Page 555 TITLE 29—LABOR § 1393

vide 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.

(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(e) Reduction of liability of withdrawn employer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or partial withdrawal, the withdrawn employer’s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.

(Pub. L. 93–406, title IV, §4211, as added Pub. L.

96–364, title I, §104(2), Sept. 26, 1980, 94 Stat. 1226;

amended Pub. L. 98–369, div. A, title V,

§558(b)(1)(A), (B), July 18, 1984, 98 Stat. 899; Pub.

L. 101–239, title VII, §7891(a)(1), Dec. 19, 1989, 103

Stat. 2445.)

AMENDMENTS

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, §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, §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 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.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1381, 1386, 1389,

1394, 1399, 1400, 1401, 1415 of this title.

§ 1392. Obligation to contribute

(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.

(Pub. L. 93–406, title IV, §4212, as added Pub. L.

96–364, title I, §104(2), Sept. 26, 1980, 94 Stat.

1233.)

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1342, 1401, 1425

of this title; title 26 sections 418A, 418D.

§ 1393. Actuarial assumptions

(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 pur-