§ 1303 TITLE 29—LABOR Page 494

of subsistence, as authorized by section 5703 of

title 5.

(8) The Federal Advisory Committee Act does

not apply to the advisory committee established

by this subsection.

(Pub. L. 93–406, title IV, §4002, Sept. 2, 1974, 88

Stat. 1004; Pub. L. 94–455, title XV, §1510(a), Oct.

4, 1976, 90 Stat. 1741; Pub. L. 96–364, title IV,

§§403(l), 406(a), Sept. 26, 1980, 94 Stat. 1302, 1303;

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

1989, 103 Stat. 2445.)

REFERENCES IN TEXT

The District of Columbia Nonprofit Corporation Act,

referred to in subsec. (b), is Pub. L. 87–569, Aug. 6, 1962,

76 Stat. 265, as amended, which appears in chapter 5

(§29–501 et seq.) of Title 29, Corporations, of the District

of Columbia Code.

This chapter, referred to in subsec. (b)(3), (4), and (8),

was in 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 Federal Insurance Contributions Act, referred to

in subsec. (g)(1), is act Aug. 16, 1954, ch. 736, §§3101, 3102,

3111, 3112, 3121 to 3128, 68A Stat. 415, as amended, which

is classified generally to chapter 21 (§3101 et seq.) of

Title 26, Internal Revenue Code. For complete classification of this Act to the Code, see section 3128 of Title

26 and Tables.

The Federal Unemployment Tax Act, referred to in

subsec. (g)(1), is act Aug. 16, 1954, ch. 736, §§3301 to 3311,

68A Stat. 454, as amended, which is classified generally

to chapter 23 (§3301 et seq.) of Title 26. For complete

classification of this Act to the Code, see section 3311

of Title 26 and Tables.

The Federal Advisory Committee Act, referred to in

subsec. (h)(8), is Pub. L. 92–463, Oct. 6, 1972, 86 Stat. 770,

as amended, which is set out in the Appendix to Title

5, Government Organization and Employees.

CODIFICATION

Subsec. (c) amended section 5108 of Title 5, Government Organization and Employees, and subsec. (g)(3)

amended section 846 of former Title 31, Money and Finance.

AMENDMENTS

1989—Subsec. (g)(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.

1980—Subsec. (b)(3). Pub. L. 96–364, §403(l), inserted

provisions respecting bylaws, etc., to carry out this

subchapter.

Subsec. (g)(2). Pub. L. 96–364, §406(a), substituted provisions relating to inclusion of receipts and disbursements in United States budget totals and nonliability

of United States for obligation or liability of corporation, for provisions relating to noninclusion of receipts

and disbursements in United States budget totals, exemption from limitations with respect to budget outlays, and restrictions on liability for obligation or liability incurred by the corporation.

1976—Subsec. (g)(1). Pub. L. 94–455 exempted corporation from all taxation now or hereafter imposed by

United States (other than taxes imposed under chapter

21 of title 26, relating to Federal Insurance Contributions Act, and chapter 23 of title 26, relating to Federal

Unemployment Tax Act).

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 1980 AMENDMENT

Amendment by Pub. L. 96–364 effective Sept. 26, 1980,

except as specifically provided, see section 1461(e) of

this title.

Section 406(b) of Pub. L. 96–364 provided that: ‘‘The

amendment made by subsection (a) [amending this section] shall apply to fiscal years beginning after September 30, 1980.’’

EFFECTIVE DATE OF 1976 AMENDMENT

Section 1510(b) of Pub. L. 94–455 provided that: ‘‘The

amendment made by subsection (a) [amending this section] shall take effect on September 2, 1974.’’

REFERENCES IN OTHER LAWS TO GS–16, 17, OR 18 PAY

RATES

References in laws to the rates of pay for GS–16, 17,

or 18, or to maximum rates of pay under the General

Schedule, to be considered references to rates payable

under specified sections of Title 5, Government Organization and Employees, see section 529 [title I, §101(c)(1)]

of Pub. L. 101–509, set out in a note under section 5376

of Title 5.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1301 of this title.

§ 1303. Operation of corporation

(a) Investigatory authority; audit of statistically

significant number of terminating plans

The corporation may make such investigations as it deems necessary to enforce any provision of this subchapter or any rule or regulation

thereunder, and may require or permit any person to file with it a statement in writing, under

oath or otherwise as the corporation shall determine, as to all the facts and circumstances concerning the matter to be investigated. The corporation shall annually audit a statistically significant number of plans terminating under section 1341(b) of this title to determine whether

participants and beneficiaries have received

their benefit commitments and whether section

1350(a) of this title has been satisfied. Each

audit shall include a statistically significant

number of participants and beneficiaries.

(b) Discovery powers vested in board members

or officers designated by the chairman

For the purpose of any such investigation, or

any other proceeding under this subchapter, any

member of the board of directors of the corporation, or any officer designated by the chairman,

may administer oaths and affirmations, subpena

witnesses, compel their attendance, take evidence, and require the production of any books,

papers, correspondence, memoranda, or other

records which the corporation deems relevant or

material to the inquiry.

(c) Contempt

In the case of contumacy by, or refusal to obey

a subpena issued to, any person, the corporation

may invoke the aid of any court of the United

States within the jurisdiction of which such investigation or proceeding is carried on, or where

such person resides or carries on business, in requiring the attendance and testimony of witnesses and the production of books, papers, cor-
Page 495 TITLE 29—LABOR § 1303

1See References in Text note below.

respondence, memoranda, and other records.

The court may issue an order requiring such person to appear before the corporation, or member

or officer designated by the corporation, and to

produce records or to give testimony related to

the matter under investigation or in question.

Any failure to obey such order of the court may

be punished by the court as a contempt thereof.

All process in any such case may be served in

the judicial district in which such person is an

inhabitant or may be found.

(d) Cooperation with other governmental agencies

In order to avoid unnecessary expense and duplication of functions among government agencies, the corporation may make such arrangements or agreements for cooperation or mutual

assistance in the performance of its functions

under this subchapter as is practicable and consistent with law. The corporation may utilize

the facilities or services of any department,

agency, or establishment of the United States or

of any State or political subdivision of a State,

including the services of any of its employees,

with the lawful consent of such department,

agency, or establishment. The head of each department, agency, or establishment of the

United States shall cooperate with the corporation and, to the extent permitted by law, provide such information and facilities as it may

request for its assistance in the performance of

its functions under this subchapter. The Attorney General or his representative shall receive

from the corporation for appropriate action such

evidence developed in the performance of its

functions under this subchapter as may be found

to warrant consideration for criminal prosecution under the provisions of this or any other

Federal law.

(e) Civil actions by corporation; jurisdiction;

process; expeditious handling of case; costs;

limitation on actions

(1) Civil actions may be brought by the corporation for appropriate relief, legal or equitable or both, to enforce (A) the provisions of

this subchapter, and (B) in the case of a plan

which is covered under this subchapter (other

than a multiemployer plan) and for which the

conditions for imposition of a lien described in

section 1082(f)(1)(A) and (B) of this title or section 412(n)(1)(A) and (B) of title 26 have been

met, section 1082 of this title and section 412 of

title 26.

(2) Except as otherwise provided in this subchapter, where such an action is brought in a

district court of the United States, it may be

brought in the district where the plan is administered, where the violation took place, or where

a defendant resides or may be found, and process

may be served in any other district where a defendant resides or may be found.

(3) The district courts of the United States

shall have jurisdiction of actions brought by the

corporation under this subchapter without regard to the amount in controversy in any such

action.

(4) Repealed. Pub. L. 98–620, title IV, §402(33),

Nov. 8, 1984, 98 Stat. 3360.

(5) In any action brought under this subchapter, whether to collect premiums, penalties,

and interest under section 1307 of this title or

for any other purpose, the court may award to

the corporation all or a portion of the costs of

litigation incurred by the corporation in connection with such action.

(6)(A) Except as provided in subparagraph (C),

an action under this subsection may not be

brought after the later of—

(i) 6 years after the date on which the cause

of action arose, or

(ii) 3 years after the applicable date specified

in subparagraph (B).

(B)(i) Except as provided in clause (ii), the applicable date specified in this subparagraph is

the earliest date on which the corporation acquired or should have acquired actual knowledge

of the existence of such cause of action.

(ii) If the corporation brings the action as a

trustee, the applicable date specified in this subparagraph is the date on which the corporation

became a trustee with respect to the plan if such

date is later than the date described in clause

(i).

(C) In the case of fraud or concealment, the period described in subparagraph (A)(ii) shall be

extended to 6 years after the applicable date

specified in subparagraph (B).

(f) Civil actions against corporation; appropriate

court; award of costs and expenses; limitation on actions; jurisdiction; removal of actions

(1) Except with respect to withdrawal liability

disputes under part 1 of subtitle E of this subchapter, any person who is a fiduciary, employer, contributing sponsor, member of a contributing sponsor’s controlled group, participant, or beneficiary, and is adversely affected by

any action of the corporation with respect to a

plan in which such person has an interest, or

who is an employee organization representing

such a participant or beneficiary so adversely

affected for purposes of collective bargaining

with respect to such plan, may bring an action

against the corporation for appropriate equitable relief in the appropriate court.

(2) For purposes of this subsection, the term

‘‘appropriate court’’ means—

(A) the United States district court before

which proceedings under section 1341 or 1342 of

this title are being conducted,

(B) if no such proceedings are being conducted, the United States district court for

the judicial district in which the plan has its

principal office, or

(C) the United States District Court for the

District of Columbia.

(3) In any action brought under this subsection, the court may award all or a portion of

the costs and expenses incurred in connection

with such action to any party who prevails or

substantially prevails in such action.

(4) This subsection shall be the exclusive

means for bringing actions against the corporation under this subchapter, including actions

against the corporation in its capacity as a

trustee under section 1342 or 1349 1 of this title.

(5)(A) Except as provided in subparagraph (C),

an action under this subsection may not be

brought after the later of—
§ 1304 TITLE 29—LABOR Page 496

(i) 6 years after the date on which the cause

of action arose, or

(ii) 3 years after the applicable date specified

in subparagraph (B).

(B)(i) Except as provided in clause (ii), the applicable date specified in this subparagraph is

the earliest date on which the plaintiff acquired

or should have acquired actual knowledge of the

existence of such cause of action.

(ii) In the case of a plaintiff who is a fiduciary

bringing the action in the exercise of fiduciary

duties, the applicable date specified in this subparagraph is the date on which the plaintiff became a fiduciary with respect to the plan if such

date is later than the date specified in clause (i).

(C) In the case of fraud or concealment, the period described in subparagraph (A)(ii) shall be

extended to 6 years after the applicable date

specified in subparagraph (B).

(6) The district courts of the United States

have jurisdiction of actions brought under this

subsection without regard to the amount in controversy.

(7) In any suit, action, or proceeding in which

the corporation is a party, or intervenes under

section 1451 of this title, in any State court, the

corporation may, without bond or security, remove such suit, action, or proceeding from the

State court to the United States district court

for the district or division in which such suit,

action, or proceeding is pending by following

any procedure for removal now or hereafter in

effect.

(Pub. L. 93–406, title IV, §4003, Sept. 2, 1974, 88

Stat. 1006; Pub. L. 96–364, title IV, §§402(a)(2),

403(k), Sept. 26, 1980, 94 Stat. 1297, 1302; Pub. L.

98–620, title IV, §402(33), Nov. 8, 1984, 98 Stat.

3360; Pub. L. 99–272, title XI, §§11014(b)(1), (2),

11016(c)(5), Apr. 7, 1986, 100 Stat. 262, 264, 274;

Pub. L. 103–465, title VII, §§773(a), 776(b)(1), Dec.

8, 1994, 108 Stat. 5044, 5048.)

REFERENCES IN TEXT

Section 1349 of this title, referred to in subsec. (f)(4),

was repealed by Pub. L. 100–203, title IX, §9312(a), Dec.

22, 1987, 101 Stat. 1330–361.

AMENDMENTS

1994—Subsec. (a). Pub. L. 103–465, §776(b)(1), inserted

‘‘and whether section 1350(a) of this title has been satisfied’’ before period at end of second sentence.

Subsec. (e)(1). Pub. L. 103–465, §773(a), inserted ‘‘(A)’’

after ‘‘enforce’’ and substituted ‘‘, and’’ and cl. (B) for

period at end.

1986—Subsec. (a). Pub. L. 99–272, §11016(c)(5), inserted

provisions directing the corporation to audit annually

a statistically significant number of plans terminating

under section 1341(b) of this title to determine whether

participants and beneficiaries have received their benefit commitments and to include a statistically significant number of participants and beneficiaries in each

audit.

Subsec. (e)(6). Pub. L. 99–272, §11014(b)(2), added par.

(6).

Subsec. (f). Pub. L. 99–272, §11014(b)(1), amended subsec. (f) generally. Prior to amendment, subsec. (f) read

as follows: ‘‘Except as provided in section 1451(a)(2) of

this title, any participant, beneficiary, plan administrator, or employee adversely affected by any action of

the corporation, or by a receiver or trustee appointed

by the corporation, with respect to a plan in which

such participant, beneficiary, plan administrator or

employer has an interest, may bring an action against

the corporation, receiver, or trustee in the appropriate

court. For purposes of this subsection the term ‘appropriate court’ means the United States district court before which proceedings under section 1341 or 1342 of this

title are being conducted, or if no such proceedings are

being conducted the United States district court for

the district in which the plan has its principal office, or

the United States district court for the District of Columbia. The district courts of the United States have

jurisdiction of actions brought under this subsection

without regard to the amount in controversy. In any

suit, action, or proceeding in which the corporation is

a party, or intervenes under section 1451 of this title, in

any State court, the corporation may, without bond or

security, remove such suit, action, or proceeding from

the State court to the United States District Court for

the district or division embracing the place where the

same is pending by following any procedure for removal

now or hereafter in effect.’’

1984—Subsec. (e)(4). Pub. L. 98–620 struck out par. (4)

which provided that upon application by the corporation to a court of the United States for expedited handling of any case in which the corporation was a party,

it was the duty of that court to assign such case for

hearing at the earliest practical date and to cause such

case to be in every way expedited.

1980—Subsec. (a). Pub. L. 96–364, §402(a)(2)(A), substituted ‘‘enforce’’ for ‘‘determine whether any person

has violated or is about to violate’’.

Subsec. (e)(1). Pub. L. 96–364, §402(a)(2)(B), substituted

‘‘enforce’’ for ‘‘redress violations of’’.

Subsec. (f). Pub. L. 96–364, §§402(a)(2)(C), 403(k), substituted ‘‘Except as provided in section 1451(a)(2) of the

title, any’’ for ‘‘Any’’ and inserted provisions relating

to removal of actions.

EFFECTIVE DATE OF 1994 AMENDMENT

Section 773(b) of Pub. L. 103–465 provided that: ‘‘The

amendments made by this section [amending this section] shall be effective for installments and other payments required under section 302 of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1082] or

section 412 of the Internal Revenue Code of 1986 [26

U.S.C. 412] that become due on or after the date of the

enactment of this Act [Dec. 8, 1994].’’

Amendment by section 776(b)(1) of Pub. L. 103–465 effective with respect to distributions that occur in plan

years commencing on or after Jan. 1, 1996, see section

776(e) of Pub. L. 103–465, set out as a note under section

1056 of this title.

EFFECTIVE DATE OF 1986 AMENDMENT

Section 11014(b)(3) of Pub. L. 99–272 provided that:

‘‘The amendments made by this subsection [amending

this section] shall apply with respect to actions filed

after the date of the enactment of this Act [Apr. 7,

1986].’’

Amendment by section 11016(c)(5) of 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 1984 AMENDMENT

Amendment by Pub. L. 98–620 not applicable to cases

pending on Nov. 8, 1984, see section 403 of Pub. L. 98–620,

set out as a note under section 1657 of Title 28, Judiciary and Judicial Procedure.

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.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1341, 1461 of this

title.

§ 1304. Repealed. Pub. L. 99–272, title XI,

§ 11016(c)(6), Apr. 7, 1986, 100 Stat. 274

Section, Pub. L. 93–406, title IV, §4004, Sept. 2, 1974, 88

Stat. 1008, related to appointment, within 270 days after