§ 1304 TITLE 29—LABOR Page 496

(i) 6 years after the date on which the cause

of action arose, or

(ii) 3 years after the applicable date specified

in subparagraph (B).

(B)(i) Except as provided in clause (ii), the applicable date specified in this subparagraph is

the earliest date on which the plaintiff acquired

or should have acquired actual knowledge of the

existence of such cause of action.

(ii) In the case of a plaintiff who is a fiduciary

bringing the action in the exercise of fiduciary

duties, the applicable date specified in this subparagraph is the date on which the plaintiff became a fiduciary with respect to the plan if such

date is later than the date specified in clause (i).

(C) In the case of fraud or concealment, the period described in subparagraph (A)(ii) shall be

extended to 6 years after the applicable date

specified in subparagraph (B).

(6) The district courts of the United States

have jurisdiction of actions brought under this

subsection without regard to the amount in controversy.

(7) In any suit, action, or proceeding in which

the corporation is a party, or intervenes under

section 1451 of this title, in any State court, the

corporation may, without bond or security, remove such suit, action, or proceeding from the

State court to the United States district court

for the district or division in which such suit,

action, or proceeding is pending by following

any procedure for removal now or hereafter in

effect.

(Pub. L. 93–406, title IV, §4003, Sept. 2, 1974, 88

Stat. 1006; Pub. L. 96–364, title IV, §§402(a)(2),

403(k), Sept. 26, 1980, 94 Stat. 1297, 1302; Pub. L.

98–620, title IV, §402(33), Nov. 8, 1984, 98 Stat.

3360; Pub. L. 99–272, title XI, §§11014(b)(1), (2),

11016(c)(5), Apr. 7, 1986, 100 Stat. 262, 264, 274;

Pub. L. 103–465, title VII, §§773(a), 776(b)(1), Dec.

8, 1994, 108 Stat. 5044, 5048.)

REFERENCES IN TEXT

Section 1349 of this title, referred to in subsec. (f)(4),

was repealed by Pub. L. 100–203, title IX, §9312(a), Dec.

22, 1987, 101 Stat. 1330–361.

AMENDMENTS

1994—Subsec. (a). Pub. L. 103–465, §776(b)(1), inserted

‘‘and whether section 1350(a) of this title has been satisfied’’ before period at end of second sentence.

Subsec. (e)(1). Pub. L. 103–465, §773(a), inserted ‘‘(A)’’

after ‘‘enforce’’ and substituted ‘‘, and’’ and cl. (B) for

period at end.

1986—Subsec. (a). Pub. L. 99–272, §11016(c)(5), inserted

provisions directing the corporation to audit annually

a statistically significant number of plans terminating

under section 1341(b) of this title to determine whether

participants and beneficiaries have received their benefit commitments and to include a statistically significant number of participants and beneficiaries in each

audit.

Subsec. (e)(6). Pub. L. 99–272, §11014(b)(2), added par.

(6).

Subsec. (f). Pub. L. 99–272, §11014(b)(1), amended subsec. (f) generally. Prior to amendment, subsec. (f) read

as follows: ‘‘Except as provided in section 1451(a)(2) of

this title, any participant, beneficiary, plan administrator, or employee adversely affected by any action of

the corporation, or by a receiver or trustee appointed

by the corporation, with respect to a plan in which

such participant, beneficiary, plan administrator or

employer has an interest, may bring an action against

the corporation, receiver, or trustee in the appropriate

court. For purposes of this subsection the term ‘appropriate court’ means the United States district court before which proceedings under section 1341 or 1342 of this

title are being conducted, or if no such proceedings are

being conducted the United States district court for

the district in which the plan has its principal office, or

the United States district court for the District of Columbia. The district courts of the United States have

jurisdiction of actions brought under this subsection

without regard to the amount in controversy. In any

suit, action, or proceeding in which the corporation is

a party, or intervenes under section 1451 of this title, in

any State court, the corporation may, without bond or

security, remove such suit, action, or proceeding from

the State court to the United States District Court for

the district or division embracing the place where the

same is pending by following any procedure for removal

now or hereafter in effect.’’

1984—Subsec. (e)(4). Pub. L. 98–620 struck out par. (4)

which provided that upon application by the corporation to a court of the United States for expedited handling of any case in which the corporation was a party,

it was the duty of that court to assign such case for

hearing at the earliest practical date and to cause such

case to be in every way expedited.

1980—Subsec. (a). Pub. L. 96–364, §402(a)(2)(A), substituted ‘‘enforce’’ for ‘‘determine whether any person

has violated or is about to violate’’.

Subsec. (e)(1). Pub. L. 96–364, §402(a)(2)(B), substituted

‘‘enforce’’ for ‘‘redress violations of’’.

Subsec. (f). Pub. L. 96–364, §§402(a)(2)(C), 403(k), substituted ‘‘Except as provided in section 1451(a)(2) of the

title, any’’ for ‘‘Any’’ and inserted provisions relating

to removal of actions.

EFFECTIVE DATE OF 1994 AMENDMENT

Section 773(b) of Pub. L. 103–465 provided that: ‘‘The

amendments made by this section [amending this section] shall be effective for installments and other payments required under section 302 of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1082] or

section 412 of the Internal Revenue Code of 1986 [26

U.S.C. 412] that become due on or after the date of the

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

Amendment by section 776(b)(1) of Pub. L. 103–465 effective with respect to distributions that occur in plan

years commencing on or after Jan. 1, 1996, see section

776(e) of Pub. L. 103–465, set out as a note under section

1056 of this title.

EFFECTIVE DATE OF 1986 AMENDMENT

Section 11014(b)(3) of Pub. L. 99–272 provided that:

‘‘The amendments made by this subsection [amending

this section] shall apply with respect to actions filed

after the date of the enactment of this Act [Apr. 7,

1986].’’

Amendment by section 11016(c)(5) of Pub. L. 99–272 effective Jan. 1, 1986, with certain exceptions, see section

11019 of Pub. L. 99–272, set out as a note under section

1341 of this title.

EFFECTIVE DATE OF 1984 AMENDMENT

Amendment by Pub. L. 98–620 not applicable to cases

pending on Nov. 8, 1984, see section 403 of Pub. L. 98–620,

set out as a note under section 1657 of Title 28, Judiciary and Judicial Procedure.

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 sections 1341, 1461 of this

title.

§ 1304. Repealed. Pub. L. 99–272, title XI,

§ 11016(c)(6), Apr. 7, 1986, 100 Stat. 274

Section, Pub. L. 93–406, title IV, §4004, Sept. 2, 1974, 88

Stat. 1008, related to appointment, within 270 days after
Page 497 TITLE 29—LABOR § 1305

Sept. 2, 1974, and powers and functions of a receiver to

assume control of terminated plan and its assets.

EFFECTIVE DATE OF REPEAL

Repeal effective Jan. 1, 1986, with certain exceptions,

see section 11019 of Pub. L. 99–272, set out as an Effective Date of 1986 Amendment note under section 1341 of

this title.

§ 1305. Pension benefit guaranty funds

(a) Establishment of four revolving funds on

books of Treasury of the United States

There are established on the books of the

Treasury of the United States for revolving

funds to be used by the corporation in carrying

out its duties under this subchapter. One of the

funds shall be used with respect to basic benefits

guaranteed under section 1322 of this title, one

of the funds shall be used with respect to basic

benefits guaranteed under section 1322a of this

title, one of the funds shall be used with respect

to nonbasic benefits guaranteed under section

1322 of this title (if any), and the remaining fund

shall be used with respect to nonbasic benefits

guaranteed under section 1322a of this title (if

any), other than subsection (g)(2) thereof (if

any). Whenever in this subchapter reference is

made to the term ‘‘fund’’ the reference shall be

considered to refer to the appropriate fund established under this subsection.

(b) Credits to funds; availability of funds; investment of moneys in excess of current needs

(1) Each fund established under this section

shall be credited with the appropriate portion

of—

(A) funds borrowed under subsection (c) of

this section,

(B) premiums, penalties, interest, and

charges collected under this subchapter,

(C) the value of the assets of a plan administered under section 1342 of this title by a

trustee to the extent that they exceed the liabilities of such plan,

(D) the amount of any employer liability

payments under subtitle D of this subchapter,

to the extent that such payments exceed liabilities of the plan (taking into account all

other plan assets),

(E) earnings on investments of the fund or

on assets credited to the fund under this subsection,

(F) attorney’s fees awarded to the corporation, and

(G) receipts from any other operations under

this subchapter.

(2) Subject to the provisions of subsection (a)

of this section, each fund shall be available—

(A) for making such payments as the corporation determines are necessary to pay benefits guaranteed under section 1322 or 1322a of

this title or benefits payable under section

1350 of this title,

(B) to purchase assets from a plan being terminated by the corporation when the corporation determines such purchase will best protect the interests of the corporation, participants in the plan being terminated, and other

insured plans,

(C) to repay to the Secretary of the Treasury

such sums as may be borrowed (together with

interest thereon) under subsection (c) of this

section,

(D) to pay the operational and administrative expenses of the corporation, including reimbursement of the expenses incurred by the

Department of the Treasury in maintaining

the funds, and the Comptroller General in auditing the corporation, and

(E) to pay to participants and beneficiaries

the estimated amount of benefits which are

guaranteed by the corporation under this subchapter and the estimated amount of other

benefits to which plan assets are allocated

under section 1344 of this title, under singleemployer plans which are unable to pay benefits when due or which are abandoned.

(3) Whenever the corporation determines that

the moneys of any fund are in excess of current

needs, it may request the investment of such

amounts as it determines advisable by the Secretary of the Treasury in obligations issued or

guaranteed by the United States but, until all

borrowings under subsection (c) of this section

have been repaid, the obligations in which such

excess moneys are invested may not yield a rate

of return in excess of the rate of interest payable on such borrowings.

(c) Authority to issue notes or other obligations;

purchase by Secretary of the Treasury as

public debt transaction

The corporation is authorized to issue to the

Secretary of the Treasury notes or other obligations in an aggregate amount of not to exceed

$100,000,000, in such forms and denominations,

bearing such maturities, and subject to such

terms and conditions as may be prescribed by

the Secretary of the Treasury. Such notes or

other obligations shall bear interest at a rate

determined by the Secretary of the Treasury,

taking into consideration the current average

market yield on outstanding marketable obligations of the United States of comparable maturities during the month preceding the issuance

of such notes or other obligations of the corporation. The Secretary of the Treasury is authorized and directed to purchase any notes or

other obligations issued by the corporation

under this subsection, and for that purpose he is

authorized to use as a public debt transaction

the proceeds from the sale of any securities issued under chapter 31 of title 31, and the purposes for which securities may be issued under

that chapter, are extended to include any purchase of such notes and obligations. The Secretary of the Treasury may at any time sell any

of the notes or other obligations acquired by

him under this subsection. All redemptions, purchases, and sales by the Secretary of the Treasury of such notes or other obligations shall be

treated as public debt transactions of the United

States.

(d) Establishment of fifth fund; purpose, availability, etc.

(1) A fifth fund shall be established for the reimbursement of uncollectible withdrawal liability under section 1402 of this title, and shall be

credited with the appropriate—

(A) premiums, penalties, and interest

charges collected under this subchapter, and