Page 489 TITLE 29—LABOR § 1301

1See References in Text note below. 2So in original. The period probably should be a semicolon.

SUBCHAPTER III—PLAN TERMINATION

INSURANCE

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in sections 1056, 1058,

1082, 1083, 1103, 1104, 1144, 1222 of this title; title 26 sections 401, 412, 414, 6103; title 45 section 743.

SUBTITLE A—PENSION BENEFIT GUARANTY

CORPORATION

SUBTITLE REFERRED TO IN OTHER SECTIONS

This subtitle is referred to in section 1371 of this

title.

§ 1301. Definitions

(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
§ 1301 TITLE 29—LABOR Page 490

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.

(Pub. L. 93–406, title IV, §4001, Sept. 2, 1974, 88

Stat. 1003; Pub. L. 96–364, title IV, §402(a)(1),

Sept. 26, 1980, 94 Stat. 1296; Pub. L. 99–272, title
Page 491 TITLE 29—LABOR § 1301

XI, §11004, Apr. 7, 1986, 100 Stat. 238; Pub. L.

100–203, title IX, §§9312(b)(4), (5), 9313(a)(2)(F),

Dec. 22, 1987, 101 Stat. 1330–363, 1330–365; Pub. L.

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

Stat. 2445; Pub. L. 102–229, title II, §214, Dec. 12,

1991, 105 Stat. 1718; Pub. L. 103–465, title VII,

§761(a)(11), Dec. 8, 1994, 108 Stat. 5034.)

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, §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.

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, §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.

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, §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 singleemployer 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, §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, §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, §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, §11004(a)(2)–(4), added

par. (13).

Subsec. (a)(14). Pub. L. 99–272, §11004(a)(2)–(4), added

par. (14).

Subsec. (a)(15) to (21). Pub. L. 99–272, §11004(a)(2)–(4),

added pars. (15) to (21).

Subsec. (b). Pub. L. 99–272, §11004(b), designated existing provisions as par. (1), added par. (2), and struck out

amendments by Pub. L. 96–364, §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, §402(a)(1)(A), inserted provision excepting multiemployer plan.

Subsec. (a)(3). Pub. L. 96–364, §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, §402(a)(1)(C), inserted

references to section 1322a of this title.

Subsec. (a)(7). Pub. L. 96–364, §402(a)(1)(D), inserted

reference to section 1322a(g) of this title.
§ 1302 TITLE 29—LABOR Page 492

Subsec. (a)(8) to (12). Pub. L. 96–364, §402(a)(1)(E),

added pars. (8) to (12).

Subsec. (b). Pub. L. 96–364, §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,

§11004(b). See 1986 Amendment note above.

EFFECTIVE DATE OF 1994 AMENDMENT

Amendment by Pub. L. 103–465 effective as if included

in the Pension Protection Act, Pub. L. 100–203,

§§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, §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.

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.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1002, 1023, 1056,

1082, 1083, 1085a, 1365, 1366, 1441, 1461 of this title; title

26 sections 412, 418.

§ 1302. Pension Benefit Guaranty Corporation

(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 the chairman

of the board of directors in accordance with 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 [D.C. Code,

§29–501 et seq.] 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, by laws, 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 others acts and things as may be necessary

or incidental to the conduct of its business and