Page 557 TITLE 29—LABOR § 1398

(C) the rate of employer contributions

under the plan for each plan year following

the first plan year beginning after September 26, 1980 and preceding the termination

date equals or exceeds the rate described in

section 1423(d)(3) of this title.

(b) Covered plans

A plan is described in this subsection if—

(1) it is a plan described in section 404(c) of

title 26 or a continuation thereof; and

(2) participation in the plan is substantially

limited to individuals who retired prior to

January 1, 1976.

(c) Amount of liability of employer; ‘‘a year of

signatory service’’ defined

(1) The amount of an employer’s liability

under this paragraph is the product of—

(A) the amount of the employer’s withdrawal liability determined without regard to

this section, and

(B) the greater of 90 percent, or a fraction—

(i) the numerator of which is an amount

equal to the portion of the plan’s unfunded

vested benefits that is attributable to plan

participants who have a total of 10 or more

years of signatory service, and

(ii) the denominator of which is an amount

equal to the total unfunded vested benefits

of the plan.

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

year of signatory service’’ means a year during

any portion of which a participant was employed for an employer who was obligated to

contribute in that year, or who was subsequently obligated to contribute.

(Pub. L. 93–406, title IV, §4216, as added Pub. L.

96–364, title I, §104(2), Sept. 26, 1980, 94 Stat.

1234.)

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1401, 1423 of this

title; title 26 section 418B.

§ 1397. Application of part in case of certain pre1980 withdrawals; adjustment of covered

plan

(a) For the purpose of determining the amount

of unfunded vested benefits allocable to an employer for a partial or complete withdrawal from

a plan which occurs after September 25, 1980, and

for the purpose of determining whether there

has been a partial withdrawal after such date,

the amount of contributions, and the number of

contribution base units, of such employer properly allocable—

(1) to work performed under a collective bargaining agreement for which there was a permanent cessation of the obligation to contribute before September 26, 1980, or

(2) to work performed at a facility at which

all covered operations permanently ceased before September 26, 1980, or for which there was

a permanent cessation of the obligation to

contribute before that date,

shall not be taken into account.

(b) A plan may, in a manner not inconsistent

with regulations, which shall be prescribed by

the corporation, adjust the amount of unfunded

vested benefits allocable to other employers

under a plan maintained by an employer described in subsection (a) of this section.

(Pub. L. 93–406, title IV, §4217, as added Pub. L.

96–364, title I, §104(2), Sept. 26, 1980, 94 Stat. 1235;

amended Pub. L. 98–369, div. A, title V,

§558(b)(1)(A), (B), July 18, 1984, 98 Stat. 899.)

AMENDMENTS

1984—Subsec. (a). Pub. L. 98–369, §558(b)(1)(A), (B),

substituted ‘‘September 25, 1980’’ for ‘‘April 28, 1980’’ in

provisions preceding par. (1) and ‘‘September 26, 1980’’

for ‘‘April 29, 1980’’ in pars. (1) and (2).

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1401 of this title.

§ 1398. Withdrawal not to occur because of

change in business form or suspension of

contributions during labor dispute

Notwithstanding any other provision of this

part, an employer shall not be considered to

have withdrawn from a plan solely because—

(1) an employer ceases to exist by reason

of—

(A) a change in corporate structure described in section 1369(b) of this title, or

(B) a change to an unincorporated form of

business enterprise,

if the change causes no interruption in employer contributions or obligations to contribute under the plan, or

(2) an employer suspends contributions

under the plan during a labor dispute involving its employees.

For purposes of this part, a successor or parent

corporation or other entity resulting from any

such change shall be considered the original employer.

(Pub. L. 93–406, title IV, §4218, as added Pub. L.

96–364, title I, §104(2), Sept. 26, 1980, 94 Stat. 1236;

amended Pub. L. 99–514, title XVIII, §1879(u)(4),

as added Pub. L. 101–239, title VII, §7862(b)(1)(C),

Dec. 19, 1989, 103 Stat. 2432; Pub. L. 101–239, title

VII, §7893(f), Dec. 19, 1989, 103 Stat. 2447.)

AMENDMENTS

1989—Par. (1)(A). Pub. L. 101–239, §7893(f), made identical amendment to that of Pub. L. 99–514, §1879(u)(4),

as added by Pub. L. 101–239, §7862(b)(1)(C), see below.

Pub. L. 101–239, §7862(b)(1)(C), added Pub. L. 99–514,

§1879(u)(4), see 1986 Amendment note below.

1986—Par. (1)(A). Pub. L. 99–514, §1879(u)(4), as added

by Pub. L. 101–239, §7862(b)(1)(C), substituted ‘‘section

1369(b) of this title’’ for ‘‘section 1362(d) of this title’’.

EFFECTIVE DATE OF 1989 AMENDMENT

Amendment by section 7862(b)(1)(C) of Pub. L. 101–239

effective as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 7863 of Pub. L. 101–239, set out

as a note under section 106 of Title 26, Internal Revenue

Code.

Amendment by section 7893(f) of Pub. L. 101–239 effective as if included in the provision of the Single-Employer Pension Plan Amendments Act of 1986, Pub. L.

99–272, title XI, to which such amendment relates, see

section 7893(h) of Pub. L. 101–239, set out as a note

under section 1002 of this title.

PLAN AMENDMENTS NOT REQUIRED UNTIL

JANUARY 1, 1989

For provisions directing that if any amendments

made by subtitle A or subtitle C of title XI [§§1101–1147