Title 29 — Labor
Part 1 · Chapter 18 — Employee Retirement Income Security Program
§ 1390. Nonapplicability of withdrawal liability for certain temporary contribution obligation periods; exception
Statutory text
An employer who withdraws from a plan in complete or partial withdrawal is not liable to the plan if the employer—
first had an obligation to contribute to the plan after ,
had an obligation to contribute to the plan for no more than the lesser of—
6 consecutive plan years preceding the date on which the employer withdraws, or
the number of years required for vesting under the plan,
was required to make contributions to the plan for each such plan year in an amount equal to less than 2 percent of the sum of all employer contributions made to the plan for each such year, and
has never avoided withdrawal liability because of the application of this section with respect to the plan.
Subsection (a) shall apply to an employer with respect to a plan only if—
the plan is amended to provide that subsection (a) applies;
the plan provides, or is amended to provide, that the reduction under section 411(a)(3)(E) of title 26 applies with respect to the employees of the employer; and
the ratio of the assets of the plan for the plan year preceding the first plan year for which the employer was required to contribute to the plan to the benefit payments made during that plan year was at least 8 to 1.
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 § 4210 · 88 Stat. 829
Enacted · 29 U.S.C. § 1390
Pub. L. 93–406, title IV, § 4210, as added Pub. L. 96–364, title I, § 104(2), Sept. 26, 1980, 94 Stat. 1226
Source evidence
Code source credit
Pub. L. 93–406, title IV, § 4210, as added Pub. L. 96–364, title I, § 104(2), Sept. 26, 1980, 94 Stat. 1226Revenue Reconciliation Act of 1989
Pub. L. 101–239 title VII § 7891(a)(1) · 103 Stat. 2106
Substituted · 29 U.S.C. § 1390(b)(3)
Pub. L. 101–239 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)(3). Pub. L. 101–239 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”.Pub. L. 109–280 title II § 204(c)(1) · 120 Stat. 780
Redesignated · 29 U.S.C. § 1390(b)(1)(4)
Pub. L. 109–280 redesignated pars. (2) to (4) as (1) to (3), respectively
Struck · 29 U.S.C. § 1390(b)(1)(4)
Pub. L. 109–280 struck out former par. (1) which read as follows: “the plan is not a plan which primarily covers employees in the building and construction industry;”
Source evidence
Code amendment note
Subsec. (b)(1) to (4). Pub. L. 109–280 redesignated pars. (2) to (4) as (1) to (3), respectively, and struck out former par. (1) which read as follows: “the plan is not a plan which primarily covers employees in the building and construction industry;”.Enacted provision · exact public law section
(1) In general.— Section 4210(b) of such Act (29 U.S.C. 1390(b)) is amended— (A) by striking paragraph (1); and (B) by redesignating paragraphs (2) through (4) as paragraphs (1) through (3), respectively.Effective date note
Pub. L. 109–280, title II, § 204(c)(3), Aug. 17, 2006, 120 Stat. 887, provided that: “The amendments made by this subsection [amending this section and section 1391 of this title] shall apply with respect to plan withdrawals occurring on or after January 1, 2007.”
3 of 4 references resolved to an enrolled provision · 1 partial
Editorial Notes
Amendments1989–2006 · 2 rounds
2006
Subsec. (b)(1) to (4). Pub. L. 109–280 redesignated pars. (2) to (4) as (1) to (3), respectively, and struck out former par. (1) which read as follows: “the plan is not a plan which primarily covers employees in the building and construction industry;”.
1989
Subsec. (b)(3). Pub. L. 101–239 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.
Statutory Notes and Related Subsidiaries
Effective Date of 2006 Amendment
Pub. L. 109–280, title II, § 204(c)(3), , 120 Stat. 887, provided that: “The amendments made by this subsection [amending this section and section 1391 of this title] shall apply with respect to plan withdrawals occurring on or after .”
Effective Date of 1989 Amendment
Amendment by 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.
Credits
1980–2006 · 3 acts
- 1980Pub. L. 93–406, title IV, § 4210, as added Pub. L. 96–364, title I, § 104(2), , 94 Stat. 1226
- 1989amended Pub. L. 101–239, title VII, § 7891(a)(1), , 103 Stat. 2445
- 2006Pub. L. 109–280, title II, § 204(c)(1), , 120 Stat. 887.
Show as published
(Pub. L. 93–406, title IV, § 4210, as added Pub. L. 96–364, title I, § 104(2), , 94 Stat. 1226; amended Pub. L. 101–239, title VII, § 7891(a)(1), , 103 Stat. 2445; Pub. L. 109–280, title II, § 204(c)(1), , 120 Stat. 887.)