§ 1343 TITLE 29—LABOR Page 526

Subsec. (a)(2). Pub. L. 99–272, §11010(a)(1)(A), substituted ‘‘will be’’ for ‘‘is’’.

Subsec. (b)(1). Pub. L. 99–272, §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, §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, §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, §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, §11010(b), added subsec. (i).

1980—Subsec. (a). Pub. L. 96–364, §402(a)(6)(A), substituted ‘‘terminated plans’’ for ‘‘such small plans’’.

Subsec. (b). Pub. L. 96–364, §402(a)(6)(B), redesignated

existing provisions as par. (1) and added pars. (2) and

(3).

Subsec. (c). Pub. L. 96–364, §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, §402(a)(6)(E), added

cls. (v) and (vii) and redesignated former cl. (v) as (vi).

Subsec. (d)(1)(B). Pub. L. 96–364, §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,

§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 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, §§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.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1103, 1104, 1303,

1305, 1307, 1341, 1344, 1347, 1348, 1350, 1362, 1363, 1364, 1370,

1413 of this title.

§ 1343. Reportable events

(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.
Page 527 TITLE 29—LABOR § 1343

1See References in Text note below.

(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 1322(b)(6) 1 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.

(Pub. L. 93–406, title IV, §4043, Sept. 2, 1974, 88

Stat. 1024; Pub. L. 101–239, title VII, §7891(a),

Dec. 19, 1989, 103 Stat. 2445; Pub. L. 103–465, title

VII, §771(a)–(e)(1), Dec. 8, 1994, 108 Stat. 5042,

5043.)

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 (§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.
§ 1344 TITLE 29—LABOR Page 528

Paragraph (6) of section 1322(b) of this title, referred

to in subsec. (c)(7), was redesignated as par. (5) by Pub.

L. 96–364, title IV, §403(c)(4), Sept. 26, 1980, 94 Stat. 1301.

AMENDMENTS

1994—Subsec. (a). Pub. L. 103–465, §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, §771(b), added subsec. (b).

Former subsec. (b) redesignated (c).

Subsec. (c). Pub. L. 103–465, §771(b), redesignated subsec. (b) as (c). Former subsec. (c) redesignated (d).

Subsec. (c)(8) to (13). Pub. L. 103–465, §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, §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, §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 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.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1342, 1345, 1365

of this title.

§ 1344. Allocation of assets

(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) 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 (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) 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