Subtitle A—Pension Benefit Guaranty Corporation
§1301. Definitions
(a) For purposes of this subchapter, the term—
(1) "administrator" means the person or persons described in paragraph (16) of
(2) "substantial employer", for any plan year of a single-employer plan, means one or more persons—
(A) who are contributing sponsors of the plan in such plan year,
(B) who, at any time during such plan year, are members of the same controlled group, and
(C) whose required contributions to the plan for each plan year constituting one of—
(i) the two immediately preceding plan years, or
(ii) the first two of the three immediately preceding plan years,
total an amount greater than or equal to 10 percent of all contributions required to be paid to or under the plan for such plan year;
(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 collective bargaining agreements between one or more employee organizations and more than one employer, and
(C) which satisfies such other requirements as the Secretary 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 multiemployer plan under this paragraph for the plan year preceding such termination, and
(ii) for any plan year which began before September 26, 1980, the term "multiemployer plan" means a plan described in
(4) "corporation", except where the context clearly requires otherwise, means the Pension Benefit Guaranty Corporation established under
(5) "fund" means the appropriate fund established under
(6) "basic benefits" means benefits guaranteed under
(7) "non-basic benefits" means benefits guaranteed under section 1322(c) 1 of this title or 1322a(g) of this title;
(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 chapter (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 chapter or title 26;
(9) Repealed.
(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 Treasury;
(12) "outstanding claim for withdrawal liability" means a plan's claim for the unpaid balance of the liability determined under part 1 of subtitle E for which demand has been made, valued in accordance with regulations prescribed by the corporation;
(13) "contributing sponsor", of a single-employer plan, means a person described in
(14) in the case of a single-employer plan—
(A) "controlled group" means, in connection with any person, a group consisting of such person and all other persons under common control with such person;
(B) the determination of whether two or more persons are under "common control" shall be made under regulations of the corporation which are consistent and coextensive with regulations prescribed for similar purposes by the Secretary of the Treasury under subsections (b) and (c) of
(C)(i) notwithstanding any other provision of this subchapter, during any period in which an individual possesses, directly or indirectly, the power to direct or cause the direction of the management and policies of an affected air carrier of which he was an accountable owner, whether through the ownership of voting securities, by contract, or otherwise, the affected air carrier shall be considered to be under common control not only with those persons described in subparagraph (B), but also with all related persons; and
(ii) for purposes of this subparagraph, the term—
(I) "affected air carrier" means an air carrier, as defined in
(II) "related person" means any person which was under common control (as determined under subparagraph (B)) with an affected air carrier on October 10, 1991, or any successor to such related person;
(III) "accountable owner" means any individual who on October 10, 1991, owned directly or indirectly through the application of
(IV) "successor" means any person that acquires, directly or indirectly through the application of
(V) "individual" means a living human being;
(15) "single-employer plan" means any defined benefit plan (as defined in
(16) "benefit liabilities" means the benefits of employees and their beneficiaries under the plan (within the meaning of
(17) "amount of unfunded guaranteed benefits", of a participant or beneficiary as of any date under a single-employer plan, means an amount equal to the excess of—
(A) the actuarial present value (determined as of such date on the basis of assumptions prescribed by the corporation for purposes of
(B) the current value (as of such date) of the assets of the plan which are required to be allocated to those benefits under
(18) "amount of unfunded benefit liabilities" means, as of any date, the excess (if any) of—
(A) the value of the benefit liabilities under the plan (determined as of such date on the basis of assumptions prescribed by the corporation for purposes of
(B) the current value (as of such date) of the assets of the plan;
(19) "outstanding amount of benefit liabilities" means, with respect to any plan, the excess (if any) of—
(A) the value of the benefit liabilities under the plan (determined as of the termination date on the basis of assumptions prescribed by the corporation for purposes of
(B) the value of the benefit liabilities which would be so determined by only taking into account benefits which are guaranteed under
(20) "person" has the meaning set forth in
(21) "affected party" means, with respect to a plan—
(A) each participant in the plan,
(B) each beneficiary under the plan who is a beneficiary of a deceased participant or who is an alternate payee (within the meaning of
(C) each employee organization representing participants in the plan, and
(D) the corporation,
except that, in connection with any notice required to be provided to the affected party, if an affected party has designated, in writing, a person to receive such notice on behalf of the affected party, any reference to the affected party shall be construed to refer to such person.
(b)(1) An individual who owns the entire interest in an unincorporated trade or business is treated as his own employer, and a partnership is treated as the employer of each partner who is an employee within the meaning of
(2) For purposes of subtitle E—
(A) except as otherwise provided in subtitle E, contributions or other payments shall be considered made under a plan for a plan year if they are made within the period prescribed under section 412(c)(10) 3 of title 26 (determined, in the case of a terminated plan, as if the plan had continued beyond the termination date), and
(B) the term "Secretary of the Treasury" means the Secretary of the Treasury or such Secretary's delegate.
(
Editorial Notes
References in Text
This chapter, referred to in subsec. (a)(8), was in the original "this Act", meaning
Section 412, referred to in subsec. (b)(2)(A), was amended generally by
Codification
In subsec. (a)(14)(C)(ii)(I), "
Amendments
2014—Subsec. (a)(9).
2006—Subsec. (a)(13).
1994—Subsec. (a)(13).
"(A) who is responsible, in connection with such plan, for meeting the funding requirements under
"(B) who is a member of the controlled group of a person described in subparagraph (A), has been responsible for meeting such funding requirements, and has employed a significant number (as may be defined in regulations of the corporation) of participants under such plan while such person was so responsible;".
1991—Subsec. (a)(14)(C).
1989—Subsecs. (a)(8), (13)(A), (14)(B), (b)(1), (2)(A).
1987—Subsec. (a)(16).
"(A) are guaranteed under
"(B) would be guaranteed under
"(C) constitute—
"(i) early retirement supplements or subsidies, or
"(ii) plant closing benefits,
irrespective of whether any such supplements, subsidies, or benefits are benefits guaranteed under
Subsec. (a)(18).
"(A) the actuarial present value (determined as of such date on the basis of assumptions prescribed by the corporation for purposes of
"(B) the current value (as of such date) of the assets of the plan which are required to be allocated to those benefit commitments under
Subsec. (a)(19).
"(A) the actuarial present value (determined as of the termination date on the basis of assumptions prescribed by the corporation for purposes of
"(B) the actuarial present value (determined as of such date on the basis of assumptions prescribed by the corporation for purposes of
1986—Subsec. (a)(2).
Subsec. (a)(13).
Subsec. (a)(14).
Subsec. (a)(15) to (21).
Subsec. (b).
1980—Subsec. (a)(2).
Subsec. (a)(3).
Subsec. (a)(6).
Subsec. (a)(7).
Subsec. (a)(8) to (12).
Subsec. (b).
Statutory Notes and Related Subsidiaries
Effective Date of 2014 Amendment
Amendment by
Effective Date of 2006 Amendment
Amendment by
Effective Date of 1994 Amendment
Amendment by
Effective Date of 1989 Amendment
Amendment by
Effective Date of 1987 Amendment
"(A) plan terminations under section 4041 of ERISA [
"(B) plan terminations with respect to which proceedings are instituted by the Pension Benefit Guaranty Corporation under section 4042 of ERISA [
Effective Date of 1986 Amendment
Amendment by
Effective Date of 1980 Amendment
Amendment by
Applicability of Amendments by Subtitles A and B of Title I of Pub. L. 109–280
For special rules on applicability of amendments by subtitles A (§§101–108) and B (§§111–116) of title I of
Coordination of Internal Revenue Code of 1986 With Employee Retirement Income Security Act of 1974
This subchapter not applicable in interpreting Internal Revenue Code of 1986, except to the extent specifically provided in such Code, or as determined by the Secretary of the Treasury, see section 9343(a) of
1 See References in Text note below.
2 So in original. The period probably should be a semicolon.
3 See References in Text note below.
§1302. Pension Benefit Guaranty Corporation
(a) Establishment within Department of Labor
There is established within the Department of Labor a body corporate to be known as the Pension Benefit Guaranty Corporation. In carrying out its functions under this subchapter, the corporation shall be administered by a Director, who shall be appointed by the President, by and with the advice and consent of the Senate, and who shall act in accordance with the policies established by the board. The purposes of this subchapter, which are to be carried out by the corporation, are—
(1) to encourage the continuation and maintenance of voluntary private pension plans for the benefit of their participants,
(2) to provide for the timely and uninterrupted payment of pension benefits to participants and beneficiaries under plans to which this subchapter applies, and
(3) to maintain premiums established by the corporation under
(b) Powers of corporation
To carry out the purposes of this subchapter, the corporation has the powers conferred on a nonprofit corporation under the District of Columbia Nonprofit Corporation Act and, in addition to any specific power granted to the corporation elsewhere in this subchapter or under that Act, the corporation has the power—
(1) to sue and be sued, complain and defend, in its corporate name and through its own counsel, in any court, State or Federal;
(2) to adopt, alter, and use a corporate seal, which shall be judicially noticed;
(3) to adopt, amend, and repeal, by the board of directors, bylaws, rules, and regulations relating to the conduct of its business and the exercise of all other rights and powers granted to it by this chapter and such other bylaws, rules, and regulations as may be necessary to carry out the purposes of this subchapter;
(4) to conduct its business (including the carrying on of operations and the maintenance of offices) and to exercise all other rights and powers granted to it by this chapter in any State or other jurisdiction without regard to qualification, licensing, or other requirements imposed by law in such State or other jurisdiction;
(5) to lease, purchase, accept gifts or donations of, or otherwise to acquire, to own, hold, improve, use, or otherwise deal in or with, and to sell, convey, mortgage, pledge, lease, exchange, or otherwise dispose of, any property, real, personal, or mixed, or any interest therein wherever situated;
(6) to appoint and fix the compensation of such officers, attorneys, employees, and agents as may be required, to determine their qualifications, to define their duties, and, to the extent desired by the corporation, require bonds for them and fix the penalty thereof, and to appoint and fix the compensation of experts and consultants in accordance with the provisions of
(7) to utilize the personnel and facilities of any other agency or department of the United States Government, with or without reimbursement, with the consent of the head of such agency or department; and
(8) to enter into contracts, to execute instruments, to incur liabilities, and to do any and all other acts and things as may be necessary or incidental to the conduct of its business and the exercise of all other rights and powers granted to the corporation by this chapter.
(c) Director
The Director shall be accountable to the board of directors. The Director shall serve for a term of 5 years unless removed by the President or the board of directors before the expiration of such 5-year term.
(d) Board of directors; compensation; reimbursement for expenses
(1) The board of directors of the corporation consists of the Secretary of the Treasury, the Secretary of Labor, and the Secretary of Commerce. Members of the Board shall serve without compensation, but shall be reimbursed for travel, subsistence, and other necessary expenses incurred in the performance of their duties as members of the board. The Secretary of Labor is the chairman of the board of directors.
(2) A majority of the members of the board of directors in office shall constitute a quorum for the transaction of business. The vote of the majority of the members present and voting at a meeting at which a quorum is present shall be the act of the board of directors.
(3) Each member of the board of directors shall designate in writing an official, not below the level of Assistant Secretary, to serve as the voting representative of such member on the board. Such designation shall be effective until revoked or until a date or event specified therein. Any such representative may refer for board action any matter under consideration by the designating board member, but such representative shall not count toward establishment of a quorum as described under paragraph (2).
(4) The Inspector General of the corporation shall report to the board of directors, and not less than twice a year, shall attend a meeting of the board of directors to provide a report on the activities and findings of the Inspector General, including with respect to monitoring and review of the operations of the corporation.
(5) The General Counsel of the corporation shall—
(A) serve as the secretary to the board of directors, and advise such board as needed; and
(B) have overall responsibility for all legal matters affecting the corporation and provide the corporation with legal advice and opinions on all matters of law affecting the corporation, except that the authority of the General Counsel shall not extend to the Office of Inspector General and the independent legal counsel of such Office.
(6) Notwithstanding any other provision of this chapter, the Office of Inspector General and the legal counsel of such Office are independent of the management of the corporation and the General Counsel of the corporation.
(7) The board of directors may appoint and fix the compensation of employees as may be required to enable the board of directors to perform its duties. The board of directors shall determine the qualifications and duties of such employees and may appoint and fix the compensation of experts and consultants in accordance with the provisions of
(e) Meetings
(1) The board of directors shall meet at the call of its chairman, or as otherwise provided by the bylaws of the corporation, but in no case less than 4 times a year with not fewer than 2 members present. Not less than 1 meeting of the board of directors during each year shall be a joint meeting with the advisory committee under subsection (h).
(2)(A) Except as provided in subparagraph (B), the chairman of the board of directors shall make available to the public the minutes from each meeting of the board of directors.
(B) The minutes of a meeting of the board of directors, or a portion thereof, shall not be subject to disclosure under subparagraph (A) if the chairman reasonably determines that such minutes, or portion thereof, contain confidential employer information including information obtained under
(C) The minutes of a meeting, or portion of 1 thereof, exempt from disclosure pursuant to subparagraph (B) shall be exempt from disclosure under
(f) Adoption of bylaws; amendment, alteration; publication in the Federal Register
As soon as practicable, but not later than 180 days after September 2, 1974, the board of directors shall adopt initial bylaws and rules relating to the conduct of the business of the corporation. Thereafter, the board of directors may alter, supplement, or repeal any existing bylaw or rule, and may adopt additional bylaws and rules from time to time as may be necessary. The chairman of the board shall cause a copy of the bylaws of the corporation to be published in the Federal Register not less often than once each year.
(g) Exemption from taxation
(1) The corporation, its property, its franchise, capital, reserves, surplus, and its income (including, but not limited to, any income of any fund established under
(2) The receipts and disbursements of the corporation in the discharge of its functions shall be included in the totals of the budget of the United States Government. The United States is not liable for any obligation or liability incurred by the corporation.
(3) Omitted.
(h) Advisory committee to corporation
(1) There is established an advisory committee to the corporation, for the purpose of advising the corporation as to its policies and procedures relating to (A) the appointment of trustees in termination proceedings, (B) investment of moneys, (C) whether plans being terminated should be liquidated immediately or continued in operation under a trustee, (D) such other issues as the corporation may request from time to time, and (E) other issues as determined appropriate by the advisory committee. The advisory committee may also recommend persons for appointment as trustees in termination proceedings, make recommendations with respect to the investment of moneys in the funds, and advise the corporation as to whether a plan subject to being terminated should be liquidated immediately or continued in operation under a trustee. In the event of a vacancy or impending vacancy in the office of the Participant and Plan Sponsor Advocate established under
(2) The advisory committee consists of seven members appointed, from among individuals recommended by the board of directors, by the President. Of the seven members, two shall represent the interests of employee organizations, two shall represent the interests of employers who maintain pension plans, and three shall represent the interests of the general public. The President shall designate one member as chairman at the time of the appointment of that member.
(3) Members shall serve for terms of 3 years each, except that, of the members first appointed, one of the members representing the interests of employee organizations, one of the members representing the interests of employers, and one of the members representing the interests of the general public shall be appointed for terms of 2 years each, one of the members representing the interests of the general public shall be appointed for a term of 1 year, and the other members shall be appointed to full 3–year terms. The advisory committee shall meet at least six times each year and at such other times as may be determined by the chairman or requested by any three members of the advisory committee. Not less than 1 meeting of the advisory committee during each year shall be a joint meeting with the board of directors under subsection (e).
(4) Members shall be chosen on the basis of their experience with employee organizations, with employers who maintain pension plans, with the administration of pension plans, or otherwise on account of outstanding demonstrated ability in related fields. Of the members serving on the advisory committee at any time, no more than four shall be affiliated with the same political party.
(5) An individual appointed to fill a vacancy occurring other than by the expiration of a term of office shall be appointed only for the unexpired term of the member he succeeds. Any vacancy occurring in the office of a member of the advisory committee shall be filled in the manner in which that office was originally filled.
(6) The advisory committee shall appoint and fix the compensation of such employees as it determines necessary to discharge its duties, including experts and consultants in accordance with the provisions of
(7) Members of the advisory committee shall, for each day (including traveltime) during which they are attending meetings or conferences of the committee or otherwise engaged in the business of the committee, be compensated at a rate fixed by the corporation which is not in excess of the daily equivalent of the annual rate of basic pay in effect for grade GS–18 of the General Schedule, and while away from their homes or regular places of business they may be allowed travel expenses, including per diem in lieu of subsistence, as authorized by
(8)
(i) Special rules regarding disasters, etc.
In the case of a pension or other employee benefit plan, or any sponsor, administrator, participant, beneficiary, or other person with respect to such plan, affected by a Presidentially declared disaster (as defined in
(j) Conflicts of interest
(1) In general
The Director of the corporation and each member of the board of directors shall not participate in a decision of the corporation in which the Director or such member has a direct financial interest. The Director of the corporation shall not participate in any activities that would present a potential conflict of interest or appearance of a conflict of interest without approval of the board of directors.
(2) Establishment of policy
The board of directors shall establish a policy that will inform the identification of potential conflicts of interests of the members of the board of directors and mitigate perceived conflicts of interest of such members and the Director of the corporation.
(k) Risk management officer
The corporation shall have a risk management officer whose duties include evaluating and mitigating the risk that the corporation might experience. The individual in such position shall coordinate the risk management efforts of the corporation, explain risks and controls to senior management and the board of directors of the corporation, and make recommendations.
(
Editorial Notes
References in Text
The District of Columbia Nonprofit Corporation Act, referred to in subsec. (b), is
This chapter, referred to in subsecs. (b)(3), (4), (8), (d)(6), and (i), was in original "this Act", meaning
The Federal Insurance Contributions Act, referred to in subsec. (g)(1), is act Aug. 16, 1954, ch. 736, §§3101, 3102, 3111, 3112, 3121 to 3128,
The Federal Unemployment Tax Act, referred to in subsec. (g)(1), is act Aug. 16, 1954, ch. 736, §§3301 to 3311,
Codification
A prior subsec. (c), as originally enacted by section 4002 of
Amendments
2022—Subsec. (h)(8).
2012—Subsec. (c).
Subsec. (d).
Subsec. (e).
Subsec. (h)(1).
Subsec. (h)(3).
Subsec. (j).
Subsec. (k).
2006—Subsec. (a).
2002—Subsec. (i).
1989—Subsec. (g)(1).
1980—Subsec. (b)(3).
Subsec. (g)(2).
1976—Subsec. (g)(1).
Statutory Notes and Related Subsidiaries
Effective Date of 2002 Amendment
Amendment by
Effective Date of 1989 Amendment
Amendment by
Effective Date of 1980 Amendment
Amendment by
Effective Date of 1976 Amendment
Senses of Congress
"(1)
"(2)
Quality Control Procedures for the Pension Benefit Guaranty Corporation
"(a)
Policies and Procedures Relating to the Policy, Research, and Analysis Department
"(1) develop written quality review policies and procedures for all modeling and actuarial work performed by the Corporation's Policy, Research, and Analysis Department; and
"(2) conduct a record management review of such Department to determine what records must be retained as Federal records."
Transition
References in Other Laws to GS–16, 17, or 18 Pay Rates
References in laws to the rates of pay for GS–16, 17, or 18, or to maximum rates of pay under the General Schedule, to be considered references to rates payable under specified sections of Title 5, Government Organization and Employees, see section 529 [title I, §101(c)(1)] of
1 So in original. The word "of" probably should not appear.
2 So in original. Probably should be "advisory committee".
§1303. Operation of corporation
(a) Investigatory authority; audit of statistically significant number of terminating plans
The corporation may make such investigations as it deems necessary to enforce any provision of this subchapter or any rule or regulation thereunder, and may require or permit any person to file with it a statement in writing, under oath or otherwise as the corporation shall determine, as to all the facts and circumstances concerning the matter to be investigated. The corporation shall annually audit a statistically significant number of plans terminating under
(b) Discovery powers vested in board members or officers designated by the chairman
For the purpose of any such investigation, or any other proceeding under this subchapter, the Director, any member of the board of directors of the corporation, or any officer designated by the Director or chairman, may administer oaths and affirmations, subpena witnesses, compel their attendance, take evidence, and require the production of any books, papers, correspondence, memoranda, or other records which the corporation deems relevant or material to the inquiry.
(c) Contempt
In the case of contumacy by, or refusal to obey a subpena issued to, any person, the corporation may invoke the aid of any court of the United States within the jurisdiction of which such investigation or proceeding is carried on, or where such person resides or carries on business, in requiring the attendance and testimony of witnesses and the production of books, papers, correspondence, memoranda, and other records. The court may issue an order requiring such person to appear before the corporation, or member or officer designated by the corporation, and to produce records or to give testimony related to the matter under investigation or in question. Any failure to obey such order of the court may be punished by the court as a contempt thereof. All process in any such case may be served in the judicial district in which such person is an inhabitant or may be found.
(d) Cooperation with other governmental agencies
In order to avoid unnecessary expense and duplication of functions among government agencies, the corporation may make such arrangements or agreements for cooperation or mutual assistance in the performance of its functions under this subchapter as is practicable and consistent with law. The corporation may utilize the facilities or services of any department, agency, or establishment of the United States or of any State or political subdivision of a State, including the services of any of its employees, with the lawful consent of such department, agency, or establishment. The head of each department, agency, or establishment of the United States shall cooperate with the corporation and, to the extent permitted by law, provide such information and facilities as it may request for its assistance in the performance of its functions under this subchapter. The Attorney General or his representative shall receive from the corporation for appropriate action such evidence developed in the performance of its functions under this subchapter as may be found to warrant consideration for criminal prosecution under the provisions of this or any other Federal law.
(e) Civil actions by corporation; jurisdiction; process; expeditious handling of case; costs; limitation on actions
(1) Civil actions may be brought by the corporation for appropriate relief, legal or equitable or both, to enforce (A) the provisions of this subchapter, and (B) in the case of a plan which is covered under this subchapter (other than a multiemployer plan) and for which the conditions for imposition of a lien described in section 1083(k)(1)(A) and (B) or 1085a(g)(1)(A) and (B) of this title or section 430(k)(1)(A) and (B) or 433(g)(1)(A) and (B) of title 26 have been met,
(2) Except as otherwise provided in this subchapter, where such an action is brought in a district court of the United States, it may be brought in the district where the plan is administered, where the violation took place, or where a defendant resides or may be found, and process may be served in any other district where a defendant resides or may be found.
(3) The district courts of the United States shall have jurisdiction of actions brought by the corporation under this subchapter without regard to the amount in controversy in any such action.
(4) Repealed.
(5) In any action brought under this subchapter, whether to collect premiums, penalties, and interest under
(6)(A) Except as provided in subparagraph (C), an action under this subsection may not be brought after the later of—
(i) 6 years after the date on which the cause of action arose, or
(ii) 3 years after the applicable date specified in subparagraph (B).
(B)(i) Except as provided in clause (ii), the applicable date specified in this subparagraph is the earliest date on which the corporation acquired or should have acquired actual knowledge of the existence of such cause of action.
(ii) If the corporation brings the action as a trustee, the applicable date specified in this subparagraph is the date on which the corporation became a trustee with respect to the plan if such date is later than the date described in clause (i).
(C) In the case of fraud or concealment, the period described in subparagraph (A)(ii) shall be extended to 6 years after the applicable date specified in subparagraph (B).
(f) Civil actions against corporation; appropriate court; award of costs and expenses; limitation on actions; jurisdiction; removal of actions
(1) Except with respect to withdrawal liability disputes under part 1 of subtitle E, any person who is a plan sponsor, fiduciary, employer, contributing sponsor, member of a contributing sponsor's controlled group, participant, or beneficiary, and is adversely affected by any action of the corporation with respect to a plan in which such person has an interest, or who is an employee organization representing such a participant or beneficiary so adversely affected for purposes of collective bargaining with respect to such plan, may bring an action against the corporation for appropriate equitable relief in the appropriate court.
(2) For purposes of this subsection, the term "appropriate court" means—
(A) the United States district court before which proceedings under
(B) if no such proceedings are being conducted, the United States district court for the judicial district in which the plan has its principal office, or
(C) the United States District Court for the District of Columbia.
(3) In any action brought under this subsection, the court may award all or a portion of the costs and expenses incurred in connection with such action to any party who prevails or substantially prevails in such action.
(4) This subsection shall be the exclusive means for bringing actions against the corporation under this subchapter, including actions against the corporation in its capacity as a trustee under section 1342 or 1349 1 of this title.
(5)(A) Except as provided in subparagraph (C), an action under this subsection may not be brought after the later of—
(i) 6 years after the date on which the cause of action arose, or
(ii) 3 years after the applicable date specified in subparagraph (B).
(B)(i) Except as provided in clause (ii), the applicable date specified in this subparagraph is the earliest date on which the plaintiff acquired or should have acquired actual knowledge of the existence of such cause of action.
(ii) In the case of a plaintiff who is a fiduciary bringing the action in the exercise of fiduciary duties, the applicable date specified in this subparagraph is the date on which the plaintiff became a fiduciary with respect to the plan if such date is later than the date specified in clause (i).
(C) In the case of fraud or concealment, the period described in subparagraph (A)(ii) shall be extended to 6 years after the applicable date specified in subparagraph (B).
(6) The district courts of the United States have jurisdiction of actions brought under this subsection without regard to the amount in controversy.
(7) In any suit, action, or proceeding in which the corporation is a party, or intervenes under
(
Editorial Notes
References in Text
Amendments
2014—Subsec. (e)(1)(B).
Subsec. (f)(1).
2006—Subsec. (b).
Subsec. (e)(1).
1994—Subsec. (a).
Subsec. (e)(1).
1986—Subsec. (a).
Subsec. (e)(6).
Subsec. (f).
1984—Subsec. (e)(4).
1980—Subsec. (a).
Subsec. (e)(1).
Subsec. (f).
Statutory Notes and Related Subsidiaries
Effective Date of 2014 Amendment
Amendment by
Effective Date of 2006 Amendment
Amendment by section 108(b)(2) of
Effective Date of 1994 Amendment
Amendment by section 776(b)(1) of
Effective Date of 1986 Amendment
Amendment by section 11016(c)(5) of
Effective Date of 1984 Amendment
Amendment by
Effective Date of 1980 Amendment
Amendment by
Applicability of Amendments by Subtitles A and B of Title I of Pub. L. 109–280
For special rules on applicability of amendments by subtitles A (§§101–108) and B (§§111–116) of title I of
1 See References in Text note below.
§1304. Participant and Plan Sponsor Advocate
(a) In general
The board of directors of the corporation shall select a Participant and Plan Sponsor Advocate from the candidates nominated by the advisory committee to the corporation under
(b) Duties
The Participant and Plan Sponsor Advocate shall—
(1) act as a liaison between the corporation, sponsors of defined benefit pension plans insured by the corporation, and participants in pension plans trusteed by the corporation;
(2) advocate for the full attainment of the rights of participants in plans trusteed by the corporation;
(3) assist pension plan sponsors and participants in resolving disputes with the corporation;
(4) identify areas in which participants and plan sponsors have persistent problems in dealings with the corporation;
(5) to the extent possible, propose changes in the administrative practices of the corporation to mitigate problems;
(6) identify potential legislative changes which may be appropriate to mitigate problems; and
(7) refer instances of fraud, waste, and abuse, and violations of law to the Office of the Inspector General of the corporation.
(c) Removal
If the Participant and Plan Sponsor Advocate is removed from office or is transferred to another position or location within the corporation or the Department of Labor, the board of the 1 directors of the corporation shall communicate in writing the reasons for any such removal or transfer to Congress not less than 30 days before the removal or transfer. Nothing in this subsection shall prohibit a personnel action otherwise authorized by law, other than transfer or removal.
(d) Compensation
The annual rate of basic pay for the Participant and Plan Sponsor Advocate shall be the same rate as the highest rate of basic pay established for the Senior Executive Service under
(e) Annual report
(1) In general
Not later than December 31 of each calendar year, the Participant and Plan Sponsor Advocate shall report to the Health, Education, Labor, and Pensions Committee of the Senate, the Committee on Finance of the Senate, the Committee on Education and the Workforce of the House of Representatives, and the Committee on Ways and Means of the House of Representatives on the activities of the Office of the Participant and Plan Sponsor Advocate during the fiscal year ending during such calendar year.
(2) Content
Each report submitted under paragraph (1) shall—
(A) summarize the assistance requests received from participants and plan sponsors and describe the activities, and evaluate the effectiveness, of the Participant and Plan Sponsor Advocate during the preceding year;
(B) identify significant problems the Participant and Plan Sponsor Advocate has identified;
(C) include specific legislative and regulatory changes to address the problems; and
(D) identify any actions taken to correct problems identified in any previous report.
(3) Concurrent submission
The Participant and Plan Sponsor Advocate shall submit a copy of each report to the Secretary of Labor, the Director of the corporation, and any other appropriate official at the same time such report is submitted to the committees of Congress under paragraph (1).
(
Editorial Notes
Prior Provisions
A prior section 1304,
1 So in original. The word "the" probably should not appear.
§1304a. Sponsor education and assistance
(a) Definition
In this section, the term "CSEC plan" has the meaning given that term in subsection (f)(1) of
(b) Education
The Participant and Plan Sponsor Advocate established under
(
Editorial Notes
Codification
Section was enacted as part of the Cooperative and Small Employer Charity Pension Flexibility Act, and not as part of the Employee Retirement Income Security Act of 1974 which comprises this chapter.
Statutory Notes and Related Subsidiaries
Effective Date
Section applicable to years beginning after Dec. 31, 2013, see section 3 of
§1305. Pension benefit guaranty funds
(a) Establishment of four revolving funds on books of Treasury of the United States
There are established on the books of the Treasury of the United States four revolving funds to be used by the corporation in carrying out its duties under this subchapter. One of the funds shall be used with respect to basic benefits guaranteed under
(b) Credits to funds; availability of funds; investment of moneys in excess of current needs
(1) Each fund established under this section shall be credited with the appropriate portion of—
(A) premiums, penalties, interest, and charges collected under this subchapter,
(B) the value of the assets of a plan administered under
(C) the amount of any employer liability payments under subtitle D, to the extent that such payments exceed liabilities of the plan (taking into account all other plan assets),
(D) earnings on investments of the fund or on assets credited to the fund under this subsection,
(E) attorney's fees awarded to the corporation, and
(F) receipts from any other operations under this subchapter.
(2) Subject to the provisions of subsection (a), each fund shall be available—
(A) for making such payments as the corporation determines are necessary to pay benefits guaranteed under
(B) to purchase assets from a plan being terminated by the corporation when the corporation determines such purchase will best protect the interests of the corporation, participants in the plan being terminated, and other insured plans,
(C) to pay the operational and administrative expenses of the corporation, including reimbursement of the expenses incurred by the Department of the Treasury in maintaining the funds, and the Comptroller General in auditing the corporation, and
(D) to pay to participants and beneficiaries the estimated amount of benefits which are guaranteed by the corporation under this subchapter and the estimated amount of other benefits to which plan assets are allocated under
(3)(A) Whenever the corporation determines that the moneys of any fund are in excess of current needs, it may request the investment of such amounts as it determines advisable by the Secretary of the Treasury in obligations issued or guaranteed by the United States.
(B) Notwithstanding subparagraph (A)—
(i) the amounts of premiums received under
(I) for fiscal year 2016, $108,000,000;
(II) for fiscal year 2017, $111,000,000;
(III) for fiscal year 2018, $113,000,000;
(IV) for fiscal year 2019, $149,000,000; and
(V) for fiscal year 2020, $296,000,000;
(ii) premiums received in fiscal years specified in subclauses (I) through (V) of clause (i) shall be allocated in order first to the noninterest-bearing account in the amount specified and second to any other accounts within such fund; and
(iii) financial assistance, as provided under
(c) Repealed. Pub. L. 112–141, div. D, title II, §40234(a), July 6, 2012, 126 Stat. 858
(d) Establishment of fifth fund; purpose, availability, etc.
(1) A fifth fund shall be established for the reimbursement of uncollectible withdrawal liability under
(A) premiums, penalties, and interest charges collected under this subchapter, 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
(2) The corporation may invest amounts of the fund in such obligations as the corporation considers appropriate.
(e) Establishment of sixth fund; purpose, availability, etc.
(1) A sixth fund shall be established for the supplemental benefit guarantee program provided under
(2) Such fund shall be credited with the appropriate—
(A) premiums, penalties, and interest charges collected under
(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
(3) The corporation may invest amounts of the fund in such obligations as the corporation considers appropriate.
(f) Deposit of premiums into separate revolving fund
(1) A seventh fund shall be established and credited with—
(A) premiums, penalties, and interest charges collected under
(B) premiums, penalties, and interest charges collected under
(C) earnings on investments of the fund or on assets credited to the fund.
(2) Amounts in the fund shall be available for transfer to other funds established under this section with respect to a single-employer plan but shall not be available to pay—
(A) administrative costs of the corporation, or
(B) benefits under any plan which was terminated before October 1, 1988,
unless no other amounts are available for such payment.
(3) The corporation may invest amounts of the fund in such obligations as the corporation considers appropriate.
(g) Other use of funds; deposits of repayments
(1) 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) 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.
(h) Voting by corporation of stock paid as liability
Any stock in a person liable to the corporation under this subchapter which is paid to the corporation by such person or a member of such person's controlled group in satisfaction of such person's liability under this subchapter may be voted only by the custodial trustees or outside money managers of the corporation.
(i) Special financial assistance for multiemployer pension plans
(1) An eighth fund shall be established for special financial assistance to multiemployer pension plans, as provided under
(2) There is appropriated from the general fund such amounts as are necessary for the costs of providing financial assistance under
(
Editorial Notes
Amendments
2021—Subsec. (i).
2014—Subsec. (b)(3).
2012—Subsec. (b)(1).
Subsec. (b)(2)(C) to (E).
Subsec. (b)(3).
Subsec. (c).
Subsec. (g)(2), (3).
1994—Subsec. (b)(2)(A).
1987—Subsec. (f).
Subsec. (g).
Subsec. (h).
1986—Subsec. (b)(1)(F), (G).
Subsec. (b)(2)(E).
Subsec. (g).
1980—Subsec. (a).
Subsec. (b)(2).
Subsecs. (d) to (f).
Statutory Notes and Related Subsidiaries
Effective Date of 1994 Amendment
Amendment by
Effective Date of 1987 Amendment
Amendment by section 9312(c)(4) of
"(1)
"(2)
Effective Date of 1986 Amendment
Amendment by
Effective Date of 1980 Amendment
Amendment by
§1306. Premium rates
(a) Schedules for premium rates and bases for application; establishment, coverage, etc.
(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 subchapter. 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
(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
(B) basic benefits guaranteed by it under
(C) nonbasic benefits guaranteed by it under
(D) nonbasic benefits guaranteed by it under
(E) reimbursements of uncollectible withdrawal liability under
The corporation may revise such schedules whenever it determines that revised schedules are necessary. Except as provided in
(3)(A) Except as provided in subparagraph (C), the annual premium rate payable to the corporation by all plans for basic benefits guaranteed under this subchapter is—
(i) in the case of a single-employer plan other than a CSEC plan (as defined in
(I) for plan years beginning after December 31, 2005, and before January 1, 2013, $30;
(II) for plan years beginning after December 31, 2012, and before January 1, 2014, $42;
(III) for plan years beginning after December 31, 2013 and before January 1, 2015,,1 $49.2
(IV) for plan years beginning after December 31, 2014, and before January 1, 2016, $57;
(V) for plan years beginning after December 31, 2015, and before January 1, 2017, $64;
(VI) for plan years beginning after December 31, 2016, and before January 1, 2018, $69;
(VII) for plan years beginning after December 31, 2017, and before January 1, 2019, $74; and
(VIII) for plan years beginning after December 31, 2018, $80.3
(ii) in the case of a multiemployer plan, for the plan year within which the date of enactment of the Multiemployer Pension 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 September 26, 1980, and before January 1, 2006, an amount equal to—
(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,
(iv) in the case of a multiemployer plan, for plan years beginning after December 31, 2005, and before January 1, 2013, $8.00 for each individual who is a participant in such plan during the applicable plan year,
(v) in the case of a multiemployer plan, for plan years beginning after December 31, 2012, and before January 1, 2015, $12.00 for each individual who is a participant in such plan during the applicable plan year,
(vi) in the case of a multiemployer plan, for plan years beginning after December 31, 2014, and before January 1, 2031, $26 for each individual who is a participant in such plan during the applicable plan year,
(vii) in the case of a CSEC plan (as defined in
(I) the additional premium (if any) determined under subparagraph (E), and
(II) $19, or
(viii) in the case of a multiemployer plan, for plan years beginning after December 31, 2030, $52 for each individual who is a participant in such plan during the applicable 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 clause (iii) or (iv) of subparagraph (A) will not apply to the same participant in any multiemployer plan more than once for any plan year.
(C)(i) If the sum of—
(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 subchapter for multiemployer plans which were paid out of any such fund or assets during the preceding calendar year, the annual premium rates under subparagraph (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
(iii) The maximum annual premium rate which may be established 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 subchapter.
(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 established 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.
(E)(i) Except as provided in subparagraph (I), the additional premium determined under this subparagraph with respect to any plan for any plan year—
(I) shall be an amount equal to the amount determined under clause (ii) divided by the number of participants in such plan as of the close of the preceding plan year;
(II) in the case of plan years beginning in a calendar year after 2012 and before 2016, shall not exceed $400 4 and
(III) in the case of plan years beginning in a calendar year after 2015, shall not exceed $500.
(ii) The amount determined under this clause for any plan year shall be an amount equal to the applicable dollar amount under paragraph (8) for each $1,000 (or fraction thereof) of unfunded vested benefits under the plan as of the close of the preceding plan year.
(iii) Except as provided in clause (v), for purposes of clause (ii), the term "unfunded vested benefits" means, for a plan year, the excess (if any) of—
(I) the funding target of the plan as determined under
(II) the fair market value of plan assets for the plan year which are held by the plan on the valuation date.
(iv) The interest rate used in valuing benefits for purposes of subclause (I) of clause (iii) shall be equal to the first, second, or third segment rate for the month preceding the month in which the plan year begins, which would be determined under
(v) For purposes of clause (ii), in the case of a CSEC plan (as defined in
(I) the funding liability of the plan as determined under
(II) the fair market value of plan assets for the plan year which are held by the plan on the valuation date.
(F) For each plan year beginning in a calendar year after 2006 and before 2013, there shall be substituted for the premium rate specified in clause (i) of subparagraph (A) an amount equal to the greater of—
(i) the product derived by multiplying the premium rate specified in clause (i) of subparagraph (A) by the ratio of—
(I) the national average wage index (as defined in
(II) the national average wage index (as so defined) for 2004 (2012 in the case of plan years beginning after calendar year 2014); and
(ii) the premium rate in effect under clause (i) of subparagraph (A) for plan years beginning in the preceding calendar year.
If the amount determined under this subparagraph is not a multiple of $1, such product shall be rounded to the nearest multiple of $1.
(G) For each plan year beginning in a calendar year after 2019, there shall be substituted for the premium rate specified in clause (i) of subparagraph (A) an amount equal to the greater of—
(i) the product derived by multiplying the premium rate specified in clause (i) of subparagraph (A) by the ratio of—
(I) the national average wage index (as defined in
(II) the national average wage index (as so defined) for 2017; and
(ii) the premium rate in effect under clause (i) of subparagraph (A) for plan years beginning in the preceding calendar year.
If the amount determined under this subparagraph is not a multiple of $1, such product shall be rounded to the nearest multiple of $1.
(H) For each plan year beginning in a calendar year after 2006, there shall be substituted for the premium rate specified in clause (iv) of subparagraph (A) an amount equal to the greater of—
(i) the product derived by multiplying the premium rate specified in clause (iv) of subparagraph (A) by the ratio of—
(I) the national average wage index (as defined in
(II) the national average wage index (as so defined) for 2004; and
(ii) the premium rate in effect under clause (iv) of subparagraph (A) for plan years beginning in the preceding calendar year.
If the amount determined under this subparagraph is not a multiple of $1, such product shall be rounded to the nearest multiple of $1.
(I)(i) In the case of an employer who has 25 or fewer employees on the first day of the plan year, the additional premium determined under subparagraph (E) for each participant shall not exceed $5 multiplied by the number of participants in the plan as of the close of the preceding plan year.
(ii) For purposes of clause (i), whether an employer has 25 or fewer employees on the first day of the plan year is determined by taking into consideration all of the employees of all members of the contributing sponsor's controlled group. In the case of a plan maintained by two or more contributing sponsors, the employees of all contributing sponsors and their controlled groups shall be aggregated for purposes of determining whether the 25-or-fewer-employees limitation has been satisfied.
(J) For each plan year beginning in a calendar year after 2013, there shall be substituted for the premium rate specified in clause (v) of subparagraph (A) an amount equal to the greater of—
(i) the product derived by multiplying the premium rate specified in clause (v) of subparagraph (A) by the ratio of—
(I) the national average wage index (as defined in
(II) the national average wage index (as so defined) for 2011; and
(ii) the premium rate in effect under clause (v) of subparagraph (A) for plan years beginning in the preceding calendar year.
If the amount determined under this subparagraph is not a multiple of $1, such product shall be rounded to the nearest multiple of $1.
(K) For each plan year beginning in a calendar year after 2013 and before 2016, there shall be substituted for the dollar amount specified in subclause (II) of subparagraph (E)(i) an amount equal to the greater of—
(i) the product derived by multiplying such dollar amount by the ratio of—
(I) the national average wage index (as defined in
(II) the national average wage index (as so defined) for 2011; and
(ii) such dollar amount for plan years beginning in the preceding calendar year.
If the amount determined under this subparagraph is not a multiple of $1, such product shall be rounded to the nearest multiple of $1.
(L) For each plan year beginning in a calendar year after 2016, there shall be substituted for the dollar amount specified in subclause (III) of subparagraph (E)(i) an amount equal to the greater of—
(i) the product derived by multiplying such dollar amount by the ratio of—
(I) the national average wage index (as defined in
(II) the national average wage index (as so defined) for 2014; and
(ii) such dollar amount for plan years beginning in the preceding calendar year.
If the amount determined under this subparagraph is not a multiple of $1, such product shall be rounded to the nearest multiple of $1.
(M) For each plan year beginning in a calendar year after 2015, there shall be substituted for the dollar amount specified in clause (vi) of subparagraph (A) an amount equal to the greater of—
(i) the product derived by multiplying such dollar amount by the ratio of—
(I) the national average wage index (as defined in
(II) the national average wage index (as so defined) for 2013; and
(ii) such dollar amount for plan years beginning in the preceding calendar year.
If the amount determined under this subparagraph is not a multiple of $1, such product shall be rounded to the nearest multiple of $1.
(N) For each plan year beginning in a calendar year after 2031, there shall be substituted for the dollar amount specified in clause (viii) of subparagraph (A) an amount equal to the greater of—
(i) the product derived by multiplying such dollar amount by the ratio of—
(I) the national average wage index (as defined in
(II) the national average wage index (as so defined) for 2029; and
(ii) such dollar amount for plan years beginning in the preceding calendar year.
If the amount determined under this subparagraph is not a multiple of $1, such product shall be rounded to the nearest multiple of $1.
(4) The corporation may prescribe, subject to the enactment of a joint resolution in accordance with this section or
(5)(A) In carrying out its authority under paragraph (1) to establish schedules of premium rates, and bases for the application of those rates, for nonbasic benefits guaranteed under
(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 experience 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
(6)(A) In carrying out its authority under paragraph (1) to establish premium rates and bases for basic benefits guaranteed under
(B) The corporation may establish annual premiums for single-employer plans composed of the sum of—
(i) a charge based on a rate applicable to the excess, if any, of the present value of the basic benefits of the plan which are guaranteed over the value of the assets of the plan, not in excess of 0.1 percent, and
(ii) an additional charge based on a rate applicable to the present value of the basic benefits of the plan which are guaranteed.
The rate for the additional charge referred to in clause (ii) shall be set by the corporation for every year at a level which the corporation estimates will yield total revenue approximately equal to the total revenue to be derived by the corporation from the charges referred to in clause (i) of this subparagraph.
(C) The corporation may establish annual premiums for single-employer plans based on—
(i) the number of participants in a plan, but such premium rates shall not exceed the rates described in paragraph (3),
(ii) unfunded basic benefits guaranteed under this subchapter, but such premium rates shall not exceed the limitations applicable to charges referred to in subparagraph (B)(i), or
(iii) total guaranteed basic benefits, but such premium rates shall not exceed the rates for additional charges referred to in subparagraph (B)(ii).
If the corporation uses two or more of the rate bases described in this subparagraph, the premium rates shall be designed to produce approximately equal amounts of aggregate premium revenue from each of the rate bases used.
(D) For purposes of this paragraph, the corporation shall by regulation define the terms "value of assets" and "present value of the benefits 5 of the plan which are guaranteed" in a manner consistent with the purposes of this subchapter and the provisions of this section.
(7)
(A)
(B)
(C)
(i)
(I) the 12-month period beginning with the first month following the month in which the termination date occurs, and
(II) each of the first two 12-month periods immediately following the period described in subclause (I).
(ii)
(D)
(i) Notwithstanding
(I) premiums under this paragraph shall be due within 30 days after the beginning of any applicable 12-month period, and
(II) the designated payor shall be the person who is the contributing sponsor as of immediately before the termination date.
(ii) The fifth sentence of
(8)
(A)
(i) $9 for plan years beginning in a calendar year before 2015;
(ii) for plan years beginning in calendar year 2015, the amount in effect for plan years beginning in 2014 (determined after application of subparagraph (C));
(iii) for plan years beginning after calendar year 2015, the amount in effect for plan years beginning in 2015 (determined after application of subparagraph (C));
(iv) for plan years beginning after calendar year 2016, the amount in effect for plan years beginning in 2016 (determined after application of subparagraph (C));
(v) for plan years beginning after calendar year 2017, the amount in effect for plan years beginning in 2017 (determined after application of subparagraph (C));
(vi) for plan years beginning after calendar year 2018, the amount in effect for plan years beginning in 2018 (determined after application of subparagraph (C));
(vii) for plan years beginning after calendar year 2019, the amount in effect for plan years beginning in 2019 (determined after application of subparagraph (C)); and
(viii) for plan years beginning after calendar year 2023, $52.
(B)
(i) the product derived by multiplying such applicable dollar amount for plan years beginning in that calendar year by the ratio of—
(I) the national average wage index (as defined in
(II) the national average wage index (as so defined) for the base year; and
(ii) such applicable dollar amount in effect for plan years beginning in the preceding calendar year.
If the amount determined under this subparagraph is not a multiple of $1, such product shall be rounded to the nearest multiple of $1.
(C)
(i) in the case of plan years beginning in calendar year 2014, by $4;
(ii) in the case of plan years beginning in calendar year 2015, by $10;
(iii) in the case of plan years beginning in calendar year 2016, by $5;
(iv) in the case of plan years beginning in calendar year 2017, by $3;
(v) in the case of plan years beginning in calendar year 2018, by $4; and
(vi) in the case of plan years beginning in calendar year 2019, by $4.
(D)
(i) 2010, in the case of plan years beginning in calendar year 2013 or 2014;
(ii) 2012, in the case of plan years beginning in calendar year 2015;
(iii) 2013, in the case of plan years beginning after calendar year 2015;
(iv) 2014, in the case of plan years beginning after calendar year 2016;
(v) 2015, in the case of plan years beginning after calendar year 2017;
(vi) 2016, in the case of plan years beginning after calendar year 2018; and
(vii) 2017, in the case of plan years beginning after calendar year 2019 and before 2024.
(E)
(b) Revised schedule; Congressional procedures applicable
(1) In order to place a revised schedule (other than a schedule described in subsection (a)(2)(C), (D), or (E)) in effect, the corporation shall transmit the proposed schedule, its proposed effective date, and the reasons for its proposal 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) The succeeding paragraphs of this subsection are enacted by 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 resolutions described in paragraph (3). They 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 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.
(3) For the purpose of the succeeding paragraphs of this subsection, "resolution" means only a joint resolution, the matter after the resolving clause of which is as follows: "The proposed revised schedule transmitted to Congress by the Pension Benefit Guaranty Corporation on ____ is hereby approved.", the blank space therein being filled with the date on which the corporation's message proposing the rate was delivered.
(4) A resolution shall be referred 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.
(5) If a committee to which has been referred a resolution has not reported it before the expiration of 10 calendar days after its introduction, it shall then (but not before) be in order to move to discharge the committee from further consideration of that resolution, or to discharge the committee from further consideration of any other resolution with respect to the proposed adjustment which has been referred to the committee. The motion to discharge may be made only by a person favoring the resolution, shall be highly privileged (except that it may not be made after the committee has reported a resolution with respect to the same proposed rate), and debate thereon shall be limited to not more than 1 hour, to be divided equally between those favoring and those opposing the resolution. An amendment to the motion is not in order, and it is not in order to move to reconsider the vote by which the motion is agreed to or disagreed to. If the motion to discharge is agreed to or disagreed to, the motion may not be renewed, nor may another motion to discharge the committee be made with respect to any other resolution with respect to the same proposed rate.
(6) When a committee has reported, or has been discharged from further consideration of a resolution, it is at any time thereafter in order (even though a previous motion to the same effect has been disagreed to) to move to proceed to the consideration of the resolution. The motion is highly privileged and is not debatable. An amendment to the motion is not in order, and it is not in order to move to reconsider the vote by which the motion is agreed to or disagreed to. Debate on the resolution shall be limited to not more than 10 hours, which shall be divided equally between those favoring and those opposing the resolution. A motion further to limit debate is not debatable. An amendment to, or motion to recommit, the resolution is not in order, and it is not in order to move to reconsider the vote by which the resolution is agreed to or disagreed to.
(7) Motions to postpone, made with respect to the discharge from committee, or the consideration of, a resolution and motions to proceed to the consideration of other business shall be decided without debate. Appeals from the decisions of the Chair relating to the application of the rules of the Senate or the House of Representatives, as the case may be, to the procedure relating to a resolution shall be decided without debate.
(c) Rates for plans for basic benefits
(1) Except as provided in subsection (a)(3), and subject to paragraph (2), the rate for all plans for basic benefits guaranteed under this subchapter 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—
(i) with respect to each plan year beginning before January 1, 1978, an amount equal to $1 for each individual who was a participant in such plan during the plan year,
(ii) with respect to each plan year beginning after December 31, 1977, and before January 1, 1986, an amount equal to $2.60 for each individual who was a participant in such plan during the plan year, and 6
(iii) with respect to each plan year beginning after December 31, 1985, and before January 1, 1988, an amount equal to $8.50 for each individual who was a participant in such plan during the plan year, and
(iv) with respect to each plan year beginning after December 31, 1987, and before January 1, 1991, an amount equal to $16 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 of—
(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.
(
Editorial Notes
References in Text
The plan year within which the date of enactment of the Multiemployer Pension Plan Amendments Act of 1980 falls, referred to in subsec. (a)(3)(A)(ii), refers to the plan year within which the date of the enactment of
Amendments
2022—Subsec. (a)(3)(E)(i).
Subsec. (a)(8)(A)(viii).
Subsec. (a)(8)(B).
Subsec. (a)(8)(D)(vii).
2021—Subsec. (a)(3)(A)(vi).
Subsec. (a)(3)(A)(vii).
Subsec. (a)(3)(A)(viii).
Subsec. (a)(3)(N).
2019—Subsec. (a)(3)(A)(i).
Subsec. (a)(3)(A)(vii).
Subsec. (a)(3)(E).
Subsec. (a)(3)(E)(v).
Subsec. (a)(8)(A).
Subsec. (a)(8)(E).
2015—Subsec. (a)(3)(A)(i)(VI) to (VIII).
Subsec. (a)(3)(G).
Subsec. (a)(3)(G)(i)(II).
Subsec. (a)(8)(A)(v) to (vii).
Subsec. (a)(8)(C).
Subsec. (a)(8)(C)(iv) to (vi).
Subsec. (a)(8)(D)(v) to (vii).
2014—Subsec. (a)(3)(A)(v), (vi).
Subsec. (a)(3)(M).
2013—Subsec. (a)(3)(A)(i)(III).
Subsec. (a)(3)(A)(i)(IV), (V).
Subsec. (a)(3)(E)(i)(I).
Subsec. (a)(3)(E)(i)(II).
Subsec. (a)(3)(E)(i)(III).
Subsec. (a)(3)(F).
Subsec. (a)(3)(G).
Subsec. (a)(3)(H) to (J).
Subsec. (a)(3)(K).
Subsec. (a)(3)(L).
Subsec. (a)(8)(A)(iv).
Subsec. (a)(8)(C)(ii).
Subsec. (a)(8)(C)(iii).
Subsec. (a)(8)(D)(iv).
2012—Subsec. (a)(3)(A)(i).
Subsec. (a)(3)(A)(iv).
Subsec. (a)(3)(A)(v).
Subsec. (a)(3)(E)(i).
Subsec. (a)(3)(E)(ii).
Subsec. (a)(3)(E)(iv).
Subsec. (a)(3)(F).
Subsec. (a)(3)(F)(i)(II).
Subsec. (a)(3)(I).
Subsec. (a)(3)(J).
Subsec. (a)(8).
2008—Subsec. (a)(3)(A)(i).
2006—Subsec. (a)(3)(A)(i).
Subsec. (a)(3)(A)(iii).
Subsec. (a)(3)(A)(iv).
Subsec. (a)(3)(B).
Subsec. (a)(3)(E)(i).
Subsec. (a)(3)(E)(iii).
Subsec. (a)(3)(E)(iii)(V).
Subsec. (a)(3)(E)(iv).
Subsec. (a)(3)(F).
Subsec. (a)(3)(G).
Subsec. (a)(3)(H).
Subsec. (a)(7).
Subsec. (a)(7)(C)(ii).
Subsec. (a)(7)(E).
2004–Subsec. (a)(3)(E)(iii)(IV).
Subsec. (a)(3)(E)(iii)(V).
2002—Subsec. (a)(3)(E)(iii)(IV).
1994—Subsec. (a)(3)(E)(iii).
Subsec. (a)(3)(E)(iv), (v).
"(iv)(I) Except as provided in this clause, the aggregate increase in the premium payable with respect to any participant by reason of this subparagraph shall not exceed $53.
"(II) If an employer made contributions to a plan during 1 or more of the 5 plan years preceding the 1st plan year to which this subparagraph applies in an amount not less than the maximum amount allowable as a deduction with respect to such contributions under
1990—Subsec. (a)(3)(A)(i).
Subsec. (a)(3)(E)(ii).
Subsec. (a)(3)(E)(iv)(I).
Subsec. (c)(1)(A)(iv).
1989—Subsec. (a)(3)(E)(v).
Subsec. (c)(1)(A)(iii).
1987—Subsec. (a)(3)(A)(i).
Subsec. (a)(3)(E).
Subsec. (c)(1)(A).
1986—Subsec. (a)(1).
Subsec. (a)(2).
Subsec. (a)(3)(A)(i).
Subsec. (a)(4).
Subsec. (a)(6).
Subsec. (b)(3).
Subsec. (c)(1)(A).
1980—Subsec. (a).
Subsec. (b).
Subsec. (c).
Statutory Notes and Related Subsidiaries
Change of Name
Committee on Education and Labor of House of Representatives changed to Committee on Education and the Workforce of House of Representatives by House Resolution No. 5, One Hundred Eighteenth Congress, Jan. 9, 2023.
Committee on Labor and Human Resources of Senate changed to Committee on Health, Education, Labor, and Pensions of Senate by Senate Resolution No. 20, One Hundred Sixth Congress, Jan. 19, 1999.
Effective Date of 2022 Amendment
Effective Date of 2015 Amendment
Effective Date of 2014 Amendment
Effective Date of 2013 Amendment
Effective Date of 2012 Amendment
Amendment by section 40211(b)(3)(C) of
Effective Date of 2008 Amendment
Amendment by
Effective Date of 2006 Amendment
"(1)
"(2)
"(A)
"(B)
Effective Date of 2004 Amendments
Amendment by
Amendment by
Effective Date of 1994 Amendment
"(A)
"(B)
"(i) $53, and
"(ii) the product derived by multiplying—
"(I) the excess (if any) of the amount determined under clause (i) of section 4006(a)(3)(E) of the Employee Retirement Income Security Act of 1974 [subsec. (a)(3)(E) of this section], over $53, by
"(II) the applicable percentage.
For purposes of this subparagraph, the applicable percentage shall be the percentage specified in the following table:
| For the plan year beginning: | The applicable percentage is: | |
|---|---|---|
| on or after | but before | |
| July 1, 1994 | July 1, 1995 | 20 percent |
| July 1, 1995 | July 1, 1996 | 60 percent." |
Effective Date of 1990 Amendment
Effective Date of 1989 Amendment
Amendment by
Effective Date of 1987 Amendment
Amendment by
Effective Date of 1986 Amendment
"(1)
"(2)
Effective Date of 1980 Amendment
Amendment by
Modification of Transition Rule to Pension Funding Requirements
For modification of transition rule to pension funding requirements in the case of a plan that was not required to pay a variable rate premium for the plan year beginning in 1996, has not, in any plan year beginning after 1995, merged with another plan (other than a plan sponsored by an employer that was in 1996 within the controlled group of the plan sponsor), and is sponsored by a company that is engaged primarily in the interurban or interstate passenger bus service, see section 115(a)–(c) of
Applicability of This Section to Certain Plans Maintained by Commercial Airlines
For special rules on applicability of this section to certain plans maintained by commercial airlines, see section 402 of
Transitional Rule
"(1) January 1, 1998, or
"(2) the date the regulated public utility begins to collect from utility customers rates that reflect the costs incurred or projected to be incurred for additional premiums under section 4006(a)(3)(E) of the Employee Retirement Income Security Act of 1974 [subsec. (a)(3)(E) of this section] pursuant to final and nonappealable determinations by all public utility commissions (or other authorities having jurisdiction over the rates and terms of service by the regulated public utility) that the costs are just and reasonable and recoverable from customers of the regulated public utility."
"(1)
"(2)
"(3)
Single-Employer Pension Plan Termination Insurance Premium Study
Studies and Reports Respecting Graduated Premium Rate Schedules and Union Mandated Withdrawals From Multiemployer Pension Plans
2 So in original. The period probably should be a semicolon.
3 So in original. The period probably should be a comma.
4 So in original. Probably should be followed by a semicolon.
5 So in original. Probably should be preceded by "basic".
6 So in original. The word "and" probably should not appear.
§1307. Payment of premiums
(a) Premiums payable when due; accrual; waiver or reduction
The designated payor of each plan shall pay the premiums imposed by the corporation under this subchapter with respect to that plan when they are due. Premiums under this subchapter are payable at the time, and on an estimated, advance, or other basis, as determined by the corporation. Premiums imposed by this subchapter on September 2, 1974 (applicable to that portion of any plan year during which such date occurs) are due within 30 days after such date. Premiums imposed by this subchapter on the first plan year commencing after September 2, 1974, are due within 30 days after such plan year commences. Premiums shall continue to accrue until a plan's assets are distributed pursuant to a termination procedure, or until a trustee is appointed pursuant to
(b) Late payment charge; waiver; interest on overpayment
(1) If any basic benefit premium is not paid when it is due the corporation is authorized to assess a late payment charge of not more than 100 percent of the premium payment which was not timely paid. The preceding sentence shall not apply to any payment of premium made within 60 days after the date on which payment is due, if before such date, the designated payor obtains a waiver from the corporation based upon a showing of substantial hardship arising from the timely payment of the premium. The corporation is authorized to grant a waiver under this subsection upon application made by the designated payor, but the corporation may not grant a waiver if it appears that the designated payor will be unable to pay the premium within 60 days after the date on which it is due. If any premium is not paid by the last date prescribed for a payment, interest on the amount of such premium at the rate imposed under
(2) The corporation is authorized to pay, subject to regulations prescribed by the corporation, interest on the amount of any overpayment of premium refunded to a designated payor. Interest under this paragraph shall be calculated at the same rate and in the same manner as interest is calculated for underpayments under paragraph (1).
(c) Civil action to recover premium penalty and interest
If any designated payor fails to pay a premium when due, the corporation is authorized to bring a civil action in any district court of the United States within the jurisdiction of which the plan assets are located, the plan is administered, or in which a defendant resides or is found for the recovery of the amount of the premium penalty, and interest, and process may be served in any other district. The district courts of the United States shall have jurisdiction over actions brought under this subsection by the corporation without regard to the amount in controversy.
(d) Basic benefits guarantee not stopped by designated payor's failure to pay premiums when due
The corporation shall not cease to guarantee basic benefits on account of the failure of a designated payor to pay any premium when due.
(e) Designated payor
(1) For purposes of this section, the term "designated payor" means—
(A) the contributing sponsor or plan administrator in the case of a single-employer plan, and
(B) the plan administrator in the case of a multiemployer plan.
(2) If the contributing sponsor of any single-employer plan is a member of a controlled group, each member of such group shall be jointly and severally liable for any premiums required to be paid by such contributing sponsor. For purposes of the preceding sentence, the term "controlled group" means any group treated as a single employer under subsection (b), (c), (m), or (o) of
(
Editorial Notes
Amendments
2006—Subsec. (b).
1989—Subsec. (b).
1987—Subsecs. (a) to (d).
Subsec. (e).
1980—Subsec. (a).
Statutory Notes and Related Subsidiaries
Effective Date of 2006 Amendment
Effective Date of 1989 Amendment
Amendment by
Effective Date of 1987 Amendment
Amendment by
Effective Date of 1980 Amendment
Amendment by
Pension Payment Acceleration
§1308. Annual report by the corporation
(a) As soon as practicable after the close of each fiscal year the corporation shall transmit to the President and the Congress a report relative to the conduct of its business under this subchapter for that fiscal year. The report shall include financial statements setting forth the finances of the corporation at the end of such fiscal year and the result of its operations (including the source and application of its funds) for the fiscal year and shall include an actuarial evaluation of the expected operations and status of the funds established under
(b) The report under subsection (a) shall include—
(1) a summary of the Pension Insurance Modeling System microsimulation model, including the specific simulation parameters, specific initial values, temporal parameters, and policy parameters used to calculate the financial statements for the corporation;
(2) a comparison of—
(A) the average return on investments earned with respect to assets invested by the corporation for the year to which the report relates; and
(B) an amount equal to 60 percent of the average return on investment for such year in the Standard & Poor's 500 Index, plus 40 percent of the average return on investment for such year in the Lehman Aggregate Bond Index (or in a similar fixed income index); and
(3) a statement regarding the deficit or surplus for such year that the corporation would have had if the corporation had earned the return described in paragraph (2)(B) with respect to assets invested by the corporation.
(
Editorial Notes
Amendments
2006—
§1309. Portability assistance
The corporation shall provide advice and assistance to individuals with respect to evaluating the economic desirability of establishing individual retirement accounts or other forms of individual retirement savings for which a deduction is allowable under
(
Editorial Notes
Amendments
1989—
Statutory Notes and Related Subsidiaries
Effective Date of 1989 Amendment
Amendment by
§1310. Authority to require certain information
(a) Information required
Each person described in subsection (b) shall provide the corporation annually, on or before a date specified by the corporation in regulations, with—
(1) such records, documents, or other information that the corporation specifies in regulations as necessary to determine the liabilities and assets of plans covered by this subchapter; and
(2) copies of such person's audited (or, if unavailable, unaudited) financial statements, and such other financial information as the corporation may prescribe in regulations.
(b) Persons required to provide information
The persons covered by subsection (a) are each contributing sponsor, and each member of a contributing sponsor's controlled group, of a single-employer plan covered by this subchapter, if—
(1) the funding target attainment percentage (as defined in subsection (d)) at the end of the preceding plan year of a plan maintained by the contributing sponsor or any member of its controlled group is less than 80 percent;
(2) the conditions for imposition of a lien described in section 1083(k)(1)(A) and (B) or 1085a(g)(1)(A) and (B) of this title or section 430(k)(1)(A) and (B) or 433(g)(1)(A) and (B) of title 26 have been met with respect to any plan maintained by the contributing sponsor or any member of its controlled group; or
(3) minimum funding waivers in excess of $1,000,000 have been granted with respect to any plan maintained by the contributing sponsor or any member of its controlled group, and any portion thereof is still outstanding.
(c) Information exempt from disclosure requirements
Any information or documentary material submitted to the corporation pursuant to this section shall be exempt from disclosure under
(d) Additional information required
(1) In general
The information submitted to the corporation under subsection (a) shall include—
(A) the amount of benefit liabilities under the plan determined using the assumptions used by the corporation in determining liabilities;
(B) the funding target of the plan determined as if the plan has been in at-risk status for at least 5 plan years; and
(C) the funding target attainment percentage of the plan.
(2) Definitions
For purposes of this subsection:
(A) Funding target
The term "funding target" has the meaning provided under
(B) Funding target attainment percentage
The term "funding target attainment percentage" has the meaning provided under
(C) At-risk status
The term "at-risk status" has the meaning provided in
(3) Pension stabilization disregarded
For purposes of this section, the segment rates used in determining the funding target and funding target attainment percentage shall be determined by not taking into account any adjustment under section 1083(h)(2)(C)(iv) 1 of this title.
(e) Notice to Congress
The corporation shall, on an annual basis, submit to the Committee on Health, Education, Labor, and Pensions and the Committee on Finance of the Senate and the Committee on Education and the Workforce and the Committee on Ways and Means of the House of Representatives, a summary report in the aggregate of the information submitted to the corporation under this section.
(
Editorial Notes
References in Text
Amendments
2014—Subsec. (b)(2).
2012—Subsec. (d)(3).
2008—Subsec. (d)(2)(B).
2006—Subsec. (b)(1).
Subsec. (b)(2).
Subsecs. (d), (e).
Statutory Notes and Related Subsidiaries
Effective Date of 2014 Amendment
Amendment by
Effective Date of 2012 Amendment
Amendment by
Effective Date of 2008 Amendment
Amendment by
Effective Date of 2006 Amendment
Amendment by section 108(b)(3) of
Effective Date
Applicability of Amendments by Subtitles A and B of Title I of Pub. L. 109–280
For special rules on applicability of amendments by subtitles A (§§101–108) and B (§§111–116) of title I of
1 See References in Text note below.
§1311. Repealed. Pub. L. 109–280, title V, §501(b)(1), Aug. 17, 2006, 120 Stat. 939
Section,
Statutory Notes and Related Subsidiaries
Effective Date of Repeal
Repeal applicable to plan years beginning after Dec. 31, 2006, see section 501(d)(1) of