Page 403 TITLE 29—LABOR § 1057

treated as a spouse of the participant for such purposes)’’.

Subsec. (d)(3)(F)(ii). Pub. L. 99–514, §1898(c)(7)(B)(i),

inserted ‘‘surviving’’ before ‘‘former spouse’’.

Subsec. (d)(3)(G)(i)(I). Pub. L. 99–514, §1898(c)(7)(B)(ii),

substituted ‘‘each’’ for ‘‘any other’’.

Subsec. (d)(3)(H)(i). Pub. L. 99–514, §1898(c)(2)(B)(i),

substituted ‘‘shall separately account for the amounts

(hereinafter in this subparagraph referred to as the

‘segregated amounts’)’’ for ‘‘shall segregate in a separate account in the plan or in an escrow account the

amounts’’.

Subsec. (d)(3)(H)(ii), (iii). Pub. L. 99–514,

§1898(c)(2)(B)(ii), (iii), substituted ‘‘the 18-month period

described in clause (v)’’ for ‘‘18 months’’ and ‘‘including

any interest’’ for ‘‘plus any interest’’.

Subsec. (d)(3)(H)(iv). Pub. L. 99–514, §1898(c)(2)(B)(iv),

inserted ‘‘described in clause (v)’’.

Subsec. (d)(3)(H)(v). Pub. L. 99–514, §1898(c)(2)(B)(v),

added cl. (v).

Subsec. (d)(3)(L). Pub. L. 99–514, §1898(c)(4)(B), added

subpar. (L) and redesignated former subpar. (L) as (N).

Subsec. (d)(3)(M). Pub. L. 99–514, §1898(c)(5), added

subpar. (M).

Subsec. (d)(3)(N). Pub. L. 99–514, §1898(c)(4)(B), redesignated subpar. (L) as (N).

1984—Subsec. (d)(3). Pub. L. 98–397 added par. (3).

EFFECTIVE DATE OF 1997 AMENDMENT

Amendment by Pub. L. 105–34 applicable to judgments, orders, and decrees issued, and settlement

agreements entered into, on or after Aug. 5, 1997, see

section 1502(c) of Pub. L. 105–34, set out as a note under

section 401 of Title 26, Internal Revenue Code.

EFFECTIVE DATE OF 1994 AMENDMENT

Section 761(b) of Pub. L. 103–465 provided that:

‘‘(1) IN GENERAL.—Except as provided in paragraph (2),

the amendments made by this section [amending this

section and sections 1082, 1132, and 1301 of this title]

shall apply to plan years beginning after December 31,

1994.

‘‘(2) CONTRIBUTING SPONSOR.—The amendment made

by subsection (a)(11) [amending section 1301 of this

title] shall be effective as if included in the Pension

Protection Act [Pub. L. 100–203, title IX, subtitle D,

part II, §§9302–9346].’’

Section 776(e) of Pub. L. 103–465 provided that: ‘‘The

provisions of this section [enacting section 1350 of this

title and amending this section and sections 1303, 1305,

and 1341 of this title and section 401 of Title 26, Internal

Revenue Code] shall be effective with respect to distributions that occur in plan years commencing after

final regulations implementing these provisions are

prescribed by the Pension Benefit Guaranty Corporation.’’ [Final implementing regulations were issued

Nov. 22, 1995, effective for distributions in plan years

beginning on or after Jan. 1, 1996. See 60 F.R. 61740.]

EFFECTIVE DATE OF 1989 AMENDMENT

Amendment by section 7891(a)(1) of 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.

Amendment by section 7894(c)(8) of Pub. L. 101–239 effective, except as otherwise provided, as if originally

included in the provision of the Employee Retirement

Income Security Act of 1974, Pub. L. 93–406, to which

such amendment relates, see section 7894(i) of Pub. L.

101–239, set out as a note under section 1002 of this title.

Section 7894(c)(9)(B) of Pub. L. 101–239 provided that:

‘‘The amendment made by subparagraph (A) [amending

this section] shall take effect as if included in section

104 of the Retirement Equity Act of 1984 [Pub. L.

98–397].’’

EFFECTIVE DATE OF 1986 AMENDMENT

Amendment by Pub. L. 99–514 effective as if included

in the provision of the Retirement Equity Act of 1984,

Pub. L. 98–397, to which such amendment relates, except as otherwise provided, see section 1898(j) of Pub. L.

99–514, set out as a note under section 401 of Title 26, Internal Revenue Code.

EFFECTIVE DATE OF 1984 AMENDMENT

Amendment by Pub. L. 98–397 effective Jan. 1, 1985,

except as otherwise provided, see section 303(d) of Pub.

L. 98–397, set out as a note under section 1001 of this

title.

PLAN AMENDMENTS NOT REQUIRED UNTIL

JANUARY 1, 1989

For provisions directing that if any amendments

made by subtitle A or subtitle C of title XI [§§1101–1147

and 1171–1177] or title XVIII [§§1800–1899A] of Pub. L.

99–514 require an amendment to any plan, such plan

amendment shall not be required to be made before the

first plan year beginning on or after Jan. 1, 1989, see

section 1140 of Pub. L. 99–514, as amended, 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 623, 1021, 1053,

1054, 1061, 1132, 1144, 1301, 1322, 1344 of this title.

§ 1057. Temporary variances from certain vesting

requirements

In the case of any plan maintained on January

1, 1974, if not later than 2 years after September

2, 1974, the administrator petitions the Secretary, the Secretary may prescribe an alternate method which shall be treated as satisfying

the requirements of section 1053(a)(2) or

1054(b)(1) (other than subparagraph (D) thereof)

of this title or both for a period of not more

than 4 years. The Secretary may prescribe such

alternate method only when he finds that—

(1) the application of such requirements

would increase the costs of the plan to such an

extent that there would result a substantial

risk to the voluntary continuation of the plan

or a substantial curtailment of benefit levels

or the levels of employees’ compensation.

(2) the application of such requirements or

discontinuance of the plan would be adverse to

the interests of plan participants in the aggregate, and

(3) a waiver or extension of time granted

under section 1083 or 1084 of this title would be

inadequate.

In the case of any plan with respect to which an

alternate method has been prescribed under the

preceding provisions of this subsection for a period of not more than 4 years, if, not later than

1 year before the expiration of such period, the

administrator petitions the Secretary for an extension of such alternate method, and the Secretary makes the findings required by the preceding sentence, such alternate method may be

extended for not more than 3 years.

(Pub. L. 93–406, title I, §207, Sept. 2, 1974, 88 Stat.

865.)

REGULATIONS

Secretary authorized, effective Sept. 2, 1974, to promulgate regulations wherever provisions of this subchapter call for the promulgation of regulations, see

section 1031 of this title.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1143 of this title.
§ 1058 TITLE 29—LABOR Page 404

§ 1058. Mergers and consolidations of plans or

transfers of plan assets

A pension plan may not merge or consolidate

with, or transfer its assets or liabilities to, any

other plan after September 2, 1974, unless each

participant in the plan would (if the plan then

terminated) receive a benefit immediately after

the merger, consolidation, or transfer which is

equal to or greater than the benefit he would

have been entitled to receive immediately before the merger, consolidation, or transfer (if

the plan had then terminated). The preceding

sentence shall not apply to any transaction to

the extent that participants either before or

after the transaction are covered under a multiemployer plan to which subchapter III of this

chapter applies.

(Pub. L. 93–406, title I, §208, Sept. 2, 1974, 88 Stat.

865; Pub. L. 96–364, title IV, §402(b)(1), Sept. 26,

1980, 94 Stat. 1299.)

AMENDMENTS

1980—Pub. L. 96–364 substituted provisions respecting

applicability of preceding sentence to transactions

under a covered multiemployer plan to which subchapter III applies, for provisions relating to applicability of paragraph to a multiemployer plan only to extent determined by Corporation.

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 1061, 1343, 1344

of this title.

§ 1059. Recordkeeping and reporting requirements

(a)(1) Except as provided by paragraph (2)

every employer shall, in accordance with regulations prescribed by the Secretary, maintain

records with respect to each of his employees

sufficient to determine the benefits due or which

may become due to such employees. The plan

administrator shall make a report, in such manner and at such time as may be provided in regulations prescribed by the Secretary, to each employee who is a participant under the plan and

who—

(A) requests such report, in such manner and

at such time as may be provided in such regulations,

(B) terminates his service with the employer, or

(C) has a 1-year break in service (as defined

in section 1053(b)(3)(A) of this title).

The employer shall furnish to the plan administrator the information necessary for the administrator to make the reports required by the preceding sentence. Not more than one report shall

be required under subparagraph (A) in any 12-

month period. Not more than one report shall be

required under subparagraph (C) with respect to

consecutive 1-year breaks in service. The report

required under this paragraph shall be sufficient

to inform the employee of his accrued benefits

under the plan and the percentage of such benefits which are nonforfeitable under the plan.

(2) If more than one employer adopts a plan,

each such employer shall, in accordance with

regulations prescribed by the Secretary, furnish

to the plan administrator the information necessary for the administrator to maintain the

records and make the reports required by paragraph (1). Such administrator shall maintain the

records and, to the extent provided under regulations prescribed by the Secretary, make the

reports, required by paragraph (1).

(b) If any person who is required, under subsection (a) of this section, to furnish information or maintain records for any plan year fails

to comply with such requirement, he shall pay

to the Secretary a civil penalty of $10 for each

employee with respect to whom such failure occurs, unless it is shown that such failure is due

to reasonable cause.

(Pub. L. 93–406, title I, §209, Sept. 2, 1974, 88 Stat.

865.)

REGULATIONS

Secretary authorized, effective Sept. 2, 1974, to promulgate regulations wherever provisions of this subchapter call for the promulgation of regulations, see

section 1031 of this title.

§ 1060. Multiple employer plans

(a) Plan maintained by more than one employer

Notwithstanding any other provision of this

part or part 3, the following provisions of this

subsection shall apply to a plan maintained by

more than one employer:

(1) Section 1052 of this title shall be applied

as if all employees of each of the employers

were employed by a single employer.

(2) Sections 1053 and 1054 of this title shall be

applied as if all such employers constituted a

single employer, except that the application of

any rules with respect to breaks in service

shall be made under regulations prescribed by

the Secretary.

(3) The minimum funding standard provided

by section 1082 of this title shall be determined as if all participants in the plan were

employed by a single employer.

(b) Maintenance of plan of predecessor employer

For purposes of this part and part 3—

(1) in any case in which the employer maintains a plan of a predecessor employer, service

for such predecessor shall be treated as service

for the employer, and

(2) in any case in which the employer maintains a plan which is not the plan maintained

by a predecessor employer, service for such

predecessor shall, to the extent provided in

regulations prescribed by the Secretary of the

Treasury, be treated as service for the employer.

(c) Plan maintained by controlled group of corporations

For purposes of sections 1052, 1053, and 1054 of

this title, all employees of all corporations

which are members of a controlled group of corporations (within the meaning of section 1563(a)

of title 26, determined without regard to section

1563(a)(4) and (e)(3)(C) of title 26) shall be treated

as employed by a single employer. With respect

to a plan adopted by more than one such cor-