Page 575 TITLE 29—LABOR § 1441

(4) Notice required by this subsection shall be

given in accordance with regulations prescribed

by the corporation, except that notice to the

Secretary of the Treasury shall be given in accordance with regulations prescribed by the Secretary of the Treasury.

(5) The corporation may prescribe a time other

than the time prescribed by this section for the

making of a determination or the filing of a notice under this section.

(f) Financial assistance from corporation; conditions and criteria applicable

(1) If the plan sponsor of an insolvent plan, for

which the resource benefit level is above the

level of basic benefits, anticipates that, for any

month in an insolvency year, the plan will not

have funds sufficient to pay basic benefits, the

plan sponsor may apply for financial assistance

from the corporation under section 1431 of this

title.

(2) A plan sponsor who has determined a resource benefit level for an insolvency year which

is below the level of basic benefits shall apply

for financial assistance from the corporation

under section 1431 of this title.

(Pub. L. 93–406, title IV, §4245, as added Pub. L.

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

1259.)

WITHDRAWAL LIABILITY OF EMPLOYER FROM PLAN TERMINATING WHILE PLAN INSOLVENT WITHIN THIS SECTION: DETERMINATIONS, FACTORS, ETC.

Section 108(c)(3) of Pub. L. 96–364 provided that:

‘‘(A) For the purpose of determining the withdrawal

liability of an employer under title IV of the Employee

Retirement Income Security Act of 1974 [this subchapter] from a plan that terminates while the plan is

insolvent (within the meaning of section 4245 of such

Act [this section]), the plan’s unfunded vested benefits

shall be reduced by an amount equal to the sum of all

overburden credits that were applied in determining

the plan’s accumulated funding deficiency for all plan

years preceding the first plan year in which the plan is

insolvent, plus interest thereon.

‘‘(B) The provisions of subparagraph (A) apply only

if—

‘‘(i) the plan would have been eligible for the overburden credit in the last plan year beginning before

the date of the enactment of this Act [Sept. 26, 1980],

if section 4243 of the Employee Retirement Income

Security Act of 1974 [section 1423 of this title] had

been in effect for that plan year, and

‘‘(ii) the Pension Benefit Guaranty Corporation determines that the reduction of unfunded vested benefits under subparagraph (A) would not significantly

increase the risk of loss to the corporation.’’

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1053, 1202, 1322a,

1361, 1411, 1423, 1431, 1441, 1461 of this title.

PART 4—FINANCIAL ASSISTANCE

§ 1431. Assistance by corporation

(a) Authority; procedure applicable; amount

If, upon receipt of an application for financial

assistance under section 1426(f) of this title or

section 1441(d) of this title, the corporation verifies that the plan is or will be insolvent and unable to pay basic benefits when due, the corporation shall provide the plan financial assistance

in an amount sufficient to enable the plan to

pay basic benefits under the plan.

(b) Conditions; repayment terms

(1) Financial assistance shall be provided

under such conditions as the corporation determines are equitable and are appropriate to prevent unreasonable loss to the corporation with

respect to the plan.

(2) A plan which has received financial assistance shall repay the amount of such assistance

to the corporation on reasonable terms consistent with regulations prescribed by the corporation.

(c) Assistance pending final determination of application

Pending determination of the amount described in subsection (a) of this section, the corporation may provide financial assistance in

such amounts as it considers appropriate in

order to avoid undue hardship to plan participants and beneficiaries.

(Pub. L. 93–406, title IV, §4261, as added Pub. L.

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

1261.)

EFFECTIVE DATE

Part 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 sections 1306, 1307, 1322a,

1426 of this title; title 26 section 418E.

PART 5—BENEFITS AFTER TERMINATION

§ 1441. Benefits under certain terminated plans

(a) Amendment of plan by plan sponsor to reduce benefits, and suspension of benefit payments

Notwithstanding sections 1053 and 1054 of this

title, the plan sponsor of a terminated multiemployer plan to which section 1341a(d) of this title

applies shall amend the plan to reduce benefits,

and shall suspend benefit payments, as required

by this section.

(b) Determinations respecting value of nonforfeitable benefits under terminated plan

and value of assets of plan

(1) The value of nonforfeitable benefits under a

terminated plan referred to in subsection (a) of

this section, and the value of the plan’s assets,

shall be determined in writing, in accordance

with regulations prescribed by the corporation,

as of the end of the plan year during which section 1341a(d) of this title becomes applicable to

the plan, and each plan year thereafter.

(2) For purposes of this section, plan assets include outstanding claims for withdrawal liability (within the meaning of section 1301(a)(12) of

this title).

(c) Amendment of plan by plan sponsor to reduce

benefits for conservation of assets; factors

applicable

(1) If, according to the determination made

under subsection (b) of this section, the value of

nonforfeitable benefits exceeds the value of the

plan’s assets, the plan sponsor shall amend the

plan to reduce benefits under the plan to the extent necessary to ensure that the plan’s assets

are sufficient, as determined and certified in ac-