Page 405 TITLE 29—LABOR § 1061

1See References in Text note below.

poration, the minimum funding standard of section 1082 of this title shall be determined as if

all such employers were a single employer, and

allocated to each employer in accordance with

regulations prescribed by the Secretary of the

Treasury.

(d) Plan of trades or businesses under common

control

For purposes of sections 1052, 1053, and 1054 of

this title, under regulations prescribed by the

Secretary of the Treasury, all employees of

trades or businesses (whether or not incorporated) which are under common control shall

be treated as employed by a single employer.

The regulations prescribed under this subsection

shall be based on principles similar to the principles which apply in the case of subsection (c)

of this section.

(Pub. L. 93–406, title I, §210, Sept. 2, 1974, 88 Stat.

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

7894(c)(10), Dec. 19, 1989, 103 Stat. 2445, 2449.)

AMENDMENTS

1989—Subsec. (c). Pub. L. 101–239, §7894(c)(10), substituted ‘‘and (e)(3)(C) of such Code’’ for ‘‘and (e)(3)(C)

of such code’’, which for purposes of codification was

translated as ‘‘and (e)(3)(C) of title 26’’ thus requiring

no change in text.

Pub. L. 101–239, §7891(a)(1), 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 section 7891(a)(1) of 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.

Amendment by section 7894(c)(10) of 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.

REGULATIONS

Secretary authorized, effective Sept. 2, 1974, to promulgate regulations wherever provisions of this subchapter call for the promulgation of regulations, see

section 1031 of this title.

§ 1061. 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)(1) Except as otherwise provided in subsection (d) of this section, sections 1055, 1056(d)

and 1058 of this title shall apply with respect to

plan years beginning after December 31, 1975.

(2) 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 organizations and one or more employers, no plan shall

be treated as not meeting the requirements of

sections 1054 and 1055 of this title by reason of a

supplementary or special plan provision (within

the meaning of paragraph (2)) for any plan year

before the year which begins after the earlier

of—

(A) the date on which the last of such agreements relating to the plan terminates (determined without regard to any extension thereof

agreed to after September 2, 1974), or

(B) December 31, 1980.

For purposes of subparagraph (A) and section

1086(c) 1 of this title, any plan amendment made

pursuant to a collective bargaining agreement

relating to the plan which amends the plan solely to conform to any requirement contained in

this chapter or the Internal Revenue Code of

1986 shall not be treated as a termination of

such collective bargaining agreement. This

paragraph shall not apply unless the Secretary

determines that the participation and vesting

rules in effect on September 2, 1974, are not less

favorable to participants, in the aggregate, than

the rules provided under sections 1052, 1053, and

1054 of this title.

(2) For purposes of paragraph (1), the term

‘‘supplementary or special plan provision’’

means any plan provision which—

(A) provides supplementary benefits, not in

excess of one-third of the basic benefit, in the

form of any annuity for the life of the participant, or

(B) provides that, under a contractual agreement based on medical evidence as to the effects of working in an adverse environment for

an extended period of time, a participant having 25 years of service is to be treated as having 30 years of service.

(3) 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) If the administrator of a plan elects under

section 1017(d) of this Act to make applicable to

a plan year and to all subsequent plan years the

provisions of the Internal Revenue Code of 1986

relating to participation, vesting, funding, and

form of benefit, this part shall apply to the first

plan year to which such election applies and to

all subsequent plan years.

(e)(1) No pension plan to which section 1052 of

this title applies may make effective any plan

amendment with respect to breaks in service

(which amendment is made or becomes effective

after January 1, 1974, and before the date on

which section 1052 of this title first becomes effective with respect to such plan) which provides

that any employee’s participation in the plan

would commence to any date later than the

later of—

(A) the date on which his participation

would commence under the break in service

rules of section 1052(b) of this title, or

(B) the date on which his participation

would commence under the plan as in effect on

January 1, 1974.

(2) No pension plan to which section 1053 of

this title applies may make effective any plan
§ 1081 TITLE 29—LABOR Page 406

amendment with respect to breaks in service

(which amendment is made or becomes effective

after January 1, 1974, and before the date on

which section 1053 of this title first becomes effective with respect to such plan) if such amendment provides that the nonforfeitable benefit

derived from employer contributions to which

any employee would be entitled is less than the

lesser of the nonforfeitable benefit derived from

employer contributions to which he would be entitled under—

(A) the break in service rules of section

1052(b)(3) of this title, or

(B) the plan as in effect on January 1, 1974.

Subparagraph (B) shall not apply if the break in

service rules under the plan would have been in

violation of any law or rule of law in effect on

January 1, 1974.

(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, §211, Sept. 2, 1974, 88 Stat.

867; Pub. L. 99–272, title XI, §11015(a)(1)(B), Apr.

7, 1986, 100 Stat. 265; Pub. L. 101–239, title VII,

§§7891(a)(1), 7894(h)(2), Dec. 19, 1989, 103 Stat.

2445, 2451.)

REFERENCES IN TEXT

Section 1086(c) of this title, referred to in subsec.

(c)(1), was in the original ‘‘section 307(c)’’, meaning section 307(c) of Pub. L. 93–406, the Employee Retirement

Income Security Act of 1974. Section 307(c) was renumbered section 308(c) by Pub. L. 100–203, title IX,

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

This chapter, referred to in subsec. (c)(1), 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 subsecs. (c)(1) and (d), is classified generally to Title 26, Internal Revenue Code.

Section 1017(d) 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.

AMENDMENTS

1989—Subsecs. (c)(1), (d). Pub. L. 101–239, §7891(a)(1),

substituted ‘‘Internal Revenue Code of 1986’’ for ‘‘Internal Revenue Code of 1954’’.

Subsec. (f). Pub. L. 101–239, §7894(h)(2), added subsec.

(f).

1986—Subsec. (c)(1). Pub. L. 99–272 made a technical

amendment to the reference to section 1086(c) of this

title to reflect the renumbering of the corresponding

section of the original act.

EFFECTIVE DATE OF 1989 AMENDMENT

Amendment by section 7891(a)(1) of 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.

Amendment by section 7894(h)(2) of 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.

EFFECTIVE DATE OF 1986 AMENDMENT

Amendment by Pub. L. 99–272 applicable with respect

to applications for waivers, extensions, and modifications filed on or after Apr. 7, 1986, see section 11015(a)(3)

of Pub. L. 99–272, set out as an Effective Date note

under section 1085a of this title.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1086 of this title.

PART 3—FUNDING

PART REFERRED TO IN OTHER SECTIONS

This part is referred to in sections 1060, 1103, 1132,

1201, 1202 of this title.

§ 1081. Coverage

(a) Plans excepted from applicability of this part

This part shall apply to any employee pension

benefit plan described in section 1003(a) of this

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

this title), other than—

(1) an employee welfare benefit plan;

(2) an insurance contract plan described in

subsection (b) of this section;

(3) 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;

(4)(A) a plan which is established and maintained by a society, order, or association described in section 501(c)(8) or (9) of title 26, if

no part of the contributions to or under such

plan are made by employers of participants in

such plan; or

(B) a trust described in section 501(c)(18) of

title 26;

(5) a plan which has not at any time after

September 2, 1974, provided for employer contributions;

(6) an agreement providing payments to a retired partner or deceased partner or a deceased

partner’s successor in interest as described in

section 736 of title 26;

(7) an individual retirement account or annuity as described in section 408(a) of title 26,

or a retirement bond described in section 409

of title 26 (as effective for obligations issued

before January 1, 1984);

(8) an individual account plan (other than a

money purchase plan) and a defined benefit

plan to the extent it is treated as an individual account plan (other than a money purchase plan) under section 1002(35)(B) of this

title;

(9) an excess benefit plan; or

(10) any plan, fund or program under which

an employer, all of whose stock is directly or

indirectly owned by employees, former employees or their beneficiaries, proposes

through an unfunded arrangement to compensate retired employees for benefits which

were forfeited by such employees under a pension plan maintained by a former employer

prior to the date such pension plan became

subject to this chapter.

(b) ‘‘Insurance contract plan’’ defined

For the purposes of paragraph (2) of subsection

(a) of this section a plan is an ‘‘insurance contract plan’’ if—