Page 569 TITLE 29—LABOR § 1423

§ 1422. Notice of reorganization and funding requirements

(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.

(Pub. L. 93–406, title IV, §4242, as added Pub. L.

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

1251.)

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1202, 1426, 1461

of this title.

§ 1423. Minimum contribution requirement

(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