Page 427 TITLE 29—LABOR § 1086

tion shall notify the Pension Benefit Guaranty

Corporation within 30 days after the amendment

requiring such security takes effect. Such notice

shall contain such information as the Corporation may require.

(f) Definitions

For purposes of this section, the terms ‘‘current liability’’, ‘‘funded current liability percentage’’, and ‘‘unfunded current liability’’ shall

have the meanings given such terms by section

1082(d) of this title, except that in computing

unfunded current liability there shall not be

taken into account any unamortized portion of

the unfunded old liability amount as of the close

of the plan year.

(Pub. L. 93–406, title I, §307, as added Pub. L.

100–203, title IX, §9341(b)(2), Dec. 22, 1987, 101

Stat. 1330–370; amended Pub. L. 101–239, title VII,

§7881(i)(1)(B)–(3)(A), (4)(B), Dec. 19, 1989, 103 Stat.

2442.)

PRIOR PROVISIONS

A prior section 307 of Pub. L. 93–406 was renumbered

section 308 and is classified to section 1086 of this title.

AMENDMENTS

1989—Subsec. (a)(1). Pub. L. 101–239, §7881(i)(4)(B), inserted ‘‘to which the requirements of section 1082 of

this title apply’’ after ‘‘multiemployer plan)’’.

Subsec. (c)(1)(B). Pub. L. 101–239, §7881(i)(1)(B), which

directed amendment of subsec. (c)(1)(B) by inserting

‘‘and any other plan amendments adopted after December 22, 1987, and before such plan amendment’’ without

specifying where such language was to be inserted, was

executed by making the insertion after ‘‘to the plan

amendment’’, as the probable intent of Congress.

Subsec. (d). Pub. L. 101–239, §7881(i)(2), inserted ‘‘of

the Treasury’’ after ‘‘Secretary’’.

Subsecs. (e), (f). Pub. L. 101–239, §7881(i)(3)(A), added

subsec. (e) and redesignated former subsec. (e) as (f).

EFFECTIVE DATE OF 1989 AMENDMENT

Amendment by 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.

EFFECTIVE DATE

This section applicable to plan amendments adopted

after Dec. 22, 1987, except that, in the case of a plan

maintained pursuant to one or more collective bargaining agreements between employee representatives and

one or more employers ratified before Dec. 22, 1987, this

section not applicable to plan amendments adopted

pursuant to collective bargaining agreements ratified

before Dec. 22, 1987, see section 9341(c) of Pub. L.

100–203, set out as an Effective Date of 1987 Amendment

note under section 401 of Title 26, Internal Revenue

Code.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1371 of this title.

§ 1086. Effective dates

(a) Except as otherwise provided in this section, this part shall apply in the case of plan

years beginning after September 2, 1974.

(b) Except as otherwise provided in subsections (c) and (d) of this section, in the case of

a plan in existence on January 1, 1974, this part

shall apply in the case of plan years beginning

after December 31, 1975.

(c)(1) In the case of a plan maintained on January 1, 1974, pursuant to one or more agreements

which the Secretary finds to be collective bargaining agreements between employee representatives and one or more employers, this

part shall apply only with respect to plan years

beginning after the earlier of the date specified

in subparagraph (A) or (B) of section 1061(c)(1) of

this title.

(2) This subsection shall apply with respect to

a plan if (and only if) the application of this subsection results in a later effective date for this

part than the effective date required by subsection (b) of this section.

(d) In the case of a plan the administrator of

which elects under section 1017(d) of this Act to

have the provisions of the Internal Revenue

Code of 1954 relating to participation, vesting,

funding, and form of benefit to apply to a plan

year and to all subsequent plan years, this part

shall apply to plan years beginning on the earlier of the first plan year to which such election

applies or the first plan year determined under

subsections (a), (b), and (c) of this section.

(e) In the case of a plan maintained by a labor

organization which is exempt from tax under

section 501(c)(5) of title 26 exclusively for the

benefit of its employees and their beneficiaries,

this part shall be applied by substituting for the

term ‘‘December 31, 1975’’ in subsection (b) of

this section, the earlier of—

(1) the date on which the second convention

of such labor organization held after September 2, 1974, ends or

(2) December 31, 1980,

but in no event shall a date earlier than the

later of December 31, 1975, or the date determined under subsection (c) of this section be

substituted.

(f) The preceding provisions of this section

shall not apply with respect to amendments

made to this part in provisions enacted after

September 2, 1974.

(Pub. L. 93–406, title I, §308, formerly §306, Sept.

2, 1974, 88 Stat. 874, renumbered §307, Pub. L.

99–272, title XI, §11015(a)(1)(A)(i), Apr. 7, 1986, 100

Stat. 264; renumbered §308, Pub. L. 100–203, title

IX, §9341(b)(1), Dec. 22, 1987, 101 Stat. 1330–370;

amended Pub. L. 101–239, title VII, §7894(h)(3),

Dec. 19, 1989, 103 Stat. 2451.)

REFERENCES IN TEXT

Section 1017 of this Act, referred to in subsec. (d), is

section 1017 of Pub. L. 93–406, which is set out as an Effective Date; Transitional Rules note under section 410

of Title 26, Internal Revenue Code.

The Internal Revenue Code of 1954, referred to in subsec. (d), was redesignated the Internal Revenue Code of

1986 by Pub. L. 99–514, §2, Oct. 22, 1986, 100 Stat. 2095,

and is classified to Title 26.

AMENDMENTS

1989—Subsec. (f). Pub. L. 101–239 added subsec. (f).

EFFECTIVE DATE OF 1989 AMENDMENT

Amendment by Pub. L. 101–239 effective, except as

otherwise provided, as if originally included in the provision of the Employee Retirement Income Security

Act of 1974, Pub. L. 93–406, to which such amendment

relates, see section 7894(i) 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 1061 of this title.
§ 1101 TITLE 29—LABOR Page 428

PART 4—FIDUCIARY RESPONSIBILITY

PART REFERRED TO IN OTHER SECTIONS

This part is referred to in sections 1002, 1055, 1056,

1132, 1169, 1201, 1342, 1349 of this title.

§ 1101. Coverage

(a) Scope of coverage

This part shall apply to any employee benefit

plan described in section 1003(a) of this title (and

not exempted under section 1003(b) of this title),

other than—

(1) a plan which is unfunded and is maintained by an employer primarily for the purpose of providing deferred compensation for a

select group of management or highly compensated employees; or

(2) any agreement described in section 736 of

title 26, which provides payments to a retired

partner or deceased partner or a deceased

partner’s successor in interest.

(b) Securities or policies deemed to be included

in plan assets

For purposes of this part:

(1) In the case of a plan which invests in any

security issued by an investment company

registered under the Investment Company Act

of 1940 [15 U.S.C. 80a–1 et seq.], the assets of

such plan shall be deemed to include such security but shall not, solely by reason of such

investment, be deemed to include any assets of

such investment company.

(2) In the case of a plan to which a guaranteed benefit policy is issued by an insurer, the

assets of such plan shall be deemed to include

such policy, but shall not, solely by reason of

the issuance of such policy, be deemed to include any assets of such insurer. For purposes

of this paragraph:

(A) The term ‘‘insurer’’ means an insurance company, insurance service, or insurance organization, qualified to do business

in a State.

(B) The term ‘‘guaranteed benefit policy’’

means an insurance policy or contract to the

extent that such policy or contract provides

for benefits the amount of which is guaranteed by the insurer. Such term includes any

surplus in a separate account, but excludes

any other portion of a separate account.

(c) Clarification of application of ERISA to insurance company general accounts

(1)(A) Not later than June 30, 1997, the Secretary shall issue proposed regulations to provide guidance for the purpose of determining, in

cases where an insurer issues 1 or more policies

to or for the benefit of an employee benefit plan

(and such policies are supported by assets of

such insurer’s general account), which assets

held by the insurer (other than plan assets held

in its separate accounts) constitute assets of the

plan for purposes of this part and section 4975 of

title 26 and to provide guidance with respect to

the application of this subchapter to the general

account assets of insurers.

(B) The proposed regulations under subparagraph (A) shall be subject to public notice and

comment until September 30, 1997.

(C) The Secretary shall issue final regulations

providing the guidance described in subparagraph (A) not later than December 31, 1997.

(D) Such regulations shall only apply with respect to policies which are issued by an insurer

on or before December 31, 1998, to or for the benefit of an employee benefit plan which is supported by assets of such insurer’s general account. With respect to policies issued on or before December 31, 1998, such regulations shall

take effect at the end of the 18-month period following the date on which such regulations become final.

(2) The Secretary shall ensure that the regulations issued under paragraph (1)—

(A) are administratively feasible, and

(B) protect the interests and rights of the

plan and of its participants and beneficiaries

(including meeting the requirements of paragraph (3)).

(3) The regulations prescribed by the Secretary pursuant to paragraph (1) shall require,

in connection with any policy issued by an insurer to or for the benefit of an employee benefit

plan to the extent that the policy is not a guaranteed benefit policy (as defined in subsection

(b)(2)(B) of this section)—

(A) that a plan fiduciary totally independent

of the insurer authorize the purchase of such

policy (unless such purchase is a transaction

exempt under section 1108(b)(5) of this title),

(B) that the insurer describe (in such form

and manner as shall be prescribed in such regulations), in annual reports and in policies issued to the policyholder after the date on

which such regulations are issued in final form

pursuant to paragraph (1)(C)—

(i) a description of the method by which

any income and expenses of the insurer’s

general account are allocated to the policy

during the term of the policy and upon the

termination of the policy, and

(ii) for each report, the actual return to

the plan under the policy and such other financial information as the Secretary may

deem appropriate for the period covered by

each such annual report,

(C) that the insurer disclose to the plan fiduciary the extent to which alternative arrangements supported by assets of separate accounts of the insurer (which generally hold

plan assets) are available, whether there is a

right under the policy to transfer funds to a

separate account and the terms governing any

such right, and the extent to which support by

assets of the insurer’s general account and

support by assets of separate accounts of the

insurer might pose differing risks to the plan,

and

(D) that the insurer manage those assets of

the insurer which are assets of such insurer’s

general account (irrespective of whether any

such assets are plan assets) with the care,

skill, prudence, and diligence under the circumstances then prevailing that a prudent

man acting in a like capacity and familiar

with such matters would use in the conduct of

an enterprise of a like character and with like

aims, taking into account all obligations supported by such enterprise.

(4) Compliance by the insurer with all requirements of the regulations issued by the Secretary

pursuant to paragraph (1) shall be deemed com-