Title 29 — Labor
Chapter 18 — Employee Retirement Income Security Program
§ 1322. Single-employer plan benefits guaranteed
Statutory text
Nonforfeitable benefits
Subject to the limitations contained in subsection (b), the corporation shall guarantee, in accordance with this section, the payment of all nonforfeitable benefits (other than benefits becoming nonforfeitable solely on account of the termination of a plan) under a single-employer plan which terminates at a time when this subchapter applies to it.
Exceptions
Except to the extent provided in paragraph (7)—
no benefits provided by a plan which has been in effect for less than 60 months at the time the plan terminates shall be guaranteed under this section, and
any increase in the amount of benefits under a plan resulting from a plan amendment which was made, or became effective, whichever is later, within 60 months before the date on which the plan terminates shall be disregarded.
For purposes of this subsection, the time a successor plan (within the meaning of section 1321(a) of this title) has been in effect includes the time a previously established plan (within the meaning of section 1321(a) of this title) was in effect. For purposes of determining what benefits are guaranteed under this section in the case of a plan to which section 1321 of this title does not apply on , the 60-month period referred to in paragraph (1) shall be computed beginning on the first date on which such section does apply to the plan.
The amount of monthly benefits described in subsection (a) provided by a plan, which are guaranteed under this section with respect to a participant, shall not have 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 lesser of—
his average monthly gross income from his employer during the 5 consecutive calendar year period (or, if less, during the number of calendar years in such period in which he actively participates in the plan) during which his gross income from that employer was greater than during any other such period with that employer determined by dividing 1⁄12 of the sum of all such gross income by the number of such calendar years in which he had such gross income, or
$750 multiplied by a fraction, the numerator of which is the contribution and benefit base (determined under section 230 of the Social Security Act [42 U.S.C. 430]) in effect at the time the plan terminates and the denominator of which is such contribution and benefit base in effect in calendar year 1974.
The provisions of this paragraph do not apply to non-basic benefits. The maximum guaranteed monthly benefit shall not be reduced solely on account of the age of a participant in the case of a benefit payable by reason of disability that occurred on or before the termination date, if the participant demonstrates to the satisfaction of the corporation that the Social Security Administration has determined that the participant satisfies the definition of disability under title II or XVI of the Social Security Act [42 U.S.C. 401 et seq.; 1381 et seq.], and the regulations thereunder. If a benefit payable by reason of disability is converted to an early or normal retirement benefit for reasons other than a change in the health of the participant, such early or normal retirement benefit shall be treated as a continuation of the benefit payable by reason of disability and this subparagraph 1 shall continue to apply.
The actuarial value of a benefit, for purposes of this subsection, shall be determined in accordance with regulations prescribed by the corporation.
For purposes of paragraph (3)—
the term “gross income” means “earned income” within the meaning of section 911(b) of title 26 (determined without regard to any community property laws),
in the case of a participant in a plan under which contributions are made by more than one employer, amounts received as gross income from any employer under that plan shall be aggregated with amounts received from any other employer under that plan during the same period, and
any non-basic benefit shall be disregarded.
For purposes of this paragraph, the term “majority owner” means an individual who, at any time during the 60-month period ending on the date the determination is being made—
owns the entire interest in an unincorporated trade or business,
in the case of a partnership, is a partner who owns, directly or indirectly, 50 percent or more of either the capital interest or the profits interest in such partnership, or
in the case of a corporation, owns, directly or indirectly, 50 percent or more in value of either the voting stock of that corporation or all the stock of that corporation.
For purposes of clause (iii), the constructive ownership rules of section 1563(e) of title 26 (other than paragraph (3)(C) thereof) shall apply, including the application of such rules under section 414(c) of title 26.
In the case of a participant who is a majority owner, the amount of benefits guaranteed under this section shall equal the product of—
a fraction (not to exceed 1) the numerator of which is the number of years from the later of the effective date or the adoption date of the plan to the termination date, and the denominator of which is 10, and
the amount of benefits that would be guaranteed under this section if the participant were not a majority owner.
No benefits accrued under a plan after the date on which the Secretary of the Treasury issues notice that he has determined that any trust which is a part of a plan does not meet the requirements of section 401(a) of title 26, or that the plan does not meet the requirements of section 404(a)(2) of title 26, are guaranteed under this section unless such determination is erroneous. This subparagraph does not apply if the Secretary subsequently issues a notice that such trust meets the requirements of section 401(a) of title 26 or that the plan meets the requirements of section 404(a)(2) of title 26 and if the Secretary determines that the trust or plan has taken action necessary to meet such requirements during the period between the issuance of the notice referred to in the preceding sentence and the issuance of the notice referred to in this sentence.
No benefits accrued under a plan after the date on which an amendment of the plan is adopted which causes the Secretary of the Treasury to determine that any trust under the plan has ceased to meet the requirements of section 401(a) of title 26 or that the plan has ceased to meet the requirements of section 404(a)(2) of title 26, are guaranteed under this section unless such determination is erroneous. This subparagraph shall not apply if the amendment is revoked as of the date it was first effective or amended to comply with such requirements.
Benefits described in paragraph (1) are guaranteed only to the extent of the greater of—
20 percent of the amount which, but for the fact that the plan or amendment has not been in effect for 60 months or more, would be guaranteed under this section, or
$20 per month,
multiplied by the number of years (but not more than 5) the plan or amendment, as the case may be, has been in effect. In determining how many years a plan or amendment has been in effect for purposes of this paragraph, the first 12 months beginning with the date on which the plan or amendment is made or first becomes effective (whichever is later) constitutes one year, and each consecutive period of 12 months thereafter constitutes an additional year. This paragraph does not apply to benefits payable under a plan unless the corporation finds substantial evidence that the plan was terminated for a reasonable business purpose and not for the purpose of obtaining the payment of benefits by the corporation under this subchapter.
If an unpredictable contingent event benefit (as defined in section 1056(g)(1) of this title) is payable by reason of the occurrence of any event, this section shall be applied as if a plan amendment had been adopted on the date such event occurred.
Payment by corporation to participants and beneficiaries of recovery percentage of outstanding amount of benefit liabilities
In addition to benefits paid under the preceding provisions of this section with respect to a terminated plan, the corporation shall pay the portion of the amount determined under paragraph (2) which is allocated with respect to each participant under section 1344(a) of this title. Such payment shall be made to such participant or to such participant’s beneficiaries (including alternate payees, within the meaning of section 1056(d)(3)(K) of this title).
The amount determined under this paragraph is an amount equal to the product derived by multiplying—
the outstanding amount of benefit liabilities under the plan (including interest calculated from the termination date), by
the applicable recovery ratio.
In general.—
Except as provided in subparagraph (C), the term “recovery ratio” means the ratio which—
the sum of the values of all recoveries under section 1362, 1363, or 1364 of this title, determined by the corporation in connection with plan terminations described under subparagraph (B), bears to
the sum of all unfunded benefit liabilities under such plans as of the termination date in connection with any such prior termination.
A plan termination described in this subparagraph is a termination with respect to which—
the corporation has determined the value of recoveries under section 1362, 1363, or 1364 of this title, and
notices of intent to terminate were provided (or in the case of a termination by the corporation, a notice of determination under section 1342 of this title was issued) during the 5-Federal fiscal year period ending with the third fiscal year preceding the fiscal year in which occurs the date of the notice of intent to terminate (or the notice of determination under section 1342 of this title) with respect to the plan termination for which the recovery ratio is being determined.
In the case of a terminated plan with respect to which the outstanding amount of benefit liabilities exceeds $20,000,000, for purposes of this section, the term “recovery ratio” means, with respect to the termination of such plan, the ratio of—
the value of the recoveries of the corporation under section 1362, 1363, or 1364 of this title in connection with such plan, to
the amount of unfunded benefit liabilities under such plan as of the termination date.
Determinations under this subsection shall be made by the corporation. Such determinations shall be binding unless shown by clear and convincing evidence to be unreasonable.
Authorization to guarantee other classes of benefits
The corporation is authorized to guarantee the payment of such other classes of benefits and to establish the terms and conditions under which such other classes of benefits are guaranteed as it determines to be appropriate.
Nonforfeitability of preretirement survivor annuity
For purposes of subsection (a), a qualified preretirement survivor annuity (as defined in section 1055(e)(1) of this title) with respect to a participant under a terminated single-employer plan shall not be treated as forfeitable solely because the participant has not died as of the termination date.
Effective date of plan amendments
For purposes of this section, the effective date of a plan amendment described in section 1054(i)(1) of this title shall be the effective date of the plan of reorganization of the employer described in section 1054(i)(1) of this title or, if later, the effective date stated in such amendment.
Bankruptcy filing substituted for termination date
If a contributing sponsor of a plan has filed or has had filed against such person a petition seeking liquidation or reorganization in a case under title 11 or under any similar Federal law or law of a State or political subdivision, and the case has not been dismissed as of the termination date of the plan, then this section shall be applied by treating the date such petition was filed as the termination date of the plan.
Special rule for plans electing certain funding requirements
If any plan makes an election under section 402(a)(1) of the Pension Protection Act of 2006 and is terminated effective before the end of the 10-year period beginning on the first day of the first applicable plan year—
this section shall be applied—
by treating the first day of the first applicable plan year as the termination date of the plan, and
by determining the amount of guaranteed benefits on the basis of plan assets and liabilities as of such assumed termination date, and
notwithstanding section 1344(a) of this title, plan assets shall first be allocated to pay the amount, if any, by which—
the amount of guaranteed benefits under this section (determined without regard to paragraph (1) and on the basis of plan assets and liabilities as of the actual date of plan termination), exceeds
the amount determined under paragraph (1).
Footnotes
- 1 So in original.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
Employee Retirement Income Security Act of 1974
Pub. L. 93–406 title IV § 4022 · 88 Stat. 829
Enacted · 29 U.S.C. § 1322
Pub. L. 93–406, title IV, § 4022, Sept. 2, 1974, 88 Stat. 1016
Source evidence
Code source credit
Pub. L. 93–406, title IV, § 4022, Sept. 2, 1974, 88 Stat. 1016Enacted provision · exact public law section
Sec. 4022. benefits guaranteed (a) Subject to the limitations contained in subsection (b), 29 USC 1322. the corporation shall guarantee the payment of all nonforfeitable benefits (other than benefits becoming nonforfeitable solely on account of the termination of a plan) under the terms of a plan which terminates at a time when section 4021 applies to it. (b) (1) Except to the extent provided in paragraph (8)— (A) no benefits provided by a plan which has been in effect for less than 60 months at the time the plan terminates shall be guaranteed under this section, and (B) any increase in the amount of benefits under a plan resulting from a plan amendment which was made, or became effective, whichever is later, within 60 months before the date on which the plan terminates shall be disregarded. (2) For purposes of this subsection, the time a successor plan (within the meaning of section 4021(a)) has been in effect includes the time a previously established plan (within the meaning of section 4021(a)) was in effect. For purposes of determining what benefits are guaranteed under this section in the case of a plan to which section 4021 does not apply on the day after the date of enactment of this Act, the 60 month period referred to in paragraph (1) shall be computed beginning on the first date on which such section does apply to the plan. (3) The amount of monthly benefits described in subsection (a) provided by a plan, which are guaranteed under this section with respect to a participant, shall not have 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 lesser of— (A) his average monthly gross income from his employer during the 5 consecutive calendar year period (or, if less, during the number of calendar years in such period in which he actively participates in the plan) during which his gross income from that employer was greater than during any other such period with that employer determined by dividing 1/12 of the sum of all such gross income by the number of such calendar years in which he had such gross income, or (B) $750 multiplied by a fraction, the numerator of which is the contribution and benefit base (determined under section 230 of the Social Security Act) in effect at the time the plan terminates 42 USC 1305. and the denominator of which is such contribution and benefit base in effect in calendar year 1974. The provisions of this paragraph do not apply to non-basic benefits. (4) (A) The actuarial value of a benefit, for purposes of this subsection, shall be determined in accordance with regulations prescribed by the corporation. (B) For purposes of paragraph (3)— (i) the term “gross income” means “earned income” within the meaning of section 911(b) of the Internal Revenue Code of 1954 26 USC 911. (determined without regard to any community property laws), (ii) in the case of a participant in a plan under which contributions are made by more than one employer, amounts received as gross income from any employer under that plan shall be aggregated with amounts received from any other employer under that plan during the same period, and (iii) any non-basic benefit shall be disregarded. (5) Notwithstanding paragraph (3), no person shall receive from the corporation for basic benefits with respect to a participant an amount, or amounts, with an actuarial value which exceeds a monthly benefit in the form of a life annuity commencing at age 65 equal to the amount determined under paragraph (3)(B) at the time of the last plan termination. (6) (A) For purposes of this title, the term “substantial owner” “Substantial owner.” means an individual who— (i) owns the entire interest in an unincorporated trade or business, (ii) in the case of a partnership, is a partner who owns, directly or indirectly, more than 10 percent of either the capital interest or the profits interest in such partnership, or (iii) in the case of a corporation, owns, directly or indirectly, more than 10 percent in value of either the voting stock of that corporation or all the stock of that corporation. For purposes of clause (iii) the constructive ownership rules of section 1563(e) of the Internal Revenue Code of 1954 shall apply (determined 26 USC 1563. without regard to section 1563(e)(3)(C)). For purposes of this title an individual is also treated as a substantial owner with respect to a plan if, at any time within the 60 months preceding the date on which the determination is made, he was a substantial owner under the plan. (B) In the case of a participant in a plan under which benefits have not been increased by reason of any plan amendments and who is covered by the plan as a substantial owner, the amount of benefits guaranteed under this section shall not exceed the product of— (i) a fraction (not to exceed 1) the numerator of which is the number of years the substantial owner was an active participant in the plan, and the denominator of which is 30, and (ii) the amount of the substantial owner’s monthly benefits guaranteed under subsection (a) (as limited under paragraph (3) of this subsection). (C) In the case of a participant in a plan, other than a plan described in subparagraph (B), who is covered by the plan as a substantial owner, the amount of the benefit guaranteed under this section shall, under regulations prescribed by the corporation, treat each benefit increase attributable to a plan amendment as if it were provided under a new plan. The benefits guaranteed under this section with respect to all such amendments shall not exceed the amount which would be determined under subparagraph (B) if subparagraph (B) applied. (7) (A) No benefits accrued under a plan after the date on which the Secretary of the Treasury issues notice that he has determined that any trust which is a part of a plan does not meet the requirements of section 401(a) of the Internal Revenue Code of 1954, or that the plan 26 USC 401. 26 USC 404. does not meet the requirements of section 404(a)(2) of such Code, are guaranteed under this section unless such determination is erroneous. This subparagraph does not apply if the Secretary subsequently issues a notice that such trust meets the requirements of section 401(a) of such Code or that the plan meets the requirements of section 404(a)(2) of such Code and if the Secretary determines that the trust or plan has taken action necessary to meet such requirements during the period between the issuance of the notice referred to in the preceding sentence and the issuance of the notice referred to in this sentence. (B) No benefits accrued under a plan after the date on which an amendment of the plan is adopted which causes the Secretary of the Treasury to determine that any trust under the plan has ceased to meet the requirements of section 401(a) of the Internal Revenue Code of 1954 or that the plan has ceased to meet the requirements of section 404(a)(2) of such Code, are guaranteed under this section unless such determination is erroneous. This subparagraph shall not apply if the amendment is revoked as of the date it was first effective or amended to comply with such requirements. (8) Benefits described in paragraph (1) are guaranteed only to the extent of the greater of— (A) 20 percent of the amount which, but for the fact that the plan or amendment has not been in effect for 60 months or more, would be guaranteed under this section, or (B) $20 per month, multiplied by the number of years (but not more than 5) the plan or amendment, as the case may be, has been in effect. In determining how many years a plan or amendment has been in effect for purposes of this paragraph, the first 12 months following the date on which the plan or amendment is made or first becomes effective (whichever is later) constitutes one year, and each consecutive period of 12 months thereafter constitutes an additional year. This paragraph does not apply to benefits payable under a plan unless the corporation finds substantial evidence that the plan was terminated for a reasonable business purpose and not for the purpose of obtaining the payment of benefits by the corporation under this title. (c) The corporation is authorized to guarantee the payment of such other classes of benefits and to establish the terms and conditions under which such other classes of benefits are guaranteed as it determines to be appropriate.Multiemployer Pension Plan Amendments Act of 1980
Pub. L. 96–364 § 403(c)(2) · 94 Stat. 1208
Inserted · 29 U.S.C. § 1322(a)
Pub. L. 96–364, § 403(c)(2), inserted “, in accordance with this section,” after “guarantee” and “single-employer” before “plan which”
Struck · 29 U.S.C. § 1322(a)
Pub. L. 96–364, § 403(c)(2), struck out “the terms of” after “under”
Source evidence
Code amendment note
Subsec. (a). Pub. L. 96–364, § 403(c)(2), inserted “, in accordance with this section,” after “guarantee” and “single-employer” before “plan which”, and struck out “the terms of” after “under”.Enacted provision · exact public law section
(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”;Multiemployer Pension Plan Amendments Act of 1980
Pub. L. 96–364 § 403(c)(3) · 94 Stat. 1208
Substituted · 29 U.S.C. § 1322(b)
Pub. L. 96–364, § 403(c)(3), (4), in par. (1) substituted “(7)” for “(8)”
Struck · 29 U.S.C. § 1322(b)
Pub. L. 96–364, § 403(c)(3), (4), in par. (1) struck out par. (5) relating to receipt of a life annuity commencing at age 65
Redesignated · 29 U.S.C. § 1322(b)
Pub. L. 96–364, § 403(c)(3), (4), in par. (1) redesignated pars. (6) to (8) as (5) to (7), respectively
Source evidence
Code amendment note
Subsec. (b). Pub. L. 96–364, § 403(c)(3), (4), in par. (1) substituted “(7)” for “(8)”, struck out par. (5) relating to receipt of a life annuity commencing at age 65, and redesignated pars. (6) to (8) as (5) to (7), respectively.Enacted provision · exact public law section
(3) in subsection (b)(1), by striking out “(8)” and inserting in lieu thereof “(7)”; andSingle-Employer Pension Plan Amendments Act of 1986
Pub. L. 99–272 § 11016(c)(8) · 100 Stat. 82
Substituted · 29 U.S.C. § 1322(b)(7)
Pub. L. 99–272, § 11016(c)(8), in provisions following subpar. (B) substituted “12 months beginning with” for “12 months following”
Source evidence
Code amendment note
Subsec. (b)(7). Pub. L. 99–272, § 11016(c)(8), in provisions following subpar. (B) substituted “12 months beginning with” for “12 months following”.Enacted provision · exact public law section
(8) Effective years.— Section 4022(b)(7) (29 U.S.C. 1322(b)(7)) is amended by striking out “following” and inserting in lieu thereof “beginning with”.Single-Employer Pension Plan Amendments Act of 1986
Pub. L. 99–272 § 11016(c)(9) · 100 Stat. 82
Added · 29 U.S.C. § 1322(d)
Pub. L. 99–272, § 11016(c)(9), added subsec. (d)
Source evidence
Code amendment note
Subsec. (d). Pub. L. 99–272, § 11016(c)(9), added subsec. (d).Enacted provision · exact public law section
(9) Treatment of qualified preretirement survivor annuities.— Section 4022 (29 U.S.C. 1322) is amended by adding at the end thereof the following new subsection: “(d) For purposes of subsection (a), a qualified preretirement 29 USC 1055. survivor annuity (as defined in section 205(e)(1)) with respect to a participant under a terminated single-employer plan shall not be treated as forfeitable solely because the participant has not died as of the termination date.”.Pub. L. 100–203 title IX § 9312(b)(3)(A) · 101 Stat. 1330
Added · 29 U.S.C. § 1322(c)(e)
Pub. L. 100–203 added subsec. (c)
Redesignated · 29 U.S.C. § 1322(c)(e)
Pub. L. 100–203 redesignated former subsecs. (c) and (d) as (d) and (e), respectively
Source evidence
Code amendment note
Subsecs. (c) to (e). Pub. L. 100–203 added subsec. (c) and redesignated former subsecs. (c) and (d) as (d) and (e), respectively.Enacted provision · exact public law section
(b) Conforming Amendments.— (1) Elimination of employer liability to section 4049 trust.— (A) Repeal.— Subsection (c) of section 4062 of ERISA (29 U.S.C. 1362(c)) is repealed. (B) Conforming amendments.— Section 4062 of ERISA is further amended by redesignating subsections (d), (e), and (f) as subsections (c), (d), and (e), respectively. (2) Increase in employer liability to the corporation.— (A) In general.— Subparagraph (A) of section 4062(b)(1) of ERISA (29 U.S.C. 1362(b)(1)(A)) is amended to read as follows: “(A) In general.— Except as provided in subparagraph Regulations. (B), the liability to the corporation of a person described in subsection (a) shall be the total amount of the unfunded benefit liabilities (as of the termination date) to all participants and beneficiaries under the plan, together with interest (at a reasonable rate) calculated from the termination date in accordance with regulations prescribed by the corporation.” (B) Lien limited to 30 percent of net worth.— (i) Subsection (a) of section 4068 of ERISA (29 U.S.C. 1368(a)) is amended by striking out “to the extent of an amount equal to the unpaid amount described in section 4062(b)(l)(A)(i)” each place it appears and inserting in lieu thereof “to the extent such amount does not exceed 30 percent of the collective net worth of all persons described in section 4062(a)”. (ii) Title IV of ERISA (29 U.S.C. 4001 et seq.) is amended by transferring subsection (e) of section 4062 of ERISA (29 U.S.C. 1362(e)) to the end of section 4068 of ERISA (29 U.S.C. 1368) and by redesignating such subsection as subsection (f). (C) Treatment of multiple controlled groups.— (i) In general.— So much of section 4064(b) of ERISA (29 U.S.C. 13640t))) as precedes the second sentence is amended to read as follows:Revenue Reconciliation Act of 1989
Pub. L. 101–239 § 7894(g)(3)(B) · 103 Stat. 2106
Substituted · 29 U.S.C. § 1322(a)
Pub. L. 101–239, § 7894(g)(3)(B), substituted “this subchapter” for “section 1321 of this title”
Source evidence
Code amendment note
Subsec. (a). Pub. L. 101–239, § 7894(g)(3)(B), substituted “this subchapter” for “section 1321 of this title”.Enacted provision · exact public law section
(B) Section 4022(a) of ERISA is amended by striking “section 4021” and inserting “this title”.Revenue Reconciliation Act of 1989
Pub. L. 101–239 § 7894(g)(1) · 103 Stat. 2106
Substituted · 29 U.S.C. § 1322(b)(2)
Pub. L. 101–239, § 7894(g)(1), substituted “60-month” for “60 month”
Source evidence
Code amendment note
Subsec. (b)(2). Pub. L. 101–239, § 7894(g)(1), substituted “60-month” for “60 month”.Enacted provision · exact public law section
(1) Section 4022(b)(2) of ERISA is amended by striking “60 29 USC 1322. month” and inserting “60-month”.Revenue Reconciliation Act of 1989
Pub. L. 101–239 § 7891(a)(1) · 103 Stat. 2106
Substituted · 29 U.S.C. § 1322(b)(4)(B)(i); 29 U.S.C. § 1322(b)(4)(5)(A); 29 U.S.C. § 1322(b)(4)(B)(6)
Pub. L. 101–239, § 7891(a)(1), substituted “Internal Revenue Code of 1986” for “Internal Revenue Code of 1954”, which for purposes of codification was translated as “title 26” thus requiring no change in text
Source evidence
Code amendment note
Subsec. (b)(4)(B)(i), (5)(A), (6). Pub. L. 101–239, § 7891(a)(1), substituted “Internal Revenue Code of 1986” for “Internal Revenue Code of 1954”, which for purposes of codification was translated as “title 26” thus requiring no change in text.Enacted provision · exact public law section
(1) Titles I, III, and IV of ERISA (other than sections 3(37)(E), 29 USC 1001 et seq. 301(a)(7), and 308, the last sentence of section 408(d), and sections 414(c), 4001(a)(3)(ii), and 4303) are each amended by striking “Internal Revenue Code of 1954” each place it appears and inserting “Internal Revenue Code of 1986”.Revenue Reconciliation Act of 1989
Pub. L. 101–239 § 7881(f)(11) · 103 Stat. 2106
Substituted · 29 U.S.C. § 1322(c)(1)
Pub. L. 101–239, § 7881(f)(11), substituted “under section 1344(a) of this title. Such payment shall be made to such participant” for “under section 1344(a) of this title, to such participant”
Source evidence
Code amendment note
Subsec. (c)(1). Pub. L. 101–239, § 7881(f)(11), substituted “under section 1344(a) of this title. Such payment shall be made to such participant” for “under section 1344(a) of this title, to such participant”.Enacted provision · exact public law section
(11) Section 4022(c)(1) of ERISA is amended by striking “section 29 USC 1322. 4044(a), to such participant” and inserting “section 4044(a). Such payment shall be made to such participant”.Revenue Reconciliation Act of 1989
Pub. L. 101–239 § 7881(f)(4) · 103 Stat. 2106
Struck · 29 U.S.C. § 1322(c)(1)
Pub. L. 101–239, § 7881(f)(4), struck out “(in the case of a deceased participant)” before “to such participant’s beneficiaries”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 101–239, § 7881(f)(4), struck out “(in the case of a deceased participant)” before “to such participant’s beneficiaries”.Enacted provision · exact public law section
(4) Section 4022(c)(1) of ERISA is amended by striking “(in the case of a deceased participant)”.Revenue Reconciliation Act of 1989
Pub. L. 101–239 § 7881(f)(5) · 103 Stat. 2106
Inserted · 29 U.S.C. § 1322(c)(3)(B)(ii)
Pub. L. 101–239, § 7881(f)(5), inserted before period at end “, and during the 5-Federal fiscal year period ending with the fiscal year preceding the fiscal year in which occurs the date of the notice of intent to terminate with respect to the plan termination for which the recovery ratio is being determined”
Source evidence
Code amendment note
Subsec. (c)(3)(B)(ii). Pub. L. 101–239, § 7881(f)(5), inserted before period at end “, and during the 5-Federal fiscal year period ending with the fiscal year preceding the fiscal year in which occurs the date of the notice of intent to terminate with respect to the plan termination for which the recovery ratio is being determined”.Enacted provision · exact public law section
(5) Section 4022(c)(3)(B)(ii) of ERISA is amended by inserting “, and during the 5-Federal fiscal year period ending with the fiscal year preceding the fiscal year in which occurs the date of the notice of intent to terminate with respect to the plan termination for which the recovery ratio is being determined” after “1987”.Retirement Protection Act of 1994
Pub. L. 103–465 § 777(a) · 108 Stat. 4809
Inserted · 29 U.S.C. § 1322(b)(3)
Pub. L. 103–465, § 777(a), inserted at end “The maximum guaranteed monthly benefit shall not be reduced solely on account of the age of a participant in the case of a benefit payable by reason of disability that occurred on or before the termination date, if the participant demonstrates to the satisfaction of the corporation that the Social Security Administration has determined that the participant satisfies the definition of disability under title II or XVI of the Social Security Act, and the regulations thereunder. If a benefit payable by reason of disability is converted to an early or normal retirement benefit for reasons other than a change in the health of the participant, such early or normal retirement benefit shall be treated as a continuation of the benefit payable by reason of disability and this subparagraph shall continue to apply.”
Source evidence
Code amendment note
Subsec. (b)(3). Pub. L. 103–465, § 777(a), inserted at end “The maximum guaranteed monthly benefit shall not be reduced solely on account of the age of a participant in the case of a benefit payable by reason of disability that occurred on or before the termination date, if the participant demonstrates to the satisfaction of the corporation that the Social Security Administration has determined that the participant satisfies the definition of disability under title II or XVI of the Social Security Act, and the regulations thereunder. If a benefit payable by reason of disability is converted to an early or normal retirement benefit for reasons other than a change in the health of the participant, such early or normal retirement benefit shall be treated as a continuation of the benefit payable by reason of disability and this subparagraph shall continue to apply.”Enacted provision · exact public law section
(a) In General.— Section 4022(b)(3) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1322(b)(3)) is amended by adding at the end the following new sentences: “The maximum guaranteed monthly benefit shall not be reduced solely on account of the age of a participant in the case of a benefit payable by reason of disability that occurred on or before the termination date, if the participant demonstrates to the satisfaction of the corporation that the Social Security Administration has determined that the participant satisfies the definition of disability under title II or XVI of the Social Security Act, and the regulations thereunder. If a benefit payable by reason of disability is converted to an early or normal retirement benefit for reasons other than a change in the health of the participant, such early or normal retirement benefit shall be treated as a continuation of the benefit payable by reason of disability and this subparagraph shall continue to apply.”Retirement Protection Act of 1994
Pub. L. 103–465 § 766(c) · 108 Stat. 4809
Added · 29 U.S.C. § 1322(f)
Pub. L. 103–465, § 766(c), added subsec. (f)
Source evidence
Code amendment note
Subsec. (f). Pub. L. 103–465, § 766(c), added subsec. (f).Enacted provision · exact public law section
(c) Effective Date of Plan Amendment.— Section 4022 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1322) is amended by inserting at the end the following new subsection: “(f) For purposes of this section, the effective date of a plan amendment described in section 204(i)(1) shall be the effective date of the plan of reorganization of the employer described in section 204(i)(1) or, if later, the effective date stated in such amendment.”Pub. L. 109–280 § 407(a) · 120 Stat. 780
Amended · 29 U.S.C. § 1322(b)(5)
Pub. L. 109–280, § 407(a), amended par. (5) generally. Prior to amendment, par. (5) related to the amount of benefits guaranteed under this section in the case of a participant in a plan who was covered by the plan as a substantial owner
Source evidence
Code amendment note
Subsec. (b)(5). Pub. L. 109–280, § 407(a), amended par. (5) generally. Prior to amendment, par. (5) related to the amount of benefits guaranteed under this section in the case of a participant in a plan who was covered by the plan as a substantial owner.Enacted provision · exact public law section
(a) Modification of Phase-In of Guarantee.— Section 4022(b)(5) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1322(b)(5)) is amended to read as follows: “(5) (A) For purposes of this paragraph, the term ‘majority owner’ means an individual who, at any time during the 60-month period ending on the date the determination is being made— “(i) owns the entire interest in an unincorporated trade or business, “(ii) in the case of a partnership, is a partner who owns, directly or indirectly, 50 percent or more of either the capital interest or the profits interest in such partnership, or “(iii) in the case of a corporation, owns, directly or indirectly, 50 percent or more in value of either the voting stock of that corporation or all the stock of that corporation. For purposes of clause (iii), the constructive ownership rules of section 1563(e) of the Internal Revenue Code of 1986 (other than paragraph (3)(C) thereof) shall apply, including the application of such rules under section 414(c) of such Code. “(B) In the case of a participant who is a majority owner, the amount of benefits guaranteed under this section shall equal the product of— “(i) a fraction (not to exceed 1) the numerator of which is the number of years from the later of the effective date or the adoption date of the plan to the termination date, and the denominator of which is 10, and “(ii) the amount of benefits that would be guaranteed under this section if the participant were not a majority owner.”Effective date note
Amendment by section 402(g)(2)(A) of Pub. L. 109–280 applicable to plan years ending after Aug. 17, 2006, see section 402(j) of Pub. L. 109–280, set out as a Special Funding Rules for Certain Plans Maintained by Commercial Airlines note under section 430 of Title 26, Internal Revenue Code. Pub. L. 109–280, title IV, § 403(b), Aug. 17, 2006, 120 Stat. 928, provided that: “The amendment made by this section [amending this section] shall apply to benefits that become payable as a result of an event which occurs after July 26, 2005.” Pub. L. 109–280, title IV, § 404(c), Aug. 17, 2006, 120 Stat. 928, provided that: “The amendments made this section [amending this section and section 1344 of this title] shall apply with respect to proceedings initiated under title 11, United States Code, or under any similar Federal law or law of a State or political subdivision, on or after the date that is 30 days after the date of enactment of this Act [Aug. 17, 2006].” Amendment by section 407(a) of Pub. L. 109–280 applicable to plan terminations under section 1341(c) of this title with respect to which notices of intent to terminate are provided under section 1341(a)(2) of this title after Dec. 31, 2005, and under section 1342 of this title with respect to which notices of determination are provided under such section after such date, see section 407(d)(1) of Pub. L. 109–280, set out as a note under section 1321 of this title. Pub. L. 109–280, title IV, § 408(c), Aug. 17, 2006, 120 Stat. 932, provided that: “The amendments made by this section [amending this section and section 1344 of this title] shall apply for any termination for which notices of intent to terminate are provided (or in the case of a termination by the corporation, a notice of determination under section 4042 under the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1342] is issued) on or after the date which is 30 days after the date of enactment of this section [Aug. 17, 2006].”Pub. L. 109–280 § 403(a) · 120 Stat. 780
Added · 29 U.S.C. § 1322(b)(8)
Pub. L. 109–280, § 403(a), added par. (8)
Source evidence
Code amendment note
Subsec. (b)(8). Pub. L. 109–280, § 403(a), added par. (8).Enacted provision · exact public law section
(a) In General.— Section 4022(b) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1322(b)) is amended by adding at the end the following: “(8) If an unpredictable contingent event benefit (as defined in section 206(g)(1)) is payable by reason of the occurrence of any event, this section shall be applied as if a plan amendment had been adopted on the date such event occurred.” .Effective date note
Amendment by section 402(g)(2)(A) of Pub. L. 109–280 applicable to plan years ending after Aug. 17, 2006, see section 402(j) of Pub. L. 109–280, set out as a Special Funding Rules for Certain Plans Maintained by Commercial Airlines note under section 430 of Title 26, Internal Revenue Code. Pub. L. 109–280, title IV, § 403(b), Aug. 17, 2006, 120 Stat. 928, provided that: “The amendment made by this section [amending this section] shall apply to benefits that become payable as a result of an event which occurs after July 26, 2005.” Pub. L. 109–280, title IV, § 404(c), Aug. 17, 2006, 120 Stat. 928, provided that: “The amendments made this section [amending this section and section 1344 of this title] shall apply with respect to proceedings initiated under title 11, United States Code, or under any similar Federal law or law of a State or political subdivision, on or after the date that is 30 days after the date of enactment of this Act [Aug. 17, 2006].” Amendment by section 407(a) of Pub. L. 109–280 applicable to plan terminations under section 1341(c) of this title with respect to which notices of intent to terminate are provided under section 1341(a)(2) of this title after Dec. 31, 2005, and under section 1342 of this title with respect to which notices of determination are provided under such section after such date, see section 407(d)(1) of Pub. L. 109–280, set out as a note under section 1321 of this title. Pub. L. 109–280, title IV, § 408(c), Aug. 17, 2006, 120 Stat. 932, provided that: “The amendments made by this section [amending this section and section 1344 of this title] shall apply for any termination for which notices of intent to terminate are provided (or in the case of a termination by the corporation, a notice of determination under section 4042 under the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1342] is issued) on or after the date which is 30 days after the date of enactment of this section [Aug. 17, 2006].”Pub. L. 109–280 § 408(b)(1) · 120 Stat. 780
Amended · 29 U.S.C. § 1322(c)(3)(A)
Pub. L. 109–280, § 408(b)(1), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “Except as provided in subparagraph (C), for purposes of this subsection, the term ‘recovery ratio’ means the average ratio, with respect to prior plan terminations described in subparagraph (B), of—
Source evidence
Code amendment note
Subsec. (c)(3)(A). Pub. L. 109–280, § 408(b)(1), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “Except as provided in subparagraph (C), for purposes of this subsection, the term ‘recovery ratio’ means the average ratio, with respect to prior plan terminations described in subparagraph (B), of—“(i) the value of the recovery of the corporation under section 1362, 1363, or 1364 of this title in connection with such prior terminations, to “(ii) the amount of unfunded benefit liabilities under such plans as of the termination date in connection with such prior terminations.”
Enacted provision · exact public law section
(1) Single-employer plan benefits guaranteed.— Section 4022(c)(3)(A) of the Employee Retirement Income Security Act of 1974 29 USC 1322. (29 U.S.C. 13) is amended to read as follows: “(A) In general.— Except as provided in subparagraph (C), the term ‘recovery ratio’ means the ratio which— “(i) the sum of the values of all recoveries under section 4062, 4063, or 4064, determined by the corporation in connection with plan terminations described under subparagraph (B), bears to “(ii) the sum of all unfunded benefit liabilities under such plans as of the termination date in connection with any such prior termination.” .Effective date note
Amendment by section 402(g)(2)(A) of Pub. L. 109–280 applicable to plan years ending after Aug. 17, 2006, see section 402(j) of Pub. L. 109–280, set out as a Special Funding Rules for Certain Plans Maintained by Commercial Airlines note under section 430 of Title 26, Internal Revenue Code. Pub. L. 109–280, title IV, § 403(b), Aug. 17, 2006, 120 Stat. 928, provided that: “The amendment made by this section [amending this section] shall apply to benefits that become payable as a result of an event which occurs after July 26, 2005.” Pub. L. 109–280, title IV, § 404(c), Aug. 17, 2006, 120 Stat. 928, provided that: “The amendments made this section [amending this section and section 1344 of this title] shall apply with respect to proceedings initiated under title 11, United States Code, or under any similar Federal law or law of a State or political subdivision, on or after the date that is 30 days after the date of enactment of this Act [Aug. 17, 2006].” Amendment by section 407(a) of Pub. L. 109–280 applicable to plan terminations under section 1341(c) of this title with respect to which notices of intent to terminate are provided under section 1341(a)(2) of this title after Dec. 31, 2005, and under section 1342 of this title with respect to which notices of determination are provided under such section after such date, see section 407(d)(1) of Pub. L. 109–280, set out as a note under section 1321 of this title. Pub. L. 109–280, title IV, § 408(c), Aug. 17, 2006, 120 Stat. 932, provided that: “The amendments made by this section [amending this section and section 1344 of this title] shall apply for any termination for which notices of intent to terminate are provided (or in the case of a termination by the corporation, a notice of determination under section 4042 under the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1342] is issued) on or after the date which is 30 days after the date of enactment of this section [Aug. 17, 2006].”Pub. L. 109–280 § 408(a) · 120 Stat. 780
Amended · 29 U.S.C. § 1322(c)(3)(B)(ii)
Pub. L. 109–280, § 408(a), amended cl. (ii) generally. Prior to amendment, cl. (ii) read as follows: “notices of intent to terminate were provided after December 17, 1987, and during the 5-Federal fiscal year period ending with the fiscal year preceding the fiscal year in which occurs the date of the notice of intent to terminate with respect to the plan termination for which the recovery ratio is being determined.”
Source evidence
Code amendment note
Subsec. (c)(3)(B)(ii). Pub. L. 109–280, § 408(a), amended cl. (ii) generally. Prior to amendment, cl. (ii) read as follows: “notices of intent to terminate were provided after December 17, 1987, and during the 5-Federal fiscal year period ending with the fiscal year preceding the fiscal year in which occurs the date of the notice of intent to terminate with respect to the plan termination for which the recovery ratio is being determined.”Enacted provision · exact public law section
(a) Modification of Average Recovery Percentage of Outstanding Amount of Benefit Liabilities Payable by Corporation to Participants and Beneficiaries.— Section 4022(c)(3)(B)(ii) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1322(c)(3)(B)(ii)) is amended to read as follows: “(ii) notices of intent to terminate were provided (or in the case of a termination by the corporation, a notice of determination under section 4042 was issued) during the 5-Federal fiscal year period ending with the third fiscal year preceding the fiscal year in which occurs the date of the notice of intent to terminate (or the notice of determination under section 4042) with respect to the plan termination for which the recovery ratio is being determined.”Effective date note
Amendment by section 402(g)(2)(A) of Pub. L. 109–280 applicable to plan years ending after Aug. 17, 2006, see section 402(j) of Pub. L. 109–280, set out as a Special Funding Rules for Certain Plans Maintained by Commercial Airlines note under section 430 of Title 26, Internal Revenue Code. Pub. L. 109–280, title IV, § 403(b), Aug. 17, 2006, 120 Stat. 928, provided that: “The amendment made by this section [amending this section] shall apply to benefits that become payable as a result of an event which occurs after July 26, 2005.” Pub. L. 109–280, title IV, § 404(c), Aug. 17, 2006, 120 Stat. 928, provided that: “The amendments made this section [amending this section and section 1344 of this title] shall apply with respect to proceedings initiated under title 11, United States Code, or under any similar Federal law or law of a State or political subdivision, on or after the date that is 30 days after the date of enactment of this Act [Aug. 17, 2006].” Amendment by section 407(a) of Pub. L. 109–280 applicable to plan terminations under section 1341(c) of this title with respect to which notices of intent to terminate are provided under section 1341(a)(2) of this title after Dec. 31, 2005, and under section 1342 of this title with respect to which notices of determination are provided under such section after such date, see section 407(d)(1) of Pub. L. 109–280, set out as a note under section 1321 of this title. Pub. L. 109–280, title IV, § 408(c), Aug. 17, 2006, 120 Stat. 932, provided that: “The amendments made by this section [amending this section and section 1344 of this title] shall apply for any termination for which notices of intent to terminate are provided (or in the case of a termination by the corporation, a notice of determination under section 4042 under the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1342] is issued) on or after the date which is 30 days after the date of enactment of this section [Aug. 17, 2006].”Pub. L. 109–280 § 404(a) · 120 Stat. 780
Added · 29 U.S.C. § 1322(g)
Pub. L. 109–280, § 404(a), which directed amendment of this section, as amended by Pub. L. 109–280, by adding subsec. (g) at the end, was executed by adding subsec. (g) after subsec. (f) and before subsec. (h) to reflect the probable intent of Congress
Source evidence
Code amendment note
Subsec. (g). Pub. L. 109–280, § 404(a), which directed amendment of this section, as amended by Pub. L. 109–280, by adding subsec. (g) at the end, was executed by adding subsec. (g) after subsec. (f) and before subsec. (h) to reflect the probable intent of Congress.Enacted provision · exact public law section
(a) Guarantee.— Section 4022 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1322) is amended by adding at the end the following: “(g) Bankruptcy Filing Substituted for Termination Date.— If a contributing sponsor of a plan has filed or has had filed against such person a petition seeking liquidation or reorganization in a case under title 11, United States Code, or under any similar Federal law or law of a State or political subdivision, and the case has not been dismissed as of the termination date of the plan, then this section shall be applied by treating the date such petition was filed as the termination date of the plan.” .Effective date note
Amendment by section 402(g)(2)(A) of Pub. L. 109–280 applicable to plan years ending after Aug. 17, 2006, see section 402(j) of Pub. L. 109–280, set out as a Special Funding Rules for Certain Plans Maintained by Commercial Airlines note under section 430 of Title 26, Internal Revenue Code. Pub. L. 109–280, title IV, § 403(b), Aug. 17, 2006, 120 Stat. 928, provided that: “The amendment made by this section [amending this section] shall apply to benefits that become payable as a result of an event which occurs after July 26, 2005.” Pub. L. 109–280, title IV, § 404(c), Aug. 17, 2006, 120 Stat. 928, provided that: “The amendments made this section [amending this section and section 1344 of this title] shall apply with respect to proceedings initiated under title 11, United States Code, or under any similar Federal law or law of a State or political subdivision, on or after the date that is 30 days after the date of enactment of this Act [Aug. 17, 2006].” Amendment by section 407(a) of Pub. L. 109–280 applicable to plan terminations under section 1341(c) of this title with respect to which notices of intent to terminate are provided under section 1341(a)(2) of this title after Dec. 31, 2005, and under section 1342 of this title with respect to which notices of determination are provided under such section after such date, see section 407(d)(1) of Pub. L. 109–280, set out as a note under section 1321 of this title. Pub. L. 109–280, title IV, § 408(c), Aug. 17, 2006, 120 Stat. 932, provided that: “The amendments made by this section [amending this section and section 1344 of this title] shall apply for any termination for which notices of intent to terminate are provided (or in the case of a termination by the corporation, a notice of determination under section 4042 under the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1342] is issued) on or after the date which is 30 days after the date of enactment of this section [Aug. 17, 2006].”Pub. L. 109–280 § 402(g)(2)(A) · 120 Stat. 780
Added · 29 U.S.C. § 1322(h)
Pub. L. 109–280, § 402(g)(2)(A), added subsec. (h)
Source evidence
Code amendment note
Subsec. (h). Pub. L. 109–280, § 402(g)(2)(A), added subsec. (h).Enacted provision · exact public law section
(A) PBGC liability limited.— Section 4022 of the Employee Retirement Income Security Act of 1974, as amended by this Act, 29 USC 1322. is amended by adding at the end the following new subsection: “(h) Special Rule for Plans Electing Certain Funding Requirements.— If any plan makes an election under section 402(a)(1) of the Pension Protection Act of 2006 and is terminated effective before the end of the 10-year period beginning on the first day of the first applicable plan year— “(1) this section shall be applied— “(A) by treating the first day of the first applicable plan year as the termination date of the plan, and “(B) by determining the amount of guaranteed benefits on the basis of plan assets and liabilities as of such assumed termination date, and “(2) notwithstanding section 4044(a), plan assets shall first be allocated to pay the amount, if any, by which— “(A) the amount of guaranteed benefits under this section (determined without regard to paragraph (1) and on the basis of plan assets and liabilities as of the actual date of plan termination), exceeds “(B) the amount determined under paragraph (1).” .Effective date note
Amendment by section 402(g)(2)(A) of Pub. L. 109–280 applicable to plan years ending after Aug. 17, 2006, see section 402(j) of Pub. L. 109–280, set out as a Special Funding Rules for Certain Plans Maintained by Commercial Airlines note under section 430 of Title 26, Internal Revenue Code. Pub. L. 109–280, title IV, § 403(b), Aug. 17, 2006, 120 Stat. 928, provided that: “The amendment made by this section [amending this section] shall apply to benefits that become payable as a result of an event which occurs after July 26, 2005.” Pub. L. 109–280, title IV, § 404(c), Aug. 17, 2006, 120 Stat. 928, provided that: “The amendments made this section [amending this section and section 1344 of this title] shall apply with respect to proceedings initiated under title 11, United States Code, or under any similar Federal law or law of a State or political subdivision, on or after the date that is 30 days after the date of enactment of this Act [Aug. 17, 2006].” Amendment by section 407(a) of Pub. L. 109–280 applicable to plan terminations under section 1341(c) of this title with respect to which notices of intent to terminate are provided under section 1341(a)(2) of this title after Dec. 31, 2005, and under section 1342 of this title with respect to which notices of determination are provided under such section after such date, see section 407(d)(1) of Pub. L. 109–280, set out as a note under section 1321 of this title. Pub. L. 109–280, title IV, § 408(c), Aug. 17, 2006, 120 Stat. 932, provided that: “The amendments made by this section [amending this section and section 1344 of this title] shall apply for any termination for which notices of intent to terminate are provided (or in the case of a termination by the corporation, a notice of determination under section 4042 under the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1342] is issued) on or after the date which is 30 days after the date of enactment of this section [Aug. 17, 2006].”
24 of 24 references resolved to an enrolled provision
Editorial Notes
References in Text
The Social Security Act, referred to in subsec. (b)(3), is act Aug. 14, 1935, ch. 531, 49 Stat. 620. Titles II, and XVI of the Act are classified generally to subchapters II (§ 401 et seq.) and XVI (§ 1381 et seq.), respectively, of chapter 7 of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see section 1305 of Title 42 and Tables.
Section 402(a)(1) of the Pension Protection Act of 2006, referred to in subsec. (h), is section 402(a)(1) of Pub. L. 109–280, which is set out as a note under section 430 of Title 26, Internal Revenue Code.
Amendments1980–2006 · 6 rounds
2006
Subsec. (b)(5). Pub. L. 109–280, § 407(a), amended par. (5) generally. Prior to amendment, par. (5) related to the amount of benefits guaranteed under this section in the case of a participant in a plan who was covered by the plan as a substantial owner.
Subsec. (b)(8). Pub. L. 109–280, § 403(a), added par. (8).
Subsec. (c)(3)(A). Pub. L. 109–280, § 408(b)(1), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “Except as provided in subparagraph (C), for purposes of this subsection, the term ‘recovery ratio’ means the average ratio, with respect to prior plan terminations described in subparagraph (B), of—
“(i) the value of the recovery of the corporation under section 1362, 1363, or 1364 of this title in connection with such prior terminations, to
“(ii) the amount of unfunded benefit liabilities under such plans as of the termination date in connection with such prior terminations.”
Subsec. (c)(3)(B)(ii). Pub. L. 109–280, § 408(a), amended cl. (ii) generally. Prior to amendment, cl. (ii) read as follows: “notices of intent to terminate were provided after , and during the 5-Federal fiscal year period ending with the fiscal year preceding the fiscal year in which occurs the date of the notice of intent to terminate with respect to the plan termination for which the recovery ratio is being determined.”
Subsec. (g). Pub. L. 109–280, § 404(a), which directed amendment of this section, as amended by Pub. L. 109–280, by adding subsec. (g) at the end, was executed by adding subsec. (g) after subsec. (f) and before subsec. (h) to reflect the probable intent of Congress.
Subsec. (h). Pub. L. 109–280, § 402(g)(2)(A), added subsec. (h).
1994
Subsec. (b)(3). Pub. L. 103–465, § 777(a), inserted at end “The maximum guaranteed monthly benefit shall not be reduced solely on account of the age of a participant in the case of a benefit payable by reason of disability that occurred on or before the termination date, if the participant demonstrates to the satisfaction of the corporation that the Social Security Administration has determined that the participant satisfies the definition of disability under title II or XVI of the Social Security Act, and the regulations thereunder. If a benefit payable by reason of disability is converted to an early or normal retirement benefit for reasons other than a change in the health of the participant, such early or normal retirement benefit shall be treated as a continuation of the benefit payable by reason of disability and this subparagraph shall continue to apply.”
Subsec. (f). Pub. L. 103–465, § 766(c), added subsec. (f).
1989
Subsec. (a). Pub. L. 101–239, § 7894(g)(3)(B), substituted “this subchapter” for “section 1321 of this title”.
Subsec. (b)(2). Pub. L. 101–239, § 7894(g)(1), substituted “60-month” for “60 month”.
Subsec. (b)(4)(B)(i), (5)(A), (6). Pub. L. 101–239, § 7891(a)(1), substituted “Internal Revenue Code of 1986” for “Internal Revenue Code of 1954”, which for purposes of codification was translated as “title 26” thus requiring no change in text.
Subsec. (c)(1). Pub. L. 101–239, § 7881(f)(11), substituted “under section 1344(a) of this title. Such payment shall be made to such participant” for “under section 1344(a) of this title, to such participant”.
Pub. L. 101–239, § 7881(f)(4), struck out “(in the case of a deceased participant)” before “to such participant’s beneficiaries”.
Subsec. (c)(3)(B)(ii). Pub. L. 101–239, § 7881(f)(5), inserted before period at end “, and during the 5-Federal fiscal year period ending with the fiscal year preceding the fiscal year in which occurs the date of the notice of intent to terminate with respect to the plan termination for which the recovery ratio is being determined”.
1987
Subsecs. (c) to (e). Pub. L. 100–203 added subsec. (c) and redesignated former subsecs. (c) and (d) as (d) and (e), respectively.
1986
Subsec. (b)(7). Pub. L. 99–272, § 11016(c)(8), in provisions following subpar. (B) substituted “12 months beginning with” for “12 months following”.
Subsec. (d). Pub. L. 99–272, § 11016(c)(9), added subsec. (d).
1980
Subsec. (a). Pub. L. 96–364, § 403(c)(2), inserted “, in accordance with this section,” after “guarantee” and “single-employer” before “plan which”, and struck out “the terms of” after “under”.
Subsec. (b). Pub. L. 96–364, § 403(c)(3), (4), in par. (1) substituted “(7)” for “(8)”, struck out par. (5) relating to receipt of a life annuity commencing at age 65, and redesignated pars. (6) to (8) as (5) to (7), respectively.
Statutory Notes and Related Subsidiaries
Effective Date of 2006 Amendment
Amendment by section 402(g)(2)(A) of Pub. L. 109–280 applicable to plan years ending after , see section 402(j) of Pub. L. 109–280, set out as a Special Funding Rules for Certain Plans Maintained by Commercial Airlines note under section 430 of Title 26, Internal Revenue Code.
Pub. L. 109–280, title IV, § 403(b), , 120 Stat. 928, provided that: “The amendment made by this section [amending this section] shall apply to benefits that become payable as a result of an event which occurs after .”
Pub. L. 109–280, title IV, § 404(c), , 120 Stat. 928, provided that: “The amendments made this section [amending this section and section 1344 of this title] shall apply with respect to proceedings initiated under title 11, United States Code, or under any similar Federal law or law of a State or political subdivision, on or after the date that is 30 days after the date of enactment of this Act [].”
Amendment by section 407(a) of Pub. L. 109–280 applicable to plan terminations under section 1341(c) of this title with respect to which notices of intent to terminate are provided under section 1341(a)(2) of this title after , and under section 1342 of this title with respect to which notices of determination are provided under such section after such date, see section 407(d)(1) of Pub. L. 109–280, set out as a note under section 1321 of this title.
Pub. L. 109–280, title IV, § 408(c), , 120 Stat. 932, provided that: “The amendments made by this section [amending this section and section 1344 of this title] shall apply for any termination for which notices of intent to terminate are provided (or in the case of a termination by the corporation, a notice of determination under section 4042 under the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1342] is issued) on or after the date which is 30 days after the date of enactment of this section [].”
Effective Date of 1994 Amendment
Amendment by section 766(c) of Pub. L. 103–465 applicable to plan amendments adopted on or after , see section 766(d) of Pub. L. 103–465, set out as a note under section 401 of Title 26, Internal Revenue Code.
Pub. L. 103–465, title VII, § 777(b), , 108 Stat. 5049, provided that: “The amendment made by this section [amending this section] shall be effective for plan terminations under section 4041(c) of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1341(c)] with respect to which notices of intent to terminate are provided under section 4041(a)(2) of such Act [29 U.S.C. 1342], or under section 4042 of such Act with respect to which proceedings are instituted by the corporation, on or after the date of enactment of this Act [].”
Effective Date of 1989 Amendment
Amendment by section 7881(f)(4), (5), (11) of Pub. L. 101–239 effective, except as otherwise provided, as if included in the provision of the Pension Protection Act, Pub. L. 100–203, §§ 9302–9346, to which such amendment relates, see section 7882 of Pub. L. 101–239, set out as a note under section 401 of Title 26, Internal Revenue Code.
Amendment by section 7891(a)(1) of Pub. L. 101–239 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 7891(f) of Pub. L. 101–239, set out as a note under section 1002 of this title.
Amendment by section 7894(g)(1), (3)(B) of Pub. L. 101–239 effective, except as otherwise provided, as if originally included in the provision of the Employee Retirement Income Security Act of 1974, Pub. L. 93–406, to which such amendment relates, see section 7894(i) of Pub. L. 101–239, set out as a note under section 1002 of this title.
Effective Date of 1987 Amendment
Amendment by Pub. L. 100–203 applicable with respect to plan terminations under section 1341 of this title with respect to which notices of intent to terminate are provided under section 1341(a)(2) of this title after , and plan terminations with respect to which proceedings are instituted by the Pension Benefit Guaranty Corporation under section 1342 of this title after that date, see section 9312(d)(1) of Pub. L. 100–203, as amended, set out as a note under section 1301 of this title.
Effective Date of 1986 Amendment
Amendment by Pub. L. 99–272 effective , with certain exceptions, see section 11019 of Pub. L. 99–272, set out as a note under section 1341 of this title.
Effective Date of 1980 Amendment
Amendment by Pub. L. 96–364 effective , except as specifically provided, see section 1461(e) of this title.
Transitional Rule Regarding Amendments by Section 9312 of Pub. L. 100–203
Pub. L. 100–203, title IX, § 9312(b)(3)(B), , 101 Stat. 1330–363, as amended by Pub. L. 101–239, title VII, § 7881(f)(1), (6), , 103 Stat. 2440, provided that:
“(i) In general.—
In the case of any plan termination to which the amendments made by this section [amending sections 1301, 1305, 1322, 1341, 1342, 1349, 1362, 1364, and 1368 of this title and repealing section 1349 of this title] apply and with respect to which notices of intent to terminate were provided on or before —
“(I) subparagraph (A) of section 4022(c)(3) of ERISA [29 U.S.C. 1322(c)(3)(A)] (as amended by this paragraph) shall not apply, and
“(II) subparagraph (C) of section 4022(c)(3) of ERISA (as so amended) shall apply irrespective of the outstanding amount of benefit liabilities under the plan.
“(ii) [Repealed. Pub. L. 101–239, title VII, § 7881(f)(6), , 103 Stat. 2440.]
”
Credits
1974–2006 · 7 acts
- 1974Pub. L. 93–406, title IV, § 4022, , 88 Stat. 1016
- 1980Pub. L. 96–364, title IV, § 403(c), , 94 Stat. 1301
- 1986Pub. L. 99–272, title XI, § 11016(c)(8), (9), , 100 Stat. 274
- 1987Pub. L. 100–203, title IX, § 9312(b)(3)(A), , 101 Stat. 1330–362
- 1989Pub. L. 101–239, title VII, §§ 7881(f)(4), (5), (11), 7891(a)(1), 7894(g)(1), (3)(B), , 103 Stat. 2440, 2441, 2445, 2451
- 1994Pub. L. 103–465, title VII, §§ 766(c), 777(a), , 108 Stat. 5037, 5049
- 2006Pub. L. 109–280, title IV, §§ 402(g)(2)(A), 403(a), 404(a), 407(a), 408(a), (b)(1), , 120 Stat. 926, 928, 929, 931.
Show as published
(Pub. L. 93–406, title IV, § 4022, , 88 Stat. 1016; Pub. L. 96–364, title IV, § 403(c), , 94 Stat. 1301; Pub. L. 99–272, title XI, § 11016(c)(8), (9), , 100 Stat. 274; Pub. L. 100–203, title IX, § 9312(b)(3)(A), , 101 Stat. 1330–362; Pub. L. 101–239, title VII, §§ 7881(f)(4), (5), (11), 7891(a)(1), 7894(g)(1), (3)(B), , 103 Stat. 2440, 2441, 2445, 2451; Pub. L. 103–465, title VII, §§ 766(c), 777(a), , 108 Stat. 5037, 5049; Pub. L. 109–280, title IV, §§ 402(g)(2)(A), 403(a), 404(a), 407(a), 408(a), (b)(1), , 120 Stat. 926, 928, 929, 931.)