An act to amend the Employee Retirement Income Security Act of 1974, and the Internal Revenue Code of 1954 to improve retirement income security under private multiemployer pension plans by strengthening the funding requirements for those plans, to authorize plan preservation measures for financially troubled multiemployer pension plans, and to revise the manner in which the pension plan termination insurance provisions apply to multiemployer plans, and for other purposes.
PL 96-364 (H.R.3904), enacted 09/26/1980

94 STAT. 1208 
PUBLIC LAW 96-364—SEPT. 26, 1980 
Public Law 96-364 
96th Congress 
An Act 
Sept. 26, 1980 
[H.R. 3904] 
Multiemployer 
Pension Plan 
Amendments 
Act of 1980. 
29 u s e 1001 
note. 
To amend the Employee Retirement Income Security Act of 1974 and the Internal 
Revenue Code of 1954 to improve retirement income security under private 
multiemployer pension plans by strengthening the funding requirements for 
those plans, to authorize plan preservation measures for financially troubled 
multiemployer pension plans, and to revise the manner in which the pension plan 
termination insurance provisions apply to multiemployer plans, and for other 
purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of 
America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the "Multiemployer Pension Plan Amend-
ments Act of 1980". 
SEC. 
2
. 
TABLE 
O
P
" 
CONTENTS. 
The table of contents is as follows: 
T
A
B
L
E OF C
O
N
T
E
N
T
S 
Sec. 1. Short title. 
Sec. 2. Table of contents. 
Sec. 3. Findings and declaration of policy. 
TITLE I-AMENDMENTS TO TITLE IV OF THE EMPLOYEE RETIREMENT 
INCOME SECURITY ACT OF 1974 
Sec. 101. 
Sec. 102. 
Sec. 103. 
Sec. 104. 
Sec. 105. 
Sec. 106. 
Sec. 107. 
Sec. 108. 
Amendment of the Employee Retirement Income Security Act of 1974. 
Multiemployer guarantees; aggregate limit on guarantees. 
Termination for multiemployer plans. 
Employer withdrawals; merger or transfer of plan assets or liabilities; re-
organization; minimum contribution requirement for multiemployer 
plans; financial assistance; benefits after termination; enforcement. 
Premiums. 
Annual report of plan administrator. 
Contingent employer liability insurance. 
Transition rules and effective dates. 
TITLE II-AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1954 
Sec. 201. Amendment of the Internal Revenue Code of 1954. 
Sec. 202. Multiemployer plans in reorganization. 
Sec. 203. Minimum funding requirements. 
Sec. 204. Excise taxes. 
Sec. 205. Deductibility of employer liability payments. 
Sec. 206. Minimum vesting requirements. 
Sec. 207. Definition of multiemployer plan. 
Sec. 208. Related technical amendments. 
Sec. 209. Withdrawal liability payments funds. 
Sec. 210. Effective date. 
TITLE III- -AMENDMENTS TO TITLE I OF THE EMPLOYEE RETIREMENT 
INCOME SECURITY ACT OF 1974 
Sec. 301. Amendment of the Employee Retirement Income Security Act of 1974. 
Sec. 302. Definition of multiemployer plan. 
Sec. 303. Minimum vesting requirements. 
PUBLIC LAW 96-364—SEPT. 26, 1980 
94 STAT. 1209 
Sec. 304. Minimum funding requirements. 
Sec. 305. Application of interested party rules to withdrawal liability payment 
funds. 
Sec. 306. Liquidated damages with respect to delinquent contributions. 
Sec. 307. Actuarial standards. 
Sec. 308. Exemptions from prohibited transactions. 
Sec. 309. Fiduciary duties. 
Sec. 310. Refund of certain withdrawal liability payments. 
TITLE IV-MISCELLANEOUS PROVISIONS 
Sec. 40L Amendment of the Employee Retirement Income Security Act of 1974. 
Sec. 402. Related technical amendments. 
Sec. 403. Conforming amendments. 
Sec. 404. Clerical amendments. 
Sec. 405. Action taken before regulations are prescribed. 
Sec. 406. Pension Benefit Guaranty Corporation put on budget. 
Sec. 407. Church plans. 
Sec. 408. Deductibility of payments to plan by a corporation operating public trans-
portation system acquired by a State. 
Sec. 409. Treatment of certain severance pay arrangements and supplemental re-
tirement income payments as welfare plans. 
Sec. 410. Refund of mistaken contributions. 
Sec. 411. Definition of employee pension benefit plan. 
Sec. 412. Studies by Pension Benefit Guaranty Corporation and Secretary of Labor. 
Sec. 413. Study by General Accounting Office; hearings required. 
Sec. 414. Treatment of certain retirement benefits. 
Sec. 415. Increase in length of service in Armed Forces required for ex-servicemen 
to be eligible for unemployment benefits. 
Sec. 416. Cessation of extended benefits when paid under an interstate plan in a 
State where extended benefit period is not in effect. 
SEC. 3. FINDINGS AND DECLARATION OF POLICY. 
29 USC 1001a. 
(a) The Congress finds that— 
(1) multiemployer pension plans have a substantial impact on 
interstate commerce and are affected with a national public 
interest; 
(2) multiemployer pension plans have accounted for a substan-
tial portion of the increase in private pension plan coverage over 
the past three decades; 
(3) the continued well-being and security of millions of em-
ployees, retirees, and their dependents are directly affected by 
multiemployer pension plans; and 
(4)(A) withdrawals of contributing employers from a multiem-
ployer pension plan frequently result in substantially increased 
funding obligations for employers who continue to contribute to 
the plan, adversely affecting the plan, its participants and 
beneficiaries, and labor-management relations, and 
(B) in a declining industry, the incidence of employer with-
drawals is higher and the adverse effects described in subpara-
graph (A) are exacerbated. 
(b) The Congress further finds that— 
(1) it is desirable to modify the current multiemployer plan 
termination insurance provisions in order to increase the likeli-
hood of protecting plan participants against benefit losses; and 
(2) it is desirable to replace the termination insurance program 
for multiemployer pension plans with an insolvency-based bene-
fit protection program that will enhance the financial soundness 
of such plans, place primary emphasis on plan continuation, and 
contain program costs within reasonable limits. 
(c) It is hereby declared to be the policy of 
this Act— 
(1) to foster and facilitate interstate commerce, 
(2) to alleviate certain problems which tend to discourage the 
maintenance and growth of multiemployer pension plans, 
94 STAT. 1210 
PUBLIC LAW 96-364—SEPT. 26, 1980 
(3) to provide reasonable protection for the interests of partici-
pants and beneficiaries of financially distressed multiemployer 
pension plans, and 
(4) to provide a financially self-sufficient program for the 
guarantee of employee benefits under multiemployer plans. 
TITLE I—AMENDMENTS TO TITLE IV OF THE EMPLOYEE 
RETIREMENT INCOME SECURITY ACT OF 1974 
SEC. 101. A
M
E
N
D
M
E
N
T OF THE EMPLOYEE RETIREMENT I
N
C
O
M
E SECU-
RITY A
C
T OF 1974. 
Whenever in this title an amendment or repeal is expressed in 
terms of an amendment to or repeal of a section or other provision, 
the reference is to a section or other provision of the Employee 
2
9 use 1001 
Retirement Income Security Act of 1974. 
note. 
SEC. 102. MULTIEMPLOYER GUARANTEES; A
G
G
R
E
G
A
T
E LIMIT O
N G
U
A
R
-
ANTEES. 
Subtitle B of title IV is amended by inserting at the end thereof the 
following new sections: 
"MULTIEMPLOYER P
L
A
N BENEFITS G
U
A
R
A
N
T
E
E
D 
2
9 use 1322a. 
"SEC. 4022A. (a) The corporation shall guarantee, in accordance 
with this section, the pa5rment of all nonforfeitable benefits (other 
than benefits becoming nonforfeitable solely on account of the 
termination of 
a plan) under a multiemployer plan— 
29 use 1321. 
"(1) to which section 4021 applies, and 
Po^, pp-1259, 
"(2) which is insolvent under section 4245(b) or 4281(d)(2). 
"(bXl)(A) For purposes of this section, a benefit or benefit increase 
which has been in effect under a plan for less than 60 months is not 
eligible for the corporation's guarantee. For purposes of this para-
graph, any month of any plan year during which the plan was 
Post, p. 1216. 
insolvent or terminated (within the meaning of section 4041A(a)(2)) 
shedl not be taken into account. 
"(B) For purposes of this section, a benefit or benefit increase 
which has been in effect under a plan for less than 60 months before 
the first day of the plan year for which an amendment reducing the 
benefit or the benefit increase is taken into account under section 
Post, p. 1257. 
4244A(aX2) in determining the minimum contribution requirement 
Post, p. 1252. 
for the plan year under section 4243(b) is not eligible for the 
corporation's guarantee. 
"(2) For purposes of this section— 
"(A) the date on which a benefit or a benefit increase under a 
plan is first in effect is the later o
f
— 
"(i) the date on which the documents establishing or 
increasing the benefit were executed, or 
"(ii) the effective date of the benefit or benefit increase; 
"(B) the period of time for which a benefit or a benefit increase 
hsis been in effect under a successor plan includes the period of 
time for which the benefit or benefit increase was in effect under 
a previously established plan; and 
2
9 use 1321. 
"(C) in the case of a plan to which section 4021 did not apply on 
September 3,1974, the time periods referred to in this section are 
computed beginning on the date on which section 4021 first 
applies to the plan. 
PUBLIC LAW 96-364—SEPT. 26, 1980 
94 STAT. 1211 
Accrual rate. 
Credited service. 
"(c)(1) Except as provided in subsection (g), the monthly benefit of a 
participant or a beneficiary which is guaranteed under this section by 
the corporation with respect to a plan is the product o
f
— 
"(A) 100 percent of the accrual rate up to $5, plus 75 percent of 
the lesser o
f
— 
"(i)$15,or 
"(ii) the accrual rate, if any, in excess of $5, and 
"(B) the number of the participant's years of credited service. 
"(2) Except as provided in paragraph (6) of this subsection and in 
subsection (g), in applying paragraph (1) with respect to a plan 
described in paragraph (5)(A), the term *65 percent' shall be substi-
tuted in paragraph (1)(A) for the term '75 percent'. 
"(3) For purposes of this section, the accrual rate is— 
"(A) the monthly benefit of the participant or beneficiary 
which is described m subsection (a) and which is eligible for the 
corporation's guarantee under subsection (b), except that such 
benefit shall be— 
"(i) no greater than the monthly benefit which would be 
payable under the plan at normal retirement age in the form 
of a single life annuity, and 
"(ii) determined without regard to any reduction under 
section 411(a)(3)(E) of the Internal Revenue Code of 1954; Post, p. 1287. 
divided by 
"(B) the participant's years of credited service. 
"(4) For purposes of this subsection— 
"(A) a year of 
credited service is a year in which the participant 
completed— 
"(i) a full year of participation in the plan, or 
"(ii) any period of service before participation which is 
credited for purposes of benefit accrual as the equivalent of a 
full year of participation; 
"(B) any year for which the participant is credited for purposes 
of benefit accrual with a fraction of the equivalent of a full year 
of participation shall be counted as such a fraction of a year of 
credited service; and 
"(C) years of credited service shall be determined by including 
service which may otherwise be disregarded by the plan under 
section 411(a)(3)(E) of the Internal Revenue Code of 1954. 
"(5)( 
A) A plan is described in this subparagraph i
f
— 
"(i) the first plan year— 
"(I) in which the plan is insolvent under section 4245(b) or 
4281(d)(2), and 
"(II) for which benefits are required to be suspended under 
section 4245, or reduced or suspended under section 4281, 
until they do not exceed the levels provided in this subsec-
tion, 
begins before the year 2000; and 
"(ii) the plan sponsor has not established to the satisfaction of 
the corporation that, during the period of 10 consecutive plan 
years (or of such lesser number of plan years for which the plan 
was maintained) immediately preceding the first plan year to 
which the minimum funding standards of section 412 of the 
Internal Revenue Code of 1954 apply, the total amount of the 
contributions required under the plan for each plan year was at 
least equal to the sum o
f
— 
"(I) the normal cost for that plan year, and 
Post, p. 1259. 
Post, p. 1261. 
26 u s e 412. 
94 STAT. 1212 
PUBLIC LAW 96-364—SEPT. 26, 1980 
"(II) the interest for the plan year (determined under the 
plan) on the unfunded past service liability for that plan 
year, determined as of the beginning of that plan year. 
"(B) A plan shall not be considered to be described in subparagraph 
(A)if-
"(i) it is established to the satisfaction of the corporation t h a t -
'll) the total amount of the contributions received under 
the plan for the plan years for which the actuarial valu-
ations (performed during the period described in subpara-
graph (A)(ii)) were performed was at least equal to the sum 
described in subparagraph (A)(ii); or 
"(II) the rates of contribution to the plan under the 
collective bargaining agreements negotiated when the find-
ings of such valuations were available were reasonably 
expected to provide such contributions; 
"(ii) the number of actuarial valuations performed during the 
period described in subparagraph (A)(ii) is— 
"(I) at least 2, in any case in which such period consists of 
more than 6 plan years, and 
"(II) at least 1, in any case in which such period consists of 
6 or fewer plan years; and 
"(iii) if the proposition described in clause (i)(I) is to be estab-
lished, the plan sponsor certifies that to the best of the plan 
sponsor's knowledge there is no information available which 
establishes that the total amount of the contributions received 
under the plan for any plan year during the period described in 
subparagraph (A)(ii) for which no valuation was performed is less 
than the sum described in subparagraph (A)(ii). 
"(6) Notwithstanding paragraph (2), in the case of a plan described 
in paragraph (5)(A), if for any period of 3 consecutive plan years 
beginning with the first plan year to which the minimum funding 
26 use 412. 
standards of section 412 of the Internal Revenue Code of 1954 apply, 
the value of the assets of the plan for each such plan year is an 
amount equal to at least 8 times the benefit payments for such plan 
year— 
"(A) paragraph (2) shall not apply to such plan; and 
"(B) the benefit of a participant or beneficiary guaranteed by 
the corporation with respect to the plan shall be an amount 
determined under paragraph (1). 
"(d) In the case of a benefit which has been reduced under section 
Post, p. 1287. 
411(a)(3)(E) of the Internal Revenue Code of 1954, the corporation 
shall guarantee the lesser o
f
— 
"(1) the reduced benefit, or 
"(2) the amount determined under subsection (c). 
"(e) The corporation shall not guarantee benefits under a multiem-
29 use 1322. 
ployer plan which, under section 4022(b)(6), would not be guaranteed 
under a single-employer plan. 
study. 
"(f)(1) No later than 5 years after the date of the enactment of the 
Ante, p. 1208. 
Multiemployer Pension Plan Amendments Act of 1980, and at least 
every fifth year thereafter, the corporation shall— 
"(A) conduct a study to determine— 
"(i) the premiums needed to maintain the basic-benefit 
guarantee levels for multiemployer plans described in sub-
section (c), and 
"(ii) whether the basic-benefit guarantee levels for mul-
tiemployer plans may be increased without increasing the 
basic-benefit premiums for multiemployer plans under this 
title; and 
PUBLIC LAW 96-364—SEPT. 26, 1980 
94 STAT. 1213 
"(B) report such determinations to the Committee on Ways and 
Means and the Committee on Education and Labor of the House 
of Representatives and to the Committee on Finance and the 
Committee on Labor and Human Resources of the Senate. 
"(2)(A) If the last report described in paragraph (1) indicates that a 
premium increase is necessary to support the existing basic-benefit 
guarantee levels for multiemployer plans, the corporation shall 
transmit to the Committee on Ways and Means and the Committee 
on Education and Labor of the House of Representatives and to the 
Committee on Finance and the Committee on Labor and Human 
Resources of the Senate by March 31 of any calendar year in which 
congressional action under this subsection is requested— 
"(i) a revised schedule of basic-benefit guarantees for multiem-
ployer plans which would be necessary in the absence of an 
increase in premiums approved in accordance with section 
4006(b), 
"(ii) a revised schedule of basic-benefit premiums for multiem-
ployer plans which is necessary to support the existing basic-
benefit guarantees for such plans, and 
"(iii) a revised schedule of basic-benefit guarantees for mul-
tiemployer plans for which the schedule of premiums necessary 
is higher than the existing premium schedule for such plans but 
lower than the revised schedule of premiums for such plans 
specified in clause (ii), together with such schedule of premiums. 
"(B) The revised schedule of increased premiums referred to in 
subparagraph (A)(ii) or (A)(iii) shall go into effect as approved by the 
Congress by concurrent resolution. 
"(C) If an increase in premiums is not approved, the revised 
guarantee schedule described in subparagraph (A)(i) shall go into 
effect on the first day of the second calendar year following the year 
in which such revised guarantee schedule was submitted to the 
Congress. 
"(3)(A) If the last report described in paragraph (1) indicates that 
basic-benefit guarantees for multiemployer plans can be increased 
without increasing the basic-benefit premiums for multiemployer 
plans under this title, the corporation shall submit to the Committee 
on Ways and Means and the Committee on Education and Labor of 
the House of Representatives and to the Committee on Finance and 
the Committee on Labor and Human Resources of the Senate by 
March 31 of the calendar year in which congressional action under 
this paragraph is requested—-
"(i) a revised schedule of increases in the basic-benefit guaran-
tees which can be supported by the existing schedule of basic-
benefit premiums for multiemployer plans, and 
"(ii) a revised schedule of basic-benefit premiums sufficient to 
support the existing basic-benefit guarantees. 
"(B) The revised schedules referred to in subparagraph (A)(i) or 
subparagraph (A)(ii) shall go into effect as approved by the Congress 
by a concurrent resolution. 
"(4)(A) The succeeding subparagraphs of this paragraph are 
enacted by the Congress as an exercise of the rulemaking power of the 
Senate and the House of Representatives, respectively, and as such 
they shall be deemed a part of the rules of each House, respectively, 
but applicable only with respect to the procedure to be followed in 
that House in the case of concurrent resolutions (as defined in 
subparagraph (B)). Such subparagraphs shall supersede other rules 
only to the extent that they are inconsistent therewith. They are 
enacted with full recognition of the constitutional right of either 
Report to 
congressional 
committees. 
Revised 
schedules, 
transmittal to 
congressional 
committees. 
Post, p. 1266. 
Revised 
schedules, 
submittal to 
congressional 
committees. 
Congressional 
approval. 
Congressional 
rulemaking 
power. 
94 STAT. 1214 
PUBLIC LAW 96-364—SEPT. 26, 1980 
"Concurrent 
resolution." 
Post, p. 1266. 
Regulations. 
Ante, p. 1208. 
Post, p. 1264. 
29 u s e 1305. 
Revised 
schedule, 
submittal to 
Congress. 
House to change the rules (so far as relating to the procedure of that 
House) at any time, in the same manner, and to the same extent as in 
the case of any rule of that House. 
"(B) For purposes of this subsection, 'concurrent resolution' means 
only a concurrent resolution, the matter after the resolving clause of 
which is as follows: 'That the Congress favors the proposed schedule 
described in 
transmitted to the Congress by the Pension 
Benefit Guaranty Corporation on 
,', the first blank space 
therein being filled with 'section 4022A(f)(2)(A)(ii) of the Employee 
Retirement Income Security Act of 1974', 'section 4022A(f)(2)(A)(iii) of 
the Employee Retirement Income Security Act of 1974', 'section 
4022A(f)(3)(A)(i) of the Employee Retirement Income Security Act of 
1974', or 'section 4022A(f)(3)(AXii) of the Employee Retirement 
Income Security Act of 1974' (whichever is applicable), and the second 
blank space therein being filled with the date on which the corpora-
tion's message proposing the revision was submitted. 
"(C) The procedure for disposition of a concurrent resolution shall 
be the procedure described in section 4006(b) (4) through (7). 
"(g)(1) The corporation may guarantee the payment of such other 
classes of benefits under multiemployer plans, and establish the 
terms and conditions under which those other classes of benefits are 
guaranteed, as it determines to be appropriate. 
"(2)(A) The corporation shall prescribe regulations to establish a 
supplemental program to guarantee benefits under multiemployer 
plans which would be guaranteed under this section but for the 
limitations in subsection (c). Such regulations shall be proposed by 
the corporation no later than the end of the 18th calendar month 
following the date of the enactment of the Multiemployer Pension 
Plan Amendments Act of 1980. The regulations shall make coverage 
under the supplemental program available no later than January 1, 
1983. Any election to participate in the supplemental program shall 
be on a voluntary basis, and a plan electing such coverage shall 
continue to pay the premiums required under section 4006(a)(2)(B) to 
the revolving fund used pursuant to section 4005 in connection with 
benefits otherwise guaranteed under this section. Any such election 
shall be irrevocable, except to the extent otherwise provided by 
regulations prescribed by the corporation. 
(B) The regulations prescribed under this paragraph shall 
provide— 
"(i) that a plan must elect coverage under the supplemental 
program within the time permitted by the regulations; 
"(ii) unless the corporation determines otherwise, that a plan 
may not elect supplemental coverage unless the value of the 
assets of the plan as of the end of the plan year preceding the 
plan year in which the election must be made is an amount equal 
to 15 times the total amount of the benefit payments made under 
the plan for that year; and 
"(iii) such other reasonable terms and conditions for supple-
mental coverage, including funding standards and any other 
reasonable limitations with respect to plans or benefits covered 
or to means of program financing, as the corporation determines 
are necessary and appropriate for a feasible supplemental pro-
gram consistent with the purposes of this title. 
"(3) Any benefits guaranteed under this subsection shall be consid-
ered nonbasic benefits for purposes of this title. 
"(4)(A) No revised schedule of premiums under this subsection, 
after the initial schedule, shall go into effect unless— 
"(i) the revised schedule is submitted to the Congress, and 
PUBLIC LAW 96-364—SEPT. 26, 1980 
94 STAT. 1215 
"(ii) a concurrent resolution described in subparagraph (B) is 
not adopted before the close of the 60th legislative day after such 
schedule is submitted to the Congress, 
"(B) For purposes of subparagraph (A), a concurrent resolution 
described in this subparagraph is a concurrent resolution the matter 
after the resolving clause of which is as follows: 'That the Congress 
disapproves the revised premium schedule transmitted to the Con-
gress by the Pension Benefit Guaranty Corporation under section 
4022A^)(4) of the Employee Retirement Income Security Act of 1974 
on 
.', the blank space therein being 
filled with the date on which the revised schedule was submitted. 
"(C) For purposes of subparagraph (A), the term 'legislative day* 
means any calendar day other than a day on which either House is 
not in session because of a sine die adjournment or an adjournment of 
more than 3 days to a day certain. 
"(D) The procedure for disposition of a concurrent resolution 
described in subparagraph (B) shall be the procedure described in 
paragraphs (4) through (7) of section 4006(b). 
"(5) Regulations prescribed by the corporation to carry out the 
provisions of this subsection, may, to the extent provided therein, 
supersede the requirements of sections 4245, 4261, and 4281, and the 
requirements of section 418E of the Internal Revenue Code of 1954, 
but only with respect to benefits guaranteed under this subsection. 
"(h)(1) Except as provided in paragraph (3), subsections O
t
)
) and (c) 
shall not apply with respect to the nonforfeitable benefits accrued as 
of July 29, 1980, with respect to a participant or beneficiary under 
a multiemployer plan— 
"(1) who is in pay status on July 29,1980, or 
"(2) who is within 36 months of the normal retirement age and 
has a nonforfeitable right to a pension as of that date. 
"(2) The benefits described in paragraph (1) shall be guaranteed by 
the corporation in the same manner and to the same extent as 
benefits are guaranteed by the corporation under section 4022 (with-
out regard to this section). 
"(3) This subsection does not apply with respect to a plan for plan 
years following a plan year— 
"(A) in which the plan has terminated within the meaning of 
section 4041A(a)(2), or 
"(B) in which it is determined by the corporation that substan-
tially all the employers have withdrawn from the plan pursuant 
to an agreement or arrangement to withdraw. 
Concurrent 
resolution. 
"Legislative 
day." 
Post, p. 1266. 
Post, pp. 1259, 
1261. 
Post, p. 1282. 
29 u s e 1322. 
Post, p. 1216. 
AGGREGATE LIMIT ON BENEFITS GUARANTEED 
"SEC. 4022B. (a) Notwithstanding sections 4022 and 4022A, no 
person shall receive from the corporation pursuant to a guarantee by 
the corporation of basic benefits with respect to a participant under 
all multiemployer and single employer plans an amount, or amounts, 
with an actuarial value which exceeds the actuarial value of a 
monthly benefit in the form of a life annuity commencing at age 65 
equal to the amount determined under section 4022(b)(3)(B) as of the 
date of the last plan termination. 
"(b) For purposes of this section— 
"(1) the receipt of benefits under a multiemployer plan receiv-
ing financial assistance from the corporation shall be considered 
the receipt of amounts from the corporation pursuant to a 
guarantee by the corporation of basic benefits except to the 
extent provided in regulations prescribed by the corporation, and 
29 u s e 1322b. 
29 u s e 1322. 
79-194 
O—81—pt. 1 
80 : QL3 
94 STAT. 1216 
PUBLIC LAW 96-364—SEPT. 26, 1980 
Plan 
termination. 
29 u s e 1341a. 
Ante, p. 1208. 
Post, p. 1218. 
29 u s e 1321. 
Post, p. 1261. 
Benefits, 
payment. 
"(2) the date on which a multiemployer plan, whether or not 
terminated, begins receiving financial assistance from the corpo-
ration shall be considered a date of plan termination.". 
SEC. 103. TERMINATION FOR MULTIEMPLOYER PLANS. 
Subtitle C of title IV is amended by inserting after section 4041 the 
following new section: 
"TERMINATION OP MULTIEMPLOYER PLANS 
"SEC. 4041A. (a) Termination of a multiemployer plan under this 
section occurs as a result of— 
"(1) the adoption after the date of enactment of the Multiem-
ployer Pension Plan Amendments Act of 1980 of a plan amend-
ment which provides that participants will receive no credit for 
any purpose under the plan for service with any employer after 
the date specified by such amendment; 
"(2) the withdrawal of every employer from the plan, within 
the meaning of section 4203, or the cessation of the obligation of 
all employers to contribute under the plan; or 
"(3) the adoption of an amendment to the plan which causes 
the plan to become a plan described in section 4021(b)(1). 
"(b)(1) The date on which a plan terminates under paragraph (1) or 
(3) of subsection (a) is the later of— 
"(A) the date on which the amendment is adopted, or 
"(B) the date on which the amendment takes effect. 
"(2) The date on which a plan terminates under paragraph (2) of 
subsection (a) is the earlier of— 
"(A) the date on which the last employer withdraws, or 
"(B) the first day of the first plan year for which no employer 
contributions were required under the plan. 
"(c) Except as provided in subsection (f)(1), the plan sponsor of a 
plan which terminates under paragraph (2) of subsection (a) shall— 
"(1) limit the payment of benefits to benefits which are 
nonforfeitable under the plan as of the date of the termination, 
and 
"(2) pay benefits attributable to employer contributions, other 
than death benefits, only in the form of an annuity, unless the 
plan assets are distributed in full satisfaction of all nonforfeit-
able benefits under the plan. 
"(d) The plan sponsor of a plan which terminates under paragraph 
(2) of subsection (a) shall reduce benefits and suspend benefit pay-
ments in accordance with section 4281. 
"(e) In the case of a plan which terminates under paragraph (1) or 
(3) of subsection (a), the rate of an employer's contributions under the 
plan for each plan year beginning on or after the plan termination 
date shall equal or exceed the highest rate of employer contributions 
at which the employer had an obligation to contribute under the plan 
in the 5 preceding plan years ending on or before the plan termina-
tion date, unless the corporation approves a reduction in the rate 
based on a finding that the plan is or soon will be fully funded. 
"(f)(1) The plan sponsor of a terminated plan may authorize the 
payment other than in the form of an annuity of a participant's 
entire nonforfeitable benefit attributable to employer contributions, 
other than a death benefit, if the value of the entire nonforfeitable 
benefit does not exceed $1,750. The corporation may authorize the 
payment of benefits under the terms of a terminated plan other than 
nonforfeitable benefits, or the payment other than in the form of an 
PUBLIC LAW 96-364—SEPT. 26, 1980 
94 STAT. 1217 
annuity of benefits having a value greater than $1,750, if the 
corporation determines that such payment is not adverse to the 
interest of the plan's participants and beneficiaries generally and 
does not unreasonably increase the corporation's risk of loss with 
respect to the plan. 
"(2) The corporation may prescribe reporting requirements for 
terminated plans, and rules and standards for the administration of 
such plans, which the corporation considers appropriate to protect 
the interests of plan participants and beneficiaries or to prevent 
unreasonable loss to the corporation.". 
SEC. 104. EMPLOYER WITHDRAWALS; MERGER OR TRANSFER OF PLAN 
ASSETS OR LIABILITIES; REORGANIZATION; MINIMUM CON-
TRIBUTION REQUIREMENT FOR MULTIEMPLOYER PLANS; 
FINANCIAL ASSISTANCE; BENEFITS AFTER TERMINATION; 
ENFORCEMENT. 
Title IV is amended— 
(1) by striking out the heading for subtitle E and inserting in 
lieu thereof the following: 
"Subtitle F—^Transition Rules and Effective 
Dates": 
Reporting 
requirements. 
and 
(2) by inserting after subtitle D the following new subtitle: 
"Subtitle E—Special Provisions for 
Multiemployer Plans 
"PART l-EMPLOYER WITHDRAWALS 
WITHDRAWAL UABIUTY ESTABLISHED 
"SEC. 4201. (a) If an employer withdraws from a multiemployer 
plan in a complete withdrawal or a partial withdrawal, then the 
employer is liable to the plan in the amount determined under this 
part to be the withdrawal liability. 
"(b) For purposes of 
subsection (a)— 
"(1) The withdrawal liability of an employer to a plan is the 
amount determined under section 4211 to be the allocable 
amount of unfunded vested benefits, adjusted— 
"(A) first, by any de minimis reduction applicable under 
section 4209, 
"(B) next, in the case of a partial withdrawal, in accord-
ance with section 4206, 
"(C) then, to the extent necessary to reflect the limitation 
on annual payments under section 4219(c)(1)(B), and 
"(D) 
finally, 
in accordance with section 4225. 
"(2) The term 'complete withdrawal' means a complete with-
drawal described in section 4203. 
"(3) The term 'partial withdrawal' means a partial withdrawal 
described in section 4205. 
29 use 1381. 
Post, p. 1243. 
"Complete 
withdrawal." 
"Partial 
withdrawal." 
94 STAT. 1218 
PUBLIC LAW 96-364—SEPT. 26, 1980 
"DETERMINATION AND COLLECTION OF LIABILITY; NOTIFICATION OF 
EMPLOYER 
29 use 1382. 
"SEC. 4202. When an employer withdraws from a multiemployer 
plan, the plan sponsor, in accordance with this part, shall— 
"(1) determine the amount of the employer's withdrawal 
liability, 
"(2) notify the employer of the amount of the withdrawal 
liability, and 
"(3) collect the amount of the withdrawal liability from the 
employer. 
"COMPLETE WITHDRAWAL 
29 use 1383. 
"SEC. 4203. (a) For purposes of this part, a complete withdrawal 
from a multiemployer plan occurs when an employer— 
"(1) permanently ceases to have an obligation to contribute 
under the plan, or 
"(2) permanently ceases all covered operations under the plan. 
"OJXD Notwithstanding subsection (a), in the case of an employer 
that has an obligation to contribute under a plan for work performed 
in the building and construction industry, a complete withdrawal 
occurs only as described in paragraph (2), if— 
"(A) substantially all the employees with respect to whom the 
employer has an obligation to contribute under the plan perform 
work in the building and construction industry, and 
"(B) the plan— 
"(i) primarily covers employees in the building and con-
struction industry, or 
"(ii) is amended to provide that this subsection applies to 
employers described in this paragraph. 
"(2) A withdrawal occurs under this paragraph if— 
"(A) an employer ceases to have an obligation to contribute 
under the plan, and 
"(B) the employer— 
"(i) continues to perform work in the jurisdiction of the 
collective bargaining agreement of the t3T)e for which contri-
butions were previously required, or 
"(ii) resumes such work within 5 years after the date 
on which the obligation to contribute under the plan 
ceases, and does not renew the obligation at the time of the 
resumption. 
"(3) In the case of a plan terminated by mass withdrawal (within 
Ante, p. 1216. 
the meaning of section 4041 
A(aX2)), paragraph (2) shall be applied by 
substituting '3 years' for '5 years' in subparagraph (BXii). 
"(cXD Notwithstanding subsection (a), in the case of an employer 
that has an obligation to contribute under a plan for work performed 
in the entertainment industry, primarily on a temporary or project-
by-project basis, if the plan primarily covers employees in the 
entertainment industry, a complete withdrawal occurs only as 
described in subsection Ot)X2) applied by substituting 'plan' for 'collec-
tive bargaining agreement' in subparagraph (BXi) thereof. 
"Entertainment 
"(2) For purposes of this subsectiou, the term 'entertainment 
industry.' 
industrv' means— 
' (A) theater, motion picture (except to the extent provided in 
regulations prescribed by the corporation), radio, television, 
sound or visual recording, music, and dance, and 
"(B) such other entertainment activities as the corporation 
may determine to be appropriate. 
PUBLIC LAW 96-364—SEPT. 26, 1980 
94 STAT. 1219 
"(3) The corporation may by regulation exclude a group or class of 
employers described in the preceding sentence from the application 
of this subsection if the corporation determines that such exclusion is 
necessary— 
"(A) to protect the interest of the plan's participants and 
beneficiaries, or 
"(B) to prevent a significant risk of loss to the corporation with 
respect to the plan. 
"(4) A plan may be amended to provide that this subsection shall 
not apply to a group or class of 
employers under the plan. 
"(dXl) Notwithstanding subsection (a), in the case of an employer 
who— 
"(A) has an obligation to contribute under a plan described in 
paragraph (2) primarily for work described in such paragraph, 
and 
"(B) does not continue to perform work within the jurisdiction 
of the plan, 
a complete withdrawal occurs only as described in paragraph (3). 
"(2) A plan is described in this paragraph if substantially all of the 
contributions required under the plan are made by employers pri-
marily engaged in the long and short haul trucking industry, the 
household goods moving industry, or the public warehousing 
industry. 
"(3) A withdrawal occurs under this paragraph i
f
— 
"(A) an employer permanently ceases to have an obligation to 
contribute under the plan or permanently ceases all covered 
operations under the plan, £md 
"(B) either— 
"(i) the corporation determines that the plan has suffered 
substantial damage to its contribution base as a result of 
such cessation, or 
"(ii) the employer fails to furnish a bond issued by a 
corporate surety company that is an acceptable surety for 
purposes of section 412, or an amount held in escrow by a 2
9 use 1112. 
bank or similar 
fincmcial 
institution satisfactory to the plan, 
in an amount equal to 50 percent of the withdrawal liability 
of the employer. 
"(4) If, after an employer furnishes a bond or escrow to a plan under Bond or escrow. 
paragraph (3)(B)(ii), the corporation determines that the cessation of 
the employer's obligation to contribute under the plan (considered 
together with any cessations by other employers), or cessation of 
covered operations under the plan, has resulted in substantial 
damage to the contribution base of the plan, the employer shall be 
treated as having withdrawn from the plan on the date on which the 
obligation to contribute or covered operations ceased, and such bond 
or escrow shall be paid to the plan. The corporation shall not make a 
determination under this paragraph more than 60 months after the 
date on which such obligation to contribute or covered operations 
ceased. 
"(5) If the corporation determines that the employer has no further 
liability under the plan either— 
"(A) because it determines that the contribution base of the 
plan has not suffered substantial damage as a result of the 
cessation of the employer's obligation to contribute or cessation 
of covered operations (considered together with any cessation of 
contribution obligation, or of covered operations, with respect to 
other employers), or 
94 STAT. 1220 
PUBLIC LAW 96-364—SEPT. 26, 1980 
29 u s e 1384. 
Bond or escrow. 
29 u s e 1112. 
Withdrawal 
liability. 
"(B) because it may not make a determination under para-
graph (4) because of the last sentence thereof, 
then the bond shall be cancelled or the escrow refunded. 
"(6) Nothing in this subsection shall be construed as a limitation on 
the amount of the withdrawal liability of any employer. 
"(e) For purposes of this part, the date of a complete withdrawal is 
the date of the cessation of the obligation to contribute or the 
cessation of covered operations. 
"(f)(1) The corporation may prescribe regulations under which 
plans in industries other than the construction or entertainment 
industries may be amended to provide for special withdrawal liability 
rules similar to the rules described in subsections (b) and (c). 
"(2) Regulations under paragraph (1) shall permit use of special 
withdrawal liability rules— 
"(A) only in industries (or portions thereof) in which, as 
determined by the corporation, the characteristics that would 
make use of such rules appropriate are clearly shown, and 
"(B) only if the corporation determines, in each instance in 
which special withdrawal liability rules are permitted, that use 
of such rules will not pose a significant risk to the corporation 
under this title. 
"SALE OF ASSETS 
"SEC. 4204. (a)(1) A complete or partial withdrawal of an employer 
(hereinafter in this section referred to as the 'seller') under this 
section does not occur solely because, as a result of a bona fide, arm's-
length sale of assets to an unrelated party (hereinafter in this section • 
referred to as the 'purchaser'), the seller ceases covered operations or 
ceases to have an obligation to contribute for such operations, if— 
"(A) the purchaser has an obligation to contribute to the plan 
with respect to the operations for substantially the same number 
of contribution base units for which the seller had an obligation 
to contribute to the plan; 
"(B) the purchaser provides to the plan for a period of 5 plan 
years commencing with the first plan year beginning after the 
sale of assets, a bond issued by a corporate surety company that is 
an acceptable surety for purposes of section 412 of this Act, or an 
amount held in escrow by a bank or similar financial institution 
satisfactory to the plan, in an amount equal to the greater o
f
—
-
"(i) the average annual contribution required to be made 
by the seller with respect to the operations under the plan 
for the 3 plan years preceding the plan year in which the sale 
of the employer's assets occurs, or 
"(ii) the annual contribution that the seller was required 
to make with respect to the operations under the plan for the 
last plan year before the plan year in which the sale of the 
assets occurs, 
which bond or escrow shall be paid to the plan if the purchaser 
withdraws from the plan, or fails to make a contribution to the 
plan when due, at any time during the first 5 plan years 
beginning after the sale; and 
(C) the contract for sale provides that, if the purchaser 
withdraws in a complete withdrawal, or a partial withdrawal 
with respect to operations, during such first 5 plan years, the 
seller is secondarily liable for any withdrawal liability it would 
have had to the plan with respect to the operations (but for this 
section) if the liability of the purchaser with respect to the plan is 
not paid. 
PUBLIC LAW 96-364—SEPT. 26, 1980 
94 STAT. 1221 
"(2) If 
the purchaser— 
"(A) withdraws before the last day of the fifth plan year 
beginning after the sale, and 
"(B) fails to make any withdrawal liability payment when due, 
then the seller shall pay to the plan an amount equal to the payment 
that would have been due from the seller but for this section. 
"(3XA) If all, or substantially all, of the seller's assets are distrib-
uted, or if the seller is liquidated before the end of the 5 plan year 
period described in paragraph (IXC), then the seller shall provide 
a bond or amount in escrow equal to the present value of the with-
drawal liability the seller would have had but for this subsection. 
"(B) If only a portion of the seller's assets are distributed during 
such period, then a bond or escrow shall be required, in accordance 
with regulations prescribed by the corporation, in a manner consist-
ent with subparagraph (A). 
"(4) The liability of the party furnishing a bond or escrow under 
this subsection shall be reduced, upon payment of the bond or escrow 
to the plan, by the amount thereof. 
"(bXD For the purposes of this part, the liability of the purchaser 
shall be determined as if the purchaser had been required to contrib-
ute to the plan in the year of the sale and the 4 plan years preceding 
the sale the amount the seller was required to contribute for such 
operations for such 5 plan years. 
"(2) If the plan is in reorganization in the plan year in which the 
sale of assets occurs, the purchaser shall furnish a bond or escrow in 
an amount equal to 200 percent of 
the amount described in subsection 
(aXlXB). 
"(c) The corporation may by regulation vary the standards in 
subparagraphs (B) and (C) of subsection (aXD if the variance would 
more effectively or equitably carr3r out the purposes of this title. 
Before it promulgates such regulations, the corporation may grant 
individual or class variances or exemptions from the requirements 
of such subparagraphs if the particular case warrants it. Before 
granting such an individual or class variance or exemption, the 
corporation— 
"(1) shall publish notice in the Federal Register of the pend-
ency of the variance or exemption, 
"(2) shall require that adequate notice be given to interested 
persons, and 
"(3) shall afford interested persons an opportunity to present 
their views. 
"(d) For purposes of this section, the term 'unrelated party' means 
a purchaser or seller who does not bear a relationship to the seller or 
purchaser, as the case may be, that is described in section 267(b) of the 
Internal Revenue Code of 1954, or that is described in regulations 
prescribed by the corporation applying principles similar to the 
principles of such section. 
Distribution 
or liquidation. 
Purchaser 
liability. 
Individual or 
class variances. 
Publication in 
Federal 
Register. 
"Unrelated 
party." 
26 u s e 267. 
PARTIAL WITHDRAWALS 
"SEC. 4205. (a) Except as otherwise provided in this section, there is 
a partial withdrawal by an employer from a plan on the last day of a 
plan year if for such plan year— 
"(1) there is a 70-percent contribution decline, or 
"(2) there is a partial cessation of the employer's contribution 
obligation. 
"0)) For purposes of 
subsection (a)— 
29 u s e 1385. 
94 STAT. 1222 
PUBLIC LAW 96-364—SEPT. 26, 1980 
"3-year testing 
period." 
Employer's 
contribution 
obligation, 
partial cessation. 
Retail food 
industry 
employees. 
26 use 404. 
"(1)(A) There is a 70-percent contribution decline for any plan 
year if during each plan year in the 3-year testing period the 
employer's contribution base units do not exceed 30 percent of 
the employer's contribution base units for the high base year. 
"(B) For purposes of subparagraph (A)— 
"(i) The term '3-year testing period' means the period 
consisting of the plan year and the immediately preceding 2 
plan years. 
"(ii) The number of contribution base units for the high 
base year is the average number of such units for the 2 plan 
years for which the employer's contribution base units were 
the highest within the 5 plan years immediately preceding 
the beginning of the 3-year testing period. 
"(2)(A) There is a partial cessation of the employer's contribu-
tion obligation for the plan year if, during such year— 
"(i) the employer permanently ceases to have an obligation 
to contribute under one or more but fewer than all collective 
bargaining agreements under which the employer has been 
obligated to contribute under the plan but continues to 
perform work in the jurisdiction of the collective bargaining 
agreement of the type for which contributions were previ-
ously required or transfers such work to another location, or 
"(ii) an employer permanently ceases to have an obligation 
to contribute under the plan with respect to work performed 
at one or more but fewer than all of its facilities, but 
continues to perform work at the facility of the type for 
which the obligation to contribute ceased. 
"(B) For purposes of subparagraph (A), a cessation of obliga-
tions under a collective bargaining agreement shall not be 
considered to have occurred solely because, with respect to the 
same plan, one agreement that requires contributions to the plan 
has been substituted for another agreement. 
"(c)(1) In the case of a plan in which a majority of the covered 
employees are employed in the retail food industry, the plan may be 
amended to provide that this section shall be applied with respect to 
such plan— 
"(A) by substituting '35 percent' for '70 percent' in subsections 
(a) and (b), and 
"(B) by substituting '65 percent' for '30 percent' in subsection 
(b). 
"(2) Any amendment adopted under paragraph (1) shall provide 
rules for the equitable reduction of withdrawal liability in any case in 
which the number of the plan's contribution base units, in the 2 plan 
years following the plan year of withdrawal of the employer, is higher 
than such number immediately after the withdrawal. 
"(3) Section 4208 shall not apply to a plan which has been amended 
under paragraph (1). 
"(d) In the case of a plan described in section 404(c) of the Internal 
Revenue Code of 1954, or a continuation thereof, the plan may be 
amended to provide rules setting forth other conditions consistent 
with the purposes of this Act under which an employer has liability 
for partial withdrawal. 
ADJUSTMENT FOR PARTIAL WITHDRAWAL 
29 use 1386. 
"SEC. 4206. (a) The amount of an employer's liability for a partial 
withdrawal, before the application of sections 4219(c)(1) and 4225, is 
equal to the product of— 
PUBLIC LAW 96-364—SEPT. 26, 1980 
94 STAT. 1223 
"(1) the amount determined under section 4211, and adjusted 
under section 4209 if appropriate, determined as if the employer 
had withdrawn from the plan in a complete withdrawal— 
"(A) on the date of 
the partial withdrawal, or 
"(B) in the case of a partial withdrawal described in 
section 4205(a)(1) (relating to 70-percent contribution 
decline), on the last day of the first plan year in the 
3-year testing period, 
multiplied b}^ 
"(2) a fraction which is 1 minus a fraction— 
"(A) the numerator of which is the employer's contribu-
tion base units for the plan year following the plan year in 
which the partial withdrawal occurs, and 
"(B) the denominator of which is the average of the 
employer's contribution base units for— 
"(i) except as provided in clause (ii), the 5 plan years 
immediately preceding the plan year in which the 
partial withdrawal occurs, or 
"(ii) in the case of a partial withdrawal described in 
section 4205(aKl) (relating to 70-percent contribution 
decline), the 5 plan years immediately preceding the 
beginning of 
the 3-year testing period. 
"(b)(1) In the case of an employer that has withdrawal liability for a 
partial withdrawal from a plan, any withdrawal liability of that 
employer for a partial or complete withdrawal from that plan in a 
subsequent plan year shall be reduced by the amount of any partial 
withdrawal liability (reduced by any abatement or reduction of such 
liability) of the employer with respect to the plan for a previous plan 
year. 
"(2) The corporation shall prescribe such regulations as may be Regulations. 
necessary to provide for proper adjustments in the reduction pro-
vided by paragraph (1) for— 
"(A) changes in unfunded vested benefits arising after the close 
of the prior year for which partial withdrawal liability was 
determined, 
"(B) changes in contribution base units occurring after the 
close of the prior year for which partial withdrawal liability was 
determined, and 
"(C) any other factors for which it determines adjustment to be 
appropriate, 
so that the liability for any complete or partial withdrawal in any 
subsequent year (after the application of the reduction) properly 
reflects the employer's share of liability with respect to the plan. 
REDUCTION OR WAIVER OF COMPLETE WITHDRAWAL LIABIUTY 
"SEC. 4207. (a) The corporation shall provide by regulation for the 
reduction or waiver of liability for a complete withdrawal in the 
event that an employer who has withdrawn from a plan subsequently 
resumes covered operations under the plan or renews an obligation to 
contribute under the plan, to the extent that the corporation deter-
mines that reduction or waiver of withdrawal liability is consistent 
with the purposes of this Act. 
"(b) The corporation shall prescribe by regulation a procedure and 
standards for the amendment of plans to provide alternative rules for 
the reduction or waiver of liability for a complete withdrawal in the 
event that an employer who has withdrawn from the plan subse-
quently resumes covered operations or renews an obligation to 
Regulations. 
29 u s e 1387. 
94 STAT. 1224 
PUBLIC LAW 96-364—SEPT. 26, 1980 
contribute under the plan. The rules may apply only to the extent 
that the rules are consistent with the purposes of this Act. 
"REDUCTION OF PARTIAL WITHDRAWAL LIABILITY 
29 use 1388. 
"SEC. 4208. (a)(1) If, for any 2 consecutive plan years following the 
plan year in which an employer has partially withdrawn from a plan 
under section 4205(a)(1) (referred to elsewhere in this section as the 
'partial withdrawal year'), the number of contribution base units 
with respect to which the employer has an obligation to contribute 
under the plan for each such year is not less than 90 percent of the 
total number of contribution base units with respect to which the 
employer had an obligation to contribute under the plan for the high 
base year (within the meaning of section 4205(b)(l)(B)(ii)), then the 
employer shall have no obligation to make payments with respect to 
such partial withdrawal (other than delinquent payments) for plan 
years beginning after the second consecutive plan year following the 
partial withdrawal year. 
Bonds. 
"(2)(A) For any plan year for which the number of contribution 
base units with respect to which an employer who has partially 
withdrawn under section 4205(a)(1) has an obligation to contribute 
under the plan equals or exceeds the number of units for the highest 
year determined under paragraph (1) without regard to '90 percent 
of, the employer may furnish (in lieu of payment of the partial 
withdrawal liability determined under section 4206) a bond to the 
plan in the amount determined by the plan sponsor (not exceeding 50 
percent of the annual payment otherwise required). 
"(B) If the plan sponsor determines under paragraph (1) that the 
employer has no further liability to the plan for the partial with-
drawal, then the bond shall be cancelled. 
"(C) If the plan sponsor determines under paragraph (1) that the 
employer continues to have liability to the plan for the partial 
withdrawal, then— 
"(i) the bond shall be paid to the plan, 
"(ii) the employer shall immediately be liable for the outstand-
ing amount of liability due with respect to the plan year for 
which the bond was posted, and 
"(iii) the employer shall continue to make the partial with-
drawal liability payments as they are due. 
"(b) If-
"(1) for any 2 consecutive plan years following a partial 
withdrawal under section 4205(a)(1), the number of contribution 
base units with respect to which the employer has an obligation 
to contribute for each such year exceeds 30 percent of the total 
number of contribution base units with respect to which the 
employer had an obligation to contribute for the high base year 
(within the meaning of section 42050t))(l)(B)(ii), and 
"(2) the total number of contribution base units with respect to 
which all employers under the plan have obligations to contrib-
ute in each of such 2 consecutive years is not less than 90 percent 
of the total number of contribution base units for which all 
employers had obligations to contribute in the partial with-
drawal plan year; 
then, the employer shall have no obligation to make payments with 
respect to such partial withdrawal (other than delinquent payments) 
for plan years beginning after the second such consecutive plan year. 
"(c) In any case in which, in any plan year following a partial 
withdrawal under section 4205(a)(1), the number of contribution base 
PUBLIC LAW 96-364—SEPT. 26, 1980 
94 STAT. 1225 
units with respect to which the employer has an obHgation to 
contribute for such year equals or exceeds 110 percent (or such other 
percentage as the plan may provide by amendment and which is not 
prohibited under regulations prescribed by the corporation) of the 
number of contribution base units with respect to which the employer 
had an obligation to contribute in the partial withdrawal year, then 
the amount of the employer's partial withdrawal liability payment 
for such year shall be reduced pro rata, in accordance with regula-
tions prescribed by the corporation. 
"(d)(1) An employer to whom section 42020t)) (relating to the 
building and construction industry) applies is liable for a partial 
withdrawal only if the employer's obligation to contribute under the 
plan is continued for no more than an insubstantial portion of its 
work in the craft and area jurisdiction of the collective bargaining 
agreement of the type for which contributions are required. 
"(2) An employer to whom section 4202(c) (relating to the entertain-
ment industry) applies shall have no liability for a partial withdrawal 
except under the conditions and to the extent prescribed by the 
corporation by regulation. 
"(e)(1) The corporation may prescribe regulations providing for the 
reduction or elimination of partial withdrawal liability under any 
conditions with respect to which the corporation determines that 
reduction or elimination of partial withdrawal liability is consistent 
with the purposes of this Act. 
"(2) Under such regulations, reduction of withdrawal liability shall 
be provided only with respect to subsequent changes in the employ-
er's contributions for the same operations, or under the same collec-
tive bargaining agreement, that gave rise to the partial withdrawal, 
and changes in the employer's contribution base units with respect to 
other facilities or other collective bargaining agreements shall not be 
taken into account. 
"(3) The corporation shall prescribe by regulation a procedure by Regulations. 
which a plan may by amendment adopt rules for the reduction or 
elimination of partial withdrawal liability under any other condi-
tions, subject to the approval of the corporation based on its determi-
nation that adoption of such rules by the plan is consistent with the 
purposes of this Act. 
"DE MINIMIS RULE 
"SEC. 4209. (a) Except in the case of a plan amended under 
subsection Ot)), the amount of the unfunded vested benefits allocable 
under section 4211 to an employer who withdraws from a plan shall 
be reduced by the smaller of— 
"(1) % of 1 percent of the plan's unfunded vested obligations 
(determined as of the end of the plan year ending before the date 
of withdrawal), or 
"(2) $50,000, 
reduced by the amount, if any, by which the unfunded vested benefits 
allowable to the employer, determined without regard to this subsec-
tion, exceeds $100,000. 
"(b) A plan may be amended to provide for the reduction of the 
amount determined under section 4211 by not more than the greater 
of— 
"(1) the amount determined under subsection (a), or 
"(2) the lesser of— 
"(A) the amount determined under subsection (a)(1), or 
"(B) $100,000, 
Unfunded vested 
benefits. 
29 use 1389. 
94 STAT. 1226 
PUBLIC LAW 96-364—SEPT. 26, 1980 
reduced by the amount, if any, by which the amount determined 
under section 4211 for the employer, determined without regard to 
this subsection, exceeds $150,000. 
"(c) This section does not apply— 
"(1) to an employer who withdraws in a plan year in which 
substantially all employers withdraw from the plan, or 
"(2) in any case in which substantially all employers withdraw 
from the plan during a period of one or more plan years pursuant 
to an agreement or arrangement to withdraw, to an employer 
who withdraws pursuant to such agreement or arrangement. 
"(d) In any action or proceeding to determine or collect withdrawal 
liability, if substantially all employers have withdrawn from a plan 
within a period of 3 plan years, an employer who has withdrawn from 
such plan during such period shall be presumed to have withdrawn 
from the plan pursuant to an agreement or arrangement, unless the 
employer proves otherwise by a preponderance of the evidence. 
"NO WITHDRAWAL LIABIUTY FOR CERTAIN TEMPORARY CONTRIBUTION 
OBUGATION PERIODS 
29 use 1390. 
"SEC. 4210. (a) An employer who withdraws from a plan in complete 
or partial withdrawal is not liable to the plan if the employer— 
"(1) first had an obligation to contribute to the plan after the 
date of the enactment of the Multiemployer Pension Plan 
Ante, p. 1208. 
Amendments Act of 1980, 
"(2) had an obligation to contribute to the plan for no more 
than the lesser o
f
— 
"(A) 6 consecutive plan years preceding the date on which 
the employer withdraws, or 
"(B) the number of years required for vesting under the 
plan, 
"(3) was required to make contributions to the plan for each 
such plan year in an amount equal to less than 2 percent of the 
sum of all employer contributions made to the plan for each such 
year, and 
"(4) has never avoided withdrawal liability because of the 
application of this section with respect to the plan. 
"(b) Subsection (a) shall apply to an employer with respect to a plan 
only i
f
— 
"(1) the plan is not a plan which primarily covers employees in 
the building and construction industry; 
"(2) the plan is amended to provide that subsection (a) applies; 
"(3) the plan provides, or is amended to provide, that the 
reduction under section 411(a)(3XE) of the Internal Revenue Code 
Post, p. 1287. 
of 1954 applies with respect to the employees of the employer; 
and 
"(4) the ratio of the assets of the plan for the plan year 
preceding the first plan year for which the employer was 
required to contribute to the plan to the benefit payments 
made during that plan year was at least 8 to 1. 
"METHODS FOR COMPUTING WITHDRAWAL LIABILITY 
Unfunded vested 
"SEC. 4211. (a) The amount of the unfunded vested benefits alloca-
oQ^Tcn 1
Q
Q
1 
^^'^ *o ^" employer that withdraws from a plan shall be determined in 
accordance with subsection (b), (c), or (d) of this section. 
29 use 1391. 
PUBLIC LAW 96-364—SEPT. 26, 1980 
94 STAT. 1227 
"(b)(1) Except as provided in subsections (c) and (d), the amount of 
Allocation 
unfunded vested benefits allocable to an employer that withdraws is 
determination. 
the sum of— 
"(A) the employer's proportional share of the unamortized 
amount of the change in the plan's unfunded vested benefits for 
plan years ending after April 28, 1980, as determined under 
paragraph (2), 
"(B) the employer's proportional share, if any, of the unamor-
tized amount of the plan's unfunded vested benefits at the end of 
the plan year ending before April 29, 1980, as determined under 
paragraph (3); and 
"(C) the employer's proportional share of the unamortized 
amounts of the reallocated unfunded vested benefits (if any) as 
determined under paragraph (4). 
If the sum of the amounts determined with respect to an employer 
under paragraphs (2), (3), and (4) is negative, the unfunded vested 
benefits allocable to the employer shall be zero. 
"(2)(A) An employer's proportional share of the unamortized 
amount of the change in the plan's unfunded vested benefits for plan 
years ending after April 28, 1980, is the sum of the employer's 
proportional shares of the unamortized amount of the change in 
unfunded vested benefits for each plan year in which the employer 
has an obligation to contribute under the plan ending— 
"(i) after such date, and 
"(ii) before the plan year in which the withdrawal of the 
employer occurs. 
"(B) The change in a plan's unfunded vested benefits for a plan year 
is the amount by which— 
"(i) the unfunded vested benefits at the end of the plan year; 
exceeds 
"(ii) the sum o
f
— 
"(I) the unamortized amount of the unfunded vested bene-
fits for the last plan year ending before April 29, 1980, and 
"(II) the sum of the unamortized amounts of the change in 
unfunded vested benefits for each plan year ending after 
April 28, 1980, and preceding the plan year for which the 
change is determined. 
"(C) The unamortized amount of the change in a plan's unfunded 
vested benefits with respect to a plan year is the change in unfunded 
vested benefits for the plan year, reduced by 5 percent of such change 
for each succeeding plan year. 
"(D) The unamortized amount of the unfunded vested benefits for 
the last plan year ending before April 29, 1980, is the amount of the 
unfunded vested benefits as of the end of that plan year reduced by 5 
percent of such amount for each succeeding plan year. 
"(E) An employer's proportional share of the unamortized amount 
of a change in unfunded vested benefits is the product o
f
— 
"(i) the unamortized amount of such change (as of the end of 
the plan year preceding the plan year in which the employer 
withdraws); multiplied by 
"(ii) a fraction— 
"(I) the numerator of which is the sum of the contributions 
required to be made under the plan by the employer for the 
year in which such change arose and for the 4 preceding plan 
years, and 
"(II) the denominator of which is the sum for the plan year 
in which such change arose and the 4 preceding plan years of 
all contributions made by employers who had an obligation 
94 STAT. 1228 
PUBLIC LAW 96-364—SEPT. 26, 1980 
11 use 101. 
Multiemployer 
plan, 
amendment 
procedures. 
to contribute under the plan for the plan year in which such 
change arose reduced by the contributions made in such 
years by employers who had withdrawn from the plan in the 
year in which the change arose. 
"(3) An employer's proportional share of the unamortized amount 
of the plan's unfunded vested benefits for the last plan year ending 
before April 29,1980, is the product o
f
— 
"(A) such unamortized amount; multiplied by— 
"(B) a fraction— 
"(i) the numerator of which is the sum of all contributions 
required to be made by the employer under the plan for the 
most recent 5 plan years ending before April 29, 1980, and 
"(ii) the denominator of which is the sum of all contribu-
tions made for the most recent 5 plan years ending before 
April 29,1980, by all employers— 
"(I) who had an obligation to contribute under the 
plan for the first plan year ending on or after such date, 
and 
"(II) who had not withdrawn from the plan before 
such date. 
"(4)(A) An employer's proportional share of the unamortized 
amount of the reallocated unfunded vested benefits is the sum of the 
employer's proportional shares of the unamortized amount of the 
reallocated unfunded vested benefits for each plan year ending before 
the plan year in which the employer withdrew from the plan. 
"(B) Except as otherwise provided in regulations prescribed by the 
corporation, the reallocated unfunded vested benefits for a plan year 
is the sum o
f
— 
"(i) any amount which the plan sponsor determines in that 
plan year to be uncollectible for reasons arising out of cases or 
proceedings under title 11, United States Code, or similar pro-
ceedings. 
"(ii) any amount which the plan sponsor determines in that 
plan year will not be assessed as a result of the operation of 
section 4209, 4219(c)(1)(B), or section 4225 against an employer to 
whom a notice described in section 4219 has been sent, and 
"(iii) any amount which the plan sponsor determines to be 
uncollectible or unassessable in that plan year for other reasons 
under standards not inconsistent with regulations prescribed by 
the corporation. 
"(C) The unamortized amount of the reallocated unfunded vested 
benefits with respect to a plan year is the reallocated unfunded 
vested benefits for the plan year, reduced by 5 percent of such 
reallocated unfunded vested benefits for each succeeding plan year. 
"(D) An employer's proportional share of the unamortized amount 
of the reallocated unfunded vested benefits with respect to a plan 
year is the product o
f
— 
"(i) the unamortized amount of the reallocated unfunded 
vested benefits (as of the end of the plan year preceding the plan 
year in which the employer withdraws); multiplied by 
"(ii) the fraction defined in paragraph (2)(E)(ii). 
"(c)(1) A multiemployer plan, other than a plan which primarily 
covers employees in the building and construction industry, may be 
amended to provide that the amount of unfunded vested benefits 
allocable to an employer that withdraws from the plan is an amount 
determined under paragraph (2), (3), (4), or (5) of this subsection, 
rather than under subsection (b) or (d). A plan described in section 
42030t))(l)(B)(i) (relating to the building and construction industry) 
PUBLIC LAW 96-364—SEPT. 26, 1980 
94 STAT. 1229 
may be amended, to the extent provided in regulations prescribed by 
the corporation, to provide that the amount of the unfunded vested 
benefits allocable to an employer not described in section 
4203(b)(1)(A) shall be determined in a manner different from that 
provided in subsection (b). 
"(2)(A) The amount of the unfunded vested benefits allocable to any 
employer under this paragraph is the sum of the amounts determined 
under subparagraphs (B) and (C). 
"(B) The amount determined under this subparagraph is the 
product of— 
"(i) the plan's unfunded vested benefits as of the end of the last 
plan year ending before April 29, 1980, reduced as if those 
obligations were being fully amortized in level annual install-
ments over 15 years beginning with the first plan year ending on 
or after such date; multiplied by 
"(ii) a fraction— 
"(I) the numerator of which is the sum of all contributions 
required to be made by the employer under the plan for the 
last 5 plan years ending before April 29,1980, and 
"(II) the denominator of which is the sum of all contribu-
tions made for the last 5 plan years ending before April 29, 
1980, by all employers who had an obligation to contribute 
under the plan for the first plan year ending after April 28, 
1980, and who had not withdrawn from the plan before such 
date. 
"(C) The amount determined under this subparagraph is the 
product o
f
— 
"(i) an amount equal to— 
"(I) the plan s unfunded vested benefits as of the end of the 
plan year preceding the plan year in which the employer 
withdraws, less 
"(II) the sum of the value as of such date of all outstanding 
claims for withdrawal liability which can reasonably be 
expected to be collected, with respect to employers with-
drawing before such plan year, and that portion of the 
amount determined under subparagraph (B)(i) which is allo-
cable to employers who have an obligation to contribute 
under the plan in the plan year preceding the plan year in 
which the employer withdraws and who also had an obliga-
tion to contribute under the plan for the first plan year 
ending after April 28,1980; multiplied by 
"(ii) a fraction— 
"(I) the numerator of which is the total amount required to 
be contributed under the plan by the employer for the last 5 
plan years ending before the date on which the employer 
withdraws, and 
"(II) the denominator of which is the total amount contrib-
uted under the plan by all employers for the last 5 plan years 
ending before the date on which the employer withdraws, 
increased by the amount of any employer contributions owed 
with respect to earlier periods which were collected in those 
plan years, and decreased by any amount contributed by an 
employer who withdrew from the plan under this part 
during those plan years. 
"(D) The corporation may by regulation permit adjustments in any 
denominator under this section, consistent with the purposes of this 
title, where such adjustment would be appropriate to ease adminis-
trative burdens of plan sponsors in calculating such denominators. 
94 STAT. 1230 
PUBLIC LAW 96-364—SEPT. 26, 1980 
"(3) The amount of the unfunded vested benefits allocable to an 
employer under this paragraph is the product o
f
— 
"(A) the plan's unfunded vested benefits as of the end of the 
plan year preceding the plan year in which the employer with-
draws, less the value as of the end of such year of all outstanding 
claims for withdrawal liability which can reasonably be expected 
to be collected from employers withdrawing before such year; 
multiplied by 
"(B) a fraction— 
"(i) the numerator of which is the total amount required to 
be contributed by the employer under the plan for the last 5 
plan years ending before the withdrawal, and 
"(ii) the denominator of which is the total amount contrib-
uted under the plan by all employers for the last 5 plan years 
ending before the withdrawal, increased by any employer 
contributions owed with respect to earlier periods which 
were collected in those plan years, and decreased by any 
amount contributed to the plan during those plan years by 
employers who withdrew from the plan under this section 
during those plan years. 
"(4)(A) The amount of the unfunded vested benefits allocable to an 
employer under this paragraph is equal to the sum of— 
"(i) the plan's unfunded vested benefits which are attributable 
to participants' service with the employer (determined as of the 
end of the plan year preceding the plan year in which the 
employer withdraws), and 
"(ii) the employer's proportional share of any unfunded vested 
benefits which are not attributable to service with the employer 
or other employers who are obligated to contribute under the 
plan in the plan year preceding the plan year in which the 
employer withdraws (determined as of the end of the plan year 
preceding the plan year in which the employer withdraws). 
"(B) The plan's unfunded vested benefits which are attributable to 
participants' service with the employer is the amount equal to the 
value of nonforfeitable benefits under the plan which are attributa-
ble to participants' service with such employer (determined under 
plan rules not inconsistent with regulations of the corporation) 
decreased by the share of plan assets determined under subpara-
graph (C) which is allocated to the employer as provided under 
subparagraph (D). 
Plan assets, 
"(C) The value of plan assets determined under this subparagraph 
^^'"^ 
is the value of plan assets allocated to nonforfeitable benefits which 
are attributable to service with the employers who have an obliga-
tion to contribute under the plan in the plan year preceding the plan 
year in which the employer withdraws, which is determined by 
multiplying— 
"(i) the value of the plan assets as of the end of the plan year 
preceding the plan year in which the employer withdraws, by 
"(ii) a fraction— 
"(I) the numerator of which is the value of nonforfeitable 
benefits which are attributable to service with such employ-
ers, and 
"(II) the denominator of which is the value of all nonfor-
feitable benefits under the plan 
as of the end of the plan year. 
"(D) The share of plan assets, determined under subparagraph (C), 
which is allocated to the employer shall be determined in accordance 
PUBLIC LAW 96-364—SEPT. 26, 1980 
94 STAT. 1231 
with one of the following methods which shall be adopted by the plan 
by amendment: 
"(1) by multiplying the value of plan assets determined under 
subparagraph (C) by a fraction— 
"(I) the numerator of which is the value of the nonforfeita-
ble benefits which are attributable to service with the 
employer, and 
(II) the denominator of which is the value of the nonfor-
feitable benefits which are attributable to service with all 
employers who have an obligation to contribute under the 
plan in the plan year preceding the plan year in which the 
employer withdraws; 
"(ii) by multiplying the value of plan assets determined under 
subparagraph (C) by a fraction— 
"(I) the numerator of which is the sum of all contributions 
(accumulated with interest) which have been made to the 
plan by the employer for the plan year preceding the plan 
year in which the employer withdraws and all preceding 
plan years; and 
"(II) the denominator of which is the sum of all contribu-
tions (accumulated with interest) which have been made to 
the plan (for the plan year preceding the plan year in which 
the employer withdraws and all preceding plan years) by all 
employers who have an obligation to contribute to the plan 
for the plan year preceding the plan year in which the 
employer withdraws; or 
"(iii) by multiplying the value of plan assets under subpara-
graph (C) by a fraction— 
"(I) the numerator of which is the amount determined 
under clause (ii)(I) of this subparagraph, less the sum of 
benefit payments (accumulated with interest) made to par-
ticipants (and their beneficiaries) for the plan years 
described in such clause (iiXD which are attributable 
to service with the employer; and 
"(II) the denominator of which is the amount determined 
under clause (ii)(II) of this subparagraph, reduced by the sum 
of benefit payments (accumulated with interest) made to 
participants (and their beneficiaries) for the plan years 
described in such clause (ii)(II) which are attributable to 
service with respect to the employers described in such 
clause (ii)(II). 
"(E) The amount of the plan's unfunded vested benefits for a plan 
year preceding the plan year in which an employer withdraws, which 
IS not attributable to service with employers who have an obligation 
to contribute under the plan in the plan year preceding the plan year 
in which such employer withdraws, is equal to— 
"(i) an amount equal to— 
"(I) the value of all nonforfeitable benefits under the plan 
at the end of such plan year, reduced by 
"(II) the value of nonforfeitable benefits under the plan at 
the end of such plan year which are attributable to partici-
pants' service with employers who have an obligation to 
contribute under the plan for such plan year; reduced by 
"(ii) an amount equal to— 
"(I) the value of the plan assets as of the end of such plan 
year, reduced by 
"(H) the value of plan assets as of 
the end of 
such plan year 
as determined under subparagraph (C); reduced by 
79-194 
O—81—pt. 1 
81 ; QL3 
94 STAT. 1232 
PUBLIC LAW 96-364—SEPT. 26, 1980 
Regulations. 
26 use 404. 
Liabilities, 
transfer. 
"(iii) the value of all outstanding claims for withdrawal liabil-
ity which can reasonably be expected to be collected with respect 
to employers withdrawing before the year preceding the plan 
year in which the employer withdraws. 
"(F) The employer's proportional share described in subparagraph 
(A)(ii) for a plan year is the amount determined under subparagraph 
(E) for the employer, but not in excess of an amount which bears the 
same ratio to the sum of the amounts determined under subpara-
graph (E) for all employers under the plan as the amount determined 
under subparagraph (C) for the employer bears to the sum of the 
amounts determined under subparagraph (C) for all employers under 
the plan. 
"(G) The corporation may prescribe by regulation other methods 
which a plan may adopt for allocating assets to determine the amount 
of the unfunded vested benefits attributable to service with the 
employer and to determine the employer's share of unfunded vested 
benefits not attributable to service with employers who have an 
obligation to contribute under the plan in the plan year in which the 
employer withdraws. 
' (5)(A) The corporation shall prescribe by regulation a procedure 
by which a plan may, by amendment, adopt any other alternative 
method for determining an employer's allocable share of unfunded 
vested benefits under this section, subject to the approval of the 
corporation based on its determination that adoption of the method 
by the plan would not significantly increase the risk of loss to plan 
participants and beneficiaries or to the corporation. 
"(B) The corporation may prescribe l?y regulation standard ap-
proaches for alternative methods, other than those set forth in the 
preceding paragraphs of this subsection, which a plan may adopt 
under subparagraph (A), for which the corporation may waive or 
modify the approval requirements of subparagraph (A). Any alterna-
tive method shall provide for the allocation of substantially all of a 
plan's unfunded vested benefits among employers who have an 
obligation to contribute under the plan. 
"(C) Unless the corporation by regulation provides otherwise, a 
plan may be amended to provide that a period of more than 5 but not 
more than 10 plan years may be used for determining the numerator 
and denominator of any fraction which is used under any method 
authorized under this section for determining an employer's allocable 
share of unfunded vested benefits under this section. 
"(D) The corporation may by regulation permit adjustments in any 
denominator under this section, consistent with the purposes of this 
title, where such adjustment would be appropriate to ease adminis-
trative burdens of plan sponsors in calculating such denominators. 
"(d)(1) The method of calculating an employer's allocable share of 
unfunded vested benefits set forth in subsection (c)(3) shall be the 
method for calculating an employer's allocable share of unfunded 
vested benefits under a plan to which section 404(c) of the Internal 
Revenue Code of 1954, or a continuation of such a plan, applies, 
unless the plan is amended to adopt another method authorized 
under subsection (b) or (c). 
"(2) Sections 4204, 4209, 4219(c)(1)(B), and 4225 shall not apply with 
respect to the withdrawal of an employer from a plan described in 
paragraph (1) unless the plan is amended to provide that any of such 
sections apply. 
"(e) In the case of a transfer of liabilities to another plan incident to 
an employer's withdrawal or partial withdrawal, the withdrawn 
employer's liability under this part shall be reduced in an amount 
PUBLIC LAW 96-364—SEPT. 26, 1980 
94 STAT. 1233 
equal to the value, as of the end of the last plan year ending on or 
before the date of the withdrawal, of the transferred unfunded vested 
benefits. 
"(f) In the case of a withdrawal following a merger of multiem-
ployer plans, subsection (b), (c), or (d) shall be applied in accordance 
with regulations prescribed by the corporation; except that, if a 
withdrawal occurs in the first plan year beginning after a merger of 
multiemployer plans, the determination under this section shall be 
made as if each of the multiemployer plans had remained separate 
plans. 
"OBUGATION TO CONTRIBUTE; SPECIAL RULES 
"SEC. 4212. (a) For purposes of this part, the term 'obligation to 2
9 use 1392. 
contribute' means an obligation to contribute arising— 
"(1) under one or more collective bargaining (or related) 
agreements, or 
"(2) as a result of a duty under applicable labor-management 
relations law, but 
does not include an obligation to pay withdrawal liability under this 
section or to pay delinquent contributions. 
"(b) Payments of withdrawal liability under this part shall not be 
considered contributions for purposes of 
this part. 
"(c) If a principal purpose of any transaction is to evade or avoid 
liability under this part, this part shall be applied (and liability shall 
be determined and collected) without regard to such transaction. 
"ACTUARIAL ASSUMPTIONS, ETC. 
"SEC. 4213. (a) The corporation may prescribe by regulation actu- 2
9 use 1393. 
arial assumptions which may be used by a plan actuary in deter-
mining the unfunded vested benefits of a plan for purposes of 
determining an employer's withdrawal liability under this part. 
Withdrawal liability under this part shsill be determined by each 
plan on the basis o
f
— 
"(1) actuarial assumptions and methods which, in the aggre-
gate, are reasonable (taking into account the experience of the 
plan and reasonable expectations) and which, in combination, 
offer the actuary's best estimate of anticipated experience under 
the plan, or 
"(2) actuarial assumptions and methods set forth in the corpo-
ration's regulations for purposes of determining an employer's 
withdrawal liability. 
"(b) In determining the unfunded vested benefits of a plan for 
purposes of determining an employer's withdrawal liability under 
this part, the plan actuary may— 
"(1) rely on the most recent complete actuarial valuation used 
for purposes of section 412 of the Internal Revenue Code of 1954 2
6 use 412. 
and reasonable estimates for the interim years of the unfunded 
vested benefits, and 
"(2) in the absence of complete data, rely on the data available 
or on data secured by a sampling which can reasonably be 
expected to be representative of the status of the entire plan. 
"(c) For purposes of this part, the term 'unfunded vested benefits' "Unfunded 
means with respect to a plan, an amount equal to— 
vested benefits. 
"(A) the value of nonforfeitable benefits under the plan, less 
"(B) the value of the assets of 
the plan. 
94 STAT. 1234 
PUBLIC LAW 96-364—SEPT. 26, 1980 
"APPLICATION OF PLAN AMENDMENTS 
2
9 use 1394. 
"SEC. 4214. (a) No plan rule or amendment adopted after January 
31, 1981, under section 4209 or 4211(c) may be applied without the 
employer's consent with respect to liability for a withdrawal or 
partial withdrawal which occurred before the date on which the rule 
or amendment was adopted. 
"(b) All plan rules and amendments authorized under this part 
shall operate and be applied uniformly with respect to each employer, 
except that special provisions may be made to take into account the 
creditworthiness of an employer. The plan sponsor shall give notice to 
all employers who have an obligation to contribute under the plan 
and to all employee organizations representing employees covered 
under the plan of any plan rules or amendments adopted pursuant to 
this section. 
"PLAN NOTIFICATION TO CORPORATION OF POTENTIALLY SIGNIFICANT 
WITHDRAWALS 
2
9 use 1395. 
"SEC. 4215. The corporation may, by regulation, require the plan 
sponsor of a multiemployer plan to provide notice to the corporation 
when the withdrawal from the plan by any employer has resulted, or 
will result, in a significant reduction in the amount of aggregate 
contributions under the plan made by employers. 
"SPECIAL RULES FOR SECTION 404(C) PLANS 
2
9 use 1396. 
"SEC. 4216. (a) In the case of a plan described in subsection (b)— 
"(1) if an employer withdraws prior to a termination described 
Ante, p. 1216. 
in section 4041A(a)(2), the amount of withdrawal liability to be 
paid in any year by such employer shall be an amount equal to 
the greater o
f
— 
"(A) the amount determined under section 4219(c)(l)(C)(i), 
or 
"(B) the product o
f
— 
"(i) the number of contribution base units for which 
the employer would have been required to make contri-
butions for the prior plan year if the employer had not 
withdrawn, multiplied by 
"(ii) the contribution rate for the plan year which 
would be required to meet the amortization schedules 
Post, p. 1252. 
contained in section 4243(d)(3)(B)(ii) (determined with-
out regard to any limitation on such rate otherwise 
provided by this title) 
except that an employer shall not be required to pay an amount 
in excess of the withdrawal liability computed with interest; and 
"(2) the withdrawal liability of an employer who withdraws 
after December 31,1983, as a result of a termination described in 
section 4041A(a)(2) which is agreed to by the labor organization 
that appoints the employee representative on the joint board of 
trustees which sponsors the plan, shall be determined under 
subsection (c) i
f
— 
"(A) as a result of prior employer withdrawals in any plan 
year commencing after January 1, 1980, the number of 
contribution base units is reduced to less than 67 percent of 
the average number of such units for the calendar years 1974 
through 1979; and 
PUBLIC LAW 96-364—SEPT. 26, 1980 
94 STAT. 1235 
"(B) at least 50 percent of 
the withdrawal liability attribut-
able to the first 33 percent decline described in subpara-
graph (A) has been determined by the plan sponsor to be 
uncollectible within the meaning of regulations of the corpo-
ration of 
general applicability; and 
"(C) the rate of employer contributions under the plan for 
each plan year following the first plan year beginning after 
the date of enactment of the Multiemployer Pension Plan 
Amendments Act of 1980 and preceding the termination 
date equals or exceeds the rate described in section 
4243(dX3). 
"(b) A plan is described in this subsection i
f
— 
"(1) it is a plan described in section 404(c) of the Internal 
Revenue Code of 1954 or a continuation thereof; and 
"(2) participation in the plan is substantially limited to individ-
uals who retired prior to January 1,1976. 
"(cXD The amount of an employer's liability under this paragraph 
is the product o
f
— 
"(A) the amount of the employer's withdrawal liability deter-
mined without regard to this section, and 
"(B) the greater of 90 percent, or a fraction— 
"(i) the numerator of which is an amount equal to the 
portion of the plan's unfunded vested benefits that is attrib-
utable to plan participants who have a total of 10 or more 
years of 
signatory service, and 
"(ii) the denominator of which is an amount equal to the 
total unfunded vested benefits of the plan. 
"(2) For purposes of paragraph (1), the term *a year of signatory 
service' means a year during any portion of which a participant was 
employed for an employer who was obligated to contribute in that 
year, or who was subsequently obligated to contribute. 
Ante, p. 1208. 
Post, p. 1252. 
26 u s e 404. 
Employer's 
liability. 
"A year of 
signatory 
APPUCATION OF PART IN CASE OP CERTAIN PRE-1980 WITHDRAWALS 
"SEC. 4217. (a) For the purpose of determining the amount of 
unfunded vested benefits allocable to an employer for a partial or 
complete withdrawal from a plan which occurs after April 28,1980, 
and for the purpose of determining whether there has been a partial 
withdrawal after such date, the amount of contributions, and the 
number of contribution base units, of such employer properly 
allocable— 
"(1) to work performed under a collective bargaining agree-
ment for which there was a permanent cessation of the obliga-
tion to contribute before April 29,1980, or 
"(2) to work performed at a facility at which all covered 
operations permanently ceased before April 29, 1980, or for 
which there was a permanent cessation of the obligation to 
contribute before that date, 
shall not be taken into account. 
"(b) A plan may, in a manner not inconsistent with regulations, 
which shall be prescribed by the corporation, adjust the amount of 
unfunded vested benefits allocable to other employers under a plan 
maint£dned by an employer described in subsection (a). 
29 u s e 1397. 
94 STAT. 1236 
PUBLIC LAW 96-364—SEPT. 26, 1980 
"WITHDRAWAL NOT TO OCCUR MERELY BECAUSE OF CHANGE IN BUSI-
NESS FORM OR SUSPENSION OF CONTRIBUTIONS DURING LABOR 
DISPUTE 
29 use 1398. 
"SEC 4218. Notwithstanding any other provision of this part, an 
employer shall not be considered to have withdrawn from a plan 
solely because— 
"(1) an employer ceases to exist by reason o
f
— 
"(A) a change in corporate structure described in section 
2
9 use 1362. 
4062(d), or 
"(B) a change to an unincorporated form of business 
enterprise, 
if the change causes no interruption in employer contributions or 
obligations to contribute under the plan, or 
"(2) an employer suspends contributions under the plan during 
a labor dispute mvolving its employees. 
For purposes of this part, a successor or parent corporation or other 
entity resulting from any such change shall be considered the 
original employer. 
"NOTICE, COLLECTION, ETC., OF WITHDRAWAL UABILITY 
29 use 1399. 
"SEC. 4219. (a) An employer shall, within 30 days after a written 
request from the plan sponsor, furnish such information as the plan 
sponsor reasonably determines to be necessary to enable the plan 
sponsor to comply with the requirements of 
this part. 
Plan sponsor, 
"(b)(1) As soon as practicable after an employer's complete or 
responsibilities, 
pgy^j^i withdrawal, the plan sponsor shall— 
"(A) notify the employer o
f
— 
"(i) the amount of the liability, and 
"(ii) the schedule for liability payments, and 
"(B) demand payment in accordance with the schedule. 
"(2)(A) No later than 90 days after the employer receives the notice 
described in paragraph (1), the employer— 
"(i) may ask the plan sponsor to review any specific matter 
relating to the determination of the employer's liability and the 
schedule of payments, 
"(ii) may identify any inaccuracy in the determination of the 
amount of the unfunded vested benefits allocable to the em-
ployer, and 
"(iii) may furnish any additional relevant information to the 
plan sponsor. 
"(B) After a reasonable review of any matter raised, the plan 
sponsor shall notify the employer o
f
—
-
"(i) the plan sponsor's decision, 
"(ii) the basis for the decision, and 
"(iii) the reason for any change in the determination of the 
employer's liability or schedule of liability payments. 
"(c)(l)(AXi) Except as provided in subparagraphs (B) and (D) of this 
paragraph and in paragraphs (4) and (5), an employer shall pay the 
amount determined under section 4211, adjusted if appropriate first 
under section 4209 and then under section 4206 over the period of 
years necessary to amortize the amount in level annual pa3rments 
determined under subparagraph (C), calculated as if the first pay-
ment were made on the first day of the plan year following the plan 
year in which the withdrawal occurs and as if each subsequent 
payment were made on the first day of each subsequent plan year. 
Actual payment shall commence in accordance with paragraph (2). 
PUBLIC LAW 96-364—SEPT. 26, 1980 
94 STAT. 1237 
"(ii) The determination of the amortization period described in 
clause (i) shall be based on the assumptions used for the most recent 
actuarial valuation for the plan. 
"(B) In any case in which the amortization period described in 
subparagraph (A) exceeds 20 years, the employer's liability shall be 
limited to the first 20 annual payments determined under subpara-
graph (C). 
"(CXi) Except as provided in subparagraph (E), the amount of each 
annual payment shall be the product o
f
— 
"(I) the average annual number of contribution base units for 
the period of 3 consecutive plan years, during the period of 10 
consecutive plan years ending bewre the plan year in which the 
withdrawal occurs, in which the number of contribution base 
units for which the employer had an obligation to contribute 
under the plan is the highest, and 
"(ID the highest contribution rate at which the employer had 
an obligation to contribute under the plan during the 10 plan 
years ending with the plan year in which the withdrawal occurs. 
For purposes of the preceding sentence, a partial withdrawal 
described in section 4205(aXl) shall be deemed to occur on the last day 
of the first year of the 3-year testing period described in section 
4205(bXlXBXi). 
"(iiXD A plan may be amended to provide that for any plem year 
ending before 1986 the amount of each annual pajrment shall be (in 
lieu of the amount determined under clause (i)) the average of the 
required employer contributions under the plan for the period of 3 
consecutive plan years (during the period of 10 consecutive plan years 
ending with the plan year preceding the plan year in which the 
withdrawal occurs) for wliich such required contributions were the 
highest. 
(II) Subparagraph (B) shall not apply to any plan year to which 
this clause applies. 
"(Ill) This clause shall not apply in the case of any withdrawal 
described in subparagraph (D). 
"(IV) If under a plan this clause applies to any plan year but does 
not apply to the next plan year, this clause shall not apply to any plan 
year after such next plan year. 
"(V) For purposes of this clause, the term 'required contributions' 
means, for any period, the amounts which the employer was obli-
gated to contribute for such period (not taking into account any 
delinmient contribution for any other period). 
"(iii) A plan may be amended to provide that for the first plan year 
ending on or after April 29,1980, the number '5' shall be substituted 
for the number *10' each place it appears in clause (i) or clause (ii) 
(whichever is appropriate). If the plan is so amended, the number '5' 
shall be increased by one for each succeeding plan year until the 
number *10* is reached. 
"(D) In £iny case in which a multiemployer plan terminates by the 
withdrawal of every employer from the plan, or in which substan-
tially all the employers withdraw from a plan pursaant to an 
agreement or arrangement to withdraw from the plan— 
"(i) the liability of each such employer who has withdrawn 
shall be determined (or redetermined) under this paragraph 
without regard to subparagraph (B), and 
"(ii) notwithstanding any other provision of this part, the total 
unfunded vested benefits of the plan shall be fully allocated 
among all such employers in a manner not inconsistent with 
regulations which shall be prescribed by the corporation. 
Annual 
payment. 
"Required 
contributions.' 
94 STAT. 1238 
PUBLIC LAW 96-364—SEPT. 26, 1980 
Withdrawal by an employer from a plan, during a period of 3 
consecutive plan years within which substantially all the employers 
who have an obligation to contribute under the plan withdraw, shall 
be presumed to be a withdrawal pursuant to an agreement or 
arrangement, unless the employer proves otherwise by a preponder-
ance of 
the evidence. 
"(E) In the case of a partial withdrawal described in section 4205(a), 
the amount of each annual pajnnent shall be the product o
f
— 
"(i) the amount determined under subparagraph (C) (deter-
mined without regard to this subparagraph), multiplied by 
"(ii) the fraction determined under section 4206 (a)(2). 
"(2) Withdrawal liability shall be payable in accordance with the 
schedule set forth by the plan sponsor under subsection (bXD begin-
ning no later than 60 days after the date of the demand notwithstand-
ing any request for review or appeal of determinations of the amount 
of such liability or of the schedule. 
Annual 
"(3) Each annual payment determined under paragraph (1)(C) shall 
payment. 
be payable in 4 equal installments due quarterly, or at other intervals 
specified by plan rules. If a pa3mient is not made when due, interest 
on the payment shall accrue from the due date until the date on 
which the payment is made. 
"(4) The employer shall be entitled to prepay the outstanding 
amount of the unpaid annual withdrawal liability payments deter-
mined under paragraph (IXC), plus accrued interest, if any, in whole 
or in part, without penalty. If the prepa5mient is made pursuant to 
a withdrawal which is later determined to be part of a with-
drawEd described in paragraph (IXD), the withdrawal liability of the 
employer shall not be limited to the amount of the prepa5m[ient. 
Default. 
"(5) In the event of a default, a plan sponsor may require immediate 
payment of the outstanding amount of an employer's withdrawal 
liability, plus accrued interest on the total outstanding liability from 
the due date of the first pajmient which was not timely made. For 
purposes of 
this section, the term 'default' means— 
"(A) the failure of an employer to make, when due, any 
payment under this section, if the failure is not cured within 60 
days after the employer receives written notification from the 
plan sponsor of 
such failure, and 
"(B) any other event defined in rules adopted by the plan which 
indicates a substantial likelihood that an employer will be 
unable to pay its withdrawal liability. 
"(6) Except as provided in paragraph (l)(AXii), interest under this 
subsection shall be charged at rates based on prevailing market rates 
for comparable obligations, in accordance with regulations prescribed 
by the corporation. 
"(7) A multiemployer plan may adopt rules for other terms and 
conditions for the satisfaction of an employer's withdrawal liability if 
such rules— 
"(A) are consistent with this Act, and 
"(B) are not inconsistent with regulations of the corporation. 
"(8) In the case of a terminated multiemployer plan, an employer's 
obligation to make payments under this section ceases at the end of 
the plan year in which the assets of the plan (exclusive of withdrawal 
liability claims) are sufficient to meet all obligations of the plan, as 
determined by the corporation. 
29 use 1106. 
"(d) The prohibitions provided in section 406(a) do not apply to any 
action required or permitted under this part. 
PUBLIC LAW 96-364—SEPT. 26, 1980 
94 STAT. 1239 
"APPROVAL OF AMENDMENTS 
"SEC. 4220. (a) Except as provided in subsection fl)), if an amend- 
2
9 use 1400. 
ment to a multiemployer plan authorized by any preceding section of 
this part is adopted more than 36 months after the effective date of 
this section, the amendment shall be effective only if the corporation 
approves the amendment, or, within 90 days after the corporation 
receives notice and a copy of the amendment from the plan sponsor, 
fails to disapprove the amendment. 
"(b) An amendment permitted by section 4211(c)(5) may be adopted 
only in accordance with that section. 
"(c) The corporation shall disapprove an amendment referred to in 
subsection (a) or (b) only if the corporation determines that the 
amendment creates an unreasonable risk of loss to plem participants 
and beneficiaries or to the corporation. 
"RESOLUTION OP DISPUTES 
"SEC. 4221. (aXD Any dispute between an employer and the plan 
29 use I40i. 
sponsor of a multiemployer plan concerning a determination made 
under sections 4201 through 4219 shall be resolved through arbitra- 
Ante, p. 1217. 
tion. Either party may initiate the arbitration proceeding within a 
60-day period after the earlier o
f
— 
"(A) the date of notification to the employer under section 
4219(b)(2)(B), or 
"(B) 120 days after the date of the employer's request under 
section 4219(b)(2)(A). 
The parties may jointly initiate arbitration within the 180-day period 
after the date of the plan sponsor's demand under section 4219(b)(1). 
"(2) An arbitration proceeding under this section shall be con- 
Arbitration, 
ducted in accordance with fair and equitable procedures to be 
proceedings. 
promulgated by the corporation. The plan sponsor may purchase 
insurance to cover potential liability of the arbitrator. If the parties 
have not provided for the costs of the arbitration, including arbitra-
tor's fees, by agreement, the arbitrator shall assess such fees. The 
arbitrator may also award reasonable attorney's fees. 
"(3)(A) For purposes of any proceeding under this section, any 
determination made by a plan sponsor under sections 4201 through 
4219 and section 4225 is presumed correct unless the party contesting 
the determination shows by a preponderance of the evidence that the 
determination was unreasonable or clearly erroneous. 
"(B) In the case of the determination of a plan's unfunded vested 
benefits for a plan year, the determination is presumed correct unless 
a party contesting the determination shows by a preponderance of 
evidence that— 
"(i) the actuarial assumptions and methods used in the deter-
mination were, in the aggregate, unreasonable (taking into 
account the experience of the plan and reasonable expectations), 
or 
"(ii) the plan's actuary made a significant error in applying the 
actuarial assumptions or methods. 
"(b)(1) If no arbitration proceeding has been initiated pursuant to 
subsection (a), the amounts demanded by the plan sponsor under 
section 4219(b)(1) shall be due and owing on the schedule set forth by 
the plan sponsor. The plan sponsor may bring an action in a State or 
Federal court of competent jurisdiction for collection. 
"(2) Upon completion of the arbitration proceedings in favor of one 
of 
the parties, any party thereto may bring an action, no later than 30 
94 STAT. 1240 
PUBLIC LAW 96-364—SEPT. 26, 1980 
Post, p. 1263. 
9 use 1. 
Employer 
payments. 
Post, p. 1295. 
Information 
request. 
days after the issuance of an arbitrator's award, in an appropriate 
United States district court in accordance with section 4301 to 
enforce, vacate, or modify the arbitrator's award. 
"(3) Any arbitration proceedings under this section shall, to the 
extent consistent with this title, be conducted in the same manner, 
subject to the same limitations, carried out with the same powers 
(including subpena power), and enforced in United States courts as an 
arbitration proceeding carried out under title 9, United States Code. 
"(c) In any proceeding under subsection (b), there shall be a 
presumption, rebuttable only by a clear preponderance of the evi-
dence, that the findings of fact made by the arbitrator were correct. 
"(d) Payments shall be made by an employer in accordance with 
the determinations made under this part until the arbitrator issues a 
final decision with respect to the determination submitted for arbi-
tration, with any necessary adjustments in subsequent payments for 
overpayments or underpayments arising out of the decision of the 
arbitrator with respect to the determination. If the employer fails to 
make timely payment in accordance with such final decision, the 
employer shall be treated as being delinquent in the making of a 
contribution required under the plan (within the meaning of section 
515). 
"(e) If any employer requests in writing that the plan sponsor make 
available to the employer general information necessary for the 
employer to compute its withdrawal liability with respect to the plan 
(other than information which is unique to that employer), the plan 
sponsor shall furnish the information to the employer without 
charge. If any employer requests in writing that the plan sponsor 
make an estimate of such employer's potential withdrawal liability 
with respect to the plan or to provide information unique to 
that employer, the plan sponsor may require the employer to pay 
the reasonable cost of making such estimate or providing such 
information. 
Supplemental 
reimbursement 
program. 
29 u s e 1402. 
11 u s e 101. 
Cost. 
REIMBURSEMENTS FOR UNCOLLECTIBLE WITHDRAWAL UABILITY 
"SEC. 4222. (a) By May 1, 1982, the corporation shall establish by 
regulation a supplemental program to reimburse multiemployer 
plans for withdrawal liability payments which are due from employ-
ers and which are determined to be uncollectible for reasons arising 
out of cases or proceedings involving the employers under title 11, 
United States Code, or similar cases or proceedings. Participation in 
the supplemental program shall be on a voluntary basis, and a plan 
which elects coverage under the program shall pay premiums to the 
corporation in accordance with a premium schedule which shall be 
prescribed from time to time by the corporation. The premium 
schedule shall contain such rates and bases for the application of such 
rates as the corporation considers to be appropriate. 
"(b) The corporation may provide under the program for reimburse-
ment of amounts of withdrawal liability determined to be uncol-
lectible for any other reeisons the corporation considers appropriate. 
"(c) The cost of the program (including such administrative and 
legal costs as the corporation considers appropriate) may be paid only 
out of premiums collected under such program. 
"(d) The supplemental program may be offered to eligible plans on 
such terms and conditions, and with such limitations with respect to 
the payment of reimbursements (including the exclusion of de mini-
mis amounts of uncollectible employer liability, and the reduction or 
PUBLIC LAW 96-364—SEPT. 26, 1980 
94 STAT. 1241 
elimination of reimbursements which cannot be paid from collected 
premiums) and such restrictions on withdrawal from the program, as 
the corporation considers necessary and appropriate. 
"(e) The corporation may enter into arrangements with private 
insurers to carry out in whole or in part the program authorized by 
this section and may require plans which elect coverage under the 
program to elect coverage by those private insurers. 
WITHDRAV(^AL LIA3IUTY PAYME^^^ FUND 
"SEC. 4223. (a) The plan sponsors of multiemployer plans may 29 use 1403 
establish or participate in a withdrawal liability payment fund. 
"(b) For purposes of this section, the term 'withdrawal liability Definitions. 
pajrment fund', and the term 'fund', mean a trust which— 
"(1) is established and maintained under section 501(c)(22) of Po^t, p. 1290 
the Internal Revenue Code of 1954, 
"(2) maintains agreements which cover a substantial portion of 
the participants who are in multiemployer plans which (under 
the rules of the trust instrument) are eligible to participate in the 
fund, 
"(3) is funded by amounts paid by the plans which participate 
in the fund, and 
"(4) is administered by a Board of Trustees, and in the 
administration of the fund there is equal representation of— 
"(A) trustees representing employers who are obligated to 
contribute to the plans participating in the fund, and 
"(B) trustees representing employees who are participants 
in plans which participate in the fund. 
"(cXD If an employer withdraws from a plan which participates in 
a withdrawal liability payment fund, then, to the extent provided in 
the trust, the fund shall pay to that plan— 
"(A) the employer s unattributable liability, 
"(B) the employer's withdrawal liability payments which 
would have been due but for section 4208, 4209, 4219, or 4225, 
"(C) the employer's withdrawal liability payments to the 
extent they are uncollectible. 
"(2) The fund may provide for the pa3nnent of the employer's 
attributable liability if the fund— 
"(A) provides for the payment of both the attributable and the 
unattributable liability of the employer in a single payment, and 
"(B) is subrogated to all rights of the plan against the 
employer. 
"(3) For purposes of this section, the term— 
"(A) 'attributable liability' means the excess, if any, deter-
mined under the provisions of a plan not inconsistent with 
regulations of the corporation, of— 
"(i) the value of vested benefits accrued as a result of 
service with the employer, over 
"(ii) the value of plan assets attributed to the employer, 
and 
"(B) 'unattributable liability' means the excess of withdrawal 
liability over attributable liability. 
Such terms may be further defined, and the manner in which they 
shall be applied may be prescribed, by the corporation by regulation. 
"(4XA) The trust of a fund shall be maintained for the exclusive 
purpose of paying— 
"(i) any amount described in paragraph (1) and paragraph (2), 
and 
"Attributable 
liability." 
' 'Unattributable 
liability." 
94 STAT. 1242 
PUBLIC LAW 96-364—SEPT. 26, 1980 
29 u s e 1103, 
1104. 
29 u s e 1108. 
26 u s e 4975. 
Fiduciary. 
29 u s e 159. 
Insurance 
purchase. 
"(ii) reasonable and necessary administrative expenses in 
connection with the establishment and operation of the trust and 
the processing of claims against the fund. 
"(B) The amounts paid by a plan to a fund shall be deemed a 
reasonable expense of administering the plan under sections 403(c)(1) 
and 404(a)(l)(A)(ii), and the payments made by a fund to a participat-
ing plan shall be deemed services necessary for the operation of the 
plan within the meaning of section 408(b)(2) or within the meaning of 
section 4975(d)(2) of the Internal Revenue Code of 1954. 
"(d)(1) For purposes of this part— 
"(A) only amounts paid by the fund to a plan under subsection 
(c)(1)(A) shall be credited to withdrawal liability otherwise pay-
able by the employer, unless the plan otherwise provides, and 
"(B) any amounts paid by the fund under subsection (c) to a 
plan shall be treated by the plan as a payment of withdrawal 
liability to such plan. 
"(2) For purposes of applying provisions relating to the funding 
standard accounts (and minimum contribution 
requirements), 
amounts paid from the plan to the fund shall be applied to reduce the 
amount treated as contributed to the plan. 
"(e) The fund shall be subrogated to the rights of the plan against 
the employer that has withdrawn from the plan for amounts paid by 
a fund to a plan under— 
"(1) subsection (c)(1)(A), to the extent not credited under 
subsection (d)(1)(A), and 
"(2) subsection (c)(1)(C). 
"(f) Notwithstanding any other provision of this Act, a fiduciary of 
the fund shall discharge the fiduciary's duties with respect to the 
fund in accordance with the standards for fiduciaries prescribed by 
this Act (to the extent not inconsistent with the purposes of this 
section), and in accordance with the documents and instruments 
governing the fund insofar as such documents and instruments are 
consistent with the provisions of this Act (to the extent not inconsist-
ent with the purposes of this section). The provisions of the preceding 
sentence shall supersede any and all State laws relating to fiduciaries 
insofar as they may now or hereafter relate to a fund to which this 
section applies. 
"(g) No payments shall be made from a fund to a plan on the 
occasion of a withdrawal or partial withdrawal of an employer from 
such plan if the employees representing the withdrawn contribution 
base units continue, after such withdrawal, to be represented under 
section 9 of the National Labor Relations Act (or other applicable 
labor laws) in negotiations with such employer by the labor organiza-
tion which represented such employees immediately preceding such 
withdrawal. 
"(h) Nothing in this section shall be construed to prohibit the 
purchase of insurance by an employer from any other person, to limit 
the circumstances under which such insurance would be payable, or 
to limit in any way the terms and conditions of such insurance, 
"(i) The corporation may provide by regulation rules not inconsist-
ent with this section governing the establishment and maintenance 
of funds, but only to the extent necessary to carry out the purposes of 
this part (other than section 4222). 
ALTERNATIVE METHOD OF WITHDRAWAL LIABILITY PAYMENTS 
29 use 1404. 
"SEC. 4224. A multiemployer plan may adopt rules providing for 
other terms and conditions for the satisfaction of an employer's 
PUBLIC LAW 96-364—SEPT. 26, 1980 
94 STAT. 1243 
withdrawal liability if such rules are consistent with this Act and 
with such regulations as may be prescribed by the corporation. 
"LIMITATION ON WITHDRAWAL LIABILITY 
"SEC. 4225. (a)(1) In the case of bona fide sale of all or substantially 29 use 1405. 
all of the employer's assets in an arm's-length transaction to an 
unrelated party (within the meaning of section 4204(d)), the unfunded Ante, p. 1220. 
vested benefits allocable to an employer (after the application of all 
sections of this part having a lower number designation than this 
section), other than an employer undergoing reorganization under 
title 11, United States Code, or similar provisions of State law, shall n use loi. 
not exceed the greater of— 
"(A) a portion (determined under paragraph (2)) of the liquida-
tion or dissolution value of the employer (determined after the 
sale or exchange of such assets), or 
"(B) the unfunded vested benefits attributable to employees of 
the employer. 
"(2) For purposes of paragraph (1), the portion shall be determined 
in accordance with the following table: 
"If the liquidation or dissolution value 
of the employer after the sale or 
exchange is— 
The portion is— 
Not more than $2,000,000 
30 percent of the amount. 
More than $2,000,000, but not more than 
$600,000, plus 35 percent of the amount 
$4,000,000. 
in excess of $2,000,000. 
More than $4,000,000, but not more than 
$1,300,000, plus 40 percent 
of 
the 
$6,000,000. 
amount in excess of $4,000,000. 
More than $6,000,000, but not more than 
$2,100,000, plus 45 percent 
of the 
$7,000,000. 
amount in excess of $6,000,000. 
More than $7,000,000, but not more than 
$2,550,000, plus 50 percent 
of 
the 
$8,000,000. 
amount in excess of $7,000,000. 
More than $8,000,000, but not more than 
$3,050,000, plus 60 percent 
of the 
$9,000,000. 
amount in excess of $8,000,000. 
More than $9,000,000, but not more than 
$3,650,000, plus 70 percent 
of 
the 
$10,000,000. 
amount in excess of $9,000,000. 
More than $10,000,000 
$4,350,000, plus 80 percent 
of the 
amount in excess of $10,000,000. 
"(b) In the case of an insolvent employer undergoing liquidation or insolvent 
dissolutipn, the unfunded vested benefits allocable to that employer employer. 
shall not exceed an amount equal to the sum of— 
"(1) 50 percent of the unfunded vested benefits allocable to the 
employer (determined without regard to this section), and 
"(2) that portion of 50 percent of the unfunded vested benefits 
allocable to the employer (as determined under paragraph (1)) 
which does not exceed the liquidation or dissolution value of the 
employer determined— 
"(A) as of the commencement of liquidation or dissolution, 
and 
"(B) after reducing the liquidation or dissolution value of 
the employer by the amount determined under paragraph 
(1). 
"(c) To the extent that the withdrawal liability of an employer is 
attributable to his obligation to contribute to or under a plan as an 
individual (whether as a sole proprietor or as a member of a 
i; 
partnership), property which may be exempt from the estate under 
section 522 of title 11, United States Code, or under similar provisions 
of law, shall not be subject to enforcement of such liability. 
"(d) For purposes of this section— 
94 STAT. 1244 
PUBLIC LAW 96-364—SEPT. 26, 1980 
Insolvency. 
"(1) an employer is insolvent if the liabilities of the employer, 
including withdrawal liability under the plan (determined with-
out regard to subsection Q))), exceed the assets of the employer 
(determined as of the commencement of the liquidation or 
dissolution), and 
"(2) the liquidation or dissolution value of the employer shall 
be determined without regard to such withdrawal liability. 
"(e) In the case of one or more withdrawals of an employer 
attributable to the same sale, liquidation, or dissolution, under 
regulations prescribed by the corporation— 
"(1) all such withdrawals shall be treated as a single with-
drawal for the purpose of applying this section, and 
"(2) the withdrawal liability of the employer to each plan shall 
be an amount which bears the same ratio to the present value of 
the withdrawal liability payments to all plans (after the applica-
tion of the preceding provisions of this section) as the withdrawal 
liability of the employer to such plan (determined without regard 
to this section) bears to the withdrawal liability of the employer 
to all such plans (determined without regard to this section). 
"PART 2—MERGER OR TRANSFER OF PLAN ASSETS OR 
LIABILITIES 
MERGERS AND TRANSFERS BETWEEN MULTIEMPLOYER PLANS 
29 use 1411. 
"SEC. 4231. (a) Unless otherwise provided in regulations prescribed 
by the corporation, a plan sponsor may not cause a multiemployer 
plan to merge with one or more multiemployer plans, or engage in a 
transfer of assets and liabilities to or from another multiemployer 
plan, unless such merger or transfer satisfies the requirements of 
subsection (b). 
Conditions. 
"(b) A merger or transfer satisfies the requirements of this section 
i
f
— 
"(1) in accordance with regulations of the corporation, the plan 
sponsor of a multiemployer plan notifies the corporation of a 
merger with or transfer of plan assets or liabilities to another 
multiemployer plan at least 120 days before the effective date of 
the merger or transfer; 
"(2) no participant's or beneficiary's accrued benefit will be 
lower immediately after the effective date of the merger or 
transfer than the benefit immediately before that date; 
"(3) the benefits of participants and beneficiaries are not 
reasonably expected to be subject to suspension under section 
4245; and 
"(4) an actuarial valuation of the assets and liabilities of each 
of the affected plans has been performed during the plan year 
preceding the effective date of 
the merger or transfer, based upon 
the most recent data available as of the day before the start of 
that plan year, or other valuation of such assets and liabilities 
performed under such standards and procedures as the corpora-
tion may prescribe by regulation. 
"(c) The merger of multiemployer plans or the transfer of assets or 
liabilities between multiemployer plans, shall be deemed not to 
2
9 use 1106. 
constitute a violation of the provisions of section 406(a) or section 
406(b)(2) if the corporation determines that the merger or transfer 
otherwise satisfies the requirements of 
this section. 
Successor plan. 
"(d) A plan to which liabilities are transferred under this section is 
Ante, p. 1210. 
a succcssor plan for purposes of section 4022A(b)(2)(B). 
PUBLIC LAW 96-364—SEPT. 26, 1980 
94 STAT. 1245 
"TRANSFERS BETWEEN A MULTIEMPLOYER PLAN AND A SINGLE-
EMPLOYER PLAN 
"SEC. 4232. (a) A transfer of assets or liabilities between, or a 
merger of, a multiemployer plan and a single-employer plan shall 
satisfy the requirements of 
this section. 
"(b) No accrued benefit of a participant or beneficiary may be lower 
immediately after the effective date of a transfer or merger described 
in subsection (a) than the benefit immediately before that date. 
"(c)(1) Except as provided in paragraphs (2) and (3), a multiem-
ployer plan which transfers liabilities to a single-employer plan shall 
be liable to the corporation if the single-employer plan terminates 
within 60 months after the effective date of the transfer. The amount 
of liability shall be the lesser of^ 
"(A) the amount of the plan asset insufficiency of the termi-
nated single-employer plan, less 30 percent of the net worth of 
the employer who maintained the single-employer plan, deter-
mined in accordance with section 4062 or 4064, or 
"(B) the value, on the effective date of the transfer, of the 
unfunded benefits transferred to the single-employer plan which 
are guaranteed under section 4022. 
"(2) A multiemployer plan shall be liable to the corporation as 
provided in paragraph (1) unless, within 180 days after the corpora-
tion receives an application (together with such information as the 
corporation may reasonably require for purposes of such application) 
from the multiemployer plan sponsor for a determination under this 
paragraph— 
"(A) the corporation determines that the interests of the plan 
participants and beneficiaries and of the corporation are ade-
quately protected, or 
"(B) fails to make any determination regarding the adequacy 
with which such interests are protected with respect to such 
transfer of liabilities. 
If, after the receipt of such application, the corporation requests from 
the plan sponsor additional information necessary for the determina-
tion, the running of the 180-day period shall be suspended from the 
date of such request until the receipt by the corporation of the 
additional information requested. The corporation may by regulation 
prescribe procedures and standards for the issuance of determina-
tions under this paragraph. This paragraph shall not apply to any 
application submitted less than 180 days after the date of enactment 
of the Multiemployer Pension Plan Amendments Act of 1980. 
"(3) A multiemployer plan shall not be liable to the corporation as 
provided in paragraph (1) in the case of a transfer from the multiem-
ployer plan to a single-employer plan of liabilities which accrued 
under a single-employer plan which merged with the multiemployer 
plan, if, the value of liabilities transferred to the single-employer 
plan does not exceed the value of the liabilities for benefits which 
accrued before the merger, and the value of the assets transferred to 
the single-employer plan is substantially equal to the value of the 
eissets which would have been in the single-employer plan if the 
employer had maintained and funded it as a separate plan under 
which no benefits accrued after the date of the merger. 
"(4) The corporation may make equitable arrangements with 
multiemployer plans which are liable under this subsection for 
satisfaction of their liability. 
"(d) Benefits under a single-employer plan to which liabilities are 
transferred in accordance with this section are guaranteed under 
29 use 1412. 
29 use 1362, 
1364. 
29 use 1322. 
Procedures and 
standards. 
Ante, p. 1208. 
Guaranteed 
benefits. 
94 STAT. 1246 
PUBLIC LAW 96-364—SEPT. 26, 1980 
29 u s e 1322. 
Transfer 
agreement. 
Additional 
requirements. 
Transfer 
approval. 
Ante, p. 1216. 
29 u s e 1413. 
Notice and 
findings. 
11 u s e 101. 
Ante, p. 1210. 
29 u s e 1368. 
29 u s e 1342. 
section 4022 to the extent provided in that section as of the effective 
date of the transfer and the plan is a successor plan. 
"(e)(1) Except as provided in paragraph (2), a multiemployer plan 
may not transfer liabilities to a single-employer plan unless the plan 
sponsor of the plan to which the liabilities would be transferred 
agrees to the transfer. 
"(2) In the case of a transfer described in subsection (c)(3), para-
graph (1) of this subsection is satisfied by the advance agreement to 
the transfer by the employer who will be obligated to contribute to 
the single-employer plan. 
"(f)(1) The corporation may prescribe by regulation such additional 
requirements with respect to the transfer of assets or liabilities as 
may be necessary to protect the interests of plan participants and 
beneficiaries and the corporation. 
"(2) Except as otherwise determined by the corporation, a transfer 
of assets or liabilities to a single-employer plan from a plan in 
reorganization under section 4241 is not effective unless the corpora-
tion approves such transfer. 
"(3) No transfer to which this section applies, in connection with a 
termination described in section 4041A(a)(2) shall be effective unless 
the transfer meets such requirements as may be established by 
the corporation to prevent an increase in the risk of loss to the 
corporation. 
"PARTITION 
"SEC. 4233. (a) The corporation may order the partition of a 
multiemployer plan in accordance with this section. 
"(b) A plan sponsor may apply to the corporation for an order 
partitioning a plan. The corporation may not order the partition of a 
plan except upon notice to the plan sponsor and the participants and 
beneficiaries whose vested benefits will be affected by the partition of 
the plan, and upon finding that— 
"(1) a substantial reduction in the amount of aggregate contri-
butions under the plan has resulted or will result from a case or 
proceeding under title 11, United States Code, with respect to an 
employer; 
"(2) the plan is likely to become insolvent; 
"(3) contributions will have to be increased significantly in 
reorganization to meet the minimum contribution requirement 
and prevent insolvency; and 
"(4) partition would significantly reduce the likelihood that the 
plan will become insolvent. 
"(c) The corporation may order the partition of a plan notwith-
standing the pendency of a proceeding described in subsection (b)(1). 
"(d) The corporation's partition order shall provide for a transfer of 
no more than the nonforfeitable benefits directly attributable to 
service with the employer referred to in subsection Cb)(l) and an 
equitable share of assets. 
"(e) The plan created by the partition is— 
"(1) a successor plan to which section 4022A applies, and 
"(2) a terminated multiemployer plan to which section 
4041A(d) applies, with respect to which only the employer 
described in subsection (b)(1) has withdrawal liability, and to 
which section 4068 applies. 
"(f) The corporation may proceed under section 4042 (c) through (h) 
for a decree partitioning a plan and appointing a trustee for the 
terminated portion of a partitioned plan. The court may order the 
partition of a plan upon making the findings described in subsection 
PUBLIC LAW 96-364—SEPT. 26, 1980 
94 STAT. 1247 
(b) (1) through (4), and subject to the conditions set forth in subsec-
tions (c) through (e). 
"ASSET TRANSFER RULES 
"SEC. 4234. (a) A transfer of assets from a multiemployer plan to 29 USC 1414. 
another plan shall comply with asset-transfer rules which shall be 
adopted by the multiemployer plan and which— 
"(1) do not unreasonably restrict the transfer of plan assets in 
connection with the transfer of plan liabilities, and 
"(2) operate and are applied uniformly with respect to each 
proposed transfer, except that the rules may provide for reason-
able variations taking into account the potential 
financial 
impact of a proposed transfer on the multiemployer plan. 
Plan rules authorizing asset transfers consistent with the require-
ments of section 4232(c)(3) shall be considered to satisfy the require-
ments of this subsection. 
"(b) The corporation shall prescribe regulations which exempt de Regulations, 
minimis transfers of assets from the requirements of this part. 
"(c) This part shall not apply to transfers of assets pursuant to 
written reciprocity agreements, except to the extent provided in 
regulations prescribed by the corporation. 
TRANSFERS PURSUANT TO CHANGE IN BARGAINING REPRESENTATIVE 
"SEC. 4235. (a) In any case in which an employer has completely or 
partially withdrawn from a multiemployer plan (hereafter in this 
section referred to as the 'old plan') as a result of a certified change of 
collective bargaining representative occurring after April 28, 1980, if 
participants of the old plan who are employed by the employer will, 
as a result of that change, participate in another multiemployer plan 
(hereafter in this section referred to as the 'new plan'), the old plan 
shall transfer assets and liabilities to the new plan in accordance with 
this section. 
"(b)(1) The employer shall notify the plan sponsor of the old plan of 
a change in multiemployer plan participation described in subsection 
(a) no later than 30 days after the employer determines that the 
change will occur. 
"(2) The plan sponsor of the old plan shall— 
"(A) notify the employer o
f
— 
"(i) the amount of the employer's withdrawal liability 
determined under part 1 with respect to the withdrawal, 
"(ii) the old plan's intent to transfer to the new plan the 
nonforfeitable benefits of the employees who are no longer 
working in covered service under the old plan as a result of 
the change of bargaining representative, and 
"(iii) the amount of, assets and liabilities which are to be 
transferred to the new plan, and 
"(B) notify the plan sponsor of the new plan of the benefits, 
assets, and liabilities which will be transferred to the new plan. 
"(3) Within 60 days after receipt of the notice described in para-
graph (2)(B), the new plan may file an appeal with the corporation to 
prevent the transfer. The transfer shall not be made if the corpora-
tion determines that the new plan would suffer substantial financial 
harm as a result of the transfer. Upon notification described in 
paragraph (2), if— 
"(A) the employer fails to object to the transfer within 60 days 
after receipt of the notice described in paragraph (2)(A), or 
"(B) the new plan either— 
New plan assets 
and liabilities. 
29 USC 1415. 
Notification. 
Plan sponsor, 
functions. 
Transfer 
prevention, 
appeal. 
79-194 
O—81—pt. 1 
82 : QL3 
94 STAT. 1248 
PUBLIC LAW 96-364—SEPT. 26, 1980 
Employer's 
withdrawal 
liability amount, 
reduction. 
Ante, p. 1217. 
Escrow 
payments. 
"(i) fails to file such an appeal, or 
"(ii) the corporation, pursuant to such an appeal, fails to 
find that the new plan would suffer substantial financial 
harm as a result of the transfer described in the notice under 
paragraph (2)(B) within 180 days after the date on which the 
appeal is filed, 
then the plan sponsor of the old plan shall transfer the appropriate 
amount of assets and liabilities to the new plan. 
"(c) If the plan sponsor of the old plan transfers the appropriate 
amount of assets and liabilities under this section to the new plan, 
then the amount of the employer's withdrawal liability (as deter-
mined under section 4201(b) without regard to such transfer and this 
section) with respect to the old plan shall be reduced by the amount 
by which— 
"(1) the value of the unfunded vested benefits allocable to the 
employer which were transferred by the plan sponsor of the old 
plan to the new plan, exceeds 
"(2) the value of the assets transferred, 
"(d) In any case in which there is a complete or partial withdrawal 
described in subsection (a), if— 
"(1) the new plan files an appeal with the corporation under 
subsection Ot))(3), and 
"(2) the employer is required by section 4219 to begin making 
payments of withdrawal liability before the earlier o
f
— 
"(A) the date on which the corporation finds that the new 
plan would not suffer substantial financial harm as a result 
of the transfer, or 
"(B) the last day of the 180-day period beginning on the 
date on which the new plan files its appeal, 
then the employer shall make such payments into an escrow held by 
a bank or similar financial institution satisfactory to the old plan. If 
the transfer is made, the amounts paid into the escrow shall be 
returned to the employer. If the transfer is not made, the amounts 
paid into the escrow shall be paid to the old plan and credited against 
the employer's withdrawal liability. 
"(e)(1) Notwithstanding subsection (b), the plan sponsor shall not 
transfer any assets to the new plan if— 
"(A) the old plan is in reorganization (within the meaning of 
section 4241(a)), or 
"(B) the transfer of assets would cause the old plan to go into 
reorganization (within the meaning of section 4241(a)). 
"(2) In any case in which a transfer of assets from the old plan to 
the new plan is prohibited by paragraph (1), the plan sponsor of the 
old plan shall transfer— 
"(A) all nonforfeitable benefits described in subsection Ot>)(2), if 
the value of such benefits does not exceed the withdrawal 
liability of the employer with respect to such withdrawal, or 
"(B) such nonforfeitable benefits having a value equal to the 
withdrawal liability of the employer, if the value of such benefits 
exceeds the withdrawal liability of the employer. 
"(f)(1) Notwithstanding subsections O
b
) and (e), the plan sponsors of 
the old plan and the new plan may agree to a transfer of assets and 
liabilities that complies with sections 4231 and 4234, rather than this 
section, except that the employer's liability with respect to the 
withdrawal from the old plan shall be reduced under subsection (c) as 
if assets and liabilities had been transferred in accordance with this 
section. 
PUBLIC LAW 96-364—SEPT. 26, 1980 
94 STAT. 1249 
"(2) If the employer withdraws from the new plan within 240 
months after the effective date of a transfer of assets and liabilities 
described in this section, the amount of the employer's withdrawal 
liability to the new plan shall be the greater of— 
"(A) the employer's withdrawal liability determined under 
part 1 with respect to the new plan, or 
"(B) the amount by which the employer's withdrawal liability 
to the old plan was reduced under subsection (c), reduced by 5 
percent for each 12-month period following the effective date of 
the transfer and ending before the date of the withdrawal from 
the new plan. 
"(g) For purposes of this section— 
"(1) 'appropriate amount of assets' means the amount by which 
the value of the nonforfeitable benefits to be transferred exceeds 
the amount of the employer's withdrawal liability to the old plan 
(determined under part 1 without regard to section 4211(e)), and Ante, p. 1226. 
"(2) 'certified change of collective bargaining representative' 
means a change of collective bargaining representative certified 
under the Labor-Management Relations Act, 1947, or the Rail-
way Labor Act. 
"PART 3—REORGANIZATION; MINIMUM CONTRIBUTION 
REQUIREMENT FOR MULTIEMPLOYER PLANS 
Definitions. 
29 u s e 141. 
45 u s e 151. 
REORGANIZATION STATUS 
"SEC. 4241. (a) A multiemployer plan is in reorganization for a plan 
year if the plan's reorganization index for that year is greater than 
zero. 
"(b)(1) A plan's reorganization index for any plan year is the excess 
of— 
"(A) the vested benefits charge for such year, over 
"(B) the net charge to the funding standard account for such 
year. 
"(2) For purposes of this part, the net charge to the funding 
standard account for any plan year is the excess (if any) of— 
"(A) the charges to the funding standard account for such year 
under section 412(b)(2) of the Internal Revenue Code of 1954, over 
"(B) the credits to the funding standard account under section 
412(b)(3)(B) of such Code. 
"(3) For purposes of this part, the vested benefits charge for any 
plan year is the amount which would be necessary to amortize the 
plan's unfunded vested benefits as of the end of the base plan year in 
equal annual installments— 
"(A) over 10 years, to the extent such benefits are attributable 
to persons in pay status, and 
"(B) over 25 years, to the extent such benefits are attributable 
to other participants. 
"(4)(A) The vested benefits charge for a plan year shall be based on 
an actuarial valuation of the plan as of the end of the base plan year, 
adjusted to reflect— 
"(i)any— 
"(I) decrease of 5 percent or more in the value of plan 
assets, or increase of 5 percent or more in the number of 
persons in pay status, during the period beginning on the 
first day of the plan year following the base plan year and 
ending on the adjustment date, or 
29 u s e 1421. 
Reorganization 
index. 
Funding 
standard 
account. 
26 u s e 412. 
Vested benefits 
charge. 
Actuarial 
valuation. 
94 STAT. 1250 
PUBLIC LAW 96-364—SEPT. 26, 1980 
Base plan year. 
Relevant 
collective 
bargaining 
agreement. 
Relevant 
effective date. 
Adjustment 
date. 
"(II) at the election of the plan sponsor, actuarial valua-
tion of the plan as of the adjustment date or any later date 
not later than the last day of the plan year for which the 
determination is being made, 
"(ii) any change in benefits under the plan which is not 
otherwise taken into account under this subparagraph and 
which is pursuant to any amendment— 
"(I) adopted before the end of the plan year for which the 
determination is being made, and 
"(II) effective after the end of the base plan year and on or 
before the end of the plan year referred to in subclause (I), 
and 
"(iii) any other event (including an event described in subpara-
graph (B)(i)(I)) which, as determined in accordance with regula-
tions prescribed by the Secretary, would substantially increase 
the plan's vested benefit charge. 
"(B)(i) In determining the vested benefits charge for a plan year 
following a plan year in which the plan was not in reorganization, 
any change in benefits which— 
"(I) results from the changing of a group of participants from 
one benefit level to another benefit level under a schedule of plan 
benefits as a result of changes in a collective bargaining agree-
ment, or 
"(II) results from any other change in a collective bargaining 
agreement, 
shall not be taken into account except to the extent provided in 
regulations prescribed by the Secretary of the Treasury. 
'(ii) Except as otherwise determined by the Secretary of the 
Treasury, in determining the vested benefits charge for any plan year 
following any plan year in which the plan was in reorganization, any 
change in benefits— 
"(I) described in clause (i)(I), or 
"(II) described in clause (i)(II) as determined under regulations 
prescribed by the Secretary of the Treasury, 
shall, for purposes of subparagraph (A)(ii), be treated as a change in 
benefits pursuant to an amendment to a plan. 
"(5)(A) For purposes of this part, the base plan year for any plan 
year is— 
"(i) if there is a relevant collective bargaining agreement, the 
last plan year ending at least 6 months before the relevant 
effective date, or 
"(ii) if there is no relevant collective bargaining agreement, the 
last plan year ending at least 12 months before the beginning of 
the plan year. 
"(B) For purposes of this part, a relevant collective bargaining 
agreement is a collective bargaining agreement— 
"(i) which is in effect for at least 6 months during the plan year, 
and 
"(ii) which has not been in effect for more than 36 months as of 
the end of the plan year. 
"(C) For purposes of this part, the relevant effective date is the 
earliest of the effective dates for the relevant collective bargaining 
agreements. 
"(D) For purposes of this part, the adjustment date is the date 
which is— 
"(i) 90 days before the relevant effective date, or 
"(ii) if there is no relevant effective date, 90 days before the 
beginning of the plan year. 
PUBLIC LAW 96-364—SEPT. 26, 1980 
94 STAT. 1251 
"(6) For purposes of this part, the term 'person in pay status' "Person in pay 
means— 
status." 
"(A) a participant or beneficiary on the last day of the base 
plan year who, at any time during such year, was paid an early, 
late, normal, or disability retirement benefit (or a death benefit 
related to a retirement benefit), and 
"(B) to the extent provided in regulations prescribed by the 
Secretary of the Treasury, any other person who is entitled to 
such a benefit under the plan. 
"(7) For purposes of paragraph (3)— 
"(A) in determining the plan's unfunded vested benefits, plan 
assets shall first be allocated to the vested benefits attributable 
to persons in pay status, and 
"(B) the vested benefits charge shall be determined without 
regard to reductions in accrued benefits under section 4244A 
which are first effective in the plan year. 
' " 
"(8) For purposes of this part, any outstanding claim for with-
drawal liability shall not be considered a plan asset, except as 
otherwise provided in regulations prescribed by the Secretary of the 
Treasury. 
"(9) For purposes of this part, the term 'unfunded vested benefits' 
means with respect to a plan, an amount (determined in accordance 
with regulations prescribed by the Secretary of the Treasury) equal 
to— 
"(A) the value of nonforfeitable benefits under the plan, less 
' '(B) the value of assets of the plan. 
"(c) Except as provided in regulations prescribed by the corpora-
tion, while a plan is in reorganization a benefit with respect to a 
participant (other than a death benefit) which is attributable to 
employer contributions and which has a value of more than $1,750 
may not be paid in a form other than an annuity which Oay itself or in 
combination with social security, railroad retirement, or workers' 
compensation benefits) provides substantially level payments over 
the life of the participant. 
"(d) Any multiemployer plan which terminates under section 
4041A(a)(2) shall not be considered in reorganization after the last ^«<e, p. 1216. 
day of the plan year in which the plan is treated as having termi-
nated. 
"Unfunded 
vested benefits. 
NOTICE OF REORGANIZATION AND FUNDING REQUIREMENTS 
"SEC. 4242. (a)(1) If— 
29 use 1422. 
"(A) a multiemployer plan is in reorganization for a plan year, 
and 
"(B) section 4243 would require an increase in contributions for 
such plan year, 
the plan sponsor shall notify the persons described in paragraph (2) 
that the plan is in reorganization and that, if contributions to the 
plan are not increased, accrued benefits under the plan may be 
reduced or an excise tax may be imposed (or both such reduction and 
imposition may occur). 
"(2) The persons described in this paragraph are— 
"(A) each employer who has an obligation to contribute under 
the plan (within the meaning of section 4201(h)(5)), and 
Ante, p. 1217. 
"(B) each employee organization which, for purposes of collec-
tive bargaining, represents plan participants employed by such 
an employer. 
94 STAT. 1252 
PUBLIC LAW 96-364—SEPT. 26, 1980 
Additional or 
alternative 
requirements. 
"(3) The determination under paragraph (1)(B) shall be made 
without regard to the overburden credit provided by section 4244. 
"(b) The corporation may prescribe additional or alternative re-
quirements for assuring, in the case of a plan with respect to which 
notice is required by subsection (a)(1), that the persons described in 
subsection (a)(2)— 
"(1) receive appropriate notice that the plan is in reorganiza-
tion, 
"(2) are adequately informed of the implications of reorganiza-
tion status, and 
"(3) have reasonable access to information relevant to the 
plan's reorganization status. 
29 u s e 1423. 
Accumulated 
funding 
deficiency. 
29 u s e 1082. 
Withdrawal 
liability 
payments. 
MINIMUM CONTRIBUTION REQUIREMENT 
"SEC. 4243, (a)(1) For any plan year for which a plan is in 
reorganization— 
"(A) the plan shall continue to maintain its funding standard 
account while it is in reorganization, and 
"(B) the plan's accumulated funding deficiency under section 
302(a) for such plan year shall be equal to the excess (if any) of— 
"(i) the sum of the minimum contribution requirement for 
such plan year (taking into account any overburden credit 
under section 4244(a)) plus the plan's accumulated funding 
deficiency for the preceding plan year (determined under 
this section if the plan was in reorganization during such 
year or under section 302(a) if the plan was not in reorganiza-
tion), over 
"(ii) amounts considered contributed by employers to or 
under the plan for the plan year (increased by any amount 
waived under subsection (f) for the plan year). 
"(2) For purposes of paragraph (1), withdrawal liability payments 
(whether or not received) which are due with respect to withdrawals 
before the end of the base plan year shall be considered amounts 
contributed by the employer to or under the plan if, as of the 
adjustment date, it was reasonable for the plan sponsor to anticipate 
that such payments would be made during the plan year. 
"(b)(1) Except as otherwise provided in this section, for purposes of 
this part the minimum contribution requirement for a plan year in 
which a plan is in reorganization is an amount equal to the excess 
of— 
"(A) the sum of— 
"(i) the plan's vested benefits charge for the plan year, and 
"(ii) the increase in normal cost for the plan year deter-
mined under the entry age normal funding method which is 
attributable to plan amendments adopted while the plan was 
in reorganization, over 
"(B) the amount of the overburden credit (if any) determined 
under section 4244 for the plan year. 
"(2) If the plan's current contribution base for the plan year is less 
than the plan's valuation contribution base for the plan year, the 
minimum contribution requirement for such plan year shall be equal 
to the product of the amount determined under paragraph (1) (after 
any adjustment required by this part other than this paragraph) and 
a fraction— 
"(A) the numerator of which is the plan's current contribution 
base for the plan year, and 
PUBLIC LAW 96-364—SEPT. 26, 1980 
94 STAT. 1253 
"(B) the denominator of which is the plan's valuation contribu-
tion base for the plan year. 
"(8)(A) If the vested benefits charge for a plan year of a plan in 
reorganization is less than the plan's cash-flow amount for the plan 
year, the plan's minimum contribution requirement for the plan year 
is the amount determined under paragraph (1) (determined before 
the application of paragraph (2)) after substituting the term 'cash-
flow amount' for the term 'vested benefits charge' in paragraph 
(IXA). 
"(B) For purposes of subparagraph (A), a plan's cash-flow amount 
for a plan year is an amount equal to— 
"(i) the amount of the benefits payable under the plan for the 
base plan year, plus the amount of the plan's administrative 
expenses for the base plan year, reduced by 
(ii) the value of the available plan assets for the base plan 
year determined under regulations prescribed by the Secretary 
of the Treasury, 
adjusted in a manner consistent with section 4241(b)(4). 
(c)(1) For purposes of this part, a plan's current contribution base 
for a plan year is the number of contribution base units with respect 
to which contributions are required to be made under the plan for 
that plan year, determined in accordance with regulations prescribed 
by the Secretary of the Treasury. 
"(2)(A) Except as provided in subparagraph (B), for purposes of this 
part a plan's valuation contribution base is the number of contribu-
tion base units for which contributions were received for the base 
plan year— 
"(i) adjusted to reflect declines in the contribution base which 
have occurred (or could reasonably be anticipated) as of the 
adiustment date for the plan year referred to in paragraph (1), 
'(ii) adjusted upward (in accordance with regulations pre-
scribed by the Secretary of the Treasury) for any contribution 
base reduction in the base plan year caused by a strike or lockout 
or by unusual events, such as fire, earthquake, or severe weather 
conditions, and 
"(iii) adjusted (in accordance with regulations prescribed by 
the Secretary of the Treasury) for reductions in the contribution 
base resulting from transfers of liabilities. 
"(B) For any plan year— 
"(i) in which the plan is insolvent (within the meaning of 
section 4245(b)(1)), and 
"(ii) beginning with the first plan year beginning after the 
expiration of all relevant collective bargaining agreements 
which were in effect in the plg^n year in which the plan became 
insolvent, 
the plan's valuation contribution base is the greater of the number of 
contribution base units for which contributions were received for the 
first or second plan year preceding the first plan year in which the 
plan is insolvent, adjusted as provided in clause (ii) or (iii) of 
subparagraph (A). 
"(d)(1) Under regulations prescribed by the Secretary of the Treas-
ury, the minimum contribution requirement applicable to any plan 
for any plan year which is determined under subsection (b) (without 
regard to subsection (b)(2)) shall not exceed an amount which is equal 
to the sum o
f
— 
"(A) the greater of— 
"(i) the funding standard requirement for such plan year, 
or 
Cash-flow 
amount. 
Current 
contribution 
base. 
Valuation 
countribution 
base. 
94 STAT. 1254 
PUBLIC LAW 96-364—SEPT. 26, 1980 
"(ii) 107 percent of— 
"(I) if the plan was not in reorganization in the 
preceding plan year, the funding standard requirement 
for such preceding plan year, or 
"(II) if the plan was in reorganization in the preceding 
plan year, the sum of the amount determined under this 
subparagraph for the preceding plan year and the 
amount (if any) determined under subparagraph (B) for 
the preceding plan year, plus 
"(B) if for the plan year a change in benefits is first required to 
be considered in computing the charges under section 412(b)(2) 
26 use 412. 
(A) or (B) of the Internal Revenue Code of 1954, the sum of— 
"(i) the increase in normal cost for a plan year determined 
under the entry age normal funding method due to increases 
in benefits described in section 4241(b)(4)(A)(ii) (determined 
without regard to section 4241(b)(4)(B)(i)), and 
"(ii) the amount necessary to amortize in equal annual 
installments the increase in the value of vested benefits 
under the plan due to increases in benefits described in 
clause (i) over— 
"(I) 10 years, to the extent such increase in value is 
attributable to persons in pay status, or 
"(II) 25 years, to the extent such increase in value is 
attributable to other participants. 
Funding 
**(2) For purposes of paragraph (1), the funding standard require-
standard 
ment for any plan year is an amount equal to the net charge to the 
requiremen 
funding Standard account for such plan year (as defined in section 
424ia))(2)). 
Ante, p. 1234. 
"(3)(A) In the case of a plan described in section 4216(b), if a plan 
amendment which increases benefits is adopted after January 1, 
1980— 
"(i) paragraph (1) shall apply only if the plan is a plan 
described in subparagraph (B), and 
"(ii) the amount under paragraph (1) shall be determined 
without regard to paragraph (1)(B). 
"(B) A plan is described in this subparagraph if— 
"(i) the rate of employer contributions under the plan for the 
first plan year beginning on or after the date on which an 
amendment increasing benefits is adopted, multiplied by the 
valuation contribution base for that plan year, equals or exceeds 
the sum o
f
— 
"(I) the amount that would be necessary to amortize fully, 
in equal annual installments, by July 1, 1986, the unfunded 
vested benefits attributable to plan provisions in effect on 
July 1, 1977 (determined as of the last day of the base plan 
year); and 
"(II) the amount that would be necessary to amortize fully, 
in equal annual installments, over the period described in 
subparagraph (C), beginning with the first day of the first 
plan year beginning on or after the date on which the 
amendment is adopted, the unfunded vested benefits (deter-
mined as of the last day of the base plan year) attributable to 
each plan amendment after July 1,1977; and 
"(ii) the rate of employer contributions for each subsequent 
plan year is not less than the lesser o
f
— 
"(I) the rate which when multiplied by the valuation 
contribution base for that subsequent plan year produces the 
PUBLIC LAW 96-364—SEPT. 26, 1980 
94 STAT. 1255 
annual amount that would be necessary to complete the 
amortization schedule described in clause (i), or 
"(II) the rate for the plan year immediately preceding such 
subsequent plan year, plus 5 percent of such rate. 
"(C) The period determined under this subparagraph is the lesser 
o
f
— 
"(i) 12 years, or 
"(ii) a period equal in length to the average of the remaining 
expected lives of all persons receiving benefits under the plan. 
"(4) Paragraph (1) shall not apply with respect to a plan, other than 
a plan described in paragraph (3), for the period of consecutive plan 
years in each of which the plan is in reorganization, beginning with a 
plan year in which occurs the earlier of the date of the adoption or the 
effective date of any amendment of the plan which increases benefits 
with respect to service performed before the plan year in which the 
adoption of the amendment occurred. 
"(e) In determining the minimum contribution requirement with 
respect to a plan for a plan year under subsection (b), the vested 
benefits charge may be adjusted to reflect a plan amendment reduc-
ing benefits under section 412(cX8) of the Internal Revenue Code of 
1954. 
26 use 412. 
"(fXl) The Secretary of the Treasury may waive any accumulated 
funding deficiency under this section in accordance with the provi-
sions of section 303(a). 
2
9 use 1083. 
"(2) Any waiver under paragraph (1) shall not be treated as a 
waived funding deficiency (within the meaning of section 303(c)). 
"(g) For purposes of making any determination under this part, the 
requirements of section 302(c)(3) shall apply. 
2
9 use 1082. 
"OVERBURDEN CREDIT AGAINST MINIMUM CONTRIBUTION REQUIREMENT 
"SEC. 4244. (a) For purposes of determining the minimum contribu- 2
9 use 1424. 
tion requirement under section 4243 Ot)efore the application of section 
4243 Ot))(2) or (d)) the plan sponsor of a plan which is overburdened for 
the plan year shall apply an overburden credit against the plan's 
minimum contribution requirement for the plan year (determined 
without regard to section 4243 O
t
)
X
2
) or (d) and without regard to this 
section). 
"(b) A plan is overburdened for a plan year i
f
— 
"(1) the average number of pay status participants under the 
plan in the base plan year exceeds the average of the number of 
active participants in the base plan year and the 2 plan years 
preceding the base plan year, and 
"(2) the rate of employer contributions under the plan equals 
or exceeds the greater o
f
— 
"(A) such rate for the preceding plan year, or 
, , 
"(B) such rate for the plan year preceding the first year in 
which the plan is in reorganization. 
"(c) The amount of the overburden credit for a plan year is the Amount, 
product of— 
determination 
"(1) one-half of the average guaranteed benefit paid for the 
base plan year, and 
"(2) the overburden factor for the plan year. 
The amount of the overburden credit for a plan year shall not exceed 
the amount of the minimum contribution requirement for such year 
(determined without regard to this section). 
factors. 
94 STAT. 1256 
PUBLIC LAW 96-364—SEPT. 26, 1980 
"Pay status 
participant." 
Active 
participants, 
numerical 
determination. 
Alternate 
methods. 
"Average 
number." 
Average 
guaranteed 
benefit. 
Ante, p. 1210. 
"(d) For purposes of this section, the overburden factor of a plan for 
the plan year is an amount equal to— 
"(1) the average number of pay status participants for the base 
plan year, reduced by 
"(2) the average of the number of active participants for the 
base plan year and for each of the 2 plan years preceding the base 
plan year. 
"(e) For purposes of this section— 
"(1) The term 'pay status participant' means, with respect to a 
plan, a participant receiving retirement benefits under the plan. 
"(2) The number of active participants for a plan year shall be 
the sum of— 
"(A) the number of active employees who are participants 
in the plan and on whose behalf contributions are required 
to be made during the plan year; 
"(B) the number of active employees who are not partici-
pants in the plan but who are in an employment unit 
covered by a collective bargaining agreement which requires 
the employees' employer to contribute to the plan, unless 
service in such employment unit was never covered under 
the plan or a predecessor thereof, and 
"(C) the total number of active employees attributed to 
employers who made payments to the plan for the plan year 
of withdrawal liability pursuant to part 1, determined by 
dividing— 
(i) the total amount of such payments, by 
"(ii) the amount equal to the total contributions re-
ceived by the plan during the plan year divided by the 
average number of active employees who were partici-
pants in the plan during the plan year. 
The Secretary of the Treasury shall by regulation provide alter-
native methods of determining active participants where (by 
reason of irregular employment, contributions on a unit basis, or 
otherwise) this paragraph does not yield a representative basis 
for determining the credit. 
"(3) The term 'average number' means, with respect to pay 
status participants for a plan year, a number equal to one-half 
the sum of— 
"(A) the number with respect to the plan as of the 
beginning of the plan year, and 
(B) the number with respect to the plan as of the end of 
the plan year. 
"(4) The average guaranteed benefit paid is 12 times the 
average monthly pension payment guaranteed under section 
4022A(c)(l) determined under the provisions of the plan in effect 
at the beginning of the first plan year in which the plan is in 
reorganization and without regard to section 4022A(c)(2). 
"(5) The first year in which the plan is in reorganization is the 
first of a period of 1 or more consecutive plan years in which the 
plan has been in reorganization not taking into account any plan 
years the plan was in reorganization prior to any period of 3 or 
more consecutive plan years in which the plan was not in 
reorganization. 
"(f)(1) Notwithstanding any other provision of this section, a plan is 
not eligible for an overburden credit for a plan year if the Secretary of 
the Treasury finds that the plan's current contribution base for the 
plan year was reduced, without a corresponding reduction in the 
plan's unfunded vested benefits attributable to pay status partici-
PUBLIC LAW 96-364—SEPT. 26, 1980 
94 STAT. 1257 
pants, as a result of a change in an agreement providing for employer 
contributions under the plan. 
"(2) For purposes of paragraph (1), a complete or partial withdrawal 
of an employer (within the meaning of part 1) does not impair a plan's 
eligibility for an overburden credit, unless the Secretary of the 
Treasury finds that a contribution base reduction described in para-
graph (1) resulted from a transfer of liabilities to another plan in 
connection with the withdrawal. 
"(g) Notwithstanding any other provision of this section, if 2 or 
more multiemployer plans merge, the amount of the overburden 
credit which may be applied under this section with respect to the 
plan resulting from the merger for any of the 3 plan years ending 
after the effective date of the merger shall not exceed the sum of the 
used overburden credit for each of the merging plans for its last plan 
year ending before the effective date of the merger. For purposes of 
the preceding sentence, the used overburden credit is that portion of 
the credit which does not exceed the excess of the minimum contribu-
tion requirement (determined without regard to any overburden 
requirement under this section) over the employer contributions 
required under the plan. 
Used overburden 
credit. 
ADJUSTMENTS IN ACCRUED BENEFITS 
29 u s e 1425. 
29 u s e 1053, 
1054. 
"SEC. 4244A. (a)(1) Notwithstanding sections 203 and 204, a multi-
employer plan in reorganization may be amended in accordance 
with this section, to reduce or eliminate accrued benefits attributable 
to employer contributions which, under section 4O22A03), are not 
eligible for the corporation's guarantee. The preceding sentence shall 
only apply to accrued benefits under plan amendments (or plans) 
adopted after March 26, 1980, or under collective bargaining agree-
ments entered into after March 26,1980. 
"(2) In determining the minimum contribution requirement with 
respect to a plan for a plan year under section 424303), the vested 
benefits charge may be adjusted to reflect a plan amendment reduc-
ing benefits under this section or section 412(cX8) of the Internal 
Revenue Code of 1954, but only if the amendment is adopted and 
effective no later than IVz months after the end of the plan year, or 
within such extended period as the Secretary of the Treasury may 
prescribe by regulation under section 412(c)(10) of such Code. 
"(b)(1) Accrued benefits may not be reduced under this section 
unless— 
"(A) notice has been given, at least 6 months before the first 
day of the plan year in which the amendment reducing benefits 
is adopted, to— 
"(i) plan participants and beneficiaries, 
"(ii) each employer who has an obligation to contribute 
(within the meaning of section 4212(a)) under the plan, and Ante, p. 1233 
"(iii) each employee organization which, for purposes of 
collective bargaining, represents plan participants employed 
by such an employer, 
that the plan is in reorganization and that, if contributions under 
the plan are not increased, accrued benefits under the plan will 
be reduced or an excise tax will be imposed on employers; 
"(B) in accordance with regulations prescribed by the Secre-
tary of the Treasury— 
"(i) any category of accrued benefits is not reduced with 
respect to inactive participants to a greater extent propor-
26 u s e 412. 
Reduction 
conditions. 
94 STAT. 1258 
PUBLIC LAW 96-364—SEPT. 26, 1980 
tionally than such category of accrued benefits is reduced 
with respect to active participants, 
"(ii) benefits attributable to employer contributions other 
than accrued benefits and the rate of future benefit accruals 
are reduced at least to an extent equal to the reduction in 
accrued benefits of inactive participants, and 
"(iii) in any case in which the accrued benefit of a partici-
pant or beneficiary is reduced by changing the benefit form 
or the requirements which the participant or beneficiary 
must satisfy to be entitled to the benefit, such reduction is 
not applicable to— 
"(I) any participant or beneficiary in pay status on the 
effective date of the amendment, or the beneficiary of 
such a participant, or 
"(II) any participant who has attained normal retire-
ment age, or who is within 5 years of attaining normal 
retirement age, on the effective date of the amendment, 
or the beneficiary of any such participant; and 
"(C) the rate of employer contributions for the plan year in 
which the amendment becomes effective and for all succeeding 
plan years in which the plan is in reorganization equals or 
exceeds the greater of— 
"(i) the rate of employer contributions, calculated without 
regard to the amendment, for the plan year in which the 
amendment becomes effective, or 
"(ii) the rate of employer contributions for the plan year 
preceding the plan year in which the amendment becomes 
effective. 
"(2) The plan sponsors shall include in any notice required to be 
sent to plan participants and beneficiaries under paragraph (1) 
information as to the rights and remedies of plan participants and 
beneficiaries as well as how to contact the Department of Labor for 
further information and assistance where appropriate. 
"(c) A plan may not recoup a benefit payment which is in excess of 
the amount payable under the plan because of an amendment 
retroactively reducing accrued benefits under this section. 
Amended plans. 
"(d)(1)(A) A plan which has been amended to reduce accrued 
benefits under this section may be amended to increase or restore 
accrued benefits, or the rate of future benefit accruals, only if the 
plan is amended to restore levels of previously reduced accrued 
benefits of inactive participants and of participants who are within 5 
years of attaining normal retirement age to at least the same extent 
as any such increase in accrued benefits or in the rate of future 
benefit accruals. 
"(B) For purposes of this subsection, in the case of a plan which has 
been amended under this section to reduce accrued benefits— 
"(i) an increase in a benefit, or in the rate of future benefit 
accruals, shall be considered a benefit increase to the extent that 
the benefit, or the accrual rate, is thereby increased above the 
highest benefit level, or accrual rate, which was in effect under 
the terms of the plan before the effective date of the amendment 
reducing accrued benefits, and 
"(ii) an increase in a benefit, or in the rate of future benefit 
accruals, shall be considered a benefit restoration to the extent 
that the benefit, or the accrual rate, is not thereby increased 
above the highest benefit level, or accrual rate, which was in 
effect under the terms of the plan immediately before the 
effective date of the amendment reducing accrued benefits. 
PUBLIC LAW 96-364—SEPT. 26, 1980 
94 STAT. 1259 
"(2) If a plan is amended to partially restore previously reduced 
accrued benefit levels, or the rate of future benefit accruals, the 
benefits of inactive participants shall be restored in at least the same 
proportions as other accrued benefits which are restored. 
"(3) No benefit increase under a plan may take effect in a plan year 
in which an amendment reducing accrued benefits under the plan, in 
accordance with this section, is adopted or first becomes effective. 
"(4) A plan is not required to make retroactive benefit payments 
with respect to that portion of an accrued benefit which was reduced 
and subsequently restored under this section. 
"(e) For purposes of this section, 'inactive participant' means a 
person not in covered service under the plan who is in pay status 
under the plan or who has a nonforfeitable benefit under the plan. 
if) The Secretary of the Treasury may prescribe rules under 
which, notwithstanding any other provision of this section, accrued 
benefit reductions or benefit increases for different participant 
groups may be varied equitably to reflect variations in contribution 
rates and other relevant factors reflecting differences in negotiated 
levels of financial support for plan benefit obligations. 
"Inactive 
participant." 
INSOLVENT PLANS 
"SEC. 4245. (a) Notwithstanding sections 203 and 204, in any case in 
which benefit payments under an insolvent multiemployer plan 
exceed the resource benefit level, any such payments of benefits 
which are not basic benefits shall be suspended, in accordance with 
this section, to the extent necessary to reduce the sum of such 
payments and the payments of such basic benefits to the greater of 
the resource benefit level or the level of basic benefits, unless an 
alternative procedure is prescribed by the corporation under section 
4022A(g)(5). 
"(b) For purposes of this section, for a plan year— 
"(1) a multiemployer plan is insolvent if the plan's available 
resources are not sufficient to pay benefits under the plan when 
due for the plan year, or if the plan is determined to be insolvent 
under subsection (d); 
"(2) 'resource benefit level' means the level of monthly benefits 
determined under subsections (c) (1) and (3) and (d)(3) to be the 
highest level which can be paid out of the plan's available 
resources; 
"(3) 'available resources' means the plan's cash, marketable 
assets, contributions, withdrawal liability payments, and earn-
ings, less reasonable administrative expenses and amounts owed 
for such plan year to the corporation under section 4261(b)(2); 
and 
"(4) 'insolvency year' means a plan year in which a plan is 
insolvent. 
"(c)(1) The plan sponsor of a plan in reorganization shall determine 
in writing the plan's resource benefit level for each insolvency year, 
based on the plan sponsor's reasonable projection of the plan's 
available resources and the benefits payable under the plan. 
"(2) The suspension of benefit payments under this section shall, in 
accordance with regulations prescribed by the Secretary of the 
Treasury, apply in substantially uniform proportions to the benefits 
of all persons in pay status (within the meaning of section 4241(b)(6)) 
under the plan, except that the Secretary of the Treasury may 
prescribe rules under which benefit suspensions for different partici-
pant groups may be varied equitably to reflect variations in contribu-
Non-basic 
benefits, 
payment 
suspension. 
29 u s e 1426. 
29 u s e 1053, 
1054. 
Ante, p. 1210. 
Definitions. 
Resource benefit 
level. 
Benefit 
payments, 
suspension. 
94 STAT. 1260 
PUBLIC LAW 96-364—SEPT. 26, 1980 
Benefit 
payments, 
suspension. 
Excess 
resources, 
distribution. 
"Excess 
resources.' 
Benefit levels. 
Reorganization 
plan sponsor, 
duties. 
tion rates and other relevant factors including differences in negoti-
ated levels of financial support for plan benefit obligations. 
"(3) Notwithstanding paragraph (2), if a plan sponsor determines in 
writing a resource benefit level for a plan year which is below the 
level of basic benefits, the payment of all benefits other than basic 
benefits must be suspended for that plan year. 
"(4)(A) If, by the end of an insolvency year, the plan sponsor 
determines in writing that the plan's available resources in that 
insolvency year could have supported benefit payments above the 
resource benefit level for that insolvency year, the plan sponsor shall 
distribute the excess resources to the participants and beneficiaries 
who received benefit payments from the plan in that insolvency year, 
in accordance with regulations prescribed by the Secretary of the 
Treasury. 
"(B) For purposes of this paragraph, the term 'excess resources* 
means available resources above the amount necessary to support the 
resource benefit level, but no greater than the amount necessary to 
pav benefits for the plan year at the benefit levels under the plan. 
'(5) If, by the end of an insolvency year, any benefit has not been 
paid at the resource benefit level, amounts up to the resource benefit 
level which were unpaid shall be distributed to the participants and 
beneficiaries, in accordance with regulations prescribed by the Secre-
tary of the Treasury, to the extent possible taking into account the 
plan's total available resources in that insolvency year. 
"(6) Except as provided in paragraph (4) or (5), a plan is not required 
to make retroactive benefit payments with respect to that portion of a 
benefit which was suspended under this section. 
"(d)(1) As of the end of the first plan year in which a plan is in 
reorganization, and at least every 3 plan years thereafter (unless the 
plan is no longer in reorganization), the plan sponsor shall compare 
the value of plan assets (determined in accordance with section 
4243(b)(3)(B)(ii)) for that plan year with the total amount of benefit 
payments made under the plan for that plan year. Unless the plan 
sponsor determines that the value of plan assets exceeds 3 times the 
total amount of benefit payments, the plan sponsor shall determine 
whether the plan will be insolvent in any of the next 3 plan years. 
"(2) If, at any time, the plan sponsor of a plan in reorganization 
reasonably determines, taking into account the plan's recent and 
anticipated financial experience, that the plan's available resources 
are not sufficient to pay benefits under the plan when due for the 
next plan year, the plan sponsor shall make such determination 
available to interested parties. 
"(3) The plan sponsor of a plan in reorganization shall determine in 
writing for each insolvency year the resource benefit level and the 
level of basic benefits no later than 3 months before the insolvency 
year. 
"(e)(1) If the plan sponsor of a plan in reorganization determines 
under subsection (d) (1) or (2) that the plan may become insolvent 
(within the meaning of subsection (b)(1)), the plan sponsor shall— 
"(A) notify the Secretary of the Treasury, the corporation, the 
parties described in section 4242(a)(2), and the plan participants 
and beneficiaries of that determination, and 
"(B) inform the parties described in section 4242(a)(2) and the 
plan participants and beneficiaries that if insolvency occurs 
certain benefit payments will be suspended, but that basic 
benefits will continue to be paid. 
"(2) No later than 2 months before the first day of each insolvency 
year, the plan sponsor of a plan in reorganization shall notify the 
PUBLIC LAW 96-364—SEPT. 26, 1980 
94 STAT. 1261 
Secretary of the Treasury, the corporation, and the parties described 
in paragraph (1)(B) of the resource benefit level determined in writing 
for that insolvency year. 
"(3) In any case in which the plan sponsor anticipates that the 
resource benefit level for an insolvency year may not exceed the level 
of basic benefits, the plan sponsor shall notify the corporation. 
"(4) Notice required by this subsection shall be given in accordance 
with regulations prescribed by the corporation, except that notice to 
the Secretary of the Treasury shall be given in accordance with 
regulations prescribed by the Secretary of the Treasury. 
"(5) The corporation may prescribe a time other than the time 
prescribed by this section for the making of a determination or the 
filing of a notice under this section. 
"(f)(1) If the plan sponsor of an insolvent plan, for which the 
resource benefit level is above the level of basic benefits, anticipates 
that, for any month in an insolvency year, the plan will not have 
funds sufficient to pay basic benefits, the plan sponsor may apply for 
financial assistance from the corporation under section 4261. 
"(2) A plan sponsor who has determined a resource benefit level for 
an insolvency year which is below the level of basic benefits shall 
apply for financial assistance from the corporation under section 
4261. 
"PART 4—FINANCIAL ASSISTANCE 
Financial 
assistance. 
Infra. 
FINANCIAL ASSISTANCE 
"SEC. 4261. (a) If, upon receipt of an application for financial 
assistance under section 4245(f) or section 4281(d), the corporation 
verifies that the plan is or will be insolvent and unable to pay basic 
benefits when due, the corporation shall provide the plan financial 
assistance in an amount sufficient to enable the plan to pay basic 
benefits under the plan. 
"(b)(1) Financial assistance shall be provided under such conditions 
as the corporation determines are equitable and are appropriate to 
prevent unreasonable loss to the corporation with respect to the plan. 
"(2) A plan which has received financial assistance shall repay the 
amount of such assistance to the corporation on reasonable terms 
consistent with regulations prescribed by the corporation. 
"(c) Pending determination of the amount described in subsection 
(a), the corporation may provide financial assistance in such amounts 
as it considers appropriate in order to avoid undue hardship to plan 
participants and beneficiaries. 
"PART 5—BENEFITS AFTER TERMINATION 
29 u s e 1431. 
Infra. 
BENEFITS UNDER CERTAIN TERMINATED PLANS 
"SEC. 4281. (a) Notwithstanding sections 203 and 204, the plan 
sponsor of a terminated multiemployer plan to which section 
4041A(d) applies shall amend the plan to reduce benefits, and shall 
suspend benefit payments, as required by this section. 
"(b)(1) The value of nonforfeitable benefits under a terminated plan 
referred to in subsection (a), and the value of the plan's assets, shall 
be determined in writing, in accordance with regulations pre-
scribed by the corporation, as of the end of the plan year during which 
section 4041A(d) becomes applicable to the plan, and each plan year 
thereafter. 
Payment 
reduction and 
suspension. 
29 u s e 1441. 
29 u s e 1053, 
1054. 
Ante, p. 1216. 
94 STAT. 1262 
PUBLIC LAW 96-364—SEPT. 26, 1980 
Plan assets. 
"(2) For purposes of this section, plan assets include outstanding 
claims for withdrawal liability (within the meaning of section 
Post, p. 1296. 
4001(a)(12)). 
"(c)(1) If, according to the determination made under subsection (b), 
the value of nonforfeitable benefits exceeds the value of the plan's 
assets, the plan sponsor shall amend the plan to reduce benefits 
under the plan to the extent necessary to ensure that the plan's 
assets are sufficient, as determined and certified in accordance with 
regulations prescribed by the corporation, to discharge when due all 
of the plan s obligations with respect to nonforfeitable benefits. 
"(2) Any plan amendment required by this subsection shall, in 
accordance with regulations prescribed by the Secretary of the 
Treasury— 
"(A) reduce benefits only to the extent necessary to comply 
with paragraph (1); 
"(B) reduce accrued benefits only to the extent that those 
benefits are not eligible for the corporation's guarantee under 
Ante, p. 1210. 
section 4022A(b); 
"(C) comply with the rules for and limitations on benefit 
reductions under a plan in reorganization, as prescribed in 
section 4244A, except to the extent that the corporation pre-
scribes other rules and limitations in regulations under this 
section; and 
"(D) take effect no later than 6 months after the end of the plan 
year for which it is determined that the value of nonforfeitable 
benefits exceeds the value of the plan's assets. 
"(dXl) In any case in which benefit payments under a plan which is 
insolvent under paragraph (2XA) exceed the resource benefit level, 
any such payments which are not basic benefits shall be suspended, 
in accordance with this subsection, to the extent necessary to reduce 
the sum of such payments and such basic benefits to the greater of the 
resource benefit level or the level of basic benefits, unless an 
alternative procedure is prescribed by the corporation in connection 
with a supplemental guarantee program established under section 
Ante, p. 1210. 
4022A(g)(2). 
Insolvent plan. 
"(2) For purposes of this subsection, for a plan year— 
"(A) a plan is insolvent if— 
"(i) the plan has been amended to reduce benefits to the 
extent permitted by subsection (c), and 
"(ii) the plan's available resources are not sufficient to pay 
benefits under the plan when due for the plan vear; and 
"(B) 'resource benefit level' and 'available resources have the 
meanings set forth in paragraphs (2) and (3), respectively, of 
section 4245(b). 
"(3) The plan sponsor of a plan which is insolvent (within the 
meaning of paragraph (2XA)) shall have the powers and duties of the 
plan sponsor of a plan in reorganization which is insolvent (within 
the meaning of section 4245(b)(1)), except that regulations governing 
the plan sponsor's exercise of those powers and duties under this 
section shall be prescribed by the corporation, and the corporation 
shall prescribe by regulation notice requirements which assure that 
plan participants and beneficiaries receive adequate notice of benefit 
suspensions. 
"(4) A plan is not required to make retroactive benefit payments 
with respect to that portion of a benefit which was suspended under 
this subsection, except that the provisions of section 4245(c) (4) and (5) 
shall apply in the case of plans which are insolvent under paragraph 
(2)(A), in connection with the plan year during which such section 
PUBLIC LAW 96-364—SEPT. 26, 1980 
94 STAT. 1263 
4041A(d) first became applicable to the plan and every year there-
after, in the same manner and to the same extent as such provisions 
apply to insolvent plans in reorganization under section 4245, in 
connection with insolvency years under such section 4245. 
"PART 6—ENFORCEMENT 
Ante. p. 1216. 
Withdrawal 
liability 
payment. 
Post, p. 1295. 
Concurrent 
jurisdiction. 
CIVIL ACTIONS 
"SEC. 4301. (a)(1) A plan fiduciary, employer, plan participant, or 29 use 1451. 
beneficiary, who is adversely affected by the act or omission of any 
party under this subtitle with respect to a multiemployer plan, or an 
employee organization which represents such a plan participant or 
beneficiary for purposes of collective bargaining, may bring an action 
for appropriate legal or equitable relief, or both. 
"(2) Notwithstanding paragraph (1), this section does not authorize 
an action against the Secretary of the Treasury, the Secretary of 
Labor, or the corporation. 
"Ot)) In any action under this section to compel an employer to pay 
withdrawal liability, any failure of the employer to make any 
withdrawal liability payment within the time prescribed shall be 
treated in the same manner as a delinquent contribution (within the 
meaning of section 515). 
"(c) The district courts of the United States shall have exclusive 
jurisdiction of an action under this section without regard to the 
amount in controversy, except that State courts of competent juris-
diction shall have concurrent jurisdiction over an action brought by a 
plan fiduciary to collect withdrawal liability. 
"(d) An action under this section may be brought in the district 
where the plan is administered or where a defendant resides or does 
business, and process may be served in any district where a defendant 
resides, does business, or may be found. 
"(e) In any action under this section, the court may award all or a 
portion of the costs and expenses incurred in connection with such 
action, including reasonable attorney's fees, to the prevailing party. 
"(f) An action under this section may not be brought after the later 
of— 
"(1) 6 years after the date on which the cause of action arose, or 
"(2) 3 years after the earliest date on which the plaintiff 
acquired or should have acquired actual knowledge of the exist-
ence of such cause of action; except that in the case of fraud or 
concealment, such action may be brought not later than 6 years 
after the date of discovery of the existence of such cause of action. 
"(g) A copy of the complaint in any action under this section or 
section 4221 shall be served upon the corporation by certified mail. Ante, p. 1239. 
The corporation may intervene in any such action. 
Costs and 
expenses. 
PENALTY FOR FAILURE TO PROVIDE NOTICE 
"SEC. 4302. Any person who fails, without reasonable cause, to 29 use 1452. 
provide a notice required under this subtitle or any implementing 
regulations shall be liable to the corporation in an amount up to $100 
for each day for which such failure continues. The corporation may Civil action. 
bring a civil action against any such person in the United States 
District Court for the District of Columbia or in any district court of 
the United States within the jurisdiction of which the plan assets are 
located, the plan is administered, or a defendant resides or does 
79-194 
O—81—pt. 1 
83 ; QL3 
94 STAT. 1264 
PUBLIC LAW 96-364—SEPT. 26, 1980 
Rates and bases, 
schedules. 
29 u s e 1306. 
29 u s e 1322. 
Ante, p. 1210. 
Ante, p. 1208. 
Separate 
schedules. 
Ante, p. 1240. 
Revised 
schedules. 
Annual rates 
payable to 
Pension Benefit 
Guaranty 
eorporation. 
business, and process may be served in any district where a defendant 
resides, does business, or may be found.". 
SEC. 105. PREMIUMS. 
(a) Section 4006(a) is amended to read as follows: 
"(a)(1) The corporation shall prescribe such schedules of premium 
rates and bases for the application of those rates as may be necessary 
to provide sufficient revenue to the fund for the corporation to carry 
out its functions under this title. The premium rates charged by the 
corporation for any period shall be uniform for all plans, other than 
multiemployer plans, insured by the corporation with respect to basic 
benefits guaranteed by it under section 4022, and shall be uniform for 
all multiemployer plans with respect to basic benefits guaranteed by 
it under section 4022A. In establishing annual premiums with respect 
to plans, other than multiemployer plans, paragraphs (5) and (6) of 
this subsection (as in effect before the enactment of the Multiem-
ployer Pension Plan Amendments Act of 1980) shall continue to 
apply. 
"(2) The corporation shall maintain separate schedules of premium 
rates, and bases for the application of those rates, for— 
"(A) basic benefits guaranteed by it under section 4022 for 
single-employer plans, 
"(B) basic benefits guaranteed by it under section 4022A for 
multiemployer plans, 
"(C) nonbasic benefits guaranteed by it under section 4022 for 
single-employer plans, 
"(D) nonbasic benefits guaranteed by it under section 4022A 
for multiemployer plans, and 
"(E) reimbursements of uncollectible withdrawal liability 
under section 4222. 
The corporation may revise such schedules whenever it determines 
that revised schedules are necessary. Except as provided in section 
4022A(f), in order to place a revised schedule described in subpara-
graph (A) or (B) in effect, the corporation shall proceed in accordance 
with subsection Ob)(l), and such schedule shall apply only to plan 
years beginning more than 30 days after the date on which the 
Congress approves such revised schedule by a concurrent resolution. 
"(3)(A) Except as provided in subparagraph (C), the annual pre-
mium rate payable to the corporation by all plans for basic benefits 
guaranteed under this title is— 
"(i) in the case of a single-employer plan, for plan years 
beginning after December 31,1977, an amount equal to $2.60 for 
each individual who is a participant in such plan during the plan 
year; 
"(ii) in the case of a multiemployer plan, for the plan year 
within which the date of enactment of the Multiemployer Pen-
sion Plan Amendments Act of 1980 falls, an amount for each 
individual who is a participant in such plan for such plan year 
equal to the sum of— 
"(I) 50 cents, multiplied by a fraction the numerator of 
which is the number of months in such year ending on or 
before such date and the denominator of which is 12, and 
"(II) $1.00, multiplied by a fraction equal to 1 minus the 
fraction determined under clause (i), 
"(iii) in the case of a multiemployer plan, for plan years 
beginning after the date of enactment of the Multiemployer 
Pension Plan Amendments Act of 1980, an amount equal to— 
PUBLIC LAW 96-364—SEPT. 26, 1980 
94 STAT. 1265 
"(I) $1.40 for each participant, for the first, second, third, 
and fourth plan years, 
"(II) $1,80 for each participant, for the fifth and sixth plan 
years, 
"(III) $2.20 for each participant, for the seventh and eighth 
plan years, and 
"(IV) $2.60 for each participant, for the ninth plan year, 
and for each succeeding plan year. 
"(B) The corporation may prescribe by regulation the extent to 
which the rate described in subparagraph (A)(i) applies more than 
once for any plan year to an individual participating in more than 
one plan maintained by the same employer, and the corporation may 
prescribe regulations under which the rate described in subpara-
graph (A)(iii) will not apply to the same participant in any multi-
employer plan more than once for any plan year. 
"(C)(i)Ifthesumof— 
"(I) the amounts in any fund for basic benefits guaranteed for 
multiemployer plans, and 
"(II) the value of any assets held by the corporation for 
payment of basic benefits guaranteed for multiemployer plans, 
is for any calendar year less than 2 times the amount of basic benefits 
guaranteed by the corporation under this title for multiemployer 
plans which were paid out of any such fund or assets during the 
preceding calendar year, the annual premium rates under subpara-
graph (A) shall be increased to the next highest premium level 
necessary to insure that such sum will be at least 2 times greater than 
such amount during the following calendar year. 
"(ii) If the board of directors of the corporation determines that an 
increase in the premium rates under subparagraph (A) is necessary to 
provide assistance to plans which are receiving assistance under 
section 4261 and to plans the board finds are reasonably likely to 
require such assistance, the board may order such increase in the 
premium rates. 
"(iii) The maximum annual premium rate which may be estab-
lished under this subparagraph is $2.60 for each participant. 
"(iv) The provisions of this subparagraph shall not apply if the 
annual premium rate is increased to a level in excess of $2.60 per 
participant under any other provisions of this title. 
"(D)(i) Not later than 120 days before the date on which an increase 
under subparagraph (C)(ii) is to become effective, the corporation 
shall publish in the Federal Register a notice of the determination 
described in subparagraph (C)(ii), the basis for the determination, the 
amount of the increase in the premium, and the anticipated increase 
in premium income that would result from the increase in the 
premium rate. The notice shall invite public comment, and shall 
provide for a public hearing if one is requested. Any such hearing 
shall be commenced not later than 60 days before the date on which 
the increase is to become effective. 
"(ii) The board of directors shall review the hearing record estab-
lished under clause (i) and shall, not later than 30 days before the 
date on which the increase is to become effective, determine (after 
consideration of the comments received) whether the amount of the 
increase should be changed and shall publish its determination in the 
Federal Register. 
"(4) The corporation may prescribe, subject to approval by the 
Congress in accordance with this section or section 4022A(f), alterna-
tive schedules of premium rates, and bases for the application of 
those rates, for basic benefits guaranteed by it under sections 4022 
Publication in 
Federal 
Register. 
Hearing. 
Publication in 
Federal 
Register. 
Ante, p. 1210. 
29 u s e 1322. 
94 STAT. 1266 
PUBLIC LAW 96-364—SEPT. 26, 1980 
Ante, p. 1210. 
and 4022A based, in whole or in part, on the risks insured by the 
corporation in each plan. 
"(5)(A) In carrying out its authority under paragraph (1) to estab-
lish schedules of premium rates, and bases for the application of those 
29 use 1322. 
rates, for nonbasic benefits guaranteed under sections 4022 and 
4022A, the premium rates charged by the corporation for any period 
for nonbasic benefits guaranteed shall— 
"(i) be uniform by category of nonbasic benefits guaranteed, 
"(ii) be based on the risks insured in each category, and 
"(iii) reflect the experience of the corporation (including expe-
rience which may be reasonably anticipated) in guaranteeing 
such benefits. 
"(B) Notwithstanding subparagraph (A), premium rates charged to 
any multiemployer plan by the corporation for any period for 
supplemental guarantees under section 4022A(g)(2) may reflect any 
reasonable considerations which the corporation determines to be 
appropriate.". 
29 use 1306. 
(b) Section 4006(b) is amended— 
(1) by striking out "Committee on Labor and Public Welfare" 
each place it appears and inserting in lieu thereof "Committee on 
Labor and Human Resources"; 
(2) in paragraph (1)— 
(A) by striking out "coverage"; and 
(B) by striking out "(B) or (C)" and inserting in lieu thereof 
"(C), (D), or (E)"; and 
(3) in paragraph (3), by striking out "coverage". 
(c) Section 4006 is further amended by adding at the end thereof the 
following new subsection: 
"(c)(1) Except as provided in subsection (a)(3), and subject to 
paragraph (2), the rate for all plans for basic benefits guaranteed 
under this title with respect to plan years ending after September 2, 
1974, is— 
"(A) in the case of each plan which was not a multiemployer 
plan in a plan year, an amount equal to $1 for each individual 
who was a participant in such plan during the plan year, and 
"(B) in the case of each plan which was a multiemployer plan 
in a plan year, an amount equal to 50 cents for each individual 
who was a participant in such plan during the plan year. 
"(2) The rate applicable under this subsection for the plan year 
preceding September 1,1975, is the product o
f
— 
"(A) the rate described in the preceding sentence; and 
"(B) a fraction— 
"(i) the numerator of which is the number of calendar 
months in the plan year which ends after September 2,1974, 
and before the date on which the new plan year commences, 
and 
"(ii) the denominator of which is 12.". 
SEC. 106. ANNUAL REPORT OF PLAN ADMINISTRATOR. 
29 use 1365. 
Section 4065 is amended— 
(1) in paragraph (1), by striking out "and"; 
(2) in paragraph (2), by striking out the period and inserting in 
lieu thereof "except to the extent the corporation waives such 
requirement, and"; and 
(3) by adding after paragraph (2) the following new paragraph: 
"(3) in the case of a multiemployer plan, information with 
respect to such plan which the corporation determines is neces-
PUBLIC LAW 96-364—SEPT. 26, 1980 
94 STAT. 1267 
sary for the enforcement of subtitle E and requires by regulation, ^"^e, p. 1217. 
which may include— 
"(A) a statement certified by the plan's enrolled actuary 
of— 
"(i) the value of all vested benefits under the plan as of 
the end of the plan year, and 
"(ii) the value of the plan's assets as of the end of the 
plan year; 
"(B) a statement certified by the plan sponsor of each 
claim for outstanding withdrawal liability (within the mean-
ing of section 4001(aX12)) and its value as of the end of that Post, p. 1296. 
plan year and as of the end of the preceding plan year; and 
"(C) the number of employers having an obligation to 
contribute to the plan and the number of employers required 
to make withdrawal liability payments.". 
SEC. 107. CONTINGENT EMPLOYER LIABILITY INSURANCE. 
Section 4023 (as in effect immediately before the date of the 
enactment of this Act) is repealed. 
SEC. 108. TRANSITION RULES AND EFFECTIVE DATES. 
(a) Sections 4081 and 4082 are redesignated as sections 4401 and 
4402, respectively. 
(b) Section 4402 (as redesignated) is amended by striking out 
subsection (d) and inserting in lieu thereof the following new 
subsection: 
"(d) Notwithstanding any other provision of this title, guaranteed 
benefits payable by the corporation pursuant to its discretionary 
authority under this section shall continue to be paid at the level 
guaranteed under section 4022, without regard to any limitation on 
payment under subparagraph (C) or (D) of subsection (c)(4).". 
(c)(1) Section 4402 (as redesignated) is further amended by striking 
out subsection (e) and adding in lieu thereof the following new 
subsections: 
"(e)(1) Except as provided in paragraphs (2), (3), and (4), the 
amendments to this Act made by the Multiemployer Pension Plan 
Amendments Act of 1980 shall take effect on the date of the 
enactment of that Act, 
"(2)(A) Except as provided in this paragraph, part 1 of subtitle E, 
relating to withdrawal liability, takes effect on April 29, 1980. 
"(B) For purposes of determining withdrawal liability under part 1 
of subtitle E, an employer who has withdrawn from a plan shall be 
considered to have withdrawn from a multiemployer plan if, at the 
time of the withdrawal, the plan was a multiemployer plan as defined 
in section 4001(a)(3) as in effect at the time of the withdrawal. 
"(3) Sections 4241 through 4245, relating to multiemployer plan 
reorganization, shall take effect, with respect to each plan, on the 
first day of the first plan year beginning on or after the earlier of— 
"(A) the date on which the last collective bargaining agree-
ment providing for employer contributions under the plan, 
which was in effect on the date of the enactment of the Multiem-
ployer Pension Plan Amendments Act of 1980, expires, without 
regard to extensions agreed to on or after the date of the 
enactment of that Act, or 
"(B) 3 years after the date of the enactment of the Multiem-
ployer Pension Plan Amendments Act of 1980. 
"(4) Section 4235 shall take effect on April 29,1980. 
Repeal. 
29 use 1323. 
26 use 404, 
6511; 29 use 
1461. 
29 use 1461. 
29 use 1322. 
Ante, p. 1208. 
Ante, p. 1217. 
Post, p. 1296. 
Ante, p. 1249. 
Effective date. 
Ante, p. 1247. 
94 STAT. 1268 
PUBLIC LAW 96-364—SEPT. 26, 1980 
"(f)(1) In the event that before the date of enactment of the 
Ante, p. 1208. 
Multiemployer Pension Plan Amendments Act of 1980, the corpora-
tion has determined that— 
"(A) an employer has withdrawn from a multiemployer plan 
under section 4063, and 
"(B) the employer is liable to the corporation under such 
section, 
the corporation shall retain the amount of liability paid to it or 
furnished in the form of a bond and shall pay such liability to the plan 
in the event the plan terminates in accordance with section 
Ante, p. 1216. 
4041A(a)(2) before the earlier of April 29, 1985, or the day after the 
5-year period commencing on the date of such withdrawal. 
"(2) In any case in which the plan is not so terminated within the 
period described in paragraph (1), the liability of the employer is 
abated and any payment held in escrow shall be refunded without 
interest to the employer or the employer's bond shall be cancelled. 
"(g)(1) In any case in which an employer or employers withdrew 
from a multiemployer plan before the effective date of part 1 of 
Ante, p. 1217. 
subtitle E, the corporation may— 
"(A) apply section 4063(d), as in effect before the amendments 
made by the Multiemployer Pension Plan Amendments Act of 
1980, to such plan, 
"(B) assess liability against the withdrawn employer with 
respect to the resulting terminated plan, 
' (C) guarantee benefits under the terminated plan under 
29 use 1322. 
section 4022, as in effect before such amendments, and 
"(D) if necessary, enforce such action through suit brought 
29 use 1303. 
under section 4003. 
"(2) The corporation shall use the revolving fund used by the 
corporation with respect to basic benefits guaranteed under section 
Ante, p. 1210. 
4022A in guaranteeing benefits under a terminated plan described in 
this subsection.". 
29 use 1385 
(2)(A) For the purpose of applying section 4205 of the Employee 
'^ote. 
Retirement Income Security Act of 1974 in the case of an employer 
Ante, p. 1221. 
described in subparagraph (B)— 
(i) "more than 75 percent" shall be substituted for "70 percent" 
in subsections (a) and (b) of such section, 
(ii) "25 percent or less" shall be substituted for "30 percent" in 
sulDsection (b) of such section, and 
(iii) the number of contribution units for the high base year 
shall be the average annual number of such units for calendar 
years 1970 and 1971. 
(B) An employer is described in this subparagraph if— 
(i) the employer is engaged in the trade or business of shipping 
bulk cargoes in the Great Lakes Maritime Industry, and whose 
fleet consists of vessels the gross registered tonnage of which was 
at least 7,800, as stated in the American Bureau of Shipping 
Record, and 
(ii) whose fleet during any 5 years from the period 1970 
through and including 1979 has experienced a 33 percent or more 
increase in the contribution units as measured from the average 
annual contribution units for the calendar years 1970 and 1971. 
29 use 1426 
(3)(A) For the purpose of determining the withdrawal liability of an 
'^°^^- 
employer under title IV of the Employee Retirement Income Security 
29 use 1301. 
Act of 1974 from a plan that terminates while the plan is insolvent 
Ante, p. 1259. 
(within the meaning of section 4245 of such Act), the plan's unfunded 
vested benefits shall be reduced by an amount equal to the sum of all 
overburden credits that were applied in determining the plan's 
PUBLIC LAW 96-364—SEPT. 26, 1980 
94 STAT. 1269 
accumulated funding deficiency for all plan years preceding the first 
plan year in which the plan is insolvent, plus interest thereon. 
(B) The provisions of subparagraph (A) apply only i
f
— 
(i) the plan would have been eligible for the overburden credit 
in the last plan year beginning before the date of the enactment 
of this Act, if section 4243 of the Employee Retirement Income 
Security Act of 1974 had been in effect for that plan year, and 
(ii) the Pension Benefit Guaranty Corporation determines that 
the reduction of unfunded vested benefits under subparagraph 
(A) would not significantly increase the risk of loss to the 
corporation. 
(4) In the case of an employer who withdrew before the date of 29 USC 1881 
enactment of this Act from a multiemployer plan covering employees ""^® 
in the seagoing industry (as determined by the corporation), sections 
4201 through 4219 of the Employee Retirement Income Security Act Ante, p. 1217. 
of 1974, as added by this Act, are effective as of May 3, 1979. For the 
purpose of applying section 4217 for purposes of the preceding Ante, p. 1235. 
sentence, the date "May 2, 1979," shall be substituted for "April 28, 
1980," and the date "May 3, 1979" shall be substituted for "April 29, 
1980". For purposes of this paragraph, terms which are used in title 
IV of the Employee Retirement Income Security Act of 1974, or in 29 use 1301. 
regulations prescribed under that title, and which are used in the 
preceding sentence have the same meaning as when used in that Act 
or those regulations. For purposes of this paragraph, the term 
"employer" includes only a substantial employer covering employees 
in the seagoing industry (as so determined) in connection with ports 
on the West Coast of the United States, but does not include an 
employer who withdrew from a plan because of a change in the 
collective bargaining representative. 
(d) For purposes of section 4205 of the Employee Retirement 29 use 1385 
Income Security Act of 1974— 
"°te. 
(1) subsection (a)(1) of such section shall not apply to any plan 
^'^' ^ 
^• 
year beginning before April 29,1982, 
(2) subsection (a)(2) of such section shall not apply with respect 
to any cessation of contribution obligations occurring before 
April 29,1980, and 
(3) in applying subsection (b) of such section, the employer's 
contribution base units for any plan year ending before April 29, 
1980, shall be deemed to be equal to the employer's contribution 
base units for the last plan year ending before such date. 
(e)(1) In the case of a partial withdrawal under section 4205 of the 29 USC 1385 
Employee Retirement Income Security Act of 1974, an employer "°*^^ 
who— 
(A) before December 13,1979, had publicly announced the total 
cessation of covered operations at a facility in a State (and such 
cessation occurred within 12 months after the announcement), 
(B) had not been obligated to make contributions to the plan on 
behalf of the employees at such facility for more than 8 years 
before the discontinuance of contributions, and 
(C) after the discontinuance of contributions does not within 1 
year after the date of the partial withdrawal perform work in the 
same State of the type for which contributions were previously 
required, 
shall be liable under such section with respect to such partial 
withdrawal in an amount not greater than the amount determined 
under paragraph (2). 
(2) The amount determined under this paragraph is the excess (if 
any) of— 
94 STAT. 1270 
PUBLIC LAW 96-364—SEPT. 26, 1980 
(A) the present value (on the withdrawal date) of the benefits 
under the plan which— 
(i) were vested on the withdrawal date (or, if earlier, at the 
time of separation from service with the employer at the 
facility), 
(ii) were accrued by employees who on December 13, 1979 
(or, if earlier, at the time of separation from service with the 
employer at the facility), were employed at the facility, and 
(iii) are attributable to service with the withdrawing 
employer, over 
(B)(i) the sum of— 
(I) all employer contributions to the plan on behalf of 
employees at the facility before the withdrawal date, 
(II) interest (to the withdrawal date) on amounts described 
in subclause (I), and 
(III) $100,000, reduced by 
(ii) the sum of— 
(I) the benefits paid under the plan on or before the 
withdrawal date with respect to former employees who 
separated from employment at the facility, and 
(II) interest (to the withdrawal date) on amounts described 
in subclause (I). 
(3) For purposes of paragraph (2)— 
(A) actuarial assumptions shall be those used in the last 
actuarial report completed before December 13,1979, 
"Withdrawal 
(B) the term "withdrawal date" means the date on which the 
^
^
*
® 
employer ceased work at the facility of the type for which 
contributions were previously required, and 
"Facility." 
(C) the term "facility" means the facility referred to in para-
graph (1). 
Ante, p. 1263. 
(f) Title IV is amended by adding at the end thereof the following 
new section: 
"ELECTION OF PLAN STATUS 
29 use 1453. 
"SEC. 4303. (a) Within one year after the date of the enactment of 
Ante, p. 1208. 
the Multiemployer Pension Plan Amendments Act of 1980, a mul-
tiemployer plan may irrevocably elect, pursuant to procedures estab-
lished by the corporation, that the plan shall not be treated as a 
multiemployer plan for any purpose under this Act or the Internal 
26 use 1. 
Revenue Code of 1954, if for each of the last 3 plan years ending prior 
to the effective date of the Multiemployer Pension Plan Amendments 
Act of 1980— 
"(1) the plan was not a multiemployer plan because the plan 
Post, p. 1291. 
was not a plan described in section 3(37)(A)(iii) of this Act and 
Post, p. 1288. 
section 414(f)(1)(C) of the Internal Revenue Code of 1954 (as such 
provisions were in effect on the day before the date of the 
enactment of the Multiemployer Pension Plan Amendments Act 
of 1980); and 
"(2) the plan had been identified as a plan that was not a 
multiemployer plan in substantially all its filings with the 
corporation, the Secretary of Labor and the Secretary of the 
Treasury. 
Conditions. 
"(b) An election described in subsection (a) shall be effective only 
if— 
"(1) the plan is amended to provide that it shall not be treated 
as a multiemployer plan for all purposes under this Act and the 
Internal Revenue Code of 1954, and 
PUBLIC LAW 96-364—SEPT. 26, 1980 
94 STAT. 1271 
"(2) written notice of the amendment is provided to the 
corporation within 60 days after the amendment is adopted. 
"(c) An election described in subsection (a) shall be treated as being 
effective as of the date of the enactment of the Multiemployer 
Pension Plan Amendments Act of 1980." 
^"^^' P 1208. 
TITLE II—AMENDMENTS TO THE INTERNAL REVENUE 
CODE OF 1954 
SEC. 201. AMENDMENT OF THE INTERNAL REVENUE CODE OP 1954. 
Except as otherwise expressly provided, whenever in this title an 
amendment is expressed in terms of an amendment to a section or 
other provision, the reference is to a section or other provision of the 
Internal Revenue Code of 1954. 
26 use l. 
SEC. 202. MULTIEMPLOYER PLANS IN REORGANIZATION. 
(a) GENERAL RULE.—Part I of subchapter D of chapter 1 (relating to 
pension, profit sharing, stock bonus plans, etc.) is amended by 
inserting at the end thereof the following new subpart: 
"Subpart C—Special Rules for Multiemployer Plans 
"Sec. 418. Reorganization status. 
"Sec. 418A. Notice of reorganization and funding requirements. 
"Sec. 418B. Minimum contribution requirement. 
"Sec. 4180. Overburden credit eigainst minimum contribution requirement. 
"Sec. 418D. Adjustments in accrued benefits. 
"Sec. 418E. Insolvent plans. 
"SEC. 418. REORGANIZATION STATUS. 
26 USC 418. 
"(a) GENERAL RULE.—A multiemployer plan is in reorganization 
for a plan year if the plan's reorganization index for that year is 
greater than zero. 
"(b) REORGANIZATION INDEX.—For purposes of this subpart— 
"(1) IN GENERAL.—A plan's reorganization index for any plan 
year is the excess of— 
"(A) the vested benefits charge for such year, over 
"(B) the net charge to the funding standard account for 
such year. 
"(2) NET CHARGE TO FUNDING STANDARD ACCOUNT.—The net 
charge to the funding standard account for any plan year is the 
excess (if any) of— 
"(A) the charges to the funding standard account for such 
year under section 412G))(2), over 
26 use 412. 
"(B) the credits to the funding standard account under 
section 412(b)(3)(B). 
"(3) VESTED BENEFITS CHARGE.—The vested benefits charge for 
any plan year is the amount which would be necessary to 
amortize the plan's unfunded vested benefits as of the end of the 
base plan year in equal annual installments— 
"(A) over 10 years, to the extent such benefits are attribut-
able to persons in pay status, and 
"(B) over 25 years, to the extent such benefits are attribut-
able to other participants. 
"(4) DETERMINATION OF VESTED BENEFITS CHARGE.— 
"(A) IN GENERAL.—The vested benefits charge for a plan 
year shall be based on an actuarial valuation of the plan as 
of the end of the base plan year, adjusted to reflect— 
"(i)any-
94 STAT. 1272 
PUBLIC LAW 96-364—SEPT. 26, 1980 
"(I) decrease of 5 percent or more in the value of 
plan assets, or increase of 5 percent or more in the 
number of persons in pay status, during the period 
beginning on the first day of the plan year following 
the base plan year and ending on the adjustment 
date, or 
"(ID at the election of the plan sponsor, actuarial 
valuation of the plan as of the adjustment date or 
any later date not later than the last day of the plan 
year for which the determination is being made, 
"(ii) any change in benefits under the plan which is 
not otherwise taken into account under this subpara-
graph and which is pursuant to any amendment— 
"(I) adopted before the end of the plan year for 
which the determination is being made, and 
"(II) effective after the end of the base plan year 
and on or before the end of the plan year referred to 
in subclause (I), and 
"(iii) any other event (including an event described in 
subparagraph (B)(i)(I)) which, as determined in accord-
ance with regulations prescribed by the Secretary, 
would substantially increase the plan's vested benefit 
charge. 
"(B) CERTAIN CHANGES IN BENEFIT LEVELS.— 
"(i) IN GENERAL.—In determining the vested benefits 
charge for a plan year following a plan year in which the 
plan was not in reorganization, any change in benefits 
which— 
"(I) results from the changing of a group of 
participants from one benefit level to another bene-
fit level under a schedule of plan benefits as a result 
of changes in a collective bargaining agreement, or 
"(II) results from any other change in a collective 
bargaining agreement, 
shall not be taken into account except to the extent 
provided in regulations prescribed by the Secretary, 
"(ii) PLAN IN REORGANIZATION.—Except as otherwise 
determined by the Secretary, in determining the vested 
benefits charge for any plan year following any plan 
year in which the plan was in reorganization, any 
change in benefits— 
"(I) described in clause (i)(I), or 
"(II) described in clause (i)(II) as determined 
under regulations prescribed by the Secretary, 
shall, for purposes of subparagraph (A)(ii), be treated as 
a change in benefits pursuant to an amendment to a 
plan. 
"(5) BASE PLAN YEAR.— 
"(A) IN GENERAL.—The base plan year for any plan year 
is— 
"(i) if there is a relevant collective bargaining agree-
ment, the last plan year ending at least 6 months before 
the relevant effective date, or 
"(ii) if there is no relevant collective bargaining agree-
ment, the last plan year ending at least 12 months 
before the beginning of the plan year. 
PUBLIC LAW 96-364—SEPT. 26, 1980 
94 STAT. 1273 
"(B) RELEVANT COLLECTIVE BARGAINING AGREEMENT.—A 
relevant collective bargaining agreement is a collective 
bargaining agreement— 
"(i) which is in effect for at least 6 months during the 
plan year, and 
"(ii) which has not been in effect for more than 36 
months as of the end of the plan year. 
**(C) RELEVANT EFFECTIVE DATE.—The relevant effective 
date is the earliest of the effective dates for the relevant 
collective bargaining agreements. 
"(D) ADJUSTMENT DATE.—The adjustment date is the date 
which is— 
"(i) 90 days before the relevant effective date, or 
"(ii) if there is no relevant effective date, 90 days 
before the beginning of the plan year. 
"(6) PERSON IN PAY STATUS.—The term 'person in pay status' 
means— 
"(A) a participant or beneficiary on the last day of the base 
plan year who, at any time during such year, was paid an 
early, late, normal, or disability retirement benefit (or a 
death benefit related to a retirement benefit), and 
"(B) to the extent provided in regulations prescribed by the 
Secretary, any other person who is entitled to such a benefit 
under the plan. 
"(7) OTHER DEFINITIONS AND SPECIAL RULES.— 
"(A) UNFUNDED VESTED BENEFITS.—The term 'unfunded 
vested benefits' means, in connection with a plan, an amount 
(determined in accordance with regulations prescribed by 
the Secretary) equal to— 
"(i) the value of vested benefits under the plan, less 
"(ii) the value of the assets of the plan. 
"(B) VESTED BENEFITS.—The term 'vested benefits' means 
any nonforfeitable benefit (within the meaning of section 
4001(a)(8) of the Employee Retirement Income Security Act 
of 1974). 
"(C) ALLOCATION OF ASSETS.—In determining the plan's 
unfunded vested benefits, plan assets shall first be allocated 
to the vested benefits attributable to persons in pay status. 
"(D) TREATMENT OF CERTAIN BENEFIT REDUCTIONS.—The 
vested benefits charge shall be determined without regard to 
reductions in accrued benefits under section 418D which are 
first effective in the plan year. 
"(E) WITHDRAWAL LIABIUTY.—For purposes of this part, 
any outstanding claim for withdrawal liability shall not be 
considered a plan asset, except as otherwise provided in 
regulations prescribed by the Secretary. 
"(c) PROHIBITION OF NONANNUITY PAYMENTS.—Except as provided 
in regulations prescribed by the Pension Benefit Guaranty Corpora-
tion, while a plan is in reorganization a benefit with respect to a 
participant (other than a death benefit) which is attributable to 
employer contributions and which has a value of more than $1,750 
may not be paid in a form other than an annuity which (by itself or in 
combination with social security, railroad retirement, or workers' 
compensation benefits) provides substantially level payments over 
the life of the participant. 
"(d) TERMINATED PLANS.—Any multiemployer plan which termi-
nates under section 4041A(a)(2) of the Employee Retirement Income 
Security Act of 1974 shall not be considered in reorganization after 
^^te, p. 1216. 
94 STAT. 1274 
PUBLIC LAW 96-364—SEPT. 26, 1980 
the last day of the plan year in which the plan is treated as having 
terminated. 
26 use 418A. 
"SEC. 418A, NOTICE OF REORGANIZATION AND FUNDING REQUIREMENTS. 
"(a) NOTICE REQUIREMENT.— 
"(1) IN GENERAL.—If— 
"(A) a multiemployer plan is in reorganization for a plan 
year, and 
Infra. 
"(B) section 418B would require an increase in contribu-
tions for such plan year, 
the plan sponsor shall notify the persons described in paragraph 
(2) that the plan is in reorganization and that, if contributions to 
the plan are not increased, accrued benefits under the plan may 
be reduced or an excise tax may be imposed (or both such 
reduction and imposition may occur). 
"(2) PERSONS TO WHOM NOTICE IS TO BE GIVEN.—The persons 
described in this paragraph are— 
"(A) each employer who has an obligation to contribute 
under the plan (within the meaning of section 4212(a) of the 
Ante, p. 1233. 
Employee Retirement Income Security Act of 1974), and 
"(B) each employee organization which, for purposes of 
collective bargaining, represents plan participants employed 
by such an employer. 
"(3) OVERBURDEN CREDIT NOT TAKEN INTO ACCOUNT.—The de-
termination under paragraph (IXB) shall be made without 
regard to the overburden credit provided by section 418C. 
"(b) ADDITIONAL REQUIREMENTS.—The Pension Benefit Guaranty 
Corporation may prescribe additional or alternative requirements for 
assuring, in the case of a plan with respect to which notice is required 
by subsection (a)(1), that the persons described in subsection (aX2)— 
"(1) receive appropriate notice that the plan is in reorganiza-
tion, 
"(2) are adequately informed of the implications of reorganiza-
tion status, and 
"(3) have reasonable access to information relevant to the 
plan's reorganization status. 
26 use 418B. 
"SEC. 418B. MINIMUM CONTRIBUTION REQUIREMENT. 
"(a) ACCUMULATED FUNDING DEFICIENCY IN REORGANIZATION.— 
"(1) IN GENERAL.—For any plan year in which a multiemployer 
plan is in reorganization— 
"(A) the plan shall continue to maintain its funding 
standard account, and 
"(B) the plan's accumulated funding deficiency under 
26 use 412. 
section 412(a) for such plan year shall be equal to the excess 
(if any) of— 
"(i) the sum of the minimum contribution require-
ment for such plan year (taking into account any over-
burden credit under section 418C(a)) plus the plan's 
accumulated funding deficiency for the preceding plan 
year (determined under this section if the plan was in 
reorganization during such plan year or under section 
412(a) if the plan was not in reorganization), over 
"(ii) amounts considered contributed by employers to 
or under the plan for the plan year (increased by any 
amount waived under subsection (f) for the plan year). 
"(2) TREATMENT OF WITHDRAWAL LIABILITY PAYMENTS.—For 
purposes of paragraph (1), withdrawal liability payments 
PUBLIC LAW 96-364—SEPT. 26, 1980 
94 STAT. 1275 
(whether or not received) which are due with respect to with-
drawals before the end of the base plan year shall be considered 
amounts contributed by the employer to or under the plan if, as 
of the adjustment date, it was reasonable for the plan sponsor to 
anticipate that such payments would be made during the plan 
year. 
"(b) MINIMUM CONTRIBUTION REQUIREMENT.— 
"(1) IN GENERAL.—Except as otherwise provided in this section 
for purposes of this subpart the minimum contribution require-
ment for a plan year in which a plan is in reorganization is an 
amount equal to the excess o
f
— 
"(A) the sum of— 
"(i) the plan's vested benefits charge for the plan year; 
and 
"(ii) the increase in normal cost for the plan year 
determined under the entry age normal funding method 
which is attributable to plan amendments adopted while 
the plan was in reorganization, over 
"(B) the amount of the overburden credit (if any) deter-
mined under section 418C for the plan year. 
"(2) 
ADJUSTMENT FOR REDUCTIONS IN CONTRIBUTION BASE 
UNITS.—If the plan's current contribution base for the plan year 
is less than the plan's valuation contribution base for the plan 
year, the minimum contribution requirement for such plan year 
shall be equal to the product of the amount determined under 
paragraph (1) (after any adjustment required by this subpart 
other than this paragraph) multiplied by a fraction— 
"(A) the numerator of which is the plan's current contribu-
tion base for the plan year, and 
"(B) the denominator of which is the plan's valuation 
contribution base for the plan year. 
"(3) SPECIAL RULE WHERE CASH-FLOW AMOUNT EXCEEDS VESTED 
BENEFITS CHARGE.— 
"(A) IN GENERAL.—If the vested benefits charge for a plan 
year of a plan in reorganization is less than the plan's cash-
flow amount for the plan year, the plan's minimum contribu-
tion requirement for the plan year is the amount determined 
under paragraph (1) (determined before the application of 
paragraph (2)) after substituting the term 
'cash-flow 
amount' for the term 'vested benefits charge' in paragraph 
(1)(A). 
"(B) CASH-FLOW AMOUNT.—For purposes of subparagraph 
(A), a plan's cash-flow amount for a plan year is an amount 
equal to— 
"(i) the amount of the benefits payable under the plan 
for the base plan year, plus the amount of the plan's 
administrative expenses for the base plan year, reduced 
by 
"(ii) the value of the available plan assets for the base 
plan year determined under regulations prescribed by 
the Secretary, 
adjusted in a manner consistent with section 418(b)(4). 
"(c) 
CURRENT CONTRIBUTION BASE; VALUATION CONTRIBUTION 
BASE.— 
"(1) CURRENT CONTRIBUTION BASE.—For purposes of this sub-
part, a plan's current contribution base for a plan year is the 
number of contribution base units with respect to which contri-
butions are required to be made under the plan for that plan 
94 STAT. 1276 
PUBLIC LAW 96-364—SEPT. 26, 1980 
year, determined in accordance with regulations prescribed by 
the Secretary. 
"(2) VALUATION CONTRIBUTION BASE.— 
"(A) IN GENERAL.—Except as provided in subparagraph 
(B), for purposes of this subpart a plan's valuation contribu-
tion base is the number of contribution base units for which 
contributions were received for the base plan year— 
"(i) adjusted to reflect declines in the contribution 
base which have occurred (or could reasonably be antici-
pated) as of the adjustment date for the plan year 
referred to in paragraph (1), 
"(ii) adjusted upward (in accordance with regulations 
prescribed by the Secretary) for any contribution base 
reduction in the base plan year caused by a strike or 
lockout or by unusual events, such as fire, earthquake, 
or severe weather conditions, and 
"(iii) adjusted (in accordance with regulations pre-
scribed by the Secretary) for reductions in the contribu-
tion base resulting from transfers of liabilities. 
"(B) INSOLVENT PLANS.—For any plan year— 
"(i) in which the plan is insolvent (within the meaning 
of section 418E(b)(l)), and 
"(ii) beginning with the first plan year beginning after 
the expiration of all relevant collective bargaining 
agreements which were in effect in the plan year in 
which the plan became insolvent, 
the plan's valuation contribution base is the greater of the 
number of contribution base units for which contributions 
were received for the first or second plan year preceding the 
first plan year in which the plan is insolvent, adjusted as 
provided in clause (ii) or (iii) of subparagraph (A). 
"(3) CONTRIBUTION BASE UNIT.—For purposes of this subpart, 
the term 'contribution base unit' means a unit with respect to 
which an employer has an obligation to contribute under a 
multiemployer plan (as defined in regulations prescribed by the 
Secretary). 
"(d) LIMITATION ON REQUIRED INCREASES IN RATE OF EMPLOYER 
CONTRIBUTIONS.— 
"(1) IN GENERAL.—Under regulations prescribed by the Secre-
tary, the minimum contribution requirement applicable to any 
plan for any plan year which is determined under subsection (b) 
(without regard to subsection (b)(2)) shall not exceed an amount 
which is equal to the sum of— 
"(A) the greater of— 
"(i) the funding standard requirement for such plan 
year, or 
"(ii) 107 percent of— 
"(I) if the plan was not in reorganization in the 
preceding plan year, the funding standard require-
ment for such preceding plan year, or 
"(II) if the plan was in reorganization in the 
preceding plan year, the sum of the amount deter-
mined under this subparagraph for the preceding 
plan year and the amount (if any) determined under 
subparagraph (B) for the preceding plan year, plus 
"(B) if for the plan year a change in benefits is first 
required to be considered in computing the charges under 
26 use 412. 
section 41203)(2) (A) or (B), the sum of— 
PUBLIC LAW 96-364—SEPT. 26, 1980 
94 STAT. 1277 
"(i) the increase in normal cost for a plan year 
determined under the entry age normal funding method 
due to increases in benefits described in section 
418(b)(4)(AXii) (determined without regard to section 
418(b)(4)(B)(ii)),and 
"(ii) the amount necessary to amortize in equal 
annual installments the increase in the value of vested 
benefits under the plan due to increases in benefits 
described in clause (i) over— 
"(I) 10 years, to the extent such increase in value 
is attributable to persons in pay status, or 
"(11) 25 years, to the extent such increase in value 
is attributable to other participants. 
"(2) FUNDING STANDARD REQUIREMENT.—For purposes of para-
graph (1), the funding standard requirement for any plan year is 
an amount equal to the net charge to the funding standard 
account for such plan year (as defined in section 4180o)(2)). 
"(3) SPECIAL RULE FOR CERTAIN PLANS.— 
"(A) IN GENERAL.—In the case of a plan described in 
section 42160)) of the Employee Retirement Income Security 
Act of 1974, if a plan amendment which increases benefits is ^nte, p. 1234. 
adopted after January 1,1980— 
"(i) paragraph (1) shall apply only if the plan is a plan 
described in subparagraph (B), and 
"(ii) the amount under paragraph (1) shall be deter-
mined without regard to subparagraph (1)(B). 
"(B) EuGiBLE PLANS.—A plan is described in this subpara-
graph if— 
"(i) the rate of employer contributions under the plan 
for the first plan year beginning on or after the date on 
which an amendment increasing benefits is adopted, 
multiplied by the valuation contribution base for that 
plan year, equals or exceeds the sum of— 
"(I) the amount that would be necessary to amor-
tize fully, in equal annual installments, by July 1, 
1986, the unfunded vested benefits attributable to 
plan provisions in effect on July 1,1977 (determined 
as of the last day of the base plan year); and 
"(II) the amount that would be necessary to amor-
tize fully, in equal annual installments, over the 
period described in subparagraph (C), beginning 
with the first day of the first plan year beginning on 
or after the date on which the amendment is adopt-
ed, the unfunded vested benefits (determined as of 
the last day of the base plan year) attributable to 
each plan amendment after July 1,1977; and 
"(ii) the rate of employer contributions for each subse-
quent plan year is not less than the lesser of— 
"(I) the rate which when multiplied by the valua-
tion contribution base for that subsequent plan year 
produces the annual amount that would be nec-
essary to complete the amortization schedule 
described in clause (i), or 
"(II) the rate for the plan year immediately pre-
ceding such subsequent plan year, plus 5 percent of 
such rate. 
"(C) PERIOD.—The period determined under this subpara-
graph is the lesser of^ 
94 STAT. 1278 
PUBLIC LAW 96-364—SEPT. 26, 1980 
"(i) 12 years, or 
"(ii) a period equal in length to the average of the 
remaining expected lives of all persons receiving bene-
fits under the plan. 
"(4) EXCEPTION IN CASE OF CERTAIN BENEFIT INCREASES.—Para-
graph (1) shall not apply with respect to a plan, other than a plan 
described in paragraph (3), for the period of consecutive plan 
years in each of which the plan is in reorganization, beginning 
with a plan year in which occurs the earlier of the date of the 
adoption or the effective date of any amendment of the plan 
which increases benefits with respect to service performed before 
the plan year in which the adoption of the amendment occurred. 
"(e) CERTAIN RETROACTIVE PLAN AMENDMENTS.—In determining 
the minimum contribution requirement with respect to a plan for a 
plan year under subsection (b), the vested benefits charge may be 
adjusted to reflect a plan amendment reducing benefits under section 
26 use 412. 
412(C)(8). 
"(f) WAIVER OF ACCUMULATED FUNDING DEFICIENCY.— 
"(1) IN GENERAL.—The Secretary may waive any accumulated 
funding deficiency under this section in accordance with the 
provisions of section 412(d)(1). 
"(2) TREATMENT OF WAIVER.—Any waiver under paragraph (1) 
shall not be treated as a waived funding deficiency (within the 
meaning of section 412(d)(3)). 
"(g) ACTUARIAL ASSUMPTIONS MUST BE REASONABLE.—For purposes 
of making any determination under this subpart, the requirements of 
section 412(c)(3) shall apply. 
26USC418C. 
"SEC. 418C. OVERBURDEN CREDIT AGAINST MINIMUM CONTRIBUTION 
REQUIREMENT. 
"(a) GENERAL RULE.—For purposes of determining the contribution 
under section 418B (before the application of section 418B (b)(2) or (d)), 
the plan sponsor of a plan which is overburdened for the plan year 
shall apply an overburden credit against the plan's minimum contri-
bution requirement for the plan year (determined without regard to 
section 418B (b)(2) or (d) and without regard to this section). 
"(b) DEFINITION OF OVERBURDENED PLAN.—A plan is overburdened 
for a plan year i
f
— 
"(1) the average number of pay status participants under the 
plan in the base plan year exceeds the average of the number of 
active participants in the base plan year and the 2 plan years 
preceding the base plan year, and 
"(2) the rate of employer contributions under the plan equals 
or exceeds the greater of— 
"(A) such rate for the preceding plan year, or 
"(B) such rate for the plan year preceding the first year in 
which the plan is in reorganization. 
"(c) AMOUNT OF OVERBURDEN CREDIT.—The amount of the overbur-
den credit for a plan year is the product o
f
— 
"(1) one-half of the average guaranteed benefit paid for the 
base plan year, and 
"(2) the overburden factor for the plan year. 
The amount of the overburden credit for a plan year shall not exceed 
the amount of the minimum contribution requirement for such year 
(determined without regard to this section). 
"(d) OVERBURDEN FACTOR.—For purposes of this section, the over-
burden factor of a plan for the plan year is an amount equal to— 
PUBLIC LAW 96-364—SEPT. 26, 1980 
94 STAT. 1279 
"(1) the average number of pay status participants for the base 
plan year, reduced by 
"(2) the average of the number of active participants for the 
base plan year and for each of the 2 plan years preceding the base 
plan year. 
"(e) DEFINITIONS.—For purposes of this section— 
"(1) PAY STATUS PARTICIPANT.—The term 'pay status partici-
pant' means, with respect to a plan, a participant receiving 
retirement benefits under the plan. 
"(2) NUMBER OF ACTIVE PARTICIPANTS.—The number of active 
participants for a plan year shall be the sum of— 
"(A) the number of active employees who are participants 
in the plan and on whose behalf contributions are required 
to be made during the plan year; 
"(B) the number of active employees who are not partici-
pants in the plan but who are in an employment unit 
covered by a collective bargaining agreement which requires 
the employees' employer to contribute to the plan unless 
service in such employment unit was never covered under 
the plan or a predecessor thereof, and 
"(C) the total number of active employees attributed to 
employers who made payments to the plan for the plan year 
of withdrawal liability pursuant to part 1 of subtitle E of title 
IV of the Employee Retirement Income Security Act of 1974, 
Ante, p. 1217. 
determined by dividing— 
"(i) the total amount of such payments, by 
"(ii) the amount equal to the total contributions re-
ceived by the plan during the plan year divided by the 
average number of active employees who were partici-
pants in the plan during the plan year. 
The Secretary shall by regulations provide alternative methods 
of determining active participants where (by reason of irregular 
employment, contributions on a unit basis, or otherwise) this 
paragraph does not yield a representative basis for determining 
the credit. 
"(3) AVERAGE NUMBER.—The term 'average number' means, 
with respect to pay status participants for a plan year, a number 
equal to one-half the sum of— 
"(A) the number with respect to the plan as of the 
beginning of the plan year, and 
"(B) the number with respect to the plan as of the end of 
the plan year. 
"(4) AVERAGE GUARANTEED BENEFIT.—The average guaranteed 
benefit paid is 12 times the average monthly pension payment 
guaranteed under section 4022A(cXl) of the Employee Retire-
ment Income Security Act of 1974 determined under the provi- ^"^e- P 1210. 
sions of the plan in effect at the beginning of the first plan year in 
which the plan is in reorganization and without regard to section 
4022A(c)(2). 
"(5) FIRST YEAR IN REORGANIZATION.—The first year in which 
the plan is in reorganization is the first of a period of 1 or more 
consecutive plan years in which the plan has been in reorganiza-
tion not taking into account any plan years the plan was in 
reorganization prior to any period of 3 or more consecutive plan 
years in which the plan was not in reorganization. 
"(f) No OVERBURDEN CREDIT IN CASE OF CERTAIN REDUCTIONS IN 
CONTRIBUTIONS.— 
79-194 
O—81—pt. 1 
84 : QL3 
94 STAT. 1280 
PUBLIC LAW 96-364—SEPT. 26, 1980 
"(1) IN GENERAL.—Notwithstanding any other provision of this 
section, a plan is not eligible for an overburden credit for a plan 
year if the Secretary finds that the plan's current contribution 
base for any plan year was reduced, without a corresponding 
reduction in the plan's unfunded vested benefits attributable to 
pay status participants, as a result of a change in an agreement 
providing for employer contributions under the plan. 
"(2) TREATMENT OF CERTAIN WITHDRAWALS.—For purposes of 
paragraph (1), a complete or partial withdrawal of an employer 
(within the meaning of part 1 of subtitle E of title IV of the 
Ante, p. 1217. 
Employee Retirement Income Security Act of 1974) does not 
impair a plan's eligibility for an overburden credit, unless the 
Secretary finds that a contribution base reduction described in 
paragraph (1) resulted from a transfer of liabilities to another 
plan in connection with the withdrawal. 
"(g) MERGERS.—Notwithstanding any other provision of this sec-
tion, if 2 or more multiemployer plans merge, the amount of the 
overburden credit which may be applied under this section with 
respect to the plan resulting from the merger for any of the 3 plan 
years ending after the effective date of the merger shall not exceed 
the sum of the used overburden credit for each of the merging plans 
for its last plan year ending before the effective date of the merger. 
For purposes of the preceding sentence, the used overburden credit is 
that portion of the credit which does not exceed the excess of the 
minimum contribution requirement determined without regard to 
any overburden credit under this section over the employer contribu-
tions required under the plan. 
"SEC. 418D. ADJUSTMENTS IN ACCRUED BENEFITS. 
"(a) ADJUSTMENTS IN ACCRUED BENEFITS.— 
"(1) IN GENERAL.—Notwithstanding section 411, a multiem-
ployer plan in reorganization may be amended, in accordance 
with this section, to reduce or eliminate accrued benefits attrib-
utable to employer contributions which, under section 4022A(b) 
of the Employee Retirement Income Security Act of 1974, are not 
eligible for the Pension Benefit Guaranty Corporation's guar-
antee. The preceding sentence shall only apply to accrued 
benefits under plan amendments (or plans) adopted after March 
26, 1980, or under collective bargaining agreement entered into 
after March 26,1980. 
"(2) ADJUSTMENT OF VESTED BENEFITS CHARGE.—In determining 
the minimum contribution requirement with respect to a plan 
Ante, p. 1274. 
for a plan year under section 418B(b), the vested benefits charge 
may be adjusted to reflect a plan amendment reducing benefits 
26 use 412. 
under this section or section 412(c)(8), but only if the amendment 
is adopted and effective no later than 2y2 months after the end of 
the plan year, or within such extended period as the Secretary 
may prescribe by regulations under section 412(c)(10). 
"(b) LIMITATION ON REDUCTION.— 
"(1) IN GENERAL.—Accrued benefits may not be reduced under 
this section unless— 
"(A) notice has been given, at least 6 months before the 
first day of the plan year in which the amendment reducing 
benefits is adopted, to— 
"(i) plan participants and beneficiaries, 
"(ii) each employer who has an obligation to contrib-
ute (within the meaning of section 4212(a) of the Em-
26 use 418D. 
26 use 411. 
Ante, p. 1210. 
PUBLIC LAW 96-364—SEPT. 26, 1980 
94 STAT. 1281 
ployee Retirement Income Security Act of 1974) under ^«^e, p. 1233. 
the plan, and 
"(iii) each employee organization which, for purposes 
of collective bargaining, represents plan participants 
employed by such an employer, 
that the plan is in reorganization and that, if contributions 
under the plan are not increased, accrued benefits under the 
plan will be reduced or an excise tax will be imposed on 
employers; 
(B) in accordance with regulations prescribed by the 
Secretary— 
"(i) any category of accrued benefits is not reduced 
with respect to inactive participants to a greater extent 
proportionally that such category of accrued benefits is 
reduced with respect to active participants, 
"(ii) benefits attributable to employer contributions 
other than accrued benefits and the rate of future 
benefit accruals are reduced at least to an extent equal 
to the reduction in accrued benefits of inactive partici-
pants, and 
"(iii) in any case in which the accrued benefit of a 
participant or beneficiary is reduced by changing the 
benefit form or the requirements which the participant 
or beneficiary must satisfy to be entitled to the benefit, 
such reduction is not applicable to— 
"(I) any participant or beneficiary in pay status 
on the effective date of the amendment, or the 
beneficiary of such a participant, or 
"(II) any participant who has attained normal 
retirement age, or who is within 5 years of attaining 
normal retirement age, on the effective date of the 
amendment, or the beneficiary of any such partici-
pant; and 
"(C) the rate of employer contributions for the plan year in 
which the amendment becomes effective and for all succeed-
ing plan years in which the plan is in reorganization equals 
or exceeds the greater of— 
"(i) the rate of employer contributions, calculated 
without regard to the amendment, for the plan year in 
which the amendment becomes effective, or 
"(ii) the rate of employer contributions for the plan 
year preceding the plan year in which the amendment 
becomes effective. 
"(2) INFORMATION REQUIRED TO BE INCLUDED IN NOTICE.—The 
plan sponsors shall include in any notice required to be sent to 
plan participants and beneficiaries under paragraph (1) informa-
tion as to the rights and remedies of plan participants and 
beneficiaries as well as how to contact the Department of Labor 
for further information and assistance where appropriate. 
"(c) No RECOUPMENT.—A plan may not recoup a benefit payment 
which is in excess of the amount payable under the plan because of 
an amendment retroactively reducing accrued benefits under this 
section. 
"(d) BENEFIT INCREASES UNDER MULTIEMPLOYER PLAN IN REORGA-
NIZATION.— 
"(1) RESTORATION OF PREVIOUSLY REDUCED BENEFITS.— 
"(A) IN GENERAL.—A plan which has been amended to 
reduce accrued benefits under this section may be amended 
94 STAT. 1282 
PUBLIC LAW 96-364—SEPT. 26, 1980 
to increase or restore accrued benefits, or the rate of future 
benefit accruals, only if the plan is amended to restore levels 
of previously reduced accrued benefits of inactive partici-
pants and of participants who are within 5 years of attaining 
normal retirement age to at least the same extent as any 
such increase in accrued benefits or in the rate of future 
benefit accruals. 
"(B) BENEFIT INCREASES AND BENEFIT RESTORATIONS.—For 
purposes of this subsection, in the case of a plan which 
has been amended under this section to reduce accrued 
benefits— 
"(i) an increase in a benefit, or in the rate of future 
benefit accruals, shall be considered a benefit increase 
to the extent that the benefit, or the accrual rate, is 
thereby increased above the highest benefit level, or 
accrual rate, which was in effect under the terms of the 
plan before the effective date of the amendment reduc-
ing accrued benefits, and 
(ii) an increase in a benefit, or in the rate of future 
benefit accruals, shall be considered a benefit restora-
tion to the extent that the benefit, or the accrual rate, is 
not thereby increased above the highest benefit level, or 
accrual rate, which was in effect under the terms of the 
plan immediately before the effective date of the amend-
ment reducing accrued benefits. 
"(2) UNIFORMITY IN BENEFIT RESTORATION.—If a plan is amended 
to partially restore previously reduced accrued benefit levels, or 
the rate of future benefit accruals, the benefits of inactive 
participants shall be restored in at least the same proportions as 
other accrued benefits which are restored. 
"(3) No BENEFIT INCREASES IN YEAR OF BENEFIT REDUCTION.—NO 
benefit increase under a plan may take effect in a plan year in 
which an amendment reducing accrued benefits under the plan, 
in accordance with this section, is adopted or first becomes 
effective. 
"(4) RETROACTIVE PAYMENTS.—A plan is not required to make 
retroactive benefit payments with respect to that portion of an 
accrued benefit which was reduced and subsequently restored 
under this section. 
"(e) INACTIVE PARTICIPANT.—For purposes of this section, the term 
'inactive participant' means a person not in covered service under the 
plan who is in pay status under the plan or who has a nonforfeitable 
benefit under the plan. 
"(f) REGULATIONS.—The Secretary may prescribe rules under 
which, notwithstanding any other provision of this section, accrued 
benefit reductions or benefit increases for different participant 
groups may be varied equitably to reflect variations in contribution 
rates and other relevant factors reflecting differences in negotiated 
levels of financial support for plan benefit obligations. 
26 use 418E. 
"SEC. 418E. INSOLVENT PLANS. 
"(a) SUSPENSION OF CERTAIN BENEFIT PAYMENTS.—Notwithstand-
26 use 411. 
ing section 411, in any case in which benefit payments under an 
insolvent multiemployer plan exceed the resource benefit level, any 
such payments of benefits which are not basic benefits shall be 
suspended, in accordance with this section, to the extent necessary to 
reduce the sum of such payments and the payments of such basic 
benefits to the greater of the resource benefit level or the level of 
PUBLIC LAW 96-364—SEPT. 26, 1980 
94 STAT. 1283 
basic benefits, unless an alternative procedure is prescribed by the 
Pension Benefit Guaranty Corporation under section 4022A(g)(5) of 
the Employee Retirement Income Security Act of 1974. 
^"^e, p. 1210. 
"(b) DEFINITIONS.—For purposes of this section, for a plan year— 
"(1) INSOLVENCY.—A multiemployer plan is insolvent if the 
plan's available resources are not sufficient to pay benefits under 
the plan when due for the plan year, or if the plan is determined 
to be insolvent under subsection (d). 
"(2) RESOURCE BENEFIT LEVEL.—The term 'resource benefit 
level' means the level of monthly benefits determined under 
subsections (c) (1) and (3) and (d)(3) to be the highest level which 
can be paid out of the plan's available resources. 
"(3) AVAILABLE RESOURCES.—The term 'available resources' 
means the plan's cash, marketable assets, contributions, with-
drawal liability payments, and earnings, less reasonable admin-
istrative expenses and amounts owed for such plan year to the 
Pension Benefit Guaranty Corporation under section 4261(b)(2) 
of the Employee Retirement Income Security Act of 1974. 
Ante, p. I26i. 
"(4) INSOLVENCY YEAR.—The term 'insolvency year' means a 
plan year in which a plan is insolvent. 
"(c) BENEFIT PAYMENTS UNDER INSOL^.'^ENT PLANS.— 
"(1) DETERMINATION OF RESOURCE BENEFIT LEVEL,—The plan 
sponsor of a plan in reorganization shall determine in writing the 
plan's resource benefit level for each insolvency year, based on 
the plan sponsor's reasonable projection of the plan's available 
resources and the benefits payable under the plan. 
"(2) UNIFORMITY OF THE BENEFIT SUSPENSION.—The suspension 
of benefit payments under this section shall, in accordance with 
regulations prescribed by the Secretary, apply in substantially 
uniform proportions to the benefits of all persons in pay status 
(within the meaning of section 418(b)(6)) under the plan, except 
that the Secretary may prescribe rules under which benefit 
suspensions for different participant groups may be varied 
equitably to reflect variations in contribution rates and other 
relevant factors including differences in negotiated levels of 
financial support for plan benefit obligations. 
"(3) RESOURCE BENEFIT LEVEL BELOW LEVEL OF BASIC BENEFITS.— 
Notwithstanding paragraph (2), if a plan sponsor determines in 
writing a resource benefit level for a plan year which is below the 
level of basic benefits, the payment of all benefits other than 
basic benefits shall be suspended for that plan year. 
"(4) EXCESS RESOURCES.— 
"(A) IN GENERAL.—If, by the end of an insolvency year, the 
plan sponsor determines in writing that the plan's available 
resources in that insolvency year could have supported 
benefit payments above.the resource benefit level for that 
insolvency year, the plan sponsor shall distribute the excess 
resources to the participants and beneficiaries who received 
benefit payments from the plan in that insolvency year, in 
accordance with regulations prescribed by the Secretary. 
"(B) EXCESS RESOURCES.—For purposes of this paragraph, 
the term 'excess resources' means available resources above 
the amount necessary to support the resource benefit level, 
but no greater than the amount necessary to pay benefits for 
the plan year at the benefit levels under the plan. 
"(5) UNPAID BENEFITS.—If, by the end of an insolvency year, 
any benefit has not been paid at the resource benefit level, 
amounts up to the resource benefit level which were unpaid shall 
94 STAT. 1284 
PUBLIC LAW 96-364—SEPT. 26, 1980 
be distributed to the participants and beneficiaries, in accord-
ance with regulations prescribed by the Secretary, to the extent 
possible taking into account the plan's total available resources 
in that insolvency year. 
"(6) RETROACTIVE PAYMENTS.—Except as provided in para-
graph (4) or (5), a plan is not required to make retroactive benefit 
payments with respect to that portion of a benefit which was 
suspended under this section. 
"(d) PLAN SPONSOR DETERMINATION.— 
"(1) TRIENNIAL TEST.—As of the end of the first plan year in 
which a plan is in reorganization, and at least every 3 plan years 
thereafter (unless the plan is no longer in reorganization), the 
plan sponsor shall compare the value of plan assets (determined 
in accordance with section 418B(b)(3)(B)(ii)) for that plan year 
with the total amount of benefit payments made under the plan 
for that plan year. Unless the plan sponsor determines that the 
value of plan assets exceeds 3 times the total amount of benefit 
payments, the plan sponsor shall determine whether the plan 
will be insolvent in any of the next 3 plan years. 
"(2) DETERMINATION OF INSOLVENCY.—If, at any time, the plan 
sponsor of a plan in reorganization reasonably determines, 
taking into account the plan's recent and anticipated financial 
experience, that the plan's available resources are not sufficient 
to pay benefits under the plan when due for the next plan year, 
the plan sponsor shall make such determination available to 
interested parties. 
"(3) DETERMINATION OF RESOURCE BENEFIT LEVEL.—The plan 
sponsor of a plan in reorganization shall determine in writing for 
each insolvency year the resource benefit level and the level of 
basic benefits no later than 3 months before the insolvency year. 
"(e) NOTICE REQUIREMENTS.— 
"(1) IMPENDING INSOLVENCY.—If the plan sponsor of a plan in 
reorganization determines under subsection (d) (1) or (2) that the 
plan may become insolvent (within the meaning of subsection 
(b)( 
1)), the plan sponsor shall— 
"(A) notify the Secretary, the Pension Benefit Guaranty 
Corporation, the parties described in section 418A(a)(2), and 
the plan participants and beneficiaries of that determina-
tion, and 
"(B) inform the parties described in section 418A(a)(2) and 
the plan participants and beneficiaries that if insolvency 
occurs certain benefit payments will be suspended, but that 
basic benefits will continue to be paid. 
"(2) RESOURCE BENEFIT LEVEL.—No later than 2 months before 
the first day of each insolvency year, the plan sponsor of a plan in 
reorganization shall notify the Secretary, the Pension Benefit 
Guaranty 
Corporation, 
the 
parties 
described 
in 
section 
418A(a)(2), and the plan participants and beneficiaries of the 
resource benefit level determined in writing for that insolvency 
year. 
"(3) POTENTIAL NEED FOR FINANCIAL ASSISTANCE.—In any case 
in which the plan sponsor anticipates that the resource benefit 
level for an insolvency year may not exceed the level of basic 
benefits, the plan sponsor shall notify the Pension Benefit 
Guaranty Corporation. 
"(4) REGULATIONS.—Notice required by this subsection shall be 
given in accordance with regulations prescribed by the Pension 
Benefit Guaranty Corporation, except that notice to the Secre-
PUBLIC LAW 96-364—SEPT. 26, 1980 
94 STAT. 1285 
tary shall be given in accordance with regulations prescribed by 
the Secretary. 
"(5) CORPORATION MAY PRESCRIBE TIME.—The Pension Benefit 
Guaranty Corporation may prescribe a time other than the time 
prescribed by this section for the making of a determination or 
the filing of a notice under this section. 
"(f) FINANCIAL ASSISTANCE.— 
"(1) PERMISSIVE APPLICATION.—If the plan sponsor of an insol-
vent plan for which the resource benefit level is above the level of 
basic benefits anticipates that, for any month in an insolvency 
year, the plan will not have funds sufficient to pay basic benefits, 
the plan sponsor may apply for financial assistance from the 
Pension Benefit Guaranty Corporation under section 4261 of the 
Employee Retirement Income Security Act of 1974. 
Ante, p. I26i. 
"(2) MANDATORY APPLICATION.—A plan sponsor who has deter-
mined a resource benefit level for an insolvency year which is 
below the level of basic benefits shall apply for financial assist-
ance from the Pension Benefit Guaranty Corporation under 
section 4261 of the Employee Retirement Income Security Act of 
1974. 
"(g) FINANCIAL ASSISTANCE.—Any amount of any financial assist-
ance from the Pension Benefit Guaranty Corporation to any plan, 
and any repayment of such amount, shall be taken into account 
under this subpart in such manner as determined by the Secretary.", 
(b) CLERICAL AMENDMENT.—The table of subparts for part I of 
subchapter D of chapter 1 is amended by adding at the end thereof 
the following new subpart: 
"Subpart C. Special rules for multiemployer plans.". 
SEC. 203. MINIMUM FUNDING REQUIREMENTS. 
Section 412 (relating to minimum funding standards) is amended— ^^ USC 412. 
(1) in subsection (b), by striking out "(40 plan years in the case 
of a multiemployer plan)" and (20 plan years in the case of a 
multiemployer plan)' each place they appear; 
(2) by adding at the end of subsection (b) the following new 
paragraphs: 
"(6) CERTAIN AMORTIZATION CHARGES AND CREDITS.—In the case 
of a plan which, immediately before the date of the enactment of 
the Multiemployer Pension Plan Amendments Act of 1980, was a Ante, p. 1208. 
multiemployer plan (within the meaning of section 414(f) as in Post, p. 1288. 
effect immediately before such date)— 
"(A) any amount described in paragraph (2)(B)(ii), 
(2)(B)(iii), or (3)(B)(i) of this subsection which arose in a plan 
year beginning before such date shall be amortized in equal 
annual installments (until fully amortized) over 40 plan 
years, beginning with the plan year in which the amount 
arose; 
"(B) any amount described in paragraph (2)(B)(iv) or 
(3)(B)(ii) of this subsection which arose in a plan year 
beginning before such date shall be amortized in equal 
annual installments (until fully amortized) over 20 plan 
years, beginning with the plan year in which the amount 
arose; 
"(C) any change in past service liability which arises 
during the period of 3 plan years beginning on or after such 
date, and results from a plan amendment adopted before 
such date, shall be amortized in equal annual installments 
94 STAT. 1286 
PUBLIC LAW 96-364—SEPT. 26, 1980 
Ante, p. 1217. 
Ante, p. 1274. 
Ante, p. 1240. 
Post, p. 1290. 
Ante, p. 1241. 
Ante, p. 1217. 
(until fully amortized) over 40 plan years, beginning with the 
plan year in which the change arises; and 
"(D) any change in past service liability which arises 
during the period of 2 plan years beginning on or after such 
date, and results from the changing of a group of partici-
pants from one benefit level to another benefit level under a 
schedule of plan benefits which— 
"(i) was adopted before such date, and 
"(ii) was effective for any plan participant before the 
beginning of the first plan year beginning on or after 
such date, 
shall be amortized in equal annual installments (until fully 
amortized) over 40 plan years, beginning with the plan year 
in which the change arises. 
"(7) SPECIAL RULES FOR MULTIEMPLOYER PLANS.—For purposes 
of this section— 
"(A) WITHDRAWAL LIABILITY.—Any amount received by a 
multiemployer plan in payment of all or part of an em-
ployer's withdrawal liability under part 1 of subtitle E of 
title IV of the Employee Retirement Income Security Act of 
1974 shall be considered an amount contributed by the em-
ployer to or under the plan. The Secretary may prescribe by 
regulation additional charges and credits to a multiemployer 
plan's funding standard account to the extent necessary to 
prevent withdrawal liability payments from being unduly 
reflected as advance funding for plan liabilities. 
"(B) ADJUSTMENTS WHEN A MULTIEMPLOYER PLAN LEAVES 
REORGANIZATION.—If a multiemployer plan is not in reorga-
nization in the plan year but was in reorganization in the 
immediately preceding plan year, any balance in the fund-
ing standard account at the close of such immediately 
preceding plan vear— 
"(i) shall be eliminated by an offsetting credit or 
charge (as the case may be), but 
"(ii) shall be taken into account in subsequent plan 
years by being amortized in equal annual installments 
(until fully amortized) over 30 plan years. 
The preceding sentence shall not apply to the extent of any 
accumulated funding deficiency under section 418B(a) as of 
the end of the last plan year that the plan was in reorganiza-
tion. 
"(C) PLAN PAYMENTS TO SUPPLEMENTAL PROGRAM OR WITH-
DRAWAL UABILITY PAYMENT FUND.—Any amount paid by a 
plan during a plan year to the Pension Benefit Guaranty 
Corporation pursuant to section 4222 of such Act or to a fund 
exempt under section 501(cX22) pursuant to section 4223 of 
such Act shall reduce the amount of contributions consid-
ered received by the plan for the plan year. 
"(D) INTERIM WITHDRAWAL UABIUTY PAYMENTS.—Any 
amount paid by an employer pending a final determination 
of the employer's withdrawal liability under part 1 of subti-
tle E of title IV of such Act and subsequently refunded to the 
employer by the plan shall be charged to the funding 
standard account in accordance with regulations prescribed 
by the Secretary. 
"(E) For purposes of the full funding limitation under 
subsection (c)(7), unless otherwise provided by the plan, the 
accrued liability under a multiemployer plan shall not 
PUBLIC LAW 96-364—SEPT. 26, 1980 
94 STAT. 1287 
include benefits which are not nonforfeitable under the plan 
after the termination of the plan (taking into consideration 
section 411(d)(3))."; and 
26 use 4ii. 
(3) by adding at the end thereof the following new subsection: 
"(j) CERTAIN TERMINATED MULTIEMPLOYER PLANS.—This section 
applies with respect to a terminated multiemployer plan to which 
section 4021 of the Employee Retirement Income Security Act of 1974 ^9 use 1321. 
applies, until the last day of the plan year in which the plan 
terminates, within the meaning of section 4041A(a)(2) of that Act. ^'^'e, p. 1216. 
"(k) FINANCIAL ASSISTANCE.—Any amount of any financial assist-
ance from the Pension Benefit Guaranty Corporation to any plan, 
and any repayment of such amount, shall be taken into account 
under this section in such manner as determined by the Secretary.". 
SEC. 204. EXCISE TAXES. 
Section 4971 (relating to taxes on failure to meet minimum funding 26 use 4971. 
standard) is amended— 
(1) by striking out "last sentence" in subsection (c) and insert-
ing in lieu thereof "last two sentences"; and 
(2) by adding at the end of subsection (d) the following new 
sentence: "In the case of a multiemployer plan which is in 
reorganization under section 418, the same notice and oppor- Ante, p. 1271. 
tunity shall be provided to the Pension Benefit Guaranty 
Corporation.". 
SEC. 205. DEDUCTIBILITY OF EMPLOYER LIABILITY PAYMENTS. 
Subsection (g) of section 404 (relating to certain employer liability 26 use 404. 
payments considered as contributions) is amended to read as follows: 
"(g) CERTAIN EMPLOYER LIABIUTY PAYMENTS CONSIDERED AS 
CONTRIBUTIONS.— 
"(1) IN GENERAL.—For purposes of this section, any amount 
paid by an employer under section 4062,4063, or 4064, or part 1 of 
subtitle E of title IV of the Employee Retirement Income Secu-
rity Act of 1974 shall be treated as a contribution to which this 29 use 
section applies by such employer to or under a stock bonus, ^^^2-1364, ante, 
pension, profit-sharing, or annuity plan. 
^ 
"(2) CONTROLLED GROUP DEDUCTIONS.—In the case of a payment 
described in paragraph (1) made by an entity which is liable 
because it is a member of a commonly controlled group of 
corporations, trades, or businesses, within the meaning of subsec-
tion (b) or (c) of section 414, the fact that the entity did not 26 use 414. 
directly employ participants of the plan with respect to which 
the liability payment was made shall not affect the deductibility 
of a payment which otherwise satisfies the conditions of section 
162 (relating to trade or business expenses) or section 212 26 use 162. 
(relating to expenses for the production of income). 
26 use 212. 
"(3) COORDINATION WITH SUBSECTION (a).—Any payment de-
scribed in paragraph (1) shall (subject to the last sentence of 
subsection (a)(1)(A)) be deductible under this section when paid.". 
SEC. 206. MINIMUM VESTING REQUIREMENTS. 
Section 411 (relating to minimum vesting standards) is amended— 26 use 411. 
(1) by adding at the end of subsection (a)(3) the following new 
subparagraphs: 
"(E) CESSATION OF CONTRIBUTIONS UNDER A MULTIEM-
PLOYER PLAN.—A right to an accrued benefit derived from 
employer contributions under a multiemployer plan shall 
not be treated as forfeitable solely because the plan provides 
94 STAT. 1288 
PUBLIC LAW 96-364—SEPT. 26, 1980 
Ante, p. 1280. 
Ante, p. 1261. 
Ante, p. 1282. 
Ante, p. 1218. 
Ante, p. 1221. 
26 use 412. 
Ante, p. 1261. 
26 use 414. 
that benefits accrued as a result of service with the partici-
pant's employer before the employer had an obligation to 
contribute under the plan may not be payable if the 
employer ceases contributions to the multiemployer plan. 
(F) REDUCTION AND SUSPENSION OF BENEFITS BY A MUL-
TIEMPLOYER PLAN.—A participant's right to an accrued 
benefit derived from employer contributions under a multi-
employer plan shall not be treated as forfeitable solely 
because— 
"(i) the plan is amended to reduce benefits under 
section 418D or under section 4281 of the Employee 
Retirement Income Security Act of 1974, or 
"(ii) benefit payments under the plan may be sus-
pended under section 418E or under section 4281 of the 
Employee Retirement Income Security Act of 1974."; 
(2) in subsection (a)(4XE), by striking out "and'; 
(3) in subsection (a)(4)(F), by striking out the period and 
inserting in lieu thereof "; and"; 
(4) by adding at the end of subsection (a)(4) the following new 
subparagraph: 
"(G) in the case of a multiemployer plan, years of service— 
"(i) with an employer after— 
"(I) a complete withdrawal of that employer from 
the plan (within the meaning of section 4203 of the 
Employee Retirement Income Security Act of 1974), 
or 
"(II) to the extent permitted in regulations pre-
scribed by the Secretary, a partial withdrawal de-
scribed in section 4205(b)(2)(A)(i) of such Act in 
conjunction with the decertification of the collective 
bargaining representative, and 
"(ii) with any employer under the plan after the 
termination date of the plan under section 4048 of such 
Act."; and 
(5) in subsection (d)(6), by striking out "section 412(c)(8)" and 
inserting in lieu thereof "section 412(c)(8), or section 4281 of the 
Employee Retirement Income Security Act of 1974". 
SEC. 207. DEFINITION OP MULTIEMPLOYER PLAN. 
(a) Section 414 (relating to definitions and special rules) is amended 
by striking out subsection (f) and inserting in lieu thereof the 
following: 
"(f) MULTIEMPLOYER PLAN.— 
"(1) DEFINITION.—For purposes of this part, the term 'multiem-
ployer plan' means a plan— 
(A) to which more than one employer is required to 
contribute, 
"(B) which is maintained pursuant to one or more collec-
tive bargaining agreements between one or more employee 
organizations and more than one employer, and 
(C) which satisfies such other requirements as the Secre-
tary of Labor may prescribe by regulation. 
"(2) CASES OF COMMON CONTROL.—For purposes of this subsec-
tion, all trades or businesses (whether or not incorporated) which 
are under common control within the meaning of subsection (c) 
are considered a single employer. 
"(3) CONTINUATION OF STATUS AFTER TERMINATION.—Notwith-
standing paragraph (1), a plan is a multiemployer plan on and 
PUBLIC LAW 96-364—SEPT. 26, 1980 
94 STAT. 1289 
29 u s e 1301. 
"Multiemployer 
plan." 
after its termination date under title IV of the Employee Retire-
ment Income Security Act of 1974 if the plan was a multiem-
ployer plan under this subsection for the plan year preceding its 
termination date. 
"(4) TRANSITIONAL RULE.—For any plan year which began 
before the date of the enactment of the Multiemployer Pension 
Plan Amendments Act of 1980, the term 'multiemployer plan' Ante, p. 1208. 
means a plan described in this subsection as in effect immedi-
ately before that date. 
"(5) SPECIAL ELECTION.—Within one year after the date of the 
enactment of the Multiemployer Pension Plan Amendments Act 
of 1980, a multiemployer plan may irrevocably elect, pursuant to 
procedures established by the Pension Benefit Guaranty Corpo-
ration and subject to the provisions of section 4403 Qa) and (c) of 
the Employee Retirement Income Security Act of 1974, that the 
plan shall not be treated as a multiemployer plan for any 
purpose under such Act or this title, if for each of the last 3 plan 
years ending prior to the effective date of the Multiemployer 
Pension Plan Amendments Act of 1980— 
"(A) the plan was not a multiemployer plan because the 
plan was not a plan described in section 3(37)(A)(iii) of the 
Employee Retirement Income Security Act of 1974 and Post, p. 1291. 
section 414(f)(1)(C) (as such provisions were in effect on the 
day before the date of the enactment of the Multiemployer 
Pension Plan Amendments Act of 1980); and 
"(B) the plan had been identified as a plan that was not a 
multiemployer plan in substantially all its filings with the 
Pension Benefit Guaranty Corporation, the Secretary of 
Labor and the Secretary.". 
SEC. 208. RELATED TECHNICAL AMENDMENTS. 
(a) Sections 401(a)(12) and 414(1) are each amended by striking out 
the last sentence and inserting in lieu thereof the following: "The 
preceding sentence does not apply to any multiemployer plan with 
respect to any transaction to the extent that participants either 
before or after the transaction are covered under a multiemployer 
plan to which title IV of the Employee Retirement Income Security 
Act of 1974 applies." 
0^) Subsection (d) of section 4975 is amended— 
(1) by striking out "or" at the end of paragraph (12); 
(2) by striking out the period at the end of paragraph (13) and 
inserting in lieu thereof a semicolon; and 
(3) by inserting after paragraph (13) the following new para-
graphs: 
"(14) any transaction required or permitted under part 1 of 
subtitle E of title IV or section 4223 of the Employee Retirement 
Income Security Act of 1974, but this paragraph shall not apply 
with respect to the application of subsection (c)(1) (E) or (F); or 
"(15) a merger of multiemployer plans, or the transfer of assets 
or liabilities between multiemployer plans, determined by the 
Pension Benefit Guaranty Corporation to meet the requirements 
of section 4231 of such Act, but this paragraph shall not apply 
with respect to the application of subsection (c)(1) (E) or (F). . 
(c) Section 412(a) is amended by adding at the end thereof the 
following new sentence: "In any plan year in which a multiemployer 
plan is in reorganization, the accumulated funding deficiency of the 
plan shall be determined under section 418B.". 
26 u s e 401, 414. 
29 u s e 1301. 
26 u s e 4975. 
Ante, pp. 1217, 
1241. 
Ante, p. 1244. 
26 u s e 412. 
Ante, p. 1274. 
94 STAT. 1290 
PUBLIC LAW 96-364—SEPT. 26, 1980 
26 use 413. 
(d) Section 413(b)(6) is amended by adding at the end thereof the 
following new sentence: "For purposes of this subsection and the last 
26 use 4971. 
sentence of section 4971(a), an employer's withdrawal liability under 
part 1 of subtitle E of title IV of the Employee Retirement Income 
Ante, p. 1217. 
Secudty Act of 1974 shall not be treated as a liability for contribu-
tions under the plan.". 
26 use 40L 
(e) Section 401(aX2), as amended by section 411(b) of this Act, is 
Post, p. 1308. 
amended by inserting ", or the return of any withdrawal liability 
payment determined to be an overpajnnent within 6 months of such 
determination" after "501(a)". 
SEC. 209. W
I
T
H
D
R
A
W
A
L LIABILITY P
A
Y
M
E
N
T FUNDS. 
26 use 501. 
(a) Subsection (c) of section 501 (relating to list of exempt organiza-
tions) is amended by adding at the end thereof the following new 
paragraph: 
"(22) A trust created or organized in the United States and 
established in writing by the plan sponsors of multiemployer 
plans i
f
— 
"(A) the purpose of 
such trust is exclusively— 
"(i) to pay any amount described in section 4223 (c) or 
(h) of the Employee Retirement Income Security Act of 
Ante, p. 1241. 
1974, and 
"(ii) to pay reasonable and necessary administrative 
expenses in connection with the establishment and 
operation of the trust and the processing of claims 
against the trust, 
"(B) no part of the assets of the trust may be used for, or 
diverted to, any purpose other than— 
"(i) the purposes described in subparagraph (A), or 
"(ii) the investment in securities, obligations, or time 
or demand deposits described in clause (ii) of paragraph 
(21)(B), 
"(C) such trust meets the requirements of paragraphs (2), 
(3), and (4) of section 4223(b), 4223(h), or, if applicable, section 
4223(c) of the Employee Retirement Income Security Act of 
1974, and 
"(D) the trust instrument provides that, on dissolution of 
the trust, assets of the trust may not be paid other than to 
plans which have participated in the plan or, in the case of a 
trust established under section 4223(h) of such Act, to plans 
with respect to which employers have participated in the 
fund.". 
26 use 4975. 
(b) Subsection (e) of section 4975 (relating to tax on prohibited 
transactions) is amended by adding at the end thereof the following 
new paragraph: 
"(9) SECTION MADE APPLICABLE TO WITHDRAWAL LIABILITY PAY-
MENT FUNDS.—For purposes of this section— 
"Plan." 
"(A) IN GENERAL.—The term 'plan' includes a trust 
Supra. 
described in section 501(c)(22). 
"(B) DISQUALIFIED PERSON.—In the case of any trust to 
which this section applies by reason of subparagraph (A), the 
term 'disqualified person' includes any person who is a 
disqualified person with respect to any plan to which such 
trust is permitted to make payments under section 4223 of 
Ante, p. 1241. 
the Employee Retirement Income Security Act of 1974.". 
(cXD PSrt VI of subchapter B of chapter 1 (relating to itemized 
deductions for individuals and corporations) is amended by adding at 
the end thereof the following new section: 
PUBLIC LAW 96-364—SEPT. 26, 1980 
94 STAT. 1291 
"SEC. 194. CONTRIBUTIONS TO EMPLOYER LIABILITY TRUSTS. 
26 USC 194. 
"(a) ALLOWANCE OF DEDUCTION.—There shall be allowed as a 
deduction for the taxable year an amount equal to the amount— 
"(1) which is contributed by an employer to a trust described in 
section 501(c)(22) (relating to withdrawal liability payment fund) ^"^^' P- l^^^-
which meets the requirements of section 4223(h) of the Employee 
Retirement Income Security Act of 1974, and 
^^^^^ P- 1241. 
"(2) which is properly allocable to such taxable year. 
"(b) ALLOCATION TO TAXABLE YEAR.—In the case of a contribution 
described in subsection (a) which relates to any specified period of 
time which includes more than one taxable year, the amount prop-
erly allocable to any taxable year in such period shall be determined 
by prorating such amounts to such taxable years under regulations 
prescribed by the Secretary. 
"(c) DISALLOWANCE OF DEDUCTION.—No deduction shall be allowed 
under subsection (a) with respect to any contribution described in 
subsection (a) which does not relate to any specified period of time.". 
(2) The table of sections for such part VI is amended by adding at 
the end thereof the following new item: 
"Sec. 194. Contributions to employer liability trusts.". 
SEC. 210. EFFECTIVE DATE. 
26 USC 418 note. 
(a) Except as otherwise provided in this section, the amendments 
made by this title shall take effect on the date of the enactment of this 
Act. 
(b) Subpart C of part I of subchapter D of chapter 1 of such Code (as 
added by this Act) shall take effect, with respect to each plan, on the ^"<e, p. 1271. 
first day of the first plan year beginning on or after the earlier o
f
— 
(1) the date on which the last collective-bargaining agreement 
providing for employer contributions under the plan, which was 
in effect on the date of the enactment of this Act, expires, without 
regard to extensions agreed to after such date of enactment, or 
(2) 3 years after the date of the enactment of this Act. 
(c) The amendments made by section 209 shall apply to taxable 
years ending after the date of the enactment of this Act. 
TITLE III—AMENDMENTS TO TITLE I OF THE EMPLOYEE 
RETIREMENT INCOME SECURITY ACT OF 1974 
SEC. 301. AMENDMENT OF THE EMPLOYEE RETIREMENT INCOME SECU-
RITY ACT OF 1974. 
Whenever in this title an amendment is expressed in terms of an 
amendment to a section or other provision, the reference is to a 
section or other provision of the Employee Retirement Income 
Security Act of 1974. 
29 USC lOOl 
note. 
SEC. 302. DEFINITION OF MULTIEMPLOYER PLAN. 
(a) Section 3 is amended by striking out paragraph (37) and 29 USC 1002. 
inserting in lieu thereof the following: 
"(37)(A) The term 'multiemployer plan' means a plan— 
"(i) to which more than one employer is required to contribute, 
"(ii) which is maintained pursuant to one or more collective 
bargaining agreements between one or more employee organiza-
tions and more than one employer, and 
"(iii) which satisfies such other requirements as the Secretary 
may prescribe by regulation. 
94 STAT. 1292 
PUBLIC LAW 96-364—SEPT. 26, 1980 
29 u s e 1301. 
"Multiemployer 
plan." 
Ante, p. 1208. 
26 use 1. 
Ante, p. 1288. 
29 u s e 1053. 
Ante, pp. 1257, 
1261. 
Ante, p. 1259. 
"(B) For purposes of this paragraph, all trades or businesses 
(whether or not incorporated) which are under common control 
within the meaning of section 4001(c)(1) are considered a single 
employer. 
"(C) Notwithstanding subparagraph (A), a plan is a multiemployer 
plan on and after its termination date if the plan was a multiem-
ployer plan under this paragraph for the plan year preceding its 
termination date. 
"(D) For purposes of this title, notwithstanding the preceding 
provisions of this paragraph, for any plan year which began before 
the date of the enactment of the Multiemployer Pension Plan 
Amendments Act of 1980, the term 'multiemployer plan' means a 
plan described in section 3(37) of this Act as in effect immediately 
before such date. 
"(E) Within one year after the date of the enactment of the 
Multiemployer Pension Plan Amendments Act of 1980, a multiem-
ployer plan may irrevocably elect, pursuant to procedures established 
by the corporation and subject to the provisions of sections 4403 (b) 
and (c), that the plan shall not be treated as a multiemployer plan for 
all purposes under this Act or the Internal Revenue Code of 1954 if for 
each of the last 3 plan years ending prior to the effective date of the 
Multiemployer Pension Plan Amendments Act of 1980— 
"(i) the plan was not a multiemployer plan because the plan 
was not a plan described in section 3(37)(A)(iii) of this Act and 
section 414(fXl)(C) of the Internal Revenue Code of 1954 (as such 
provisions were in effect on the day before the date of the 
enactment of the Multiemployer Pension Plan Amendments Act 
of 1980); and 
"(ii) the plan had been identified as a plan that was not a 
multiemployer plan in substantially all its filings with the 
corporation, the Secretary of Labor and the Secretary of the 
Treasury.". 
SEC. 303. MINIMUM VESTING REQUIREMENTS. 
Section 203 is amended— 
(1) by inserting after subsection (a)(3)(D) the following new 
subparagraph: 
"(E)(i) A right to an accrued benefit derived from employer contri-
butions under a multiemployer plan shall not be treated as forfeita-
ble solely because the plan provides that benefits accrued as a result 
of service with the participant's employer before the employer had an 
obligation to contribute under the plan may not be payable if the 
employer ceases contributions to the multiemployer plan. 
"(ii) A participant's right to an accrued benefit derived from 
employer contributions under a multiemployer plan shall not be 
treated as forfeitable solely because— 
"(I) the plan is amended to reduce benefits under section 4244A 
or 4281,or 
"(II) benefit payments under the plan may be suspended under 
section 4245 or 4281."; 
(2) in subsection Ot>Xl)(E), by striking out "and"; 
(3) in subsection (b)(1)(F), by striking out the period and 
inserting in lieu thereof "; and"; and 
(4) by inserting after subsection Ob)(l)(F) the following new 
subparagraph: 
"(G) in the case of a multiemployer plan, years of service— 
"(i) with an employer after— 
PUBLIC LAW 96-364—SEPT. 26, 1980 
94 STAT. 1293 
"(I) a complete withdrawal of such employer from the 
plan (within the meaning of section 4203), or 
"(II) to the extent permitted by regulations prescribed 
by the Secretary of the Treasury, a partial withdrawal 
described in section 4205(b)(2)(A)(i) in connection with 
the decertification of the collective bargaining repre-
sentative; and 
"(ii) with any employer under the plan after the termina-
tion date of the plan under section 4048.". 
SEC. 304. MINIMUM FUNDING REQUIREMENTS. 
(a) Section 301 is amended by adding at the end thereof the 
following new subsections: 
"(c) This part applies, with respect to a terminated multiemployer 
plan to which section 4021 applies, until the last day of the plan year 
in which the plan terminates, within the meaning of section 
4041A(a)(2). 
"(d) Any amount of any financial assistance from the Pension 
Benefit Guaranty Corporation to any plan, and any repayment of 
such amount, shall be taken into account under this section in such 
manner as determined by the Secretary of the Treasury.", 
(b) Section 302 is amended— 
(1) in subsection (b), by striking out "(40 plan years in the case 
of a multiemployer plan)" and "(20 plan years in the case of a 
multiemployer plan)" each place they appear; 
(2) by inserting at the end of subsection (b) the following new 
paragraphs: 
"(6) In the case of a plan which, immediately before the date of the 
enactment of the Multiemployer Pension Plan Amendments Act of 
1980, was a multiemployer plan (within the meaning of section 3(37) 
as in effect immediately before such date)— 
"(A) any amount described in paragraph (2)(B)(ii), (2)(B)(iii), or 
(3)(B)(i) of this subsection which arose in a plan year beginning 
before such date shall be amortized in equal annual installments 
(until fully amortized) over 40 plan years, beginning with the 
plan year in which the amount arose; 
"(B) any amount described in paragraph (2)(B)(iv) or (3)(B)(ii) of 
this subsection which arose in a plan year beginning before such 
date shall be amortized in equal annual installments (until fully 
amortized) over 20 plan years, beginning with the plan year in 
which the amount arose; 
"(C) any change in past service liability which arises during 
the period of 3 plan years beginning on or after such date, and 
results from a plan amendment adopted before such date, shall 
be amortized in equal annual installments (until fully amortized) 
over 40 plan years, beginning with the plan year in which the 
change arises; and 
"(D) any change in past service liability which arises during 
the period of 2 plan years beginning on or after such date, and 
results from the changing of a group of participants from one 
benefit level to another benefit level under a schedule of plan 
benefits which— 
"(i) was adopted before such date, and 
"(ii) was effective for any plan participant before the 
beginning of the first plan year beginning on or after such 
date, 
Ante, p. 1218. 
Ante, p. 1221. 
29 use 1348. 
29 use 1081. 
29 use 1321. 
Ante, p. 1216. 
29 use 1082. 
Ante, p. 1208. 
Ante, p. 1291. 
94 STAT. 1294 
PUBLIC LAW 96-364—SEPT. 26, 1980 
shall be amortized in equal annual installments (until fully 
amortized) over 40 plan years, beginning with the plan year in 
which the increase arises. 
"(7) For purposes of this part— 
"(A) Any amount received by a multiemployer plan in pay-
ment of all or part of an employer's withdrawal liability under 
Ante, p. 1217. 
part 1 of subtitle E of title IV shsdl be considered £in amount 
contributed by the employer to or under the plan. The Secretary 
of the Treasury may prescribe by regulation additional charges 
and credits to a multiemployer plan's funding standard account 
to the extent necessary to prevent withdrawal liability pay-
ments from being unduly reflected as advance funding for plan 
liabilities. 
"(B) If a plan is not in reorganization in the plan year but was 
in reorganization in the immediately preceding plan year, any 
balance in the funding standard account at the close of such 
immediately preceding plan year— 
"(i) shall be eliminated by an offsetting credit or charge (as 
the case may be), but 
"(ii) shall be taken into account in subsequent plan years 
by being amortized in equal annual installments (until fully 
amortized) over 30 plan years. 
The preceding sentence shall not apply to the extent of any 
accumulated funding deficiency under section 418B(a) of the 
Ante, p. 1274. 
Internal Revenue Code of 1954 as of the end of the last plan year 
that the plan was in reorganization. 
"(C) Any amount paid by a plan during a plan year to the 
Ante, p. 1240. 
Pension Benefit Guaranty Corporation pursuant to section 4222 
Ante, p. 1290. 
Or to a fund exempt under section 501(cX22) of such Code 
Ante, p. 1241. 
pursuant to section 4223 shall reduce the amount of contribu-
tions considered received by the plan for the plan year. 
"(D) Any sunount paid by an employer pending a final determi-
nation of the employer's withdrawal liability under part 1 of 
subtitle E of title IV and subsequently refunded to the employer 
by the plan shall be charged to the funding standard account in 
accordance with regulations prescribed by the Secretary. 
"(E) For purposes of the full funding limitation under subsec-
tion (cX7), unless otherwise provided by the plan, the accrued 
liability under a multiemployer plan shall not include benefits 
which are not nonforfeitable under the plan after the termina-
tion of the plan (taking into consideration section 411(dX3) of the 
2
6 use 411. 
Internal Revenue Code of 1954)."; and 
(3) by adding at the end of subsection (a) the following new 
paragraph: 
"(3) In any plan year in which a multiemployer plan is in reorgani-
zation, the accumulated funding deficiency of the plan shall be 
Ante, p. 1252. 
determined under section 4243.". 
SEC. 305. APPLICATION OF INTERESTED P
A
R
T
Y RULES TO W
I
T
H
D
R
A
W
A
L 
LIABILITY P
A
Y
M
E
N
T FUNDS. 
2
9 use 1002. 
Paragraph (14) of section 3 is amended by adding at the end thereof 
the following new sentence: "Any person who is a party in interest 
with respect to a plan to which a trust described in section 501(cX22) 
Ante, p. 1290. 
of the Internal Revenue Code of 1954 is permitted to make payments 
Ante, p. 1241. 
under section 4223 shall be treated as a party in interest with respect 
to such trust.". 
PUBLIC LAW 96-364—SEPT. 26, 1980 
94 STAT. 1295 
SEC. 306. LIQUIDATED DAMAGES W
I
T
H RESPECT TO DELINQUENT CON-
TRIBUTIONS. 
(a) Part 5 of subtitle B of title I is amended by adding after section 
514 the following new section: 
"DELINQUENT CONTRIBUTIONS 
"SEC. 515. Every employer who is obligated to make contributions 29 use 1145. 
to a multiemployer plan under the terms of the plan or under the 
terms of a collectively bargained agreement shall, to the extent not 
inconsistent with law, make such contributions in accordance with 
the terms and conditions of such plan or such agreement.". 
(b) Section 502 is amended by— 
29 use 1132. ^•'^ 
(1) redesignating subsection (b) (1) and (2) as subsection (b)(1) 
(A) and (B), and adding at the end thereof the following new 
paragraph: 
"(2) The Secretary shall not initiate an action to enforce section 
515."; 
(2) redesignating subsection (g) as paragraph (1) of such subsec-
tion and inserting "(other than an action described in paragraph 
(2))" between "title" and "by" in such redesignated paragraph 
(1), and adding at the end thereof the following new paragraph: 
"(2) In any action under this title by a fiduciary for or on behalf of a 
plan to enforce section 515 in which a judgment in favor of the plan is 
awarded, the court shall award the plan— 
"(A) the unpaid contributions, 
"(B) interest on the unpaid contributions, 
"(C) an amount equal to the greater of— 
"(i) interest on the unpaid contributions, or 
"(ii) liquidated damages provided for under the plan in an 
amount not in excess of 20 percent (or such higher percent-
age as may be permitted under Federal or State law) of the 
amount determined by the court under subparagraph (A), 
"(D) reasonable attorney's fees and costs of the action, to be 
paid by the defendant, and 
"(E) such other legal or equitable relief as the court deems 
appropriate. 
For purposes of this paragraph, interest on unpaid contributions 
shall be determined by using the rate provided under the plan, or, if 
none, the rate prescribed under section 6621 of the Internal Revenue 
Code of 1954.". 
26 use 6621. 
SEC. 307. ACTUARIAL STANDARDS. 
Section 103(d) is amended by redesignating paragraphs (10) and (11) 29 use 1023. 
as paragraphs (11) and (12) and by adding after paragraph (9) the 
following new paragraph: 
"(10) A statement by the actuary which discloses— 
"(A) any event which the actuary has not taken into 
account, and 
"(B) any trend which, for purposes of the actuarial as-
sumptions used, was not assumed to continue in the future, 
but only if, to the best of the actuary's knowledge, such event or 
trend may require a material increase in plan costs or required 
contribution rates.". 
SEC. 308. EXEMPTIONS FROM PROHIBITED TRANSACTIONS. 
(a) Section 408(b) is amended by adding at the end thereof the 29 use 1108. 
following: 
79-194 O—81—pt. 1 
85 : QL3 
94 STAT. 1296 
PUBLIC LAW 96-364—SEPT. 26, 1980 
Ante, p. 1217. 
Ante, p. 1244. 
29 u s e 1108. 
29 u s e 1106. 
29 u s e 1104. 
29 u s e 1103. 
29 u s e 1001 
note. 
29 u s e 1301. 
"Multiemployer 
plan." 
Ante, p. 1208. 
Ante, p. 1288. 
"(10) Any transaction required or permitted under part 1 of 
subtitle E of title IV. 
"(11) A merger of multiemployer plans, or the transfer of 
assets or liabilities between multiemployer plans, determined by 
the Pension Benefit Guaranty Corporation to meet the require-
ments of section 4231.". 
(h) Section 408 is amended by adding at the end thereof the 
following new subsection: 
"(f) Section 40603)(2) shall not apply to any merger or transfer 
described in subsection 03)(11).". 
SEC. 309. FIDUCIARY DUTIES. 
Section 404(a)(1)(D) is amended by inserting "or title IV" after "this 
title". 
SEC. 310. REFUND OF CERTAIN WITHDRAWAL LIABILITY PAYMENTS. 
Section 403(c) is amended— 
(1) by striking out "or (3)" in paragraph (1) and inserting in lieu 
thereof ",(3), or (4)"; and 
(2) by adding at the end thereof the following new paragraph: 
"(4) In the case of a withdrawal liability payment which has been 
determined to be an overpayment, paragraph (1) shall not prohibit 
the return of such payment to the employer within 6 months after the 
date of such determination.". 
TITLE IV—MISCELLANEOUS PROVISIONS 
SEC. 401. AMENDMENT OF THE EMPLOYEE RETIREMENT INCOME SECU-
RITY ACT OF 1974. 
Whenever in this title an amendment is expressed in terms of an 
amendment to a section or other provision, the reference is to a 
section or other provision of the Employee Retirement Income 
Security Act of 1974. 
SEC. 402. RELATED TECHNICAL AMENDMENTS. 
(a)(1) Section 4001 is amended— 
(A) in subsection (a)(2), by inserting "(other than a multiem-
ployer plan)" after "more than one employer"; 
(B) by striking out subsection (a)(3) and inserting in lieu thereof 
the following: 
"(3) 'multiemployer plan' means a plan— 
"(A) to which more than one employer is required to 
contribute, 
"(B) which is maintained pursuant to one or more collec-
tive bargaining agreements between one or more employee 
organizations and more than one employer, and 
"(C) which satisfies such other requirements as the Secre-
tary of Labor may prescribe by regulation, 
except that, in applying this paragraph— 
"(i) a plan shall be considered a multiemployer plan on 
and after its termination date if the plan was a multiem-
ployer plan under this paragraph for the plan year preced-
ing such termination, and 
"(ii) for any plan year which began before the date of the 
enactment of the Multiemployer Pension Plan Amendments 
Act of 1980, the term 'multiemployer plan* means a plan 
described in section 414(f) of the Internal Revenue Code of 
1954 as in effect immediately before such date;"; 
iq-^-W 
PUBLIC LAW 96-364—SEPT. 26, 1980 
94 STAT. 1297 
(C) by striking out subsection (aX6) and inserting in lieu thereof 
the following: 
"(6) 'basic benefits' means benefits guaranteed under section 
4022 (other than under section 4022(c)), or under section 4022A 
(other than under section 4022A(g));"; 
(D) in subsection (aX7), by striking out the period and inserting 
in lieu thereof "or 4022A(g);"; 
(E) by inserting at the end of subsection (a) the following new 
paragraphs: 
"(8) 'nonforfeitable benefit' means, with respect to a plan, a 
benefit for which a participant has satisfied the conditions for 
entitlement under the plan or the requirements of this Act (other 
than submission of a formal application, retirement, completion 
of a required waiting period, or death in the case of a benefit 
which returns all or a portion of a participant's accumulated 
mandatory employee contributions upon the participant's 
death), whether or not the benefit may subsequently be reduced 
or suspended by a plan amendment, an occurrence of any 
condition, or operation of this Act or the Internal Revenue Code 
of1954; 
"(9) 'reorganization index' means the amount determined 
under section 4241(b); 
"(10) 'plan sponsor' means, with respect to a multiemployer 
plan— 
"(A) the plan's joint board of trustees, or 
"(B) if the plan has no joint board of trustees, the plan 
administrator; 
"(11) 'contribution base unit* means a unit with respect to 
which an employer has an obligation to contribute under a 
multiemployer plan, as defined in regulations prescribed by the 
Secretary of the Treasurjr; and 
"(12) outstanding claim for withdrawal liability' means a 
plan's claim for the unpaid balance of the liability deter-
mined under part 1 of subtitle E for which demand has been 
made, valued in accordance with regulations prescribed by the 
corporation."; 
(F) by adding the following new paragraphs at the end of 
subsection (cXD (as redesignated): 
"(2) For purposes of this title, 'single-employer plan' means, except 
as otherwise specifically provided in this title, any plan which is not a 
multiemployer plan. 
"(3) For purposes of this title, except as otherwise provided in this 
title, contributions or other pemnents shall be considered made 
under a plan for a plan year if they are made within the period 
prescribed under section 412(cX10) of the Internal Revenue Code of 
1954. 
"(4) For purposes of subtitle E, 'Secretary of the Treasury' means 
the Secretly of 
the Treasury or such Secretary's delegate.". 
(2) Section 4003 is amended— 
(A) in subsection (a), by striking out "determine whether any 
person has violated or is about to violate" and inserting in lieu 
thereof "enforce"; 
(B) in subsection (eXD, by striking out "redress violations of 
and inserting in lieu thereof "enforce", and 
(C) in subsection (f) by inserting at the end thereof the follow-
ing new sentence: "In any suit, action, or proceeding in which the 
corporation is a party, or intervenes under section 4301, in any 
State court, the corporation may, without bond or security. 
"Basic benefits; 
29 u s e 1322. 
Ante, p. 1210. 
Definitions. 
2
6 use 1. 
Ante, p. 1249. 
Ante, p. 1217. 
"Single-
employer plan.' 
26 u s e 412. 
"Secretary of the 
Treasury.' 
Ante, p. 1217. 
29 u s e 1303. 
Ante, p. 1263. 
94 STAT. 1298 
PUBLIC LAW 96-364—SEPT. 26, 1980 
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." 
29 use 1307. 
(3) Section 4007(a) is amended by inserting at the end thereof the 
following new sentence: "The corporation may waive or reduce 
premiums for a multiemployer plan for any plan year during which 
such plan receives financial assistance from the corporation under 
Ante, p. 1261. 
section 4261, except that any amount so waived or reduced shall be 
treated as financial assistance under such section.". 
29 use 1321. 
(4) Section 4021(a) is amended by inserting in the last sentence 
"unless otherwise specifically indicated in this title," before "a 
successor plan". 
(5) Subtitle B of title IV is amended by inserting after section 4022B 
(as added by section 102 of this Act) the following new section: 
"PLAN FIDUCIARIES 
29 use 1323. 
"SEC. 4023. Notwithstanding any other provision of this Act, a 
29 use 1321. 
fiduciary of a plan to which section 4021 applies is not in violation of 
the fiduciary's duties as a result of any act or of any withholding of 
action required by this title.". 
29 use 1342. 
(6) Section 4042 is amended— 
(A) in the last sentence of subsection (a), by striking out "such 
small" and inserting in lieu thereof "terminated"; 
(B) by redesignating subsection O
t
>
) as subsection (b)(1) and 
inserting at the end thereof the following new paragraphs: 
"(2) Notwithstanding any other provision of this title— 
"(A) upon the petition of a plan administrator or the corpora-
tion, the appropriate United States district court may appoint a 
trustee in accordance with the provisions of this section if the 
interests of the plan participants would be better served by the 
appointment of the trustee, and 
(B) upon the petition of the corporation, the appropriate 
United States district court shall appoint a trustee proposed by 
the corporation for a multiemployer plan which is in reorganiza-
Ante, p. 1216. 
tion or to which section 4041A(d) applies, unless such appoint-
ment would be adverse to the interests of the plan participants 
and beneficiaries in the aggregate. 
"(3) The corporation and plan administrator may agree to the 
appointment of a trustee without proceeding in accordance with the 
requirements of paragraphs (1) and (2)."; 
(C) in the first sentence of subsection (c), by striking out "and" 
after "interests of the participants" and inserting in lieu thereof 
"or"; 
(D) in subsection (c), by striking out "further" each place it 
appears and inserting in lieu thereof "unreasonable"; 
(E) in subsection (d)(1)(A)— 
(i) by striking out "and" in clause (iv); 
(ii) by redesignating clause (v) as clause (vi) and by striking 
out the period at the end of such clause and inserting in lieu 
thereof "; and"; 
(iii) by inserting after clause (iv) the following new clause: 
"(v) in the case of a multiemployer plan, to reduce benefits or 
suspend benefit payments under the plan, give appropriate 
notices, amend the plan, and perform other acts required or 
Ante, p. 1217. 
authorized by subtitle (E) to be performed by the plan sponsor or 
administrator;"; and 
PUBLIC LAW 96-364—SEPT. 26, 1980 
94 STAT. 1299 
(iv) by inserting after clause (vi) (as redesignated) the 
following new clause: 
"(vii) to require the plan sponsor, the plan administrator, any 
contributing or withdrawn employer, and any employee organi-
zation representing plan participants to furnish any information 
with respect to the plan which the trustee may reasonably need 
in order to administer the plan."; 
(F) in subsection (d)(l)(B)(i), by striking out "allocation require-
ments of section 4044" and inserting in lieu thereof "require- 29 use 1344. 
ments of this title"; 
(G) in subsection (dXl)(B)(iv), by striking out ", except to the 
extent that the corporation is an adverse party in a suit or 
proceeding"; 
(H) in subsection (d)(2)(B), by striking out "and"; 
(I) in subsection (d)(2)(C), by striking out the period and 
inserting in lieu thereof a comma; and 
(J) by inserting after subsection (d)(2)(C) the following new 
subparagraphs; 
"(D) each employer who is or may be liable to the plan under 
section part 1 of subtitle E, 
Ante, p. 1217. 
"(E) each employer who h£is an obligation to contribute, within 
the meaning of section 4212(a), under a multiemployer plan, and Ante, p. 1233. 
"(F) each employee organization which, for purposes of collec-
tive bargaining, represents plan participants employed by an 
employer described in subparagraph (C), (D), or (E).'. 
(7) Section 4044 is amended— 
29 use 1344. 
(A) in subsection (a), by inserting "single-employer" before 
"defined benefit plan"; 
(B) in subsection (c), by inserting "single-employer" before 
"plan occurring during" and before "plan occurring after"; and 
(C) in subsection (d)(1), by inserting "single-employer" before 
"plan may be distributed". 
(8) Section 4048 is amended— 
29 use 1348. 
(A) by inserting "(a)" before "For"; 
(B) by inserting "of a single-employer plan" after "date of 
termination"; and 
(C) by adding at the end thereof the following new subsection: 
"(b) For purposes of this title, the date of termination of a 
multiemployer plan is— 
"(1) in the case of a plan terminated in accordance with the 
provisions of section 4041A, the date determined under subsec- Ante, p. 1216. 
tion (b) of that section; or 
"(2) in the case of a plan terminated in accordance with the 
provisions of section 4042, the date agreed to between the plan 29 use 1342. 
administrator and the corporation (or the trustee appointed 
under section 4042(b)(2), if any), or, if no agreement is reached, 
the date established by the court.". 
(b)(1) Section 208 is amended by striking out the last sentence and 29 use 1058. 
inserting in lieu thereof the following: "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 title IV of this Act applies.". 
29 use 1301. 
(2) Section 403(a)(1) is amended by striking out "title" and inserting 29 use 1103. 
in lieu thereof "Act". 
(3) Section 3002 is amended by adding at the end thereof the 29 use 1202. 
following new subsection: 
"(e) The Secretary of the Treasury shall consult with the Pension Consultation. 
Benefit Guaranty Corporation with respect to any proposed or final 
94 STAT. 1300 
PUBLIC LAW 96-364—SEPT. 26, 1980 
regulation authorized by subpart C of part I of subchapter D of 
Ante, p. 1271. 
chapter 1 of the Internal Revenue Code of 1954, or by sections 4241 
Ante, p. 1249. 
through 4245 of this Act, before publishing any such proposed or final 
regulation.". 
SEC. 403. CONFORMING AMENDMENTS. 
29 use 1305. 
(a) Section 4005 is amended— 
(1) by striking out the second sentence of subsection (a) and 
inserting in lieu thereof the following: "One of the funds shall be 
used with respect to basic benefits guaranteed under section 
29 use 1322. 
4022, one of the funds shall be used with respect to basic benefits 
Ante, p. 1210. 
guaranteed under section 4022A, one of the funds shall be used 
with respect to nonbasic benefits guaranteed under section 4022 
(if any), and the remaining fund shall be used with respect to 
nonbasic benefits guaranteed under section 4022A (if any), other 
than subsection (gX2) thereof (if any)."; 
(2) in subsection (bX2XA\ by inserting "or 4022A" after "4022"; 
(3) by striking out subparagraph (B) of subsection (b)(2) and 
redesignating subparagraphs (C), (D), and (E) as subparagraphs 
(B), (C), and (D), respectively; and 
(4) by adding at the end thereof the following new subsections: 
"(d)(1) A fifth fund shall be established for the reimbursement of 
uncollectible withdrawal liability under section 4222, and shall be 
credited with the appropriate— 
"(A) premiums, penalties, and interest charges collected under 
this title, and 
"(B) earnings on investments of the fund or on assets credited 
to the fund. 
The fund shall be available to make payments pursuant to the 
supplemental program established under section 4222, including 
those expenses and other charges determined to be appropriate by 
the corporation. 
"(2) The corporation may invest amounts of the fund in such 
obligations as the corporation considers appropriate. 
"(eXD A sixth fund shall be established for the supplemental 
benefit guarantee program provided under section 4022A(g)(2). 
"(2) Such fund shall be credited with the appropriate— 
"(A) premiums, penalties, and interest charges collected under 
section 4022A(gX2), and 
"(B) earnings on investments of the fund or on assets credited 
to the fund. 
The fund shall be available for making payments pursuant to the 
supplemental benefit guarantee program established under section 
4022A(gX2), including those expenses and other charges determined 
to be appropriate by the corporation. 
"(3) The corporation may invest amounts of the fund in such 
obligations as the corporation considers appropriate. 
"(fKD Amounts in any fund established under this section may be 
used only for the purposes for which such fund was established and 
may not be used to make loans to (or on behalf of) any other fund or to 
finance any other activity of the corporation. 
"(2) None of the funds borrowed under subsection (c) may be used to 
make loans to (or on behalf of) any fund other than a fund described 
in the second sentence of subsection (a). 
"(3) Any repayment to the corporation of any amount paid out of 
any fund in connection with a multiemployer plan shall be deposited 
in such fund.". 
29 use 1307. 
(b) Section 4007(a) is amended by striking out the second sentence. 
PUBLIC LAW 96-364—SEPT. 26, 1980 
94 STAT. 1301 
(c) Section 4022 is amended— 
29 use 1322. 
(1) in the section heading, by inserting "SINGLE-EMPLOYER 
PLAN" before "BENEFITS GUARANTEED"; 
(2) in subsection (a)— 
(A) by inserting ", in accordance with this section," after 
"guarantee"; and 
(B) by inserting "single-employer" before "plan which 
terminates"; and 
(C) by striking out the words "the terms of; 
(3) in subsection Ot))(l), by striking out "(8)" and inserting in 
lieu thereof "(7)"; and 
(4) by striking out paragraph (5) of subsection 0)) and redesig-
nating paragraphs (6), (7), and (8) of such subsection as para-
graphs (5), (6), and (7), respectively. 
(d) Section 4041 is amended— 
29 use I34i. 
(1) in the section heading, by striking out "TERMINATION BY 
PLAN ADMINISTRATOR" and inserting in lieu thereof "TER-
MINATION OF SINGLE-EMPLOYER PLANS"; 
(2) in subsection (a), by inserting "single-employer" after 
"termination of a"; and 
(3) by striking out subsection (g). 
(e) Section 4046 is amended— 
29 use 1346. 
(1) in paragraphs (2) and (3)— 
(A) by inserting "or 4022A" after "4022"; and 
(B) by inserting "basic" before "benefits"; and 
(2) in paragraph (3), by striking out "4022(b)(5)" and inserting 
in lieu thereof "4022B". 
(f) Section 4061 is amended to read as follows: 
"AMOUNTS PAYABLE BY THE CORPORATION 
"SEC. 4061. The corporation shall pay benefits under a single- 29 use I36i. 
employer plan terminated under this title subject to the limitations 
and requirements of subtitle B of this title. The corporation shall 29 use I32i. 
provide financial assistance to pay benefits under a multiemployer 
plan which is insolvent under section 4245 or 4281(d)(2)(A), subject to Ante, pp. 1259, 
the limitations and requirements of subtitles B, C, and E of this title, og^usc 1321 
Amounts guaranteed by the corporation under sections 4022 and 134^ ^nte, p. 
4022A shall be paid by the corporation only out of the appropriate 1217' 
fund. The corporation shall make payments under the supplemental Ante, p. 1210. 
program to reimburse multiemployer plans for uncollectible with-
drawal liability only out of the fund established under section 
4005(e).". 
Ante, p. 1300. 
(g) Section 4062(a) is amended by striking out "plan (other than a 29 use 1362. 
multiemployer plan)" and inserting in lieu thereof "single-employer 
plan", 
(h) Section 4063 is amended— 
29 use 1363. 
(1) in the first sentence of subsection (a), by inserting "(other 
than a multiemployer plan)" after "makes contributions"; and 
(2) in the second sentence of subsection (d), by inserting "(other 
than a multiemployer plan)" after "of a plan". 
(i) Section 4064(a) is amended by inserting "(other than a multiem- 29 use 1364. 
ployer plan)" after "plan under which more than one employer 
makes contributions". 
0') Section 4066 is amended by inserting "(other than a multiem- 29 use 1366. 
ployer plan)" after "more than one employer". 
94 STAT. 1302 
PUBLIC LAW 96-364—SEPT. 26, 1980 
2
9 use 1303. 
(k) Subsection (f) of section 4003 is amended by striking out "Any" 
and inserting in lieu thereof "Except as provided in section 4301(a)(2), 
any". 
2
9 use 1302. 
(1) Section 4002(b)(3) is amended by inserting "and such other 
bylaws, rules, and regulations as may be necessary to carry out the 
purposes of this title" after "Act". 
SEC. 404. CLERICAL A
M
E
N
D
M
E
N
T
S
. 
The table of contents in section 1 is amended— 
(1) by striking out the items relating to sections 4022 and 4023 
and inserting in lieu thereof the following new items: 
"Sec. 4022. Single-employer plan benefits guaranteed. 
"Sec. 4022A. Multiemployer plan benefits guaranteed. 
"Sec. 4022B. Aggregate limit on benefits guaranteed. 
"Sec. 4023. Plan fiduciaries."; 
(2) by striking out the item relating to section 4041 and 
inserting in lieu thereof the following new items: 
"Sec. 4041. Termination of single-employer plans. 
"Sec. 4041A. Termination of multiemployer plans."; 
and 
(3) by striking out all after the item relating to section 4068 and 
inserting in lieu thereof the following new items: 
"Subtitle E—Special Provisions for Multiemployer Plans 
"PART 1—EMPLOYER WITHDRAWALS 
"Sec. 4201. Withdrawal liability established. 
"Sec. 4202. Determination and collection of liability; notification of employer. 
"Sec. 4203. Complete withdrawal. 
"Sec. 4204. Sale of assets. 
, „^,., 
"Sec. 4205. Partial withdrawals. 
~ ' o.f. 
"Sec. 4206. Adjustment for partial withdrawal. 
"Sec. 4207. Reduction or waiver of complete withdrawal liability. 
"Sec. 4208. Reduction or abatement of partial withdrawal liability. 
"Sec. 4209. De minimis rule. 
"Sec. 4210. No withdrawal liability for certain temporary contribution obligation 
periods. 
"Sec. 4211. Methods for computing withdrawal liability. 
"Sec. 4212. Obligation to contribute; special rules. 
"Sec. 4213. Actuarial assumptions, etc. 
"Sec. 4214. Application of plan amendments. 
"Sec. 4215. Plan notification to corporation of potentially significant withdrawals. 
"Sec. 4216. Special rules for section 404(c) plans. 
"Sec. 4217. Application of part in case of certain pre-1980 withdrawals. 
"Sec. 4218. Withdrawal not to occur merely because of change in business form or 
suspension of contributions during labor dispute. 
"Sec. 4219. Notice, collection, etc., of withdrawal liability. 
"Sec. 4220. Approval of amendments. 
"Sec. 4221. Resolution of disputes. 
"Sec. 4222. Reimbursements for uncollectible withdrawal liability. 
"Sec. 4223. Withdrawal liability payment fund. 
"Sec. 4224. Alternative method of withdrawal liability payments. 
"Sec. 4225. Limitation on withdrawal liability. 
"PART 2—MERGER OR TRANSFER OF PLAN ASSETS OR LIABILITIES 
"Sec. 4231. Mergers and transfers between multiemployer plans. 
"Sec. 4232. Transfers between a multiemployer plan and a single-employer plan. 
"Sec. 4233. Partition. 
"Sec. 4234. Asset transfer rules. 
"Sec. 4235. Transfers pursuant to change in bargaining representative. — t, 
• '-'I 
PUBLIC LAW 96-364—SEPT. 26, 1980 
94 STAT. 1303 
"PART 8—REORGANIZATION; MINIMUM CONTRIBUTION REQUIREMENT FOR 
MULTIEMPLOYER PLANS 
"Sec. 4241. Reorganization status. 
"Sec. 4242. Notice of reorganization and funding requirements. 
"Sec. 4243. Minimum contribution requirement. 
"Sec. 4244. Overburden credit against minimum contribution requirement. 
"Sec. 4244A. Adjustments in accrued benefits. 
"Sec. 4245. Insolvent plans. 
"PART 4—FINANCIAL ASSISTANCE 
"Sec. 4261. Financial assistance. 
"PART 5—BENEFITS AFTER TERMINATION 
"Sec. 4281. Benefits under certain terminated plans. 
"PART 6—ENFORCEMENT 
"Sec. 4301. Civil actions. 
"Sec. 4302. Penalty for failure to provide notice. 
"Sec. 4303. Election of plan status. 
"Subtitle F—Transition Rules and Effective Dates 
"Sec. 4401. Amendment to Internal Revenue Code of 1954. 
"Sec. 4402. Transition rules and effective dates. 
"Sec. 4403. Election of plan status.". 
SEC. 405. ACTION TAKEN BEFORE REGULATIONS ARE PRESCRIBED. 
(a) Except as otherwise provided in the amendments made by this 
Act and in subsection Qj), if the way in which any such amendment 
will apply to a particular circumstance is to be set forth in regula-
tions, any reasonable action during the period before such regula-
tions take effect shall be treated as complying with such regulations 
for such period. 
O
b
) Subsection (a) shall not apply to any action which violates any 
instruction issued, or temporary rule prescribed, by the agency 
having jurisdiction but only if such instruction or rule was published, 
or furnished to the party taking the action, before such action was 
taken. 
SEC. 406. PENSION BENEFIT GUARANTY CORPORATION PUT ON BUDGET. 
(a) Paragraph (2) of section 4002(g) is amended to read as follows: 
"(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.". 
(b) The amendment made by subsection (a) shall apply to fiscal 
years beginning after September 30,1980. 
SEC. 407. CHURCH PLANS. 
.«ic;'»ai! 
29 use 1461 
note. 
29 use 1302. 
Effective date. 
29 use 1302 
note. 
29 use 1002. 
(a) Section 3(33) is amended to read as follows: 
"(33)(A) The term 'church plan' means a plan established and "Church plan.' 
maintained (to the extent required in clause (ii) of subparagraph (B)) 
for its employees (or their beneficiaries) by a church or by a conven-
tion or association of churches which is exempt from tax under 
section 501 of the Internal Revenue Code of 1954. 
26 use 50i. 
"(B) The term 'church plan' does not include a plan— 
"(i) which is established and maintained primarily for the 
benefit of employees (or their beneficiaries) of such church or 
convention or association of churches who are employed in 
94 STAT. 1304 
PUBLIC LAW 96-364—SEPT. 26, 1980 
connection with one or more unrelated trades or businesses 
(within the meaning of section 513 of the Internal Revenue Code 
26 use 513. 
of 1954), or 
"(ii) if less than substantially all of the individuals included in 
the plan are individuals described in subparagraph (A) or in 
clause (ii) of subpars^aph (C) (or their beneficiaries). 
"(C) For purposes of this paragraph— 
"(i) A plan established and maintained for its employees (or 
their beneficiaries) by a church or by a convention or association 
of churches includes a plan maintained by an organization, 
whether a civil law corporation or otherwise, the principal 
purpose or function of which is the administration or funding of a 
plan or program for the provision of retirement benefits or 
welfare benefits, or both, for the employees of a church or a 
convention or association of churches, if such organization is 
controlled by or associated with a church or a convention or 
association of churches. 
"(ii) The term employee of a church or a convention or 
association of churches includes— 
"(I) a duly ordained, commissioned, or licensed minister of 
a church in the exercise of his ministry, regardless of the 
source of his compensation; 
"(II) an employee of an organization, whether a civil law 
corporation or otherwise, which is exempt from tax under 
26 use 501. 
section 501 of the Internal Revenue Code of 1954 and which 
is controlled by or associated with a church or a convention 
or association of churches; and 
"(III) an individual described in clause (v). 
"(iii) A church or a convention or association of churches which 
is exempt from tax under section 501 of the Internal Revenue 
Code of 1954 shall be deemed the employer of any individual 
included as an employee under clause (ii). 
"(iv) An organization, whether a civil law corporation or 
otherwise, is associated with a church or a convention or associ-
ation of churches if it shares common religious bonds and 
convictions with that church or convention or association of 
churches. 
"(v) If an employee who is included in a church plan separates 
from the service of a church or a convention or association of 
churches or an organization, whether a civil law corporation or 
otherwise, which is exempt from tax under section 501 of the 
Internal Revenue Code of 1954 and which is controlled by or 
associated with a church or a convention or association of 
churches, the church plan shall not fail to meet the requirements 
of this paragraph merely because the plan— 
(I) retains the employee's accrued benefit or account for 
the pa3nnent of benefits to the employee or his beneficiaries 
pursuant to the terms of the plan; or 
"(II) receives contributions on the employee's behalf after 
the employee's separation from such service, but only for a 
period of 5 years after such separation, unless the employee 
is disabled (within the meaning of the disability provisions of 
the church plan or, if there are no such provisions in the 
church plan, within the meaning of section 72(m)(7) of the 
26 use 72. 
Internal Revenue Code of 1954) at the time of such separa-
tion from service. 
"(D)(i) If a plan established and maintained for its employees (or 
their beneficiaries) by a church or by a convention or association of 
PUBLIC LAW 96-364—SEPT. 26, 1980 
94 STAT. 1305 
churches which is exempt from tax under section 501 of the Internal 
Revenue Code of 1954 fails to meet one or more of the requirements of 26 use 501. 
this paragraph and corrects its failure to meet such requirements 
within the correction period, the plan shall be deemed to meet the 
requirements of this paragraph for the year in which the correction 
was made and for all prior years. 
; 
"(ii) If a correction is not made within the correction period, the 
plan shall be deemed not to meet the requirements of this paragraph 
beginning with the date on which the earliest failure to meet one or 
more of such requirements occurred. 
"(iii) For purposes of this subparagraph, the term 'correction "Correction 
period' means— 
P«"°^-
"(I) the period ending 270 days after the date of mailing by the 
Secretary of a notice of default with respect to the plan's failure 
to meet one or more of the requirements of this paragraph; or 
"(II) any period set by a court of competent jurisdiction after a 
final determination that the plan fails to meet such require-
ments, or, if the court does not specify such period, any reason-
able period determined by the Secretary on the basis of all the 
facts and circumstances, but in any event not less than 270 days 
after the determination has become final; or 
"(III) any additional period which the Secretary determines is 
reasonable or necessary for the correction of the default, 
whichever has the latest ending date.". 
(b) Section 414(e) of the Internal Revenue Code of 1954 (defining 26 use 414. 
church plan) is amended to read as follows: 
"(e) CHURCH PLAN.— 
"(1) IN GENERAL.—For purposes of this part, the term 'church 
plan' means a plan established and maintained (to the extent 
required in paragraph (2)(B)) for its employees (or their benefici-
aries) by a church or by a convention or association of churches 
which is exempt from tax under section 501. 
"(2) CERTAIN PLANS EXCLUDED.—The term 'church plan' does 
not include a plan— 
;; 
^ 
"(A) which is established and maintained primarily for the 
benefit of employees (or their beneficiaries) of such church or 
convention or association of churches who are employed in 
connection with one or more unrelated trades or businesses 
(within the meaning of section 513); or 
26 use 513. 
"(B) if less than substantially all of the individuals in-
cluded in the plan are individuals described in paragraph (1) 
or (3)(B) (or their beneficiaries). 
"(3) DEFINITIONS AND OTHER PROVISIONS.—For purposes of this 
subsection— 
"(A) TREATMENT AS CHURCH PLAN.—A plan established 
and maintained for its employees (or their beneficiaries) by a 
church or by a convention or association of churches in-
cludes a plan maintained by an organization, whether a civil 
law corporation or otherwise, the principal purpose or func-
tion of which is the administration or funding of a plan or 
program for the provision of retirement benefits or welfare 
benefits, or both, for the employees of a church or a conven-
tion or association of churches, if such organization is 
controlled by or associated with a church or a convention or 
association of churches. 
"(B) EMPLOYEE DEFINED.—The term employee of a church 
or a convention or association of churches shall include— 
94 STAT. 1306 
PUBLIC LAW 96-364—SEPT. 26, 1980 
"(i) a duly ordained, commissioned, or licensed minis-
ter of a church in the exercise of his ministry, regardless 
of the source of his compensation; 
"(ii) an employee of an organization, whether a civil 
law corporation or otherwise, which is exempt from tax 
26 use 501. 
under section 501 and which is controlled by or associ-
ated with a church or a convention or association of 
churches; and 
"(iii) an individual described in subparagraph (E). 
"(C) CHURCH TREATED AS EMPLOYER.—A church or a con-
vention or association of churches which is exempt from tax 
under section 501 shall be deemed the employer of any 
individual included as an employee under subparagraph (B). 
"(D) 
ASSOCIATION 
WITH 
CHURCH.—An 
organization, 
whether a civil law corporation or otherwise, is associated 
with a church or a convention or association of churches if it 
shares common religious bonds and convictions with that 
church or convention or association of churches. 
"(E) SPECIAL RULE IN CASE OF SEPARATION FROM PLAN.—If 
an employee who is included in a church plan separates from 
the service of a church or a convention or association of 
churches or an organization described in clause (ii) of para-
graph (3)(B), the church plan shall not fail to meet the 
requirements of this subsection merely because the plan— 
"(i) retains the employee's accrued benefit or account 
for the payment of benefits to the employee or his 
beneficiaries pursuant to the terms of the plan; or 
"(ii) receives contributions on the employee's behalf 
after the employee's separation from such service, but 
only for a period of 5 years after such separation, unless 
the employee is disabled (within the meaning of the 
disability provisions of the church plan or, if there are 
no such provisions in the church plan, within the mean-
26 use 72. 
ing of section 72(mX7)) at the time of such separation 
from service. 
"(4) CORRECTION OF FAILURE TO MEET CHURCH PLAN REQUIRE-
MENTS.— 
"(A) IN GENERAL.—If a plan established and maintained 
for its employees (or their beneficiaries) by a church or by a 
convention or association of churches which is exempt from 
tax under section 501 fails to meet one or more of the 
requirements of this subsection and corrects its failure to 
meet such requirements within the correction period, the 
plan shall be deemed to meet the requirements of this 
subsection for the year in which the correction was made 
and for all prior years. 
"(B) FAILURE TO CORRECT.—If a correction is not made 
within the correction period, the plan shall be deemed not to 
meet the requirements of this subsection beginning with the 
date on which the earliest failure to meet one or more of 
such requirements occurred. 
"(C) (!!oRRECTiON PERIOD DEFINED.—The term 'correction 
period' means— 
"(i) the period ending 270 days after the date of 
mailing by the Secretary of a notice of default with 
respect to the plan's failure to meet one or more of the 
requirements of this subsection; 
PUBLIC LAW 96-364—SEPT. 26, 1980 
94 STAT. 1307 
"(ii) any period set by a court of competent jurisdiction 
after a final determination that the plan fails to meet 
such requirements, or, if the court does not specify such 
period, any reasonable period determined by the Secre-
tary on the basis of all the facts and circumstances, but 
in any event not less than 270 days after the determina-
tion has become final; or 
"(iii) any additional period which the Secretary deter-
mines is reasonable or necessary for the correction of 
the default, 
whichever has the latest ending date.", 
(c) The amendments made by this section shall be effective as of Effective date. 
January 1,1974. 
26 use 4i4 note. 
SEC. 408. DEDUCTIBILITY OF PAYMENTS TO PLAN BY A CORPORATION 26 USC 404 note. 
OPERATING PUBLIC TRANSPORTATION SYSTEM ACQUIRED 
BY A STATE. 
(a) For purposes of subsection (g) of section 404 of the Internal 
Revenue Code of 1954 (relating to certain employer liability pay-
ments considered as contributions), as amended by section 205 of this 
Act, any payment made to a plan covering employees of a corporation 
operating a public transportation system shall be treated as a 
payment described in paragraph (1) of such subsection i
f
— 
(1) such payment is made to fund accrued benefits under the 
plan in conjunction with an acquisition by a State (or agency or 
instrumentality thereof) of the stock or assets of such corpora-
tion, and 
(2) such acquisition is pursuant to a State public transportation 
law enacted after June 30, 1979, and before January 1, 1980, 
Ot)) The provisions of this section shall apply to payments made 
afterJune29,1980. 
SEC. 409. TREATMENT OF CERTAIN SEVERANCE PAY ARRANGEMENTS 
AND SUPPLEMENTAL RETIREMENT INCOME PAYMENTS AS 
WELFARE PLANS. 
Paragraph (2) of section 3 is amended— 
29 USC 1002. 
(1) by striking out "The" and inserting in lieu thereof "(A) 
Except as provided in subparagraph (B), the", 
(2) by striking out "(A)" and inserting in lieu thereof "(i)", 
(3) by striking out "(B)" and inserting in lieu thereof "(ii)", and 
(4) by adding at the end thereof the following new subpara-
graph: 
"(B) The Secretary may by regulation prescribe rules consistent 
with the standards and purposes of this Act providing one or more 
exempt categories under which— 
"(i) severance pay arrangements, and 
"(ii) supplemental retirement income payments, under which 
the pension benefits of retirees or their beneficiaries are supple-
mented to take into account some portion or all of the increases 
in the cost of living (as determined by the Secretary of Labor) 
since retirement, 
shall, for purposes of this title, be treated as welfare plans rather 
than pension plans. In the case of any arrangement or payment a 
principal effect of which is the evasion of the standards or purposes of 
this Act applicable to pension plans, such arrangement or payment 
shall be treated as a pension plan.". 
79-194 
O—81—pt. 1 
86 : QL3 
94 STAT. 1308 
PUBLIC LAW 96-364—SEPT. 26, 1980 
29 use 1103. 
SEC. 410. REFUND OF MISTAKEN CONTRIBUTIONS. 
(a) Paragraph (2XA) of section 403(c) is amended to read as follows: 
"(2)(A) In the case of a contribution, or a payment of with-
Ante, p. 1217. 
drawal liability under part 1 of subtitle E of part iv— 
"(i) made by an employer to a plan (other than a multiem-
ployer plan) by a mistake of fact, paragraph (1) shall not 
prohibit the return of such contribution to the employer 
within one year after the payment of the contribution, and 
"(ii) made by an employer to a multiemployer plan by a 
mistake of fact or law (other than a mistake relating to 
whether the plan is described in section 401(a) of the Inter-
26 use 401. 
nal Revenue C!ode of 1954 or the trust which is part of such 
plan is exempt from taxation under section 501(a) of such 
26 use 501. 
Code), paragraph (1) shall not prohibit the return of such 
contribution or payment to the employer within 6 months 
after the plan administrator determines that the contribu-
tion was made by such a mistake.". 
(b) Paragraph (2) of section 401(a) of the Internal Revenue Code of 
26 use 401. 
1954 (relating to exclusive benefit of employees and beneficiaries) is 
amended bv inserting before the semicolon at the end thereof the 
following:' Obut this paragraph shall not be construed, in the case of a 
multiemployer plan, to prohibit the return of a contribution within 6 
months after the plan administrator determines that the contribu-
tion was made by a mistake of fact or law (other than a mistake 
relating to whether the plan is described in section 401(a) or the trust 
which is part of such plan is exempt from taxation under section 
501(a)).". 
Effective date. 
(c) The amendment made by this section shall take effect on 
26 use 401 note. January 1,1975, except that in the case of contributions received by a 
collectively bargained plan maintained by more than one employer 
before the date of enactment of this Act, any determination by the 
plan administrator that any such contribution was made by mistake 
of fact or law before such date shall be deemed to have been made on 
such date of enactment. 
SEC. 411. DEFINITION OF EMPLOYEE PENSION BENEFIT PLAN. 
(a) Section 201 of the Employee Retirement Income Security Act of 
29 use 1051. 
1974 is amended by adding at the end thereof the following new 
subsection: 
"(8) Any plan, fund or program under which an employer, all of 
whose stock is directly or indirectly owned by employees, former 
employees or their beneficiaries, proposes through an unfunded 
arrangement to compensate retired employees for benefits which 
were forfeited by such employees under a pension plan main-
tained by a former employer prior to the date such pension plan 
became subject to this Act.". 
O
b
) Section 301(a) of the Employee Retirement Income Security Act 
29 use 1081. 
of 1974 is amended by adding at the end thereof the following new 
paragraph: 
"(10) Any plan, fund or program under which an employer, all 
of whose stock is directly or indirectly owned by employees, 
former employees or their beneficiaries, proposes through an 
unfunded arrangement to compensate retired employees for 
benefits which were forfeited by such employees under a pension 
plan maintained by a former employer prior to the date such 
pension plan became subject to this Act.". 
29 use 1103. 
(c) Section 403(b) of ERISA is amended by adding at the end thereof 
the following new paragraph (6): 
PUBLIC LAW 96-364—SEPT. 26, 1980 
94 STAT. 1309 
29 u s e 1306 
note. 
Report to 
Congress. 
29 u s e 1001a 
note. 
Report to 
Congress. 
"(6) Any plan, fund or program under which an employer, all of 
whose stock is directly or indirectly owned by employees, former 
employees or their beneficiaries, proposes through an unfunded 
arrangement to compensate retired employees for benefits which 
were forfeited by such employees under a pension plan main-
tained by a former employer prior to the date such pension plan 
became subject to this Act.". 
SEC. 412. STUDIES BY PENSION BENEFIT GUARANTY CORPORATION AND 
SECRETARY OF LABOR. 
(a)(1) The Pension Benefit Guaranty Ck)rporation shall conduct a 
separate study with respect to— 
(A) the advantages and disadvantages of establishing a gradu-
ated premium rate schedule under section 4006 of the Employee 
Retirement Income and Security Act of 1974 which is based on ^"^«' P- 1264 
risk, and 
(B) the necessity of adopting specisil rules in cases of union-
mandated withdrawal from multiemployer pension plans. 
(2) The Corporation shall report to the Congress the results of the 
studies conducted under paragraph (1), including its recommenda-
tions with respect thereto. 
(b)(1) The Secretary of Labor shall study the feasibility of requiring 
collective bargaining on both the issues of contributions to, and 
benefits from, multiemployer plans. 
(2) The Secretary shall submit a report on the study conducted 
under paragraph (1) to the Congress within 3 years of the date of the 
enactment of this Act. 
SEC. 413. STUDY 
BY 
GENERAL 
ACCOUNTING 
OFFICE; 
HEARINGS 
REQUIRED. 
(a)(1) The Comptroller General of the United States shall conduct a 
study of the effects of the amendments made by, and the provisions 
of, this Act on— 
(A) participants, beneficiaries, employers, employee organiza-
tions, and other parties affected by this Act, and 
(B) the self-sufficiency of the fund established under section 
4005 of the Employee Retirement Income Security Act of 1974 
with respect to benefits guaranteed under section 4022A of such 
Act, taking into account the financial conditions of multi-
employer plans and employers. 
(2XA) The Comptroller General shall report to the Congress no 
later than June 30, 1985, the results of the study conducted under 
paragraph (1), including his recommendations with respect thereto. 
(B) The report submitted under subparagraph (A) shall be made 
available to the public. 
(b) In conducting the study under subsection (a)(1), the Comptroller 
Gteneral shall consult with the Committees on Finance and Labor and 
Human Resources of the Senate and the Committees on Education 
and Labor and Ways and Means of the House of Representatives. 
(c) The committees described in subsection (b) shall conduct hear-
ings on the report and recommendations submitted under subsection 
(a)(2). 
(d) For purposes of conducting the study required by this section, 
the Comptroller Greneral, or any of his duly authorized representa-
tives, shall have access to and the right to examine and copy any 
books, documents, papers, records, or other recorded information— 
(1) within the possession or control of the administrator or the 
sponsor of any plan, and 
29 u s e 1001 
note. 
Ante, p. 1300. 
Ante, p. 1210. 
Report to 
Congress. 
Public 
availability. 
Consultation 
with 
congressional 
committees. 
Information 
accessibility. 
94 STAT. 1310 
PUBLIC LAW 96-364—SEPT. 26, 1980 
(2) which the Comptroller General or his representative finds, 
in his own judgment, pertinent to such study. 
Confidentiality. 
The Comptroller General shall not disclose the identity of any 
individual in making any information obtained under this subsection 
available to the public. 
SEC. 414. TREATMENT OF CERTAIN RETIREMENT BENEFITS. 
(a) GENERAL RULE.—Paragraph (15) of section 3304(a) of the Inter-
2
6 use 3304. 
nal Revenue Code of 1954 (relating to requirements for approval of 
State laws) is amended by striking out the semicolon at the end 
thereof and inserting in lieu thereof the following: 
"except that— 
"(A) the requirements of this paragraph shall apply to any 
pension, retirement or retired pay, annuity, or other similar 
periodic payment only i
f
— 
"(i) such pension, retirement or retired pay, annuity, 
or similar payment is under a plan maintained (or 
contributed to) by a base period employer or chargeable 
employer (as determined under applicable law), and 
"(ii) in the case of such a payment not made under the 
42 use 1305. 
Social Security Act or the Railroad Retirement Act of 
45 use 23it. 
1974 (or the corresponding provisions of prior law), 
services performed for such employer by the individual 
after the beginning of the base period (or remuneration 
for such services) affect eligibility for, or increase the 
amount of, such pension, retirement or retired pay, 
annuity, or similar pajrment, and 
"(B) the State law may provide for limitations on the 
amount of any such a reduction to take into account contri-
butions made by the individual for the pension, retirement 
or retired pay, annuity, or other similar periodic payment;". 
2
6 use 3304 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) shall 
"°*^® 
apply to certifications of States for 1981 and subsequent years. 
SEC. 415. INCREASE IN LENGTH OF SERVICE IN ARMED FORCES RE-
QUIRED FOR EX-SERVICEMEN TO BE ELIGIBLE FOR UNEM-
PLOYMENT BENEFITS. 
(a) GENERAL RULE.—Subparagraph (A) of section 8521(a)(1) of title 5 
of the United States Code is amended by striking out "90 days or 
more" and inserting in lieu thereof "365 days or more". 
5 use 8521 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) shall 
"°*^^ 
apply with respect to determinations of Federal service in the case of 
individuals filing claims for unemployment compensation on or after 
October 1,1980. 
SEC. 416. CESSATION OF EXTENDED BENEFITS WHEN PAID UNDER AN IN-
TERSTATE CLAIM IN A STATE WHERE EXTENDED BENEFIT 
PERIOD IS NOT IN EFFECT. 
(a) GENERAL RULE.—Section 202 of the Federal-State Extended 
26 use 3304 
Unemployment Compensation Act of 1970 is amended by adding at 
^°^- 
the end thereof the following new subsection: 
"Cessation of Extended Benefits When Paid Under an Interstate 
Claim in a State Where Extended Benefit Period Is Not in Effect 
"(cXD Except £is provided in paragraph (2), payment of extended 
compensation shall not be made to any individual for any week i
f
— 
PUBLIC LAW 96-364—SEPT. 26, 1980 
94 STAT. 1311 
"(A) extended compensation would (but for this subsection) 
have been payable for such week pursuant to an interstate claim 
filed in any State under the interstate benefit payment plan, and 
"(B) an extended benefit period is not in effect for such week in 
such State. 
"(2) Paragraph (1) shall not apply with respect to the first 2 weeks 
for which extended compensation is payable (determined without 
regard to this subsection) pursuant to an interstate claim filed under 
the interstate benefit payment plan to the individual from the 
extended compensation account established for the benefit year. 
"(3) Section 3304(a)(9)(A) of the Internal Revenue Code of 1954 shall 26 use 3304. 
not apply to any denial of compensation required under this subsec-
tion.'^ 
(b) EFFECTIVE D A T E . — 
26 u s e 3304 
(1) IN GENERAL.—The amendment made by subsection (a) shall 
apply to weeks of unemployment beginning after October 1,1980; 
except that such amendment shall not be a requirement of any 
State law under section 3304(a)(ll) of the Internal Revenue Code 
of 1954 for any week which begins before June 1,1981. 
(2) SPECIAL RULE FOR CERTAIN STATES.—In the case of any State 
the legislature of which does not meet in a regular session which 
begins during calendar year 1981 and before April 1, 1981, 
paragraph (1) shall be applied by substituting "June 1,1982" for 
*^June 1,1981". 
Approved September 26, 1980. 
note. 
LEGISLATIVE HISTORY: 
HOUSE REPORTS No. 96-869, pt. I (Comm. on Education and Labor), pt. II (Comm. on 
Ways and Means) and No. 96-1343 (Comm. of Conference). 
CONGRESSIONAL RECORD, Vol. 126 (1980): 
May 21, 22, considered and passed House. 
July 29, considered and passed Senate, amended, in lieu of S. 1076. 
July 31, Aug. 1, 25, House concurred in Senate amendment with an amend-
ment. 
Aug. 26, Senate concurred in House amendment with amendments. 
Aug. 28, House disagreed to Senate amendments. 
Sept. 18, Senate agreed to conference report. 
Sept. 19, House agreed to conference report.