Page 531 TITLE 29—LABOR § 1346

1See References in Text note below.

103 Stat. 2439, 2440, provided that: ‘‘The amendments

made by paragraph (1) [amending this section] shall

apply, in the case of plans which, as of December 17,

1987, have no provision relating to the distribution of

residual plan assets upon termination, only with respect to plan amendments providing for the distribution of plan assets to the employer which are adopted

after December 17, 1988.’’

SPECIAL TEMPORARY RULE FOR TERMINATION OF

SINGLE-EMPLOYER PLAN

For special temporary rule relating to requirements

to be met before the final distribution of assets in the

case of the termination of certain single-employer

plans with respect to which the amount payable to the

employer pursuant to subsec. (d) of this section exceeds

$1,000,000, see section 11008(d) of Pub. L. 99–272, set out

as a note under section 1341 of this title.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1103, 1104, 1108,

1301, 1305, 1322, 1341, 1346 of this title; title 26 section

4975.

§ 1345. Recapture of payments

(a) Authorization to recover benefits

Except as provided in subsection (c) of this

section, the trustee is authorized to recover for

the benefit of a plan from a participant the recoverable amount (as defined in subsection (b) of

this section) of all payments from the plan to

him which commenced within the 3-year period

immediately preceding the time the plan is terminated.

(b) Recoverable amount

For purposes of subsection (a) of this section

the recoverable amount is the excess of the

amount determined under paragraph (1) over the

amount determined under paragraph (2).

(1) The amount determined under this paragraph is the sum of the amount of the actual

payments received by the participant within

the 3-year period.

(2) The amount determined under this paragraph is the sum of—

(A) the sum of the amount such participant would have received during each consecutive 12-month period within the 3 years

if the participant received the benefit in the

form described in paragraph (3),

(B) the sum for each of the consecutive 12-

month periods of the lesser of—

(i) the excess, if any, of $10,000 over the

benefit in the form described in paragraph

(3), or

(ii) the excess of the actual payment, if

any, over the benefit in the form described

in paragraph (3), and

(C) the present value at the time of termination of the participant’s future benefits

guaranteed under this subchapter as if the

benefits commenced in the form described in

paragraph (3).

(3) The form of benefit for purposes of this

subsection shall be the monthly benefit the

participant would have received during the

consecutive 12-month period, if he had elected

at the time of the first payment made during

the 3-year period, to receive his interest in the

plan as a monthly benefit in the form of a life

annuity commencing at the time of such first

payment.

(c) Payments made on or after death or disability

of participant; waiver of recovery in case of

hardship

(1) In the event of a distribution described in

section 1343(b)(7) 1 of this title the 3-year period

referred to in subsection (b) of this section shall

not end sooner than the date on which the corporation is notified of the distribution.

(2) The trustee shall not recover any payment

made from a plan after or on account of the

death of a participant, or to a participant who is

disabled (within the meaning of section 72(m)(7)

of title 26).

(3) The corporation is authorized to waive, in

whole or in part, the recovery of any amount

which the trustee is authorized to recover for

the benefit of a plan under this section in any

case in which it determines that substantial

economic hardship would result to the participant or his beneficiaries from whom such

amount is recoverable.

(Pub. L. 93–406, title IV, §4045, Sept. 2, 1974, 88

Stat. 1027; Pub. L. 101–239, title VII, §7891(a)(1),

Dec. 19, 1989, 103 Stat. 2445.)

REFERENCES IN TEXT

Section 1343(b)(7) of this title, referred to in subsec.

(c)(1), was redesignated section 1343(c)(7) of this title by

Pub. L. 103–465, title VII, §771(b), Dec. 8, 1994, 108 Stat.

5042.

AMENDMENTS

1989—Subsec. (c)(2). 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 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 section 1342 of this title;

title 26 section 6511.

§ 1346. Reports to trustee

The corporation and the plan administrator of

any plan to be terminated under this subtitle

shall furnish to the trustee such information as

the corporation or the plan administrator has

and, to the extent practicable, can obtain regarding—

(1) the amount of benefits payable with respect to each participant under a plan to be

terminated,

(2) the amount of basic benefits guaranteed

under section 1322 or 1322a of this title which

are payable with respect to each participant in

the plan,

(3) the present value, as of the time of termination, of the aggregate amount of basic benefits payable under section 1322 or 1322a of this

title (determined without regard to section

1322b of this title),

(4) the fair market value of the assets of the

plan at the time of termination,