Source: https://www.law.cornell.edu/uscode/text/29/1002.html
Timestamp: 2020-07-08 05:59:52
Document Index: 16564740

Matched Legal Cases: ['§ 1002', '§\u202f1002', 'art 4', 'art 4', '§\u202f3', '§\u202f302', '§\u202f407', '§\u202f302', '§\u202f11016', '§\u202f9203', '§\u202f1879', '§\u202f136', '§\u202f7871', '§\u202f12002', '§\u202f2', '§\u202f308', '§\u202f1', '§\u202f611', '§\u202f905', '§\u202f1104', '§\u202f6611', '§\u202f111', '§\u202f101', '§\u202f101', '§\u202f101', '§\u202f101', '§\u202f101', '§\u202f101', '§\u202f1', '§\u202f3', '§\u202f7891', '§\u202f7893', '§\u202f7894', '§\u202f7894', '§\u202f7894', '§\u202f136', '§\u202f302', '§\u202f1', 'art 4', 'ART 2510', 'ART 2570', 'ART 2571']

29 U.S. Code § 1002 - Definitions | U.S. Code | US Law | LII / Legal Information Institute
Section 1002. Definitions
29 U.S. Code § 1002. Definitions
The term “adequate consideration” when used in part 4 of subtitle B means (A) in the case of a security for which there is a generally recognized market, either (i) the price of the security prevailing on a national securities exchange which is registered under section 78f of title 15, or (ii) if the security is not traded on such a national securities exchange, a price not less favorable to the plan than the offering price for the security as established by the current bid and asked prices quoted by persons independent of the issuer and of any party in interest; and (B) in the case of an asset other than a security for which there is a generally recognized market, the fair market value of the asset as determined in good faith by the trustee or named fiduciary pursuant to the terms of the plan and in accordance with regulations promulgated by the Secretary.
(41) [4] Single-employer plan.—
the [5] term “plan assets” means plan assets as defined by such regulations as the Secretary may prescribe, except that under such regulations the assets of any entity shall not be treated as plan assets if, immediately after the most recent acquisition of any equity interest in the entity, less than 25 percent of the total value of each class of equity interest in the entity is held by benefit plan investors. For purposes of determinations pursuant to this paragraph, the value of any equity interest held by a person (other than such a benefit plan investor) who has discretionary authority or control with respect to the assets of the entity or any person who provides investment advice for a fee (direct or indirect) with respect to such assets, or any affiliate of such a person, shall be disregarded for purposes of calculating the 25 percent threshold. An entity shall be considered to hold plan assets only to the extent of the percentage of the equity interest held by benefit plan investors. For purposes of this paragraph, the term “benefit plan investor” means an employee benefit plan subject to part 4,[6] any plan to which section 4975 of title 26 applies, and any entity whose underlying assets include plan assets by reason of a plan’s investment in such entity.
(Pub. L. 93–406, title I, § 3, Sept. 2, 1974, 88 Stat. 833; Pub. L. 96–364, title III, §§ 302, 305, title IV, §§ 407(a), 409, Sept. 26, 1980, 94 Stat. 1291, 1294, 1303, 1307; Pub. L. 97–473, title III, § 302(a), Jan. 14, 1983, 96 Stat. 2612; Pub. L. 99–272, title XI, § 11016(c)(1), Apr. 7, 1986, 100 Stat. 273; Pub. L. 99–509, title IX, § 9203(b)(1), Oct. 21, 1986, 100 Stat. 1979; Pub. L. 99–514, title XVIII, § 1879(u)(3), Oct. 22, 1986, 100 Stat. 2913; Pub. L. 100–202, § 136(a), Dec. 22, 1987, 101 Stat. 1329–441; Pub. L. 101–239, title VII, §§ 7871(b)(2), 7881(m)(2)(D), 7891(a)(1), 7893(a), 7894(a)(1)(A), (2)(A), (3), (4), Dec. 19, 1989, 103 Stat. 2435, 2444, 2445, 2447, 2448; Pub. L. 101–508, title XII, § 12002(b)(2)(C), Nov. 5, 1990, 104 Stat. 1388–566; Pub. L. 102–89, § 2, Aug. 14, 1991, 105 Stat. 446; Pub. L. 104–290, title III, § 308(b)(1), Oct. 11, 1996, 110 Stat. 3440; Pub. L. 105–72, § 1(a), Nov. 10, 1997, 111 Stat. 1457; Pub. L. 109–280, title VI, § 611(f), title IX, §§ 905(a), 906(a)(2)(A), title XI, §§ 1104(c), 1106(a), Aug. 17, 2006, 120 Stat. 972, 1050, 1051, 1060; Pub. L. 110–28, title VI, § 6611(a)(1), (b)(1), May 25, 2007, 121 Stat. 179, 180; Pub. L. 110–458, title I, § 111(c), Dec. 23, 2008, 122 Stat. 5113; Pub. L. 116–94, div. O, title I, § 101(b), (c)(1), (3), Dec. 20, 2019, 133 Stat. 3141, 3144.)
Pub. L. 116–94, div. O, title I, § 101(b), (c)(1), (3), (e), Dec. 20, 2019, 133 Stat. 3141, 3144, 3145, provided that, applicable to plan years beginning after Dec. 31, 2020, this section is amended as follows:
“(ii) a plan to which section 1060(a) of this title applies.”;
(2) in paragraph (16)(B)—
(A) by striking “or” at the end of clause (ii), and
(B) by striking the period at the end and inserting “, or (iv) in the case of a pooled employer plan, the pooled plan provider.”;
(3) by striking the second paragraph (41); and
(43) Pooled employer plan.—
(A) In general.—The term “pooled employer plan” means a plan—
(i) which is an individual account plan established or maintained for the purpose of providing benefits to the employees of 2 or more employers;
(ii) which is a plan described in section 401(a) of title 26 which includes a trust exempt from tax under section 501(a) of title 26 or a plan that consists of individual retirement accounts described in section 408 of title 26 (including by reason of subsection (c) thereof); and
(iii) the terms of which meet the requirements of subparagraph (B).
(B) Requirements for plan terms.—The requirements of this subparagraph are met with respect to any plan if the terms of the plan—
(i) designate a pooled plan provider and provide that the pooled plan provider is a named fiduciary of the plan;
(ii) designate one or more trustees meeting the requirements of section 408(a)(2) of title 26 (other than an employer in the plan) to be responsible for collecting contributions to, and holding the assets of, the plan and require such trustees to implement written contribution collection procedures that are reasonable, diligent, and systematic;
(iii) provide that each employer in the plan retains fiduciary responsibility for—
(I) the selection and monitoring in accordance with section 1104(a) of this title of the person designated as the pooled plan provider and any other person who, in addition to the pooled plan provider, is designated as a named fiduciary of the plan; and
(II) to the extent not otherwise delegated to another fiduciary by the pooled plan provider and subject to the provisions of section 1104(c) of this title, the investment and management of the portion of the plan’s assets attributable to the employees of the employer (or beneficiaries of such employees);
(iv) provide that employers in the plan, and participants and beneficiaries, are not subject to unreasonable restrictions, fees, or penalties with regard to ceasing participation, receipt of distributions, or otherwise transferring assets of the plan in accordance with section 1058 of this title or paragraph (44)(C)(i)(II);
(v) require—
(I) the pooled plan provider to provide to employers in the plan any disclosures or other information which the Secretary may require, including any disclosures or other information to facilitate the selection or any monitoring of the pooled plan provider by employers in the plan; and
(II) each employer in the plan to take such actions as the Secretary or the pooled plan provider determines are necessary to administer the plan or for the plan to meet any requirement applicable under this chapter or title 26 to a plan described in section 401(a) of title 26 or to a plan that consists of individual retirement accounts described in section 408 of title 26 (including by reason of subsection (c) thereof), whichever is applicable, including providing any disclosures or other information which the Secretary may require or which the pooled plan provider otherwise determines are necessary to administer the plan or to allow the plan to meet such requirements; and
(vi) provide that any disclosure or other information required to be provided under clause (v) may be provided in electronic form and will be designed to ensure only reasonable costs are imposed on pooled plan providers and employers in the plan.
(C) Exceptions.—The term “pooled employer plan” does not include—
(i) a multiemployer plan; or
(ii) a plan established before December 20, 2019, unless the plan administrator elects that the plan will be treated as a pooled employer plan and the plan meets the requirements of this subchapter applicable to a pooled employer plan established on or after such date.
(D) Treatment of employers as plan sponsors.—Except with respect to the administrative duties of the pooled plan provider described in paragraph (44)(A)(i), each employer in a pooled employer plan shall be treated as the plan sponsor with respect to the portion of the plan attributable to employees of such employer (or beneficiaries of such employees).
(44) Pooled plan provider.—
(A) In general.—The term “pooled plan provider” means a person who—
(i) is designated by the terms of a pooled employer plan as a named fiduciary, as the plan administrator, and as the person responsible for the performance of all administrative duties (including conducting proper testing with respect to the plan and the employees of each employer in the plan) which are reasonably necessary to ensure that—
(I) the plan meets any requirement applicable under this chapter or title 26 to a plan described in section 401(a) of title 26 or to a plan that consists of individual retirement accounts described in section 408 of title 26 (including by reason of subsection (c) thereof), whichever is applicable; and
(II) each employer in the plan takes such actions as the Secretary or pooled plan provider determines are necessary for the plan to meet the requirements described in subclause (I), including providing the disclosures and information described in paragraph (43)(B)(v)(II);
(ii) registers as a pooled plan provider with the Secretary, and provides to the Secretary such other information as the Secretary may require, before beginning operations as a pooled plan provider;
(iii) acknowledges in writing that such person is a named fiduciary, and the plan administrator, with respect to the pooled employer plan; and
(iv) is responsible for ensuring that all persons who handle assets of, or who are fiduciaries of, the pooled employer plan are bonded in accordance with section 1112 of this title.
(B) Audits, examinations and investigations.—The Secretary may perform audits, examinations, and investigations of pooled plan providers as may be necessary to enforce and carry out the purposes of this paragraph and paragraph (43).
(C) Guidance.—The Secretary shall issue such guidance as the Secretary determines appropriate to carry out this paragraph and paragraph (43), including guidance—
(i) to identify the administrative duties and other actions required to be performed by a pooled plan provider under either such paragraph; and
(ii) which requires in appropriate cases that if an employer in the plan fails to take the actions required under subparagraph (A)(i)(II)—
(I) the assets of the plan attributable to employees of such employer (or beneficiaries of such employees) are transferred to a plan maintained only by such employer (or its successor), to an eligible retirement plan as defined in section 402(c)(8)(B) of title 26 for each individual whose account is transferred, or to any other arrangement that the Secretary determines is appropriate in such guidance; and
(II) such employer (and not the plan with respect to which the failure occurred or any other employer in such plan) shall, except to the extent provided in such guidance, be liable for any liabilities with respect to such plan attributable to employees of such employer (or beneficiaries of such employees).
(D) Good faith compliance with law before guidance.—An employer or pooled plan provider shall not be treated as failing to meet a requirement of guidance issued by the Secretary under subparagraph (C) if, before the issuance of such guidance, the employer or pooled plan provider complies in good faith with a reasonable interpretation of the provisions of this paragraph, or paragraph (43), to which such guidance relates.
(E) Aggregation rules.—For purposes of this paragraph, in determining whether a person meets the requirements of this paragraph to be a pooled plan provider with respect to any plan, all persons who perform services for the plan and who are treated as a single employer under subsection (b), (c), (m), or (o) of section 414 of title 26 shall be treated as one person.
2019—Par. (2)(C). Pub. L. 116–94, § 101(b), added subpar. (C).
Par. (16)(B)(iv). Pub. L. 116–94, § 101(c)(3)(A), added cl. (iv).
Par. (41). Pub. L. 116–94, § 101(c)(3)(B), struck out second par. (41) which read as follows: “The term ‘single-employer plan’ means a plan which is not a multiemployer plan.”
Pars. (43), (44). Pub. L. 116–94, § 101(c)(1), added pars. (43) and (44).
Amendment by Pub. L. 116–94 applicable to plan years beginning after Dec. 31, 2020, see section 101(e) of Pub. L. 116–94, set out as a note under section 408 of Title 26, Internal Revenue Code.
Pub. L. 105–72, § 1(c), Nov. 10, 1997, 111 Stat. 1457, provided that:
“The amendments made by subsection (a) [amending this section] shall take effect on July 8, 1997, except that the requirement of section 3(38)(B)(ii) of the Employee Retirement Income Security Act of 1974 [section 1002(38)(B)(ii) of this title] (as amended by this Act) for filing with the Secretary of Labor of a copy of a registration form which has been filed with a State before the date of the enactment of this Act [Nov. 10, 1997], or is to be filed with a State during the 1-year period beginning with such date, shall be treated as satisfied upon the filing of such a copy with the Secretary at any time during such 1-year period. This section shall supersede section 308(b) of the National Securities Markets Improvement Act of 1996 [Pub. L. 104–290, amending this section and enacting provisions set out as an Effective and Termination Dates of 1996 Amendment note below] (and the amendment made thereby).”
Pub. L. 102–89, § 3, Aug. 14, 1991, 105 Stat. 446, provided that:
“The amendments made by section 2 [amending this section] shall take effect on the date of the enactment of this Act [Aug. 14, 1991].”
Pub. L. 101–239, title VII, § 7891(f), Dec. 19, 1989, 103 Stat. 2447, provided that:
“Except as otherwise provided in this section, any amendment made by this section [amending this section, sections 1003, 1025, 1051 to 1056, 1060, 1061, 1081 to 1084, 1085a, 1101, 1103, 1107, 1108, 1132, 1134, 1137, 1161, 1166, 1167, 1201 to 1203, 1222, 1301, 1302, 1307, 1309, 1321 to 1322a, 1342 to 1345, 1362, 1368, 1384, 1385, 1390, 1391, 1393, 1403, 1421, 1423, 1425, and 1453 of this title, and section 4980B of Title 26] shall take effect as if included in the provision of the Reform Act [probably means Tax Reform Act of 1986, Pub. L. 99–514] to which such amendment relates.”
Pub. L. 101–239, title VII, § 7893(h), Dec. 19, 1989, 103 Stat. 2448, provided that:
“Any amendment made by this section [amending this section and sections 1322a, 1341, 1342, 1347, 1366, 1367, and 1398 of this title] shall take effect as if included in the provision of the Single-Employer Pension Plan Amendments Act of 1986 [Pub. L. 99–272, title XI] to which such amendment relates.”
Pub. L. 101–239, title VII, § 7894(a)(1)(B), Dec. 19, 1989, 103 Stat. 2448, provided that:
“The amendments made by subparagraph (A) [amending this section] shall take effect as if included in section 407 of the Multiemployer Pension Plan Amendments Act of 1980 [Pub. L. 96–364].”
Pub. L. 101–239, title VII, § 7894(a)(2)(B), Dec. 19, 1989, 103 Stat. 2448, provided that:
“The amendment made by this paragraph [amending this section] shall take effect as if included in section 136 of Public Law 100–202.”
Pub. L. 101–239, title VII, § 7894(i), Dec. 19, 1989, 103 Stat. 2452, provided that:
“Except as otherwise provided in this section, any amendment made by this section [amending this section and sections 1021, 1024 to 1026, 1028, 1031, 1051 to 1056, 1060, 1061, 1081, 1082, 1084, 1086, 1103, 1107, 1108, 1113, 1114, 1132, 1144, 1321 to 1322a, 1344, 1368, and 1461 of this title] shall take effect 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.”
Pub. L. 100–202, § 136(b), Dec. 22, 1987, 101 Stat. 1329–442, provided that:
“The amendment made by this section [amending this section] shall apply to years beginning after the date of the enactment of this joint resolution [Dec. 22, 1987].”
Pub. L. 97–473, title III, § 302(c), Jan. 14, 1983, 96 Stat. 2612, provided that:
“The amendments made by this section [amending this section and section 1144 of this title] shall take effect on the date of the enactment of this Act [Jan. 14, 1983].”
Pub. L. 105–72, § 1(b), Nov. 10, 1997, 111 Stat. 1457, provided that:
“A fiduciary shall be treated as meeting the requirements of section 3(38)(B)(ii) of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1002(38)(B)(ii)] (as amended by subsection (a)) relating to provision to the Secretary of Labor of a copy of the form referred to therein, if a copy of such form (or substantially similar information) is available to the Secretary of Labor from a centralized electronic or other record-keeping database.”
[4]  So in original. Two pars. (41) have been enacted.
[5]  So in original. Probably should be “The”.
[6]  So in original. Probably should be “part 4 of subtitle B,”.
29 CFR PART 2510 - DEFINITION OF TERMS USED IN SUBCHAPTERS C, D, E, F, G, AND L OF THIS CHAPTER
29 CFR PART 2570 - PROCEDURAL REGULATIONS UNDER THE EMPLOYEE RETIREMENT INCOME SECURITY ACT
29 CFR PART 2571 - PROCEDURAL REGULATIONS FOR ADMINISTRATION AND ENFORCEMENT UNDER THE EMPLOYEE RETIREMENT INCOME SECURITY ACT