§ 1307 TITLE 29—LABOR Page 504

port to Congress the results of the studies conducted,

including its recommendations with respect thereto.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1082, 1302, 1305,

1310, 1311, 1322a, 1343 of this title; title 26 section 412.

§ 1307. Payment of premiums

(a) Premiums payable when due; accrual; waiver

or reduction

The designated payor of each plan shall pay

the premiums imposed by the corporation under

this subchapter with respect to that plan when

they are due. Premiums under this subchapter

are payable at the time, and on an estimated,

advance, or other basis, as determined by the

corporation. Premiums imposed by this subchapter on September 2, 1974 (applicable to that

portion of any plan year during which such date

occurs) are due within 30 days after such date.

Premiums imposed by this subchapter on the

first plan year commencing after September 2,

1974, are due within 30 days after such plan year

commences. Premiums shall continue to accrue

until a plan’s assets are distributed pursuant to

a termination procedure, or until a trustee is

appointed pursuant to section 1342 of this title,

whichever is earlier. The corporation may waive

or reduce premiums for a multiemployer plan

for any plan year during which such plan receives financial assistance from the corporation

under section 1431 of this title, except that any

amount so waived or reduced shall be treated as

financial assistance under such section.

(b) Late payment charge; waiver

If any basic benefit premium is not paid when

it is due the corporation is authorized to assess

a late payment charge of not more than 100 percent of the premium payment which was not

timely paid. The preceding sentence shall not

apply to any payment of premium made within

60 days after the date on which payment is due,

if before such date, the designated payor obtains

a waiver from the corporation based upon a

showing of substantial hardship arising from the

timely payment of the premium. The corporation is authorized to grant a waiver under this

subsection upon application made by the designated payor, but the corporation may not

grant a waiver if it appears that the designated

payor will be unable to pay the premium within

60 days after the date on which it is due. If any

premium is not paid by the last date prescribed

for a payment, interest on the amount of such

premium at the rate imposed under section

6601(a) of title 26 (relating to interest on underpayment, nonpayment, or extensions of time for

payment of tax) shall be paid for the period from

such last date to the date paid.

(c) Civil action to recover premium penalty and

interest

If any designated payor fails to pay a premium

when due, the corporation is authorized to bring

a civil action in any district court of the United

States within the jurisdiction of which the plan

assets are located, the plan is administered, or

in which a defendant resides or is found for the

recovery of the amount of the premium penalty,

and interest, and process may be served in any

other district. The district courts of the United

States shall have jurisdiction over actions

brought under this subsection by the corporation without regard to the amount in controversy.

(d) Basic benefits guarantee not stopped by designated payor’s failure to pay premiums

when due

The corporation shall not cease to guarantee

basic benefits on account of the failure of a designated payor to pay any premium when due.

(e) Designated payor

(1) For purposes of this section, the term ‘‘designated payor’’ means—

(A) the contributing sponsor or plan administrator in the case of a single-employer plan,

and

(B) the plan administrator in the case of a

multiemployer plan.

(2) If the contributing sponsor of any singleemployer plan is a member of a controlled

group, each member of such group shall be jointly and severally liable for any premiums required to be paid by such contributing sponsor.

For purposes of the preceding sentence, the term

‘‘controlled group’’ means any group treated as

a single employer under subsection (b), (c), (m),

or (o) of section 414 of title 26.

(Pub. L. 93–406, title IV, §4007, Sept. 2, 1974, 88

Stat. 1013; Pub. L. 96–364, title IV, §§402(a)(3),

403(b), Sept. 26, 1980, 94 Stat. 1298, 1300; Pub. L.

100–203, title IX, §9331(c), Dec. 22, 1987, 101 Stat.

1330–368; Pub. L. 101–239, title VII, §7891(a)(1),

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

AMENDMENTS

1989—Subsec. (b). 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—Subsecs. (a) to (d). Pub. L. 100–203, §9331(c)(1),

substituted ‘‘designated payor’’ for ‘‘plan administrator’’ wherever appearing.

Subsec. (e). Pub. L. 100–203, §9331(c)(2), added subsec.

(e).

1980—Subsec. (a). Pub. L. 96–364 inserted provisions

relating to waiver or reduction of premiums, and

struck out provisions relating to payment of premiums

under statutory requirements respecting contingent liability coverage.

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 1987 AMENDMENT

Amendment by Pub. L. 100–203 applicable to plan

years beginning after Dec. 31, 1987, see section 9331(f)(1)

of Pub. L. 100–203, set out as a note under section 1305

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 section 1303 of this title.
Page 505 TITLE 29—LABOR § 1311

§ 1308. Annual report by the corporation

As soon as practicable after the close of each

fiscal year the corporation shall transmit to the

President and the Congress a report relative to

the conduct of its business under this subchapter for that fiscal year. The report shall include financial statements setting forth the finances of the corporation at the end of such fiscal year and the result of its operations (including the source and application of its funds) for

the fiscal year and shall include an actuarial

evaluation of the expected operations and status

of the funds established under section 1305 of

this title for the next five years (including a detailed statement of the actuarial assumptions

and methods used in making such evaluation).

(Pub. L. 93–406, title IV, §4008, Sept. 2, 1974, 88

Stat. 1014.)

§ 1309. Portability assistance

The corporation shall provide advice and assistance to individuals with respect to evaluating the economic desirability of establishing individual retirement accounts or other forms of

individual retirement savings for which a deduction is allowable under section 219 of title 26 and

with respect to evaluating the desirability, in

particular cases, of transferring amounts representing an employee’s interest in a qualified

plan to such an account upon the employee’s

separation from service with an employer.

(Pub. L. 93–406, title IV, §4009, Sept. 2, 1974, 88

Stat. 1014; Pub. L. 101–239, title VII, §7891(a)(1),

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

AMENDMENTS

1989—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.

§ 1310. Authority to require certain information

(a) Information required

Each person described in subsection (b) of this

section shall provide the corporation annually,

on or before a date specified by the corporation

in regulations, with—

(1) such records, documents, or other information that the corporation specifies in regulations as necessary to determine the liabilities and assets of plans covered by this subchapter; and

(2) copies of such person’s audited (or, if unavailable, unaudited) financial statements,

and such other financial information as the

corporation may prescribe in regulations.

(b) Persons required to provide information

The persons covered by subsection (a) of this

section are each contributing sponsor, and each

member of a contributing sponsor’s controlled

group, of a single-employer plan covered by this

subchapter, if—

(1) the aggregate unfunded vested benefits at

the end of the preceding plan year (as determined under section 1306(a)(3)(E)(iii) of this

title) of plans maintained by the contributing

sponsor and the members of its controlled

group exceed $50,000,000 (disregarding plans

with no unfunded vested benefits);

(2) the conditions for imposition of a lien described in section 1082(f)(1)(A) and (B) of this

title or section 412(n)(1)(A) and (B) of title 26

have been met with respect to any plan maintained by the contributing sponsor or any

member of its controlled group; or

(3) minimum funding waivers in excess of

$1,000,000 have been granted with respect to

any plan maintained by the contributing sponsor or any member of its controlled group, and

any portion thereof is still outstanding.

(c) Information exempt from disclosure requirements

Any information or documentary material

submitted to the corporation pursuant to this

section shall be exempt from disclosure under

section 552 of title 5, and no such information or

documentary material may be made public, except as may be relevant to any administrative

or judicial action or proceeding. Nothing in this

section is intended to prevent disclosure to either body of Congress or to any duly authorized

committee or subcommittee of the Congress.

(Pub. L. 93–406, title IV, §4010, as added Pub. L.

103–465, title VII, §772(a), Dec. 8, 1994, 108 Stat.

5044.)

EFFECTIVE DATE

Section 772(c) of Pub. L. 103–465 provided that: ‘‘The

amendments made by this section [enacting this section] shall be effective on the date of enactment of this

Act [Dec. 8, 1994].’’

§ 1311. Notice to participants

(a) In general

The plan administrator of a plan subject to

the additional premium under section

1306(a)(3)(E) of this title shall provide, in a form

and manner and at such time as prescribed in

regulations of the corporation, notice to plan

participants and beneficiaries of the plan’s funding status and the limits on the corporation’s

guaranty should the plan terminate while

underfunded. Such notice shall be written in a

manner so as to be understood by the average

plan participant.

(b) Exception

Subsection (a) of this section shall not apply

to any plan to which section 1082(d) of this title

does not apply for the plan year by reason of

paragraph (9) thereof.

(Pub. L. 93–406, title IV, §4011, as added Pub. L.

103–465, title VII, §775(a), Dec. 8, 1994, 108 Stat.

5046.)

EFFECTIVE DATE

Section 775(c) of Pub. L. 103–465 provided that: ‘‘The

amendment made by this section [enacting this section] shall be effective for plan years beginning after

the date of enactment of this Act [Dec. 8, 1994].’’