§ 1201 TITLE 29—LABOR Page 482

Act of 1996, may promulgate such regulations as

may be necessary or appropriate to carry out

the provisions of this part. The Secretary may

promulgate any interim final rules as the Secretary determines are appropriate to carry out

this part.

(Pub. L. 93–406, title I, §734, formerly §707, as

added Pub. L. 104–191, title I, §101(a), Aug. 21,

1996, 110 Stat. 1951; renumbered §734, Pub. L.

104–204, title VI, §603(a)(3), Sept. 26, 1996, 110

Stat. 2935.)

REFERENCES IN TEXT

Section 104 of the Health Care Portability and Accountability Act of 1996, referred to in text, probably

means section 104 of the Health Insurance Portability

and Accountability Act of 1996, Pub. L. 104–191, which is

set out as a note under section 300gg–92 of Title 42, The

Public Health and Welfare.

EFFECTIVE DATE

Section applicable with respect to group health plans

for plan years beginning after June 30, 1997, except as

otherwise provided, see section 101(g) of Pub. L. 104–191,

set out as a note under section 1181 of this title.

SUBCHAPTER II—JURISDICTION, ADMINISTRATION, ENFORCEMENT; JOINT PENSION TASK FORCE, ETC.

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in section 1135 of this

title.

SUBTITLE A—JURISDICTION, ADMINISTRATION,

AND ENFORCEMENT

§ 1201. Procedures in connection with the issuance of certain determination letters by the

Secretary of the Treasury covering qualifications under Internal Revenue Code

(a) Additional material required of applicants

Before issuing an advance determination of

whether a pension, profit-sharing, or stock

bonus plan, a trust which is a part of such a

plan, or an annuity or bond purchase plan meets

the requirements of part I of subchapter D of

chapter 1 of title 26, the Secretary of the Treasury shall require the person applying for the determination to provide, in addition to any material and information necessary for such determination, such other material and information

as may reasonably be made available at the

time such application is made as the Secretary

of Labor may require under subchapter I of this

chapter for the administration of that subchapter. The Secretary of the Treasury shall

also require that the applicant provide evidence

satisfactory to the Secretary that the applicant

has notified each employee who qualifies as an

interested party (within the meaning of regulations prescribed under section 7476(b)(1) of title

26 (relating to declaratory judgements in connection with the qualification of certain retirement plans)) of the application for a determination.

(b) Opportunity to comment on application

(1) Whenever an application is made to the

Secretary of the Treasury for a determination of

whether a pension, profit-sharing, or stock

bonus plan, a trust which is a part of such a

plan, or an annuity or bond purchase plan meets

the requirements of part I of subchapter D of

chapter 1 of title 26, the Secretary shall upon request afford an opportunity to comment on the

application at any time within 45 days after receipt thereof to—

(A) any employee or class of employee qualifying as an interested party within the meaning of the regulations referred to in subsection

(a) of this section.

(B) the Secretary of Labor, and

(C) the Pension Benefit Guaranty Corporation.

(2) The Secretary of Labor may not request an

opportunity to comment upon such an application unless he has been requested in writing to

do so by the Pension Benefit Guaranty Corporation or by the lesser of—

(A) 10 employees, or

(B) 10 percent of the employees

who qualify as interested parties within the

meaning of the regulations referred to in subsection (a) of this section. Upon receiving such

a request, the Secretary of Labor shall furnish a

copy of the request to the Secretary of the

Treasury within 5 days (excluding Saturdays,

Sundays, and legal public holidays (as set forth

in section 6103 of title 5)).

(3) Upon receiving such a request from the

Secretary of Labor, the Secretary of the Treasury shall furnish to the Secretary of Labor such

information held by the Secretary of the Treasury relating to the application as the Secretary

of Labor may request.

(4) The Secretary of Labor shall, within 30

days after receiving a request from the Pension

Benefit Guaranty Corporation or from the necessary number of employees who qualify as interested parties, notify the Secretary of the

Treasury, the Pension Benefit Guaranty Corporation, and such employees with respect to

whether he is going to comment on the application to which the request relates and with respect to any matters raised in such request on

which he is not going to comment. If the Secretary of Labor indicates in the notice required

under the preceding sentence that he is not

going to comment on all or part of the matters

raised in such request, the Secretary of the

Treasury shall afford the corporation, and such

employees, an opportunity to comment on the

application with respect to any matter on which

the Secretary of Labor has declined to comment.

(c) Intervention by Pension Benefit Guaranty

Corporation or Secretary of Labor into declaratory judgment action under section 7476

of title 26, action by Corporation authorized

The Pension Benefit Guaranty Corporation

and, upon petition of a group of employees referred to in subsection (b)(2) of this section, the

Secretary of Labor, may intervene in any action

brought for declaratory judgment under section

7476 of title 26 in accordance with the provisions

of such section. The Pension Benefit Guaranty

Corporation is permitted to bring an action

under such section 7476 under such rules as may

be prescribed by the United States Tax Court.
Page 483 TITLE 29—LABOR § 1202

(d) Notification and information by Secretary of

the Treasury to Secretary of Labor upon issuance by Secretary of the Treasury of a determination letter to applicant

If the Secretary of the Treasury determines

that a plan or trust to which this section applies

meets the applicable requirements of part I of

subchapter D of chapter 1 of title 26 and issues

a determination letter to the applicant, the Secretary shall notify the Secretary of Labor of his

determination and furnish such information and

material relating to the application and determination held by the Secretary of the Treasury

as the Secretary of Labor may request for the

proper administration of subchapter I of this

chapter. The Secretary of Labor shall accept the

determination of the Secretary of the Treasury

as prima facie evidence of initial compliance by

the plan with the standards of parts 2, 3, and 4

of subtitle B of subchapter I of this chapter. The

determination of the Secretary of the Treasury

shall not be prima facie evidence on issues relating solely to part 4 of subtitle B of subchapter I

of this chapter. If an application for such a determination is withdrawn, or if the Secretary of

the Treasury issues a determination that the

plan or trust does not meet the requirements of

such part I, the Secretary shall notify the Secretary of Labor of the withdrawal or determination.

(e) Effective date

This section does not apply with respect to an

application for any plan received by the Secretary of the Treasury before the date on which

section 410 of title 26 applies to the plan, or on

which such section will apply if the plan is determined by the Secretary to be a qualified plan.

(Pub. L. 93–406, title III, §3001, Sept. 2, 1974, 88

Stat. 995; Pub. L. 100–203, title IX, §9343(b), Dec.

22, 1987, 101 Stat. 1330–372; Pub. L. 101–239, title

VII, §7891(a)(1), Dec. 19, 1989, 103 Stat. 2445.)

AMENDMENTS

1989—Subsecs. (a), (b)(1), (c) to (e). 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—Subsec. (d). Pub. L. 100–203 inserted after second

sentence ‘‘The determination of the Secretary of the

Treasury shall not be prima facie evidence on issues relating solely to part 4 of subtitle B of subchapter I of

this chapter.’’

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.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1140, 1141 of this

title; title 26 section 7476.

§ 1202. Procedures with respect to continued

compliance with Internal Revenue requirements relating to participation, vesting, and

funding standards

(a) Notification by Secretary of the Treasury to

Secretary of Labor of issuance of a preliminary notice of intent to disqualify or of commencement of proceedings to determine satisfaction of requirements

In carrying out the provisions of part I of subchapter D of chapter 1 of title 26 with respect to

whether a plan or a trust meets the requirements of section 410(a) or 411 of title 26 (relating

to minimum participation standards and minimum vesting standards, respectively), the Secretary of the Treasury shall notify the Secretary of Labor when the Secretary of the Treasury issues a preliminary notice of intent to disqualify related to the plan or trust or, if earlier,

at the time of commencing any proceeding to

determine whether the plan or trust satisfies

such requirements. Unless the Secretary of the

Treasury finds that the collection of a tax imposed under the Internal Revenue Code of 1986 is

in jeopardy, the Secretary of the Treasury shall

not issue a determination that the plan or trust

does not satisfy the requirements of such section until the expiration of a period of 60 days

after the date on which he notifies the Secretary

of Labor of such review. The Secretary of the

Treasury, in his discretion, may extend the 60-

day period referred to in the preceding sentence

if he determines that such an extension would

enable the Secretary of Labor to obtain compliance with such requirements by the plan within

the extension period. Except as otherwise provided in this chapter, the Secretary of Labor

shall not generally apply part 2 of subtitle B of

subchapter I of this chapter to any plan or trust

subject to sections 410(a) and 411 of title 26, but

shall refer alleged general violations of the vesting or participation standards to the Secretary

of the Treasury. (The preceding sentence shall

not apply to matters relating to individuals benefits.)

(b) Notification to Secretary of Labor before Secretary of the Treasury sends notice of deficiency under section 4971 of title 26; waiver

of imposition of tax; requests for investigation; consultation

Unless the Secretary of the Treasury finds

that the collection of a tax is in jeopardy, in

carrying out the provisions of section 4971 of

title 26 (relating to taxes on the failure to meet

minimum funding standards), the Secretary of

the Treasury shall notify the Secretary of Labor

before sending a notice of deficiency with respect to any tax imposed under that section on

an employer, and, in accordance with the provisions of subsection (d) of that section, afford the

Secretary of Labor an opportunity to comment

on the imposition of the tax in the case. The

Secretary of the Treasury may waive the imposition of the tax imposed under section 4971(b) of

title 26 in appropriate cases. Upon receiving a

written request from the Secretary of Labor or

from the Pension Benefit Guaranty Corporation,

the Secretary of the Treasury shall cause an investigation to be commenced expeditiously with