§ 1302 TITLE 29—LABOR Page 492

Subsec. (a)(8) to (12). Pub. L. 96–364, §402(a)(1)(E),

added pars. (8) to (12).

Subsec. (b). Pub. L. 96–364, §402(a)(1)(F), which was executed by designating existing provisions as par. (1) and

adding pars. (2) to (4), notwithstanding directory language that pars. (2) to (4) be added at end of subsec.

(c)(1) as redesignated, was struck out by Pub. L. 99–272,

§11004(b). See 1986 Amendment note above.

EFFECTIVE DATE OF 1994 AMENDMENT

Amendment by Pub. L. 103–465 effective as if included

in the Pension Protection Act, Pub. L. 100–203,

§§9302–9346, see section 761(b)(2) of Pub. L. 103–465, set

out as a note under section 1056 of this title.

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

Section 9312(d)(1) of Pub. L. 100–203, as amended by

Pub. L. 101–239, title VII, §7881(f)(9), Dec. 19, 1989, 103

Stat. 2440, provided that: ‘‘The amendments made by

this section [amending this section and sections 1305,

1322, 1341, 1342, 1349, 1362, 1364, and 1368 of this title and

repealing section 1349 of this title] shall apply with respect to—

‘‘(A) plan terminations under section 4041 of ERISA

[29 U.S.C. 1341] with respect to which notices of intent to terminate are provided under section

4041(a)(2) of ERISA after December 17, 1987, and

‘‘(B) plan terminations with respect to which proceedings are instituted by the Pension Benefit Guaranty Corporation under section 4042 of ERISA [29

U.S.C. 1342] after December 17, 1987.’’

Section 9313(c) of Pub. L. 100–203 provided that: ‘‘The

amendments made by this section [amending this section and sections 1341 and 1367 of this title] shall apply

with respect to plan terminations under section 4041 of

ERISA [29 U.S.C. 1341] with respect to which notices of

intent to terminate are provided under section

4041(a)(2) of ERISA after December 17, 1987.’’

EFFECTIVE DATE OF 1986 AMENDMENT

Amendment by 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 1980 AMENDMENT

Amendment by Pub. L. 96–364 effective Sept. 26, 1980,

except as specifically provided, see section 1461(e) of

this title.

COORDINATION OF INTERNAL REVENUE CODE OF 1986

WITH EMPLOYEE RETIREMENT INCOME SECURITY ACT

OF 1974

This subchapter not applicable in interpreting Internal Revenue Code of 1986, except to the extent specifically provided in such Code, or as determined by the

Secretary of the Treasury, see section 9343(a) of Pub. L.

100–203, set out as a note under section 401 of Title 26,

Internal Revenue Code.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1002, 1023, 1056,

1082, 1083, 1085a, 1365, 1366, 1441, 1461 of this title; title

26 sections 412, 418.

§ 1302. Pension Benefit Guaranty Corporation

(a) Establishment within Department of Labor

There is established within the Department of

Labor a body corporate to be known as the Pension Benefit Guaranty Corporation. In carrying

out its functions under this subchapter, the corporation shall be administered by the chairman

of the board of directors in accordance with policies established by the board. The purposes of

this subchapter, which are to be carried out by

the corporation, are—

(1) to encourage the continuation and maintenance of voluntary private pension plans for

the benefit of their participants,

(2) to provide for the timely and uninterrupted payment of pension benefits to participants and beneficiaries under plans to which

this subchapter applies, and

(3) to maintain premiums established by the

corporation under section 1306 of this title at

the lowest level consistent with carrying out

its obligations under this subchapter.

(b) Powers of corporation

To carry out the purposes of this subchapter,

the corporation has the powers conferred on a

nonprofit corporation under the District of Columbia Nonprofit Corporation Act [D.C. Code,

§29–501 et seq.] and, in addition to any specific

power granted to the corporation elsewhere in

this subchapter or under that Act, the corporation has the power—

(1) to sue and be sued, complain and defend,

in its corporate name and through its own

counsel, in any court, State or Federal;

(2) to adopt, alter, and use a corporate seal,

which shall be judicially noticed;

(3) to adopt, amend, and repeal, by the board

of directors, by laws, rules, and regulations relating to the conduct of its business and the

exercise of all other rights and powers granted

to it by this chapter and such other bylaws,

rules, and regulations as may be necessary to

carry out the purposes of this subchapter;

(4) to conduct its business (including the

carrying on of operations and the maintenance

of offices) and to exercise all other rights and

powers granted to it by this chapter in any

State or other jurisdiction without regard to

qualification, licensing, or other requirements

imposed by law in such State or other jurisdiction;

(5) to lease, purchase, accept gifts or donations of, or otherwise to acquire, to own, hold,

improve, use, or otherwise deal in or with, and

to sell, convey, mortgage, pledge, lease, exchange, or otherwise dispose of, any property,

real, personal, or mixed, or any interest therein wherever situated;

(6) to appoint and fix the compensation of

such officers, attorneys, employees, and

agents as may be required, to determine their

qualifications, to define their duties, and, to

the extent desired by the corporation, require

bonds for them and fix the penalty thereof,

and to appoint and fix the compensation of experts and consultants in accordance with the

provisions of section 3109 of title 5;

(7) to utilize the personnel and facilities of

any other agency or department of the United

States Government, with or without reimbursement, with the consent of the head of

such agency or department; and

(8) to enter into contracts, to execute instruments, to incur liabilities, and to do any and

all others acts and things as may be necessary

or incidental to the conduct of its business and
Page 493 TITLE 29—LABOR § 1302

the exercise of all other rights and powers

granted to the corporation by this chapter.

(c) Omitted

(d) Board of directors; compensation; reimbursement for expenses

The board of directors of the corporation consists of the Secretary of the Treasury, the Secretary of Labor, and the Secretary of Commerce.

Members of the Board shall serve without compensation, but shall be reimbursed for travel,

subsistence, and other necessary expenses incurred in the performance of their duties as

members of the board. The Secretary of Labor is

the chairman of the board of directors.

(e) Meetings

The board of directors shall meet at the call of

its chairman, or as otherwise provided by the

bylaws of the corporation.

(f) Adoption of bylaws; amendment, alteration;

publication in the Federal Register

As soon as practicable, but not later than 180

days after September 2, 1974, the board of directors shall adopt initial bylaws and rules relating

to the conduct of the business of the corporation. Thereafter, the board of directors may

alter, supplement, or repeal any existing bylaw

or rule, and may adopt additional bylaws and

rules from time to time as may be necessary.

The chairman of the board shall cause a copy of

the bylaws of the corporation to be published in

the Federal Register not less often than once

each year.

(g) Exemption from taxation

(1) The corporation, its property, its franchise,

capital, reserves, surplus, and its income (including, but not limited to, any income of any

fund established under section 1305 of this title),

shall be exempt from all taxation now or hereafter imposed by the United States (other than

taxes imposed under chapter 21 of title 26, relating to Federal Insurance Contributions Act [26

U.S.C. 3101 et seq.], and chapter 23 of title 26, relating to Federal Unemployment Tax Act [26

U.S.C. 3301 et seq.], or by any State or local taxing authority, except that any real property and

any tangible personal property (other than cash

and securities) of the corporation shall be subject to State and local taxation to the same extent according to its value as other real and tangible personal property is taxed.

(2) The receipts and disbursements of the corporation in the discharge of its functions shall

be included in the totals of the budget of the

United States Government. The United States is

not liable for any obligation or liability incurred by the corporation.

(3) Omitted.

(h) Advisory committee to corporation

(1) There is established an advisory committee

to the corporation, for the purpose of advising

the corporation as to its policies and procedures

relating to (A) the appointment of trustees in

termination proceedings, (B) investment of moneys, (C) whether plans being terminated should

be liquidated immediately or continued in operation under a trustee, and (D) such other issues

as the corporation may request from time to

time. The advisory committee may also recommend persons for appointment as trustees in

termination proceedings, make recommendations with respect to the investment of moneys

in the funds, and advise the corporation as to

whether a plan subject to being terminated

should be liquidated immediately or continued

in operation under a trustee.

(2) The advisory committee consists of seven

members appointed, from among individuals

recommended by the board of directors, by the

President. Of the seven members, two shall represent the interests of employee organizations,

two shall represent the interests of employers

who maintain pension plans, and three shall represent the interests of the general public. The

President shall designate one member as chairman at the time of the appointment of that

member.

(3) Members shall serve for terms of 3 years

each, except that, of the members first appointed, one of the members representing the interests of employee organizations, one of the

members representing the interests of employers, and one of the members representing the interests of the general public shall be appointed

for terms of 2 years each, one of the members

representing the interests of the general public

shall be appointed for a term of 1 year, and the

other members shall be appointed to full 3–year

terms. The advisory committee shall meet at

least six times each year and at such other

times as may be determined by the chairman or

requested by any three members of the advisory

committee.

(4) Members shall be chosen on the basis of

their experience with employee organizations,

with employers who maintain pension plans,

with the administration of pension plans, or

otherwise on account of outstanding demonstrated ability in related fields. Of the members serving on the advisory committee at any

time, no more than four shall be affiliated with

the same political party.

(5) An individual appointed to fill a vacancy

occurring other than by the expiration of a term

of office shall be appointed only for the unexpired term of the member he succeeds. Any

vacancy occurring in the office of a member of

the advisory committee shall be filled in the

manner in which that office was originally

filled.

(6) The advisory committee shall appoint and

fix the compensation of such employees as it determines necessary to discharge its duties, including experts and consultants in accordance

with the provisions of section 3109 of title 5. The

corporation shall furnish to the advisory committee such professional, secretarial, and other

services as the committee may request.

(7) Members of the advisory committee shall,

for each day (including traveltime) during which

they are attending meetings or conferences of

the committee or otherwise engaged in the business of the committee, be compensated at a rate

fixed by the corporation which is not in excess

of the daily equivalent of the annual rate of

basic pay in effect for grade GS–18 of the General Schedule, and while away from their homes

or regular places of business they may be allowed travel expenses, including per diem in lieu
§ 1303 TITLE 29—LABOR Page 494

of subsistence, as authorized by section 5703 of

title 5.

(8) The Federal Advisory Committee Act does

not apply to the advisory committee established

by this subsection.

(Pub. L. 93–406, title IV, §4002, Sept. 2, 1974, 88

Stat. 1004; Pub. L. 94–455, title XV, §1510(a), Oct.

4, 1976, 90 Stat. 1741; Pub. L. 96–364, title IV,

§§403(l), 406(a), Sept. 26, 1980, 94 Stat. 1302, 1303;

Pub. L. 101–239, title VII, §7891(a)(1), Dec. 19,

1989, 103 Stat. 2445.)

REFERENCES IN TEXT

The District of Columbia Nonprofit Corporation Act,

referred to in subsec. (b), is Pub. L. 87–569, Aug. 6, 1962,

76 Stat. 265, as amended, which appears in chapter 5

(§29–501 et seq.) of Title 29, Corporations, of the District

of Columbia Code.

This chapter, referred to in subsec. (b)(3), (4), and (8),

was in 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 Federal Insurance Contributions Act, referred to

in subsec. (g)(1), is act Aug. 16, 1954, ch. 736, §§3101, 3102,

3111, 3112, 3121 to 3128, 68A Stat. 415, as amended, which

is classified generally to chapter 21 (§3101 et seq.) of

Title 26, Internal Revenue Code. For complete classification of this Act to the Code, see section 3128 of Title

26 and Tables.

The Federal Unemployment Tax Act, referred to in

subsec. (g)(1), is act Aug. 16, 1954, ch. 736, §§3301 to 3311,

68A Stat. 454, as amended, which is classified generally

to chapter 23 (§3301 et seq.) of Title 26. For complete

classification of this Act to the Code, see section 3311

of Title 26 and Tables.

The Federal Advisory Committee Act, referred to in

subsec. (h)(8), is Pub. L. 92–463, Oct. 6, 1972, 86 Stat. 770,

as amended, which is set out in the Appendix to Title

5, Government Organization and Employees.

CODIFICATION

Subsec. (c) amended section 5108 of Title 5, Government Organization and Employees, and subsec. (g)(3)

amended section 846 of former Title 31, Money and Finance.

AMENDMENTS

1989—Subsec. (g)(1). 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.

1980—Subsec. (b)(3). Pub. L. 96–364, §403(l), inserted

provisions respecting bylaws, etc., to carry out this

subchapter.

Subsec. (g)(2). Pub. L. 96–364, §406(a), substituted provisions relating to inclusion of receipts and disbursements in United States budget totals and nonliability

of United States for obligation or liability of corporation, for provisions relating to noninclusion of receipts

and disbursements in United States budget totals, exemption from limitations with respect to budget outlays, and restrictions on liability for obligation or liability incurred by the corporation.

1976—Subsec. (g)(1). Pub. L. 94–455 exempted corporation from all taxation now or hereafter imposed by

United States (other than taxes imposed under chapter

21 of title 26, relating to Federal Insurance Contributions Act, and chapter 23 of title 26, relating to Federal

Unemployment Tax Act).

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 1980 AMENDMENT

Amendment by Pub. L. 96–364 effective Sept. 26, 1980,

except as specifically provided, see section 1461(e) of

this title.

Section 406(b) of Pub. L. 96–364 provided that: ‘‘The

amendment made by subsection (a) [amending this section] shall apply to fiscal years beginning after September 30, 1980.’’

EFFECTIVE DATE OF 1976 AMENDMENT

Section 1510(b) of Pub. L. 94–455 provided that: ‘‘The

amendment made by subsection (a) [amending this section] shall take effect on September 2, 1974.’’

REFERENCES IN OTHER LAWS TO GS–16, 17, OR 18 PAY

RATES

References in laws to the rates of pay for GS–16, 17,

or 18, or to maximum rates of pay under the General

Schedule, to be considered references to rates payable

under specified sections of Title 5, Government Organization and Employees, see section 529 [title I, §101(c)(1)]

of Pub. L. 101–509, set out in a note under section 5376

of Title 5.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1301 of this title.

§ 1303. Operation of corporation

(a) Investigatory authority; audit of statistically

significant number of terminating plans

The corporation may make such investigations as it deems necessary to enforce any provision of this subchapter or any rule or regulation

thereunder, and may require or permit any person to file with it a statement in writing, under

oath or otherwise as the corporation shall determine, as to all the facts and circumstances concerning the matter to be investigated. The corporation shall annually audit 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 whether section

1350(a) of this title has been satisfied. Each

audit shall include a statistically significant

number of participants and beneficiaries.

(b) Discovery powers vested in board members

or officers designated by the chairman

For the purpose of any such investigation, or

any other proceeding under this subchapter, any

member of the board of directors of the corporation, or any officer designated by the chairman,

may administer oaths and affirmations, subpena

witnesses, compel their attendance, take evidence, and require the production of any books,

papers, correspondence, memoranda, or other

records which the corporation deems relevant or

material to the inquiry.

(c) Contempt

In the case of contumacy by, or refusal to obey

a subpena issued to, any person, the corporation

may invoke the aid of any court of the United

States within the jurisdiction of which such investigation or proceeding is carried on, or where

such person resides or carries on business, in requiring the attendance and testimony of witnesses and the production of books, papers, cor-