Page 483 TITLE 29—LABOR § 1202

(d) Notification and information by Secretary of

the Treasury to Secretary of Labor upon issuance by Secretary of the Treasury of a determination letter to applicant

If the Secretary of the Treasury determines

that a plan or trust to which this section applies

meets the applicable requirements of part I of

subchapter D of chapter 1 of title 26 and issues

a determination letter to the applicant, the Secretary shall notify the Secretary of Labor of his

determination and furnish such information and

material relating to the application and determination held by the Secretary of the Treasury

as the Secretary of Labor may request for the

proper administration of subchapter I of this

chapter. The Secretary of Labor shall accept the

determination of the Secretary of the Treasury

as prima facie evidence of initial compliance by

the plan with the standards of parts 2, 3, and 4

of subtitle B of subchapter I of this chapter. The

determination of the Secretary of the Treasury

shall not be prima facie evidence on issues relating solely to part 4 of subtitle B of subchapter I

of this chapter. If an application for such a determination is withdrawn, or if the Secretary of

the Treasury issues a determination that the

plan or trust does not meet the requirements of

such part I, the Secretary shall notify the Secretary of Labor of the withdrawal or determination.

(e) Effective date

This section does not apply with respect to an

application for any plan received by the Secretary of the Treasury before the date on which

section 410 of title 26 applies to the plan, or on

which such section will apply if the plan is determined by the Secretary to be a qualified plan.

(Pub. L. 93–406, title III, §3001, Sept. 2, 1974, 88

Stat. 995; Pub. L. 100–203, title IX, §9343(b), Dec.

22, 1987, 101 Stat. 1330–372; Pub. L. 101–239, title

VII, §7891(a)(1), Dec. 19, 1989, 103 Stat. 2445.)

AMENDMENTS

1989—Subsecs. (a), (b)(1), (c) to (e). 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. (d). Pub. L. 100–203 inserted after second

sentence ‘‘The determination of the Secretary of the

Treasury shall not be prima facie evidence on issues relating solely to part 4 of subtitle B of subchapter I of

this chapter.’’

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 sections 1140, 1141 of this

title; title 26 section 7476.

§ 1202. Procedures with respect to continued

compliance with Internal Revenue requirements relating to participation, vesting, and

funding standards

(a) Notification by Secretary of the Treasury to

Secretary of Labor of issuance of a preliminary notice of intent to disqualify or of commencement of proceedings to determine satisfaction of requirements

In carrying out the provisions of part I of subchapter D of chapter 1 of title 26 with respect to

whether a plan or a trust meets the requirements of section 410(a) or 411 of title 26 (relating

to minimum participation standards and minimum vesting standards, respectively), the Secretary of the Treasury shall notify the Secretary of Labor when the Secretary of the Treasury issues a preliminary notice of intent to disqualify related to the plan or trust or, if earlier,

at the time of commencing any proceeding to

determine whether the plan or trust satisfies

such requirements. Unless the Secretary of the

Treasury finds that the collection of a tax imposed under the Internal Revenue Code of 1986 is

in jeopardy, the Secretary of the Treasury shall

not issue a determination that the plan or trust

does not satisfy the requirements of such section until the expiration of a period of 60 days

after the date on which he notifies the Secretary

of Labor of such review. The Secretary of the

Treasury, in his discretion, may extend the 60-

day period referred to in the preceding sentence

if he determines that such an extension would

enable the Secretary of Labor to obtain compliance with such requirements by the plan within

the extension period. Except as otherwise provided in this chapter, the Secretary of Labor

shall not generally apply part 2 of subtitle B of

subchapter I of this chapter to any plan or trust

subject to sections 410(a) and 411 of title 26, but

shall refer alleged general violations of the vesting or participation standards to the Secretary

of the Treasury. (The preceding sentence shall

not apply to matters relating to individuals benefits.)

(b) Notification to Secretary of Labor before Secretary of the Treasury sends notice of deficiency under section 4971 of title 26; waiver

of imposition of tax; requests for investigation; consultation

Unless the Secretary of the Treasury finds

that the collection of a tax is in jeopardy, in

carrying out the provisions of section 4971 of

title 26 (relating to taxes on the failure to meet

minimum funding standards), the Secretary of

the Treasury shall notify the Secretary of Labor

before sending a notice of deficiency with respect to any tax imposed under that section on

an employer, and, in accordance with the provisions of subsection (d) of that section, afford the

Secretary of Labor an opportunity to comment

on the imposition of the tax in the case. The

Secretary of the Treasury may waive the imposition of the tax imposed under section 4971(b) of

title 26 in appropriate cases. Upon receiving a

written request from the Secretary of Labor or

from the Pension Benefit Guaranty Corporation,

the Secretary of the Treasury shall cause an investigation to be commenced expeditiously with
§ 1203 TITLE 29—LABOR Page 484

respect to whether the tax imposed under section 4971 of title 26 should be applied with respect to any employer to which the request relates. The Secretary of the Treasury and the

Secretary of Labor shall consult with each other

from time to time with respect to the provisions

of section 412 of title 26 (relating to minimum

funding standards) and with respect to the funding standards applicable under subchapter I of

this chapter in order to coordinate the rules applicable under such standards.

(c) Extended application of regulations prescribed by Secretary of the Treasury relating

to minimum participation standards, minimum vesting standards, and minimum funding standards

Regulations prescribed by the Secretary of the

Treasury under sections 410(a), 411, and 412 of

title 26 (relating to minimum participation

standards, minimum vesting standards, and

minimum funding standards, respectively) shall

also apply to the minimum participation, vesting, and funding standards set forth in parts 2

and 3 of subtitle B of subchapter I of this chapter. Except as otherwise expressly provided in

this chapter, the Secretary of Labor shall not

prescribe other regulations under such parts, or

apply the regulations prescribed by the Secretary of the Treasury under sections 410(a), 411,

412 of title 26 and applicable to the minimum

participation, vesting, and funding standards

under such parts in a manner inconsistent with

the way such regulations apply under sections

410(a), 411, and 412 of title 26.

(d) Opportunity afforded Secretary of the Treasury to intervene in cases involving construction or application of minimum standards;

review of briefs filed by Pension Benefit

Guaranty Corporation or Secretary of Labor

The Secretary of Labor and the Pension Benefit Guaranty Corporation, before filing briefs in

any case involving the construction or application of minimum participation standards, minimum vesting standards, or minimum funding

standards under subchapter I of this chapter

shall afford the Secretary of the Treasury a reasonable opportunity to review any such brief.

The Secretary of the Treasury shall have the

right to intervene in any such case.

(e) Consultative requirements respecting promulgation of proposed or final regulations

The Secretary of the Treasury shall consult

with the Pension Benefit Guaranty Corporation

with respect to any proposed or final regulation

authorized by subpart C of part I of subchapter

D of chapter 1 of title 26, or by sections 1421

through 1426 of this title, before publishing any

such proposed or final regulation.

(Pub. L. 93–406, title III, §3002, Sept. 2, 1974, 88

Stat. 996; Pub. L. 96–364, title IV, §402(b)(3), Sept.

26, 1980, 94 Stat. 1299; Pub. L. 101–239, title VII,

§7891(a)(1), Dec. 19, 1989, 103 Stat. 2445.)

REFERENCES IN TEXT

The Internal Revenue Code of 1986, referred to in subsec. (a), is classified generally to Title 26, Internal Revenue Code.

This chapter, referred to in subsecs. (a), (c), 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.

Subpart C of part I of subchapter D of chapter 1 of

title 26, referred to in subsec. (e), commences with section 418 of Title 26, Internal Revenue Code.

AMENDMENTS

1989—Subsec. (a). Pub. L. 101–239 substituted ‘‘tax imposed under the Internal Revenue Code of 1986’’ for ‘‘tax

imposed under the Internal Revenue Code of 1954’’ and

‘‘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.

Subsecs. (b), (c), (e). 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. (e). Pub. L. 96–364 added subsec. (e).

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 REFERRED TO IN OTHER SECTIONS

This section is referred to in title 26 section 4971.

§ 1203. Procedures in connection with prohibited

transactions

(a) Notification to Secretary of Labor; opportunity to comment on imposition of tax

under section 4975 of title 26; waiver; requests for investigations

Unless the Secretary of the Treasury finds

that the collection of a tax is in jeopardy, in

carrying out the provisions of section 4975 of

title 26 (relating to tax on prohibited transactions) the Secretary of the Treasury shall, in

accordance with the provisions of subsection (h)

of such section, notify the Secretary of Labor

before sending a notice of deficiency with respect to the tax imposed by subsection (a) or (b)

of such section, and, in accordance with the provisions of subsection (h) of such section, afford

the Secretary an opportunity to comment on

the imposition of the tax in any case. The Secretary of the Treasury shall have authority to

waive the imposition of the tax imposed under

section 4975(b) in appropriate cases. Upon receiving a written request from the Secretary of

Labor or from the Pension Benefit Guaranty

Corporation, the Secretary of the Treasury shall

cause an investigation to be carried out with respect to whether the tax imposed by section 4975

of title 26 should be applied to any person referred to in the request.

(b) Consultation

The Secretary of the Treasury and the Secretary of Labor shall consult with each other

from time to time with respect to the provisions

of section 4975 of title 26 (relating to tax on pro-