§ 1394 TITLE 29—LABOR Page 556

poses 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.

(Pub. L. 93–406, title IV, §4213, as added Pub. L.

96–364, title I, §104(2), Sept. 26, 1980, 94 Stat. 1233;

amended Pub. L. 101–239, title VII, §7891(a)(1),

Dec. 19, 1989, 103 Stat. 2445.)

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.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1401 of this title.

§ 1394. Application of plan amendments; exception

(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.

(Pub. L. 93–406, title IV, §4214, as added Pub. L.

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

1234.)

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1401 of this title.

§ 1395. Plan notification to corporation of potentially significant withdrawals

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.

(Pub. L. 93–406, title IV, §4215, as added Pub. L.

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

1234.)

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1401 of this title.

§ 1396. Special rules for plans under section

404(c) of title 26

(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