
        corporation of general applicability; and
          (C) the rate of employer contributions under the plan for
        each plan year following the first plan year beginning after
        September 26, 1980 and preceding the termination date equals or
        exceeds the rate described in section 1423(d)(3) of this title.
    (b) Covered plans
      A plan is described in this subsection if - 
        (1) it is a plan described in section 404(c) of title 26 or a
      continuation thereof; and
        (2) participation in the plan is substantially limited to
      individuals who retired prior to January 1, 1976.
    (c) Amount of liability of employer; "a year of signatory service"
      defined
      (1) The amount of an employer's liability under this paragraph is
    the product of - 
        (A) the amount of the employer's withdrawal liability
      determined without regard to this section, and
        (B) the greater of 90 percent, or a fraction - 
          (i) the numerator of which is an amount equal to the portion
        of the plan's unfunded vested benefits that is attributable to
        plan participants who have a total of 10 or more years of
        signatory service, and
          (ii) the denominator of which is an amount equal to the total
        unfunded vested benefits of the plan.

      (2) For purposes of paragraph (1), the term "a year of signatory
    service" means a year during any portion of which a participant was
    employed for an employer who was obligated to contribute in that
    year, or who was subsequently obligated to contribute.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4216, as added Pub. L. 96-364,
    title I, Sec. 104(2), Sept. 26, 1980, 94 Stat. 1234.)

-End-



-CITE-
    29 USC Sec. 1397                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle E - Special Provisions for Multiemployer Plans
    part 1 - employer withdrawals

-HEAD-
    Sec. 1397. Application of part in case of certain pre-1980
      withdrawals; adjustment of covered plan

-STATUTE-
      (a) For the purpose of determining the amount of unfunded vested
    benefits allocable to an employer for a partial or complete
    withdrawal from a plan which occurs after September 25, 1980, and
    for the purpose of determining whether there has been a partial
    withdrawal after such date, the amount of contributions, and the
    number of contribution base units, of such employer properly
    allocable - 
        (1) to work performed under a collective bargaining agreement
      for which there was a permanent cessation of the obligation to
      contribute before September 26, 1980, or
        (2) to work performed at a facility at which all covered
      operations permanently ceased before September 26, 1980, or for
      which there was a permanent cessation of the obligation to
      contribute before that date,

    shall not be taken into account.
      (b) A plan may, in a manner not inconsistent with regulations,
    which shall be prescribed by the corporation, adjust the amount of
    unfunded vested benefits allocable to other employers under a plan
    maintained by an employer described in subsection (a) of this
    section.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4217, as added Pub. L. 96-364,
    title I, Sec. 104(2), Sept. 26, 1980, 94 Stat. 1235; amended Pub.
    L. 98-369, div. A, title V, Sec. 558(b)(1)(A), (B), July 18, 1984,
    98 Stat. 899.)


-MISC1-
                                AMENDMENTS                            
      1984 - Subsec. (a). Pub. L. 98-369, Sec. 558(b)(1)(A), (B),
    substituted "September 25, 1980" for "April 28, 1980" in provisions
    preceding par. (1) and "September 26, 1980" for "April 29, 1980" in
    pars. (1) and (2).

-End-



-CITE-
    29 USC Sec. 1398                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle E - Special Provisions for Multiemployer Plans
    part 1 - employer withdrawals

-HEAD-
    Sec. 1398. Withdrawal not to occur because of change in business
      form or suspension of contributions during labor dispute

-STATUTE-
      Notwithstanding any other provision of this part, an employer
    shall not be considered to have withdrawn from a plan solely
    because - 
        (1) an employer ceases to exist by reason of - 
          (A) a change in corporate structure described in section
        1369(b) of this title, or
          (B) a change to an unincorporated form of business
        enterprise,

      if the change causes no interruption in employer contributions or
      obligations to contribute under the plan, or
        (2) an employer suspends contributions under the plan during a
      labor dispute involving its employees.

    For purposes of this part, a successor or parent corporation or
    other entity resulting from any such change shall be considered the
    original employer.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4218, as added Pub. L. 96-364,
    title I, Sec. 104(2), Sept. 26, 1980, 94 Stat. 1236; amended Pub.
    L. 99-514, title XVIII, Sec. 1879(u)(4), as added Pub. L. 101-239,
    title VII, Sec. 7862(b)(1)(C), Dec. 19, 1989, 103 Stat. 2432; Pub.
    L. 101-239, title VII, Sec. 7893(f), Dec. 19, 1989, 103 Stat.
    2447.)


-MISC1-
                                AMENDMENTS                            
      1989 - Par. (1)(A). Pub. L. 101-239, Sec. 7893(f), made identical
    amendment to that of Pub. L. 99-514, Sec. 1879(u)(4), as added by
    Pub. L. 101-239, Sec. 7862(b)(1)(C), see below.
      Pub. L. 101-239, Sec. 7862(b)(1)(C), added Pub. L. 99-514, Sec.
    1879(u)(4), see 1986 Amendment note below.
      1986 - Par. (1)(A). Pub. L. 99-514, Sec. 1879(u)(4), as added by
    Pub. L. 101-239, Sec. 7862(b)(1)(C), substituted "section 1369(b)
    of this title" for "section 1362(d) of this title".

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by section 7862(b)(1)(C) of Pub. L. 101-239 effective
    as if included in the provision of the Tax Reform Act of 1986, Pub.
    L. 99-514, to which such amendment relates, see section 7863 of
    Pub. L. 101-239, set out as a note under section 106 of Title 26,
    Internal Revenue Code.
      Amendment by section 7893(f) of Pub. L. 101-239 effective as if
    included in the provision of the Single-Employer Pension Plan
    Amendments Act of 1986, Pub. L. 99-272, title XI, to which such
    amendment relates, see section 7893(h) of Pub. L. 101-239, set out
    as a note under section 1002 of this title.

            PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989        
      For provisions directing that if any amendments made by subtitle
    A or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or
    title XVIII [Secs. 1800-1899A] of Pub. L. 99-514 require an
    amendment to any plan, such plan amendment shall not be required to
    be made before the first plan year beginning on or after Jan. 1,
    1989, see section 1140 of Pub. L. 99-514, as amended, set out as a
    note under section 401 of Title 26, Internal Revenue Code.

-End-



-CITE-
    29 USC Sec. 1399                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle E - Special Provisions for Multiemployer Plans
    part 1 - employer withdrawals

-HEAD-
    Sec. 1399. Notice, collection, etc., of withdrawal liability

-STATUTE-
    (a) Furnishing of information by employer to plan sponsor
      An employer shall, within 30 days after a written request from
    the plan sponsor, furnish such information as the plan sponsor
    reasonably determines to be necessary to enable the plan sponsor to
    comply with the requirements of this part.
    (b) Notification, demand for payment, and review upon complete or
      partial withdrawal by employer
      (1) As soon as practicable after an employer's complete or
    partial withdrawal, the plan sponsor shall - 
        (A) notify the employer of - 
          (i) the amount of the liability, and
          (ii) the schedule for liability payments, and

        (B) demand payment in accordance with the schedule.

      (2)(A) No later than 90 days after the employer receives the
    notice described in paragraph (1), the employer - 
        (i) may ask the plan sponsor to review any specific matter
      relating to the determination of the employer's liability and the
      schedule of payments,
        (ii) may identify any inaccuracy in the determination of the
      amount of the unfunded vested benefits allocable to the employer,
      and
        (iii) may furnish any additional relevant information to the
      plan sponsor.

      (B) After a reasonable review of any matter raised, the plan
    sponsor shall notify the employer of - 
        (i) the plan sponsor's decision,
        (ii) the basis for the decision, and
        (iii) the reason for any change in the determination of the
      employer's liability or schedule of liability payments.
    (c) Payment requirements; amount, etc.
      (1)(A)(i) Except as provided in subparagraphs (B) and (D) of this
    paragraph and in paragraphs (4) and (5), an employer shall pay the
    amount determined under section 1391 of this title, adjusted if
    appropriate first under section 1389 of this title and then under
    section 1386 of this title over the period of years necessary to
    amortize the amount in level annual payments determined under
    subparagraph (C), calculated as if the first payment were made on
    the first day of the plan year following the plan year in which the
    withdrawal occurs and as if each subsequent payment were made on
    the first day of each subsequent plan year. Actual payment shall
    commence in accordance with paragraph (2).
      (ii) The determination of the amortization period described in
    clause (i) shall be based on the assumptions used for the most
    recent actuarial valuation for the plan.
      (B) In any case in which the amortization period described in
    subparagraph (A) exceeds 20 years, the employer's liability shall
    be limited to the first 20 annual payments determined under
    subparagraph (C).
      (C)(i) Except as provided in subparagraph (E), the amount of each
    annual payment shall be the product of - 
        (I) the average annual number of contribution base units for
      the period of 3 consecutive plan years, during the period of 10
      consecutive plan years ending before the plan year in which the
      withdrawal occurs, in which the number of contribution base units
      for which the employer had an obligation to contribute under the
      plan is the highest, and
        (II) the highest contribution rate at which the employer had an
      obligation to contribute under the plan during the 10 plan years
      ending with the plan year in which the withdrawal occurs.

    For purposes of the preceding sentence, a partial withdrawal
    described in section 1385(a)(1) of this title shall be deemed to
    occur on the last day of the first year of the 3-year testing
    period described in section 1385(b)(1)(B)(i) of this title.
      (ii)(I) A plan may be amended to provide that for any plan year
    ending before 1986 the amount of each annual payment shall be (in
    lieu of the amount determined under clause (i)) the average of the
    required employer contributions under the plan for the period of 3
    consecutive plan years (during the period of 10 consecutive plan
    years ending with the plan year preceding the plan year in which
    the withdrawal occurs) for which such required contributions were
    the highest.
      (II) Subparagraph (B) shall not apply to any plan year to which
    this clause applies.
      (III) This clause shall not apply in the case of any withdrawal
    described in subparagraph (D).
      (IV) If under a plan this clause applies to any plan year but
    does not apply to the next plan year, this clause shall not apply
    to any plan year after such next plan year.
      (V) For purposes of this clause, the term "required
    contributions" means, for any period, the amounts which the
    employer was obligated to contribute for such period (not taking
    into account any delinquent contribution for any other period).
      (iii) A plan may be amended to provide that for the first plan
    year ending on or after September 26, 1980, the number "5" shall be
    substituted for the number "10" each place it appears in clause (i)
    or clause (ii) (whichever is appropriate). If the plan is so
    amended, the number "5" shall be increased by one for each
    succeeding plan year until the number "10" is reached.
      (D) In any case in which a multiemployer plan terminates by the
    withdrawal of every employer from the plan, or in which
    substantially all the employers withdraw from a plan pursuant to an
    agreement or arrangement to withdraw from the plan - 
        (i) the liability of each such employer who has withdrawn shall
      be determined (or redetermined) under this paragraph without
      regard to subparagraph (B), and
        (ii) notwithstanding any other provision of this part, the
      total unfunded vested benefits of the plan shall be fully
      allocated among all such employers in a manner not inconsistent
      with regulations which shall be prescribed by the corporation.

    Withdrawal by an employer from a plan, during a period of 3
    consecutive plan years within which substantially all the employers
    who have an obligation to contribute under the plan withdraw, shall
    be presumed to be a withdrawal pursuant to an agreement or
    arrangement, unless the employer proves otherwise by a
    preponderance of the evidence.
      (E) In the case of a partial withdrawal described in section
    1385(a) of this title, the amount of each annual payment shall be
    the product of - 
        (i) the amount determined under subparagraph (C) (determined
      without regard to this subparagraph), multiplied by
        (ii) the fraction determined under section 1386(a)(2) of this
      title.

      (2) Withdrawal liability shall be payable in accordance with the
    schedule set forth by the plan sponsor under subsection (b)(1) of
    this section beginning no later than 60 days after the date of the
    demand notwithstanding any request for review or appeal of
    determinations of the amount of such liability or of the schedule.
      (3) Each annual payment determined under paragraph (1)(C) shall
    be payable in 4 equal installments due quarterly, or at other
    intervals specified by plan rules. If a payment is not made when
    due, interest on the payment shall accrue from the due date until
    the date on which the payment is made.
      (4) The employer shall be entitled to prepay the outstanding
    amount of the unpaid annual withdrawal liability payments
    determined under paragraph (1)(C), plus accrued interest, if any,
    in whole or in part, without penalty. If the prepayment is made
    pursuant to a withdrawal which is later determined to be part of a
    withdrawal described in paragraph (1)(D), the withdrawal liability
    of the employer shall not be limited to the amount of the
    prepayment.
      (5) In the event of a default, a plan sponsor may require
    immediate payment of the outstanding amount of an employer's
    withdrawal liability, plus accrued interest on the total
    outstanding liability from the due date of the first payment which
    was not timely made. For purposes of this section, the term
    "default" means - 
        (A) the failure of an employer to make, when due, any payment
      under this section, if the failure is not cured within 60 days
      after the employer receives written notification from the plan
      sponsor of such failure, and
        (B) any other event defined in rules adopted by the plan which
      indicates a substantial likelihood that an employer will be
      unable to pay its withdrawal liability.

      (6) Except as provided in paragraph (1)(A)(ii), interest under
    this subsection shall be charged at rates based on prevailing
    market rates for comparable obligations, in accordance with
    regulations prescribed by the corporation.
      (7) A multiemployer plan may adopt rules for other terms and
    conditions for the satisfaction of an employer's withdrawal
    liability if such rules - 
        (A) are consistent with this chapter, and
        (B) are not inconsistent with regulations of the corporation.

      (8) In the case of a terminated multiemployer plan, an employer's
    obligation to make payments under this section ceases at the end of
    the plan year in which the assets of the plan (exclusive of
    withdrawal liability claims) are sufficient to meet all obligations
    of the plan, as determined by the corporation.
    (d) Applicability of statutory prohibitions
      The prohibitions provided in section 1106(a) of this title do not
    apply to any action required or permitted under this part.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4219, as added Pub. L. 96-364,
    title I, Sec. 104(2), Sept. 26, 1980, 94 Stat. 1236; amended Pub.
    L. 98-369, div. A, title V, Sec. 558(b)(1)(B), July 18, 1984, 98
    Stat. 899.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This chapter, referred to in subsec. (c)(7)(A), was in the
    original "this Act", meaning Pub. L. 93-406, known as the Employee
    Retirement Income Security Act of 1974. Titles I, III, and IV of
    such Act are classified principally to this chapter. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 1001 of this title and Tables.


-MISC1-
                                AMENDMENTS                            
      1984 - Subsec. (c)(1)(C)(iii). Pub. L. 98-369 substituted
    "September 26, 1980" for "April 29, 1980".

-End-



-CITE-
    29 USC Sec. 1400                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle E - Special Provisions for Multiemployer Plans
    part 1 - employer withdrawals

-HEAD-
    Sec. 1400. Approval of amendments

-STATUTE-
    (a) Amendment of covered multiemployer plan; procedures applicable
      Except as provided in subsection (b) of this section, if an
    amendment to a multiemployer plan authorized by any preceding
    section of this part is adopted more than 36 months after the
    effective date of this section, the amendment shall be effective
    only if the corporation approves the amendment, or, within 90 days
    after the corporation receives notice and a copy of the amendment
    from the plan sponsor, fails to disapprove the amendment.
    (b) Amendment respecting methods for computing withdrawal liability
      An amendment permitted by section 1391(c)(5) of this title may be
    adopted only in accordance with that section.
    (c) Criteria for disapproval by corporation
      The corporation shall disapprove an amendment referred to in
    subsection (a) or (b) of this section only if the corporation
    determines that the amendment creates an unreasonable risk of loss
    to plan participants and beneficiaries or to the corporation.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4220, as added Pub. L. 96-364,
    title I, Sec. 104(2), Sept. 26, 1980, 94 Stat. 1239.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      For the effective date of this section, referred to in subsec.
    (a), see 1461(e)(2) of this title.

-End-



-CITE-
    29 USC Sec. 1401                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle E - Special Provisions for Multiemployer Plans
    part 1 - employer withdrawals

-HEAD-
    Sec. 1401. Resolution of disputes

-STATUTE-
    (a) Arbitration proceedings; matters subject to arbitration,
      procedures applicable, etc.
      (1) Any dispute between an employer and the plan sponsor of a
    multiemployer plan concerning a determination made under sections
    1381 through 1399 of this title shall be resolved through
    arbitration. Either party may initiate the arbitration proceeding
    within a 60-day period after the earlier of - 
        (A) the date of notification to the employer under section
      1399(b)(2)(B) of this title, or
        (B) 120 days after the date of the employer's request under
      section 1399(b)(2)(A) of this title.

    The parties may jointly initiate arbitration within the 180-day
    period after the date of the plan sponsor's demand under section
    1399(b)(1) of this title.
      (2) An arbitration proceeding under this section shall be
    conducted in accordance with fair and equitable procedures to be
    promulgated by the corporation. The plan sponsor may purchase
    insurance to cover potential liability of the arbitrator. If the
    parties have not provided for the costs of the arbitration,
    including arbitrator's fees, by agreement, the arbitrator shall
    assess such fees. The arbitrator may also award reasonable
    attorney's fees.
      (3)(A) For purposes of any proceeding under this section, any
    determination made by a plan sponsor under sections 1381 through
    1399 of this title and section 1405 of this title is presumed
    correct unless the party contesting the determination shows by a
    preponderance of the evidence that the determination was
    unreasonable or clearly erroneous.
      (B) In the case of the determination of a plan's unfunded vested
    benefits for a plan year, the determination is presumed correct
    unless a party contesting the determination shows by a
    preponderance of evidence that - 
        (i) the actuarial assumptions and methods used in the
      determination were, in the aggregate, unreasonable (taking into
      account the experience of the plan and reasonable expectations),
      or
        (ii) the plan's actuary made a significant error in applying
      the actuarial assumptions or methods.
    (b) Alternative collection proceedings; civil action subsequent to
      arbitration award; conduct of arbitration proceedings
      (1) If no arbitration proceeding has been initiated pursuant to
    subsection (a) of this section, the amounts demanded by the plan
    sponsor under section 1399(b)(1) of this title shall be due and
    owing on the schedule set forth by the plan sponsor. The plan
    sponsor may bring an action in a State or Federal court of
    competent jurisdiction for collection.
      (2) Upon completion of the arbitration proceedings in favor of
    one of the parties, any party thereto may bring an action, no later
    than 30 days after the issuance of an arbitrator's award, in an
    appropriate United States district court in accordance with section
    1451 of this title to enforce, vacate, or modify the arbitrator's
    award.
      (3) Any arbitration proceedings under this section shall, to the
    extent consistent with this subchapter, be conducted in the same
    manner, subject to the same limitations, carried out with the same
    powers (including subpena power), and enforced in United States
    courts as an arbitration proceeding carried out under title 9.
    (c) Presumption respecting finding of fact by arbitrator
      In any proceeding under subsection (b) of this section, there
    shall be a presumption, rebuttable only by a clear preponderance of
    the evidence, that the findings of fact made by the arbitrator were
    correct.
    (d) Payments by employer prior and subsequent to determination by
      arbitrator; adjustments; failure of employer to make payments
      Payments shall be made by an employer in accordance with the
    determinations made under this part until the arbitrator issues a
    final decision with respect to the determination submitted for
    arbitration, with any necessary adjustments in subsequent payments
    for overpayments or underpayments arising out of the decision of
    the arbitrator with respect to the determination. If the employer
    fails to make timely payment in accordance with such final
    decision, the employer shall be treated as being delinquent in the
    making of a contribution required under the plan (within the
    meaning of section 1145 of this title).
    (e) Furnishing of information by plan sponsor to employer
      respecting computation of withdrawal liability of employer; fees
      If any employer requests in writing that the plan sponsor make
    available to the employer general information necessary for the
    employer to compute its withdrawal liability with respect to the
    plan (other than information which is unique to that employer), the
    plan sponsor shall furnish the information to the employer without
    charge. If any employer requests in writing that the plan sponsor
    make an estimate of such employer's potential withdrawal liability
    with respect to the plan or to provide information unique to that
    employer, the plan sponsor may require the employer to pay the
    reasonable cost of making such estimate or providing such
    information.
    (f) Procedures applicable to certain disputes
      (1) In general
        If - 
          (A) a plan sponsor of a plan determines that - 
            (i) a complete or partial withdrawal of an employer has
          occurred, or
            (ii) an employer is liable for withdrawal liability
          payments with respect to the complete or partial withdrawal
          of an employer from the plan,

          (B) such determination is based in whole or in part on a
        finding by the plan sponsor under section 1392(c) of this title
        that a principal purpose of a transaction that occurred before
        January 1, 1999, was to evade or avoid withdrawal liability
        under this subtitle, and
          (C) such transaction occurred at least 5 years before the
        date of the complete or partial withdrawal,

      then the special rules under paragraph (2) shall be used in
      applying subsections (a) and (d) of this section and section
      1399(c) of this title to the employer.
      (2) Special rules
        (A) Determination
          Notwithstanding subsection (a)(3) of this section - 
            (i) a determination by the plan sponsor under paragraph
          (1)(B) shall not be presumed to be correct, and
            (ii) the plan sponsor shall have the burden to establish,
          by a preponderance of the evidence, the elements of the claim
          under section 1392(c) of this title that a principal purpose
          of the transaction was to evade or avoid withdrawal liability
          under this subtitle.

        Nothing in this subparagraph shall affect the burden of
        establishing any other element of a claim for withdrawal
        liability under this subtitle.
        (B) Procedure
          Notwithstanding subsection (d) of this section and section
        1399(c) of this title, if an employer contests the plan
        sponsor's determination under paragraph (1) through an
        arbitration proceeding pursuant to subsection (a) of this
        section, or through a claim brought in a court of competent
        jurisdiction, the employer shall not be obligated to make any
        withdrawal liability payments until a final decision in the
        arbitration proceeding, or in court, upholds the plan sponsor's
        determination.
    (g) Procedures applicable to certain disputes
      (1) In general. - If - 
        (A) a plan sponsor of a plan determines that - 
          (i) a complete or partial withdrawal of an employer has
        occurred, or
          (ii) an employer is liable for withdrawal liability payments
        with respect to such complete or partial withdrawal, and

        (B) such determination is based in whole or in part on a
      finding by the plan sponsor under section 1392(c) of this title
      that a principal purpose of any transaction which occurred after
      December 31, 1998, and at least 5 years (2 years in the case of a
      small employer) before the date of the complete or partial
      withdrawal was to evade or avoid withdrawal liability under this
      subtitle,

    then the person against which the withdrawal liability is assessed
    based solely on the application of section 1392(c) of this title
    may elect to use the special rule under paragraph (2) in applying
    subsection (d) of this section and section 1399(c) of this title to
    such person.
      (2) Special rule. - Notwithstanding subsection (d) and section
    1399(c) of this title, if an electing person contests the plan
    sponsor's determination with respect to withdrawal liability
    payments under paragraph (1) through an arbitration proceeding
    pursuant to subsection (a), through an action brought in a court of
    competent jurisdiction for review of such an arbitration decision,
    or as otherwise permitted by law, the electing person shall not be
    obligated to make the withdrawal liability payments until a final
    decision in the arbitration proceeding, or in court, upholds the
    plan sponsor's determination, but only if the electing person - 
        (A) provides notice to the plan sponsor of its election to
      apply the special rule in this paragraph within 90 days after the
      plan sponsor notifies the electing person of its liability by
      reason of the application of section 1392(c) of this title; and
        (B) if a final decision in the arbitration proceeding, or in
      court, of the withdrawal liability dispute has not been rendered
      within 12 months from the date of such notice, the electing
      person provides to the plan, effective as of the first day
      following the 12-month period, a bond issued by a corporate
      surety company that is an acceptable surety for purposes of
      section 1112 of this title, or an amount held in escrow by a bank
      or similar financial institution satisfactory to the plan, in an
      amount equal to the sum of the withdrawal liability payments that
      would otherwise be due under subsection (d) and section 1399(c)
      of this title for the 12-month period beginning with the first
      anniversary of such notice. Such bond or escrow shall remain in
      effect until there is a final decision in the arbitration
      proceeding, or in court, of the withdrawal liability dispute, at
      which time such bond or escrow shall be paid to the plan if such
      final decision upholds the plan sponsor's determination.

      (3) Definition of small employer. - For purposes of this
    subsection - 
        (A) In general. - The term "small employer" means any employer
      which, for the calendar year in which the transaction referred to
      in paragraph (1)(B) occurred and for each of the 3 preceding
      years, on average - 
          (i) employs not more than 500 employees, and
          (ii) is required to make contributions to the plan for not
        more than 250 employees.

        (B) Controlled group. - Any group treated as a single employer
      under subsection (b)(1) of section 1301 of this title, without
      regard to any transaction that was a basis for the plan's finding
      under section 1392 of this title, shall be treated as a single
      employer for purposes of this subparagraph.

      (4) Additional security pending resolution of dispute. - If a
    withdrawal liability dispute to which this subsection applies is
    not concluded by 12 months after the electing person posts the bond
    or escrow described in paragraph (2), the electing person shall, at
    the start of each succeeding 12-month period, provide an additional
    bond or amount held in escrow equal to the sum of the withdrawal
    liability payments that would otherwise be payable to the plan
    during that period.
      (5) The liability of the party furnishing a bond or escrow under
    this subsection shall be reduced, upon the payment of the bond or
    escrow to the plan, by the amount thereof.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4221, as added Pub. L. 96-364,
    title I, Sec. 104(2), Sept. 26, 1980, 94 Stat. 1239; amended Pub.
    L. 108-218, title II, Sec. 202(a), Apr. 10, 2004, 118 Stat. 608;
    Pub. L. 109-280, title II, Sec. 204(d)(1), Aug. 17, 2006, 120 Stat.
    887.)


-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (g). Pub. L. 109-280 added subsec. (g).
      2004 - Subsec. (f). Pub. L. 108-218 added subsec. (f).

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Pub. L. 109-280, title II, Sec. 204(d)(2), Aug. 17, 2006, 120
    Stat. 889, provided that: "The amendments made by this subsection
    [amending this section] shall apply to any person that receives a
    notification under section 4219(b)(1) of the Employee Retirement
    Income Security Act of 1974 [29 U.S.C. 1399(b)(1)] on or after the
    date of enactment of this Act [Aug. 17, 2006] with respect to a
    transaction that occurred after December 31, 1998."

                     EFFECTIVE DATE OF 2004 AMENDMENT                 
      Pub. L. 108-218, title II, Sec. 202(b), Apr. 10, 2004, 118 Stat.
    609, provided that: "The amendments made by this section [amending
    this section] shall apply to any employer that receives a
    notification under section 4219(b)(1) of the Employee Retirement
    Income Security Act of 1974 (29 U.S.C. 1399(b)(1)) after October
    31, 2003."

-End-



-CITE-
    29 USC Sec. 1402                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle E - Special Provisions for Multiemployer Plans
    part 1 - employer withdrawals

-HEAD-
    Sec. 1402. Reimbursements for uncollectible withdrawal liability

-STATUTE-
    (a) Required supplemental program to reimburse for payments due
      from employers uncollectible as a result of employer involvement
      in bankruptcy case or proceedings; program participation,
      premiums, etc.
      By May 1, 1982, the corporation shall establish by regulation a
    supplemental program to reimburse multiemployer plans for
    withdrawal liability payments which are due from employers and
    which are determined to be uncollectible for reasons arising out of
    cases or proceedings involving the employers under title 11, or
    similar cases or proceedings. Participation in the supplemental
    program shall be on a voluntary basis, and a plan which elects
    coverage under the program shall pay premiums to the corporation in
    accordance with a premium schedule which shall be prescribed from
    time to time by the corporation. The premium schedule shall contain
    such rates and bases for the application of such rates as the
    corporation considers to be appropriate.
    (b) Discretionary supplemental program to reimburse for payments
      due from employers uncollectible for other appropriate reasons
      The corporation may provide under the program for reimbursement
    of amounts of withdrawal liability determined to be uncollectible
    for any other reasons the corporation considers appropriate.
    (c) Payment of cost of program
      The cost of the program (including such administrative and legal
    costs as the corporation considers appropriate) may be paid only
    out of premiums collected under such program.
    (d) Terms and conditions, limitations, etc., of supplemental
      program
      The supplemental program may be offered to eligible plans on such
    terms and conditions, and with such limitations with respect to the
    payment of reimbursements (including the exclusion of de minimis
    amounts of uncollectible employer liability, and the reduction or
    elimination of reimbursements which cannot be paid from collected
    premiums) and such restrictions on withdrawal from the program, as
    the corporation considers necessary and appropriate.
    (e) Arrangements by corporation with private insurers for
      implementation of program; election of coverage by participating
      plans with private insurers
      The corporation may enter into arrangements with private insurers
    to carry out in whole or in part the program authorized by this
    section and may require plans which elect coverage under the
    program to elect coverage by those private insurers.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4222, as added Pub. L. 96-364,
    title I, Sec. 104(2), Sept. 26, 1980, 94 Stat. 1240.)

-End-



-CITE-
    29 USC Sec. 1403                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle E - Special Provisions for Multiemployer Plans
    part 1 - employer withdrawals

-HEAD-
    Sec. 1403. Withdrawal liability payment fund

-STATUTE-
    (a) Establishment of or participation in fund by plan sponsors
      The plan sponsors of multiemployer plans may establish or
    participate in a withdrawal liability payment fund.
    (b) Definitions
      For purposes of this section, the term "withdrawal liability
    payment fund", and the term "fund", mean a trust which - 
        (1) is established and maintained under section 501(c)(22) of
      title 26,
        (2) maintains agreements which cover a substantial portion of
      the participants who are in multiemployer plans which (under the
      rules of the trust instrument) are eligible to participate in the
      fund,
        (3) is funded by amounts paid by the plans which participate in
      the fund, and
        (4) is administered by a Board of Trustees, and in the
      administration of the fund there is equal representation of - 
          (A) trustees representing employers who are obligated to
        contribute to the plans participating in the fund, and
          (B) trustees representing employees who are participants in
        plans which participate in the fund.
    (c) Payments to plan; amount, criteria, etc.
      (1) If an employer withdraws from a plan which participates in a
    withdrawal liability payment fund, then, to the extent provided in
    the trust, the fund shall pay to that plan - 
        (A) the employer's unattributable liability,
        (B) the employer's withdrawal liability payments which would
      have been due but for section 1388, 1389, 1399, or 1405 of this
      title,
        (C) the employer's withdrawal liability payments to the extent
      they are uncollectible.

      (2) The fund may provide for the payment of the employer's
    attributable liability if the fund - 
        (A) provides for the payment of both the attributable and the
      unattributable liability of the employer in a single payment, and
        (B) is subrogated to all rights of the plan against the
      employer.

      (3) For purposes of this section, the term - 
        (A) "attributable liability" means the excess, if any,
      determined under the provisions of a plan not inconsistent with
      regulations of the corporation, of - 
          (i) the value of vested benefits accrued as a result of
        service with the employer, over
          (ii) the value of plan assets attributed to the employer, and

        (B) "unattributable liability" means the excess of withdrawal
      liability over attributable liability.

    Such terms may be further defined, and the manner in which they
    shall be applied may be prescribed, by the corporation by
    regulation.
      (4)(A) The trust of a fund shall be maintained for the exclusive
    purpose of paying - 
        (i) any amount described in paragraph (1) and paragraph (2),
      and
        (ii) reasonable and necessary administrative expenses in
      connection with the establishment and operation of the trust and
      the processing of claims against the fund.

      (B) The amounts paid by a plan to a fund shall be deemed a
    reasonable expense of administering the plan under sections
    1103(c)(1) and 1104(a)(1)(A)(ii) of this title, and the payments
    made by a fund to a participating plan shall be deemed services
    necessary for the operation of the plan within the meaning of
    section 1108(b)(2) of this title or within the meaning of section
    4975(d)(2) of title 26.
    (d) Application of payments by plan
      (1) For purposes of this part - 
        (A) only amounts paid by the fund to a plan under subsection
      (c)(1)(A) of this section shall be credited to withdrawal
      liability otherwise payable by the employer, unless the plan
      otherwise provides, and
        (B) any amounts paid by the fund under subsection (c) of this
      section to a plan shall be treated by the plan as a payment of
      withdrawal liability to such plan.

      (2) For purposes of applying provisions relating to the funding
    standard accounts (and minimum contribution requirements), amounts
    paid from the plan to the fund shall be applied to reduce the
    amount treated as contributed to the plan.
    (e) Subrogation of fund to rights of plan
      The fund shall be subrogated to the rights of the plan against
    the employer that has withdrawn from the plan for amounts paid by a
    fund to a plan under - 
        (1) subsection (c)(1)(A) of this section, to the extent not
      credited under subsection (d)(1)(A) of this section, and
        (2) subsection (c)(1)(C) of this section.
    (f) Discharge of rights of fiduciary of fund; standards applicable,
      etc.
      Notwithstanding any other provision of this chapter, a fiduciary
    of the fund shall discharge the fiduciary's duties with respect to
    the fund in accordance with the standards for fiduciaries
    prescribed by this chapter (to the extent not inconsistent with the
    purposes of this section), and in accordance with the documents and
    instruments governing the fund insofar as such documents and
    instruments are consistent with the provisions of this chapter (to
    the extent not inconsistent with the purposes of this section). The
    provisions of the preceding sentence shall supersede any and all
    State laws relating to fiduciaries insofar as they may now or
    hereafter relate to a fund to which this section applies.
    (g) Prohibition on payments from fund to plan where certain labor
      negotiations involve employer withdrawn or partially withdrawn
      from plan and continuity of labor organization representing
      employees continues
      No payments shall be made from a fund to a plan on the occasion
    of a withdrawal or partial withdrawal of an employer from such plan
    if the employees representing the withdrawn contribution base units
    continue, after such withdrawal, to be represented under section
    159 of this title (or other applicable labor laws) in negotiations
    with such employer by the labor organization which represented such
    employees immediately preceding such withdrawal.
    (h) Purchase of insurance by employer
      Nothing in this section shall be construed to prohibit the
    purchase of insurance by an employer from any other person, to
    limit the circumstances under which such insurance would be
    payable, or to limit in any way the terms and conditions of such
    insurance.
    (i) Promulgation of regulations for establishment and maintenance
      of fund
      The corporation may provide by regulation rules not inconsistent
    with this section governing the establishment and maintenance of
    funds, but only to the extent necessary to carry out the purposes
    of this part (other than section 1402 of this title).

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4223, as added Pub. L. 96-364,
    title I, Sec. 104(2), Sept. 26, 1980, 94 Stat. 1241; amended Pub.
    L. 101-239, title VII, Sec. 7891(a), Dec. 19, 1989, 103 Stat.
    2445.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This chapter, referred to in subsec. (f), was in the original
    "this Act", meaning Pub. L. 93-406, known as the Employee
    Retirement Income Security Act of 1974. Titles I, III, and IV of
    such Act are classified principally to this chapter. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 1001 of this title and Tables.


-MISC1-
                                AMENDMENTS                            
      1989 - Subsecs. (b)(1), (c)(4)(B). Pub. L. 101-239 substituted
    "Internal Revenue Code of 1986" for "Internal Revenue Code of
    1954", which for purposes of codification was translated as "title
    26" thus requiring no change in text.

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by Pub. L. 101-239 effective, except as otherwise
    provided, as if included in the provision of the Tax Reform Act of
    1986, Pub. L. 99-514, to which such amendment relates, see section
    7891(f) of Pub. L. 101-239, set out as a note under section 1002 of
    this title.

-End-



-CITE-
    29 USC Sec. 1404                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle E - Special Provisions for Multiemployer Plans
    part 1 - employer withdrawals

-HEAD-
    Sec. 1404. Alternative method of withdrawal liability payments

-STATUTE-
      A multiemployer plan may adopt rules providing for other terms
    and conditions for the satisfaction of an employer's withdrawal
    liability if such rules are consistent with this chapter and with
    such regulations as may be prescribed by the corporation.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4224, as added Pub. L. 96-364,
    title I, Sec. 104(2), Sept. 26, 1980, 94 Stat. 1242.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This chapter, referred to in text, was in the original "this
    Act", meaning Pub. L. 93-406, known as the Employee Retirement
    Income Security Act of 1974. Titles I, III, and IV of such Act are
    classified principally to this chapter. For complete classification
    of this Act to the Code, see Short Title note set out under section
    1001 of this title and Tables.

-End-



-CITE-
    29 USC Sec. 1405                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle E - Special Provisions for Multiemployer Plans
    part 1 - employer withdrawals

-HEAD-
    Sec. 1405. Limitation on withdrawal liability

-STATUTE-
    (a) Unfunded vested benefits allocable to employer in bona fide
      sale of assets of employer in arms-length transaction to
      unrelated party; maximum amount; determinative factors
      (1) In the case of bona fide sale of all or substantially all of
    the employer's assets in an arm's-length transaction to an
    unrelated party (within the meaning of section 1384(d) of this
    title), the unfunded vested benefits allocable to an employer
    (after the application of all sections of this part having a lower
    number designation than this section), other than an employer
    undergoing reorganization under title 11 or similar provisions of
    State law, shall not exceed the greater of - 
        (A) a portion (determined under paragraph (2)) of the
      liquidation or dissolution value of the employer (determined
      after the sale or exchange of such assets), or
        (B) in the case of a plan using the attributable method of
      allocating withdrawal liability, the unfunded vested benefits
      attributable to employees of the employer.

      (2) For purposes of paragraph (1), the portion shall be
    determined in accordance with the following table:


          If the liquidation or                 The portion is -        
        distribution value of the                                       
       employer after the sale or                                       
              exchange is -                                             
    --------------------------------------------------------------------
    Not more than $5,000,000            30 percent of the amount.       
    More than $5,000,000, but not       $1,500,000, plus 35 percent of  
     more than $10,000,000               the amount in excess of        
                                         $5,000,000.                    
    More than $10,000,000, but not      $3,250,000, plus 40 percent of  
     more than $15,000,000               the amount in excess of        
                                         $10,000,000.                   
    More than $15,000,000, but not      $5,250,000, plus 45 percent of  
     more than $17,500,000               the amount in excess of        
                                         $15,000,000.                   
    More than $17,500,000, but not      $6,375,000, plus 50 percent of  
     more than $20,000,000               the amount in excess of        
                                         $17,500,000.                   
    More than $20,000,000, but not      $7,625,000, plus 60 percent of  
     more than $22,500,000               the amount in excess of        
                                         $20,000,000.                   
    More than $22,500,000, but not      $9,125,000, plus 70 percent of  
     more than $25,000,000               the amount in excess of        
                                         $22,500,000.                   
    More than $25,000,000               $10,875,000, plus 80 percent of 
                                         the amount in excess of        
                                         $25,000,000.                   
    --------------------------------------------------------------------

    (b) Unfunded vested benefits allocable to insolvent employer
      undergoing liquidation or dissolution; maximum amount;
      determinative factors
      In the case of an insolvent employer undergoing liquidation or
    dissolution, the unfunded vested benefits allocable to that
    employer shall not exceed an amount equal to the sum of - 
        (1) 50 percent of the unfunded vested benefits allocable to the
      employer (determined without regard to this section), and
        (2) that portion of 50 percent of the unfunded vested benefits
      allocable to the employer (as determined under paragraph (1))
      which does not exceed the liquidation or dissolution value of the
      employer determined - 
          (A) as of the commencement of liquidation or dissolution, and
          (B) after reducing the liquidation or dissolution value of
        the employer by the amount determined under paragraph (1).
    (c) Property not subject to enforcement of liability; precondition
      To the extent that the withdrawal liability of an employer is
    attributable to his obligation to contribute to or under a plan as
    an individual (whether as a sole proprietor or as a member of a
    partnership), property which may be exempt from the estate under
    section 522 of title 11 or under similar provisions of law, shall
    not be subject to enforcement of such liability.
    (d) Insolvency of employer; liquidation or dissolution value of
      employer
      For purposes of this section - 
        (1) an employer is insolvent if the liabilities of the
      employer, including withdrawal liability under the plan
      (determined without regard to subsection (b) of this section),
      exceed the assets of the employer (determined as of the
      commencement of the liquidation or dissolution), and
        (2) the liquidation or dissolution value of the employer shall
      be determined without regard to such withdrawal liability.
    (e) One or more withdrawals of employer attributable to same sale,
      liquidation, or dissolution
      In the case of one or more withdrawals of an employer
    attributable to the same sale, liquidation, or dissolution, under
    regulations prescribed by the corporation - 
        (1) all such withdrawals shall be treated as a single
      withdrawal for the purpose of applying this section, and
        (2) the withdrawal liability of the employer to each plan shall
      be an amount which bears the same ratio to the present value of
      the withdrawal liability payments to all plans (after the
      application of the preceding provisions of this section) as the
      withdrawal liability of the employer to such plan (determined
      without regard to this section) bears to the withdrawal liability
      of the employer to all such plans (determined without regard to
      this section).

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4225, as added Pub. L. 96-364,
    title I, Sec. 104(2), Sept. 26, 1980, 94 Stat. 1243; amended Pub.
    L. 109-280, title II, Sec. 204(a)(1), (2), Aug. 17, 2006, 120 Stat.
    886, 887.)


-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (a)(1)(B). Pub. L. 109-280, Sec. 204(a)(2),
    amended subpar. (B) generally. Prior to amendment, subpar. (B) read
    as follows: "the unfunded vested benefits attributable to employees
    of the employer."
      Subsec. (a)(2). Pub. L. 109-280, Sec. 204(a)(1), added table and
    struck out former table which provided for a portion of: 30 percent
    of the amount if the liquidation or dissolution value of the
    employer after the sale or exchange is not more than $2,000,000;
    $600,000, plus 35 percent of the amount in excess of $2,000,000, if
    the employer's liquidation or dissolution value is more than
    $2,000,000, but not more than $4,000,000; $1,300,000, plus 40
    percent of the amount in excess of $4,000,000, if the employer's
    liquidation or dissolution value is more than $4,000,000, but not
    more than $6,000,000; $2,100,000, plus 45 percent of the amount in
    excess of $6,000,000, if the employer's liquidation or dissolution
    value is more than $6,000,000, but not more than $7,000,000;
    $2,550,000, plus 50 percent of the amount in excess of $7,000,000,
    if the employer's liquidation or dissolution value is more than
    $7,000,000, but not more than $8,000,000; $3,050,000, plus 60
    percent of the amount in excess of $8,000,000, if the employer's
    liquidation or dissolution value is more than $8,000,000, but not
    more than $9,000,000; $3,650,000, plus 70 percent of the amount in
    excess of $9,000,000, if the employer's liquidation or dissolution
    value is more than $9,000,000, but not more than $10,000,000; and
    $4,350,000, plus 80 percent of the amount in excess of $10,000,000,
    if the employer's liquidation or dissolution value is more than
    $10,000,000.

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Pub. L. 109-280, title II, Sec. 204(a)(3), Aug. 17, 2006, 120
    Stat. 887, provided that: "The amendments made by this subsection
    [amending this section] shall apply to sales occurring on or after
    January 1, 2007."

-End-


-CITE-
    29 USC part 2 - merger or transfer of plan assets or
                     liabilities                           01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle E - Special Provisions for Multiemployer Plans
    part 2 - merger or transfer of plan assets or liabilities

-HEAD-
         PART 2 - MERGER OR TRANSFER OF PLAN ASSETS OR LIABILITIES     

-End-



-CITE-
    29 USC Sec. 1411                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle E - Special Provisions for Multiemployer Plans
    part 2 - merger or transfer of plan assets or liabilities

-HEAD-
    Sec. 1411. Mergers and transfers between multiemployer plans

-STATUTE-
    (a) Authority of plan sponsor
      Unless otherwise provided in regulations prescribed by the
    corporation, a plan sponsor may not cause a multiemployer plan to
    merge with one or more multiemployer plans, or engage in a transfer
    of assets and liabilities to or from another multiemployer plan,
    unless such merger or transfer satisfies the requirements of
    subsection (b) of this section.
    (b) Criteria
      A merger or transfer satisfies the requirements of this section
    if - 
        (1) in accordance with regulations of the corporation, the plan
      sponsor of a multiemployer plan notifies the corporation of a
      merger with or transfer of plan assets or liabilities to another
      multiemployer plan at least 120 days before the effective date of
      the merger or transfer;
        (2) no participant's or beneficiary's accrued benefit will be
      lower immediately after the effective date of the merger or
      transfer than the benefit immediately before that date;
        (3) the benefits of participants and beneficiaries are not
      reasonably expected to be subject to suspension under section
      1426 of this title; and
        (4) an actuarial valuation of the assets and liabilities of
      each of the affected plans has been performed during the plan
      year preceding the effective date of the merger or transfer,
      based upon the most recent data available as of the day before
      the start of that plan year, or other valuation of such assets
      and liabilities performed under such standards and procedures as
      the corporation may prescribe by regulation.
    (c) Actions not deemed violation of section 1106(a) or (b)(2) of
      this title
      The merger of multiemployer plans or the transfer of assets or
    liabilities between multiemployer plans, shall be deemed not to
    constitute a violation of the provisions of section 1106(a) of this
    title or section 1106(b)(2) of this title if the corporation
    determines that the merger or transfer otherwise satisfies the
    requirements of this section.
    (d) Nature of plan to which liabilities are transferred
      A plan to which liabilities are transferred under this section is
    a successor plan for purposes of section 1322a(b)(2)(B) of this
    title.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4231, as added Pub. L. 96-364,
    title I, Sec. 104(2), Sept. 26, 1980, 94 Stat. 1244.)


-MISC1-
                              EFFECTIVE DATE                          
      Part effective Sept. 26, 1980, except as specifically provided,
    see section 1461(e) of this title.

-End-



-CITE-
    29 USC Sec. 1412                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle E - Special Provisions for Multiemployer Plans
    part 2 - merger or transfer of plan assets or liabilities

-HEAD-
    Sec. 1412. Transfers between a multiemployer plan and a single-
      employer plan

-STATUTE-
    (a) General authority
      A transfer of assets or liabilities between, or a merger of, a
    multiemployer plan and a single-employer plan shall satisfy the
    requirements of this section.
    (b) Accrued benefit of participant or beneficiary not lower
      immediately after effective date of transfer or merger
      No accrued benefit of a participant or beneficiary may be lower
    immediately after the effective date of a transfer or merger
    described in subsection (a) of this section than the benefit
    immediately before that date.
    (c) Liability of multiemployer plan to corporation where single-
      employer plan terminates within 60 months after effective date
      of transfer; amount of liability, exemption, etc.
      (1) Except as provided in paragraphs (2) and (3), a multiemployer
    plan which transfers liabilities to a single-employer plan shall be
    liable to the corporation if the single-employer plan terminates
    within 60 months after the effective date of the transfer. The
    amount of liability shall be the lesser of - 
        (A) the amount of the plan asset insufficiency of the
      terminated single-employer plan, less 30 percent of the net worth
      of the employer who maintained the single-employer plan,
      determined in accordance with section 1362 or 1364 this title, or
        (B) the value, on the effective date of the transfer, of the
      unfunded benefits transferred to the single-employer plan which
      are guaranteed under section 1322 of this title.

      (2) A multiemployer plan shall be liable to the corporation as
    provided in paragraph (1) unless, within 180 days after the
    corporation receives an application (together with such information
    as the corporation may reasonably require for purposes of such
    application) from the multiemployer plan sponsor for a
    determination under this paragraph - 
        (A) the corporation determines that the interests of the plan
      participants and beneficiaries and of the corporation are
      adequately protected, or
        (B) fails to make any determination regarding the adequacy with
      which such interests are protected with respect to such transfer
      of liabilities.

    If, after the receipt of such application, the corporation requests
    from the plan sponsor additional information necessary for the
    determination, the running of the 180-day period shall be suspended
    from the date of such request until the receipt by the corporation
    of the additional information requested. The corporation may by
    regulation prescribe procedures and standards for the issuance of
    determinations under this paragraph. This paragraph shall not apply
    to any application submitted less than 180 days after September 26,
    1980.
      (3) A multiemployer plan shall not be liable to the corporation
    as provided in paragraph (1) in the case of a transfer from the
    multiemployer plan to a single-employer plan of liabilities which
    accrued under a single-employer plan which merged with the
    multiemployer plan, if, the value of liabilities transferred to the
    single-employer plan does not exceed the value of the liabilities
    for benefits which accrued before the merger, and the value of the
    assets transferred to the single-employer plan is substantially
    equal to the value of the assets which would have been in the
    single-employer plan if the employer had maintained and funded it
    as a separate plan under which no benefits accrued after the date
    of the merger.
      (4) The corporation may make equitable arrangements with
    multiemployer plans which are liable under this subsection for
    satisfaction of their liability.
    (d) Guarantee of benefits under single-employer plan
      Benefits under a single-employer plan to which liabilities are
    transferred in accordance with this section are guaranteed under
    section 1322 of this title to the extent provided in that section
    as of the effective date of the transfer and the plan is a
    successor plan.
    (e) Transfer of liabilities by multiemployer plan to single-
      employer plan
      (1) Except as provided in paragraph (2), a multiemployer plan may
    not transfer liabilities to a single-employer plan unless the plan
    sponsor of the plan to which the liabilities would be transferred
    agrees to the transfer.
      (2) In the case of a transfer described in subsection (c)(3) of
    this section, paragraph (1) of this subsection is satisfied by the
    advance agreement to the transfer by the employer who will be
    obligated to contribute to the single-employer plan.
    (f) Additional requirements by corporation for protection of
      interests of plan participants, beneficiaries and corporation;
      approval by corporation of transfer of assets or liabilities to
      single-employer plan from plan in reorganization; covered
      transfers in connection with termination
      (1) The corporation may prescribe by regulation such additional
    requirements with respect to the transfer of assets or liabilities
    as may be necessary to protect the interests of plan participants
    and beneficiaries and the corporation.
      (2) Except as otherwise determined by the corporation, a transfer
    of assets or liabilities to a single-employer plan from a plan in
    reorganization under section 1421 of this title is not effective
    unless the corporation approves such transfer.
      (3) No transfer to which this section applies, in connection with
    a termination described in section 1341a(a)(2) of this title shall
    be effective unless the transfer meets such requirements as may be
    established by the corporation to prevent an increase in the risk
    of loss to the corporation.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4232, as added Pub. L. 96-364,
    title I, Sec. 104(2), Sept. 26, 1980, 94 Stat. 1245.)

-End-



-CITE-
    29 USC Sec. 1413                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle E - Special Provisions for Multiemployer Plans
    part 2 - merger or transfer of plan assets or liabilities

-HEAD-
    Sec. 1413. Partition

-STATUTE-
    (a) Authority of corporation
      The corporation may order the partition of a multiemployer plan
    in accordance with this section.
    (b) Authority of plan sponsor upon application to corporation for
      partition order; procedures applicable to corporation
      A plan sponsor may apply to the corporation for an order
    partitioning a plan. The corporation may not order the partition of
    a plan except upon notice to the plan sponsor and the participants
    and beneficiaries whose vested benefits will be affected by the
    partition of the plan, and upon finding that - 
        (1) a substantial reduction in the amount of aggregate
      contributions under the plan has resulted or will result from a
      case or proceeding under title 11 with respect to an employer;
        (2) the plan is likely to become insolvent;
        (3) contributions will have to be increased significantly in
      reorganization to meet the minimum contribution requirement and
      prevent insolvency; and
        (4) partition would significantly reduce the likelihood that
      the plan will become insolvent.
    (c) Authority of corporation notwithstanding pendency of partition
      proceeding
      The corporation may order the partition of a plan notwithstanding
    the pendency of a proceeding described in subsection (b)(1) of this
    section.
    (d) Scope of partition order
      The corporation's partition order shall provide for a transfer of
    no more than the nonforfeitable benefits directly attributable to
    service with the employer referred to in subsection (b)(1) of this
    section and an equitable share of assets.
    (e) Nature of plan created by partition
      The plan created by the partition is - 
        (1) a successor plan to which section 1322a of this title
      applies, and
        (2) a terminated multiemployer plan to which section 1341a(d)
      of this title applies, with respect to which only the employer
      described in subsection (b)(1) of this section has withdrawal
      liability, and to which section 1368 of this title applies.
    (f) Authority of corporation to obtain decree partitioning plan and
      appointing trustee for terminated portion of partitioned plan
      The corporation may proceed under section 1342(c) through (h) of
    this title for a decree partitioning a plan and appointing a
    trustee for the terminated portion of a partitioned plan. The court
    may order the partition of a plan upon making the findings
    described in subsection (b)(1) through (4) of this section, and
    subject to the conditions set forth in subsections (c) through (e)
    of this section.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4233, as added Pub. L. 96-364,
    title I, Sec. 104(2), Sept. 26, 1980, 94 Stat. 1246.)

-End-



-CITE-
    29 USC Sec. 1414                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle E - Special Provisions for Multiemployer Plans
    part 2 - merger or transfer of plan assets or liabilities

-HEAD-
    Sec. 1414. Asset transfer rules

-STATUTE-
    (a) Applicability and scope
      A transfer of assets from a multiemployer plan to another plan
    shall comply with asset-transfer rules which shall be adopted by
    the multiemployer plan and which - 
        (1) do not unreasonably restrict the transfer of plan assets in
      connection with the transfer of plan liabilities, and
        (2) operate and are applied uniformly with respect to each
      proposed transfer, except that the rules may provide for
      reasonable variations taking into account the potential financial
      impact of a proposed transfer on the multiemployer plan.

    Plan rules authorizing asset transfers consistent with the
    requirements of section 1412(c)(3) of this title shall be
    considered to satisfy the requirements of this subsection.
    (b) Exemption of de minimis transfers
      The corporation shall prescribe regulations which exempt de
    minimis transfers of assets from the requirements of this part.
    (c) Written reciprocity agreements
      This part shall not apply to transfers of assets pursuant to
    written reciprocity agreements, except to the extent provided in
    regulations prescribed by the corporation.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4234, as added Pub. L. 96-364,
    title I, Sec. 104(2), Sept. 26, 1980, 94 Stat. 1247.)

-End-



-CITE-
    29 USC Sec. 1415                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle E - Special Provisions for Multiemployer Plans
    part 2 - merger or transfer of plan assets or liabilities

-HEAD-
    Sec. 1415. Transfers pursuant to change in bargaining
      representative

-STATUTE-
    (a) Authority to transfer from old plan to new plan pursuant to
      employee participation in another multiemployer plan after
      certified change of representative
      In any case in which an employer has completely or partially
    withdrawn from a multiemployer plan (hereafter in this section
    referred to as the "old plan") as a result of a certified change of
    collective bargaining representative occurring after September 25,
    1980, if participants of the old plan who are employed by the
    employer will, as a result of that change, participate in another
    multiemployer plan (hereafter in this section referred to as the
    "new plan"), the old plan shall transfer assets and liabilities to
    the new plan in accordance with this section.
    (b) Notification by employer of plan sponsor of old plan;
      notification by plan sponsor of old plan of employer and plan
      sponsor of new plan; appeal by new plan to prevent transfer;
      further proceedings
      (1) The employer shall notify the plan sponsor of the old plan of
    a change in multiemployer plan participation described in
    subsection (a) of this section no later than 30 days after the
    employer determines that the change will occur.
      (2) The plan sponsor of the old plan shall - 
        (A) notify the employer of - 
          (i) the amount of the employer's withdrawal liability
        determined under part 1 of this subtitle with respect to the
        withdrawal,
          (ii) the old plan's intent to transfer to the new plan the
        nonforfeitable benefits of the employees who are no longer
        working in covered service under the old plan as a result of
        the change of bargaining representative, and
          (iii) the amount of assets and liabilities which are to be
        transferred to the new plan, and

        (B) notify the plan sponsor of the new plan of the benefits,
      assets, and liabilities which will be transferred to the new
      plan.

      (3) Within 60 days after receipt of the notice described in
    paragraph (2)(B), the new plan may file an appeal with the
    corporation to prevent the transfer. The transfer shall not be made
    if the corporation determines that the new plan would suffer
    substantial financial harm as a result of the transfer. Upon
    notification described in paragraph (2), if - 
        (A) the employer fails to object to the transfer within 60 days
      after receipt of the notice described in paragraph (2)(A), or
        (B) the new plan either - 
          (i) fails to file such an appeal, or
          (ii) the corporation, pursuant to such an appeal, fails to
        find that the new plan would suffer substantial financial harm
        as a result of the transfer described in the notice under
        paragraph (2)(B) within 180 days after the date on which the
        appeal is filed,

    then the plan sponsor of the old plan shall transfer the
    appropriate amount of assets and liabilities to the new plan.
    (c) Reduction of amount of withdrawal liability of employer upon
      transfer of appropriate amount of assets and liabilities by plan
      sponsor of old plan to new plan
      If the plan sponsor of the old plan transfers the appropriate
    amount of assets and liabilities under this section to the new
    plan, then the amount of the employer's withdrawal liability (as
    determined under section 1381(b) of this title without regard to
    such transfer and this section) with respect to the old plan shall
    be reduced by the amount by which - 
        (1) the value of the unfunded vested benefits allocable to the
      employer which were transferred by the plan sponsor of the old
      plan to the new plan, exceeds
        (2) the value of the assets transferred.
    (d) Escrow payments by employer upon complete or partial withdrawal
      and prior to transfer
      In any case in which there is a complete or partial withdrawal
    described in subsection (a) of this section, if - 
        (1) the new plan files an appeal with the corporation under
      subsection (b)(3) of this section, and
        (2) the employer is required by section 1399 of this title to
      begin making payments of withdrawal liability before the earlier
      of - 
          (A) the date on which the corporation finds that the new plan
        would not suffer substantial financial harm as a result of the
        transfer, or
          (B) the last day of the 180-day period beginning on the date
        on which the new plan files its appeal,

    then the employer shall make such payments into an escrow held by a
    bank or similar financial institution satisfactory to the old plan.
    If the transfer is made, the amounts paid into the escrow shall be
    returned to the employer. If the transfer is not made, the amounts
    paid into the escrow shall be paid to the old plan and credited
    against the employer's withdrawal liability.
    (e) Prohibition on transfer of assets to new plan by plan sponsor
      of old plan; exemptions
      (1) Notwithstanding subsection (b) of this section, the plan
    sponsor shall not transfer any assets to the new plan if - 
        (A) the old plan is in reorganization (within the meaning of
      section 1421(a) of this title), or
        (B) the transfer of assets would cause the old plan to go into
      reorganization (within the meaning of section 1421(a) of this
      title).

      (2) In any case in which a transfer of assets from the old plan
    to the new plan is prohibited by paragraph (1), the plan sponsor of
    the old plan shall transfer - 
        (A) all nonforfeitable benefits described in subsection (b)(2)
      of this section, if the value of such benefits does not exceed
      the withdrawal liability of the employer with respect to such
      withdrawal, or
        (B) such nonforfeitable benefits having a value equal to the
      withdrawal liability of the employer, if the value of such
      benefits exceeds the withdrawal liability of the employer.
    (f) Agreement between plan sponsors of old plan and new plan to
      transfer in compliance with other statutory provisions; reduction
      of withdrawal liability of employer from old plan; amount of
      withdrawal liability of employer to new plan
      (1) Notwithstanding subsections (b) and (e) of this section, the
    plan sponsors of the old plan and the new plan may agree to a
    transfer of assets and liabilities that complies with sections 1411
    and 1414 of this title, rather than this section, except that the
    employer's liability with respect to the withdrawal from the old
    plan shall be reduced under subsection (c) of this section as if
    assets and liabilities had been transferred in accordance with this
    section.
      (2) If the employer withdraws from the new plan within 240 months
    after the effective date of a transfer of assets and liabilities
    described in this section, the amount of the employer's withdrawal
    liability to the new plan shall be the greater of - 
        (A) the employer's withdrawal liability determined under part 1
      of this subtitle with respect to the new plan, or
        (B) the amount by which the employer's withdrawal liability to
      the old plan was reduced under subsection (c) of this section,
      reduced by 5 percent for each 12-month period following the
      effective date of the transfer and ending before the date of the
      withdrawal from the new plan.
    (g) Definitions
      For purposes of this section - 
        (1) "appropriate amount of assets" means the amount by which
      the value of the nonforfeitable benefits to be transferred
      exceeds the amount of the employer's withdrawal liability to the
      old plan (determined under part 1 of this subtitle without regard
      to section 1391(e) of this title), and
        (2) "certified change of collective bargaining representative"
      means a change of collective bargaining representative certified
      under the Labor-Management Relations Act, 1947 [29 U.S.C. 141 et
      seq.], or the Railway Labor Act [45 U.S.C. 151 et seq.].

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4235, as added Pub. L. 96-364,
    title I, Sec. 104(2), Sept. 26, 1980, 94 Stat. 1247; amended Pub.
    L. 98-369, div. A, title V, Sec. 558(b)(1)(A), July 18, 1984, 98
    Stat. 899.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Labor-Management Relations Act, 1947, referred to in subsec.
    (g)(2), is act June 23, 1947, ch. 120, 61 Stat. 136, as amended,
    which is classified principally to chapter 7 (Sec. 141 et seq.) of
    this title. For complete classification of this Act to the Code,
    see section 141 of this title and Tables.
      The Railway Labor Act, referred to in subsec. (g)(2), is act May
    20, 1926, ch. 347, 44 Stat. 577, as amended, which is classified
    principally to chapter 8 (Sec. 151 et seq.) of Title 45, Railroads.
    For complete classification of this Act to the Code, see section
    151 of Title 45 and Tables.


-MISC1-
                                AMENDMENTS                            
      1984 - Subsec. (a). Pub. L. 98-369 substituted "September 25,
    1980" for "April 28, 1980".

                              EFFECTIVE DATE                          
      Section effective Sept. 26, 1980, see section 1461(e)(4) of this
    title.

-End-


-CITE-
    29 USC part 3 - reorganization; minimum contribution
                     requirement for multiemployer plans         01/03/2007 

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle E - Special Provisions for Multiemployer Plans
    part 3 - reorganization; minimum contribution requirement for
              multiemployer plans                     

-HEAD-
       PART 3 - REORGANIZATION; MINIMUM CONTRIBUTION REQUIREMENT FOR
                            MULTIEMPLOYER PLANS

-End-



-CITE-
    29 USC Sec. 1421                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle E - Special Provisions for Multiemployer Plans
    part 3 - reorganization; minimum contribution requirement for
              multiemployer plans                     

-HEAD-
    Sec. 1421. Reorganization status

-STATUTE-
    (a) Reorganization index of plan for plan year greater than zero
      A multiemployer plan is in reorganization for a plan year if the
    plan's reorganization index for that year is greater than zero.
    (b) Determination of reorganization index of plan for plan year;
      applicable factors, definitions, etc.
      (1) A plan's reorganization index for any plan year is the excess
    of - 
        (A) the vested benefits charge for such year, over
        (B) the net charge to the funding standard account for such
      year.

      (2) For purposes of this part, the net charge to the funding
    standard account for any plan year is the excess (if any) of - 
        (A) the charges to the funding standard account for such year
      under section 412(b)(2) of title 26, over
        (B) the credits to the funding standard account under section
      412(b)(3)(B) of title 26.

      (3) For purposes of this part, the vested benefits charge for any
    plan year is the amount which would be necessary to amortize the
    plan's unfunded vested benefits as of the end of the base plan year
    in equal annual installments - 
        (A) over 10 years, to the extent such benefits are attributable
      to persons in pay status, and
        (B) over 25 years, to the extent such benefits are attributable
      to other participants.

      (4)(A) The vested benefits charge for a plan year shall be based
    on an actuarial valuation of the plan as of the end of the base
    plan year, adjusted to reflect - 
        (i) any - 
          (I) decrease of 5 percent or more in the value of plan
        assets, or increase of 5 percent or more in the number of
        persons in pay status, during the period beginning on the first
        day of the plan year following the base plan year and ending on
        the adjustment date, or
          (II) at the election of the plan sponsor, actuarial valuation
        of the plan as of the adjustment date or any later date not
        later than the last day of the plan year for which the
        determination is being made,

        (ii) any change in benefits under the plan which is not
      otherwise taken into account under this subparagraph and which is
      pursuant to any amendment - 
          (I) adopted before the end of the plan year for which the
        determination is being made, and
          (II) effective after the end of the base plan year and on or
        before the end of the plan year referred to in subclause (I),
        and

        (iii) any other event (including an event described in
      subparagraph (B)(i)(I)) which, as determined in accordance with
      regulations prescribed by the Secretary, would substantially
      increase the plan's vested benefit charge.

      (B)(i) In determining the vested benefits charge for a plan year
    following a plan year in which the plan was not in reorganization,
    any change in benefits which - 
        (I) results from the changing of a group of participants from
      one benefit level to another benefit level under a schedule of
      plan benefits as a result of changes in a collective bargaining
      agreement, or
        (II) results from any other change in a collective bargaining
      agreement,

    shall not be taken into account except to the extent provided in
    regulations prescribed by the Secretary of the Treasury.
      (ii) Except as otherwise determined by the Secretary of the
    Treasury, in determining the vested benefits charge for any plan
    year following any plan year in which the plan was in
    reorganization, any change in benefits - 
        (I) described in clause (i)(I), or
        (II) described in clause (i)(II) as determined under
      regulations prescribed by the Secretary of the Treasury,

    shall, for purposes of subparagraph (A)(ii), be treated as a change
    in benefits pursuant to an amendment to a plan.
      (5)(A) For purposes of this part, the base plan year for any plan
    year is - 
        (i) if there is a relevant collective bargaining agreement, the
      last plan year ending at least 6 months before the relevant
      effective date, or
        (ii) if there is no relevant collective bargaining agreement,
      the last plan year ending at least 12 months before the beginning
      of the plan year.

      (B) For purposes of this part, a relevant collective bargaining
    agreement is a collective bargaining agreement - 
        (i) which is in effect for at least 6 months during the plan
      year, and
        (ii) which has not been in effect for more than 36 months as of
      the end of the plan year.

      (C) For purposes of this part, the relevant effective date is the
    earliest of the effective dates for the relevant collective
    bargaining agreements.
      (D) For purposes of this part, the adjustment date is the date
    which is - 
        (i) 90 days before the relevant effective date, or
        (ii) if there is no relevant effective date, 90 days before the
      beginning of the plan year.

      (6) For purposes of this part, the term "person in pay status"
    means - 
        (A) a participant or beneficiary on the last day of the base
      plan year who, at any time during such year, was paid an early,
      late, normal, or disability retirement benefit (or a death
      benefit related to a retirement benefit), and
        (B) to the extent provided in regulations prescribed by the
      Secretary of the Treasury, any other person who is entitled to
      such a benefit under the plan.

      (7) For purposes of paragraph (3) - 
        (A) in determining the plan's unfunded vested benefits, plan
      assets shall first be allocated to the vested benefits
      attributable to persons in pay status, and
        (B) the vested benefits charge shall be determined without
      regard to reductions in accrued benefits under section 1425 of
      this title which are first effective in the plan year.

      (8) For purposes of this part, any outstanding claim for
    withdrawal liability shall not be considered a plan asset, except
    as otherwise provided in regulations prescribed by the Secretary of
    the Treasury.
      (9) For purposes of this part, the term "unfunded vested
    benefits" means with respect to a plan, an amount (determined in
    accordance with regulations prescribed by the Secretary of the
    Treasury) equal to - 
        (A) the value of nonforfeitable benefits under the plan, less
        (B) the value of assets of the plan.
    (c) Payment of benefits to participants
      Except as provided in regulations prescribed by the corporation,
    while a plan is in reorganization a benefit with respect to a
    participant (other than a death benefit) which is attributable to
    employer contributions and which has a value of more than $1,750
    may not be paid in a form other than an annuity which (by itself or
    in combination with social security, railroad retirement, or
    workers' compensation benefits) provides substantially level
    payments over the life of the participant.
    (d) Terminated multiemployer plans
      Any multiemployer plan which terminates under section 1341a(a)(2)
    of this title shall not be considered in reorganization after the
    last day of the plan year in which the plan is treated as having
    terminated.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4241, as added Pub. L. 96-364,
    title I, Sec. 104(2), Sept. 26, 1980, 94 Stat. 1249; amended Pub.
    L. 101-239, title VII, Sec. 7891(a)(1), Dec. 19, 1989, 103 Stat.
    2445.)


-MISC1-
                                AMENDMENTS                            
      1989 - Subsec. (b)(2)(A). Pub. L. 101-239 substituted "Internal
    Revenue Code of 1986" for "Internal Revenue Code of 1954", which
    for purposes of codification was translated as "title 26" thus
    requiring no change in text.

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by Pub. L. 101-239 effective, except as otherwise
    provided, as if included in the provision of the Tax Reform Act of
    1986, Pub. L. 99-514, to which such amendment relates, see section
    7891(f) of Pub. L. 101-239, set out as a note under section 1002 of
    this title.

                              EFFECTIVE DATE                          
      Part, relating to multiemployer plan reorganization, effective,
    with respect to each plan, on the first day of the first plan year
    beginning on or after the earlier of the date on which the last
    collective-bargaining agreement providing for employer
    contributions under the plan, which was in effect on Sept. 26,
    1980, expires, without regard to extensions agreed to after Sept.
    26, 1980, or three years after Sept. 26, 1980, see section
    1461(e)(3) of this title.

-End-



-CITE-
    29 USC Sec. 1422                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle E - Special Provisions for Multiemployer Plans
    part 3 - reorganization; minimum contribution requirement for
              multiemployer plans                     

-HEAD-
    Sec. 1422. Notice of reorganization and funding requirements

-STATUTE-
      (a)(1) If - 
        (A) a multiemployer plan is in reorganization for a plan year,
      and
        (B) section 1423 of this title would require an increase in
      contributions for such plan year,

    the plan sponsor shall notify the persons described in paragraph
    (2) that the plan is in reorganization and that, if contributions
    to the plan are not increased, accrued benefits under the plan may
    be reduced or an excise tax may be imposed (or both such reduction
    and imposition may occur).
      (2) The persons described in this paragraph are - 
        (A) each employer who has an obligation to contribute under the
      plan (within the meaning of section 1381(h)(5) of this title),
      and
        (B) each employee organization which, for purposes of
      collective bargaining, represents plan participants employed by
      such an employer.

      (3) The determination under paragraph (1)(B) shall be made
    without regard to the overburden credit provided by section 1424 of
    this title.
      (b) The corporation may prescribe additional or alternative
    requirements for assuring, in the case of a plan with respect to
    which notice is required by subsection (a)(1) of this section, that
    the persons described in subsection (a)(2) of this section - 
        (1) receive appropriate notice that the plan is in
      reorganization,
        (2) are adequately informed of the implications of
      reorganization status, and
        (3) have reasonable access to information relevant to the
      plan's reorganization status.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4242, as added Pub. L. 96-364,
    title I, Sec. 104(2), Sept. 26, 1980, 94 Stat. 1251.)

-End-



-CITE-
    29 USC Sec. 1423                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle E - Special Provisions for Multiemployer Plans
    part 3 - reorganization; minimum contribution requirement for
              multiemployer plans                     

-HEAD-
    Sec. 1423. Minimum contribution requirement

-STATUTE-
    (a) Maintenance of funding standard account; amount of accumulated
      funding deficiency
      (1) For any plan year for which a plan is in reorganization - 
        (A) the plan shall continue to maintain its funding standard
      account while it is in reorganization, and
        (B) the plan's accumulated funding deficiency under section
      1082(a) of this title for such plan year shall be equal to the
      excess (if any) of - 
          (i) the sum of the minimum contribution requirement for such
        plan year (taking into account any overburden credit under
        section 1424(a) of this title) plus the plan's accumulated
        funding deficiency for the preceding plan year (determined
        under this section if the plan was in reorganization during
        such year or under section 1082(a) of this title if the plan
        was not in reorganization), over
          (ii) amounts considered contributed by employers to or under
        the plan for the plan year (increased by any amount waived
        under subsection (f) of this section for the plan year).

      (2) For purposes of paragraph (1), withdrawal liability payments
    (whether or not received) which are due with respect to withdrawals
    before the end of the base plan year shall be considered amounts
    contributed by the employer to or under the plan if, as of the
    adjustment date, it was reasonable for the plan sponsor to
    anticipate that such payments would be made during the plan year.
    (b) Determination of amount; applicable factors
      (1) Except as otherwise provided in this section, for purposes of
    this part the minimum contribution requirement for a plan year in
    which a plan is in reorganization is an amount equal to the excess
    of - 
        (A) the sum of - 
          (i) the plan's vested benefits charge for the plan year, and
          (ii) the increase in normal cost for the plan year determined
        under the entry age normal funding method which is attributable
        to plan amendments adopted while the plan was in
        reorganization, over

        (B) the amount of the overburden credit (if any) determined
      under section 1424 of this title for the plan year.

      (2) If the plan's current contribution base for the plan year is
    less than the plan's valuation contribution base for the plan year,
    the minimum contribution requirement for such plan year shall be
    equal to the product of the amount determined under paragraph (1)
    (after any adjustment required by this part other than this
    paragraph) and a fraction - 
        (A) the numerator of which is the plan's current contribution
      base for the plan year, and
        (B) the denominator of which is the plan's valuation
      contribution base for the plan year.

      (3)(A) If the vested benefits charge for a plan year of a plan in
    reorganization is less than the plan's cash-flow amount for the
    plan year, the plan's minimum contribution requirement for the plan
    year is the amount determined under paragraph (1) (determined
    before the application of paragraph (2)) after substituting the
    term "cash-flow amount" for the term "vested benefits charge" in
    paragraph (1)(A).
      (B) For purposes of subparagraph (A), a plan's cash-flow amount
    for a plan year is an amount equal to - 
        (i) the amount of the benefits payable under the plan for the
      base plan year, plus the amount of the plan's administrative
      expenses for the base plan year, reduced by
        (ii) the value of the available plan assets for the base plan
      year determined under regulations prescribed by the Secretary of
      the Treasury,

    adjusted in a manner consistent with section 1421(b)(4) of this
    title.
    (c) Current contribution base; valuation contribution base
      (1) For purposes of this part, a plan's current contribution base
    for a plan year is the number of contribution base units with
    respect to which contributions are required to be made under the
    plan for that plan year, determined in accordance with regulations
    prescribed by the Secretary of the Treasury.
      (2)(A) Except as provided in subparagraph (B), for purposes of
    this part a plan's valuation contribution base is the number of
    contribution base units for which contributions were received for
    the base plan year - 
        (i) adjusted to reflect declines in the contribution base which
      have occurred (or could reasonably be anticipated) as of the
      adjustment date for the plan year referred to in paragraph (1),
        (ii) adjusted upward (in accordance with regulations prescribed
      by the Secretary of the Treasury) for any contribution base
      reduction in the base plan year caused by a strike or lockout or
      by unusual events, such as fire, earthquake, or severe weather
      conditions, and
        (iii) adjusted (in accordance with regulations prescribed by
      the Secretary of the Treasury) for reductions in the contribution
      base resulting from transfers of liabilities.

      (B) For any plan year - 
        (i) in which the plan is insolvent (within the meaning of
      section 1426(b)(1) of this title), and
        (ii) beginning with the first plan year beginning after the
      expiration of all relevant collective bargaining agreements which
      were in effect in the plan year in which the plan became
      insolvent,

    the plan's valuation contribution base is the greater of the number
    of contribution base units for which contributions were received
    for the first or second plan year preceding the first plan year in
    which the plan is insolvent, adjusted as provided in clause (ii) or
    (iii) of subparagraph (A).
    (d) Maximum amount; amount of funding standard requirement;
      applicability to plan amendments increasing benefits
      (1) Under regulations prescribed by the Secretary of the
    Treasury, the minimum contribution requirement applicable to any
    plan for any plan year which is determined under subsection (b) of
    this section (without regard to subsection (b)(2) of this section)
    shall not exceed an amount which is equal to the sum of - 
        (A) the greater of - 
          (i) the funding standard requirement for such plan year, or
          (ii) 107 percent of - 
            (I) if the plan was not in reorganization in the preceding
          plan year, the funding standard requirement for such
          preceding plan year, or
            (II) if the plan was in reorganization in the preceding
          plan year, the sum of the amount determined under this
          subparagraph for the preceding plan year and the amount (if
          any) determined under subparagraph (B) for the preceding plan
          year, plus

        (B) if for the plan year a change in benefits is first required
      to be considered in computing the charges under section
      412(b)(2)(A) or (B) of title 26, the sum of - 
          (i) the increase in normal cost for a plan year determined
        under the entry age normal funding method due to increases in
        benefits described in section 1421(b)(4)(A)(ii) of this title
        (determined without regard to section 1421(b)(4)(B)(i) of this
        title), and
          (ii) the amount necessary to amortize in equal annual
        installments the increase in the value of vested benefits under
        the plan due to increases in benefits described in clause (i)
        over - 
            (I) 10 years, to the extent such increase in value is
          attributable to persons in pay status, or
            (II) 25 years, to the extent such increase in value is
          attributable to other participants.

      (2) For purposes of paragraph (1), the funding standard
    requirement for any plan year is an amount equal to the net charge
    to the funding standard account for such plan year (as defined in
    section 1421(b)(2) of this title).
      (3)(A) In the case of a plan described in section 1396(b) of this
    title, if a plan amendment which increases benefits is adopted
    after January 1, 1980 - 
        (i) paragraph (1) shall apply only if the plan is a plan
      described in subparagraph (B), and
        (ii) the amount under paragraph (1) shall be determined without
      regard to paragraph (1)(B).

      (B) A plan is described in this subparagraph if - 
        (i) the rate of employer contributions under the plan for the
      first plan year beginning on or after the date on which an
      amendment increasing benefits is adopted, multiplied by the
      valuation contribution base for that plan year, equals or exceeds
      the sum of - 
          (I) the amount that would be necessary to amortize fully, in
        equal annual installments, by July 1, 1986, the unfunded vested
        benefits attributable to plan provisions in effect on July 1,
        1977 (determined as of the last day of the base plan year); and
          (II) the amount that would be necessary to amortize fully, in
        equal annual installments, over the period described in
        subparagraph (C), beginning with the first day of the first
        plan year beginning on or after the date on which the amendment
        is adopted, the unfunded vested benefits (determined as of the
        last day of the base plan year) attributable to each plan
        amendment after July 1, 1977; and

        (ii) the rate of employer contributions for each subsequent
      plan year is not less than the lesser of - 
          (I) the rate which when multiplied by the valuation
        contribution base for that subsequent plan year produces the
        annual amount that would be necessary to complete the
        amortization schedule described in clause (i), or
          (II) the rate for the plan year immediately preceding such
        subsequent plan year, plus 5 percent of such rate.

      (C) The period determined under this subparagraph is the lesser
    of - 
        (i) 12 years, or
        (ii) a period equal in length to the average of the remaining
      expected lives of all persons receiving benefits under the plan.

      (4) Paragraph (1) shall not apply with respect to a plan, other
    than a plan described in paragraph (3), for the period of
    consecutive plan years in each of which the plan is in
    reorganization, beginning with a plan year in which occurs the
    earlier of the date of the adoption or the effective date of any
    amendment of the plan which increases benefits with respect to
    service performed before the plan year in which the adoption of the
    amendment occurred.
    (e) Adjustment of vested benefits charge
      In determining the minimum contribution requirement with respect
    to a plan for a plan year under subsection (b) of this section, the
    vested benefits charge may be adjusted to reflect a plan amendment
    reducing benefits under section 412(c)(8) of title 26.
    (f) Waiver of accumulated funding deficiency
      (1) The Secretary of the Treasury may waive any accumulated
    funding deficiency under this section in accordance with the
    provisions of section 1083(a) of this title.
      (2) Any waiver under paragraph (1) shall not be treated as a
    waived funding deficiency (within the meaning of section 1083(c) of
    this title).
    (g) Statutory methods applicable for determinations
      For purposes of making any determination under this part, the
    requirements of section 1082(c)(3) of this title shall apply.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4243, as added Pub. L. 96-364,
    title I, Sec. 104(2), Sept. 26, 1980, 94 Stat. 1252; amended Pub.
    L. 101-239, title VII, Sec. 7891(a)(1), Dec. 19, 1989, 103 Stat.
    2445; Pub. L. 109-280, title I, Sec. 107(b)(6)-(9), Aug. 17, 2006,
    120 Stat. 820.)


-STATAMEND-
                           AMENDMENT OF SECTION                       
      Pub. L. 109-280, title I, Sec. 107(b)(6)-(9), (e), Aug. 17, 2006,
    120 Stat. 820, provided that, applicable to plan years beginning
    after 2007, this section is amended as follows:
      (1) in subsection (a)(1)(B), by substituting "1084(a)" for
    "1082(a)" in introductory provisions and clause (i);
      (2) in subsection (f)(1), by substituting "1082(c)" for
    "1083(a)";
      (3) in subsection (f)(2), by substituting "1082(c)(3)" for
    "1083(c)"; and
      (4) in subsection (g), by substituting "1084(c)(3)" for
    "1082(c)(3)".


-MISC1-
                                AMENDMENTS                            
      1989 - Subsecs. (d)(1)(B), (e). Pub. L. 101-239 substituted
    "Internal Revenue Code of 1986" for "Internal Revenue Code of
    1954", which for purposes of codification was translated as "title
    26" thus requiring no change in text.

                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Amendment by Pub. L. 109-280 applicable to plan years beginning
    after 2007, see section 107(e) of Pub. L. 109-280, set out as a
    note under section 1021 of this title.

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by Pub. L. 101-239 effective, except as otherwise
    provided, as if included in the provision of the Tax Reform Act of
    1986, Pub. L. 99-514, to which such amendment relates, see section
    7891(f) of Pub. L. 101-239, set out as a note under section 1002 of
    this title.

    APPLICABILITY OF AMENDMENTS BY SUBTITLES A AND B OF TITLE I OF PUB.
                                L. 109-280
      For special rules on applicability of amendments by subtitles A
    (Secs. 101-107) and B (Secs. 111-116) of title I of Pub. L. 109-280
    to certain eligible cooperative plans, PBGC settlement plans, and
    eligible government contractor plans, see sections 104, 105, and
    106 of Pub. L. 109-280, set out as notes under section 401 of Title
    26, Internal Revenue Code.

-End-



-CITE-
    29 USC Sec. 1424                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle E - Special Provisions for Multiemployer Plans
    part 3 - reorganization; minimum contribution requirement for
              multiemployer plans                     

-HEAD-
    Sec. 1424. Overburden credit against minimum contribution
      requirement

-STATUTE-
    (a) Applicability of overburden credit to determinations
      For purposes of determining the minimum contribution requirement
    under section 1423 of this title (before the application of section
    1423(b)(2) or (d) of this title) the plan sponsor of a plan which
    is overburdened for the plan year shall apply an overburden credit
    against the plan's minimum contribution requirement for the plan
    year (determined without regard to section 1423(b)(2) or (d) of
    this title and without regard to this section).
    (b) Determination of overburden status of plan
      A plan is overburdened for a plan year if - 
        (1) the average number of pay status participants under the
      plan in the base plan year exceeds the average of the number of
      active participants in the base plan year and the 2 plan years
      preceding the base plan year, and
        (2) the rate of employer contributions under the plan equals or
      exceeds the greater of - 
          (A) such rate for the preceding plan year, or
          (B) such rate for the plan year preceding the first year in
        which the plan is in reorganization.
    (c) Amount of overburden credit
      The amount of the overburden credit for a plan year is the
    product of - 
        (1) one-half of the average guaranteed benefit paid for the
      base plan year, and
        (2) the overburden factor for the plan year.

    The amount of the overburden credit for a plan year shall not
    exceed the amount of the minimum contribution requirement for such
    year (determined without regard to this section).
    (d) Amount of overburden factor
      For purposes of this section, the overburden factor of a plan for
    the plan year is an amount equal to - 
        (1) the average number of pay status participants for the base
      plan year, reduced by
        (2) the average of the number of active participants for the
      base plan year and for each of the 2 plan years preceding the
      base plan year.
    (e) Definitions; determinative factors
      For purposes of this section - 
        (1) The term "pay status participant" means, with respect to a
      plan, a participant receiving retirement benefits under the plan.
        (2) The number of active participants for a plan year shall be
      the sum of - 
          (A) the number of active employees who are participants in
        the plan and on whose behalf contributions are required to be
        made during the plan year;
          (B) the number of active employees who are not participants
        in the plan but who are in an employment unit covered by a
        collective bargaining agreement which requires the employees'
        employer to contribute to the plan, unless service in such
        employment unit was never covered under the plan or a
        predecessor thereof, and
          (C) the total number of active employees attributed to
        employers who made payments to the plan for the plan year of
        withdrawal liability pursuant to part 1 of this subtitle,
        determined by dividing - 
            (i) the total amount of such payments, by
            (ii) the amount equal to the total contributions received
          by the plan during the plan year divided by the average
          number of active employees who were participants in the plan
          during the plan year.

      The Secretary of the Treasury shall by regulation provide
      alternative methods of determining active participants where (by
      reason of irregular employment, contributions on a unit basis, or
      otherwise) this paragraph does not yield a representative basis
      for determining the credit.
        (3) The term "average number" means, with respect to pay status
      participants for a plan year, a number equal to one-half the sum
      of - 
          (A) the number with respect to the plan as of the beginning
        of the plan year, and
          (B) the number with respect to the plan as of the end of the
        plan year.

        (4) The average guaranteed benefit paid is 12 times the average
      monthly pension payment guaranteed under section 1322a(c)(1) of
      this title determined under the provisions of the plan in effect
      at the beginning of the first plan year in which the plan is in
      reorganization and without regard to section 1322a(c)(2) (!1) of
      this title.

        (5) The first year in which the plan is in reorganization is
      the first of a period of 1 or more consecutive plan years in
      which the plan has been in reorganization not taking into account
      any plan years the plan was in reorganization prior to any period
      of 3 or more consecutive plan years in which the plan was not in
      reorganization.
    (f) Eligibility of plan for overburden credit for plan year
      (1) Notwithstanding any other provision of this section, a plan
    is not eligible for an overburden credit for a plan year if the
    Secretary of the Treasury finds that the plan's current
    contribution base for the plan year was reduced, without a
    corresponding reduction in the plan's unfunded vested benefits
    attributable to pay status participants, as a result of a change in
    an agreement providing for employer contributions under the plan.
      (2) For purposes of paragraph (1), a complete or partial
    withdrawal of an employer (within the meaning of part 1 of this
    subtitle) does not impair a plan's eligibility for an overburden
    credit, unless the Secretary of the Treasury finds that a
    contribution base reduction described in paragraph (1) resulted
    from a transfer of liabilities to another plan in connection with
    the withdrawal.
    (g) Overburden credit where 2 or more multiemployer plans merge
      Notwithstanding any other provision of this section, if 2 or more
    multiemployer plans merge, the amount of the overburden credit
    which may be applied under this section with respect to the plan
    resulting from the merger for any of the 3 plan years ending after
    the effective date of the merger shall not exceed the sum of the
    used overburden credit for each of the merging plans for its last
    plan year ending before the effective date of the merger. For
    purposes of the preceding sentence, the used overburden credit is
    that portion of the credit which does not exceed the excess of the
    minimum contribution requirement (determined without regard to any
    overburden requirement under this section) over the employer
    contributions required under the plan.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4244, as added Pub. L. 96-364,
    title I, Sec. 104(2), Sept. 26, 1980, 94 Stat. 1255.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 1322a(c)(2) of this title, referred to in subsec. (e)(4),
    was repealed and former section 1322a(c)(3) was redesignated
    section 1322a(c)(2) by Pub. L. 106-554, Sec. 1(a)(6) [title IX,
    Sec. 951(a)(3)], Dec. 21, 2000, 114 Stat. 2763, 2763A-586.

-FOOTNOTE-
    (!1) See References in Text note below.


-End-



-CITE-
    29 USC Sec. 1425                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle E - Special Provisions for Multiemployer Plans
    part 3 - reorganization; minimum contribution requirement for
              multiemployer plans                     

-HEAD-
    Sec. 1425. Adjustments in accrued benefits

-STATUTE-
    (a) Amendment of multiemployer plan in reorganization to reduce or
      eliminate accrued benefits attributable to employer contributions
      ineligible for guarantee of corporation; adjustment of vested
      benefits charge to reflect plan amendment
      (1) Notwithstanding sections 1053 and 1054 of this title, a
    multiemployer plan in reorganization may be amended in accordance
    with this section, to reduce or eliminate accrued benefits
    attributable to employer contributions which, under section
    1322a(b) of this title, are not eligible for the corporation's
    guarantee. The preceding sentence shall only apply to accrued
    benefits under plan amendments (or plans) adopted after March 26,
    1980, or under collective bargaining agreements entered into after
    March 26, 1980.
      (2) In determining the minimum contribution requirement with
    respect to a plan for a plan year under section 1423(b) of this
    title, the vested benefits charge may be adjusted to reflect a plan
    amendment reducing benefits under this section or section 412(c)(8)
    of title 26, but only if the amendment is adopted and effective no
    later than 2 1/2  months after the end of the plan year, or within
    such extended period as the Secretary of the Treasury may prescribe
    by regulation under section 412(c)(10) of title 26.
    (b) Reduction of accrued benefits; notice by plan sponsors to plan
      participants and beneficiaries
      (1) Accrued benefits may not be reduced under this section unless
    - 
        (A) notice has been given, at least 6 months before the first
      day of the plan year in which the amendment reducing benefits is
      adopted, to - 
          (i) plan participants and beneficiaries,
          (ii) each employer who has an obligation to contribute
        (within the meaning of section 1392(a) of this title) under the
        plan, and
          (iii) each employee organization which, for purposes of
        collective bargaining, represents plan participants employed by
        such an employer,

      that the plan is in reorganization and that, if contributions
      under the plan are not increased, accrued benefits under the plan
      will be reduced or an excise tax will be imposed on employers;

        (B) in accordance with regulations prescribed by the Secretary
      of the Treasury - 
          (i) any category of accrued benefits is not reduced with
        respect to inactive participants to a greater extent
        proportionally than such category of accrued benefits is
        reduced with respect to active participants,
          (ii) benefits attributable to employer contributions other
        than accrued benefits and the rate of future benefit accruals
        are reduced at least to an extent equal to the reduction in
        accrued benefits of inactive participants, and
          (iii) in any case in which the accrued benefit of a
        participant or beneficiary is reduced by changing the benefit
        form or the requirements which the participant or beneficiary
        must satisfy to be entitled to the benefit, such reduction is
        not applicable to - 
            (I) any participant or beneficiary in pay status on the
          effective date of the amendment, or the beneficiary of such a
          participant, or
            (II) any participant who has attained normal retirement
          age, or who is within 5 years of attaining normal retirement
          age, on the effective date of the amendment, or the
          beneficiary of any such participant; and

        (C) the rate of employer contributions for the plan year in
      which the amendment becomes effective and for all succeeding plan
      years in which the plan is in reorganization equals or exceeds
      the greater of - 
          (i) the rate of employer contributions, calculated without
        regard to the amendment, for the plan year in which the
        amendment becomes effective, or
          (ii) the rate of employer contributions for the plan year
        preceding the plan year in which the amendment becomes
        effective.

      (2) The plan sponsors shall include in any notice required to be
    sent to plan participants and beneficiaries under paragraph (1)
    information as to the rights and remedies of plan participants and
    beneficiaries as well as how to contact the Department of Labor for
    further information and assistance where appropriate.
    (c) Recoupment by plan of excess benefit payment
      A plan may not recoup a benefit payment which is in excess of the
    amount payable under the plan because of an amendment retroactively
    reducing accrued benefits under this section.
    (d) Amendment of plan to increase or restore accrued benefits
      previously reduced or rate of future benefit accruals;
      conditions, applicable factors, etc.
      (1)(A) A plan which has been amended to reduce accrued benefits
    under this section may be amended to increase or restore accrued
    benefits, or the rate of future benefit accruals, only if the plan
    is amended to restore levels of previously reduced accrued benefits
    of inactive participants and of participants who are within 5 years
    of attaining normal retirement age to at least the same extent as
    any such increase in accrued benefits or in the rate of future
    benefit accruals.
      (B) For purposes of this subsection, in the case of a plan which
    has been amended under this section to reduce accrued benefits - 
        (i) an increase in a benefit, or in the rate of future benefit
      accruals, shall be considered a benefit increase to the extent
      that the benefit, or the accrual rate, is thereby increased above
      the highest benefit level, or accrual rate, which was in effect
      under the terms of the plan before the effective date of the
      amendment reducing accrued benefits, and
        (ii) an increase in a benefit, or in the rate of future benefit
      accruals, shall be considered a benefit restoration to the extent
      that the benefit, or the accrual rate, is not thereby increased
      above the highest benefit level, or accrual rate, which was in
      effect under the terms of the plan immediately before the
      effective date of the amendment reducing accrued benefits.

      (2) If a plan is amended to partially restore previously reduced
    accrued benefit levels, or the rate of future benefit accruals, the
    benefits of inactive participants shall be restored in at least the
    same proportions as other accrued benefits which are restored.
      (3) No benefit increase under a plan may take effect in a plan
    year in which an amendment reducing accrued benefits under the
    plan, in accordance with this section, is adopted or first becomes
    effective.
      (4) A plan is not required to make retroactive benefit payments
    with respect to that portion of an accrued benefit which was
    reduced and subsequently restored under this section.
    (e) "Inactive participant" defined
      For purposes of this section, "inactive participant" means a
    person not in covered service under the plan who is in pay status
    under the plan or who has a nonforfeitable benefit under the plan.
    (f) Promulgation of rules; contents, etc.
      The Secretary of the Treasury may prescribe rules under which,
    notwithstanding any other provision of this section, accrued
    benefit reductions or benefit increases for different participant
    groups may be varied equitably to reflect variations in
    contribution rates and other relevant factors reflecting
    differences in negotiated levels of financial support for plan
    benefit obligations.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4244A, as added Pub. L. 96-364,
    title I, Sec. 104(2), Sept. 26, 1980, 94 Stat. 1257; amended Pub.
    L. 101-239, title VII, Sec. 7891(a)(1), Dec. 19, 1989, 103 Stat.
    2445.)


-MISC1-
                                AMENDMENTS                            
      1989 - Subsec. (a)(2). Pub. L. 101-239 substituted "Internal
    Revenue Code of 1986" for "Internal Revenue Code of 1954", which
    for purposes of codification was translated as "title 26" thus
    requiring no change in text.

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by Pub. L. 101-239 effective, except as otherwise
    provided, as if included in the provision of the Tax Reform Act of
    1986, Pub. L. 99-514, to which such amendment relates, see section
    7891(f) of Pub. L. 101-239, set out as a note under section 1002 of
    this title.

-End-



-CITE-
    29 USC Sec. 1426                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle E - Special Provisions for Multiemployer Plans
    part 3 - reorganization; minimum contribution requirement for
              multiemployer plans                     

-HEAD-
    Sec. 1426. Insolvent plans

-STATUTE-
    (a) Suspension of payments of benefits; conditions, amount, etc.
      Notwithstanding sections 1053 and 1054 of this title, in any case
    in which benefit payments under an insolvent multiemployer plan
    exceed the resource benefit level, any such payments of benefits
    which are not basic benefits shall be suspended, in accordance with
    this section, to the extent necessary to reduce the sum of such
    payments and the payments of such basic benefits to the greater of
    the resource benefit level or the level of basic benefits, unless
    an alternative procedure is prescribed by the corporation under
    section 1322a(g)(5) of this title.
    (b) Determination of insolvency status for plan year; definitions
      For purposes of this section, for a plan year - 
        (1) a multiemployer plan is insolvent if the plan's available
      resources are not sufficient to pay benefits under the plan when
      due for the plan year, or if the plan is determined to be
      insolvent under subsection (d) of this section;
        (2) "resource benefit level" means the level of monthly
      benefits determined under subsections (c)(1) and (3) and (d)(3)
      of this section to be the highest level which can be paid out of
      the plan's available resources;
        (3) "available resources" means the plan's cash, marketable
      assets, contributions, withdrawal liability payments, and
      earnings, less reasonable administrative expenses and amounts
      owed for such plan year to the corporation under section
      1431(b)(2) of this title; and
        (4) "insolvency year" means a plan year in which a plan is
      insolvent.
    (c) Determination by plan sponsor of plan in reorganization of
      resource benefit level of plan for each insolvency year; uniform
      application of suspension of benefits; adjustments of benefit
      payments
      (1) The plan sponsor of a plan in reorganization shall determine
    in writing the plan's resource benefit level for each insolvency
    year, based on the plan sponsor's reasonable projection of the
    plan's available resources and the benefits payable under the plan.
      (2) The suspension of benefit payments under this section shall,
    in accordance with regulations prescribed by the Secretary of the
    Treasury, apply in substantially uniform proportions to the
    benefits of all persons in pay status (within the meaning of
    section 1421(b)(6) of this title) under the plan, except that the
    Secretary of the Treasury may prescribe rules under which benefit
    suspensions for different participant groups may be varied
    equitably to reflect variations in contribution rates and other
    relevant factors including differences in negotiated levels of
    financial support for plan benefit obligations.
      (3) Notwithstanding paragraph (2), if a plan sponsor determines
    in writing a resource benefit level for a plan year which is below
    the level of basic benefits, the payment of all benefits other than
    basic benefits must be suspended for that plan year.
      (4)(A) If, by the end of an insolvency year, the plan sponsor
    determines in writing that the plan's available resources in that
    insolvency year could have supported benefit payments above the
    resource benefit level for that insolvency year, the plan sponsor
    shall distribute the excess resources to the participants and
    beneficiaries who received benefit payments from the plan in that
    insolvency year, in accordance with regulations prescribed by the
    Secretary of the Treasury.
      (B) For purposes of this paragraph, the term "excess resources"
    means available resources above the amount necessary to support the
    resource benefit level, but no greater than the amount necessary to
    pay benefits for the plan year at the benefit levels under the
    plan.
      (5) If, by the end of an insolvency year, any benefit has not
    been paid at the resource benefit level, amounts up to the resource
    benefit level which were unpaid shall be distributed to the
    participants and beneficiaries, in accordance with regulations
    prescribed by the Secretary of the Treasury, to the extent possible
    taking into account the plan's total available resources in that
    insolvency year.
      (6) Except as provided in paragraph (4) or (5), a plan is not
    required to make retroactive benefit payments with respect to that
    portion of a benefit which was suspended under this section.
    (d) Applicability and determinations respecting plan assets; time
      for determinations of resource benefit level and level of basic
      benefits
      (1) As of the end of the first plan year in which a plan is in
    reorganization, and at least every 3 plan years thereafter (unless
    the plan is no longer in reorganization), the plan sponsor shall
    compare the value of plan assets (determined in accordance with
    section 1423(b)(3)(B)(ii) of this title) for that plan year with
    the total amount of benefit payments made under the plan for that
    plan year. Unless the plan sponsor determines that the value of
    plan assets exceeds 3 times the total amount of benefit payments,
    the plan sponsor shall determine whether the plan will be insolvent
    in any of the next 3 plan years.
      (2) If, at any time, the plan sponsor of a plan in reorganization
    reasonably determines, taking into account the plan's recent and
    anticipated financial experience, that the plan's available
    resources are not sufficient to pay benefits under the plan when
    due for the next plan year, the plan sponsor shall make such
    determination available to interested parties.
      (3) The plan sponsor of a plan in reorganization shall determine
    in writing for each insolvency year the resource benefit level and
    the level of basic benefits no later than 3 months before the
    insolvency year.
    (e) Notice, etc., requirements of plan sponsor of plan in
      reorganization regarding insolvency and resource benefit levels
      (1) If the plan sponsor of a plan in reorganization determines
    under subsection (d)(1) or (2) of this section that the plan may
    become insolvent (within the meaning of subsection (b)(1) of this
    section), the plan sponsor shall - 
        (A) notify the Secretary of the Treasury, the corporation, the
      parties described in section 1422(a)(2) of this title, and the
      plan participants and beneficiaries of that determination, and
        (B) inform the parties described in section 1422(a)(2) of this
      title and the plan participants and beneficiaries that if
      insolvency occurs certain benefit payments will be suspended, but
      that basic benefits will continue to be paid.

      (2) No later than 2 months before the first day of each
    insolvency year, the plan sponsor of a plan in reorganization shall
    notify the Secretary of the Treasury, the corporation, and the
    parties described in paragraph (1)(B) of the resource benefit level
    determined in writing for that insolvency year.
      (3) In any case in which the plan sponsor anticipates that the
    resource benefit level for an insolvency year may not exceed the
    level of basic benefits, the plan sponsor shall notify the
    corporation.
      (4) Notice required by this subsection shall be given in
    accordance with regulations prescribed by the corporation, except
    that notice to the Secretary of the Treasury shall be given in
    accordance with regulations prescribed by the Secretary of the
    Treasury.
      (5) The corporation may prescribe a time other than the time
    prescribed by this section for the making of a determination or the
    filing of a notice under this section.
    (f) Financial assistance from corporation; conditions and criteria
      applicable
      (1) If the plan sponsor of an insolvent plan, for which the
    resource benefit level is above the level of basic benefits,
    anticipates that, for any month in an insolvency year, the plan
    will not have funds sufficient to pay basic benefits, the plan
    sponsor may apply for financial assistance from the corporation
    under section 1431 of this title.
      (2) A plan sponsor who has determined a resource benefit level
    for an insolvency year which is below the level of basic benefits
    shall apply for financial assistance from the corporation under
    section 1431 of this title.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4245, as added Pub. L. 96-364,
    title I, Sec. 104(2), Sept. 26, 1980, 94 Stat. 1259; amended Pub.
    L. 109-280, title II, Sec. 203(a), Aug. 17, 2006, 120 Stat. 886.)


-STATAMEND-
                      AMENDMENT OF SUBSECTION (D)(1)                  
      Pub. L. 109-280, title II, Sec. 203, Aug. 17, 2006, 120 Stat.
    886, provided that, applicable with respect to determinations made
    in plan years beginning after 2007, subsection (d)(1) of this
    section is amended by substituting "5 plan years" for "3 plan
    years" the second place it appears and by inserting at end "If the
    plan sponsor makes such a determination that the plan will be
    insolvent in any of the next 5 plan years, the plan sponsor shall
    make the comparison under this paragraph at least annually until
    the plan sponsor makes a determination that the plan will not be
    insolvent in any of the next 5 plan years."


-MISC1-
                     EFFECTIVE DATE OF 2006 AMENDMENT                 
      Pub. L. 109-280, title II, Sec. 203(b), Aug. 17, 2006, 120 Stat.
    886, provided that: "The amendments made by this section [amending
    this section] shall apply with respect to determinations made in
    plan years beginning after 2007."

     WITHDRAWAL LIABILITY OF EMPLOYER FROM PLAN TERMINATING WHILE PLAN
       INSOLVENT WITHIN THIS SECTION: DETERMINATIONS, FACTORS, ETC.
      Section 108(c)(3) of Pub. L. 96-364 provided that:
      "(A) For the purpose of determining the withdrawal liability of
    an employer under title IV of the Employee Retirement Income
    Security Act of 1974 [this subchapter] from a plan that terminates
    while the plan is insolvent (within the meaning of section 4245 of
    such Act [this section]), the plan's unfunded vested benefits shall
    be reduced by an amount equal to the sum of all overburden credits
    that were applied in determining the plan's accumulated funding
    deficiency for all plan years preceding the first plan year in
    which the plan is insolvent, plus interest thereon.
      "(B) The provisions of subparagraph (A) apply only if - 
        "(i) the plan would have been eligible for the overburden
      credit in the last plan year beginning before the date of the
      enactment of this Act [Sept. 26, 1980], if section 4243 of the
      Employee Retirement Income Security Act of 1974 [section 1423 of
      this title] had been in effect for that plan year, and
        "(ii) the Pension Benefit Guaranty Corporation determines that
      the reduction of unfunded vested benefits under subparagraph (A)
      would not significantly increase the risk of loss to the
      corporation."

-End-


-CITE-
    29 USC part 4 - financial assistance                        01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle E - Special Provisions for Multiemployer Plans
    part 4 - financial assistance

-HEAD-
                       PART 4 - FINANCIAL ASSISTANCE                   

-End-



-CITE-
    29 USC Sec. 1431                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle E - Special Provisions for Multiemployer Plans
    part 4 - financial assistance

-HEAD-
    Sec. 1431. Assistance by corporation

-STATUTE-
    (a) Authority; procedure applicable; amount
      If, upon receipt of an application for financial assistance under
    section 1426(f) of this title or section 1441(d) of this title, the
    corporation verifies that the plan is or will be insolvent and
    unable to pay basic benefits when due, the corporation shall
    provide the plan financial assistance in an amount sufficient to
    enable the plan to pay basic benefits under the plan.
    (b) Conditions; repayment terms
      (1) Financial assistance shall be provided under such conditions
    as the corporation determines are equitable and are appropriate to
    prevent unreasonable loss to the corporation with respect to the
    plan.
      (2) A plan which has received financial assistance shall repay
    the amount of such assistance to the corporation on reasonable
    terms consistent with regulations prescribed by the corporation.
    (c) Assistance pending final determination of application
      Pending determination of the amount described in subsection (a)
    of this section, the corporation may provide financial assistance
    in such amounts as it considers appropriate in order to avoid undue
    hardship to plan participants and beneficiaries.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4261, as added Pub. L. 96-364,
    title I, Sec. 104(2), Sept. 26, 1980, 94 Stat. 1261.)


-MISC1-
                              EFFECTIVE DATE                          
      Part effective Sept. 26, 1980, except as specifically provided,
    see section 1461(e) of this title.

-End-


-CITE-
    29 USC part 5 - benefits after termination                  01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle E - Special Provisions for Multiemployer Plans
    part 5 - benefits after termination

-HEAD-
                    PART 5 - BENEFITS AFTER TERMINATION                

-End-



-CITE-
    29 USC Sec. 1441                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle E - Special Provisions for Multiemployer Plans
    part 5 - benefits after termination

-HEAD-
    Sec. 1441. Benefits under certain terminated plans

-STATUTE-
    (a) Amendment of plan by plan sponsor to reduce benefits, and
      suspension of benefit payments
      Notwithstanding sections 1053 and 1054 of this title, the plan
    sponsor of a terminated multiemployer plan to which section
    1341a(d) of this title applies shall amend the plan to reduce
    benefits, and shall suspend benefit payments, as required by this
    section.
    (b) Determinations respecting value of nonforfeitable benefits
      under terminated plan and value of assets of plan
      (1) The value of nonforfeitable benefits under a terminated plan
    referred to in subsection (a) of this section, and the value of the
    plan's assets, shall be determined in writing, in accordance with
    regulations prescribed by the corporation, as of the end of the
    plan year during which section 1341a(d) of this title becomes
    applicable to the plan, and each plan year thereafter.
      (2) For purposes of this section, plan assets include outstanding
    claims for withdrawal liability (within the meaning of section
    1301(a)(12) of this title).
    (c) Amendment of plan by plan sponsor to reduce benefits for
      conservation of assets; factors applicable
      (1) If, according to the determination made under subsection (b)
    of this section, the value of nonforfeitable benefits exceeds the
    value of the plan's assets, the plan sponsor shall amend the plan
    to reduce benefits under the plan to the extent necessary to ensure
    that the plan's assets are sufficient, as determined and certified
    in accordance with regulations prescribed by the corporation, to
    discharge when due all of the plan's obligations with respect to
    nonforfeitable benefits.
      (2) Any plan amendment required by this subsection shall, in
    accordance with regulations prescribed by the Secretary of the
    Treasury - 
        (A) reduce benefits only to the extent necessary to comply with
      paragraph (1);
        (B) reduce accrued benefits only to the extent that those
      benefits are not eligible for the corporation's guarantee under
      section 1322a(b) of this title;
        (C) comply with the rules for and limitations on benefit
      reductions under a plan in reorganization, as prescribed in
      section 1425 of this title, except to the extent that the
      corporation prescribes other rules and limitations in regulations
      under this section; and
        (D) take effect no later than 6 months after the end of the
      plan year for which it is determined that the value of
      nonforfeitable benefits exceeds the value of the plan's assets.
    (d) Suspension of benefit payments; determinative factors; powers
      and duties of plan sponsor; retroactive benefit payments
      (1) In any case in which benefit payments under a plan which is
    insolvent under paragraph (2)(A) exceed the resource benefit level,
    any such payments which are not basic benefits shall be suspended,
    in accordance with this subsection, to the extent necessary to
    reduce the sum of such payments and such basic benefits to the
    greater of the resource benefit level or the level of basic
    benefits, unless an alternative procedure is prescribed by the
    corporation in connection with a supplemental guarantee program
    established under section 1322a(g)(2) of this title.
      (2) For purposes of this subsection, for a plan year - 
        (A) a plan is insolvent if - 
          (i) the plan has been amended to reduce benefits to the
        extent permitted by subsection (c) of this section, and
          (ii) the plan's available resources are not sufficient to pay
        benefits under the plan when due for the plan year; and

        (B) "resource benefit level" and "available resources" have the
      meanings set forth in paragraphs (2) and (3), respectively, of
      section 1426(b) of this title.

      (3) The plan sponsor of a plan which is insolvent (within the
    meaning of paragraph (2)(A)) shall have the powers and duties of
    the plan sponsor of a plan in reorganization which is insolvent
    (within the meaning of section 1426(b)(1) of this title), except
    that regulations governing the plan sponsor's exercise of those
    powers and duties under this section shall be prescribed by the
    corporation, and the corporation shall prescribe by regulation
    notice requirements which assure that plan participants and
    beneficiaries receive adequate notice of benefit suspensions.
      (4) A plan is not required to make retroactive benefit payments
    with respect to that portion of a benefit which was suspended under
    this subsection, except that the provisions of section 1426(c)(4)
    and (5) of this title shall apply in the case of plans which are
    insolvent under paragraph (2)(A), in connection with the plan year
    during which such section 1341a(d) of this title first became
    applicable to the plan and every year thereafter, in the same
    manner and to the same extent as such provisions apply to insolvent
    plans in reorganization under section 1426 of this title, in
    connection with insolvency years under such section 1426 of this
    title.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4281, as added Pub. L. 96-364,
    title I, Sec. 104(2), Sept. 26, 1980, 94 Stat. 1261.)


-MISC1-
                              EFFECTIVE DATE                          
      Part effective Sept. 26, 1980, except as specifically provided,
    see section 1461(e) of this title.

-End-


-CITE-
    29 USC part 6 - enforcement                                 01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle E - Special Provisions for Multiemployer Plans
    part 6 - enforcement

-HEAD-
                           PART 6 - ENFORCEMENT                       

-End-



-CITE-
    29 USC Sec. 1451                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle E - Special Provisions for Multiemployer Plans
    part 6 - enforcement

-HEAD-
    Sec. 1451. Civil actions

-STATUTE-
    (a) Persons entitled to maintain actions
      (1) A plan fiduciary, employer, plan participant, or beneficiary,
    who is adversely affected by the act or omission of any party under
    this subtitle with respect to a multiemployer plan, or an employee
    organization which represents such a plan participant or
    beneficiary for purposes of collective bargaining, may bring an
    action for appropriate legal or equitable relief, or both.
      (2) Notwithstanding paragraph (1), this section does not
    authorize an action against the Secretary of the Treasury, the
    Secretary of Labor, or the corporation.
    (b) Failure of employer to make withdrawal liability payment within
      prescribed time
      In any action under this section to compel an employer to pay
    withdrawal liability, any failure of the employer to make any
    withdrawal liability payment within the time prescribed shall be
    treated in the same manner as a delinquent contribution (within the
    meaning of section 1145 of this title).
    (c) Jurisdiction of Federal and State courts
      The district courts of the United States shall have exclusive
    jurisdiction of an action under this section without regard to the
    amount in controversy, except that State courts of competent
    jurisdiction shall have concurrent jurisdiction over an action
    brought by a plan fiduciary to collect withdrawal liability.
    (d) Venue and service of process
      An action under this section may be brought in the district where
    the plan is administered or where a defendant resides or does
    business, and process may be served in any district where a
    defendant resides, does business, or may be found.
    (e) Costs and expenses
      In any action under this section, the court may award all or a
    portion of the costs and expenses incurred in connection with such
    action, including reasonable attorney's fees, to the prevailing
    party.
    (f) Time limitations
      An action under this section may not be brought after the later
    of - 
        (1) 6 years after the date on which the cause of action arose,
      or
        (2) 3 years after the earliest date on which the plaintiff
      acquired or should have acquired actual knowledge of the
      existence of such cause of action; except that in the case of
      fraud or concealment, such action may be brought not later than 6
      years after the date of discovery of the existence of such cause
      of action.
    (g) Service of complaint on corporation; intervention by
      corporation
      A copy of the complaint in any action under this section or
    section 1401 of this title shall be served upon the corporation by
    certified mail. The corporation may intervene in any such action.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4301, as added Pub. L. 96-364,
    title I, Sec. 104(2), Sept. 26, 1980, 94 Stat. 1263.)


-MISC1-
                              EFFECTIVE DATE                          
      Part effective Sept. 26, 1980, except as specifically provided,
    see section 1461(e) of this title.

-End-



-CITE-
    29 USC Sec. 1452                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle E - Special Provisions for Multiemployer Plans
    part 6 - enforcement

-HEAD-
    Sec. 1452. Penalty for failure to provide notice

-STATUTE-
      Any person who fails, without reasonable cause, to provide a
    notice required under this subtitle or any implementing regulations
    shall be liable to the corporation in an amount up to $100 for each
    day for which such failure continues. The corporation may bring a
    civil action against any such person in the United States District
    Court for the District of Columbia or in any district court of the
    United States within the jurisdiction of which the plan assets are
    located, the plan is administered, or a defendant resides or does
    business, and process may be served in any district where a
    defendant resides, does business, or may be found.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4302, as added Pub. L. 96-364,
    title I, Sec. 104(2), Sept. 26, 1980, 94 Stat. 1263.)

-End-



-CITE-
    29 USC Sec. 1453                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle E - Special Provisions for Multiemployer Plans
    part 6 - enforcement

-HEAD-
    Sec. 1453. Election of plan status

-STATUTE-
    (a) Authority, time, and criteria
      Within one year after September 26, 1980, a multiemployer plan
    may irrevocably elect, pursuant to procedures established by the
    corporation, that the plan shall not be treated as a multiemployer
    plan for any purpose under this chapter or the Internal Revenue
    Code of 1954, if for each of the last 3 plan years ending prior to
    the effective date of the Multiemployer Pension Plan Amendments Act
    of 1980 - 
        (1) the plan was not a multiemployer plan because the plan was
      not a plan described in section 1002(37)(A)(iii) of this title
      and section 414(f)(1)(C) of title 26 (as such provisions were in
      effect on the day before September 26, 1980); and
        (2) the plan had been identified as a plan that was not a
      multiemployer plan in substantially all its filings with the
      corporation, the Secretary of Labor and the Secretary of the
      Treasury.
    (b) Requirements
      An election described in subsection (a) of this section shall be
    effective only if - 
        (1) the plan is amended to provide that it shall not be treated
      as a multiemployer plan for all purposes under this chapter and
      the Internal Revenue Code of 1954, and
        (2) written notice of the amendment is provided to the
      corporation within 60 days after the amendment is adopted.
    (c) Effective date
      An election described in subsection (a) of this section shall be
    treated as being effective as of September 26, 1980.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4303, as added Pub. L. 96-364,
    title I, Sec. 108(f), Sept. 26, 1980, 94 Stat. 1270.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This chapter, referred to in subsecs. (a) and (b)(1), was in the
    original "this Act", meaning Pub. L. 93-406, known as the Employee
    Retirement Income Security Act of 1974. Titles I, III, and IV of
    such Act are classified principally to this chapter. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 1001 of this title and Tables.
      The Internal Revenue Code of 1954, referred to in subsecs. (a)
    and (b)(1), was redesignated the Internal Revenue Code of 1986 by
    Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, and is
    classified to Title 26, Internal Revenue Code.
      For the effective date of the Multiemployer Pension Plan
    Amendments Act of 1980, referred to in subsec. (a), see section
    1461(e) of this title.

-End-


-CITE-
    29 USC Subtitle F - Transition Rules and Effective Dates    01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle F - Transition Rules and Effective Dates

-HEAD-
             SUBTITLE F - TRANSITION RULES AND EFFECTIVE DATES         


-MISC1-
                                AMENDMENTS                            
      1980 - Pub. L. 96-364, title I, Sec. 104(1), Sept. 26, 1980, 94
    Stat. 1217, substituted "Subtitle F - Transition Rules and
    Effective Dates" for "Subtitle E - Effective Date; Special Rules".

-End-



-CITE-
    29 USC Sec. 1461                                            01/03/2007

-EXPCITE-
    TITLE 29 - LABOR
    CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
    SUBCHAPTER III - PLAN TERMINATION INSURANCE
    Subtitle F - Transition Rules and Effective Dates

-HEAD-
    Sec. 1461. Effective date; special rules

-STATUTE-
      (a) The provisions of this subchapter take effect on September 2,
    1974.
      (b) Notwithstanding the provisions of subsection (a) of this
    section, the corporation shall pay benefits guaranteed under this
    subchapter with respect to any plan - 
        (1) which is not a multiemployer plan,
        (2) which terminates after June 30, 1974, and before September
      2, 1974,
        (3) to which section 1321 of this title would apply if that
      section were effective beginning on July 1, 1974, and
        (4) with respect to which a notice is filed with the Secretary
      of Labor and received by him not later than 10 days after
      September 2, 1974, except that, for reasonable cause shown, such
      notice may be filed with the Secretary of Labor and received by
      him not later than October 31, 1974, stating that the plan is a
      plan described in paragraphs (1), (2), and (3).

    The corporation shall not pay benefits guaranteed under this
    subchapter with respect to a plan described in the preceding
    sentence unless the corporation finds substantial evidence that the
    plan was terminated for a reasonable business purpose and not for
    the purpose of obtaining the payment of benefits by the corporation
    under this subchapter or for the purpose of avoiding the liability
    which might be imposed under subtitle D of this subchapter if the
    plan terminated on or after September 2, 1974. The provisions of
    subtitle D of this subchapter do not apply in the case of such a
    plan which terminates before September 2, 1974. For purposes of
    determining whether a plan is a plan described in paragraph (2),
    the provisions of section 1348 of this title shall not apply, but
    the corporation shall make the determination on the basis of the
    date on which benefits ceased to accrue or on any other reasonable
    basis consistent with the purposes of this subsection.
      (c)(1) Except as provided in paragraphs (2), (3), and (4), the
    corporation shall not pay benefits guaranteed under this subchapter
    with respect to a multiemployer plan which terminates before August
    1, 1980. Whenever the corporation exercises the authority granted
    under paragraph (2) or (3), the corporation shall notify the
    Committee on Education and Labor and the Committee on Ways and
    Means of the House of Representatives, and the Committee on Labor
    and Public Welfare and the Committee on Finance of the Senate.
      (2) The corporation may, in its discretion, pay benefits
    guaranteed under this subchapter with respect to a multiemployer
    plan which terminates after September 2, 1974 and before August 1,
    1980, if - 
        (A) the plan was maintained during the 60 months immediately
      preceding the date on which the plan terminates, and
        (B) the corporation determines that the payment by the
      corporation of benefits guaranteed under this subchapter with
      respect to that plan will not jeopardize the payments the
      corporation anticipates it may be required to make in connection
      with benefits guaranteed under this subchapter with respect to
      multiemployer plans which terminate after July 31, 1980.

      (3) Notwithstanding any provision of section 1321 or 1322 of this
    title which would prevent such payments, the corporation, in
    carrying out its authority under paragraph (2), may pay benefits
    guaranteed under this subchapter with respect to a multiemployer
    plan described in paragraph (2) in any case in which those benefits
    would otherwise not be payable if - 
        (A) the plan has been in effect for at least 5 years,
        (B) the plan has been in substantial compliance with the
      funding requirements for a qualified plan with respect to the
      employees and former employees in those employment units on the
      basis of which the participating employers have contributed to
      the plan for the preceding 5 years, and
        (C) the participating employers and employee organization or
      organizations had no reasonable recourse other than termination.

      (4) If the corporation determines, under paragraph (2) or (3),
    that it will pay benefits guaranteed under this subchapter with
    respect to a multiemployer plan which terminates before August 1,
    1980, the corporation - 
        (A) may establish requirements for the continuation of payments
      which commenced before January 2, 1974, with respect to retired
      participants under the plan,
        (B) may not, notwithstanding any other provision of this
      subchapter, make payments with respect to any participant under
      such a plan who, on January 1, 1974, was receiving payment of
      retirement benefits, in excess of the amounts and rates payable
      with respect to such participant on that date,
        (C) may not make any payments with respect to benefits
      guaranteed under this subchapter in connection with such a plan
      which are derived, directly or indirectly, from amounts borrowed
      under section 1305(c) of this title, and
        (D) shall review from time to time payments made under the
      authority granted to it by paragraphs (2) and (3), and reduce or
      terminate such payments to the extent necessary to avoid
      jeopardizing the ability of the corporation to make payments of
      benefits guaranteed under this subchapter in connection with
      multiemployer plans which terminate after July 31, 1980, without
      increasing premium rates for such plans.

      (d) Notwithstanding any other provision of this subchapter,
    guaranteed benefits payable by the corporation pursuant to its
    discretionary authority under this section shall continue to be
    paid at the level guaranteed under section 1322 of this title,
    without regard to any limitation on payment under subparagraph (C)
    or (D) of subsection (c)(4) of this section.
      (e)(1) Except as provided in paragraphs (2), (3), and (4), the
    amendments to this chapter made by the Multiemployer Pension Plan
    Amendments Act of 1980 shall take effect on September 26, 1980.
      (2)(A) Except as provided in this paragraph, part 1 of subtitle E
    of this subchapter, relating to withdrawal liability, takes effect
    on September 26, 1980.
      (B) For purposes of determining withdrawal liability under part 1
    of subtitle E of this subchapter, an employer who has withdrawn
    from a plan shall be considered to have withdrawn from a
    multiemployer plan if, at the time of the withdrawal, the plan was
    a multiemployer plan as defined in section 1301(a)(3) of this title
    as in effect at the time of the withdrawal.
      (3) Sections 1421 through 1426 of this title, relating to
    multiemployer plan reorganization, shall take effect, with respect
    to each plan, on the first day of the first plan year beginning on
    or after the earlier of - 
        (A) the date on which the last collective bargaining agreement
      providing for employer contributions under the plan, which was in
      effect on September 26, 1980, expires, without regard to
      extensions agreed to on or after September 26, 1980, or
        (B) 3 years after September 26, 1980.

      (4) Section 1415 of this title shall take effect on September 26,
    1980.
      (f)(1) In the event that before September 26, 1980, the
    corporation has determined that - 
        (A) an employer has withdrawn from a multiemployer plan under
      section 1363 of this title, and
        (B) the employer is liable to the corporation under such
      section,

    the corporation shall retain the amount of liability paid to it or
    furnished in the form of a bond and shall pay such liability to the
    plan in the event the plan terminates in accordance with section
    1341a(a)(2) of this title before the earlier of September 26, 1985,
    or the day after the 5-year period commencing on the date of such
    withdrawal.
      (2) In any case in which the plan is not so terminated within the
    period described in paragraph (1), the liability of the employer is
    abated and any payment held in escrow shall be refunded without
    interest to the employer or the employer's bond shall be cancelled.
      (g)(1) In any case in which an employer or employers withdrew
    from a multiemployer plan before the effective date of part 1 of
    subtitle E of this subchapter, the corporation may - 
        (A) apply section 1363(d) of this title, as in effect before
      the amendments made by the Multiemployer Pension Plan Amendments
      Act of 1980, to such plan,
        (B) assess liability against the withdrawn employer with
      respect to the resulting terminated plan,
        (C) guarantee benefits under the terminated plan under section
      1322 of this title, as in effect before such amendments, and
        (D) if necessary, enforce such action through suit brought
      under section 1303 of this title.

      (2) The corporation shall use the revolving fund used by the
    corporation with respect to basic benefits guaranteed under section
    1322a of this title in guaranteeing benefits under a terminated
    plan described in this subsection.
      (h)(1) In the case of an employer who entered into a collective
    bargaining agreement - 
        (A) which was effective on January 12, 1979, and which remained
      in effect through May 15, 1982, and
        (B) under which contributions to a multiemployer plan were to
      cease on January 12, 1982,

    any withdrawal liability incurred by the employer pursuant to part
    1 of subtitle E of this subchapter as a result of the complete or
    partial withdrawal of the employer from the multiemployer plan
    before January 16, 1982, shall be void.
      (2) In any case in which - 
        (A) an employer engaged in the grocery wholesaling business - 
          (i) had ceased all covered operations under a multiemployer
        plan before June 30, 1981, and had relocated its operations to
        a new facility in another State, and
          (ii) had notified a local union representative on May 14,
        1980, that the employer had tentatively decided to discontinue
        operations and relocate to a new facility in another State, and

        (B) all State and local approvals with respect to construction
      of and commencement of operations at the new facility had been
      obtained, a contract for construction had been entered into, and
      construction of the new facility had begun before September 26,
      1980,

    any withdrawal liability incurred by the employer pursuant to part
    1 of subtitle E of this subchapter as a result of the complete or
    partial withdrawal of the employer from the multiemployer plan
    before June 30, 1981, shall be void.
      (i) The preceding provisions of this section shall not apply with
    respect to amendments made to this subchapter in provisions enacted
    after October 22, 1986.

-SOURCE-
    (Pub. L. 93-406, title IV, Sec. 4402, formerly Sec. 4082, Sept. 2,
    1974, 88 Stat. 1034; S. Res. 4, Feb. 4, 1977; Pub. L. 95-214, Sec.
    1, Dec. 19, 1977, 91 Stat. 1501; S. Res. 30, Mar. 7, 1979; Pub. L.
    96-24, June 19, 1979, 93 Stat. 70; Pub. L. 96-239, Apr. 30, 1980,
    94 Stat. 341; Pub. L. 96-293, Sec. 1, June 30, 1980, 94 Stat. 610;
    renumbered and amended Pub. L. 96-364, title I, Sec. 108(a)-(c)(1),
    Sept. 26, 1980, 94 Stat. 1267; Pub. L. 98-369, div. A, title V,
    Sec. 558(b)(1)(B), (C), July 18, 1984, 98 Stat. 899; Pub. L. 99-
    514, title XVIII, Sec. 1852(i), Oct. 22, 1986, 100 Stat. 2869;
    Pub. L. 101-239, title VII, Secs. 7862(a), 7894(h)(5)(A), Dec. 19,
    1989, 103 Stat. 2431, 2451.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This chapter, referred to in subsec. (e)(1), was in the original
    "this Act", meaning Pub. L. 93-406, known as the Employee
    Retirement Income Security Act of 1974. Titles I, III, and IV of
    such Act are classified principally to this chapter. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 1001 of this title and Tables.
      The Multiemployer Pension Plan Amendments Act of 1980, referred
    to in subsecs. (e)(1) and (g)(1)(A), is Pub. L. 96-364, Sept. 26,
    1980, 94 Stat. 1208. For complete classification of this Act to the
    Code, see Short Title of 1980 Amendment note set out under section
    1001 of this title and Tables.
      For the effective date of part 1 of subtitle E of this
    subchapter, referred to in subsec. (g)(1), see subsec. (e)(2) of
    this section.

-COD-
                               CODIFICATION                           
      Section was formerly classified to section 1381 of this title.


-MISC1-
                                AMENDMENTS                            
      1989 - Subsec. (h)(1). Pub. L. 101-239, Sec. 7862(a), substituted
    "before January 16, 1982" for "before January 12, 1982" in
    concluding provisions.
      Subsec. (i). Pub. L. 101-239, Sec. 7894(h)(5)(A), added subsec.
    (i).
      1986 - Subsec. (h). Pub. L. 99-514 added subsec. (h).
      1984 - Subsec. (e)(2)(A), (4). Pub. L. 98-369, Sec. 558(b)(1)(B),
    substituted "September 26, 1980" for "April 29, 1980".
      Subsec. (f)(1). Pub. L. 98-369, Sec. 558(b)(1)(C), substituted
    "September 26, 1985" for "April 29, 1985".
      1980 - Subsec. (c)(1). Pub. L. 96-293, Sec. 1(1), substituted
    "August 1, 1980" for "July 1, 1980".
      Pub. L. 96-239, Sec. 1(1), substituted "July 1, 1980" for "May 1,
    1980".
      Subsec. (c)(2). Pub. L. 96-293, Sec. 1(1), (2), substituted
    "August 1, 1980" for "July 1, 1980" in provisions preceding subpar.
    (A) and "July 31, 1980" for "June 30, 1980" in subpar. (B).
      Pub. L. 96-239, Sec. 1(1), (2), substituted "July 1, 1980" for
    "May 1, 1980" in provisions preceding subpar. (A) and "June 30,
    1980" for "April 30, 1980" in subpar. (B).
      Subsec. (c)(4). Pub. L. 96-293, Sec. 1(1), (2), substituted
    "August 1, 1980" for "July 1, 1980" in provisions preceding subpar.
    (A) and "July 31, 1980" for "June 30, 1980" in subpar. (D).
      Pub. L. 96-239, Sec. 1(1), (2), substituted "July 1, 1980" for
    "May 1, 1980" in provisions preceding subpar. (A) and "June 30,
    1980" for "April 30, 1980" in subpar. (D).
      Subsec. (d). Pub. L. 96-364, Sec. 108(b), added subsec. (d).
    Former subsec. (d), which related to report to Congressional
    committees respecting anticipated financial condition of program
    for mandatory coverage of multiemployer plans, was struck out.
      Subsec. (e). Pub. L. 96-364, Sec. 108(c)(1), added subsec. (e).
    Former subsec. (e), which related to annual insurance premium
    payable to Corporation for coverage of guaranteed basic benefits,
    was struck out.
      Subsecs. (f), (g). Pub. L. 96-364, Sec. 108(c)(1), added subsecs.
    (f) and (g).
      1979 - Subsec. (c)(1). Pub. L. 96-24, Sec. 1(1), substituted "May
    1, 1980" for "July 1, 1979".
      Subsec. (c)(2). Pub. L. 96-24, Sec. 1(1), (2), substituted "May
    1, 1980" for "July 1, 1979" in provisions preceding subpar. (A) and
    "April 30, 1980" for "June 30, 1979" in subpar. (B).
      Subsec. (c)(4). Pub. L. 96-24, Sec. 1(1), (2), substituted "May
    1, 1980" for "July 1, 1979" in provisions preceding subpar. (A) and
    "April 30, 1980" for "June 30, 1979" in subpar. (D).
      1977 - Subsec. (c)(1). Pub. L. 95-214, Sec. 1(a)(1), substituted
    "July 1, 1979" for "January 1, 1978".
      Subsec. (c)(2). Pub. L. 95-214, Sec. 1(a)(2), substituted "July
    1, 1979" for "January 1, 1978" in provisions preceding subpar. (A).
      Subsec. (c)(2)(B). Pub. L. 95-214, Sec. 1(a)(3), substituted
    "June 30, 1979" for "December 31, 1977".
      Subsec. (c)(4). Pub. L. 95-214, Sec. 1(a)(4), substituted "July
    1, 1979" for "January 1, 1978" in provisions preceding subpar. (A).
      Subsec. (c)(4)(D). Pub. L. 95-214, Sec. 1(a)(5), substituted
    "June 30, 1979" for "December 31, 1977".
      Subsecs. (d), (e). Pub. L. 95-214, Sec. 1(b), added subsecs. (d)
    and (e).

-CHANGE-
                              CHANGE OF NAME                          
      Committee on Education and Labor of House of Representatives
    treated as referring to Committee on Economic and Educational
    Opportunities of House of Representatives by section 1(a) of Pub.
    L. 104-14, set out as a note preceding section 21 of Title 2, The
    Congress. Committee on Economic and Educational Opportunities of
    House of Representatives changed to Committee on Education and the
    Workforce of House of Representatives by House Resolution No. 5,
    One Hundred Fifth Congress, Jan. 7, 1997.
      Committee on Labor and Public Welfare of Senate abolished and
    replaced by Committee on Human Resources of Senate, effective Feb.
    11, 1977. See Rule XXV of Standing Rules of Senate, as amended by
    Senate Resolution No. 4 (popularly cited as the "Committee System
    Reorganization Amendments of 1977"), approved Feb. 4, 1977.
    Committee on Human Resources of Senate changed to Committee on
    Labor and Human Resources of Senate, effective Mar. 7, 1979, by
    Senate Resolution No. 30, 96th Congress. See, also, Rule XXV of
    Standing Rules of Senate adopted Nov. 14, 1979. Committee on Labor
    and Human Resources of Senate changed to Committee on Health,
    Education, Labor, and Pensions of Senate by Senate Resolution No.
    20, One Hundred Sixth Congress, Jan. 19, 1999.


-MISC2-
                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Amendment by section 7862(a) of Pub. L. 101-239 effective as if
    included in the provision of the Tax Reform Act of 1986, Pub. L. 99-
    514, to which such amendment relates, see section 7863 of Pub. L.
    101-239, set out as a note under section 106 of Title 26, Internal
    Revenue Code.
      Section 7894(h)(5)(B) of Pub. L. 101-239 provided that: "The
    amendment made by subparagraph (A) [amending this section] shall
    take effect as if originally included in the Reform Act [Pub. L. 99-
    514]."

                     EFFECTIVE DATE OF 1986 AMENDMENT                 
      Amendment by Pub. L. 99-514 effective, except as otherwise
    provided, as if included in the provisions of the Tax Reform Act of
    1984, Pub. L. 98-369, div. A, to which such amendment relates, see
    section 1881 of Pub. L. 99-514, set out as a note under section 48
    of Title 26, Internal Revenue Code.

            PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989        
      For provisions directing that if any amendments made by subtitle
    A or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or
    title XVIII [Secs. 1800-1899A] of Pub. L. 99-514 require an
    amendment to any plan, such plan amendment shall not be required to
    be made before the first plan year beginning on or after Jan. 1,
    1989, see section 1140 of Pub. L. 99-514, as amended, set out as a
    note under section 401 of Title 26, Internal Revenue Code.

              ACTIONS TAKEN BEFORE REGULATIONS ARE PRESCRIBED          
      Section 405 of Pub. L. 96-364 provided that:
      "(a) Except as otherwise provided in the amendments made by this
    Act [see Short Title of 1980 Amendment note set out under section
    1001 of this title] and in subsection (b), if the way in which any
    such amendment will apply to a particular circumstance is to be set
    forth in regulations, any reasonable action during the period
    before such regulations take effect shall be treated as complying
    with such regulations for such period.
      "(b) Subsection (a) shall not apply to any action which violates
    any instruction issued, or temporary rule prescribed, by the agency
    having jurisdiction but only if such instruction or rule was
    published, or furnished to the party taking the action, before such
    action was taken."

-End-