-CITE- 29 USC CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM 01/06/03 -EXPCITE- TITLE 29 - LABOR CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM -MISC1- CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM -MISC1- SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS SUBTITLE A - GENERAL PROVISIONS Sec. 1001. Congressional findings and declaration of policy. (a) Benefit plans as affecting interstate commerce and the Federal taxing power. (b) Protection of interstate commerce and beneficiaries by requiring disclosure and reporting, setting standards of conduct, etc., for fiduciaries. (c) Protection of interstate commerce, the Federal taxing power, and beneficiaries by vesting of accrued benefits, setting minimum standards of funding, requiring termination insurance. 1001a. Additional Congressional findings and declaration of policy. (a) Effects of multiemployer pension plans. (b) Modification of multiemployer plan termination insurance provisions and replacement of program. (c) Policy. 1001b. Findings and declaration of policy. (a) Findings. (b) Additional findings. (c) Declaration of policy. 1002. Definitions. 1003. Coverage. (a) In general. (b) Exceptions for certain plans. (c) Voluntary employee contributions to accounts and annuities. SUBTITLE B - REGULATORY PROVISIONS PART 1 - REPORTING AND DISCLOSURE 1021. Duty of disclosure and reporting. (a) Summary plan description and information to be furnished to participants and beneficiaries. (b) Reports to be filed with Secretary of Labor. (c) Terminal and supplementary reports. (d) Notice of failure to meet minimum funding standards. (e) Notice of transfer of excess pension assets to health benefits accounts. (f) Repealed. (g) Reporting by certain arrangements. (h) Simple retirement accounts. (i) Notice of blackout periods to participant or beneficiary under individual account plan. (j) Cross reference. 1022. Summary plan description. 1023. Annual reports. (a) Publication and filing. (b) Financial statement. (c) Information to be furnished by administrator. (d) Actuarial statement. (e) Statement from insurance company, insurance service, or other similar organizations which sell or guarantee plan benefits. 1024. Filing and furnishing of information. (a) Filing of annual report with Secretary. (b) Publication of summary plan description and annual report to participants and beneficiaries of plan. (c) Statement of rights. (d) Cross references. 1025. Reporting of participant's benefit rights. (a) Statement furnished by administrator to participants and beneficiaries. (b) One-per-year limit on reports. (c) Individual statement furnished by administrator to participants setting forth information in administrator's Internal Revenue registration statement and notification of forfeitable benefits. (d) Plans to which more than one unaffiliated employer is required to contribute; regulations. 1026. Reports made public information. 1027. Retention of records. 1028. Reliance on administrative interpretations. 1029. Forms. (a) Information required on forms. (b) Information not required on forms. (c) Format and content of summary plan description, annual report, etc., required to be furnished to plan participants and beneficiaries. 1030. Alternative methods of compliance. 1031. Repeal and effective date. PART 2 - PARTICIPATION AND VESTING 1051. Coverage. 1052. Minimum participation standards. 1053. Minimum vesting standards. (a) Nonforfeitability requirements. (b) Computation of period of service. (c) Plan amendments altering vesting schedule. (d) Nonforfeitable benefits after lesser period and in greater amounts than required. (e) Consent for distribution; present value; covered distributions. 1054. Benefit accrual requirements. (a) Satisfaction of requirements by pension plans. (b) Enumeration of plan requirements. (c) Employee's accrued benefits derived from employer and employee contributions. (d) Employee service which may be disregarded in determining employee's accrued benefits under plan. (e) Opportunity to repay full amount of distributions which have been reduced through disregarded employee service. (f) Employer treated as maintaining a plan. (g) Decrease of accrued benefits through amendment of plan. (h) Notice of significant reduction in benefit accruals. (i) Prohibition on benefit increases where plan sponsor is in bankruptcy. (j) Cross reference. 1055. Requirement of joint and survivor annuity and preretirement survivor annuity. (a) Required contents for applicable plans. (b) Applicable plans. (c) Plans meeting requirements of section. (d) "Qualified joint and survivor annuity" defined. (e) "Qualified preretirement survivor annuity" defined. (f) Marriage requirements for plan. (g) Distribution of present value of annuity; written consent; determination of present value. (h) Definitions. (i) Increased costs from providing annuity. (j) Use of participant's accrued benefit as security for loan as not preventing distribution. (k) Spousal consent. (l) Regulations; consultation of Secretary of the Treasury with Secretary of Labor. 1056. Form and payment of benefits. (a) Commencement date for payment of benefits. (b) Decrease in plan benefits by reason of increases in benefit levels under Social Security Act or Railroad Retirement Act of 1937. (c) Forfeiture of accrued benefits derived from employer contributions. (d) Assignment or alienation of plan benefits. (e) Limitation on distributions other than life annuities paid by plan. (f) Missing participants in terminated plans. 1057. Temporary variances from certain vesting requirements. 1058. Mergers and consolidations of plans or transfers of plan assets. 1059. Recordkeeping and reporting requirements. 1060. Multiple employer plans. (a) Plan maintained by more than one employer. (b) Maintenance of plan of predecessor employer. (c) Plan maintained by controlled group of corporations. (d) Plan of trades or businesses under common control. 1061. Effective dates. PART 3 - FUNDING 1081. Coverage. (a) Plans excepted from applicability of this part. (b) "Insurance contract plan" defined. (c) Applicability of this part to terminated multiemployer plans. (d) Financial assistance from Pension Benefit Guaranty Corporation. 1082. Minimum funding standards. (a) Avoidance of accumulated funding deficiency. (b) Funding standard account. (c) Methods. (d) Additional funding requirements for plans which are not multiemployer plans. (e) Quarterly contributions required. (f) Imposition of lien where failure to make required contributions. (g) Qualified transfers to health benefit accounts. (h) Cross reference. 1083. Variance from minimum funding standard. (a) Waiver of requirements in event of business hardship. (b) Matters considered in determining business hardship. (c) "Waived funding deficiency" defined. (d) Special rules. (e) Notice of filing of application for waiver. (f) Cross reference. 1084. Extension of amortization periods. (a) Determinations by Secretary in granting extension. (b) Amendment of plan. (c) Notice of filing of application for extension. 1085. Alternative minimum funding standard. (a) Maintenance of account. (b) Operation of account. (c) Interest. 1085a. Security for waivers of minimum funding standard and extensions of amortization period. (a) Security may be required. (b) Consultation with the Pension Benefit Guaranty Corporation. (c) Exception for certain waivers and extensions. 1085b. Security required upon adoption of plan amendment resulting in significant underfunding. (a) In general. (b) Form of security. (c) Amount of security. (d) Release of security. (e) Notice. (f) Definitions. 1086. Effective dates. PART 4 - FIDUCIARY RESPONSIBILITY 1101. Coverage. (a) Scope of coverage. (b) Securities or policies deemed to be included in plan assets. (c) Clarification of application of ERISA to insurance company general accounts. 1102. Establishment of plan. (a) Named fiduciaries. (b) Requisite features of plan. (c) Optional features of plan. 1103. Establishment of trust. (a) Benefit plan assets to be held in trust; authority of trustees. (b) Exceptions. (c) Assets of plan not to inure to benefit of employer; allowable purposes of holding plan assets. (d) Termination of plan. 1104. Fiduciary duties. (a) Prudent man standard of care. (b) Indicia of ownership of assets outside jurisdiction of district courts. (c) Control over assets by participant or beneficiary. (d) Plan terminations. 1105. Liability for breach of co-fiduciary. (a) Circumstances giving rise to liability. (b) Assets held by two or more trustees. (c) Allocation of fiduciary responsibility; designated persons to carry out fiduciary responsibilities. (d) Investment managers. 1106. Prohibited transactions. (a) Transactions between plan and party in interest. (b) Transactions between plan and fiduciary. (c) Transfer of real or personal property to plan by party in interest. 1107. Limitation with respect to acquisition and holding of employer securities and employer real property by certain plans. (a) Percentage limitation. (b) Exception. (c) Election. (d) Definitions. (e) Marketable obligations. (f) Maximum percentage of stock held by plan; time of holding or acquisition; necessity of legally binding contract. 1108. Exemptions from prohibited transactions. (a) Grant of exemptions. (b) Enumeration of transactions exempted from section 1106 prohibitions. (c) Fiduciary benefits and compensation not prohibited by section 1106. (d) Owner-employees; family members; shareholder employees. (e) Acquisition or sale by plan of qualifying employer securities; acquisition, sale, or lease by plan of qualifying employer real property. (f) Applicability of statutory prohibitions to mergers or transfers. 1109. Liability for breach of fiduciary duty. 1110. Exculpatory provisions; insurance. 1111. Persons prohibited from holding certain positions. (a) Conviction or imprisonment. (b) Penalty. (c) Definitions. (d) Salary of person barred from employee benefit plan office during appeal of conviction. 1112. Bonding. (a) Requisite bonding of plan officials. (b) Unlawful acts. (c) Conflict of interest prohibited in procuring bonds. (d) Exclusiveness of statutory basis for bonding requirement for persons handling funds or other property of employee benefit plans. (e) Regulations. 1113. Limitation of actions. 1114. Effective date. PART 5 - ADMINISTRATION AND ENFORCEMENT 1131. Criminal penalties. 1132. Civil enforcement. (a) Persons empowered to bring a civil action. (b) Plans qualified under Internal Revenue Code; maintenance of actions involving delinquent contributions. (c) Administrator's refusal to supply requested information; penalty for failure to provide annual report in complete form. (d) Status of employee benefit plan as entity. (e) Jurisdiction. (f) Amount in controversy; citizenship of parties. (g) Attorney's fees and costs; awards in actions involving delinquent contributions. (h) Service upon Secretary of Labor and Secretary of the Treasury. (i) Administrative assessment of civil penalty. (j) Direction and control of litigation by Attorney General. (k) Jurisdiction of actions against the Secretary of Labor. (l) Civil penalties on violations by fiduciaries. (m) Penalty for improper distribution. 1133. Claims procedure. 1134. Investigative authority. (a) Investigation and submission of reports, books, etc. (b) Frequency of submission of books and records. (c) Other provisions applicable relating to attendance of witnesses and production of books, records, etc. 1135. Regulations. 1136. Coordination and responsibility of agencies enforcing this subchapter and related Federal laws. (a) Coordination with other agencies and departments. (b) Responsibility for detecting and investigating civil and criminal violations of this subchapter and related Federal laws. (c) Coordination of enforcement with States with respect to certain arrangements. 1137. Administration. 1138. Appropriations. 1139. Separability. 1140. Interference with protected rights. 1141. Coercive interference. 1142. Advisory Council on Employee Welfare and Pension Benefit Plans. (a) Establishment; membership; terms; appointment and reappointment; vacancies; quorum. (b) Duties and functions. (c) Executive secretary; secretarial and clerical services. (d) Compensation. (e) Termination. 1143. Research, studies, and reports. (a) Authorization to undertake research and surveys. (b) Omitted. (c) Cooperation with Congress. 1143a. Studies by Comptroller General. (1) In general. (2) Access to books, documents, etc. (3) Definitions. (4) Effective date. 1144. Other laws. (a) Supersedure; effective date. (b) Construction and application. (c) Definitions. (d) Alteration, amendment, modification, invalidation, impairment, or supersedure of any law of the United States prohibited. 1144a. Clarification of church welfare plan status under State insurance law. (a) In general. (b) State insurance law. (c) Definitions. (d) Enforcement authority. (e) Application of section. 1145. Delinquent contributions. 1146. Outreach to promote retirement income savings. (a) In general. (b) Methods. (c) Information to be made available. (d) Establishment of site on Internet. (e) Coordination. 1147. National Summit on Retirement Savings. (a) Authority to call Summit. (b) Planning and direction. (c) Purpose of National Summit. (d) Scope of National Summit. (e) National Summit participants. (f) National Summit administration. (g) Report. (h) "State" defined. (i) Authorization of appropriations. (j) Financial obligation for fiscal year 1998. (k) Contracts. 1148. Authority to postpone certain deadlines by reason of Presidentially declared disaster or terroristic or military actions. PART 6 - CONTINUATION COVERAGE AND ADDITIONAL STANDARDS FOR GROUP HEALTH PLANS 1161. Plans must provide continuation coverage to certain individuals. (a) In general. (b) Exception for certain plans. 1162. Continuation coverage. 1163. Qualifying event. 1164. Applicable premium. 1165. Election. (a) In general. (b) Temporary extension of COBRA election period for certain individuals. 1166. Notice requirements. (a) In general. (b) Alternative means of compliance with requirements for notification of multiemployer plans by employers. (c) Rules relating to notification of qualified beneficiaries by plan administrator. 1167. Definitions and special rules. 1168. Regulations. 1169. Additional standards for group health plans. (a) Group health plan coverage pursuant to medical child support orders. (b) Rights of States with respect to group health plans where participants or beneficiaries thereunder are eligible for medicaid benefits. (c) Group health plan coverage of dependent children in cases of adoption. (d) Continued coverage of costs of a pediatric vaccine under group health plans. (e) Regulations. PART 7 - GROUP HEALTH PLAN REQUIREMENTS SUBPART A - REQUIREMENTS RELATING TO PORTABILITY, ACCESS, AND RENEWABILITY 1181. Increased portability through limitation on preexisting condition exclusions. (a) Limitation on preexisting condition exclusion period; crediting for periods of previous coverage. (b) Definitions. (c) Rules relating to crediting previous coverage. (d) Exceptions. (e) Certifications and disclosure of coverage. (f) Special enrollment periods. (g) Use of affiliation period by HMOs as alternative to preexisting condition exclusion. 1182. Prohibiting discrimination against individual participants and beneficiaries based on health status. (a) In eligibility to enroll. (b) In premium contributions. 1183. Guaranteed renewability in multiemployer plans and multiple employer welfare arrangements. SUBPART B - OTHER REQUIREMENTS 1185. Standards relating to benefits for mothers and newborns. (a) Requirements for minimum hospital stay following birth. (b) Prohibitions. (c) Rules of construction. (d) Notice under group health plan. (e) Level and type of reimbursements. (f) Preemption; exception for health insurance coverage in certain States. 1185a. Parity in application of certain limits to mental health benefits. (a) In general. (b) Construction. (c) Exemptions. (d) Separate application to each option offered. (e) Definitions. (f) Sunset. 1185b. Required coverage for reconstructive surgery following mastectomies. (a) In general. (b) Notice. (c) Prohibitions. (d) Rule of construction. (e) Preemption, relation to State laws. SUBPART C - GENERAL PROVISIONS 1191. Preemption; State flexibility; construction. (a) Continued applicability of State law with respect to health insurance issuers. (b) Special rules in case of portability requirements. (c) Rules of construction. (d) Definitions. 1191a. Special rules relating to group health plans. (a) General exception for certain small group health plans. (b) Exception for certain benefits. (c) Exception for certain benefits if certain conditions met. (d) Treatment of partnerships. 1191b. Definitions. (a) Group health plan. (b) Definitions relating to health insurance. (c) Excepted benefits. (d) Other definitions. 1191c. Regulations. SUBCHAPTER II - JURISDICTION, ADMINISTRATION, ENFORCEMENT; JOINT PENSION TASK FORCE, ETC. SUBTITLE A - JURISDICTION, ADMINISTRATION, AND ENFORCEMENT 1201. Procedures in connection with the issuance of certain determination letters by the Secretary of the Treasury covering qualifications under Internal Revenue Code. (a) Additional material required of applicants. (b) Opportunity to comment on application. (c) Intervention by Pension Benefit Guaranty Corporation or Secretary of Labor into declaratory judgment action under section 7476 of title 26, action by Corporation authorized. (d) Notification and information by Secretary of the Treasury to Secretary of Labor upon issuance by Secretary of the Treasury of a determination letter to applicant. (e) Effective date. 1202. Procedures with respect to continued compliance with Internal Revenue requirements relating to participation, vesting, and funding standards. (a) Notification by Secretary of the Treasury to Secretary of Labor of issuance of a preliminary notice of intent to disqualify or of commencement of proceedings to determine satisfaction of requirements. (b) Notification to Secretary of Labor before Secretary of the Treasury sends notice of deficiency under section 4971 of title 26; waiver of imposition of tax; requests for investigation; consultation. (c) Extended application of regulations prescribed by Secretary of the Treasury relating to minimum participation standards, minimum vesting standards, and minimum funding standards. (d) Opportunity afforded Secretary of the Treasury to intervene in cases involving construction or application of minimum standards; review of briefs filed by Pension Benefit Guaranty Corporation or Secretary of Labor. (e) Consultative requirements respecting promulgation of proposed or final regulations. 1203. Procedures in connection with prohibited transactions. (a) Notification to Secretary of Labor; opportunity to comment on imposition of tax under section 4975 of title 26; waiver; requests for investigations. (b) Consultation. (c) Transmission of information to Secretary of the Treasury. 1204. Coordination between the Department of the Treasury and the Department of Labor. SUBTITLE B - JOINT PENSION, PROFIT-SHARING, AND EMPLOYEE STOCK OWNERSHIP PLAN TASK FORCE; STUDIES PART 1 - JOINT PENSION, PROFIT-SHARING, AND EMPLOYEE STOCK OWNERSHIP PLAN TASK FORCE 1221. Establishment. 1222. Duties. PART 2 - OTHER STUDIES 1231. Congressional study. 1232. Protection for employees under Federal procurement, construction, and research contracts and grants. (a) Study and investigation by Secretary of Labor. (b) Consultation. (c) Regulations. (d) Congressional review of regulations; resolution of disapproval. SUBTITLE C - ENROLLMENT OF ACTUARIES 1241. Joint Board for the Enrollment of Actuaries. 1242. Enrollment by Board; standards and qualifications; suspension or termination of enrollment. SUBCHAPTER III - PLAN TERMINATION INSURANCE SUBTITLE A - PENSION BENEFIT GUARANTY CORPORATION 1301. Definitions. 1302. Pension Benefit Guaranty Corporation. (a) Establishment within Department of Labor. (b) Powers of corporation. (c) Omitted. (d) Board of directors; compensation; reimbursement for expenses. (e) Meetings. (f) Adoption of bylaws; amendment, alteration; publication in the Federal Register. (g) Exemption from taxation. (h) Advisory committee to corporation. (i) Special rules regarding disasters, etc. 1303. Operation of corporation. (a) Investigatory authority; audit of statistically significant number of terminating plans. (b) Discovery powers vested in board members or officers designated by the chairman. (c) Contempt. (d) Cooperation with other governmental agencies. (e) Civil actions by corporation; jurisdiction; process; expeditious handling of case; costs; limitation on actions. (f) Civil actions against corporation; appropriate court; award of costs and expenses; limitation on actions; jurisdiction; removal of actions. 1304. Repealed. 1305. Pension benefit guaranty funds. (a) Establishment of four revolving funds on books of Treasury of the United States. (b) Credits to funds; availability of funds; investment of moneys in excess of current needs. (c) Authority to issue notes or other obligations; purchase by Secretary of the Treasury as public debt transaction. (d) Establishment of fifth fund; purpose, availability, etc. (e) Establishment of sixth fund; purpose, availability, etc. (f) Deposit of premiums into separate revolving fund. (g) Other use of funds; deposits of repayments. (h) Voting by corporation of stock paid as liability. 1306. Premium rates. (a) Schedules for premium rates and bases for application; establishment, coverage, etc. (b) Revised schedule; Congressional procedures applicable. (c) Rates for plans for basic benefits. 1307. Payment of premiums. (a) Premiums payable when due; accrual; waiver or reduction. (b) Late payment charge; waiver. (c) Civil action to recover premium penalty and interest. (d) Basic benefits guarantee not stopped by designated payor's failure to pay premiums when due. (e) Designated payor. 1308. Annual report by the corporation. 1309. Portability assistance. 1310. Authority to require certain information. (a) Information required. (b) Persons required to provide information. (c) Information exempt from disclosure requirements. 1311. Notice to participants. (a) In general. (b) Exception. SUBTITLE B - COVERAGE 1321. Coverage. (a) Plans covered. (b) Plans not covered. (c) Definitions. 1322. Single-employer plan benefits guaranteed. (a) Nonforfeitable benefits. (b) Exceptions. (c) Payment by corporation to participants and beneficiaries of recovery percentage of outstanding amount of benefit liabilities. (d) Authorization to guarantee other classes of benefits. (e) Nonforfeitability of preretirement survivor annuity. (f) Effective date of plan amendments. 1322a. Multiemployer plan benefits guaranteed. (a) Benefits of covered plans subject to guarantee. (b) Benefits or benefit increases not eligible for guarantee. (c) Determinations respecting amount of guarantee. (d) Amount of guarantee of reduced benefit. (e) Ineligibility of benefits for guarantee. (f) Study, report, etc., respecting premium increase in existing basic-benefit guarantee levels; Congressional procedures applicable for revision of schedules. (g) Guarantee of payment of other classes of benefits and establishment of terms and conditions of guarantee; promulgation of regulations for establishment of supplemental program to guarantee benefits otherwise ineligible; status of benefits; applicability of revised schedule of premiums. (h) Applicability to nonforfeitable benefits accrued as of July 30, 1980; manner and extent of guarantee. 1322b. Aggregate limit on benefits guaranteed; criteria applicable. 1323. Plan fiduciaries. SUBTITLE C - TERMINATIONS 1341. Termination of single-employer plans. (a) General rules governing single-employer plan terminations. (b) Standard termination of single-employer plans. (c) Distress termination of single-employer plans. (d) Sufficiency. (e) Limitation on the conversion of a defined benefit plan to a defined contribution plan. 1341a. Termination of multiemployer plans. (a) Determinative factors. (b) Date of termination. (c) Duties of plan sponsor of amended plan. (d) Duties of plan sponsor of nonoperative plan. (e) Amount of contribution of employer under amended plan for each plan year subsequent to plan termination date. (f) Payment of benefits; reporting requirements for terminated plans and rules and standards for administration of such plans. 1342. Institution of termination proceedings by the corporation. (a) Authority to institute proceedings to terminate a plan. (b) Appointment of trustee. (c) Adjudication that plan must be terminated. (d) Powers of trustee. (e) Filing of application notwithstanding pendency of other proceedings. (f) Exclusive jurisdiction; stay of other proceedings. (g) Venue. (h) Compensation of trustee and professional service personnel appointed or retained by trustee. 1343. Reportable events. (a) Notification that event has occurred. (b) Notification that event is about to occur. (c) Enumeration of reportable events. (d) Notification to corporation by Secretary of the Treasury. (e) Notification to corporation by Secretary of Labor. (f) Disclosure exemption. 1344. Allocation of assets. (a) Order of priority of participants and beneficiaries. (b) Adjustment of allocations; reallocations; mandatory contributions; establishment of subclasses and categories. (c) Increase or decrease in value of assets. (d) Distribution of residual assets; restrictions on reversions pursuant to recently amended plans; assets attributable to employee contributions; calculation of remaining assets. 1345. Recapture of payments. (a) Authorization to recover benefits. (b) Recoverable amount. (c) Payments made on or after death or disability of participant; waiver of recovery in case of hardship. 1346. Reports to trustee. 1347. Restoration of plans. 1348. Termination date. 1349. Repealed. 1350. Missing participants. (a) General rule. (b) Definitions. (c) Regulatory authority. SUBTITLE D - LIABILITY 1361. Amounts payable by corporation. 1362. Liability for termination of single-employer plans under a distress termination or a termination by corporation. (a) In general. (b) Liability to corporation. (c) Liability to section 1342 trustee. (d) Definitions. (e) Treatment of substantial cessation of operations. 1363. Liability of substantial employer for withdrawal from single-employer plans under multiple controlled groups. (a) Single-employer plans with two or more contributing sponsors. (b) Computation of liability. (c) Bond in lieu of payment of liability; 5-year termination period. (d) Alternate appropriate procedure. (e) Indemnity agreement. 1364. Liability on termination of single-employer plans under multiple controlled groups. 1365. Annual report of plan administrator. 1366. Annual notification to substantial employers. 1367. Recovery of liability for plan termination. 1368. Lien for liability. (a) Creation of lien. (b) Term of lien. (c) Priority. (d) Civil action; limitation period. (e) Release or subordination. (f) Definitions. 1369. Treatment of transactions to evade liability; effect of corporate reorganization. (a) Treatment of transactions to evade liability. (b) Effect of corporate reorganization. 1370. Enforcement authority relating to terminations of single-employer plans. (a) In general. (b) Status of plan as party to action and with respect to legal process. (c) Jurisdiction and venue. (d) Right of corporation to intervene. (e) Awards of costs and expenses. (f) Limitation on actions. 1371. Penalty for failure to timely provide required information. SUBTITLE E - SPECIAL PROVISIONS FOR MULTIEMPLOYER PLANS PART 1 - EMPLOYER WITHDRAWALS 1381. Withdrawal liability established; criteria and definitions. 1382. Determination and collection of liability; notification of employer. 1383. Complete withdrawal. (a) Determinative factors. (b) Building and construction industry. (c) Entertainment industry. (d) Other determinative factors. (e) Date of complete withdrawal. (f) Special liability withdrawal rules for industries other than construction and entertainment industries; procedures applicable to amend plans. 1384. Sale of assets. (a) Complete or partial withdrawal not occurring as a result of sale and subsequent cessation of covered operations or cessation of obligation to contribute to covered operations; continuation of liability of seller. (b) Liability of purchaser. (c) Variances or exemptions from continuation of liability of seller; procedures applicable. (d) "Unrelated party" defined. 1385. Partial withdrawals. (a) Determinative factors. (b) Criteria applicable. (c) Retail food industry. (d) Continuation of liability of employer for partial withdrawal under amended plan. 1386. Adjustment for partial withdrawal; determination of amount; reduction for partial withdrawal liability; procedures applicable. 1387. Reduction or waiver of complete withdrawal liability; procedures and standards applicable. 1388. Reduction of partial withdrawal liability. (a) Obligation of employer for payments for partial withdrawal for plan years beginning after the second consecutive plan year following the partial withdrawal year; criteria applicable; furnishing of bond in lieu of payment of partial withdrawal liability. (b) Obligation of employer for payments for partial withdrawal for plan years beginning after the second consecutive plan year; other criteria applicable. (c) Pro rata reduction of amount of partial withdrawal liability payment of employer for plan year following partial withdrawal year. (d) Building and construction industry; entertainment industry. (e) Reduction or elimination of partial withdrawal liability under any conditions; criteria; procedures applicable. 1389. De minimis rule. (a) Reduction of unfunded vested benefits allocable to employer withdrawn from plan. (b) Amendment of plan for reduction of amount of unfunded vested benefits allocable to employer withdrawn from plan. (c) Nonapplicability. (d) Presumption of employer withdrawal from plan pursuant to agreement or arrangement applicable in action or proceeding to determine or collect withdrawal liability. 1390. Nonapplicability of withdrawal liability for certain temporary contribution obligation periods; exception. 1391. Methods for computing withdrawal liability. (a) Determination of amount of unfunded vested benefits allocable to employer withdrawn from plan. (b) Factors determining computation of amount of unfunded vested benefits allocable to employer withdrawn from plan. (c) Amendment of multiemployer plan for determination respecting amount of unfunded vested benefits allocable to employer withdrawn from plan; factors determining computation of amount. (d) Method of calculating allocable share of employer of unfunded vested benefits set forth in subsection (c)(3) of this section; applicability of certain statutory provisions. (e) Reduction of liability of withdrawn employer in case of transfer of liabilities to another plan incident to withdrawal or partial withdrawal of employer. (f) Computations applicable in case of withdrawal following merger of multiemployer plans. 1392. Obligation to contribute. (a) "Obligation to contribute" defined. (b) Payments of withdrawal liability not considered contributions. (c) Transactions to evade or avoid liability. 1393. Actuarial assumptions. (a) Use by plan actuary in determining unfunded vested benefits of a plan for computing withdrawal liability of employer. (b) Factors determinative of unfunded vested benefits of plan for computing withdrawal liability of employer. (c) Determination of amount of unfunded vested benefits. 1394. Application of plan amendments; exception. 1395. Plan notification to corporation of potentially significant withdrawals. 1396. Special rules for plans under section 404(c) of title 26. (a) Amount of withdrawal liability; determinative factors. (b) Covered plans. (c) Amount of liability of employer; "a year of signatory service" defined. 1397. Application of part in case of certain pre-1980 withdrawals; adjustment of covered plan. 1398. Withdrawal not to occur because of change in business form or suspension of contributions during labor dispute. 1399. Notice, collection, etc., of withdrawal liability. (a) Furnishing of information by employer to plan sponsor. (b) Notification, demand for payment, and review upon complete or partial withdrawal by employer. (c) Payment requirements; amount, etc. (d) Applicability of statutory prohibitions. 1400. Approval of amendments. (a) Amendment of covered multiemployer plan; procedures applicable. (b) Amendment respecting methods for computing withdrawal liability. (c) Criteria for disapproval by corporation. 1401. Resolution of disputes. (a) Arbitration proceedings; matters subject to arbitration, procedures applicable, etc. (b) Alternative collection proceedings; civil action subsequent to arbitration award; conduct of arbitration proceedings. (c) Presumption respecting finding of fact by arbitrator. (d) Payments by employer prior and subsequent to determination by arbitrator; adjustments; failure of employer to make payments. (e) Furnishing of information by plan sponsor to employer respecting computation of withdrawal liability of employer; fees. 1402. Reimbursements for uncollectible withdrawal liability. (a) Required supplemental program to reimburse for payments due from employers uncollectible as a result of employer involvement in bankruptcy case or proceedings; program participation, premiums, etc. (b) Discretionary supplemental program to reimburse for payments due from employers uncollectible for other appropriate reasons. (c) Payment of cost of program. (d) Terms and conditions, limitations, etc., of supplemental program. (e) Arrangements by corporation with private insurers for implementation of program; election of coverage by participating plans with private insurers. 1403. Withdrawal liability payment fund. (a) Establishment of or participation in fund by plan sponsors. (b) Definitions. (c) Payments to plan; amount, criteria, etc. (d) Application of payments by plan. (e) Subrogation of fund to rights of plan. (f) Discharge of rights of fiduciary of fund; standards applicable, etc. (g) Prohibition on payments from fund to plan where certain labor negotiations involve employer withdrawn or partially withdrawn from plan and continuity of labor organization representing employees continues. (h) Purchase of insurance by employer. (i) Promulgation of regulations for establishment and maintenance of fund. 1404. Alternative method of withdrawal liability payments. 1405. Limitation on withdrawal liability. (a) Unfunded vested benefits allocable to employer in bona fide sale of assets of employer in arms-length transaction to unrelated party; maximum amount; determinative factors. (b) Unfunded vested benefits allocable to insolvent employer undergoing liquidation or dissolution; maximum amount; determinative factors. (c) Property not subject to enforcement of liability; precondition. (d) Insolvency of employer; liquidation or dissolution value of employer. (e) One or more withdrawals of employer attributable to same sale, liquidation, or dissolution. PART 2 - MERGER OR TRANSFER OF PLAN ASSETS OR LIABILITIES 1411. Mergers and transfers between multiemployer plans. (a) Authority of plan sponsor. (b) Criteria. (c) Actions not deemed violation of section 1106(a) or (b)(2) of this title. (d) Nature of plan to which liabilities are transferred. 1412. Transfers between a multiemployer plan and a single-employer plan. (a) General authority. (b) Accrued benefit of participant or beneficiary not lower immediately after effective date of transfer or merger. (c) Liability of multiemployer plan to corporation where single-employer plan terminates within 60 months after effective date of transfer; amount of liability, exemption, etc. (d) Guarantee of benefits under single-employer plan. (e) Transfer of liabilities by multiemployer plan to single-employer plan. (f) Additional requirements by corporation for protection of interests of plan participants, beneficiaries and corporation; approval by corporation of transfer of assets or liabilities to single-employer plan from plan in reorganization; covered transfers in connection with termination. 1413. Partition. (a) Authority of corporation. (b) Authority of plan sponsor upon application to corporation for partition order; procedures applicable to corporation. (c) Authority of corporation notwithstanding pendency of partition proceeding. (d) Scope of partition order. (e) Nature of plan created by partition. (f) Authority of corporation to obtain decree partitioning plan and appointing trustee for terminated portion of partitioned plan. 1414. Asset transfer rules. (a) Applicability and scope. (b) Exemption of de minimis transfers. (c) Written reciprocity agreements. 1415. Transfers pursuant to change in bargaining representative. (a) Authority to transfer from old plan to new plan pursuant to employee participation in another multiemployer plan after certified change of representative. (b) Notification by employer of plan sponsor of old plan; notification by plan sponsor of old plan of employer and plan sponsor of new plan; appeal by new plan to prevent transfer; further proceedings. (c) Reduction of amount of withdrawal liability of employer upon transfer of appropriate amount of assets and liabilities by plan sponsor of old plan to new plan. (d) Escrow payments by employer upon complete or partial withdrawal and prior to transfer. (e) Prohibition on transfer of assets to new plan by plan sponsor of old plan; exemptions. (f) Agreement between plan sponsors of old plan and new plan to transfer in compliance with other statutory provisions; reduction of withdrawal liability of employer from old plan; amount of withdrawal liability of employer to new plan. (g) Definitions. PART 3 - REORGANIZATION; MINIMUM CONTRIBUTION REQUIREMENT FOR MULTIEMPLOYER PLANS 1421. Reorganization status. (a) Reorganization index of plan for plan year greater than zero. (b) Determination of reorganization index of plan for plan year; applicable factors, definitions, etc. (c) Payment of benefits to participants. (d) Terminated multiemployer plans. 1422. Notice of reorganization and funding requirements. 1423. Minimum contribution requirement. (a) Maintenance of funding standard account; amount of accumulated funding deficiency. (b) Determination of amount; applicable factors. (c) Current contribution base; valuation contribution base. (d) Maximum amount; amount of funding standard requirement; applicability to plan amendments increasing benefits. (e) Adjustment of vested benefits charge. (f) Waiver of accumulated funding deficiency. (g) Statutory methods applicable for determinations. 1424. Overburden credit against minimum contribution requirement. (a) Applicability of overburden credit to determinations. (b) Determination of overburden status of plan. (c) Amount of overburden credit. (d) Amount of overburden factor. (e) Definitions; determinative factors. (f) Eligibility of plan for overburden credit for plan year. (g) Overburden credit where 2 or more multiemployer plans merge. 1425. Adjustments in accrued benefits. (a) Amendment of multiemployer plan in reorganization to reduce or eliminate accrued benefits attributable to employer contributions ineligible for guarantee of corporation; adjustment of vested benefits charge to reflect plan amendment. (b) Reduction of accrued benefits; notice by plan sponsors to plan participants and beneficiaries. (c) Recoupment by plan of excess benefit payment. (d) Amendment of plan to increase or restore accrued benefits previously reduced or rate of future benefit accruals; conditions, applicable factors, etc. (e) "Inactive participant" defined. (f) Promulgation of rules; contents, etc. 1426. Insolvent plans. (a) Suspension of payments of benefits; conditions, amount, etc. (b) Determination of insolvency status for plan year; definitions. (c) Determination by plan sponsor of plan in reorganization of resource benefit level of plan for each insolvency year; uniform application of suspension of benefits; adjustments of benefit payments. (d) Applicability and determinations respecting plan assets; time for determinations of resource benefit level and level of basic benefits. (e) Notice, etc., requirements of plan sponsor of plan in reorganization regarding insolvency and resource benefit levels. (f) Financial assistance from corporation; conditions and criteria applicable. PART 4 - FINANCIAL ASSISTANCE 1431. Assistance by corporation. (a) Authority; procedure applicable; amount. (b) Conditions; repayment terms. (c) Assistance pending final determination of application. PART 5 - BENEFITS AFTER TERMINATION 1441. Benefits under certain terminated plans. (a) Amendment of plan by plan sponsor to reduce benefits, and suspension of benefit payments. (b) Determinations respecting value of nonforfeitable benefits under terminated plan and value of assets of plan. (c) Amendment of plan by plan sponsor to reduce benefits for conservation of assets; factors applicable. (d) Suspension of benefit payments; determinative factors; powers and duties of plan sponsor; retroactive benefit payments. PART 6 - ENFORCEMENT 1451. Civil actions. (a) Persons entitled to maintain actions. (b) Failure of employer to make withdrawal liability payment within prescribed time. (c) Jurisdiction of Federal and State courts. (d) Venue and service of process. (e) Costs and expenses. (f) Time limitations. (g) Service of complaint on corporation; intervention by corporation. 1452. Penalty for failure to provide notice. 1453. Election of plan status. (a) Authority, time, and criteria. (b) Requirements. (c) Effective date. SUBTITLE F - TRANSITION RULES AND EFFECTIVE DATES 1461. Effective date; special rules. -SECREF- CHAPTER REFERRED TO IN OTHER SECTIONS This chapter is referred to in section 441 of this title; title 7 section 1a; title 15 sections 77b, 78c, 631b, 662; title 18 section 1027; title 20 section 1085; title 26 sections 412, 414; title 26 section 404; title 31 section 9502; title 42 sections 1395w-22, 1396s, 1396u-2; title 45 section 743. -End- -CITE- 29 USC SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS 01/06/03 -EXPCITE- TITLE 29 - LABOR CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS -HEAD- SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS -SECREF- SUBCHAPTER REFERRED TO IN OTHER SECTIONS This subchapter is referred to in sections 1201, 1202, 1203, 1343 of this title; title 18 sections 664, 1027, 1954; title 19 section 2345; title 26 section 6103; title 42 sections 666, 1395i. -End- -CITE- 29 USC Subtitle A - General Provisions 01/06/03 -EXPCITE- TITLE 29 - LABOR CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS Subtitle A - General Provisions -HEAD- SUBTITLE A - GENERAL PROVISIONS -End- -CITE- 29 USC Sec. 1001 01/06/03 -EXPCITE- TITLE 29 - LABOR CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS Subtitle A - General Provisions -HEAD- Sec. 1001. Congressional findings and declaration of policy -STATUTE- (a) Benefit plans as affecting interstate commerce and the Federal taxing power The Congress finds that the growth in size, scope, and numbers of employee benefit plans in recent years has been rapid and substantial; that the operational scope and economic impact of such plans is increasingly interstate; that the continued well-being and security of millions of employees and their dependents are directly affected by these plans; that they are affected with a national public interest; that they have become an important factor affecting the stability of employment and the successful development of industrial relations; that they have become an important factor in commerce because of the interstate character of their activities, and of the activities of their participants, and the employers, employee organizations, and other entities by which they are established or maintained; that a large volume of the activities of such plans are carried on by means of the mails and instrumentalities of interstate commerce; that owing to the lack of employee information and adequate safeguards concerning their operation, it is desirable in the interests of employees and their beneficiaries, and to provide for the general welfare and the free flow of commerce, that disclosure be made and safeguards be provided with respect to the establishment, operation, and administration of such plans; that they substantially affect the revenues of the United States because they are afforded preferential Federal tax treatment; that despite the enormous growth in such plans many employees with long years of employment are losing anticipated retirement benefits owing to the lack of vesting provisions in such plans; that owing to the inadequacy of current minimum standards, the soundness and stability of plans with respect to adequate funds to pay promised benefits may be endangered; that owing to the termination of plans before requisite funds have been accumulated, employees and their beneficiaries have been deprived of anticipated benefits; and that it is therefore desirable in the interests of employees and their beneficiaries, for the protection of the revenue of the United States, and to provide for the free flow of commerce, that minimum standards be provided assuring the equitable character of such plans and their financial soundness. (b) Protection of interstate commerce and beneficiaries by requiring disclosure and reporting, setting standards of conduct, etc., for fiduciaries It is hereby declared to be the policy of this chapter to protect interstate commerce and the interests of participants in employee benefit plans and their beneficiaries, by requiring the disclosure and reporting to participants and beneficiaries of financial and other information with respect thereto, by establishing standards of conduct, responsibility, and obligation for fiduciaries of employee benefit plans, and by providing for appropriate remedies, sanctions, and ready access to the Federal courts. (c) Protection of interstate commerce, the Federal taxing power, and beneficiaries by vesting of accrued benefits, setting minimum standards of funding, requiring termination insurance It is hereby further declared to be the policy of this chapter to protect interstate commerce, the Federal taxing power, and the interests of participants in private pension plans and their beneficiaries by improving the equitable character and the soundness of such plans by requiring them to vest the accrued benefits of employees with significant periods of service, to meet minimum standards of funding, and by requiring plan termination insurance. -SOURCE- (Pub. L. 93-406, title I, Sec. 2, Sept. 2, 1974, 88 Stat. 832.) -REFTEXT- REFERENCES IN TEXT This chapter, referred to in subsecs. (b) and (c), was in the original "this Act", meaning Pub. L. 93-406, known as the Employee Retirement Income Security Act of 1974. Titles I, III, and IV of such Act are classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note set out below and Tables. -MISC1- EFFECTIVE DATE OF 1984 AMENDMENTS; TRANSITIONAL RULES Pub. L. 98-397, title III, Secs. 302, 303, Aug. 23, 1984, 98 Stat. 1451, 1452, as amended by Pub. L. 99-514, Sec. 2, title XI, Sec. 1145(c), title XVIII, Sec. 1898(g), (h)(1)(A), (2), (3), Oct. 22, 1986, 100 Stat. 2095, 2491, 2956, 2957; Pub. L. 101-239, title VII, Sec. 7861(d)(1), Dec. 19, 1989, 103 Stat. 2431, provided that: "SEC. 302. GENERAL EFFECTIVE DATES. "(a) In General. - Except as otherwise provided in this section or section 303, the amendments made by this Act [see Short Title of 1984 Amendments note below] shall apply to plan years beginning after December 31, 1984. "(b) Special Rule for Collective Bargaining Agreements. - In the case of a plan maintained pursuant to 1 or more collective bargaining agreements between employee representatives and 1 or more employers ratified before the date of the enactment of this Act [Aug. 23, 1984], except as provided in subsection (d) or section 303, the amendments made by this Act shall not apply to plan years beginning before the earlier of - "(1) the date on which the last of the collective bargaining agreements relating to the plan terminates (determined without regard to any extension thereof agreed to after the date of the enactment of this Act [Aug. 23, 1984]), or "(2) July 1, 1988. For purposes of paragraph (1), any plan amendment made pursuant to a collective bargaining agreement relating to the plan which amends the plan solely to conform to any requirement added by title I or II [of Pub. L. 98-397] shall not be treated as a termination of such collective bargaining agreement. "(c) Notice Requirement. - The amendments made by section 207 [amending sections 402 and 6652 of Title 26, Internal Revenue Code] shall apply to distributions after December 31, 1984. "(d) Special Rules for Treatment of Plan Amendments. - "(1) In general. - Except as provided in paragraph (2), the amendments made by section 301 [amending section 1054 of this title and sections 401 and 411 of Title 26] shall apply to plan amendments made after July 30, 1984. "(2) Special rule for collective bargaining agreements. - In the case of a plan maintained pursuant to 1 or more collective bargaining agreements entered into before January 1, 1985, which are - "(A) between employee representatives and 1 or more employers, and "(B) successor agreements to 1 or more collective bargaining agreements which terminate after July 30, 1984, and before January 1, 1985, the amendments made by section 301 shall not apply to plan amendments adopted before April 1, 1985, pursuant to such successor agreements (without regard to any modification or reopening after December 31, 1984). "SEC. 303. TRANSITIONAL RULES. "(a) Amendments Relating to Vesting Rules; Breaks in Service; Maternity or Paternity Leave. - "(1) Minimum age for vesting. - The amendments made by sections 102(b) and 202(b) [amending section 1053 of this title and section 411 of Title 26, Internal Revenue Code] shall apply in the case of participants who have at least 1 hour of service under the plan on or after the first day of the first plan year to which the amendments made by this Act [see Short Title of 1984 Amendments note below] apply. "(2) Break in service rules. - If, as of the day before the first day of the first plan year to which the amendments made by this Act apply, section 202(a) or (b) or 203(b) of the Employee Retirement Income Security Act of 1974 [section 1052(a) or (b) or section 1053(b) of this title] or section 410(a) or 411(a) of the Internal Revenue Code of 1986 [section 410(a) or section 411(a) of Title 26] (as in effect on the day before the date of the enactment of this Act [Aug. 23, 1984]) would not require any service to be taken into account, nothing in the amendments made by subsections (c) and (d) of section 102 of this Act [amending sections 1052 and 1053 of this title] and subsections (c) and (d) of section 202 of this Act [amending sections 410 and 411 of Title 26] shall be construed as requiring such service to be taken into account under such section 202(a) or (b), 203(b), 410(a), or 411(a); as the case may be. "(3) Maternity or paternity leave. - The amendments made by sections 102(e) and 202(e) [amending sections 1052 to 1054 of this title and sections 410 and 411 of Title 26] shall apply in the case of absences from work which begin on or after the first day of the first plan year to which the amendments made by this Act apply. "(b) Special Rule for Amendments Relating to Maternity or Paternity Absences. - If a plan is administered in a manner which would meet the amendments made by sections 102(e) and 202(e) [amending sections 1052 to 1054 of this title and sections 410 and 411 of Title 26] (relating to certain maternity or paternity absences not treated as breaks in service), such plan need not be amended to meet such requirements until the earlier of - "(1) the date on which such plan is first otherwise amended after the date of the enactment of this Act [Aug. 23, 1984], or "(2) the beginning of the first plan year beginning after December 31, 1986. "(c) Requirement of Joint and Survivor Annuity and Preretirement Survivor Annuity. - "(1) Requirement that participant have at least 1 hour of service or paid leave on or after date of enactment. - The amendments made by sections 103 and 203 [amending section 1055 of this title and section 401 of Title 26 and enacting section 417 of Title 26] shall apply only in the case of participants who have at least 1 hour of service under the plan on or after the date of the enactment of this Act [Aug. 23, 1984] or have at least 1 hour of paid leave on or after such date of enactment. "(2) Requirement that preretirement survivor annuity be provided in case of certain participants dying on or after date of enactment. - In the case of any participant - "(A) who has at least 1 hour of service under the plan on or after the date of the enactment of this Act [Aug. 23, 1984] or has at least 1 hour of paid leave on or after such date of enactment, "(B) who dies before the annuity starting date, and "(C) who dies on or after the date of the enactment of this Act [Aug. 23, 1984] and before the first day of the first plan year to which the amendments made by this Act apply, the amendments made by sections 103 and 203 shall be treated as in effect as of the time of such participant's death. In the case of a profit-sharing or stock bonus plan to which this paragraph applies, the plan shall be treated as meeting the requirements of the amendments made by sections 103 and 203 with respect to any participant if the plan made a distribution in a form other than a life annuity to the surviving spouse of the participant of such participant's nonforfeitable benefit. "(3) Spousal consent required for certain elections after december 31, 1984. - Any election after December 31, 1984, and before the first day of the first plan year to which the amendments made by this Act apply not to take a joint and survivor annuity shall not be effective unless the requirements of section 205(c)(2) of the Employee Retirement Income Security Act of 1974 [section 1055(c)(2) of this title] (as amended by section 103 of this Act) and section 417(a)(2) of the Internal Revenue Code of 1986 [section 417(a)(2) of Title 26] (as added by section 203 of this Act) are met with respect to such election. "(4) Elimination of double death benefits. - "(A) In general. - In the case of a participant described in paragraph (2), death benefits (other than a qualified joint and survivor annuity or a qualified preretirement survivor annuity) payable to any beneficiary shall be reduced by the amount payable to the surviving spouse of such participant by reason of paragraph (2). The reduction under the preceding sentence shall be made on the basis of the respective present values (as of the date of the participant's death) of such death benefits and the amount so payable to the surviving spouse. "(B) Spouse may waive provisions of paragraph (2). - In the case of any participant described in paragraph (2), the surviving spouse of such participant may waive the provisions of paragraph (2). Such waiver shall be made on or before the close of the second plan year to which the amendments made by section 103 of this Act [amending section 1055 of this title] apply. Such a waiver shall not be treated as a transfer of property for purposes of chapter 12 of the Internal Revenue Code of 1986 and shall not be treated as an assignment or alienation for purposes of section 401(a)(13) of the Internal Revenue Code of 1986 [section 401(a)(13) of Title 26] or section 206(d) of the Employee Retirement Income Security Act of 1974 [section 1056 of this title]. "(d) Amendments Relating to Assignments in Divorce, Etc., Proceedings. - The amendments made by sections 104 and 204 [amending sections 1056 and 1144 of this title and sections 72, 401, 402 and 414 of Title 26] shall take effect on January 1, 1985, except that in the case of a domestic relations order entered before such date, the plan administrator - "(1) shall treat such order as a qualified domestic relations order if such administrator is paying benefits pursuant to such order on such date, and "(2) may treat any other such order entered before such date as a qualified domestic relations order even if such order does not meet the requirements of such amendments. "(e) Treatment of Certain Participants Who Separate From Service Before Date of Enactment. - "(1) Joint and survivor annuity provisions of employee retirement income security act of 1974 apply to certain participants. - If - "(A) a participant had at least 1 hour of service under the plan on or after September 2, 1974, "(B) section 205 of the Employee Retirement Income Security Act of 1974 [section 1055 of this title] and section 401(a)(11) of the Internal Revenue Code of 1986 [section 401(a)(11) of Title 26] (as in effect on the day before the date of the enactment of this Act [Aug. 23, 1984]) would not (but for this paragraph) apply to such participant, "(C) the amendments made by sections 103 and 203 [amending section 1055 of this title and section 401 of Title 26 and enacting section 417 of Title 26] of this Act do not apply to such participant, and "(D) as of the date of the enactment of this Act [Aug. 23, 1984], the participant's annuity starting date has not occurred and the participant is alive, then such participant may elect to have section 205 of the Employee Retirement Income Security Act of 1974 [section 1055 of this title] and section 401(a)(11) of the Internal Revenue Code of 1986 [section 401(a)(11) of Title 26] (as in effect on the day before the date of the enactment of this Act) apply. "(2) Treatment of certain participants who perform service on or after january 1, 1976. - If - "(A) a participant had at least 1 hour of service in any plan year beginning on or after January 1, 1976, "(B) the amendments made by sections 103 and 203 [amending section 1055 of this title and section 401 of Title 26 and enacting section 417 of Title 26] would not (but for this paragraph) apply to such participant, "(C) when such participant separated from service, such participant had at least 10 years of service under the plan and had a nonforfeitable right to all (or any portion) of such participant's accrued benefit derived from employer contributions, and "(D) as of the date of the enactment of this Act [Aug. 23, 1984], such participant's annuity starting date has not occurred and such participant is alive, then such participant may elect to have the qualified preretirement survivor annuity requirements of the amendments made by sections 103 and 203 apply. "(3) Period during which election may be made. - An election under paragraph (1) or (2) may be made by any participant during the period - "(A) beginning on the date of the enactment of this Act [Aug. 23, 1984], and "(B) ending on the earlier of the participant's annuity starting date or the date of the participant's death. "(4) Requirement of notice. - "(A) In general. - "(i) Time and manner. - Every plan shall give notice of the provisions of this subsection at such time or times and in such manner or manners as the Secretary of the Treasury may prescribe. "(ii) Penalty. - If any plan fails to meet the requirements of clause (i), such plan shall pay a civil penalty to the Secretary of the Treasury equal to $1 per participant for each day during the period beginning with the first day on which such failure occurs and ending on the day before notice is given by the plan; except that the amount of such penalty imposed on any plan shall not exceed $2,500. "(B) Responsibilities of secretary of labor. - The Secretary of Labor shall take such steps (by public announcements and otherwise) as may be necessary or appropriate to bring to public attention the provisions of this subsection. "(f) The amendments made by section 301 of this Act [amending section 1054 of this title and sections 401 and 411 of Title 26] shall not apply to the termination of a defined benefit plan if such termination - "(1) is pursuant to a resolution directing the termination of such plan which was adopted by the Board of Directors of a corporation on July 17, 1984, and "(2) occurred on November 30, 1984." [Amendment by section 1145(c) of Pub. L. 99-514 applicable as if included in the amendments made by the Retirement Equity Act of 1984, Pub. L. 98-397, see section 1145(d) of Pub. L. 99-514, set out as a note under section 401 of Title 26.] [Amendment by section 1898(g), (h)(1)(A), (2), (3) of Pub. L. 99-514 effective as if included in the provision of the Retirement Equity Act of 1984, Pub. L. 98-397, to which such amendment relates, except as otherwise provided, see section 1898(j) of Pub. L. 99-514, set out as a note under section 401 of Title 26.] SHORT TITLE OF 1997 AMENDMENT Pub. L. 105-92, Sec. 1, Nov. 19, 1997, 111 Stat. 2139, provided that: "This Act [enacting sections 1146 and 1147 of this title and provisions set out as a note under section 1146 of this title] may be cited as the 'Savings Are Vital to Everyone's Retirement Act of 1997'." SHORT TITLE OF 1994 AMENDMENT Pub. L. 103-401, Sec. 1, Oct. 22, 1994, 108 Stat. 4172, provided that: "This Act [amending section 1132 of this title and enacting provisions set out as notes under section 1132 of this title] may be cited as the 'Pension Annuitants Protection Act of 1994'." SHORT TITLE OF 1991 AMENDMENT Pub. L. 102-89, Sec. 1, Aug. 14, 1991, 105 Stat. 446, provided that: "This Act [amending section 1002 of this title and enacting provisions set out as a note under section 1002 of this title] may be cited as the 'Rural Telephone Cooperative Associations ERISA Amendments Act of 1991'." SHORT TITLE OF 1986 AMENDMENT Pub. L. 99-272, title XI, Sec. 11001, Apr. 7, 1986, 100 Stat. 237, provided that: "This title [enacting sections 1001b, 1085a, 1143a, 1349, 1369, and 1370 of this title, amending sections 1002, 1023, 1024, 1054, 1061, 1083, 1084, 1086, 1301, 1303, 1305, 1306, 1322, 1322a, 1341, 1342, 1344, 1347, 1348, 1362 to 1364, and 1366 to 1368 of this title, and sections 402, 404, 412, and 501 of Title 26, Internal Revenue Code, repealing section 1304 of this title, and enacting provisions set out as notes under sections 1023, 1054, 1085a, 1135, 1143a, 1303, 1306, 1341, 1362, and 1369 of this title and section 404 of Title 26] may be cited as 'Single-Employer Pension Plan Amendments Act of 1986'." SHORT TITLE OF 1984 AMENDMENT Pub. L. 98-397, Sec. 1, Aug. 23, 1984, 98 Stat. 1426, provided that: "This Act [enacting section 417 of Title 26, Internal Revenue Code, amending sections 1025, 1052 to 1056, and 1144 of this title and sections 72, 401, 402, 410, 411, 414, 6057, and 6652 of Title 26, and enacting provisions set out as notes under this section] may be cited as the 'Retirement Equity Act of 1984'." SHORT TITLE OF 1980 AMENDMENT Pub. L. 96-364, Sec. 1, Sept. 26, 1980, 94 Stat. 1208, provided that: "This Act [enacting sections 1001a, 1145, 1322a, 1322b, 1323, 1341a, 1381 to 1405, 1411 to 1415, 1421 to 1426, 1431, 1441, and 1451 to 1453 of this title and sections 418 to 418E of Title 26, Internal Revenue Code, amending sections 1002, 1023, 1051, 1053, 1058, 1081, 1082, 1103, 1104, 1108, 1132, 1202, 1301 to 1303, 1305 to 1307, 1321, 1322, 1341, 1342, 1344, 1346, 1348, 1361 to 1366, and 1461 of this title, section 8521 of Title 5, Government Organization and Employees, and sections 194, 401, 404, 411 to 414, 501, 3304, 4971 and 4975 of Title 26, repealing former section 1323 of this title, and enacting provisions set out as notes under this section, sections 1001a, 1302, 1306, 1381, 1385, 1426 and 1461 of this title, section 8521 of Title 5, and sections 401, 404, 414, 418, and 3304 of Title 26] may be cited as the 'Multiemployer Pension Plan Amendments Act of 1980'." SHORT TITLE Section 1 of Pub. L. 93-406 provided that: "This Act [enacting this chapter, sections 408 to 415, 4971 to 4975, 6057 to 6059, 6692, and 6693 of Title 26, Internal Revenue Code, section 1037 of former Title 31, Money and Finance, and section 1320b-1 of Title 42, The Public Health and Welfare, amending section 441 of this title, sections 5108 and 5109 of Title 5, Government Organization and Employees, sections 664, 1027, and 1954 of Title 18, Crimes and Criminal Procedure, sections 37, 46, 56, 62, 72, 101, 122, 219, 220, 275, 401, 402, 403, 404, 405, 406, 407, 503, 801, 805, 871, 901, 1304, 1348, 1379, 2039, 3401, 6033, 6047, 6051, 6103, 6104, 6161, 6201, 6204, 6211, 6212, 6213, 6214, 6344, 6501, 6503, 6511, 6512, 6601, 6652, 6653, 6659, 6676, 6677, 6679, 6682, 6688, 6690, 6861, 6862, 7422, 7451, 7459, 7482, 7701, and 7802, of Title 26, and section 846 of former Title 31, repealing sections 301 to 309 of this title, and enacting provisions set out as notes under sections 72, 122, 219, 401, 402, 403, 404, 410, 411, 412, 415, 501, 4973, 4975, 6057, 6059, 6103, 6104, 7476, and 7802 of Title 26] may be cited as the 'Employee Retirement Income Security Act of 1974'." COORDINATION OF INTERNAL REVENUE CODE OF 1986 WITH EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974 This subchapter and subchapter III of this chapter 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 Pub. L. 100-203, set out as a note under section 401 of Title 26, Internal Revenue Code. STUDY BY COMPTROLLER GENERAL OF THE UNITED STATES OF EFFECT OF PENSION RULES ON WOMEN Pub. L. 98-397, title III, Sec. 304, Aug. 23, 1984, 98 Stat. 1454, directed Comptroller General to conduct detailed study of effect on women of participation, vesting, funding, integration, survivorship features, and other relevant plan and Federal pension rules and, not later than Jan. 1, 1990, submit a report on the study to Congress. STUDY BY GENERAL ACCOUNTING OFFICE REGARDING RESULTS OF MULTIEMPLOYER PENSION PLAN AMENDMENTS ACT OF 1980; PROCEDURES APPLICABLE Pub. L. 96-364, title IV, Sec. 413, Sept. 26, 1980, 94 Stat. 1309, directed Comptroller General to conduct a study of effects of amendments made by Pub. L. 99-364 on: participants, beneficiaries, employers, employee organizations, and other parties, and the self-sufficiency of the fund established under section 1305 of this title with respect to benefits guaranteed under section 1322a of this title, taking into account financial conditions of multiemployer plans and employers and to report to Congress no later than June 30, 1985, results of study including his recommendations with respect thereto. PRESIDENT'S COMMISSION ON PENSION POLICY; EXTENSION OF TERM; CONTINUATION OF EFFORT Pub. L. 96-14, May 24, 1979, 93 Stat. 29, known as the Pension Policy Commission Act, authorized the President's Commission on Pension Policy established by Ex. Ord. No. 12071 to continue in operation for two years following May 24, 1979, and set forth membership, compensation, implementation, and reporting requirements, with the Commission to cease to exist ninety days after submission of the final report. REORGANIZATION PLAN NO. 4 OF 1978 43 F.R. 47713, 92 STAT. 3790 Prepared by the President and transmitted to the Senate and the House of Representatives in Congress assembled, August 10, 1978, pursuant to the provisions of Chapter 9 of Title 5 of the United States Code.(!1) EMPLOYEE RETIREMENT INCOME SECURITY ACT TRANSFERS SECTION 101. TRANSFER TO THE SECRETARY OF THE TREASURY Except as otherwise provided in Sections 104 and 106 of this Plan, all authority of the Secretary of Labor to issue the following described documents pursuant to the statutes hereinafter specified is hereby transferred to the Secretary of the Treasury: (a) regulations, rulings, opinions, variances and waivers under Parts 2 [29 U.S.C. 1051 et seq.] and 3 [29 U.S.C. 1081 et seq.] of Subtitle B of Title I and subsection 1012(c) [set out as a note under 26 U.S.C. 411] of Title II of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1001 note) (hereinafter referred to as "ERISA"). EXCEPT for sections and subsections 201, 203(a)(3)(B), 209, and 301(a) of ERISA; [29 U.S.C. 1051, 1053(a)(3)(B), 1059, and 1081(a)]; (b) such regulations, rulings, and opinions which are granted to the Secretary of Labor under Sections 404, 410, 411, 412, and 413 of the Internal Revenue Code of 1954, as amended [26 U.S.C. 404, 410, 411, 412, and 413], (hereinafter referred to as the "Code"). EXCEPT for subsection 411(a)(3)(B) of the Code [26 U.S.C. 411(a)(3)(B)] and the definitions of "collectively bargained plan" and "collective bargaining agreement" contained in subsections 404 (a)(1)(B) and (a)(1)(C), 410 (b)(2)(A) and (b)(2)(B), and 413(a)(1) of the Code [26 U.S.C. 404(a)(1)(B) and (a)(1)(C), 410 (b)(2)(A) and (b)(2)(B), and 413(a)(1)]; and (c) regulations, rulings, and opinions under subsections 3(19), 3(22), 3(23), 3(24), 3(25), 3(27), 3(28), 3(29), 3(30), and 3(31) of Subtitle A of Title I of ERISA [29 U.S.C. 1002(19), (22), (23), (24), (25), (27), (28), (29), (30), and (31)]. SEC. 102. TRANSFER TO THE SECRETARY OF LABOR Except as otherwise provided in Section 105 of this Plan, all authority of the Secretary of the Treasury to issue the following described documents pursuant to the statutes hereinafter specified is hereby transferred to the Secretary of Labor; (a) regulations, rulings, opinions, and exemptions under section 4975 of the Code [26 U.S.C. 4975], EXCEPT for (i) subsections 4975(a), (b), (c)(3), (d)(3), (c)(1), and (e)(7) of the Code [26 U.S.C. 4975(a), (b), (c)(3), (d)(3), (e)(1), and (e)(7)]; (ii) to the extent necessary for the continued enforcement of subsections 4975(a) and (b) [26 U.S.C. 4975(a) and (b)] by the Secretary of the Treasury, subsections 4975(f)(1), (f)(2), (f)(4), (f)(5) and (f)(6) of the Code [26 U.S.C. 4975(f)(1), (f)(2), (f)(4), (f)(5) and (f)(6)]; and (iii) exemptions with respect to transactions that are exempted by subsection 404(c) of ERISA [29 U.S.C. 1104(c)] from the provisions of Part 4 of Subtitle B of Title I of ERISA [29 U.S.C. 1101 et seq.]; and (b) regulations, rulings, and opinions under subsection 2003(c) of ERISA [set out as a note under 29 U.S.C. 4975]. EXCEPT for subsection 2003(c)(1)(B) [set out in the note under 26 U.S.C. 4975]. SEC. 103. COORDINATION CONCERNING CERTAIN FIDUCIARY ACTIONS In the case of fiduciary actions which are subject to Part 4 of Subtitle B of Title I of ERISA [29 U.S.C. 1101 et seq.], the Secretary of the Treasury shall notify the Secretary of Labor prior to the time of commencing any proceeding to determine whether the action violates the exclusive benefit rule of subsection 401(a) of the Code [26 U.S.C. 401(a)], but not later than prior to issuing a preliminary notice of intent to disqualify under that rule, and the Secretary of the Treasury shall not issue a determination that a plan or trust does not satisfy the requirements of subsection 401(a) by reason of the exclusive benefit rule of subsection 401(a), unless within 90 days after the date on which the Secretary of the Treasury notifies the Secretary of Labor of pending action, the Secretary of Labor certifies that he has no objection to the disqualification or the Secretary of Labor fails to respond to the Secretary of the Treasury. The requirements of this paragraph do not apply in the case of any termination or jeopardy assessment under sections 6851 or 6861 of the Code [26 U.S.C. 6851 or 6861] that has been approved in advance by the Commissioner of Internal Revenue, or, as delegated, the Assistant Commissioner for Employee Plans and Exempt Organizations. SEC. 104. ENFORCEMENT BY THE SECRETARY OF LABOR The transfers provided for in Section 101 of this Plan shall not affect the ability of the Secretary of Labor, subject to the provisions of Title III of ERISA [29 U.S.C. 1201 et seq.] relating to jurisdiction, administration, and enforcement, to engage in enforcement under Section 502 of ERISA [29 U.S.C. 1132] or to exercise the authority set forth under Title III of ERISA, including the ability to make interpretations necessary to engage in such enforcement or to exercise such authority. However, in bringing such actions and in exercising such authority with respect to Parts 2 [29 U.S.C. 1051 et seq.] and 3 [29 U.S.C. 1081 et seq.] of Subtitle B of Title I of ERISA and any definitions for which the authority of the Secretary of Labor is transferred to the Secretary of the Treasury as provided in Section 101 of this Plan, the Secretary of Labor shall be bound by the regulations, rulings, opinions, variances, and waivers issued by the Secretary of the Treasury. SEC. 105. ENFORCEMENT BY THE SECRETARY OF THE TREASURY The transfers provided for in Section 102 of this Plan shall not affect the ability of the Secretary of the Treasury, subject to the provisions of Title III of ERISA [29 U.S.C. 1201 et seq.] relating to jurisdiction, administration, and enforcement, (a) to audit plans and employers and to enforce the excise tax provisions of subsections 4975(a) and 4975(b) of the Code [26 U.S.C. 4975(a) and (b)], to exercise the authority set forth in subsections 502(b)(1) and 502(h) of ERISA [29 U.S.C. 1132(b)(1) and (h)], or to exercise the authority set forth in Title III of ERISA, including the ability to make interpretations necessary to audit, to enforce such taxes, and to exercise such authority; and (b) consistent with the coordination requirements under Section 103 of this Plan, to disqualify, under section 401 of the Code [26 U.S.C. 401], a plan subject to Part 4 of Subtitle B of Title I of ERISA [29 U.S.C. 1101 et seq.], including the ability to make the interpretations necessary to make such disqualification. However, in enforcing such excise taxes and, to the extent applicable, in disqualifying such plans the Secretary of the Treasury shall be bound by the regulations, rulings, opinions, and exemptions issued by the Secretary of Labor pursuant to the authority transferred to the Secretary of Labor as provided in Section 102 of this Plan. SEC. 106. COORDINATION FOR SECTION 101 TRANSFER (a) The Secretary of the Treasury shall not exercise the functions transferred pursuant to Section 101 of this Plan to issue in proposed or final form any of the documents described in subsection (b) of this Section in any case in which such documents would significantly impact on or substantially affect collectively bargained plans unless, within 100 calendar days after the Secretary of the Treasury notifies the Secretary of Labor of such proposed action, the Secretary of Labor certifies that he has no objection or he fails to respond to the Secretary of the Treasury. The fact of such a notification, except for such notification for documents described in subsection (b)(iv) of this Section, from the Secretary of the Treasury to the Secretary of Labor shall be announced by the Secretary of Labor to the public within ten days following the date of receipt of the notification by the Secretary of Labor. (b) The documents to which this Section applies are: (i) amendments to regulations issued pursuant to subsections 202(a)(3), 203(b)(2) and (3)(A), 204(b)(3)(A), (C), and (E), and 210(a)(2) of ERISA [29 U.S.C. 1052(a)(3), 1053(b)(2) and (3)(A), 1054(b)(3)(A), (C), and (E), and 1060(a)(2)], and subsections 410(a)(3) and 411(a)(5), (6)(A), and (b)(3)(A), (C), and (E), 413(b)(4) and (c)(3) and 414(f) of the Code [26 U.S.C. 410(a)(3) and 411(a)(5), (6)(A), and (b)(3)(A), (C), and (E), 413 (b)(4) and (c)(3) and 414(f)]; (ii) regulations issued pursuant to subsections 204(b)(3)(D), 302(c)(8), and 304(a) and (b)(2)(A) of ERISA [29 U.S.C. 1054(b)(3)(D), 1082(c)(8), and 1084(a) and (b)(2)(A)], and subsections 411(b)(3)(D), 412(c)(8), (e), and (f)(2)(A) of the Code [26 U.S.C. 411(b)(3)(D), 412(c)(8), (e), and (f)(2)(A)]; and (iii) revenue rulings (within the meaning of 26 CFR Section 601.201(a)(6)), revenue procedures, and similar publications, if the rulings, procedures and publications are issued under one of the statutory provisions listed in (i) and (ii) of this subsection; and (iv) rulings (within the meaning of 26 CFR Section 601.201(a)(2)) issued prior to the issuance of a published regulation under one of the statutory provisions listed in (i) and (ii) of this subsection and not issued under a published Revenue Ruling. (c) For those documents described in subsections (b)(i), (b)(ii) and (b)(iii) of this Section, the Secretary of Labor may request the Secretary of the Treasury to initiate the actions described in this Section 106 of this Plan. SEC. 107. EVALUATION On or before January 31, 1980, the President will submit to both Houses of the Congress an evaluation of the extent to which this Reorganization Plan has alleviated the problems associated with the present administrative structure under ERISA, accompanied by specific legislative recommendations for a long-term administrative structure under ERISA. SEC. 108. INCIDENTAL TRANSFERS So much of the personnel, property, records, and unexpended balances of appropriations, allocations and other funds employed, used, held, available, or to be made available in connection with the functions transferred under this Plan, as the Director of the Office of Management and Budget shall determine, shall be transferred to the appropriate agency, or component at such time or times as the Director of the Office of Management and Budget shall provide, except that no such unexpended balances transferred shall be used for purposes other than those for which the appropriation was originally made. The Director of the Office of Management and Budget shall provide for terminating the affairs of any agencies abolished herein and for such further measures and dispositions as such Director deems necessary to effectuate the purposes of this Reorganization Plan. SEC. 109. EFFECTIVE DATE The provisions of this Reorganization Plan shall become effective at such time or times, on or before April 30, 1979, as the President shall specify, but not sooner than the earliest time allowable under Section 906 of Title 5, United States Code. MESSAGE OF THE PRESIDENT To the Congress of the United States: Today I am submitting to the Congress my fourth Reorganization Plan for 1978. This proposal is designed to simplify and improve the unnecessarily complex administrative requirements of the Employee Retirement Income Security Act of 1974 (ERISA) [see Short Title note set out under this section]. The new plan will eliminate overlap and duplication in the administration of ERISA and help us achieve our goal of well regulated private pension plans. ERISA was an essential step in the protection of worker pension rights. Its administrative provisions, however, have resulted in bureaucratic confusion and have been justifiably criticized by employers and unions alike. The biggest problem has been overlapping jurisdictional authority. Under current ERISA provisions, the Departments of Treasury and Labor both have authority to issue regulations and decisions. This dual jurisdiction has delayed a good many important rulings and, more importantly, produced bureaucratic runarounds and burdensome reporting requirements. The new plan will significantly reduce these problems. In addition, both Departments are trying to cut red tape and paperwork, to eliminate unnecessary reporting requirements, and to streamline forms wherever possible. Both Departments have already made considerable progress, and both will continue the effort to simplify their rules and their forms. The Reorganization Plan is the most significant result of their joint effort to modify and simplify ERISA. It will eliminate most of the jurisdictional overlap between Treasury and Labor by making the following changes: 1) Treasury will have statutory authority for minimum standards. The new plan puts all responsibility for funding, participation, and vesting of benefit rights in the Department of Treasury. These standards are necessary to ensure that employee benefit plans are adequately funded and that all beneficiary rights are protected. Treasury is the most appropriate Department to administer these provisions; however, Labor will continue to have veto power over Treasury decisions that significantly affect collectively bargained plans. 2) Labor will have statutory authority for fiduciary obligations. ERISA prohibits transactions in which self-interest or conflict of interest could occur, but allows certain exemptions from these prohibitions. Labor will be responsible for overseeing fiduciary conduct under these provisions. 3) Both Departments will retain enforcement powers. The Reorganization Plan will continue Treasury's authority to audit plans and levy tax penalties for any deviation from standards. The plan will also continue Labor's authority to bring civil action against plans and fiduciaries. These provisions are retained in order to keep the special expertise of each Department available. New coordination between the Departments will eliminate duplicative investigations of alleged violations. This reorganization will make an immediate improvement in ERISA's administration. It will eliminate almost all of the dual and overlapping authority in the two departments and dramatically cut the time required to process applications for exemptions from prohibited transactions. This plan is an interim arrangement. After the Departments have had a chance to administer ERISA under this new plan, the Office of Management and Budget and the Departments will jointly evaluate that experience. Based on that evaluation, early in 1980, the Administration will make appropriate legislative proposals to establish a long-term administrative structure for ERISA. Each provision in this reorganization will accomplish one or more of the purposes in Title 5 of U.S.C. 901(a). There will be no change in expenditure or personnel levels, although a small number of people will be transferred from the Department of Treasury to the Department of Labor. We all recognize that the administration of ERISA has been unduly burdensome. I am confident that this reorganization will significantly relieve much of that burden. This plan is the culmination of our effort to streamline ERISA. It provides an administrative arrangement that will work. ERISA has been a symbol of unnecessarily complex government regulation. I hope this new step will become equally symbolic of my Administration's commitment to making government more effective and less intrusive in the lives of our people. Jimmy Carter. The White House, August 10, 1978. -EXEC- EXECUTIVE ORDER NO. 12071 Ex. Ord. No. 12071, July 12, 1978, 43 F.R. 30259, which established the President's Commission on Pension Policy and provided for its membership, functions, etc., was revoked by Ex. Ord. No. 12379, Sec. 1, Aug. 17, 1982, 47 F.R. 36099, set out as a note under section 14 of the Federal Advisory Committee Act in the Appendix to Title 5, Government Organization and Employees. EX. ORD. NO. 12108. EFFECTIVE DATE OF ERISA TRANSFERS Ex. Ord. No. 12108, Dec. 28, 1978, 44 F.R. 1065, provided: By the authority vested in me as President of the United States of America by Section 109 of Reorganization Plan No. 4 of 1978 (43 F.R. 47713) [set out above], it is hereby ordered that the provisions of Reorganization Plan No. 4 of 1978 shall be effective on Sunday, December 31, 1978. Jimmy Carter. EXECUTIVE ORDER NO. 12262 Ex. Ord. No. 12262, Jan. 7, 1981, 46 F.R. 2313, which established the Interagency Employee Benefit Council and provided for its membership, functions, etc., was revoked by Ex. Ord. No. 12379, Sec. 9, Aug. 17, 1982, 47 F.R. 36099, set out as a note under section 14 of the Federal Advisory Committee Act in the Appendix to Title 5, Government Organization and Employees. -FOOTNOTE- (!1) As amended September 20, 1978. -End- -CITE- 29 USC Sec. 1001a 01/06/03 -EXPCITE- TITLE 29 - LABOR CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS Subtitle A - General Provisions -HEAD- Sec. 1001a. Additional Congressional findings and declaration of policy -STATUTE- (a) Effects of multiemployer pension plans The Congress finds that - (1) multiemployer pension plans have a substantial impact on interstate commerce and are affected with a national public interest; (2) multiemployer pension plans have accounted for a substantial portion of the increase in private pension plan coverage over the past three decades; (3) the continued well-being and security of millions of employees, retirees, and their dependents are directly affected by multiemployer pension plans; and (4)(A) withdrawals of contributing employers from a multiemployer pension plan frequently result in substantially increased funding obligations for employers who continue to contribute to the plan, adversely affecting the plan, its participants and beneficiaries, and labor-management relations, and (B) in a declining industry, the incidence of employer withdrawals is higher and the adverse effects described in subparagraph (A) are exacerbated. (b) Modification of multiemployer plan termination insurance provisions and replacement of program The Congress further finds that - (1) it is desirable to modify the current multiemployer plan termination insurance provisions in order to increase the likelihood of protecting plan participants against benefit losses; and (2) it is desirable to replace the termination insurance program for multiemployer pension plans with an insolvency-based benefit protection program that will enhance the financial soundness of such plans, place primary emphasis on plan continuation, and contain program costs within reasonable limits. (c) Policy It is hereby declared to be the policy of this Act - (1) to foster and facilitate interstate commerce, (2) to alleviate certain problems which tend to discourage the maintenance and growth of multiemployer pension plans, (3) to provide reasonable protection for the interests of participants and beneficiaries of financially distressed multiemployer pension plans, and (4) to provide a financially self-sufficient program for the guarantee of employee benefits under multiemployer plans. -SOURCE- (Pub. L. 96-364, Sec. 3, Sept. 26, 1980, 94 Stat. 1209.) -REFTEXT- REFERENCES IN TEXT This Act, referred to in subsec. (c), is Pub. L. 96-364, Sept. 26, 1980, 94 Stat. 1208, known as the Multiemployer Pension Plan Amendments Act of 1980. For complete classification of this Act to the Code, see Short Title of 1980 Amendment note set out under section 1001 of this title and Tables. -COD- CODIFICATION Section was enacted as part of the Multiemployer Pension Plan Amendments Act of 1980, and not as part of the Employee Retirement Income Security Act of 1974 which comprises this chapter. -MISC1- EFFECTIVE DATE Section effective Sept. 26, 1980, see section 1461(e)(1) of this title. STUDY AND REPORT RESPECTING COLLECTIVE BARGAINING FOR CONTRIBUTIONS TO, AND BENEFITS FROM, MULTIEMPLOYER PLANS Section 412(b) of Pub. L. 96-364 directed Secretary of Labor to study feasibility of requiring collective bargaining on both issues of contributions to, and benefits from, multiemployer plans, and submit a report on the study to Congress within 3 years of Sept. 26, 1980. -End- -CITE- 29 USC Sec. 1001b 01/06/03 -EXPCITE- TITLE 29 - LABOR CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS Subtitle A - General Provisions -HEAD- Sec. 1001b. Findings and declaration of policy -STATUTE- (a) Findings The Congress finds that - (1) single-employer defined benefit pension plans have a substantial impact on interstate commerce and are affected with a national interest; (2) the continued well-being and retirement income security of millions of workers, retirees, and their dependents are directly affected by such plans; (3) the existence of a sound termination insurance system is fundamental to the retirement income security of participants and beneficiaries of such plans; and (4) the current termination insurance system in some instances encourages employers to terminate pension plans, evade their obligations to pay benefits, and shift unfunded pension liabilities onto the termination insurance system and the other premium-payers. (b) Additional findings The Congress further finds that modification of the current termination insurance system and an increase in the insurance premium for single-employer defined benefit pension plans - (1) is desirable to increase the likelihood that full benefits will be paid to participants and beneficiaries of such plans; (2) is desirable to provide for the transfer of liabilities to the termination insurance system only in cases of severe hardship; (3) is necessary to maintain the premium costs of such system at a reasonable level; and (4) is necessary to finance properly current funding deficiencies and future obligations of the single-employer pension plan termination insurance system. (c) Declaration of policy It is hereby declared to be the policy of this title - (1) to foster and facilitate interstate commerce; (2) to encourage the maintenance and growth of single-employer defined benefit pension plans; (3) to increase the likelihood that participants and beneficiaries under single-employer defined benefit pension plans will receive their full benefits; (4) to provide for the transfer of unfunded pension liabilities onto the single-employer pension plan termination insurance system only in cases of severe hardship; (5) to maintain the premium costs of such system at a reasonable level; and (6) to assure the prudent financing of current funding deficiencies and future obligations of the single-employer pension plan termination insurance system by increasing termination insurance premiums. -SOURCE- (Pub. L. 99-272, title XI, Sec. 11002, Apr. 7, 1986, 100 Stat. 237.) -REFTEXT- REFERENCES IN TEXT This title, referred to in subsec. (c), is title XI of Pub. L. 99-272, Apr. 7, 1986, 100 Stat. 237, known as the Single-Employer Pension Plan Amendments Act of 1986. For complete classification of this Act to the Code, see Short Title of 1986 Amendment note set out under section 1001 of this title and Tables. -COD- CODIFICATION Section was enacted as part of the Single-Employer Pension Plan Amendments Act of 1986, and not as part of the Employee Retirement Income Security Act of 1974 which comprises this chapter. -MISC1- EFFECTIVE DATE Section effective Jan. 1, 1986, with certain exceptions, see section 11019 of Pub. L. 99-272, set out as an Effective Date of 1986 Amendment note under section 1341 of this title. -End- -CITE- 29 USC Sec. 1002 01/06/03 -EXPCITE- TITLE 29 - LABOR CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS Subtitle A - General Provisions -HEAD- Sec. 1002. Definitions -STATUTE- For purposes of this subchapter: (1) The terms "employee welfare benefit plan" and "welfare plan" mean any plan, fund, or program which was heretofore or is hereafter established or maintained by an employer or by an employee organization, or by both, to the extent that such plan, fund, or program was established or is maintained for the purpose of providing for its participants or their beneficiaries, through the purchase of insurance or otherwise, (A) medical, surgical, or hospital care or benefits, or benefits in the event of sickness, accident, disability, death or unemployment, or vacation benefits, apprenticeship or other training programs, or day care centers, scholarship funds, or prepaid legal services, or (B) any benefit described in section 186(c) of this title (other than pensions on retirement or death, and insurance to provide such pensions). (2)(A) Except as provided in subparagraph (B), the terms "employee pension benefit plan" and "pension plan" mean any plan, fund, or program which was heretofore or is hereafter established or maintained by an employer or by an employee organization, or by both, to the extent that by its express terms or as a result of surrounding circumstances such plan, fund, or program - (i) provides retirement income to employees, or (ii) results in a deferral of income by employees for periods extending to the termination of covered employment or beyond, regardless of the method of calculating the contributions made to the plan, the method of calculating the benefits under the plan or the method of distributing benefits from the plan. (B) The Secretary may by regulation prescribe rules consistent with the standards and purposes of this chapter providing one or more exempt categories under which - (i) severance pay arrangements, and (ii) supplemental retirement income payments, under which the pension benefits of retirees or their beneficiaries are supplemented to take into account some portion or all of the increases in the cost of living (as determined by the Secretary of Labor) since retirement, shall, for purposes of this subchapter, be treated as welfare plans rather than pension plans. In the case of any arrangement or payment a principal effect of which is the evasion of the standards or purposes of this chapter applicable to pension plans, such arrangement or payment shall be treated as a pension plan. (3) The term "employee benefit plan" or "plan" means an employee welfare benefit plan or an employee pension benefit plan or a plan which is both an employee welfare benefit plan and an employee pension benefit plan. (4) The term "employee organization" means any labor union or any organization of any kind, or any agency or employee representation committee, association, group, or plan, in which employees participate and which exists for the purpose, in whole or in part, of dealing with employers concerning an employee benefit plan, or other matters incidental to employment relationships; or any employees' beneficiary association organized for the purpose in whole or in part, of establishing such a plan. (5) The term "employer" means any person acting directly as an employer, or indirectly in the interest of an employer, in relation to an employee benefit plan; and includes a group or association of employers acting for an employer in such capacity. (6) The term "employee" means any individual employed by an employer. (7) The term "participant" means any employee or former employee of an employer, or any member or former member of an employee organization, who is or may become eligible to receive a benefit of any type from an employee benefit plan which covers employees of such employer or members of such organization, or whose beneficiaries may be eligible to receive any such benefit. (8) The term "beneficiary" means a person designated by a participant, or by the terms of an employee benefit plan, who is or may become entitled to a benefit thereunder. (9) The term "person" means an individual, partnership, joint venture, corporation, mutual company, joint-stock company, trust, estate, unincorporated organization, association, or employee organization. (10) The term "State" includes any State of the United States, the District of Columbia, Puerto Rico, the Virgin Islands, American Samoa, Guam, Wake Island, and the Canal Zone. The term "United States" when used in the geographic sense means the States and the Outer Continental Shelf lands defined in the Outer Continental Shelf Lands Act (43 U.S.C. 1331-1343). (11) The term "commerce" means trade, traffic, commerce, transportation, or communication between any State and any place outside thereof. (12) The term "industry or activity affecting commerce" means any activity, business, or industry in commerce or in which a labor dispute would hinder or obstruct commerce or the free flow of commerce, and includes any activity or industry "affecting commerce" within the meaning of the Labor Management Relations Act, 1947 [29 U.S.C. 141 et seq.], or the Railway Labor Act [45 U.S.C. 151 et seq.]. (13) The term "Secretary" means the Secretary of Labor. (14) The term "party in interest" means, as to an employee benefit plan - (A) any fiduciary (including, but not limited to, any administrator, officer, trustee, or custodian), counsel, or employee of such employee benefit plan; (B) a person providing services to such plan; (C) an employer any of whose employees are covered by such plan; (D) an employee organization any of whose members are covered by such plan; (E) an owner, direct or indirect, of 50 percent or more of - (i) the combined voting power of all classes of stock entitled to vote or the total value of shares of all classes of stock of a corporation.(!1) (ii) the capital interest or the profits interest of a partnership, or (iii) the beneficial interest of a trust or unincorporated enterprise, which is an employer or an employee organization described in subparagraph (C) or (D); (F) a relative (as defined in paragraph (15)) of any individual described in subparagraph (A), (B), (C), or (E); (G) a corporation, partnership, or trust or estate of which (or in which) 50 percent or more of - (i) the combined voting power of all classes of stock entitled to vote or the total value of shares of all classes of stock of such corporation, (ii) the capital interest or profits interest of such partnership, or (iii) the beneficial interest of such trust or estate, is owned directly or indirectly, or held by persons described in subparagraph (A), (B), (C), (D), or (E); (H) an employee, officer, director (or an individual having powers or responsibilities similar to those of officers or directors), or a 10 percent or more shareholder directly or indirectly, of a person described in subparagraph (B), (C), (D), (E), or (G), or of the employee benefit plan; or (I) a 10 percent or more (directly or indirectly in capital or profits) partner or joint venturer of a person described in subparagraph (B), (C), (D), (E), or (G). The Secretary, after consultation and coordination with the Secretary of the Treasury, may by regulation prescribe a percentage lower than 50 percent for subparagraph (E) and (G) and lower than 10 percent for subparagraph (H) or (I). The Secretary may prescribe regulations for determining the ownership (direct or indirect) of profits and beneficial interests, and the manner in which indirect stockholdings are taken into account. Any person who is a party in interest with respect to a plan to which a trust described in section 501(c)(22) of title 26 is permitted to make payments under section 1403 of this title shall be treated as a party in interest with respect to such trust. (15) The term "relative" means a spouse, ancestor, lineal descendant, or spouse of a lineal descendant. (16)(A) The term "administrator" means - (i) the person specifically so designated by the terms of the instrument under which the plan is operated; (ii) if an administrator is not so designated, the plan sponsor; or (iii) in the case of a plan for which an administrator is not designated and a plan sponsor cannot be identified, such other person as the Secretary may by regulation prescribe. (B) The term "plan sponsor" means (i) the employer in the case of an employee benefit plan established or maintained by a single employer, (ii) the employee organization in the case of a plan established or maintained by an employee organization, or (iii) in the case of a plan established or maintained by two or more employers or jointly by one or more employers and one or more employee organizations, the association, committee, joint board of trustees, or other similar group of representatives of the parties who establish or maintain the plan. (17) The term "separate account" means an account established or maintained by an insurance company under which income, gains, and losses, whether or not realized, from assets allocated to such account, are, in accordance with the applicable contract, credited to or charged against such account without regard to other income, gains, or losses of the insurance company. (18) The term "adequate consideration" when used in part 4 of subtitle B of this subchapter means (A) in the case of a security for which there is a generally recognized market, either (i) the price of the security prevailing on a national securities exchange which is registered under section 78f of title 15, or (ii) if the security is not traded on such a national securities exchange, a price not less favorable to the plan than the offering price for the security as established by the current bid and asked prices quoted by persons independent of the issuer and of any party in interest; and (B) in the case of an asset other than a security for which there is a generally recognized market, the fair market value of the asset as determined in good faith by the trustee or named fiduciary pursuant to the terms of the plan and in accordance with regulations promulgated by the Secretary. (19) The term "nonforfeitable" when used with respect to a pension benefit or right means a claim obtained by a participant or his beneficiary to that part of an immediate or deferred benefit under a pension plan which arises from the participant's service, which is unconditional, and which is legally enforceable against the plan. For purposes of this paragraph, a right to an accrued benefit derived from employer contributions shall not be treated as forfeitable merely because the plan contains a provision described in section 1053(a)(3) of this title. (20) The term "security" has the same meaning as such term has under section 77b(1) (!2) of title 15. (21)(A) Except as otherwise provided in subparagraph (B), a person is a fiduciary with respect to a plan to the extent (i) he exercises any discretionary authority or discretionary control respecting management of such plan or exercises any authority or control respecting management or disposition of its assets, (ii) he renders investment advice for a fee or other compensation, direct or indirect, with respect to any moneys or other property of such plan, or has any authority or responsibility to do so, or (iii) he has any discretionary authority or discretionary responsibility in the administration of such plan. Such term includes any person designated under section 1105(c)(1)(B) of this title. (B) If any money or other property of an employee benefit plan is invested in securities issued by an investment company registered under the Investment Company Act of 1940 [15 U.S.C. 80a-1 et seq.], such investment shall not by itself cause such investment company or such investment company's investment adviser or principal underwriter to be deemed to be a fiduciary or a party in interest as those terms are defined in this subchapter, except insofar as such investment company or its investment adviser or principal underwriter acts in connection with an employee benefit plan covering employees of the investment company, the investment adviser, or its principal underwriter. Nothing contained in this subparagraph shall limit the duties imposed on such investment company, investment adviser, or principal underwriter by any other law. (22) The term "normal retirement benefit" means the greater of the early retirement benefit under the plan, or the benefit under the plan commencing at normal retirement age. The normal retirement benefit shall be determined without regard to - (A) medical benefits, and (B) disability benefits not in excess of the qualified disability benefit. For purposes of this paragraph, a qualified disability benefit is a disability benefit provided by a plan which does not exceed the benefit which would be provided for the participant if he separated from the service at normal retirement age. For purposes of this paragraph, the early retirement benefit under a plan shall be determined without regard to any benefit under the plan which the Secretary of the Treasury finds to be a benefit described in section 1054(b)(1)(G) of this title. (23) The term "accrued benefit" means - (A) in the case of a defined benefit plan, the individual's accrued benefit determined under the plan and, except as provided in section 1054(c)(3) of this title, expressed in the form of an annual benefit commencing at normal retirement age, or (B) in the case of a plan which is an individual account plan, the balance of the individual's account. The accrued benefit of an employee shall not be less than the amount determined under section 1054(c)(2)(B) of this title with respect to the employee's accumulated contribution. (24) The term "normal retirement age" means the earlier of - (A) the time a plan participant attains normal retirement age under the plan, or (B) the later of - (i) the time a plan participant attains age 65, or (ii) the 5th anniversary of the time a plan participant commenced participation in the plan. (25) The term "vested liabilities" means the present value of the immediate or deferred benefits available at normal retirement age for participants and their beneficiaries which are nonforfeitable. (26) The term "current value" means fair market value where available and otherwise the fair value as determined in good faith by a trustee or a named fiduciary (as defined in section 1102(a)(2) of this title) pursuant to the terms of the plan and in accordance with regulations of the Secretary, assuming an orderly liquidation at the time of such determination. (27) The term "present value", with respect to a liability, means the value adjusted to reflect anticipated events. Such adjustments shall conform to such regulations as the Secretary of the Treasury may prescribe. (28) The term "normal service cost" or "normal cost" means the annual cost of future pension benefits and administrative expenses assigned, under an actuarial cost method, to years subsequent to a particular valuation date of a pension plan. The Secretary of the Treasury may prescribe regulations to carry out this paragraph. (29) The term "accrued liability" means the excess of the present value, as of a particular valuation date of a pension plan, of the projected future benefit costs and administrative expenses for all plan participants and beneficiaries over the present value of future contributions for the normal cost of all applicable plan participants and beneficiaries. The Secretary of the Treasury may prescribe regulations to carry out this paragraph. (30) The term "unfunded accrued liability" means the excess of the accrued liability, under an actuarial cost method which so provides, over the present value of the assets of a pension plan. The Secretary of the Treasury may prescribe regulations to carry out this paragraph. (31) The term "advance funding actuarial cost method" or "actuarial cost method" means a recognized actuarial technique utilized for establishing the amount and incidence of the annual actuarial cost of pension plan benefits and expenses. Acceptable actuarial cost methods shall include the accrued benefit cost method (unit credit method), the entry age normal cost method, the individual level premium cost method, the aggregate cost method, the attained age normal cost method, and the frozen initial liability cost method. The terminal funding cost method and the current funding (pay-as-you-go) cost method are not acceptable actuarial cost methods. The Secretary of the Treasury shall issue regulations to further define acceptable actuarial cost methods. (32) The term "governmental plan" means a plan established or maintained for its employees by the Government of the United States, by the government of any State or political subdivision thereof, or by any agency or instrumentality of any of the foregoing. The term "governmental plan" also includes any plan to which the Railroad Retirement Act of 1935, or 1937 [45 U.S.C. 231 et seq.] applies, and which is financed by contributions required under that Act and any plan of an international organization which is exempt from taxation under the provisions of the International Organizations Immunities Act [22 U.S.C. 288 et seq.]. (33)(A) The term "church plan" means a plan established and maintained (to the extent required in clause (ii) of subparagraph (B)) for its employees (or their beneficiaries) by a church or by a convention or association of churches which is exempt from tax under section 501 of title 26. (B) The term "church plan" does not include a plan - (i) which is established and maintained primarily for the benefit of employees (or their beneficiaries) of such church or convention or association of churches who are employed in connection with one or more unrelated trades or businesses (within the meaning of section 513 of title 26), or (ii) if less than substantially all of the individuals included in the plan are individuals described in subparagraph (A) or in clause (ii) of subparagraph (C) (or their beneficiaries). (C) For purposes of this paragraph - (i) A plan established and maintained for its employees (or their beneficiaries) by a church or by a convention or association of churches includes a plan maintained by an organization, whether a civil law corporation or otherwise, the principal purpose or function of which is the administration or funding of a plan or program for the provision of retirement benefits or welfare benefits, or both, for the employees of a church or a convention or association of churches, if such organization is controlled by or associated with a church or a convention or association of churches. (ii) The term employee of a church or a convention or association of churches includes - (I) a duly ordained, commissioned, or licensed minister of a church in the exercise of his ministry, regardless of the source of his compensation; (II) an employee of an organization, whether a civil law corporation or otherwise, which is exempt from tax under section 501 of title 26 and which is controlled by or associated with a church or a convention or association of churches; and (III) an individual described in clause (v). (iii) A church or a convention or association of churches which is exempt from tax under section 501 of title 26 shall be deemed the employer of any individual included as an employee under clause (ii). (iv) An organization, whether a civil law corporation or otherwise, is associated with a church or a convention or association of churches if it shares common religious bonds and convictions with that church or convention or association of churches. (v) If an employee who is included in a church plan separates from the service of a church or a convention or association of churches or an organization, whether a civil law corporation or otherwise, which is exempt from tax under section 501 of title 26 and which is controlled by or associated with a church or a convention or association of churches, the church plan shall not fail to meet the requirements of this paragraph merely because the plan - (I) retains the employee's accrued benefit or account for the payment of benefits to the employee or his beneficiaries pursuant to the terms of the plan; or (II) receives contributions on the employee's behalf after the employee's separation from such service, but only for a period of 5 years after such separation, unless the employee is disabled (within the meaning of the disability provisions of the church plan or, if there are no such provisions in the church plan, within the meaning of section 72(m)(7) of title 26) at the time of such separation from service. (D)(i) If a plan established and maintained for its employees (or their beneficiaries) by a church or by a convention or association of churches which is exempt from tax under section 501 of title 26 fails to meet one or more of the requirements of this paragraph and corrects its failure to meet such requirements within the correction period, the plan shall be deemed to meet the requirements of this paragraph for the year in which the correction was made and for all prior years. (ii) If a correction is not made within the correction period, the plan shall be deemed not to meet the requirements of this paragraph beginning with the date on which the earliest failure to meet one or more of such requirements occurred. (iii) For purposes of this subparagraph, the term "correction period" means - (I) the period ending 270 days after the date of mailing by the Secretary of the Treasury of a notice of default with respect to the plan's failure to meet one or more of the requirements of this paragraph; or (II) any period set by a court of competent jurisdiction after a final determination that the plan fails to meet such requirements, or, if the court does not specify such period, any reasonable period determined by the Secretary of the Treasury on the basis of all the facts and circumstances, but in any event not less than 270 days after the determination has become final; or (III) any additional period which the Secretary of the Treasury determines is reasonable or necessary for the correction of the default, whichever has the latest ending date. (34) The term "individual account plan" or "defined contribution plan" means a pension plan which provides for an individual account for each participant and for benefits based solely upon the amount contributed to the participant's account, and any income, expenses, gains and losses, and any forfeitures of accounts of other participants which may be allocated to such participant's account. (35) The term "defined benefit plan" means a pension plan other than an individual account plan; except that a pension plan which is not an individual account plan and which provides a benefit derived from employer contributions which is based partly on the balance of the separate account of a participant - (A) for the purposes of section 1052 of this title, shall be treated as an individual account plan, and (B) for the purposes of paragraph (23) of this section and section 1054 of this title, shall be treated as an individual account plan to the extent benefits are based upon the separate account of a participant and as a defined benefit plan with respect to the remaining portion of benefits under the plan. (36) The term "excess benefit plan" means a plan maintained by an employer solely for the purpose of providing benefits for certain employees in excess of the limitations on contributions and benefits imposed by section 415 of title 26 on plans to which that section applies without regard to whether the plan is funded. To the extent that a separable part of a plan (as determined by the Secretary of Labor) maintained by an employer is maintained for such purpose, that part shall be treated as a separate plan which is an excess benefit plan. (37)(A) The term "multiemployer plan" means a plan - (i) to which more than one employer is required to contribute, (ii) which is maintained pursuant to one or more collective bargaining agreements between one or more employee organizations and more than one employer, and (iii) which satisfies such other requirements as the Secretary may prescribe by regulation. (B) For purposes of this paragraph, all trades or businesses (whether or not incorporated) which are under common control within the meaning of section 1301(b)(1) of this title are considered a single employer. (C) Notwithstanding subparagraph (A), a plan is a multiemployer plan on and after its termination date if the plan was a multiemployer plan under this paragraph for the plan year preceding its termination date. (D) For purposes of this subchapter, notwithstanding the preceding provisions of this paragraph, for any plan year which began before September 26, 1980, the term "multiemployer plan" means a plan described in this paragraph (37) as in effect immediately before such date. (E) Within one year after September 26, 1980, a multiemployer plan may irrevocably elect, pursuant to procedures established by the corporation and subject to the provisions of sections 1453(b) and (c) of this title, that the plan shall not be treated as a multiemployer plan for all purposes under this chapter or the Internal Revenue Code of 1954 if for each of the last 3 plan years ending prior to the effective date of the Multiemployer Pension Plan Amendments Act of 1980 - (i) the plan was not a multiemployer plan because the plan was not a plan described in subparagraph (A)(iii) of this paragraph and section 414(f)(1)(C) of title 26 (as such provisions were in effect on the day before September 26, 1980); and (ii) the plan had been identified as a plan that was not a multiemployer plan in substantially all its filings with the corporation, the Secretary of Labor and the Secretary of the Treasury. (F)(i) For purposes of this subchapter a qualified football coaches plan - (I) shall be treated as a multiemployer plan to the extent not inconsistent with the purposes of this subparagraph; and (II) notwithstanding section 401(k)(4)(B) of title 26, may include a qualified cash and deferred arrangement. (ii) For purposes of this subparagraph, the term "qualified football coaches plan" means any defined contribution plan which is established and maintained by an organization - (I) which is described in section 501(c) of title 26; (II) the membership of which consists entirely of individuals who primarily coach football as full-time employees of 4-year colleges or universities described in section 170(b)(1)(A)(ii) of title 26; and (III) which was in existence on September 18, 1986. (38) The term "investment manager" means any fiduciary (other than a trustee or named fiduciary, as defined in section 1102(a)(2) of this title) - (A) who has the power to manage, acquire, or dispose of any asset of a plan; (B) who (i) is registered as an investment adviser under the Investment Advisers Act of 1940 [15 U.S.C. 80b-1 et seq.]; (ii) is not registered as an investment adviser under such Act by reason of paragraph (1) of section 203A(a) of such Act [15 U.S.C. 80b-3a(a)], is registered as an investment adviser under the laws of the State (referred to in such paragraph (1)) in which it maintains its principal office and place of business, and, at the time the fiduciary last filed the registration form most recently filed by the fiduciary with such State in order to maintain the fiduciary's registration under the laws of such State, also filed a copy of such form with the Secretary; (iii) is a bank, as defined in that Act; or (iv) is an insurance company qualified to perform services described in subparagraph (A) under the laws of more than one State; and (C) has acknowledged in writing that he is a fiduciary with respect to the plan. (39) The terms "plan year" and "fiscal year of the plan" mean, with respect to a plan, the calendar, policy, or fiscal year on which the records of the plan are kept. (40)(A) The term "multiple employer welfare arrangement" means an employee welfare benefit plan, or any other arrangement (other than an employee welfare benefit plan), which is established or maintained for the purpose of offering or providing any benefit described in paragraph (1) to the employees of two or more employers (including one or more self-employed individuals), or to their beneficiaries, except that such term does not include any such plan or other arrangement which is established or maintained - (i) under or pursuant to one or more agreements which the Secretary finds to be collective bargaining agreements, (ii) by a rural electric cooperative, or (iii) by a rural telephone cooperative association. (B) For purposes of this paragraph - (i) two or more trades or businesses, whether or not incorporated, shall be deemed a single employer if such trades or businesses are within the same control group, (ii) the term "control group" means a group of trades or businesses under common control, (iii) the determination of whether a trade or business is under "common control" with another trade or business shall be determined under regulations of the Secretary applying principles similar to the principles applied in determining whether employees of two or more trades or businesses are treated as employed by a single employer under section 1301(b) of this title, except that, for purposes of this paragraph, common control shall not be based on an interest of less than 25 percent, (iv) the term "rural electric cooperative" means - (I) any organization which is exempt from tax under section 501(a) of title 26 and which is engaged primarily in providing electric service on a mutual or cooperative basis, and (II) any organization described in paragraph (4) or (6) of section 501(c) of title 26 which is exempt from tax under section 501(a) of title 26 and at least 80 percent of the members of which are organizations described in subclause (I), and (v) the term "rural telephone cooperative association" means an organization described in paragraph (4) or (6) of section 501(c) of title 26 which is exempt from tax under section 501(a) of title 26 and at least 80 percent of the members of which are organizations engaged primarily in providing telephone service to rural areas of the United States on a mutual, cooperative, or other basis. (41) (!3) Single-employer plan. - The term "single-employer plan" means an employee benefit plan other than a multiemployer plan. (41) (!3) The term "single-employer plan" means a plan which is not a multiemployer plan. -SOURCE- (Pub. L. 93-406, title I, Sec. 3, Sept. 2, 1974, 88 Stat. 833; Pub. L. 96-364, title III, Secs. 302, 305, title IV, Secs. 407(a), 409, Sept. 26, 1980, 94 Stat. 1291, 1294, 1303, 1307; Pub. L. 97-473, title III, Sec. 302(a), Jan. 14, 1983, 96 Stat. 2612; Pub. L. 99-272, title XI, Sec. 11016(c)(1), Apr. 7, 1986, 100 Stat. 273; Pub. L. 99-509, title IX, Sec. 9203(b)(1), Oct. 21, 1986, 100 Stat. 1979; Pub. L. 99-514, title XVIII, Sec. 1879(u)(3), Oct. 22, 1986, 100 Stat. 2913; Pub. L. 100-202, Sec. 136(a), Dec. 22, 1987, 101 Stat. 1329-441; Pub. L. 101-239, title VII, Secs. 7871(b)(2), 7881(m)(2)(D), 7891(a)(1), 7893(a), 7894(a)(1)(A), (2)(A), (3), (4), Dec. 19, 1989, 103 Stat. 2435, 2444, 2445, 2447, 2448; Pub. L. 101-508, title XII, Sec. 12002(b)(2)(C), Nov. 5, 1990, 104 Stat. 1388-566; Pub. L. 102-89, Sec. 2, Aug. 14, 1991, 105 Stat. 446; Pub. L. 104-290, title III, Sec. 308(b)(1), Oct. 11, 1996, 110 Stat. 3440; Pub. L. 105-72, Sec. 1(a), Nov. 10, 1997, 111 Stat. 1457.) -REFTEXT- REFERENCES IN TEXT This chapter, referred to in pars. (2)(B) and (37)(E), was in the original "this Act", meaning Pub. L. 93-406, known as the Employee Retirement Income Security Act of 1974. Titles I, III, and IV of such Act are classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note set out under section 1001 of this title and Tables. The Outer Continental Shelf Lands Act, referred to in par. (10), is act Aug. 7, 1953, ch. 345, 67 Stat. 462, as amended, which is classified generally to subchapter III (Sec. 1331 et seq.) of chapter 29 of Title 43, Public Lands. For complete classification of this Act to the Code, see Short Title note set out under section 1331 of Title 43 and Tables. The Labor Management Relations Act, 1947, referred to in par. (12), is act June 23, 1947, ch. 120, 61 Stat. 136, as amended, which is classified principally to chapter 7 (Sec. 141 et seq.) of this title. For complete classification of this Act to the Code, see section 141 of this title and Tables. The Railway Labor Act, referred to in par. (12), is act May 20, 1926, ch. 347, 44 Stat. 577, as amended, which is classified principally to chapter 8 (Sec. 151 et seq.) of Title 45, Railroads. For complete classification of this Act to the Code, see section 151 of Title 45 and Tables. Section 77b(1) of title 15, referred to in par. (20), was redesignated section 77b(a)(1) of title 15 by Pub. L. 104-290, title I, Sec. 106(a)(1), Oct. 11, 1996, 110 Stat. 3424. The Investment Company Act of 1940, referred to in par. (21)(B), is title I of act Aug. 22, 1940, ch. 686, 54 Stat. 789, as amended, which is classified generally to subchapter I (Sec. 80a-1 et seq.) of chapter 2D of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see section 80a-51 of Title 15 and Tables. The Railroad Retirement Act of 1935 or 1937, referred to in par. (32), means act Aug. 29, 1935, ch. 812, 49 Stat. 867, as amended, known as the Railroad Retirement Act of 1935. The Railroad Retirement Act of 1935 was amended generally by act June 24, 1937, ch. 382, part I, 50 Stat. 307, and was known as the Railroad Retirement Act of 1937. The Railroad Retirement Act of 1937 was amended generally and redesignated the Railroad Retirement Act of 1974 by Pub. L. 93-445, title I, Oct. 16, 1974, 88 Stat. 1305 and is classified generally to subchapter IV (Sec. 231 et seq.) of chapter 9 of Title 45, Railroads. For complete classification of this Act to the Code, see Tables. The International Organizations Immunities Act, referred to in par. (32), is title I of act Dec. 29, 1945, ch. 652, 59 Stat. 669, as amended, which is classified principally to subchapter XVIII (Sec. 288 et seq.) of chapter 7 of Title 22, Foreign Relations and Intercourse. For complete classification of this Act to the Code, see Short Title note set out under section 288 of Title 22 and Tables. Sections 1453(b) and (c) of this title, referred to in par. (37)(E), was in the original "sections 4403(b) and (c)", meaning sections 4403(b) and (c) of the Employee Retirement Income Security Act of 1974, which was translated as section 1453(b) and (c) of this title as the probable intent of Congress, in view of the Employee Retirement Income Security Act of 1974 not containing a section 4403 and the subject matter of section 4303 of the Act which is classified to section 1453(b) and (c) of this title. The Internal Revenue Code of 1954, referred to in par. (37)(E), was redesignated the Internal Revenue Code of 1986 by Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, and is classified to Title 26, Internal Revenue Code. For the effective date of the Multiemployer Pension Plan Amendments Act of 1980, referred to in par. (37)(E), see section 1461(e) of this title. The Investment Advisers Act of 1940, referred to in par. (38)(B), is title II of act Aug. 22, 1940, ch. 686, 54 Stat. 847, as amended, which is classified generally to subchapter II (Sec. 80b-1 et seq.) of chapter 2D of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see section 80b-20 of Title 15 and Tables. -MISC1- AMENDMENTS 1997 - Par. (38)(B). Pub. L. 105-72 added introductory provisions and cls. (i) and (ii), redesignated former cls. (ii) and (iii) as (iii) and (iv), respectively, and struck out former introductory provisions and cl. (i) which read as follows: "who is (i) registered as an investment adviser under the Investment Advisers Act of 1940 or under the laws of any State;". 1996 - Par. (38)(B). Pub. L. 104-290 temporarily inserted "or under the laws of any State" before "; (ii) is a bank,". See Effective and Termination Dates of 1996 Amendment note below. 1991 - Par. (40)(A)(iii), (B)(v). Pub. L. 102-89 added cl. (iii) at end of subpar. (A) and cl. (v) at end of subpar. (B). 1990 - Par. (41). Pub. L. 101-508 added par. (41) which read as follows: "The term 'single-employer plan' means a plan which is not a multiemployer plan." 1989 - Pars. (14), (33), (36), (40)(B)(iv). Pub. L. 101-239, Sec. 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. Par. (23). Pub. L. 101-239, Sec. 7881(m)(2)(D), inserted at end "The accrued benefit of an employee shall not be less than the amount determined under section 1054(c)(2)(B) of this title with respect to the employee's accumulated contribution." Par. (24)(B). Pub. L. 101-239, Sec. 7871(b)(2), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: "the latest of - "(i) the time a plan participant attains age 65, "(ii) in the case of a plan participant who commences participation in the plan within 5 years before attaining normal retirement age under the plan, the 5th anniversary of the time the plan participant commences participation in the plan, or "(iii) in the case of a plan participant not described in clause (ii), the 10th anniversary of the time the plan participant commences participation in the plan." Par. (33)(D)(iii). Pub. L. 101-239, Sec. 7894(a)(1)(A), substituted "Secretary of the Treasury" for "Secretary" in subcls. (I) to (III). Par. (37)(B). Pub. L. 101-239, Sec. 7893(a), substituted "section 1301(b)(1)" for "section 1301(c)(1)". Par. (37)(F)(i)(II). Pub. L. 101-239, Sec. 7894(a)(2)(A)(i), substituted "the Internal Revenue Code of 1986" for "such Code", which for purposes of codification was translated as "title 26" thus requiring no change in text. Par. (37)(F)(ii). Pub. L. 101-239, Sec. 7894(a)(2)(A)(ii), (iii), inserted "of such Code" after "section 501(c)" in subcl. (I) and after "section 170(b)(1)(A)(ii)" in subcl. (II), which for purposes of codification was translated as "of title 26" thus requiring no change in text. Par. (39). Pub. L. 101-239, Sec. 7894(a)(3), substituted "mean, with respect to a plan, the calendar" for "mean with respect to a plan, calendar". Par. (41). Pub. L. 101-239, Sec. 7894(a)(4), added par. (41). 1987 - Par. (37)(F). Pub. L. 100-202 added subpar. (F). 1986 - Par. (24)(B). Pub. L. 99-509 amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: "the later of - "(i) the time a plan participant attains age 65, or "(ii) the 10th anniversary of the time a plan participant commenced participation in the plan." Par. (37)(A). Pub. L. 99-514 repealed the amendment made by Pub. L. 99-272. See note below. Pub. L. 99-272, which, eff. Jan. 1, 1986, directed the substitution of "means a pension plan" for "means a plan" was repealed by Pub. L. 99-514, eff. Jan. 1, 1986. 1983 - Par. (40). Pub. L. 97-473 added par. (40). 1980 - Par. (2). Pub. L. 96-364, Sec. 409, redesignated existing provisions as subpar. (A), inserted exception for subpar. (B), substituted "(i)" for "(A)" and "(ii)" for "(B)", and added subpar. (B). Par. (14). Pub. L. 96-364, Sec. 305, inserted provisions respecting a trust described in section 501(c)(22) of title 26. Par. (33). Pub. L. 96-364, Sec. 407(a), substituted provisions defining "church plan" as a plan established and maintained (to the extent required in cl. (ii) of subpar. (B)) for employees or beneficiaries by a church, etc., exempt from tax under section 501 of title 26, for provisions defining "church plan" as a plan established and maintained for employees by a church, etc., exempt from tax under section 501 of title 26, or a plan in existence on Jan. 1, 1974, established and maintained by a church, etc., for employees and employees of agencies of the church, etc. Par. (37). Pub. L. 96-364, Sec. 302(a), substantially revised definition of term "multiemployer plan" by, among other changes, restructuring subpar. (A), resulting in elimination of provisions covering amount of contributions and payment of benefits, and subpar. (B), resulting in elimination of provisions reworking amount of contributions for subsequent plan years, and added subpars. (C) to (E). EFFECTIVE DATE OF 1997 AMENDMENT Section 1(c) of Pub. L. 105-72 provided that: "The amendments made by subsection (a) [amending this section] shall take effect on July 8, 1997, except that the requirement of section 3(38)(B)(ii) of the Employee Retirement Income Security Act of 1974 [section 1002(38)(B)(ii) of this title] (as amended by this Act) for filing with the Secretary of Labor of a copy of a registration form which has been filed with a State before the date of the enactment of this Act [Nov. 10, 1997], or is to be filed with a State during the 1-year period beginning with such date, shall be treated as satisfied upon the filing of such a copy with the Secretary at any time during such 1-year period. This section shall supersede section 308(b) of the National Securities Markets Improvement Act of 1996 [Pub. L. 104-290, amending this section and enacting provisions set out as an Effective and Termination Dates of 1996 Amendment note below] (and the amendment made thereby)." EFFECTIVE AND TERMINATION DATES OF 1996 AMENDMENT Amendment by Pub. L. 104-290 effective 270 days after Oct. 11, 1996, see section 308(a) of Pub. L. 104-290, as amended, set out as a note under section 80b-2 of Title 15, Commerce and Trade. Section 308(b)(2) of Pub. L. 104-290 which provided that the amendment made by paragraph (1), amending this section, ceased to be effective 2 years after Oct. 11, 1996, was superseded by section 1(c) of Pub. L. 105-72, set out as an Effective Date of 1997 Amendment note above. EFFECTIVE DATE OF 1991 AMENDMENT Section 3 of Pub. L. 102-89 provided that: "The amendments made by section 2 [amending this section] shall take effect on the date of the enactment of this Act [Aug. 14, 1991]." EFFECTIVE DATE OF 1990 AMENDMENT Amendment by Pub. L. 101-508 applicable to reversions occurring after Sept. 30, 1990, but not applicable to any reversion after Sept. 30, 1990, if (1) in the case of plans subject to subchapter III of this chapter, notice of intent to terminate under such subchapter was provided to participants (or if no participants, to Pension Benefit Guaranty Corporation) before Oct. 1, 1990, (2) in the case of plans subject to subchapter I of this chapter (and not subchapter III), notice of intent to reduce future accruals under section 1054(h) of this title was provided to participants in connection with termination before Oct. 1, 1990, (3) in the case of plans not subject to subchapter I or III of this chapter, a request for a determination letter with respect to termination was filed with Secretary of the Treasury or Secretary's delegate before Oct. 1, 1990, or (4) in the case of plans not subject to subchapter I or III of this chapter and having only one participant, a resolution terminating the plan was adopted by employer before Oct. 1, 1990, see section 12003 of Pub. L. 101-508, set out as a note under section 4980 of Title 26, Internal Revenue Code. EFFECTIVE DATE OF 1989 AMENDMENT Amendment by section 7871(b)(2) of Pub. L. 101-239 effective as if included in the amendments made by section 9203 of Pub. L. 99-509, see section 7871(b)(3) of Pub. L. 101-239, set out as a note under section 411 of Title 26, Internal Revenue Code. Amendment by section 7881(m)(2)(D) 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, Secs. 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. Section 7891(f) of Pub. L. 101-239 provided that: "Except as otherwise provided in this section, any amendment made by this section [amending this section, sections 1003, 1025, 1051 to 1056, 1060, 1061, 1081 to 1084, 1085a, 1101, 1103, 1107, 1108, 1132, 1134, 1137, 1161, 1166, 1167, 1201 to 1203, 1222, 1301, 1302, 1307, 1309, 1321 to 1322a, 1342 to 1345, 1362, 1368, 1384, 1385, 1390, 1391, 1393, 1403, 1421, 1423, 1425, and 1453 of this title, and section 4980B of Title 26] shall take effect as if included in the provision of the Reform Act [probably means Tax Reform Act of 1986, Pub. L. 99-514] to which such amendment relates." Section 7893(h) of Pub. L. 101-239 provided that: "Any amendment made by this section [amending this section and sections 1322a, 1341, 1342, 1347, 1366, 1367, and 1398 of this title] shall take effect as if included in the provision of the Single-Employer Pension Plan Amendments Act of 1986 [Pub. L. 99-272, title XI] to which such amendment relates." Section 7894(a)(1)(B) of Pub. L. 101-239 provided that: "The amendments made by subparagraph (A) [amending this section] shall take effect as if included in section 407 of the Multiemployer Pension Plan Amendments Act of 1980 [Pub. L. 96-364]." Section 7894(a)(2)(B) of Pub. L. 101-239 provided that: "The amendment made by this paragraph [amending this section] shall take effect as if included in section 136 of Public Law 100-202." Section 7894(i) of Pub. L. 101-239 provided that: "Except as otherwise provided in this section, any amendment made by this section [amending this section and sections 1021, 1024 to 1026, 1028, 1031, 1051 to 1056, 1060, 1061, 1081, 1082, 1084, 1086, 1103, 1107, 1108, 1113, 1114, 1132, 1144, 1321 to 1322a, 1344, 1368, and 1461 of this title] shall take effect as if originally included in the provision of the Employee Retirement Income Security Act of 1974 [Pub. L. 93-406] to which such amendment relates." EFFECTIVE DATE OF 1987 AMENDMENT Section 136(b) of Pub. L. 100-202 provided that: "The amendment made by this section [amending this section] shall apply to years beginning after the date of the enactment of this joint resolution [Dec. 22, 1987]." EFFECTIVE DATE OF 1986 AMENDMENTS Amendment by section 1879(u)(3) of Pub. L. 99-514 effective as if such provisions were included in the enactment of the Single-Employer Pension Plan Amendments Act of 1986 [Pub. L. 99-272], see section 1879(u)(4)(A) of Pub. L. 99-514, set out as a note under section 1054 of this title. Amendment by Pub. L. 99-509 applicable only with respect to plan years beginning on or after Jan. 1, 1988, and only with respect to service performed on or after such date, see section 9204 of Pub. L. 99-509, set out as an Effective and Termination Dates of 1986 Amendments note under section 623 of this title. Amendment by Pub. L. 99-272 effective Jan. 1, 1986, 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 1983 AMENDMENT Section 302(c) of Pub. L. 97-473 provided that: "The amendments made by this section [amending this section and section 1144 of this title] shall take effect on the date of the enactment of this Act [Jan. 14, 1983]." EFFECTIVE DATE OF 1980 AMENDMENT Amendment of pars. (2), (14), and (37), by Pub. L. 96-364 effective Sept. 26, 1980, except as specifically provided, see section 1461(e) of this title. Amendment of par. (33) by Pub. L. 96-364 effective Jan. 1, 1974, see section 407(c) of Pub. L. 96-364, set out as a note under section 414 of Title 26, Internal Revenue Code. REGULATIONS Secretary of Labor, Secretary of the Treasury, and Equal Employment Opportunity Commission each to issue before Feb. 1, 1988, final regulations to carry out amendments made by Pub. L. 99-509, see section 9204 of Pub. L. 99-509, set out as an Effective and Termination Dates of 1986 Amendment note under section 623 of this title. AVAILABILITY OF DOCUMENTS VIA FILING DEPOSITORY Section 1(b) of Pub. L. 105-72 provided that: "A fiduciary shall be treated as meeting the requirements of section 3(38)(B)(ii) of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1002(38)(B)(ii)] (as amended by subsection (a)) relating to provision to the Secretary of Labor of a copy of the form referred to therein, if a copy of such form (or substantially similar information) is available to the Secretary of Labor from a centralized electronic or other record-keeping database." PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989 For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or title XVIII [Secs. 1800-1899A] of Pub. L. 99-514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. L. 99-514, as amended, set out as a note under section 401 of Title 26, Internal Revenue Code. For provisions directing that if any amendments made by Pub. L. 99-509 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 9204 of Pub. L. 99-509, set out as an Effective and Termination Dates of 1986 Amendment note under section 623 of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 623, 1003, 1021, 1023, 1053, 1055, 1056, 1081, 1082, 1143a, 1144, 1144a, 1301, 1321, 1342, 1453, 2104, 2611, 2918 of this title; title 5 sections 8438, 8477; title 7 section 2009cc; title 12 section 1821; title 15 sections 77b, 78c, 662, 7244; title 18 section 1954; title 26 sections 35, 412, 414, 3121, 3306, 4980B, 4980D, 9702, 9712, 9803; title 38 sections 4303, 4317, 4318; title 42 sections 300bb-8, 300gg-91, 409, 1306, 1320d, 3020e-1. -FOOTNOTE- (!1) So in original. The period probably should be a comma. (!2) See References in Text note below. (!3) So in original. Two pars. (41) have been enacted. -End- -CITE- 29 USC Sec. 1003 01/06/03 -EXPCITE- TITLE 29 - LABOR CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS Subtitle A - General Provisions -HEAD- Sec. 1003. Coverage -STATUTE- (a) In general Except as provided in subsection (b) or (c) of this section and in sections 1051, 1081, and 1101 of this title, this subchapter shall apply to any employee benefit plan if it is established or maintained - (1) by any employer engaged in commerce or in any industry or activity affecting commerce; or (2) by any employee organization or organizations representing employees engaged in commerce or in any industry or activity affecting commerce; or (3) by both. (b) Exceptions for certain plans The provisions of this subchapter shall not apply to any employee benefit plan if - (1) such plan is a governmental plan (as defined in section 1002(32) of this title); (2) such plan is a church plan (as defined in section 1002(33) of this title) with respect to which no election has been made under section 410(d) of title 26; (3) such plan is maintained solely for the purpose of complying with applicable workmen's compensation laws or unemployment compensation or disability insurance laws; (4) such plan is maintained outside of the United States primarily for the benefit of persons substantially all of whom are nonresident aliens; or (5) such plan is an excess benefit plan (as defined in section 1002(36) of this title) and is unfunded. The provisions of part 7 of subtitle B of this subchapter shall not apply to a health insurance issuer (as defined in section 1191b(b)(2) of this title) solely by reason of health insurance coverage (as defined in section 1191b(b)(1) of this title) provided by such issuer in connection with a group health plan (as defined in section 1191b(a)(1) of this title) if the provisions of this subchapter do not apply to such group health plan. (c) Voluntary employee contributions to accounts and annuities If a pension plan allows an employee to elect to make voluntary employee contributions to accounts and annuities as provided in section 408(q) of title 26, such accounts and annuities (and contributions thereto) shall not be treated as part of such plan (or as a separate pension plan) for purposes of any provision of this subchapter other than section 1103(c), 1104, or 1105 of this title (relating to exclusive benefit, and fiduciary and co-fiduciary responsibilities) and part 5 of subtitle B of this subchapter (!1) (relating to administration and enforcement). Such provisions shall apply to such accounts and annuities in a manner similar to their application to a simplified employee pension under section 408(k) of title 26. -SOURCE- (Pub. L. 93-406, title I, Sec. 4, Sept. 2, 1974, 88 Stat. 839; Pub. L. 101-239, title VII, Sec. 7891(a)(1), Dec. 19, 1989, 103 Stat. 2445; Pub. L. 104-191, title I, Sec. 101(d), Aug. 21, 1996, 110 Stat. 1952; Pub. L. 104-204, title VI, Sec. 603(b)(3)(A), Sept. 26, 1996, 110 Stat. 2938; Pub. L. 107-16, title VI, Sec. 602(b), June 7, 2001, 115 Stat. 96; Pub. L. 107-147, title IV, Sec. 411(i)(2), Mar. 9, 2002, 116 Stat. 47.) -STATAMEND- AMENDMENT OF SECTION For termination of amendment by section 901 of Pub. L. 107-16, see Effective and Termination Dates of 2001 Amendment note below. -REFTEXT- REFERENCES IN TEXT Part 5 of subtitle B of this subchapter, referred to in subsec. (c), was in the original a reference to "part 5" and was translated as meaning part 5 of subtitle B of title I of Pub. L. 93-406, to reflect the probable intent of Congress. -MISC1- AMENDMENTS 2002 - Subsec. (c). Pub. L. 107-147 inserted "and part 5 of subtitle B of this subchapter (relating to administration and enforcement)" after "co-fiduciary responsibilities)" and "Such provisions shall apply to such accounts and annuities in a manner similar to their application to a simplified employee pension under section 408(k) of title 26." at end. 2001 - Subsec. (a). Pub. L. 107-16, Secs. 602(b)(2), 901, temporarily inserted "or (c)" after "subsection (b)" in introductory provisions. See Effective and Termination Dates of 2001 Amendment note below. Subsec. (c). Pub. L. 107-16, Secs. 602(b)(1), 901, temporarily added subsec. (c). See Effective and Termination Dates of 2001 Amendment note below. 1996 - Subsec. (b). Pub. L. 104-204, in concluding provisions, made technical amendment to references in original act which appear in text as references to section 1191b of this title. Pub. L. 104-191 inserted at end "The provisions of part 7 of subtitle B of this subchapter shall not apply to a health insurance issuer (as defined in section 1191b(b)(2) of this title) solely by reason of health insurance coverage (as defined in section 1191b(b)(1) of this title) provided by such issuer in connection with a group health plan (as defined in section 1191b(a)(1) of this title) if the provisions of this subchapter do not apply to such group health plan." 1989 - Subsec. (b)(2). 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. EFFECTIVE DATE OF 2002 AMENDMENT Amendment by Pub. L. 107-147 effective as if included in the provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001, Pub. L. 107-16, to which such amendment relates, see section 411(x) of Pub. L. 107-147, set out as a note under section 25B of Title 26, Internal Revenue Code. EFFECTIVE AND TERMINATION DATES OF 2001 AMENDMENT Amendment by Pub. L. 107-16 applicable to plan years beginning after Dec. 31, 2002, see section 602(c) of Pub. L. 107-16, set out as a note under section 408 of Title 26, Internal Revenue Code. Amendment by Pub. L. 107-16 inapplicable to taxable, plan, or limitation years beginning after Dec. 31, 2010, and the Employee Retirement Income Security Act of 1974, Pub. L. 93-406, to be applied and administered to such years as if such amendment had never been enacted, see section 901 of Pub. L. 107-16, set out as a note under section 1 of Title 26, Internal Revenue Code. EFFECTIVE DATE OF 1996 AMENDMENTS Section 603(c) of Pub. L. 104-204 provided that: "The amendments made by this section [enacting section 1185 of this title and amending this section and sections 1021, 1022, 1024, 1132, 1136, 1144, 1181, 1191, and 1191a of this title] shall apply with respect to group health plans for plan years beginning on or after January 1, 1998." Amendment by Pub. L. 104-191 applicable with respect to group health plans for plan years beginning after June 30, 1997, except as otherwise provided, see section 101(g) of Pub. L. 104-191, set out as an Effective Date note under section 1181 of this title. 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. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 1051, 1081, 1101, 1144 of this title. -FOOTNOTE- (!1) See References in Text note below. -End- -CITE- 29 USC Subtitle B - Regulatory Provisions 01/06/03 -EXPCITE- TITLE 29 - LABOR CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS Subtitle B - Regulatory Provisions -HEAD- SUBTITLE B - REGULATORY PROVISIONS -End- -CITE- 29 USC part 1 - reporting and disclosure 01/06/03 -EXPCITE- TITLE 29 - LABOR CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS Subtitle B - Regulatory Provisions part 1 - reporting and disclosure -HEAD- PART 1 - REPORTING AND DISCLOSURE -SECREF- PART REFERRED TO IN OTHER SECTIONS This part is referred to in sections 1131, 1169 of this title. -End- -CITE- 29 USC Sec. 1021 01/06/03 -EXPCITE- TITLE 29 - LABOR CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS Subtitle B - Regulatory Provisions part 1 - reporting and disclosure -HEAD- Sec. 1021. Duty of disclosure and reporting -STATUTE- (a) Summary plan description and information to be furnished to participants and beneficiaries The administrator of each employee benefit plan shall cause to be furnished in accordance with section 1024(b) of this title to each participant covered under the plan and to each beneficiary who is receiving benefits under the plan - (1) a summary plan description described in section 1022(a)(1) (!1) of this title; and (2) the information described in sections 1024(b)(3) and 1025(a) and (c) of this title. (b) Reports to be filed with Secretary of Labor The administrator shall, in accordance with section 1024(a) of this title, file with the Secretary - (1) the annual report containing the information required by section 1023 of this title; and (2) terminal and supplementary reports as required by subsection (c) of this section. (c) Terminal and supplementary reports (1) Each administrator of an employee pension benefit plan which is winding up its affairs (without regard to the number of participants remaining in the plan) shall, in accordance with regulations prescribed by the Secretary, file such terminal reports as the Secretary may consider necessary. A copy of such report shall also be filed with the Pension Benefit Guaranty Corporation. (2) The Secretary may require terminal reports to be filed with regard to any employee welfare benefit plan which is winding up its affairs in accordance with regulations promulgated by the Secretary. (3) The Secretary may require that a plan described in paragraph (1) or (2) file a supplementary or terminal report with the annual report in the year such plan is terminated and that a copy of such supplementary or terminal report in the case of a plan described in paragraph (1) be also filed with the Pension Benefit Guaranty Corporation. (d) Notice of failure to meet minimum funding standards (1) In general If an employer maintaining a plan other than a multiemployer plan fails to make a required installment or other payment required to meet the minimum funding standard under section 1082 of this title to a plan before the 60th day following the due date for such installment or other payment, the employer shall notify each participant and beneficiary (including an alternate payee as defined in section 1056(d)(3)(K) of this title) of such plan of such failure. Such notice shall be made at such time and in such manner as the Secretary may prescribe. (2) Subsection not to apply if waiver pending This subsection shall not apply to any failure if the employer has filed a waiver request under section 1083 of this title with respect to the plan year to which the required installment relates, except that if the waiver request is denied, notice under paragraph (1) shall be provided within 60 days after the date of such denial. (3) Definitions For purposes of this subsection, the terms "required installment" and "due date" have the same meanings given such terms by section 1082(e) of this title. (e) Notice of transfer of excess pension assets to health benefits accounts (1) Notice to participants Not later than 60 days before the date of a qualified transfer by an employee pension benefit plan of excess pension assets to a health benefits account, the administrator of the plan shall notify (in such manner as the Secretary may prescribe) each participant and beneficiary under the plan of such transfer. Such notice shall include information with respect to the amount of excess pension assets, the portion to be transferred, the amount of health benefits liabilities expected to be provided with the assets transferred, and the amount of pension benefits of the participant which will be nonforfeitable immediately after the transfer. (2) Notice to Secretaries, administrator, and employee organizations (A) In general Not later than 60 days before the date of any qualified transfer by an employee pension benefit plan of excess pension assets to a health benefits account, the employer maintaining the plan from which the transfer is made shall provide the Secretary, the Secretary of the Treasury, the administrator, and each employee organization representing participants in the plan a written notice of such transfer. A copy of any such notice shall be available for inspection in the principal office of the administrator. (B) Information relating to transfer Such notice shall identify the plan from which the transfer is made, the amount of the transfer, a detailed accounting of assets projected to be held by the plan immediately before and immediately after the transfer, and the current liabilities under the plan at the time of the transfer. (C) Authority for additional reporting requirements The Secretary may prescribe such additional reporting requirements as may be necessary to carry out the purposes of this section. (3) Definitions For purposes of paragraph (1), any term used in such paragraph which is also used in section 420 of title 26 (as in effect on December 17, 1999) shall have the same meaning as when used in such section. (f) Repealed. Pub. L. 105-200, title IV, Sec. 401(h)(1)(A), July 16, 1998, 112 Stat. 668 (g) Reporting by certain arrangements The Secretary may, by regulation, require multiple employer welfare arrangements providing benefits consisting of medical care (within the meaning of section 1191b(a)(2) of this title) which are not group health plans to report, not more frequently than annually, in such form and such manner as the Secretary may require for the purpose of determining the extent to which the requirements of part 7 are being carried out in connection with such benefits. (h) Simple retirement accounts (1) No employer reports Except as provided in this subsection, no report shall be required under this section by an employer maintaining a qualified salary reduction arrangement under section 408(p) of title 26. (2) Summary description The trustee of any simple retirement account established pursuant to a qualified salary reduction arrangement under section 408(p) of title 26 shall provide to the employer maintaining the arrangement each year a description containing the following information: (A) The name and address of the employer and the trustee. (B) The requirements for eligibility for participation. (C) The benefits provided with respect to the arrangement. (D) The time and method of making elections with respect to the arrangement. (E) The procedures for, and effects of, withdrawals (including rollovers) from the arrangement. (3) Employee notification The employer shall notify each employee immediately before the period for which an election described in section 408(p)(5)(C) of title 26 may be made of the employee's opportunity to make such election. Such notice shall include a copy of the description described in paragraph (2). (i) Notice of blackout periods to participant or beneficiary under individual account plan (1) Duties of plan administrator In advance of the commencement of any blackout period with respect to an individual account plan, the plan administrator shall notify the plan participants and beneficiaries who are affected by such action in accordance with this subsection. (2) Notice requirements (A) In general The notices described in paragraph (1) shall be written in a manner calculated to be understood by the average plan participant and shall include - (i) the reasons for the blackout period, (ii) an identification of the investments and other rights affected, (iii) the expected beginning date and length of the blackout period, (iv) in the case of investments affected, a statement that the participant or beneficiary should evaluate the appropriateness of their current investment decisions in light of their inability to direct or diversify assets credited to their accounts during the blackout period, and (v) such other matters as the Secretary may require by regulation. (B) Notice to participants and beneficiaries Except as otherwise provided in this subsection, notices described in paragraph (1) shall be furnished to all participants and beneficiaries under the plan to whom the blackout period applies at least 30 days in advance of the blackout period. (C) Exception to 30-day notice requirement In any case in which - (i) a deferral of the blackout period would violate the requirements of subparagraph (A) or (B) of section 1104(a)(1) of this title, and a fiduciary of the plan reasonably so determines in writing, or (ii) the inability to provide the 30-day advance notice is due to events that were unforeseeable or circumstances beyond the reasonable control of the plan administrator, and a fiduciary of the plan reasonably so determines in writing, subparagraph (B) shall not apply, and the notice shall be furnished to all participants and beneficiaries under the plan to whom the blackout period applies as soon as reasonably possible under the circumstances unless such a notice in advance of the termination of the blackout period is impracticable. (D) Written notice The notice required to be provided under this subsection shall be in writing, except that such notice may be in electronic or other form to the extent that such form is reasonably accessible to the recipient. (E) Notice to issuers of employer securities subject to blackout period In the case of any blackout period in connection with an individual account plan, the plan administrator shall provide timely notice of such blackout period to the issuer of any employer securities subject to such blackout period. (3) Exception for blackout periods with limited applicability In any case in which the blackout period applies only to 1 or more participants or beneficiaries in connection with a merger, acquisition, divestiture, or similar transaction involving the plan or plan sponsor and occurs solely in connection with becoming or ceasing to be a participant or beneficiary under the plan by reason of such merger, acquisition, divestiture, or transaction, the requirement of this subsection that the notice be provided to all participants and beneficiaries shall be treated as met if the notice required under paragraph (1) is provided to such participants or beneficiaries to whom the blackout period applies as soon as reasonably practicable. (4) Changes in length of blackout period If, following the furnishing of the notice pursuant to this subsection, there is a change in the beginning date or length of the blackout period (specified in such notice pursuant to paragraph (2)(A)(iii)), the administrator shall provide affected participants and beneficiaries notice of the change as soon as reasonably practicable. In relation to the extended blackout period, such notice shall meet the requirements of paragraph (2)(D) and shall specify any material change in the matters referred to in clauses (i) through (v) of paragraph (2)(A). (5) Regulatory exceptions The Secretary may provide by regulation for additional exceptions to the requirements of this subsection which the Secretary determines are in the interests of participants and beneficiaries. (6) Guidance and model notices The Secretary shall issue guidance and model notices which meet the requirements of this subsection. (7) Blackout period For purposes of this subsection - (A) In general The term "blackout period" means, in connection with an individual account plan, any period for which any ability of participants or beneficiaries under the plan, which is otherwise available under the terms of such plan, to direct or diversify assets credited to their accounts, to obtain loans from the plan, or to obtain distributions from the plan is temporarily suspended, limited, or restricted, if such suspension, limitation, or restriction is for any period of more than 3 consecutive business days. (B) Exclusions The term "blackout period" does not include a suspension, limitation, or restriction - (i) which occurs by reason of the application of the securities laws (as defined in section 78c(a)(47) of title 15,(!2) (ii) which is a change to the plan which provides for a regularly scheduled suspension, limitation, or restriction which is disclosed to participants or beneficiaries through any summary of material modifications, any materials describing specific investment alternatives under the plan, or any changes thereto, or (iii) which applies only to 1 or more individuals, each of whom is the participant, an alternate payee (as defined in section 1056(d)(3)(K) of this title), or any other beneficiary pursuant to a qualified domestic relations order (as defined in section 1056(d)(3)(B)(i) of this title). (8) Individual account plan (A) In general For purposes of this subsection, the term "individual account plan" shall have the meaning provided such term in section 1002(34) of this title, except that such term shall not include a one-participant retirement plan. (B) One-participant retirement plan For purposes of subparagraph (A), the term "one-participant retirement plan" means a retirement plan that - (i) on the first day of the plan year - (I) covered only the employer (and the employer's spouse) and the employer owned the entire business (whether or not incorporated), or (II) covered only one or more partners (and their spouses) in a business partnership (including partners in an S or C corporation (as defined in section 1361(a) of title 26),(!3) (ii) meets the minimum coverage requirements of section 410(b) of title 26 (as in effect on July 30, 2002) without being combined with any other plan of the business that covers the employees of the business, (iii) does not provide benefits to anyone except the employer (and the employer's spouse) or the partners (and their spouses), (iv) does not cover a business that is a member of an affiliated service group, a controlled group of corporations, or a group of businesses under common control, and (v) does not cover a business that leases employees. (j) Cross reference For regulations relating to coordination of reports to the Secretaries of Labor and the Treasury, see section 1204 of this title. -SOURCE- (Pub. L. 93-406, title I, Sec. 101, Sept. 2, 1974, 88 Stat. 840; Pub. L. 100-203, title IX, Sec. 9304(d), Dec. 22, 1987, 101 Stat. 1330-348; Pub. L. 101-239, title VII, Secs. 7881(b)(5)(A), 7894(b)(2), Dec. 19, 1989, 103 Stat. 2438, 2448; Pub. L. 101-508, title XII, Sec. 12012(d)(1), Nov. 5, 1990, 104 Stat. 1388-572; Pub. L. 103-66, title IV, Sec. 4301(b)(1), Aug. 10, 1993, 107 Stat. 375; Pub. L. 103-465, title VII, Sec. 731(c)(4)(A), Dec. 8, 1994, 108 Stat. 5004; Pub. L. 104-188, title I, Sec. 1421(d)(1), Aug. 20, 1996, 110 Stat. 1799; Pub. L. 104-191, title I, Sec. 101(e)(1), Aug. 21, 1996, 110 Stat. 1952; Pub. L. 104-204, title VI, Sec. 603(b)(3)(B), Sept. 26, 1996, 110 Stat. 2938; Pub. L. 105-34, title XV, Sec. 1503(a), Aug. 5, 1997, 111 Stat. 1061; Pub. L. 105-200, title IV, Sec. 401(h)(1)(A), July 16, 1998, 112 Stat. 668; Pub. L. 106-170, title V, Sec. 535(a)(2)(A), Dec. 17, 1999, 113 Stat. 1934; Pub. L. 107-204, title III, Sec. 306(b)(1), July 30, 2002, 116 Stat. 780.) -REFTEXT- REFERENCES IN TEXT Section 1022(a)(1) of this title, referred to in subsec. (a)(1), was redesignated section 1022(a) of this title by Pub. L. 105-34, title XV, Sec. 1503(b)(1)(B), Aug. 5, 1997, 111 Stat. 1061. -MISC1- AMENDMENTS 2002 - Subsecs. (h) to (j). Pub. L. 107-204 added subsec. (i) and redesignated subsec. (h) relating to cross reference as (j). 1999 - Subsec. (e)(3). Pub. L. 106-170 substituted "December 17, 1999" for "January 1, 1995". 1998 - Subsec. (f). Pub. L. 105-200 struck out subsec. (f) relating to information necessary to comply with Medicare and Medicaid Coverage Data Bank requirements. 1997 - Subsec. (b). Pub. L. 105-34 redesignated pars. (4) and (5) as (1) and (2), respectively, and struck out former pars. (1) to (3), which read as follows: "(1) the summary plan description described in section 1022(a)(1) of this title; "(2) a plan description containing the matter required in section 1022(b) of this title; "(3) modifications and changes referred to in section 1022(a)(2) of this title;". 1996 - Subsec. (g). Pub. L. 104-204 made technical amendment to reference in original act which appears in text as reference to section 1191b of this title. Pub. L. 104-191, Sec. 101(e)(1)(B), added subsec. (g). Former subsec. (g) redesignated (h). Pub. L. 104-188 added subsec. (g). Former subsec. (g) redesignated (h). Subsec. (h). Pub. L. 104-191, Sec. 101(e)(1)(A), redesignated subsec. (g), relating to simple retirement accounts, as (h). Pub. L. 104-188, Sec. 1421(d)(1), redesignated subsec. (g), relating to cross references, as (h). 1994 - Subsec. (e)(3). Pub. L. 103-465 substituted "1995" for "1991". 1993 - Subsecs. (f), (g). Pub. L. 103-66 added subsec. (f) and redesignated former subsec. (f) as (g). 1990 - Subsecs. (e), (f). Pub. L. 101-508 added subsec. (e) and redesignated former subsec. (e) as (f). 1989 - Subsec. (a)(2). Pub. L. 101-239, Sec. 7894(b)(2), substituted "sections" for "section". Subsec. (d)(1). Pub. L. 101-239, Sec. 7881(b)(5)(A), substituted "an employer maintaining a plan" for "an employer of a plan". 1987 - Subsecs. (d), (e). Pub. L. 100-203 added subsec. (d) and redesignated former subsec. (d) as (e). EFFECTIVE DATE OF 2002 AMENDMENT Amendment by Pub. L. 107-204 effective 180 days after July 30, 2002, see section 7244(c) of Title 15, Commerce and Trade. EFFECTIVE DATE OF 1999 AMENDMENT Amendment by Pub. L. 106-170 applicable to qualified transfers occurring after Dec. 17, 1999, see section 535(c)(1) of Pub. L. 106-170, set out as a note under section 420 of Title 26, Internal Revenue Code. EFFECTIVE DATE OF 1998 AMENDMENT Pub. L. 105-200, title IV, Sec. 401(h)(1)(B), July 16, 1998, 112 Stat. 668, provided that: "The amendment made by subparagraph (A) [amending this section] shall take effect as if included in the enactment of the Act entitled 'An Act to repeal the Medicare and Medicaid Coverage Data Bank', approved October 2, 1996 (Public Law 104-226; 110 Stat. 3033)." EFFECTIVE DATE OF 1996 AMENDMENTS Amendment by Pub. L. 104-204 applicable with respect to group health plans for plan years beginning on or after Jan. 1, 1998, see section 603(c) of Pub. L. 104-204 set out as a note under section 1003 of this title. Amendment of Pub. L. 104-191 applicable with respect to group health plans for plan years beginning after June 30, 1997, except as otherwise provided, see section 101(g) of Pub. L. 104-191, set out as an Effective Date note under section 1181 of this title. Amendment by Pub. L. 104-188 applicable to taxable years beginning after Dec. 31, 1996, see section 1421(e) of Pub. L. 104-188, set out as a note under section 72 of Title 26, Internal Revenue Code. EFFECTIVE DATE OF 1993 AMENDMENT Section 4301(d) of Pub. L. 103-66 provided that: "(1) In general. - The amendments made by this section [enacting section 1169 of this title and amending this section and sections 1132 and 1144 of this title] shall take effect on the date of the enactment of this Act [Aug. 10, 1993]. "(2) Plan amendments not required until january 1, 1994. - Any amendment to a plan required to be made by an amendment made by this section shall not be required to be made before the first plan year beginning on or after January 1, 1994, if - "(A) during the period after the date before the date of the enactment of this Act and before such first plan year, the plan is operated in accordance with the requirements of the amendments made by this section, and "(B) such plan amendment applies retroactively to the period after the date before the date of the enactment of this Act and before such first plan year. A plan shall not be treated as failing to be operated in accordance with the provisions of the plan merely because it operates in accordance with this paragraph." EFFECTIVE DATE OF 1990 AMENDMENT Section 12012(e) of Pub. L. 101-508 provided that: "The amendments made by this section [amending this section and sections 1082, 1103, 1108, and 1132 of this title] shall apply to qualified transfers under section 420 of the Internal Revenue Code of 1986 [26 U.S.C. 420] made after the date of the enactment of this Act [Nov. 5, 1990]." EFFECTIVE DATE OF 1989 AMENDMENT Amendment by section 7881(b)(5)(A) 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, Secs. 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 7894(b)(2) 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 Section 9304(d) of Pub. L. 100-203, as amended by Pub. L. 101-239, title VII, Sec. 7881(b)(5)(C), Dec. 19, 1989, 103 Stat. 2438, provided that the amendment made by that section is effective with respect to plan years beginning after Dec. 31, 1987. REGULATIONS Secretary authorized, effective Sept. 2, 1974, to promulgate regulations wherever provisions of this subchapter call for the promulgation of regulations, see section 1031 of this title. PLAN AMENDMENTS NOT REQUIRED UNTIL JULY 30, 2002 For provisions directing that if any amendment made by section 306(b) of Pub. L. 107-204 requires an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after July 30, 2002, see section 7244(b)(3) of Title 15, Commerce and Trade. PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1998 For provisions directing that if any amendments made by subtitle D [Secs. 1401-1465] of title I of Pub. L. 104-188 require an amendment to any plan or annuity contract, such amendment shall not be required to be made before the first day of the first plan year beginning on or after Jan. 1, 1998, see section 1465 of Pub. L. 104-188, set out as a note under section 401 of Title 26, Internal Revenue Code. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 1104, 1132 of this title; title 15 section 7244. -FOOTNOTE- (!1) See References in Text note below. (!2) So in original. The comma probably should be preceded by a closing parenthesis. (!3) So in original. The comma probably should be preceded by a second closing parenthesis. -End- -CITE- 29 USC Sec. 1022 01/06/03 -EXPCITE- TITLE 29 - LABOR CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS Subtitle B - Regulatory Provisions part 1 - reporting and disclosure -HEAD- Sec. 1022. Summary plan description -STATUTE- (a) A summary plan description of any employee benefit plan shall be furnished to participants and beneficiaries as provided in section 1024(b) of this title. The summary plan description shall include the information described in subsection (b) of this section, shall be written in a manner calculated to be understood by the average plan participant, and shall be sufficiently accurate and comprehensive to reasonably apprise such participants and beneficiaries of their rights and obligations under the plan. A summary of any material modification in the terms of the plan and any change in the information required under subsection (b) of this section shall be written in a manner calculated to be understood by the average plan participant and shall be furnished in accordance with section 1024(b)(1) of this title. (b) The summary plan description shall contain the following information: The name and type of administration of the plan; in the case of a group health plan (as defined in section 1191b(a)(1) of this title), whether a health insurance issuer (as defined in section 1191b(b)(2) of this title) is responsible for the financing or administration (including payment of claims) of the plan and (if so) the name and address of such issuer; the name and address of the person designated as agent for the service of legal process, if such person is not the administrator; the name and address of the administrator; names, titles, and addresses of any trustee or trustees (if they are persons different from the administrator); a description of the relevant provisions of any applicable collective bargaining agreement; the plan's requirements respecting eligibility for participation and benefits; a description of the provisions providing for nonforfeitable pension benefits; circumstances which may result in disqualification, ineligibility, or denial or loss of benefits; the source of financing of the plan and the identity of any organization through which benefits are provided; the date of the end of the plan year and whether the records of the plan are kept on a calendar, policy, or fiscal year basis; the procedures to be followed in presenting claims for benefits under the plan including the office at the Department of Labor through which participants and beneficiaries may seek assistance or information regarding their rights under this chapter and the Health Insurance Portability and Accountability Act of 1996 with respect to health benefits that are offered through a group health plan (as defined in section 1191b(a)(1) of this title) and the remedies available under the plan for the redress of claims which are denied in whole or in part (including procedures required under section 1133 of this title). -SOURCE- (Pub. L. 93-406, title I, Sec. 102, Sept. 2, 1974, 88 Stat. 841; Pub. L. 104-191, title I, Sec. 101(c)(2), Aug. 21, 1996, 110 Stat. 1951; Pub. L. 104-204, title VI, Sec. 603(b)(3)(C), Sept. 26, 1996, 110 Stat. 2938; Pub. L. 105-34, title XV, Sec. 1503(b), Aug. 5, 1997, 111 Stat. 1061.) -REFTEXT- REFERENCES IN TEXT This chapter, referred to in subsec. (b), was in the original "this Act", meaning Pub. L. 93-406, known as the Employee Retirement Income Security Act of 1974. Titles I, III, and IV of such Act are classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note set out under section 1001 of this title and Tables. The Health Insurance Portability and Accountability Act of 1996, referred to in subsec. (b), is Pub. L. 104-191, Aug. 21, 1996, 110 Stat. 1936. For complete classification of this Act to the Code, see Short Title of 1996 Amendment note set out under section 201 of Title 42, The Public Health and Welfare, and Tables. -MISC1- AMENDMENTS 1997 - Pub. L. 105-34, Sec. 1503(b)(2)(B), substituted "Summary plan description" for "Plan description and summary plan description" in section catchline. Subsec. (a). Pub. L. 105-34, Sec. 1503(b)(1), struck out "(1)" after subsec. designation and struck out par. (2) which read as follows: "A plan description (containing the information required by subsection (b) of this section) of any employee benefit plan shall be prepared on forms prescribed by the Secretary, and shall be filed with the Secretary as required by section 1024(a)(1) of this title. Any material modification in the terms of the plan and any change in the information described in subsection (b) of this section shall be filed in accordance with section 1024(a)(1)(D) of this title." Subsec. (b). Pub. L. 105-34, Sec. 1503(b)(2)(A), substituted "The summary plan description shall contain" for "The plan description and summary plan description shall contain". 1996 - Subsec. (b). Pub. L. 104-204 made technical amendment to references in original act which appear in text as references to section 1191b of this title. Pub. L. 104-191 inserted "in the case of a group health plan (as defined in section 1191b(a)(1) of this title), whether a health insurance issuer (as defined in section 1191b(b)(2) of this title) is responsible for the financing or administration (including payment of claims) of the plan and (if so) the name and address of such issuer;" after "type of administration of the plan;" and "including the office at the Department of Labor through which participants and beneficiaries may seek assistance or information regarding their rights under this chapter and the Health Insurance Portability and Accountability Act of 1996 with respect to health benefits that are offered through a group health plan (as defined in section 1191b(a)(1) of this title)" after "presenting claims for benefits under the plan". EFFECTIVE DATE OF 1996 AMENDMENTS Amendment by Pub. L. 104-204 applicable with respect to group health plans for plan years beginning on or after Jan. 1, 1998, see section 603(c) of Pub. L. 104-204 set out as a note under section 1003 of this title. Amendment by Pub. L. 104-191 applicable with respect to group health plans for plan years beginning after June 30, 1997, except as otherwise provided, see section 101(g) of Pub. L. 104-191, set out as an Effective Date note under section 1181 of this title. REGULATIONS Secretary authorized, effective Sept. 2, 1974, to promulgate regulations wherever provisions of this subchapter call for the promulgation of regulations, see section 1031 of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 1021, 1024, 1029, 1185 of this title. -End- -CITE- 29 USC Sec. 1023 01/06/03 -EXPCITE- TITLE 29 - LABOR CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS Subtitle B - Regulatory Provisions part 1 - reporting and disclosure -HEAD- Sec. 1023. Annual reports -STATUTE- (a) Publication and filing (1)(A) An annual report shall be published with respect to every employee benefit plan to which this part applies. Such report shall be filed with the Secretary in accordance with section 1024(a) of this title, and shall be made available and furnished to participants in accordance with section 1024(b) of this title. (B) The annual report shall include the information described in subsections (b) and (c) of this section and where applicable subsections (d) and (e) of this section and shall also include - (i) a financial statement and opinion, as required by paragraph (3) of this subsection, and (ii) an actuarial statement and opinion, as required by paragraph (4) of this subsection. (2) If some or all of the information necessary to enable the administrator to comply with the requirements of this subchapter is maintained by - (A) an insurance carrier or other organization which provides some or all of the benefits under the plan, or holds assets of the plan in a separate account, (B) a bank or similar institution which holds some or all of the assets of the plan in a common or collective trust or a separate trust, or custodial account, or (C) a plan sponsor as defined in section 1002(16)(B) of this title, such carrier, organization, bank, institution, or plan sponsor shall transmit and certify the accuracy of such information to the administrator within 120 days after the end of the plan year (or such other date as may be prescribed under regulations of the Secretary). (3)(A) Except as provided in subparagraph (C), the administrator of an employee benefit plan shall engage, on behalf of all plan participants, an independent qualified public accountant, who shall conduct such an examination of any financial statements of the plan, and of other books and records of the plan, as the accountant may deem necessary to enable the accountant to form an opinion as to whether the financial statements and schedules required to be included in the annual reports by subsection (b) of this section are presented fairly in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. Such examination shall be conducted in accordance with generally accepted auditing standards, and shall involve such tests of the books and records of the plan as are considered necessary by the independent qualified public accountant. The independent qualified public accountant shall also offer his opinion as to whether the separate schedules specified in subsection (b)(3) of this section and the summary material required under section 1024(b)(3) of this title present fairly, and in all material respects the information contained therein when considered in conjunction with the financial statements taken as a whole. The opinion by the independent qualified public accountant shall be made a part of the annual report. In a case where a plan is not required to file an annual report, the requirements of this paragraph shall not apply. In a case where by reason of section 1024(a)(2) of this title a plan is required only to file a simplified annual report, the Secretary may waive the requirements of this paragraph. (B) In offering his opinion under this section the accountant may rely on the correctness of any actuarial matter certified to by an enrolled actuary, if he so states his reliance. (C) The opinion required by subparagraph (A) need not be expressed as to any statements required by subsection (b)(3)(G) of this section prepared by a bank or similar institution or insurance carrier regulated and supervised and subject to periodic examination by a State or Federal agency if such statements are certified by the bank, similar institution, or insurance carrier as accurate and are made a part of the annual report. (D) For purposes of this subchapter, the term "qualified public accountant" means - (i) a person who is a certified public accountant, certified by a regulatory authority of a State; (ii) a person who is a licensed public accountant licensed by a regulatory authority of a State; or (iii) a person certified by the Secretary as a qualified public accountant in accordance with regulations published by him for a person who practices in States where there is no certification or licensing procedure for accountants. (4)(A) The administrator of an employee pension benefit plan subject to the reporting requirement of subsection (d) of this section shall engage, on behalf of all plan participants, an enrolled actuary who shall be responsible for the preparation of the materials comprising the actuarial statement required under subsection (d) of this section. In a case where a plan is not required to file an annual report, the requirement of this paragraph shall not apply, and, in a case where by reason of section 1024(a)(2) of this title, a plan is required only to file a simplified report, the Secretary may waive the requirement of this paragraph. (B) The enrolled actuary shall utilize such assumptions and techniques as are necessary to enable him to form an opinion as to whether the contents of the matters reported under subsection (d) of this section - (i) are in the aggregate reasonably related to the experience of the plan and to reasonable expectations; and (ii) represent his best estimate of anticipated experience under the plan. The opinion by the enrolled actuary shall be made with respect to, and shall be made a part of, each annual report. (C) For purposes of this subchapter, the term "enrolled actuary" means an actuary enrolled under subtitle C of subchapter II of this chapter. (D) In making a certification under this section the enrolled actuary may rely on the correctness of any accounting matter under subsection (b) of this section to which any qualified public accountant has expressed an opinion, if he so states his reliance. (b) Financial statement An annual report under this section shall include a financial statement containing the following information: (1) With respect to an employee welfare benefit plan: a statement of assets and liabilities; a statement of changes in fund balance; and a statement of changes in financial position. In the notes to financial statements, disclosures concerning the following items shall be considered by the accountant: a description of the plan including any significant changes in the plan made during the period and the impact of such changes on benefits; a description of material lease commitments, other commitments, and contingent liabilities; a description of agreements and transactions with persons known to be parties in interest; a general description of priorities upon termination of the plan; information concerning whether or not a tax ruling or determination letter has been obtained; and any other matters necessary to fully and fairly present the financial statements of the plan. (2) With respect to an employee pension benefit plan: a statement of assets and liabilities, and a statement of changes in net assets available for plan benefits which shall include details of revenues and expenses and other changes aggregated by general source and application. In the notes to financial statements, disclosures concerning the following items shall be considered by the accountant: a description of the plan including any significant changes in the plan made during the period and the impact of such changes on benefits; the funding policy (including policy with respect to prior service cost), and any changes in such policies during the year; a description of any significant changes in plan benefits made during the period; a description of material lease commitments, other commitments, and contingent liabilities; a description of agreements and transactions with persons known to be parties in interest; a general description of priorities upon termination of the plan; information concerning whether or not a tax ruling or determination letter has been obtained; and any other matters necessary to fully and fairly present the financial statements of such pension plan. (3) With respect to all employee benefit plans, the statement required under paragraph (1) or (2) shall have attached the following information in separate schedules: (A) a statement of the assets and liabilities of the plan aggregated by categories and valued at their current value, and the same data displayed in comparative form for the end of the previous fiscal year of the plan; (B) a statement of receipts and disbursements during the preceding twelve-month period aggregated by general sources and applications; (C) a schedule of all assets held for investment purposes aggregated and identified by issuer, borrower, or lessor, or similar party to the transaction (including a notation as to whether such party is known to be a party in interest), maturity date, rate of interest, collateral, par or maturity value, cost, and current value; (D) a schedule of each transaction involving a person known to be party in interest, the identity of such party in interest and his relationship or that of any other party in interest to the plan, a description of each asset to which the transaction relates; the purchase or selling price in case of a sale or purchase, the rental in case of a lease, or the interest rate and maturity date in case of a loan; expense incurred in connection with the transaction; the cost of the asset, the current value of the asset, and the net gain (or loss) on each transaction; (E) a schedule of all loans or fixed income obligations which were in default as of the close of the plan's fiscal year or were classified during the year as uncollectable and the following information with respect to each loan on such schedule (including a notation as to whether parties involved are known to be parties in interest): the original principal amount of the loan, the amount of principal and interest received during the reporting year, the unpaid balance, the identity and address of the obligor, a detailed description of the loan (including date of making and maturity, interest rate, the type and value of collateral, and other material terms), the amount of principal and interest overdue (if any) and an explanation thereof; (F) a list of all leases which were in default or were classified during the year as uncollectable; and the following information with respect to each lease on such schedule (including a notation as to whether parties involved are known to be parties in interest): the type of property leased (and, in the case of fixed assets such as land, buildings, leasehold, and so forth, the location of the property), the identity of the lessor or lessee from or to whom the plan is leasing, the relationship of such lessors and lessees, if any, to the plan, the employer, employee organization, or any other party in interest, the terms of the lease regarding rent, taxes, insurance, repairs, expenses, and renewal options; the date the leased property was purchased and its cost, the date the property was leased and its approximate value at such date, the gross rental receipts during the reporting period, expenses paid for the leased property during the reporting period, the net receipts from the lease, the amounts in arrears, and a statement as to what steps have been taken to collect amounts due or otherwise remedy the default; (G) if some or all of the assets of a plan or plans are held in a common or collective trust maintained by a bank or similar institution or in a separate account maintained by an insurance carrier or a separate trust maintained by a bank as trustee, the report shall include the most recent annual statement of assets and liabilities of such common or collective trust, and in the case of a separate account or a separate trust, such other information as is required by the administrator in order to comply with this subsection; and (H) a schedule of each reportable transaction, the name of each party to the transaction (except that, in the case of an acquisition or sale of a security on the market, the report need not identify the person from whom the security was acquired or to whom it was sold) and a description of each asset to which the transaction applies; the purchase or selling price in case of a sale or purchase, the rental in case of a lease, or the interest rate and maturity date in case of a loan; expenses incurred in connection with the transaction; the cost of the asset, the current value of the asset, and the net gain (or loss) on each transaction. For purposes of the preceding sentence, the term "reportable transaction" means a transaction to which the plan is a party if such transaction is - (i) a transaction involving an amount in excess of 3 percent of the current value of the assets of the plan; (ii) any transaction (other than a transaction respecting a security) which is part of a series of transactions with or in conjunction with a person in a plan year, if the aggregate amount of such transactions exceeds 3 percent of the current value of the assets of the plan; (iii) a transaction which is part of a series of transactions respecting one or more securities of the same issuer, if the aggregate amount of such transactions in the plan year exceeds 3 percent of the current value of the assets of the plan; or (iv) a transaction with or in conjunction with a person respecting a security, if any other transaction with or in conjunction with such person in the plan year respecting a security is required to be reported by reason of clause (i). (4) The Secretary may, by regulation, relieve any plan from filing a copy of a statement of assets and liabilities (or other information) described in paragraph (3)(G) if such statement and other information is filed with the Secretary by the bank or insurance carrier which maintains the common or collective trust or separate account. (c) Information to be furnished by administrator The administrator shall furnish as a part of a report under this section the following information: (1) The number of employees covered by the plan. (2) The name and address of each fiduciary. (3) Except in the case of a person whose compensation is minimal (determined under regulations of the Secretary) and who performs solely ministerial duties (determined under such regulations), the name of each person (including but not limited to, any consultant, broker, trustee, accountant, insurance carrier, actuary, administrator, investment manager, or custodian who rendered services to the plan or who had transactions with the plan) who received directly or indirectly compensation from the plan during the preceding year for services rendered to the plan or its participants, the amount of such compensation, the nature of his services to the plan or its participants, his relationship to the employer of the employees covered by the plan, or the employee organization, and any other office, position, or employment he holds with any party in interest. (4) An explanation of the reason for any change in appointment of trustee, accountant, insurance carrier, enrolled actuary, administrator, investment manager, or custodian. (5) Such financial and actuarial information including but not limited to the material described in subsections (b) and (d) of this section as the Secretary may find necessary or appropriate. (d) Actuarial statement With respect to an employee pension benefit plan (other than (A) a profit sharing, savings, or other plan, which is an individual account plan, (B) a plan described in section 1081(b) of this title, or (C) a plan described both in section 1321(b) of this title and in paragraph (1), (2), (3), (4), (5), (6), or (7) of section 1081(a) of this title) an annual report under this section for a plan year shall include a complete actuarial statement applicable to the plan year which shall include the following: (1) The date of the plan year, and the date of the actuarial valuation applicable to the plan year for which the report is filed. (2) The date and amount of the contribution (or contributions) received by the plan for the plan year for which the report is filed and contributions for prior plan years not previously reported. (3) The following information applicable to the plan year for which the report is filed: the normal costs, the accrued liabilities, an identification of benefits not included in the calculation; a statement of the other facts and actuarial assumptions and methods used to determine costs, and a justification for any change in actuarial assumptions or cost methods; and the minimum contribution required under section 1082 of this title. (4) The number of participants and beneficiaries, both retired and nonretired, covered by the plan. (5) The current value of the assets accumulated in the plan, and the present value of the assets of the plan used by the actuary in any computation of the amount of contributions to the plan required under section 1082 of this title and a statement explaining the basis of such valuation of present value of assets. (6) Information required in regulations of the Pension Benefit Guaranty Corporation with respect to: (A) the current value of the assets of the plan, (B) the present value of all nonforfeitable benefits for participants and beneficiaries receiving payments under the plan, (C) the present value of all nonforfeitable benefits for all other participants and beneficiaries, (D) the present value of all accrued benefits which are not nonforfeitable (including a separate accounting of such benefits which are benefit commitments, as defined in section 1301(a)(16) of this title), and (E) the actuarial assumptions and techniques used in determining the values described in subparagraphs (A) through (D). (7) A certification of the contribution necessary to reduce the accumulated funding deficiency to zero. (8) A statement by the enrolled actuary - (A) that to the best of his knowledge the report is complete and accurate, and (B) the requirements of section 1082(c)(3) of this title (relating to reasonable actuarial assumptions and methods) have been complied with. (9) A copy of the opinion required by subsection (a)(4) of this section. (10) A statement by the actuary which discloses - (A) any event which the actuary has not taken into account, and (B) any trend which, for purposes of the actuarial assumptions used, was not assumed to continue in the future, but only if, to the best of the actuary's knowledge, such event or trend may require a material increase in plan costs or required contribution rates. (11) If the current value of the assets of the plan is less than 70 percent of the current liability under the plan (within the meaning of section 1082(d)(7) of this title), the percentage which such value is of such liability..(!1) (12) Such other information regarding the plan as the Secretary may by regulation require. (13) Such other information as may be necessary to fully and fairly disclose the actuarial position of the plan. Such actuary shall make an actuarial valuation of the plan for every third plan year, unless he determines that a more frequent valuation is necessary to support his opinion under subsection (a)(4) of this section. (e) Statement from insurance company, insurance service, or other similar organizations which sell or guarantee plan benefits If some or all of the benefits under the plan are purchased from and guaranteed by an insurance company, insurance service, or other similar organization, a report under this section shall include a statement from such insurance company, service, or other similar organization covering the plan year and enumerating - (1) the premium rate or subscription charge and the total premium or subscription charges paid to each such carrier, insurance service, or other similar organization and the approximate number of persons covered by each class of such benefits; and (2) the total amount of premiums received, the approximate number of persons covered by each class of benefits, and the total claims paid by such company, service, or other organization; dividends or retroactive rate adjustments, commissions, and administrative service or other fees or other specific acquisition costs paid by such company, service, or other organization; any amounts held to provide benefits after retirement; the remainder of such premiums; and the names and addresses of the brokers, agents, or other persons to whom commissions or fees were paid, the amount paid to each, and for what purpose. If any such company, service, or other organization does not maintain separate experience records covering the specific groups it serves, the report shall include in lieu of the information required by the foregoing provisions of this paragraph (A) a statement as to the basis of its premium rate or subscription charge, the total amount of premiums or subscription charges received from the plan, and a copy of the financial report of the company, service, or other organization and (B) if such company, service, or organization incurs specific costs in connection with the acquisition or retention of any particular plan or plans, a detailed statement of such costs. -SOURCE- (Pub. L. 93-406, title I, Sec. 103, Sept. 2, 1974, 88 Stat. 841; Pub. L. 96-364, title III, Sec. 307, Sept. 26, 1980, 94 Stat. 1295; Pub. L. 99-272, title XI, Sec. 11016(b)(1), Apr. 7, 1986, 100 Stat. 272; Pub. L. 100-203, title IX, Sec. 9342(a)(1), Dec. 22, 1987, 101 Stat. 1330-371; Pub. L. 101-239, title VII, Sec. 7881(j)(1), Dec. 19, 1989, 103 Stat. 2442.) -MISC1- AMENDMENTS 1989 - Subsec. (d)(11). Pub. L. 101-239 substituted "70 percent" for "60 percent" and "the percentage which such value is of such liability." for "such percentage". 1987 - Subsec. (d)(11) to (13). Pub. L. 100-203 added par. (11) and redesignated former pars. (11) and (12) as (12) and (13), respectively. 1986 - Subsec. (d)(6). Pub. L. 99-272 amended par. (6) generally. Prior to amendment, par. (6) read as follows: "The present value of all of the plan's liabilities for nonforfeitable pension benefits allocated by the termination priority categories as set forth in section 1344 of this title, and the actuarial assumptions used in these computations. The Secretary shall establish regulations defining (for purposes of this section) 'termination priority categories' and acceptable methods, including approximate methods, for allocating the plan's liabilities to such termination priority categories." 1980 - Subsec. (d)(10) to (12). Pub. L. 96-364 added par. (10) and redesignated former pars. (10) and (11) as (11) and (12), respectively. EFFECTIVE DATE OF 1989 AMENDMENT Amendment by Pub. L. 101-239 effective, except as otherwise provided, as if included in the provision of the Pension Protection Act, Pub. L. 100-203, Secs. 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. EFFECTIVE DATE OF 1987 AMENDMENT Amendment by Pub. L. 100-203 applicable with respect to reports required to be filed after Dec. 31, 1987, see section 9342(d)(1) of Pub. L. 100-203, set out as a note under section 1132 of this title. EFFECTIVE DATE OF 1986 AMENDMENT Amendment by Pub. L. 99-272 effective Jan. 1, 1986, 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 Sept. 26, 1980, except as specifically provided, see section 1461(e) of this title. REGULATIONS Secretary authorized, effective Sept. 2, 1974, to promulgate regulations wherever provisions of this subchapter call for the promulgation of regulations, see section 1031 of this title. TRANSITION RULES Section 11016(b)(3) of Pub. L. 99-272 provided that: "Any regulations, modifications, or waivers which have been issued by the Secretary of Labor with respect to section 103(d)(6) of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1023(d)(6)] (as in effect immediately before the date of the enactment of this Act [Apr. 7, 1986]) shall remain in full force and effect until modified by any regulations with respect to such section 103(d)(6) prescribed by the Pension Benefit Guaranty Corporation." CONSOLIDATION OF ACTUARIAL REPORTS Secretary of the Treasury and Secretary of Labor to take such steps as may be necessary to assure coordination to the maximum extent feasible between the actuarial reports required by subsec. (d) of this section and section 6059 of Title 26, Internal Revenue Code, see section 1033(c) of Pub. L. 93-406, set out as a note under section 6059 of Title 26. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 1021, 1024, 1029 of this title; title 5 section 8439. -FOOTNOTE- (!1) So in original. -End- -CITE- 29 USC Sec. 1024 01/06/03 -EXPCITE- TITLE 29 - LABOR CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS Subtitle B - Regulatory Provisions part 1 - reporting and disclosure -HEAD- Sec. 1024. Filing and furnishing of information -STATUTE- (a) Filing of annual report with Secretary (1) The administrator of any employee benefit plan subject to this part shall file with the Secretary the annual report for a plan year within 210 days after the close of such year (or within such time as may be required by regulations promulgated by the Secretary in order to reduce duplicative filing). The Secretary shall make copies of such annual reports available for inspection in the public document room of the Department of Labor. (2)(A) With respect to annual reports required to be filed with the Secretary under this part, he may by regulation prescribe simplified annual reports for any pension plan which covers less than 100 participants. (B) Nothing contained in this paragraph shall preclude the Secretary from requiring any information or data from any such plan to which this part applies where he finds such data or information is necessary to carry out the purposes of this subchapter nor shall the Secretary be precluded from revoking provisions for simplified reports for any such plan if he finds it necessary to do so in order to carry out the objectives of this subchapter. (3) The Secretary may by regulation exempt any welfare benefit plan from all or part of the reporting and disclosure requirements of this subchapter, or may provide for simplified reporting and disclosure if he finds that such requirements are inappropriate as applied to welfare benefit plans. (4) The Secretary may reject any filing under this section - (A) if he determines that such filing is incomplete for purposes of this part; or (B) if he determines that there is any material qualification by an accountant or actuary contained in an opinion submitted pursuant to section 1023(a)(3)(A) or section 1023(a)(4)(B) of this title. (5) If the Secretary rejects a filing of a report under paragraph (4) and if a revised filing satisfactory to the Secretary is not submitted within 45 days after the Secretary makes his determination under paragraph (4) to reject the filing, and if the Secretary deems it in the best interest of the participants, he may take any one or more of the following actions - (A) retain an independent qualified public accountant (as defined in section 1023(a)(3)(D) of this title) on behalf of the participants to perform an audit, (B) retain an enrolled actuary (as defined in section 1023(a)(4)(C) of this title) on behalf of the plan participants, to prepare an actuarial statement, (C) bring a civil action for such legal or equitable relief as may be appropriate to enforce the provisions of this part, or (D) take any other action authorized by this subchapter. The administrator shall permit such accountant or actuary to inspect whatever books and records of the plan are necessary for such audit. The plan shall be liable to the Secretary for the expenses for such audit or report, and the Secretary may bring an action against the plan in any court of competent jurisdiction to recover such expenses. (6) The administrator of any employee benefit plan subject to this part shall furnish to the Secretary, upon request, any documents relating to the employee benefit plan, including but not limited to, the latest summary plan description (including any summaries of plan changes not contained in the summary plan description), and the bargaining agreement, trust agreement, contract, or other instrument under which the plan is established or operated. (b) Publication of summary plan description and annual report to participants and beneficiaries of plan Publication of the summary plan descriptions and annual reports shall be made to participants and beneficiaries of the particular plan as follows: (1) The administrator shall furnish to each participant, and each beneficiary receiving benefits under the plan, a copy of the summary plan description, and all modifications and changes referred to in section 1022(a) of this title - (A) within 90 days after he becomes a participant, or (in the case of a beneficiary) within 90 days after he first receives benefits, or (B) if later, within 120 days after the plan becomes subject to this part. The administrator shall furnish to each participant, and each beneficiary receiving benefits under the plan, every fifth year after the plan becomes subject to this part an updated summary plan description described in section 1022 of this title which integrates all plan amendments made within such five-year period, except that in a case where no amendments have been made to a plan during such five-year period this sentence shall not apply. Notwithstanding the foregoing, the administrator shall furnish to each participant, and to each beneficiary receiving benefits under the plan, the summary plan description described in section 1022 of this title every tenth year after the plan becomes subject to this part. If there is a modification or change described in section 1022(a) of this title (other than a material reduction in covered services or benefits provided in the case of a group health plan (as defined in section 1191b(a)(1) of this title)), a summary description of such modification or change shall be furnished not later than 210 days after the end of the plan year in which the change is adopted to each participant, and to each beneficiary who is receiving benefits under the plan. If there is a modification or change described in section 1022(a) of this title that is a material reduction in covered services or benefits provided under a group health plan (as defined in section 1191b(a)(1) of this title), a summary description of such modification or change shall be furnished to participants and beneficiaries not later than 60 days after the date of the adoption of the modification or change. In the alternative, the plan sponsors may provide such description at regular intervals of not more than 90 days. The Secretary shall issue regulations within 180 days after August 21, 1996, providing alternative mechanisms to delivery by mail through which group health plans (as so defined) may notify participants and beneficiaries of material reductions in covered services or benefits. (2) The administrator shall make copies of the latest updated summary plan description and the latest annual report and the bargaining agreement, trust agreement, contract, or other instruments under which the plan was established or is operated available for examination by any plan participant or beneficiary in the principal office of the administrator and in such other places as may be necessary to make available all pertinent information to all participants (including such places as the Secretary may prescribe by regulations). (3) Within 210 days after the close of the fiscal year of the plan, the administrator shall furnish to each participant, and to each beneficiary receiving benefits under the plan, a copy of the statements and schedules, for such fiscal year, described in subparagraphs (A) and (B) of section 1023(b)(3) of this title and such other material (including the percentage determined under section 1023(d)(11) of this title) as is necessary to fairly summarize the latest annual report. (4) The administrator shall, upon written request of any participant or beneficiary, furnish a copy of the latest updated summary,(!1) plan description, and the latest annual report, any terminal report, the bargaining agreement, trust agreement, contract, or other instruments under which the plan is established or operated. The administrator may make a reasonable charge to cover the cost of furnishing such complete copies. The Secretary may by regulation prescribe the maximum amount which will constitute a reasonable charge under the preceding sentence. (c) Statement of rights The Secretary may by regulation require that the administrator of any employee benefit plan furnish to each participant and to each beneficiary receiving benefits under the plan a statement of the rights of participants and beneficiaries under this subchapter. (d) Cross references For regulations respecting coordination of reports to the Secretaries of Labor and the Treasury, see section 1204 of this title. -SOURCE- (Pub. L. 93-406, title I, Sec. 104, Sept. 2, 1974, 88 Stat. 847; Pub. L. 99-272, title XI, Sec. 11016(b)(2), Apr. 7, 1986, 100 Stat. 273; Pub. L. 100-203, title IX, Sec. 9342(a)(2), Dec. 22, 1987, 101 Stat. 1330-371; Pub. L. 101-239, title VII, Sec. 7894(b)(3), (4), Dec. 19, 1989, 103 Stat. 2448; Pub. L. 104-191, title I, Sec. 101(c)(1), Aug. 21, 1996, 110 Stat. 1951; Pub. L. 104-204, title VI, Sec. 603(b)(3)(D), Sept. 26, 1996, 110 Stat. 2938; Pub. L. 105-34, title XV, Sec. 1503(c)(1), (2)(A), (d)(1)-(3), Aug. 5, 1997, 111 Stat. 1062.) -MISC1- AMENDMENTS 1997 - Subsec. (a)(1). Pub. L. 105-34, Sec. 1503(c)(1), amended par. (1) generally, substituting present provisions for provisions requiring filing of annual report, plan description, summary plan description, as well as modifications and changes in plan descriptions. Subsec. (a)(6). Pub. L. 105-34, Sec. 1503(c)(2)(A), added par. (6). Subsec. (b)(1). Pub. L. 105-34, Sec. 1503(d)(1), substituted "section 1022(a) of this title" for "section 1022(a)(1) of this title" wherever appearing. Subsec. (b)(2). Pub. L. 105-34, Sec. 1503(d)(2), substituted "the latest updated summary plan description and" for "the plan description and". Subsec. (b)(4). Pub. L. 105-34, Sec. 1503(d)(3), struck out "plan description" before ", plan description, and the latest annual report". 1996 - Subsec. (b)(1). Pub. L. 104-204 made technical amendment to references in original act which appear in text as references to section 1191b of this title. Pub. L. 104-191, in closing provisions, substituted "1022(a)(1) of this title (other than a material reduction in covered services or benefits provided in the case of a group health plan (as defined in section 1191b(a)(1) of this title))," for "1022(a)(1) of this title," and inserted at end "If there is a modification or change described in section 1022(a)(1) of this title that is a material reduction in covered services or benefits provided under a group health plan (as defined in section 1191b(a)(1) of this title), a summary description of such modification or change shall be furnished to participants and beneficiaries not later than 60 days after the date of the adoption of the modification or change. In the alternative, the plan sponsors may provide such description at regular intervals of not more than 90 days. The Secretary shall issue regulations within 180 days after August 21, 1996, providing alternative mechanisms to delivery by mail through which group health plans (as so defined) may notify participants and beneficiaries of material reductions in covered services or benefits." 1989 - Subsec. (a)(5)(B). Pub. L. 101-239, Sec. 7894(b)(3), substituted a comma for period at end. Subsec. (b)(1). Pub. L. 101-239, Sec. 7894(b)(4), struck out comma after "summary". 1987 - Subsec. (b)(3). Pub. L. 100-203 inserted "(including the percentage determined under section 1023(d)(11) of this title)" after "material". 1986 - Subsec. (a)(2)(A). Pub. L. 99-272 struck out provision permitting the Secretary to waive or modify the requirements of section 1023(d)(6) of this title if he found that the interests of the plan participants were not harmed and the expense of compliance was not justified by the needs of the participants, the Pension Benefit Guaranty Corporation, and the Department of Labor for some portion or all of the information otherwise required under section 1023(d)(6) of this title. EFFECTIVE DATE OF 1996 AMENDMENTS Amendment by Pub. L. 104-204 applicable with respect to group health plans for plan years beginning on or after Jan. 1, 1998, see section 603(c) of Pub. L. 104-204 set out as a note under section 1003 of this title. Amendment by Pub. L. 104-191 applicable with respect to group health plans for plan years beginning after June 30, 1997, except as otherwise provided, see section 101(g) of Pub. L. 104-191, set out as an Effective Date note under section 1181 of this title. EFFECTIVE DATE OF 1989 AMENDMENT Amendment by 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 reports required to be filed after Dec. 31, 1987, see section 9342(d)(1) of Pub. L. 100-203, set out as a note under section 1132 of this title. EFFECTIVE DATE OF 1986 AMENDMENT Amendment by Pub. L. 99-272 effective Jan. 1, 1986, with certain exceptions, see section 11019 of Pub. L. 99-272, set out as a note under section 1341 of this title. REGULATIONS Secretary authorized, effective Sept. 2, 1974, to promulgate regulations wherever provisions of this subchapter call for the promulgation of regulations, see section 1031 of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 1021, 1022, 1023, 1027, 1029, 1132, 1185 of this title. -FOOTNOTE- (!1) So in original. Comma probably should not appear. -End- -CITE- 29 USC Sec. 1025 01/06/03 -EXPCITE- TITLE 29 - LABOR CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS Subtitle B - Regulatory Provisions part 1 - reporting and disclosure -HEAD- Sec. 1025. Reporting of participant's benefit rights -STATUTE- (a) Statement furnished by administrator to participants and beneficiaries Each administrator of an employee pension benefit plan shall furnish to any plan participant or beneficiary who so requests in writing, a statement indicating, on the basis of the latest available information - (1) the total benefits accrued, and (2) the nonforfeitable pension benefits, if any, which have accrued, or the earliest date on which benefits will become nonforfeitable. (b) One-per-year limit on reports In no case shall a participant or beneficiary be entitled under this section to receive more than one report described in subsection (a) of this section during any one 12-month period. (c) Individual statement furnished by administrator to participants setting forth information in administrator's Internal Revenue registration statement and notification of forfeitable benefits Each administrator required to register under section 6057 of title 26 shall, before the expiration of the time prescribed for such registration, furnish to each participant described in subsection (a)(2)(C) of such section, an individual statement setting forth the information with respect to such participant required to be contained in the registration statement required by section 6057(a)(2) of title 26. Such statement shall also include a notice to the participant of any benefits which are forfeitable if the participant dies before a certain date. (d) Plans to which more than one unaffiliated employer is required to contribute; regulations Subsection (a) of this section shall apply to a plan to which more than one unaffiliated employer is required to contribute only to the extent provided in regulations prescribed by the Secretary in coordination with the Secretary of the Treasury. -SOURCE- (Pub. L. 93-406, title I, Sec. 105, Sept. 2, 1974, 88 Stat. 849; Pub. L. 98-397, title I, Sec. 106, Aug. 23, 1984, 98 Stat. 1436; Pub. L. 101-239, title VII, Secs. 7891(a)(1), 7894(b)(5), Dec. 19, 1989, 103 Stat. 2445, 2448.) -MISC1- AMENDMENTS 1989 - Subsec. (b). Pub. L. 101-239, Sec. 7894(b)(5), substituted "12-month" for "12 month". Subsec. (c). Pub. L. 101-239, Sec. 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. 1984 - Subsec. (c). Pub. L. 98-397 inserted at end "Such statement shall also include a notice to the participant of any benefits which are forfeitable if the participant dies before a certain date." EFFECTIVE DATE OF 1989 AMENDMENT 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(b)(5) 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 1984 AMENDMENT Amendment by Pub. L. 98-397 applicable to plan years beginning after Dec. 31, 1984, except as otherwise provided, see sections 302 and 303 of Pub. L. 98-397, set out as a note under section 1001 of this title. REGULATIONS Secretary of Labor authorized, effective Sept. 2, 1974, to promulgate regulations wherever provisions of this subchapter call for the promulgation of regulations by him, see section 1031 of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 1021, 1026, 1132 of this title. -End- -CITE- 29 USC Sec. 1026 01/06/03 -EXPCITE- TITLE 29 - LABOR CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS Subtitle B - Regulatory Provisions part 1 - reporting and disclosure -HEAD- Sec. 1026. Reports made public information -STATUTE- (a) Except as provided in subsection (b) of this section, the contents of the annual reports, statements, and other documents filed with the Secretary pursuant to this part shall be public information and the Secretary shall make any such information and data available for inspection in the public document room of the Department of Labor. The Secretary may use the information and data for statistical and research purposes, and compile and publish such studies, analyses, reports, and surveys based thereon as he may deem appropriate. (b) Information described in sections 1025(a) and 1025(c) of this title with respect to a participant may be disclosed only to the extent that information respecting that participant's benefits under title II of the Social Security Act [42 U.S.C. 401 et seq.] may be disclosed under such Act. -SOURCE- (Pub. L. 93-406, title I, Sec. 106, Sept. 2, 1974, 88 Stat. 850; Pub. L. 101-239, title VII, Sec. 7894(b)(6), Dec. 19, 1989, 103 Stat. 2448; Pub. L. 105-34, title XV, Sec. 1503(d)(4), Aug. 5, 1997, 111 Stat. 1062.) -REFTEXT- REFERENCES IN TEXT The Social Security Act, referred to in subsec. (b), is act Aug. 14, 1935, ch. 531, 49 Stat. 620, as amended. Title II of the Social Security Act is classified generally to subchapter II (Sec. 401 et seq.) 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. -MISC1- AMENDMENTS 1997 - Subsec. (a). Pub. L. 105-34 struck out "descriptions," before "annual reports,". 1989 - Subsec. (b). Pub. L. 101-239 substituted "sections" for "section". EFFECTIVE DATE OF 1989 AMENDMENT Amendment by 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. -End- -CITE- 29 USC Sec. 1027 01/06/03 -EXPCITE- TITLE 29 - LABOR CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS Subtitle B - Regulatory Provisions part 1 - reporting and disclosure -HEAD- Sec. 1027. Retention of records -STATUTE- Every person subject to a requirement to file any report or to certify any information therefor under this subchapter or who would be subject to such a requirement but for an exemption or simplified reporting requirement under section 1024(a)(2) or (3) of this title shall maintain records on the matters of which disclosure is required which will provide in sufficient detail the necessary basic information and data from which the documents thus required may be verified, explained, or clarified, and checked for accuracy and completeness, and shall include vouchers, worksheets, receipts, and applicable resolutions, and shall keep such records available for examination for a period of not less than six years after the filing date of the documents based on the information which they contain, or six years after the date on which such documents would have been filed but for an exemption or simplified reporting requirement under section 1024(a)(2) or (3) of this title. -SOURCE- (Pub. L. 93-406, title I, Sec. 107, Sept. 2, 1974, 88 Stat. 850; Pub. L. 105-34, title XV, Sec. 1503(d)(5), Aug. 5, 1997, 111 Stat. 1062.) -MISC1- AMENDMENTS 1997 - Pub. L. 105-34 struck out "description or" after "requirement to file any". -End- -CITE- 29 USC Sec. 1028 01/06/03 -EXPCITE- TITLE 29 - LABOR CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS Subtitle B - Regulatory Provisions part 1 - reporting and disclosure -HEAD- Sec. 1028. Reliance on administrative interpretations -STATUTE- In any criminal proceeding under section 1131 of this title, based on any act or omission in alleged violation of this part or section 1112 of this title, no person shall be subject to any liability or punishment for or on account of the failure of such person to (1) comply with this part or section 1112 of this title, if he pleads and proves that the act or omission complained of was in good faith, in conformity with, and in reliance on any regulation or written ruling of the Secretary, or (2) publish and file any information required by any provision of this part if he pleads and proves that he published and filed such information in good faith, and in conformity with any regulation or written ruling of the Secretary issued under this part regarding the filing of such reports. Such a defense, if established, shall be a bar to the action or proceeding, notwithstanding that (A) after such act or omission, such interpretation or opinion is modified or rescinded or is determined by judicial authority to be invalid or of no legal effect, or (B) after publishing or filing the annual reports and other reports required by this subchapter, such publication or filing is determined by judicial authority not to be in conformity with the requirements of this part. -SOURCE- (Pub. L. 93-406, title I, Sec. 108, Sept. 2, 1974, 88 Stat. 850; Pub. L. 101-239, title VII, Sec. 7894(b)(7), Dec. 19, 1989, 103 Stat. 2448; Pub. L. 105-34, title XV, Sec. 1503(d)(6), Aug. 5, 1997, 111 Stat. 1062.) -MISC1- AMENDMENTS 1997 - Pub. L. 105-34, which directed the amendment of cl. (2)(B) by substituting "annual reports" for "plan descriptions, annual reports,", was executed by making the substitution for "plan description, annual reports," to reflect the probable intent of Congress. 1989 - Pub. L. 101-239 substituted "act or omission" for "act of omission" before "complained of". EFFECTIVE DATE OF 1989 AMENDMENT Amendment by 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. REGULATIONS Secretary authorized, effective Sept. 2, 1974, to promulgate regulations wherever provisions of this subchapter call for the promulgation of regulations, see section 1031 of this title. -End- -CITE- 29 USC Sec. 1029 01/06/03 -EXPCITE- TITLE 29 - LABOR CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS Subtitle B - Regulatory Provisions part 1 - reporting and disclosure -HEAD- Sec. 1029. Forms -STATUTE- (a) Information required on forms Except as provided in subsection (b) of this section, the Secretary may require that any information required under this subchapter to be submitted to him, including but not limited to the information required to be filed by the administrator pursuant to section 1023(b)(3) and (c) of this title, must be submitted on such forms as he may prescribe. (b) Information not required on forms The financial statement and opinion required to be prepared by an independent qualified public accountant pursuant to section 1023(a)(3)(A) of this title, the actuarial statement required to be prepared by an enrolled actuary pursuant to section 1023(a)(4)(A) of this title and the summary plan description required by section 1022(a) of this title shall not be required to be submitted on forms. (c) Format and content of summary plan description, annual report, etc., required to be furnished to plan participants and beneficiaries The Secretary may prescribe the format and content of the summary plan description, the summary of the annual report described in section 1024(b)(3) of this title and any other report, statements or documents (other than the bargaining agreement, trust agreement, contract, or other instrument under which the plan is established or operated), which are required to be furnished or made available to plan participants and beneficiaries receiving benefits under the plan. -SOURCE- (Pub. L. 93-406, title I, Sec. 109, Sept. 2, 1974, 88 Stat. 850.) -MISC1- REGULATIONS Secretary authorized, effective Sept. 2, 1974, to promulgate regulations wherever provisions of this subchapter call for the promulgation of regulations, see section 1031 of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 1135 of this title. -End- -CITE- 29 USC Sec. 1030 01/06/03 -EXPCITE- TITLE 29 - LABOR CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS Subtitle B - Regulatory Provisions part 1 - reporting and disclosure -HEAD- Sec. 1030. Alternative methods of compliance -STATUTE- (a) The Secretary on his own motion or after having received the petition of an administrator may prescribe an alternative method for satisfying any requirement of this part with respect to any pension plan, or class of pension plans, subject to such requirement if he determines - (1) that the use of such alternative method is consistent with the purposes of this subchapter and that it provides adequate disclosure to the participants and beneficiaries in the plan, and adequate reporting to the Secretary, (2) that the application of such requirement of this part would - (A) increase the costs to the plan, or (B) impose unreasonable administrative burdens with respect to the operation of the plan, having regard to the particular characteristics of the plan or the type of plan involved; and (3) that the application of this part would be adverse to the interests of plan participants in the aggregate. (b) An alternative method may be prescribed under subsection (a) of this section by regulation or otherwise. If an alternative method is prescribed other than by regulation, the Secretary shall provide notice and an opportunity for interested persons to present their views, and shall publish in the Federal Register the provisions of such alternative method. -SOURCE- (Pub. L. 93-406, title I, Sec. 110, Sept. 2, 1974, 88 Stat. 851.) -MISC1- REGULATIONS Secretary authorized, effective Sept. 2, 1974, to promulgate regulations wherever provisions of this subchapter call for the promulgation of regulations, see section 1031 of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 1343 of this title. -End- -CITE- 29 USC Sec. 1031 01/06/03 -EXPCITE- TITLE 29 - LABOR CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS Subtitle B - Regulatory Provisions part 1 - reporting and disclosure -HEAD- Sec. 1031. Repeal and effective date -STATUTE- (a)(1) The Welfare and Pension Plans Disclosure Act [29 U.S.C. 301 et seq.] is repealed except that such Act shall continue to apply to any conduct and events which occurred before the effective date of this part. (2)(A) Section 664 of title 18 is amended by striking out "any such plan subject to the provisions of the Welfare and Pension Plans Disclosure Act" and inserting in lieu thereof "any employee benefit plan subject to any provisions of title I of the Employee Retirement Income Security Act of 1974". (B)(i) Section 1027 of such title 18 is amended by striking out "Welfare and Pension Plans Disclosure Act" and inserting in lieu thereof "title I of the Employee Retirement Income Security Act of 1974", and by striking out "Act" each place it appears and inserting in lieu thereof "title". (ii) The heading for such section is amended by striking out "welfare and pension plans disclosure act" and inserting in lieu thereof "employee retirement income security act of 1974". (iii) The table of sections of chapter 47 of such title 18 is amended by striking out "Welfare and Pension Plans Disclosure Act" in the item relating to section 1027 and inserting in lieu thereof "Employee Retirement Income Security Act of 1974". (C) Section 1954 of such title 18 is amended by striking out "any plan subject to the provisions of the Welfare and Pension Plans Disclosure Act as amended" and inserting in lieu thereof "any employee welfare benefit plan or employee pension benefit plan, respectively, subject to any provision of title I of the Employee Retirement Income Security Act of 1974"; and by striking out "sections 3(3) and 5(b)(1) and (2) of the Welfare and Pension Plans Disclosure Act, as amended" and inserting in lieu thereof "sections 3(4) and (3)(16) (!1) of the Employee Retirement Income Security Act of 1974". (D) Section 211 of the Labor-Management Reporting and Disclosure Act of 1959 (29 U.S.C. 441) is amended by striking out "Welfare and Pension Plans Disclosure Act" and inserting in lieu thereof "Employee Retirement Income Security Act of 1974". (b)(1) Except as provided in paragraph (2), this part (including the amendments and repeals made by subsection (a) of this section) shall take effect on January 1, 1975. (2) In the case of a plan which has a plan year which begins before January 1, 1975, and ends after December 31, 1974, the Secretary may postpone by regulation the effective date of the repeal of any provision of the Welfare and Pension Plans Disclosure Act (and of any amendment made by subsection (a)(2) of this section) and the effective date of any provision of this part, until the beginning of the first plan year of such plan which begins after January 1, 1975. (c) The provisions of this subchapter authorizing the Secretary to promulgate regulations shall take effect on September 2, 1974. (d) Subsections (b) and (c) of this section shall not apply with respect to amendments made to this part in provisions enacted after September 2, 1974. -SOURCE- (Pub. L. 93-406, title I, Sec. 111, Sept. 2, 1974, 88 Stat. 851; Pub. L. 101-239, title VII, Sec. 7894(h)(1), Dec. 19, 1989, 103 Stat. 2451.) -REFTEXT- REFERENCES IN TEXT The Welfare and Pension Plans Disclosure Act, referred to in subsecs. (a)(1), (2), (b)(2), is Pub. L. 85-836, Aug. 28, 1958, 72 Stat. 997, as amended, which was classified generally to chapter 10 (Sec. 301 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 301 of this title and Tables. Title I of the Employee Retirement Income Security Act of 1974, referred to in subsec. (a)(2)(A) to (C), means title I of Pub. L. 93-406, which enacted this subchapter, amended section 441 of this title, section 5108 of Title 5, Government Organization and Employees, and sections 664, 1027, and 1954 of Title 18, Crimes and Criminal Procedure, and repealed sections 301 to 309 of this title. The Employee Retirement Income Security Act of 1974, referred to in subsec. (a)(2)(B)(ii), (iii), (D), is Pub. L. 93-406, Sept. 2, 1974, 88 Stat. 829, as amended. Titles I, III, and IV of such act are classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note set out under section 1001 of this title and Tables. -MISC1- AMENDMENTS 1989 - Subsec. (d). Pub. L. 101-239 added subsec. (d). EFFECTIVE DATE OF 1989 AMENDMENT Amendment by 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. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 1144 of this title. -FOOTNOTE- (!1) So in original. Probably should be "3(16)". -End- -CITE- 29 USC part 2 - participation and vesting 01/06/03 -EXPCITE- TITLE 29 - LABOR CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS Subtitle B - Regulatory Provisions part 2 - participation and vesting -HEAD- PART 2 - PARTICIPATION AND VESTING -SECREF- PART REFERRED TO IN OTHER SECTIONS This part is referred to in sections 1103, 1132, 1201, 1202 of this title; title 26 section 6057. -End- -CITE- 29 USC Sec. 1051 01/06/03 -EXPCITE- TITLE 29 - LABOR CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS Subtitle B - Regulatory Provisions part 2 - participation and vesting -HEAD- Sec. 1051. Coverage -STATUTE- This part shall apply to any employee benefit plan described in section 1003(a) of this title (and not exempted under section 1003(b) of this title) other than - (1) an employee welfare benefit plan; (2) a plan which is unfunded and is maintained by an employer primarily for the purpose of providing deferred compensation for a select group of management or highly compensated employees; (3)(A) a plan established and maintained by a society, order, or association described in section 501(c)(8) or (9) of title 26, if no part of the contributions to or under such plan are made by employers of participants in such plan, or (B) a trust described in section 501(c)(18) of title 26; (4) a plan which is established and maintained by a labor organization described in section 501(c)(5) of title 26 and which does not at any time after September 2, 1974, provide for employer contributions; (5) any agreement providing payments to a retired partner or a deceased partner's successor in interest, as described in section 736 of title 26; (6) an individual retirement account or annuity described in section 408 of title 26, or a retirement bond described in section 409 of title 26 (as effective for obligations issued before January 1, 1984); (7) an excess benefit plan; or (8) any plan, fund or program under which an employer, all of whose stock is directly or indirectly owned by employees, former employees or their beneficiaries, proposes through an unfunded arrangement to compensate retired employees for benefits which were forfeited by such employees under a pension plan maintained by a former employer prior to the date such pension plan became subject to this chapter. -SOURCE- (Pub. L. 93-406, title I, Sec. 201, Sept. 2, 1974, 88 Stat. 852; Pub. L. 96-364, title IV, Sec. 411(a), Sept. 26, 1980, 94 Stat. 1308; Pub. L. 101-239, title VII, Secs. 7891(a)(1), 7894(c)(1)(A), (11)(A), Dec. 19, 1989, 103 Stat. 2445, 2448, 2449.) -REFTEXT- REFERENCES IN TEXT Section 409 of title 26, referred to in par. (6), means section 409 of Title 26, Internal Revenue Code, prior to its repeal by Pub. L. 98-369, div. A, title IV, Sec. 491(b), July 18, 1984, 98 Stat. 848, applicable to obligations issued after Dec. 31, 1983. This chapter, referred to in par. (8), was in the original "this Act", meaning Pub. L. 93-406, known as the Employee Retirement Income Security Act of 1974. Titles I, III, and IV of such Act are classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note set out under section 1001 of this title and Tables. -MISC1- AMENDMENTS 1989 - Pars. (3)(A), (4), (5). Pub. L. 101-239, Sec. 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. Par. (6). Pub. L. 101-239, Sec. 7891(a)(1), substituted "section 408 of the Internal Revenue Code of 1986" for "section 408 of the Internal Revenue Code of 1954", which for purposes of codification was translated as "section 408 of title 26" thus requiring no change in text. Pub. L. 101-239, Sec. 7894(c)(11)(A), substituted "section 409 of title 26 (as effective for obligations issued before January 1, 1984)" for "section 409 of title 26". Pub. L. 101-239, Sec. 7894(c)(1)(A)(i), struck out "or" after semicolon at end. Par. (7). Pub. L. 101-239, Sec. 7894(c)(1)(A)(ii), substituted "plan; or" for "plan." Par. (8). Pub. L. 101-239, Sec. 7894(c)(1)(A)(iii), substituted "any plan" for "Any plan". 1980 - Par. (8). Pub. L. 96-364 added par. (8). EFFECTIVE DATE OF 1989 AMENDMENT 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. Section 7894(c)(1)(B) of Pub. L. 101-239 provided that: "The amendments made by subparagraph (A) [amending this section] shall take effect as if included in section 411 of the Multiemployer Pension Plan Amendments Act of 1980 [Pub. L. 96-364]." Section 7894(c)(11)(B) of Pub. L. 101-239 provided that: "The amendment made by subparagraph (A) [amending this section] shall take effect as if originally included in section 491(b) of Public Law 98-369." EFFECTIVE DATE OF 1980 AMENDMENT Amendment by Pub. L. 96-364 effective Sept. 26, 1980, except as specifically provided, see section 1461(e) of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 1003 of this title. -End- -CITE- 29 USC Sec. 1052 01/06/03 -EXPCITE- TITLE 29 - LABOR CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS Subtitle B - Regulatory Provisions part 2 - participation and vesting -HEAD- Sec. 1052. Minimum participation standards -STATUTE- (a)(1)(A) No pension plan may require, as a condition of participation in the plan, that an employee complete a period of service with the employer or employers maintaining the plan extending beyond the later of the following dates - (i) the date on which the employee attains the age of 21; or (ii) the date on which he completes 1 year of service. (B)(i) In the case of any plan which provides that after not more than 2 years of service each participant has a right to 100 percent of his accrued benefit under the plan which is nonforfeitable at the time such benefit accrues, clause (ii) of subparagraph (A) shall be applied by substituting "2 years of service" for "1 year of service". (ii) In the case of any plan maintained exclusively for employees of an educational organization (as defined in section 170(b)(1)(A)(ii) of title 26) by an employer which is exempt from tax under section 501(a) of title 26, which provides that each participant having at least 1 year of service has a right to 100 percent of his accrued benefit under the plan which is nonforfeitable at the time such benefit accrues, clause (i) of subparagraph (A) shall be applied by substituting "26" for "21". This clause shall not apply to any plan to which clause (i) applies. (2) No pension plan may exclude from participation (on the basis of age) employees who have attained a specified age. (3)(A) For purposes of this section, the term "year of service" means a 12-month period during which the employee has not less than 1,000 hours of service. For purposes of this paragraph, computation of any 12-month period shall be made with reference to the date on which the employee's employment commenced, except that, in accordance with regulations prescribed by the Secretary, such computation may be made by reference to the first day of a plan year in the case of an employee who does not complete 1,000 hours of service during the 12-month period beginning on the date his employment commenced. (B) In the case of any seasonal industry where the customary period of employment is less than 1,000 hours during a calendar year, the term "year of service" shall be such period as may be determined under regulations prescribed by the Secretary. (C) For purposes of this section, the term "hour of service" means a time of service determined under regulations prescribed by the Secretary. (D) For purposes of this section, in the case of any maritime industry, 125 days of service shall be treated as 1,000 hours of service. The Secretary may prescribe regulations to carry out the purposes of this subparagraph. (4) A plan shall be treated as not meeting the requirements of paragraph (1) unless it provides that any employee who has satisfied the minimum age and service requirements specified in such paragraph, and who is otherwise entitled to participate in the plan, commences participation in the plan no later than the earlier of - (A) the first day of the first plan year beginning after the date on which such employee satisfied such requirements, or (B) the date 6 months after the date on which he satisfied such requirements, unless such employee was separated from the service before the date referred to in subparagraph (A) or (B), whichever is applicable. (b)(1) Except as otherwise provided in paragraphs (2), (3), and (4), all years of service with the employer or employers maintaining the plan shall be taken into account in computing the period of service for purposes of subsection (a)(1) of this section. (2) In the case of any employee who has any 1-year break in service (as defined in section 1053(b)(3)(A) of this title) under a plan to which the service requirements of clause (i) of subsection (a)(1)(B) of this section apply, if such employee has not satisfied such requirements, service before such break shall not be required to be taken into account. (3) In computing an employee's period of service for purposes of subsection (a)(1) of this section in the case of any participant who has any 1-year break in service (as defined in section 1053(b)(3)(A) of this title), service before such break shall not be required to be taken into account under the plan until he has completed a year of service (as defined in subsection (a)(3) of this section) after his return. (4)(A) For purposes of paragraph (1), in the case of a nonvested participant, years of service with the employer or employers maintaining the plan before any period of consecutive 1-year breaks in service shall not be required to be taken into account in computing the period of service if the number of consecutive 1-year breaks in service within such period equals or exceeds the greater of - (i) 5, or (ii) the aggregate number of years of service before such period. (B) If any years of service are not required to be taken into account by reason of a period of breaks in service to which subparagraph (A) applies, such years of service shall not be taken into account in applying subparagraph (A) to a subsequent period of breaks in service. (C) For purposes of subparagraph (A), the term "nonvested participant" means a participant who does not have any nonforfeitable right under the plan to an accrued benefit derived from employer contributions. (5)(A) In the case of each individual who is absent from work for any period - (i) by reason of the pregnancy of the individual, (ii) by reason of the birth of a child of the individual, (iii) by reason of the placement of a child with the individual in connection with the adoption of such child by such individual, or (iv) for purposes of caring for such child for a period beginning immediately following such birth or placement, the plan shall treat as hours of service, solely for purposes of determining under this subsection whether a 1-year break in service (as defined in section 1053(b)(3)(A) of this title) has occurred, the hours described in subparagraph (B). (B) The hours described in this subparagraph are - (i) the hours of service which otherwise would normally have been credited to such individual but for such absence, or (ii) in any case in which the plan is unable to determine the hours described in clause (i), 8 hours of service per day of such absence, except that the total number of hours treated as hours of service under this subparagraph by reason of any such pregnancy or placement shall not exceed 501 hours. (C) The hours described in subparagraph (B) shall be treated as hours of service as provided in this paragraph - (i) only in the year in which the absence from work begins, if a participant would be prevented from incurring a 1-year break in service in such year solely because the period of absence is treated as hours of service as provided in subparagraph (A); or (ii) in any other case, in the immediately following year. (D) For purposes of this paragraph, the term "year" means the period used in computations pursuant to subsection (a)(3)(A) of this section. (E) A plan may provide that no credit will be given pursuant to this paragraph unless the individual furnishes to the plan administrator such timely information as the plan may reasonably require to establish - (i) that the absence from work is for reasons referred to in subparagraph (A), and (ii) the number of days for which there was such an absence. -SOURCE- (Pub. L. 93-406, title I, Sec. 202, Sept. 2, 1974, 88 Stat. 853; Pub. L. 98-397, title I, Sec. 102(a), (d)(1), (e)(1), Aug. 23, 1984, 98 Stat. 1426, 1427; Pub. L. 99-509, title IX, Sec. 9203(a)(1), Oct. 21, 1986, 100 Stat. 1979; Pub. L. 99-514, title XI, Sec. 1113(e)(3), Oct. 22, 1986, 100 Stat. 2448; Pub. L. 101-239, title VII, Secs. 7861(a)(2), 7891(a)(1), 7892(a), 7894(c)(2), Dec. 19, 1989, 103 Stat. 2430, 2445, 2447, 2449.) -MISC1- AMENDMENTS 1989 - Subsec. (a)(1)(B)(i). Pub. L. 101-239, Sec. 7861(a)(2), made technical correction to directory language of Pub. L. 99-514. See 1986 Amendment note below. Subsec. (a)(1)(B)(ii). Pub. L. 101-239, Sec. 7894(c)(2)(A), substituted "educational organization" for "educational institution". Pub. L. 101-239, Sec. 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. (a)(2). Pub. L. 101-239, Sec. 7892(a), struck out comma after "specified age". Subsec. (b)(2). Pub. L. 101-239, Sec. 7894(c)(2)(B), substituted "a plan" for "the plan". 1986 - Subsec. (a)(1)(B)(i). Pub. L. 99-514, as amended by Pub. L. 101-239, Sec. 7861(a)(2), substituted "2 years of service" for "3 years of service" in two places. Subsec. (a)(2). Pub. L. 99-509 substituted a period for "unless - "(A) the plan is a - "(i) defined benefit plan, or "(ii) target benefit plan (as defined under regulations prescribed by the Secretary of the Treasury), and "(B) such employees begin employment with the employer after they have attained a specified age which is not more than 5 years before the normal retirement age under the plan." 1984 - Subsec. (a)(1). Pub. L. 98-397, Sec. 102(a), substituted "21" for "25" in subpar. (A)(i) and " '26' for '21' " for " '30' for '25' " in subpar. (B)(ii). Subsec. (b)(4). Pub. L. 98-397, Sec. 102(d)(1), amended par. (4) generally. Prior to amendment, par. (4) read as follows: "In the case of an employee who does not have any nonforfeitable right to an accrued benefit derived from employer contributions, years of service with the employer or employers maintaining the plan before a break in service shall not be required to be taken into account in computing the period of service for purposes of subsection (a)(1) of this section if the number of consecutive 1-year breaks in service equals or exceeds the aggregate number of such years of service before such break. Such aggregate number of years of service before such break shall be deemed not to include any years of service not required to be taken into account under this paragraph by reason of any prior break in service." Subsec. (b)(5). Pub. L. 98-397, Sec. 102(e)(1), added par. (5). EFFECTIVE DATE OF 1989 AMENDMENT Amendment by section 7861(a)(2) of Pub. L. 101-239 effective as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99-514, to which such amendment relates, see section 7863 of Pub. L. 101-239, set out as a note under section 106 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. Section 7892(c) of Pub. L. 101-239 provided that: "Any amendment made by this section [amending this section and section 1082 of this title] shall take effect as if included in the provision of the Omnibus Budget Reconciliation Act of 1987 [Pub. L. 100-203, probably should refer to Omnibus Budget Reconciliation Act of 1986, Pub. L. 99-509] or Pension Protection Act [Pub. L. 100-203, Secs. 9302-9346, probably should refer to Omnibus Budget Reconciliation Act of 1987, Pub. L. 100-203] to which such amendment relates." Amendment by section 7894(c)(2) 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 1986 AMENDMENTS Amendment by section 1113(e)(3) of Pub. L. 99-514 applicable to plan years beginning after Dec. 31, 1988, with special rule for plans maintained pursuant to collective bargaining agreements ratified before Mar. 1, 1986, and not applicable to employees who do not have 1 hour of service in any plan year to which the amendment applies, see section 1113(f) of Pub. L. 99-514, as amended, set out as a note under section 411 of Title 26, Internal Revenue Code. Amendment by Pub. L. 99-509 applicable only with respect to plan years beginning on or after Jan. 1, 1988, and only with respect to service performed on or after such date, see section 9204 of Pub. L. 99-509, set out as an Effective and Termination Dates of 1986 Amendments note under section 623 of this title. EFFECTIVE DATE OF 1984 AMENDMENT Amendment by Pub. L. 98-397 applicable to plan years beginning after Dec. 31, 1984, except as otherwise provided, see sections 302 and 303 of Pub. L. 98-397, set out as a note under section 1001 of this title. REGULATIONS Secretary of Labor, Secretary of the Treasury, and Equal Employment Opportunity Commission each to issue before Feb. 1, 1988, final regulations to carry out amendments made by Pub. L. 99-509, see section 9204 of Pub. L. 99-509, set out as an Effective and Termination Dates of 1986 Amendment note under section 623 of this title. Secretary authorized, effective Sept. 2, 1974, to promulgate regulations wherever provisions of this subchapter call for the promulgation of regulations, see section 1031 of this title. PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989 For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or title XVIII [Secs. 1800-1899A] of Pub. L. 99-514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. L. 99-514, as amended, set out as a note under section 401 of Title 26, Internal Revenue Code. For provisions directing that if any amendments made by Pub. L. 99-509 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 9204 of Pub. L. 99-509, set out as an Effective and Termination Dates of 1986 Amendment note under section 623 of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 1002, 1053, 1054, 1060, 1061 of this title. -End- -CITE- 29 USC Sec. 1053 01/06/03 -EXPCITE- TITLE 29 - LABOR CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS Subtitle B - Regulatory Provisions part 2 - participation and vesting -HEAD- Sec. 1053. Minimum vesting standards -STATUTE- (a) Nonforfeitability requirements Each pension plan shall provide that an employee's right to his normal retirement benefit is nonforfeitable upon the attainment of normal retirement age and in addition shall satisfy the requirements of paragraphs (1) and (2) of this subsection. (1) A plan satisfies the requirements of this paragraph if an employee's rights in his accrued benefit derived from his own contributions are nonforfeitable. (2) Except as provided in paragraph (4), a plan satisfies the requirements of this paragraph if it satisfies the requirements of subparagraph (A) or (B). (A) A plan satisfies the requirements of this subparagraph if an employee who has completed at least 5 years of service has a nonforfeitable right to 100 percent of the employee's accrued benefit derived from employer contributions. (B) A plan satisfies the requirements of this subparagraph if an employee has a nonforfeitable right to a percentage of the employee's accrued benefit derived from employer contributions determined under the following table: The nonforfeitable Years of service: percentage is: 3 20 4 40 5 60 6 80 7 or more 100. (3)(A) A right to an accrued benefit derived from employer contributions shall not be treated as forfeitable solely because the plan provides that it is not payable if the participant dies (except in the case of a survivor annuity which is payable as provided in section 1055 of this title). (B) A right to an accrued benefit derived from employer contributions shall not be treated as forfeitable solely because the plan provides that the payment of benefits is suspended for such period as the employee is employed, subsequent to the commencement of payment of such benefits - (i) in the case of a plan other than a multiemployer plan, by an employer who maintains the plan under which such benefits were being paid; and (ii) in the case of a multiemployer plan, in the same industry, in the same trade or craft, and the same geographic area covered by the plan, as when such benefits commenced. The Secretary shall prescribe such regulations as may be necessary to carry out the purposes of this subparagraph, including regulations with respect to the meaning of the term "employed". (C) A right to an accrued benefit derived from employer contributions shall not be treated as forfeitable solely because plan amendments may be given retroactive application as provided in section 1082(c)(8) of this title. (D)(i) A right to an accrued benefit derived from employer contributions shall not be treated as forfeitable solely because the plan provides that, in the case of a participant who does not have a nonforfeitable right to at least 50 percent of his accrued benefit derived from employer contributions, such accrued benefit may be forfeited on account of the withdrawal by the participant of any amount attributable to the benefit derived from mandatory contributions (as defined in the last sentence of section 1054(c)(2)(C) of this title) made by such participant. (ii) Clause (i) shall not apply to a plan unless the plan provides that any accrued benefit forfeited under a plan provision described in such clause shall be restored upon repayment by the participant of the full amount of the withdrawal described in such clause plus, in the case of a defined benefit plan, interest. Such interest shall be computed on such amount at the rate determined for purposes of section 1054(c)(2)(C) of this title (if such subsection applies) on the date of such repayment (computed annually from the date of such withdrawal). The plan provision required under this clause may provide that such repayment must be made (I) in the case of a withdrawal on account of separation from service, before the earlier of 5 years after the first date on which the participant is subsequently re-employed by the employer, or the close of the first period of 5 consecutive 1-year breaks in service commencing after the withdrawal; or (II) in the case of any other withdrawal, 5 years after the date of the withdrawal. (iii) In the case of accrued benefits derived from employer contributions which accrued before September 2, 1974, a right to such accrued benefit derived from employer contributions shall not be treated as forfeitable solely because the plan provides that an amount of such accrued benefit may be forfeited on account of the withdrawal by the participant of an amount attributable to the benefit derived from mandatory contributions, made by such participant before September 2, 1974, if such amount forfeited is proportional to such amount withdrawn. This clause shall not apply to any plan to which any mandatory contribution is made after September 2, 1974. The Secretary of the Treasury shall prescribe such regulations as may be necessary to carry out the purposes of this clause. (iv) For purposes of this subparagraph, in the case of any class-year plan, a withdrawal of employee contributions shall be treated as a withdrawal of such contributions on a plan year by plan year basis in succeeding order of time. (v) Cross reference. - For nonforfeitability where the employee has a nonforfeitable right to at least 50 percent of his accrued benefit, see section 1056(c) of this title. (E)(i) A right to an accrued benefit derived from employer contributions under a multiemployer plan shall not be treated as forfeitable solely because the plan provides that benefits accrued as a result of service with the participant's employer before the employer had an obligation to contribute under the plan may not be payable if the employer ceases contributions to the multiemployer plan. (ii) A participant's right to an accrued benefit derived from employer contributions under a multiemployer plan shall not be treated as forfeitable solely because - (I) the plan is amended to reduce benefits under section 1425 or 1441 of this title, or (II) benefit payments under the plan may be suspended under section 1426 or 1441 of this title. (F) A matching contribution (within the meaning of section 401(m) of title 26) shall not be treated as forfeitable merely because such contribution is forfeitable if the contribution to which the matching contribution relates is treated as an excess contribution under section 401(k)(8)(B) of title 26, an excess deferral under section 402(g)(2)(A) of title 26, or an excess aggregate contribution under section 401(m)(6)(B) of title 26. (4) In the case of matching contributions (as defined in section 401(m)(4)(A) of title 26), paragraph (2) shall be applied - (A) by substituting "3 years" for "5 years" in subparagraph (A), and (B) by substituting the following table for the table contained in subparagraph (B): The nonforfeitable Years of service: percentage is: 2 20 3 40 4 60 5 80 6 100. (b) Computation of period of service (1) In computing the period of service under the plan for purposes of determining the nonforfeitable percentage under subsection (a)(2) of this section, all of an employee's years of service with the employer or employers maintaining the plan shall be taken into account, except that the following may be disregarded: (A) years of service before age 18,(!1) (B) years of service during a period for which the employee declined to contribute to a plan requiring employee contributions,(!1) (C) years of service with an employer during any period for which the employer did not maintain the plan or a predecessor plan, defined by the Secretary of the Treasury; (D) service not required to be taken into account under paragraph (3); (E) years of service before January 1, 1971, unless the employee has had at least 3 years of service after December 31, 1970; (F) years of service before this part first applies to the plan if such service would have been disregarded under the rules of the plan with regard to breaks in service, as in effect on the applicable date; and (G) in the case of a multiemployer plan, years of service - (i) with an employer after - (I) a complete withdrawal of such employer from the plan (within the meaning of section 1383 of this title), or (II) to the extent permitted by regulations prescribed by the Secretary of the Treasury, a partial withdrawal described in section 1385(b)(2)(A)(i) of this title in connection with the decertification of the collective bargaining representative; and (ii) with any employer under the plan after the termination date of the plan under section 1348 of this title. (2)(A) For purposes of this section, except as provided in subparagraph (C), the term "year of service" means a calendar year, plan year, or other 12-consecutive month period designated by the plan (and not prohibited under regulations prescribed by the Secretary) during which the participant has completed 1,000 hours of service. (B) For purposes of this section, the term "hour of service" has the meaning provided by section 1052(a)(3)(C) of this title. (C) In the case of any seasonal industry where the customary period of employment is less than 1,000 hours during a calendar year, the term "year of service" shall be such period as determined under regulations of the Secretary. (D) For purposes of this section, in the case of any maritime industry, 125 days of service shall be treated as 1,000 hours of service. The Secretary may prescribe regulations to carry out the purposes of this subparagraph. (3)(A) For purposes of this paragraph, the term "1-year break in service" means a calendar year, plan year, or other 12-consecutive-month period designated by the plan (and not prohibited under regulations prescribed by the Secretary) during which the participant has not completed more than 500 hours of service. (B) For purposes of paragraph (1), in the case of any employee who has any 1-year break in service, years of service before such break shall not be required to be taken into account until he has completed a year of service after his return. (C) For purposes of paragraph (1), in the case of any participant in an individual account plan or an insured defined benefit plan which satisfies the requirements of subsection 1054(b)(1)(F) of this title who has 5 consecutive 1-year breaks in service, years of service after such 5-year period shall not be required to be taken into account for purposes of determining the nonforfeitable percentage of his accrued benefit derived from employer contributions which accrued before such 5-year period. (D)(i) For purposes of paragraph (1), in the case of a nonvested participant, years of service with the employer or employers maintaining the plan before any period of consecutive 1-year breaks in service shall not be required to be taken into account if the number of consecutive 1-year breaks in service within such period equals or exceeds the greater of - (I) 5, or (II) the aggregate number of years of service before such period. (ii) If any years of service are not required to be taken into account by reason of a period of breaks in service to which clause (i) applies, such years of service shall not be taken into account in applying clause (i) to a subsequent period of breaks in service. (iii) For purposes of clause (i), the term "nonvested participant" means a participant who does not have any nonforfeitable right under the plan to an accrued benefit derived from employer contributions. (E)(i) In the case of each individual who is absent from work for any period - (I) by reason of the pregnancy of the individual, (II) by reason of the birth of a child of the individual, (III) by reason of the placement of a child with the individual in connection with the adoption of such child by such individual, or (IV) for purposes of caring for such child for a period beginning immediately following such birth or placement, the plan shall treat as hours of service, solely for purposes of determining under this paragraph whether a 1-year break in service has occurred, the hours described in clause (ii). (ii) The hours described in this clause are - (I) the hours of service which otherwise would normally have been credited to such individual but for such absence, or (II) in any case in which the plan is unable to determine the hours described in subclause (I), 8 hours of service per day of absence, except that the total number of hours treated as hours of service under this clause by reason of such pregnancy or placement shall not exceed 501 hours. (iii) The hours described in clause (ii) shall be treated as hours of service as provided in this subparagraph - (I) only in the year in which the absence from work begins, if a participant would be prevented from incurring a 1-year break in service in such year solely because the period of absence is treated as hours of service as provided in clause (i); or (II) in any other case, in the immediately following year. (iv) For purposes of this subparagraph, the term "year" means the period used in computations pursuant to paragraph (2). (v) A plan may provide that no credit will be given pursuant to this subparagraph unless the individual furnishes to the plan administrator such timely information as the plan may reasonably require to establish - (I) that the absence from work is for reasons referred to in clause (i), and (II) the number of days for which there was such an absence. (4) Cross references. - (A) For definitions of "accrued benefit" and "normal retirement age", see sections 1002(23) and (24) of this title. (B) For effect of certain cash out distributions, see section 1054(d)(1) of this title. (c) Plan amendments altering vesting schedule (1)(A) A plan amendment changing any vesting schedule under the plan shall be treated as not satisfying the requirements of subsection (a)(2) of this section if the nonforfeitable percentage of the accrued benefit derived from employer contributions (determined as of the later of the date such amendment is adopted, or the date such amendment becomes effective) of any employee who is a participant in the plan is less than such nonforfeitable percentage computed under the plan without regard to such amendment. (B) A plan amendment changing any vesting schedule under the plan shall be treated as not satisfying the requirements of subsection (a)(2) of this section unless each participant having not less than 3 years of service is permitted to elect, within a reasonable period after adoption of such amendment, to have his nonforfeitable percentage computed under the plan without regard to such amendment. (2) Subsection (a) of this section shall not apply to benefits which may not be provided for designated employees in the event of early termination of the plan under provisions of the plan adopted pursuant to regulations prescribed by the Secretary of the Treasury to preclude the discrimination prohibited by section 401(a)(4) of title 26. (d) Nonforfeitable benefits after lesser period and in greater amounts than required A pension plan may allow for nonforfeitable benefits after a lesser period and in greater amounts than are required by this part. (e) Consent for distribution; present value; covered distributions (1) If the present value of any nonforfeitable benefit with respect to a participant in a plan exceeds $5,000, the plan shall provide that such benefit may not be immediately distributed without the consent of the participant. (2) For purposes of paragraph (1), the present value shall be calculated in accordance with section 1055(g)(3) of this title. (3) This subsection shall not apply to any distribution of dividends to which section 404(k) of title 26 applies. (4) A plan shall not fail to meet the requirements of this subsection if, under the terms of the plan, the present value of the nonforfeitable accrued benefit is determined without regard to that portion of such benefit which is attributable to rollover contributions (and earnings allocable thereto). For purposes of this subparagraph, the term "rollover contributions" means any rollover contribution under sections 402(c), 403(a)(4), 403(b)(8), 408(d)(3)(A)(ii), and 457(e)(16) of title 26. -SOURCE- (Pub. L. 93-406, title I, Sec. 203, Sept. 2, 1974, 88 Stat. 854; Pub. L. 96-364, title III, Sec. 303, Sept. 26, 1980, 94 Stat. 1292; Pub. L. 98-397, title I, Secs. 102(b), (c), (d)(2), (e)(2), 105(a), Aug. 23, 1984, 98 Stat. 1426-1428, 1436; Pub. L. 99-514, title XI, Secs. 1113(e)(1), (2), (4)(A), 1139(c)(1), title XVIII, Sec. 1898(a)(1)(B), (4)(B)(i), (d)(1)(B), (2)(B), Oct. 22, 1986, 100 Stat. 2447, 2448, 2487, 2942, 2944, 2955; Pub. L. 101-239, title VII, Secs. 7861(a)(1), (5)(B), (6)(B), 7862(d)(4), (5), (10), 7891(a)(1), (b)(1), (2), 7894(c)(3), Dec. 19, 1989, 103 Stat. 2430, 2434, 2445, 2449; Pub. L. 103-465, title VII, Sec. 767(c)(1), Dec. 8, 1994, 108 Stat. 5039; Pub. L. 104-188, title I, Sec. 1442(b), Aug. 20, 1996, 110 Stat. 1808; Pub. L. 105-34, title X, Sec. 1071(b)(1), Aug. 5, 1997, 111 Stat. 948; Pub. L. 107-16, title VI, Secs. 633(b), 648(a)(2), June 7, 2001, 115 Stat. 116, 127.) -STATAMEND- AMENDMENT OF SECTION For termination of amendment by section 901 of Pub. L. 107-16, see Effective and Termination Dates of 2001 Amendment note below. -MISC1- AMENDMENTS 2001 - Subsec. (a)(2). Pub. L. 107-16, Secs. 633(b)(1), 901, temporarily substituted "Except as provided in paragraph (4), a plan" for "A plan" in introductory provisions. See Effective and Termination Dates of 2001 Amendment note below. Subsec. (a)(4). Pub. L. 107-16, Secs. 633(b)(2), 901, temporarily added par. (4). See Effective and Termination Dates of 2001 Amendment note below. Subsec. (e)(4). Pub. L. 107-16, Secs. 648(a)(2), 901, temporarily added par. (4). See Effective and Termination Dates of 2001 Amendment note below. 1997 - Subsec. (e)(1). Pub. L. 105-34 substituted "$5,000" for "$3,500". 1996 - Subsec. (a)(2). Pub. L. 104-188, Sec. 1442(b)(1), substituted "subparagraph (A) or (B)" for "subparagraph (A), (B), or (C)" in introductory provisions. Subsec. (a)(2)(C). Pub. L. 104-188, Sec. 1442(b)(2), struck out subpar. (C) which read as follows: "A plan satisfies the requirements of this subparagraph if - "(i) the plan is a multiemployer plan (within the meaning of section 1002(37)), and "(ii) under the plan - "(I) an employee who is covered pursuant to a collective bargaining agreement described in section 1002(37)(A)(ii) of this title and who has completed at least 10 years of service has a nonforfeitable right to 100 percent of the employee's accrued benefit derived from employer contributions, and "(II) the requirements of subparagraph (A) or (B) are met with respect to employees not described in subclause (I)." 1994 - Subsec. (e)(2). Pub. L. 103-465 amended par. (2) generally. Prior to amendment, par. (2) read as follows: "(2)(A) For purposes of paragraph (1), the present value shall be calculated - "(i) by using an interest rate no greater than the applicable interest rate if the vested accrued benefit (using such rate) is not in excess of $25,000, and "(ii) by using an interest rate no greater than 120 percent of the applicable interest rate if the vested accrued benefit exceeds $25,000 (as determined under clause (i)). In no event shall the present value determined under subclause (II) be less than $25,000. "(B) For purposes of subparagraph (A), the term 'applicable interest rate' means the interest rate which would be used (as of the date of the distribution) by the Pension Benefit Guaranty Corporation for purposes of determining the present value of a lump sum distribution on plan termination." 1989 - Subsec. (a)(2). Pub. L. 101-239, Sec. 7861(a)(1)(A), substituted "satisfies the requirements" for "satisfies the following requirements" in introductory provisions. Subsec. (a)(2)(C)(ii)(I). Pub. L. 101-239, Sec. 7861(a)(1)(B), substituted "section 1002(37)(A)(ii) of this title" for "section 414(f)(1)(B)". Subsec. (a)(3)(D)(v). Pub. L. 101-239, Sec. 7894(c)(3), substituted "nonforfeitability" for "nonforfeitably". Subsec. (a)(3)(F). Pub. L. 101-239, Sec. 7861(a)(5)(B), added subpar. (F). Subsec. (b)(1)(A). Pub. L. 101-239, Sec. 7861(a)(6)(B), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: "years of service before age 18, except that in case of a plan which does not satisfy subparagraph (A) or (B) of subsection (a)(2) of this section, the plan may not disregard any such year of service during which the employee was a participant;". Subsec. (c)(2). Pub. L. 101-239, Sec. 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. (e)(1). Pub. L. 101-239, Sec. 7862(d)(10), which directed amendment of par. (1) by substituting "nonforfeitable benefit" for "vested accrued benefit", could not be executed because the language "vested accrued benefit" did not appear after the amendment by Pub. L. 101-239, Sec. 7862(d)(5), see below. Pub. L. 101-239, Sec. 7862(d)(5), amended par. (1) generally. Prior to amendment, par. (1) read as follows: "If the present value of any vested accrued benefit exceeds $3,500, a pension plan shall provide that such benefit may not be immediately distributed without the consent of the participant." Pub. L. 101-239, Sec. 7862(d)(4), made technical correction to Pub. L. 99-514, Sec. 1898(d)(1)(B), see 1986 Amendment note below. Subsec. (e)(2). Pub. L. 101-239, Sec. 7891(b)(1), (2), realigned margins of subpars. (A) and (B) and struck out subpar. (B) heading "Applicable interest rate". Subsec. (e)(3). Pub. L. 101-239, Sec. 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. 1986 - Subsec. (a)(2). Pub. L. 99-514, Sec. 1113(e)(1), amended par. (2) generally, substituting provisions covering 5-year vesting, 3- to 7-year vesting, and multiemployer plans, for former provisions which covered 10-year vesting, 5- to 15-year vesting, and the "rule of 45" under which a plan satisfied the requirements of this paragraph if an employee who had completed at least 5 years of service and with respect to whom the sum of his age and years of service equalled or exceeded 45 had a right to a percentage of his accrued benefits derived from employer contributions. Subsec. (a)(3)(D)(ii). Pub. L. 99-514, Sec. 1898(a)(4)(B)(i), inserted last sentence and struck out former last sentence which read as follows: "In the case of a defined contribution plan the plan provision required under this clause may provide that such repayment must be made before the participant has any 1-year break in service commencing after the withdrawal." Subsec. (c)(1)(B). Pub. L. 99-514, Sec. 1113(e)(4)(A), substituted "3 years" for "5 years". Subsec. (c)(3). Pub. L. 99-514, Sec. 1113(e)(2), struck out par. (3) which provided for class year vesting. Pub. L. 99-514, Sec. 1898(a)(1)(B), amended par. (3) generally. Prior to amendment, par. (3) read as follows: "The requirements of subsection (a)(2) of this section shall be deemed to be satisfied in the case of a class year plan if such plan provides that 100 percent of each employee's right to or derived from the contributions of the employer on his behalf with respect to any plan year are nonforfeitable not later than the end of the 5th year following the plan year for which such contributions were made. For purposes of this part, the term 'class year plan' means a profit sharing, stock bonus, or money purchase plan which provides for the separate nonforfeitability of employees' rights to or derived from the contributions for each plan year." Subsec. (e)(1). Pub. L. 99-514, Sec. 1898(d)(1)(B), as amended by Pub. L. 101-239, Sec. 7862(d)(4), amended par. (1) generally. Prior to amendment, par. (1) read as follows: "If the present value of any accrued benefit exceeds $3,500, such benefit shall not be treated as nonforfeitable if the plan provides that the present value of such benefit could be immediately distributed without the consent of the participant." Subsec. (e)(2). Pub. L. 99-514, Sec. 1139(c)(1), amended par. (2) generally. Prior to amendment, par. (2) read as follows: "For purposes of paragraph (1), the present value shall be calculated by using an interest rate not greater than the interest rate which would be used (as of the date of the distribution) by the Pension Benefit Guaranty Corporation for purposes of determining the present value of a lump sum distribution on plan termination." Pub. L. 99-514, Sec. 1898(d)(2)(B), added par. (3). 1984 - Subsec. (b)(1)(A). Pub. L. 98-397, Sec. 102(b), substituted "18" for "22". Subsec. (b)(3)(C). Pub. L. 98-397, Sec. 102(c), substituted "5 consecutive 1-year breaks in service" for "any 1-year break in service" and substituted "such 5-year period" for "such break" in two places. Subsec. (b)(3)(D). Pub. L. 98-397, Sec. 102(d)(2), amended subpar. (D) generally. Prior to amendment, subpar. (D) read as follows: "For purposes of paragraph (1), in the case of a participant who, under the plan, does not have any nonforfeitable right to an accrued benefit derived from employer contributions, years of service before any 1-year break in service shall not be required to be taken into account if the number of consecutive 1-year breaks in service equals or exceeds the aggregate number of such years of service prior to such break. Such aggregate number of years of service before such break shall be deemed not to include any years of service not required to be taken into account under this subparagraph by reason of any prior break in service." Subsec. (b)(3)(E). Pub. L. 98-397, Sec. 102(e)(2), added subpar. (E). Subsec. (e). Pub. L. 98-397, Sec. 105(a), added subsec. (e). 1980 - Subsec. (a)(3)(E). Pub. L. 96-364, Sec. 303(1), added subpar. (E). Subsec. (b)(1)(G). Pub. L. 96-364, Sec. 303(2)-(4), added subpar. (G). EFFECTIVE AND TERMINATION DATES OF 2001 AMENDMENT Amendment by section 633(b) of Pub. L. 107-16 applicable to contributions for plan years beginning after Dec. 31, 2001, with exception in the case of a plan maintained pursuant to one or more collective bargaining agreements ratified by June 7, 2001, and service requirement with respect to any plan, see section 633(c) of Pub. L. 107-16, set out as a note under section 411 of Title 26, Internal Revenue Code. Amendment by section 648(a)(2) of Pub. L. 107-16 applicable to distributions after Dec. 31, 2001, see section 648(c) of Pub. L. 107-16, set out as a note under section 411 of Title 26, Internal Revenue Code. Amendment by Pub. L. 107-16 inapplicable to taxable, plan, or limitation years beginning after Dec. 31, 2010, and the Employee Retirement Income Security Act of 1974, Pub. L. 93-406, to be applied and administered to such years as if such amendment had never been enacted, see section 901 of Pub. L. 107-16, set out as a note under section 1 of Title 26, Internal Revenue Code. EFFECTIVE DATE OF 1997 AMENDMENT Amendment by Pub. L. 105-34 applicable to plan years beginning after Aug. 5, 1997, see section 1071(c) of Pub. L. 105-34, set out as a note under section 411 of Title 26, Internal Revenue Code. EFFECTIVE DATE OF 1996 AMENDMENT Amendment by Pub. L. 104-188 applicable to plan years beginning on or after the earlier of (1) the later of (A) Jan. 1, 1997, or (B) the date on which the last of the collective bargaining agreements pursuant to which the plan is maintained terminates (determined without regard to any extension thereof after Aug. 20, 1996), or (2) Jan. 1, 1999, but such amendment not applicable to any individual who does not have more than 1 hour of service under the plan on or after the 1st day of the 1st plan year to which such amendment applies, see section 1442(c) of Pub. L. 104-188, set out as a note under section 411 of Title 26, Internal Revenue Code. EFFECTIVE DATE OF 1994 AMENDMENT Amendment by Pub. L. 103-465 applicable to plan years and limitation years beginning after Dec. 31, 1994, except that employer may elect to treat such amendment as effective on or after Dec. 8, 1994, with provisions relating to reduction of accrued benefits, exception, and timing of plan amendment, see section 767(d) of Pub. L. 103-465, as amended, set out as a note under section 411 of Title 26, Internal Revenue Code. EFFECTIVE DATE OF 1989 AMENDMENT Amendment by sections 7861(a)(1), (5)(B), (6)(B) and 7862(d)(4), (5), (10) of Pub. L. 101-239 effective as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99-514, to which such amendment relates, see section 7863 of Pub. L. 101-239, set out as a note under section 106 of Title 26, Internal Revenue Code. Amendment by section 7891(a)(1), (b)(1), (2) 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(c)(3) 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 1986 AMENDMENT Amendment by section 1113(e)(1), (2), (4)(A) of Pub. L. 99-514 applicable to plan years beginning after Dec. 31, 1988, with special rule for plans maintained pursuant to collective bargaining agreements ratified before Mar. 1, 1986, and not applicable to employees who do not have 1 hour of service in any plan year to which the amendment applies, see section 1113(f) of Pub. L. 99-514, as amended, set out as a note under section 411 of Title 26, Internal Revenue Code. Amendment by section 1139(c)(1) of Pub. L. 99-514 applicable to distributions in plan years beginning after Dec. 31, 1984, except that such amendments shall not apply to any distributions in plan years beginning after Dec. 31, 1984, and before Jan. 1, 1987, if such distributions were made in accordance with the requirements of the regulations issued under the Retirement Equity Act of 1984, Pub. L. 98-397, with additional provisions relating to reductions in accrued benefits, see section 1139(d) of Pub. L. 99-514, set out as a note under section 411 of Title 26. Amendment by section 1898(a)(1)(B) of Pub. L. 99-514 applicable to contributions made for plan years beginning after Oct. 22, 1986, except that in the case of a plan described in section 302(b) of Pub. L. 98-397, set out as a note under section 1001 of this title, such amendments shall not apply to any plan year to which amendments made by Pub. L. 98-397 do not apply by reason of such section 302(b), see section 1898(a)(1)(C) of Pub. L. 99-514, set out as a note under section 411 of Title 26. Amendment by section 1898(a)(4)(B)(i), (d)(1)(B), (2)(B), of Pub. L. 99-514 effective as if included in the provision of the Retirement Equity Act of 1984, Pub. L. 98-397, to which such amendment relates, except as otherwise provided, see section 1898(j) of Pub. L. 99-514, set out as a note under section 401 of Title 26. EFFECTIVE DATE OF 1984 AMENDMENT Amendment by Pub. L. 98-397 applicable to plan years beginning after Dec. 31, 1984, except as otherwise provided, see sections 302 and 303 of Pub. L. 98-397, set out as a note under section 1001 of this title. EFFECTIVE DATE OF 1980 AMENDMENT Amendment by Pub. L. 96-364 effective Sept. 26, 1980, except as specifically provided, see section 1461(e) of this title. REGULATIONS Secretary of the Treasury or his delegate to issue before Feb. 1, 1988, final regulations to carry out amendments made by section 1113 of Pub. L. 99-514, see section 1141 of Pub. L. 99-514, set out as a note under section 401 of Title 26, Internal Revenue Code. Secretary authorized, effective Sept. 2, 1974, to promulgate regulations wherever provisions of this subchapter call for the promulgation of regulations, see section 1031 of this title. PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1998 For provisions directing that if any amendments made by subtitle D [Secs. 1401-1465] of title I of Pub. L. 104-188 require an amendment to any plan or annuity contract, such amendment shall not be required to be made before the first day of the first plan year beginning on or after Jan. 1, 1998, see section 1465 of Pub. L. 104-188, set out as a note under section 401 of Title 26, Internal Revenue Code. PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989 For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or title XVIII [Secs. 1800-1899A] of Pub. L. 99-514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. L. 99-514, as amended, set out as a note under section 401 of Title 26, Internal Revenue Code. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 623, 1002, 1052, 1054, 1055, 1056, 1057, 1059, 1060, 1061, 1222, 1344, 1425, 1426, 1441 of this title; title 26 section 6057. -FOOTNOTE- (!1) So in original. The comma probably should be a semicolon. -End- -CITE- 29 USC Sec. 1054 01/06/03 -EXPCITE- TITLE 29 - LABOR CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS Subtitle B - Regulatory Provisions part 2 - participation and vesting -HEAD- Sec. 1054. Benefit accrual requirements -STATUTE- (a) Satisfaction of requirements by pension plans Each pension plan shall satisfy the requirements of subsection (b)(3) of this section, and - (1) in the case of a defined benefit plan, shall satisfy the requirements of subsection (b)(1) of this section; and (2) in the case of a defined contribution plan, shall satisfy the requirements of subsection (b)(2) of this section. (b) Enumeration of plan requirements (1)(A) A defined benefit plan satisfies the requirements of this paragraph if the accrued benefit to which each participant is entitled upon his separation from the service is not less than - (i) 3 percent of the normal retirement benefit to which he would be entitled at the normal retirement age if he commenced participation at the earliest possible entry age under the plan and served continuously until the earlier of age 65 or the normal retirement age specified under the plan, multiplied by (ii) the number of years (not in excess of 33 1/3 ) of his participation in the plan. In the case of a plan providing retirement benefits based on compensation during any period, the normal retirement benefit to which a participant would be entitled shall be determined as if he continued to earn annually the average rate of compensation which he earned during consecutive years of service, not in excess of 10, for which his compensation was the highest. For purposes of this subparagraph, social security benefits and all other relevant factors used to compute benefits shall be treated as remaining constant as of the current year for all years after such current year. (B) A defined benefit plan satisfies the requirements of this paragraph of a particular plan year if under the plan the accrued benefit payable at the normal retirement age is equal to the normal retirement benefit and the annual rate at which any individual who is or could be a participant can accrue the retirement benefits payable at normal retirement age under the plan for any later plan year is not more than 133 1/3 percent of the annual rate at which he can accrue benefits for any plan year beginning on or after such particular plan year and before such later plan year. For purposes of this subparagraph - (i) any amendment to the plan which is in effect for the current year shall be treated as in effect for all other plan years; (ii) any change in an accrual rate which does not apply to any individual who is or could be a participant in the current year shall be disregarded; (iii) the fact that benefits under the plan may be payable to certain employees before normal retirement age shall be disregarded; and (iv) social security benefits and all other relevant factors used to compute benefits shall be treated as remaining constant as of the current year for all years after the current year. (C) A defined benefit plan satisfies the requirements of this paragraph if the accrued benefit to which any participant is entitled upon his separation from the service is not less than a fraction of the annual benefit commencing at normal retirement age to which he would be entitled under the plan as in effect on the date of his separation if he continued to earn annually until normal retirement age the same rate of compensation upon which his normal retirement benefit would be computed under the plan, determined as if he had attained normal retirement age on the date any such determination is made (but taking into account no more than the 10 years of service immediately preceding his separation from service). Such fraction shall be a fraction, not exceeding 1, the numerator of which is the total number of his years of participation in the plan (as of the date of his separation from the service) and the denominator of which is the total number of years he would have participated in the plan if he separated from the service at the normal retirement age. For purposes of this subparagraph, social security benefits and all other relevant factors used to compute benefits shall be treated as remaining constant as of the current year for all years after such current year. (D) Subparagraphs (A), (B), and (C) shall not apply with respect to years of participation before the first plan year to which this section applies but a defined benefit plan satisfies the requirements of this subparagraph with respect to such years of participation only if the accrued benefit of any participant with respect to such years of participation is not less than the greater of - (i) his accrued benefit determined under the plan, as in effect from time to time prior to September 2, 1974, or (ii) an accrued benefit which is not less than one-half of the accrued benefit to which such participant would have been entitled if subparagraph (A), (B), or (C) applied with respect to such years of participation. (E) Notwithstanding subparagraphs (A), (B), and (C) of this paragraph, a plan shall not be treated as not satisfying the requirements of this paragraph solely because the accrual of benefits under the plan does not become effective until the employee has two continuous years of service. For purposes of this subparagraph, the term "year of service" has the meaning provided by section 1052(a)(3)(A) of this title. (F) Notwithstanding subparagraphs (A), (B), and (C), a defined benefit plan satisfies the requirements of this paragraph if such plan (i) is funded exclusively by the purchase of insurance contracts, and (ii) satisfies the requirements of paragraphs (2) and (3) of section 1081(b) of this title (relating to certain insurance contract plans), but only if an employee's accrued benefit as of any applicable date is not less than the cash surrender value his insurance contracts would have on such applicable date if the requirements of paragraphs (4), (5), and (6) of section 1081(b) of this title were satisfied. (G) Notwithstanding the preceding subparagraphs, a defined benefit plan shall be treated as not satisfying the requirements of this paragraph if the participant's accrued benefit is reduced on account of any increase in his age or service. The preceding sentence shall not apply to benefits under the plan commencing before benefits payable under title II of the Social Security Act [42 U.S.C. 401 et seq.] which benefits under the plan - (i) do not exceed social security benefits, and (ii) terminate when such social security benefits commence. (H)(i) Notwithstanding the preceding subparagraphs, a defined benefit plan shall be treated as not satisfying the requirements of this paragraph if, under the plan, an employee's benefit accrual is ceased, or the rate of an employee's benefit accrual is reduced, because of the attainment of any age. (ii) A plan shall not be treated as failing to meet the requirements of this subparagraph solely because the plan imposes (without regard to age) a limitation on the amount of benefits that the plan provides or a limitation on the number of years of service or years of participation which are taken into account for purposes of determining benefit accrual under the plan. (iii) In the case of any employee who, as of the end of any plan year under a defined benefit plan, has attained normal retirement age under such plan - (I) if distribution of benefits under such plan with respect to such employee has commenced as of the end of such plan year, then any requirement of this subparagraph for continued accrual of benefits under such plan with respect to such employee during such plan year shall be treated as satisfied to the extent of the actuarial equivalent of in-service distribution of benefits, and (II) if distribution of benefits under such plan with respect to such employee has not commenced as of the end of such year in accordance with section 1056(a)(3) of this title, and the payment of benefits under such plan with respect to such employee is not suspended during such plan year pursuant to section 1053(a)(3)(B) of this title, then any requirement of this subparagraph for continued accrual of benefits under such plan with respect to such employee during such plan year shall be treated as satisfied to the extent of any adjustment in the benefit payable under the plan during such plan year attributable to the delay in the distribution of benefits after the attainment of normal retirement age. The preceding provisions of this clause shall apply in accordance with regulations of the Secretary of the Treasury. Such regulations may provide for the application of the preceding provisions of this clause, in the case of any such employee, with respect to any period of time within a plan year. (iv) Clause (i) shall not apply with respect to any employee who is a highly compensated employee (within the meaning of section 414(q) of title 26) to the extent provided in regulations prescribed by the Secretary of the Treasury for purposes of precluding discrimination in favor of highly compensated employees within the meaning of subchapter D of chapter 1 of title 26. (v) A plan shall not be treated as failing to meet the requirements of clause (i) solely because the subsidized portion of any early retirement benefit is disregarded in determining benefit accruals. (vi) Any regulations prescribed by the Secretary of the Treasury pursuant to clause (v) of section 411(b)(1)(H) of title 26 shall apply with respect to the requirements of this subparagraph in the same manner and to the same extent as such regulations apply with respect to the requirements of such section 411(b)(1)(H). (2)(A) A defined contribution plan satisfies the requirements of this paragraph if, under the plan, allocations to the employee's account are not ceased, and the rate at which amounts are allocated to the employee's account is not reduced, because of the attainment of any age. (B) A plan shall not be treated as failing to meet the requirements of subparagraph (A) solely because the subsidized portion of any early retirement benefit is disregarded in determining benefit accruals. (C) Any regulations prescribed by the Secretary of the Treasury pursuant to subparagraphs (B) and (C) of section 411(b)(2) of title 26 shall apply with respect to the requirements of this paragraph in the same manner and to the same extent as such regulations apply with respect to the requirements of such section 411(b)(2). (3) A plan satisfies the requirements of this paragraph if - (A) in the case of a defined benefit plan, the plan requires separate accounting for the portion of each employee's accrued benefit derived from any voluntary employee contributions permitted under the plan; and (B) in the case of any plan which is not a defined benefit plan, the plan requires separate accounting for each employee's accrued benefit. (4)(A) For purposes of determining an employee's accrued benefit, the term "year of participation" means a period of service (beginning at the earliest date on which the employee is a participant in the plan and which is included in a period of service required to be taken into account under section 1052(b) of this title, determined without regard to section 1052(b)(5) of this title) as determined under regulations prescribed by the Secretary which provide for the calculation of such period on any reasonable and consistent basis. (B) For purposes of this paragraph, except as provided in subparagraph (C), in the case of any employee whose customary employment is less than full time, the calculation of such employee's service on any basis which provides less than a ratable portion of the accrued benefit to which he would be entitled under the plan if his customary employment were full time shall not be treated as made on a reasonable and consistent basis. (C) For purposes of this paragraph, in the case of any employee whose service is less than 1,000 hours during any calendar year, plan year or other 12-consecutive-month period designated by the plan (and not prohibited under regulations prescribed by the Secretary) the calculation of his period of service shall not be treated as not made on a reasonable and consistent basis merely because such service is not taken into account. (D) In the case of any seasonal industry where the customary period of employment is less than 1,000 hours during a calendar year, the term "year of participation" shall be such period as determined under regulations prescribed by the Secretary. (E) For purposes of this subsection in the case of any maritime industry, 125 days of service shall be treated as a year of participation. The Secretary may prescribe regulations to carry out the purposes of this subparagraph. (c) Employee's accrued benefits derived from employer and employee contributions (1) For purposes of this section and section 1053 of this title an employee's accrued benefit derived from employer contributions as of any applicable date is the excess (if any) of the accrued benefit for such employee as of such applicable date over the accrued benefit derived from contributions made by such employee as of such date. (2)(A) In the case of a plan other than a defined benefit plan, the accrued benefit derived from contributions made by an employee as of any applicable date is - (i) except as provided in clause (ii), the balance of the employee's separate account consisting only of his contributions and the income, expenses, gains, and losses attributable thereto, or (ii) if a separate account is not maintained with respect to an employee's contributions under such a plan, the amount which bears the same ratio to his total accrued benefit as the total amount of the employee's contributions (less withdrawals) bears to the sum of such contributions and the contributions made on his behalf by the employer (less withdrawals). (B) Defined benefit plans. - In the case of a defined benefit plan, the accrued benefit derived from contributions made by an employee as of any applicable date is the amount equal to the employee's accumulated contributions expressed as an annual benefit commencing at normal retirement age, using an interest rate which would be used under the plan under section 1055(g)(3) of this title (as of the determination date). (C) For purposes of this subsection, the term "accumulated contributions" means the total of - (i) all mandatory contributions made by the employee, (ii) interest (if any) under the plan to the end of the last plan year to which section 1053(a)(2) of this title does not apply (by reason of the applicable effective date), and (iii) interest on the sum of the amounts determined under clauses (i) and (ii) compounded annually - (I) at the rate of 120 percent of the Federal mid-term rate (as in effect under section 1274 of title 26 for the 1st month of a plan year for the period beginning with the 1st plan year to which subsection (a)(2) of this section applies by reason of the applicable effective date) and ending with the date on which the determination is being made, and (II) at the interest rate which would be used under the plan under section 1055(g)(3) of this title (as of the determination date) for the period beginning with the determination date and ending on the date on which the employee attains normal retirement age. For purposes of this subparagraph, the term "mandatory contributions" means amounts contributed to the plan by the employee which are required as a condition of employment, as a condition of participation in such plans, or as a condition of obtaining benefits under the plan attributable to employer contributions. (D) The Secretary of the Treasury is authorized to adjust by regulation the conversion factor described in subparagraph (B) from time to time as he may deem necessary. No such adjustment shall be effective for a plan year beginning before the expiration of 1 year after such adjustment is determined and published. (3) For purposes of this section, in the case of any defined benefit plan, if an employee's accrued benefit is to be determined as an amount other than an annual benefit commencing at normal retirement age, or if the accrued benefit derived from contributions made by an employee is to be determined with respect to a benefit other than an annual benefit in the form of a single life annuity (without ancillary benefits) commencing at normal retirement age, the employee's accrued benefit, or the accrued benefits derived from contributions made by an employee, as the case may be, shall be the actuarial equivalent of such benefit or amount determined under paragraph (1) or (2). (4) In the case of a defined benefit plan which permits voluntary employee contributions, the portion of an employee's accrued benefit derived from such contributions shall be treated as an accrued benefit derived from employee contributions under a plan other than a defined benefit plan. (d) Employee service which may be disregarded in determining employee's accrued benefits under plan Notwithstanding section 1053(b)(1) of this title, for purposes of determining the employee's accrued benefit under the plan, the plan may disregard service performed by the employee with respect to which he has received - (1) a distribution of the present value of his entire nonforfeitable benefit if such distribution was in an amount (not more than the dollar limit under section 1053(e)(1) of this title) permitted under regulations prescribed by the Secretary of the Treasury, or (2) a distribution of the present value of his nonforfeitable benefit attributable to such service which he elected to receive. Paragraph (1) shall apply only if such distribution was made on termination of the employee's participation in the plan. Paragraph (2) shall apply only if such distribution was made on termination of the employee's participation in the plan or under such other circumstances as may be provided under regulations prescribed by the Secretary of the Treasury. (e) Opportunity to repay full amount of distributions which have been reduced through disregarded employee service For purposes of determining the employee's accrued benefit, the plan shall not disregard service as provided in subsection (d) of this section unless the plan provides an opportunity for the participant to repay the full amount of a distribution described in subsection (d) of this section with, in the case of a defined benefit plan, interest at the rate determined for purposes of subsection (c)(2)(C) of this section and provides that upon such repayment the employee's accrued benefit shall be recomputed by taking into account service so disregarded. This subsection shall apply only in the case of a participant who - (1) received such a distribution in any plan year to which this section applies which distribution was less than the present value of his accrued benefit, (2) resumes employment covered under the plan, and (3) repays the full amount of such distribution with, in the case of a defined benefit plan, interest at the rate determined for purposes of subsection (c)(2)(C) of this section. The plan provision required under this subsection may provide that such repayment must be made (A) in the case of a withdrawal on account of separation from service, before the earlier of 5 years after the first date on which the participant is subsequently re-employed by the employer, or the close of the first period of 5 consecutive 1-year breaks in service commencing after the withdrawal; or (B) in the case of any other withdrawal, 5 years after the date of the withdrawal. (f) Employer treated as maintaining a plan For the purposes of this part, an employer shall be treated as maintaining a plan if any employee of such employer accrues benefits under such plan by reason of service with such employer. (g) Decrease of accrued benefits through amendment of plan (1) The accrued benefit of a participant under a plan may not be decreased by an amendment of the plan, other than an amendment described in section 1082(c)(8) or 1441 of this title. (2) For purposes of paragraph (1), a plan amendment which has the effect of - (A) eliminating or reducing an early retirement benefit or a retirement-type subsidy (as defined in regulations), or (B) eliminating an optional form of benefit, with respect to benefits attributable to service before the amendment shall be treated as reducing accrued benefits. In the case of a retirement-type subsidy, the preceding sentence shall apply only with respect to a participant who satisfies (either before or after the amendment) the preamendment conditions for the subsidy. The Secretary of the Treasury shall by regulations provide that this paragraph shall not apply to any plan amendment which reduces or eliminates benefits or subsidies which create significant burdens or complexities for the plan and plan participants, unless such amendment adversely affects the rights of any participant in a more than de minimis manner. The Secretary of the Treasury may by regulations provide that this subparagraph shall not apply to a plan amendment described in subparagraph (B) (other than a plan amendment having an effect described in subparagraph (A)). (3) For purposes of this subsection, any - (A) tax credit employee stock ownership plan (as defined in section 409(a) of title 26, or (B) employee stock ownership plan (as defined in section 4975(e)(7) of title 26), shall not be treated as failing to meet the requirements of this subsection merely because it modifies distribution options in a nondiscriminatory manner. (4)(A) A defined contribution plan (in this subparagraph referred to as the "transferee plan") shall not be treated as failing to meet the requirements of this subsection merely because the transferee plan does not provide some or all of the forms of distribution previously available under another defined contribution plan (in this subparagraph referred to as the "transferor plan") to the extent that - (i) the forms of distribution previously available under the transferor plan applied to the account of a participant or beneficiary under the transferor plan that was transferred from the transferor plan to the transferee plan pursuant to a direct transfer rather than pursuant to a distribution from the transferor plan; (ii) the terms of both the transferor plan and the transferee plan authorize the transfer described in clause (i); (iii) the transfer described in clause (i) was made pursuant to a voluntary election by the participant or beneficiary whose account was transferred to the transferee plan; (iv) the election described in clause (iii) was made after the participant or beneficiary received a notice describing the consequences of making the election; and (v) the transferee plan allows the participant or beneficiary described in clause (iii) to receive any distribution to which the participant or beneficiary is entitled under the transferee plan in the form of a single sum distribution. (B) Subparagraph (A) shall apply to plan mergers and other transactions having the effect of a direct transfer, including consolidations of benefits attributable to different employers within a multiple employer plan. (5) Except to the extent provided in regulations promulgated by the Secretary of the Treasury, a defined contribution plan shall not be treated as failing to meet the requirements of this subsection merely because of the elimination of a form of distribution previously available thereunder. This paragraph shall not apply to the elimination of a form of distribution with respect to any participant unless - (A) a single sum payment is available to such participant at the same time or times as the form of distribution being eliminated; and (B) such single sum payment is based on the same or greater portion of the participant's account as the form of distribution being eliminated. (h) Notice of significant reduction in benefit accruals (1) An applicable pension plan may not be amended so as to provide for a significant reduction in the rate of future benefit accrual unless the plan administrator provides the notice described in paragraph (2) to each applicable individual (and to each employee organization representing applicable individuals). (2) The notice required by paragraph (1) shall be written in a manner calculated to be understood by the average plan participant and shall provide sufficient information (as determined in accordance with regulations prescribed by the Secretary of the Treasury) to allow applicable individuals to understand the effect of the plan amendment. The Secretary of the Treasury may provide a simplified form of notice for, or exempt from any notice requirement, a plan - (A) which has fewer than 100 participants who have accrued a benefit under the plan, or (B) which offers participants the option to choose between the new benefit formula and the old benefit formula. (3) Except as provided in regulations prescribed by the Secretary of the Treasury, the notice required by paragraph (1) shall be provided within a reasonable time before the effective date of the plan amendment. (4) Any notice under paragraph (1) may be provided to a person designated, in writing, by the person to which it would otherwise be provided. (5) A plan shall not be treated as failing to meet the requirements of paragraph (1) merely because notice is provided before the adoption of the plan amendment if no material modification of the amendment occurs before the amendment is adopted. (6)(A) In the case of any egregious failure to meet any requirement of this subsection with respect to any plan amendment, the provisions of the applicable pension plan shall be applied as if such plan amendment entitled all applicable individuals to the greater of - (i) the benefits to which they would have been entitled without regard to such amendment, or (ii) the benefits under the plan with regard to such amendment. (B) For purposes of subparagraph (A), there is an egregious failure to meet the requirements of this subsection if such failure is within the control of the plan sponsor and is - (i) an intentional failure (including any failure to promptly provide the required notice or information after the plan administrator discovers an unintentional failure to meet the requirements of this subsection), (ii) a failure to provide most of the individuals with most of the information they are entitled to receive under this subsection, or (iii) a failure which is determined to be egregious under regulations prescribed by the Secretary of the Treasury. (7) The Secretary of the Treasury may by regulations allow any notice under this subsection to be provided by using new technologies. (8) For purposes of this subsection - (A) The term "applicable individual" means, with respect to any plan amendment - (i) each participant in the plan; and (ii) any beneficiary who is an alternate payee (within the meaning of section 1056(d)(3)(K) of this title) under an applicable qualified domestic relations order (within the meaning of section 1056(d)(3)(B)(i) of this title), whose rate of future benefit accrual under the plan may reasonably be expected to be significantly reduced by such plan amendment. (B) The term "applicable pension plan" means - (i) any defined benefit plan; or (ii) an individual account plan which is subject to the funding standards of section 412 of title 26. (9) For purposes of this subsection, a plan amendment which eliminates or reduces any early retirement benefit or retirement-type subsidy (within the meaning of subsection (g)(2)(A) of this section) shall be treated as having the effect of reducing the rate of future benefit accrual. (i) Prohibition on benefit increases where plan sponsor is in bankruptcy (1) In the case of a plan described in paragraph (3) which is maintained by an employer that is a debtor in a case under title 11 or similar Federal or State law, no amendment of the plan which increases the liabilities of the plan by reason of - (A) any increase in benefits, (B) any change in the accrual of benefits, or (C) any change in the rate at which benefits become nonforfeitable under the plan, with respect to employees of the debtor, shall be effective prior to the effective date of such employer's plan of reorganization. (2) Paragraph (1) shall not apply to any plan amendment that - (A) the Secretary of the Treasury determines to be reasonable and that provides for only de minimis increases in the liabilities of the plan with respect to employees of the debtor, (B) only repeals an amendment described in section 1082(c)(8) of this title, (C) is required as a condition of qualification under part I of subchapter D of chapter 1 of title 26, or (D) was adopted prior to, or pursuant to a collective bargaining agreement entered into prior to, the date on which the employer became a debtor in a case under title 11 or similar Federal or State law. (3) This subsection shall apply only to plans (other than multiemployer plans) covered under section 1321 of this title for which the funded current liability percentage (within the meaning of section 1082(d)(8) of this title) is less than 100 percent after taking into account the effect of the amendment. (4) For purposes of this subsection, the term "employer" has the meaning set forth in section 1082(c)(11)(A) of this title, without regard to section 1082(c)(11)(B) of this title. (j) Cross reference For special rules relating to plan provisions adopted to preclude discrimination, see section 1053(c)(2) of this title. -SOURCE- (Pub. L. 93-406, title I, Sec. 204, Sept. 2, 1974, 88 Stat. 858; Pub. L. 98-397, title I, Secs. 102(e)(3), (f), 105(b), title III, Sec. 301(a)(2), Aug. 23, 1984, 98 Stat. 1429, 1436, 1451; Pub. L. 99-272, title XI, Sec. 11006(a), Apr. 7, 1986, 100 Stat. 243; Pub. L. 99-509, title IX, Sec. 9202(a), Oct. 21, 1986, 100 Stat. 1975; Pub. L. 99-514, title XI, Sec. 1113(e)(4)(B), title XVIII, Secs. 1879(u)(1), 1898(a)(4)(B)(ii), (f)(1)(B), (2), Oct. 22, 1986, 100 Stat. 2448, 2913, 2944, 2956; Pub. L. 100-203, title IX, Sec. 9346(a), Dec. 22, 1987, 101 Stat. 1330-374; Pub. L. 101-239, title VII, Secs. 7862(b)(1)(A), (2), 7871(a)(1), (3), 7881(m)(2)(A)-(C), 7891(a)(1), 7894(c)(4)-(6), Dec. 19, 1989, 103 Stat. 2432, 2434, 2435, 2444, 2445, 2449; Pub. L. 103-465, title VII, Sec. 766(a), Dec. 8, 1994, 108 Stat. 5036; Pub. L. 105-34, title X, Sec. 1071(b)(2), Aug. 5, 1997, 111 Stat. 948; Pub. L. 107-16, title VI, Secs. 645(a)(2), (b)(2), 659(b), June 7, 2001, 115 Stat. 124, 125, 139; Pub. L. 107-147, title IV, Sec. 411(u)(2), Mar. 9, 2002, 116 Stat. 52.) -STATAMEND- AMENDMENT OF SECTION For termination of amendment by section 901 of Pub. L. 107-16, see Effective and Termination Dates of 2001 Amendment note below. -REFTEXT- REFERENCES IN TEXT The Social Security Act, referred to in subsec. (b)(1)(G), is act Aug. 14, 1935, ch. 531, 49 Stat. 620, as amended. Title II of the Social Security Act is classified generally to subchapter II (Sec. 401 et seq.) 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. -MISC1- AMENDMENTS 2002 - Subsec. (h)(9). Pub. L. 107-147 struck out "significantly" before "reduces" and before "reducing". 2001 - Subsec. (g)(2). Pub. L. 107-16, Secs. 645(b)(2), 901, temporarily inserted after second sentence "The Secretary of the Treasury shall by regulations provide that this paragraph shall not apply to any plan amendment which reduces or eliminates benefits or subsidies which create significant burdens or complexities for the plan and plan participants, unless such amendment adversely affects the rights of any participant in a more than de minimis manner." See Effective and Termination Dates of 2001 Amendment note below. Subsec. (g)(4), (5). Pub. L. 107-16, Secs. 645(a)(2), 901, temporarily added pars. (4) and (5). See Effective and Termination Dates of 2001 Amendment note below. Subsec. (h). Pub. L. 107-16, Secs. 659(b), 901, temporarily amended subsec. (h) generally. Prior to amendment, subsec. (h) read as follows: "(1) A plan described in paragraph (2) may not be amended so as to provide for a significant reduction in the rate of future benefit accrual, unless, after adoption of the plan amendment and not less than 15 days before the effective date of the plan amendment, the plan administrator provides a written notice, setting forth the plan amendment and its effective date, to - "(A) each participant in the plan, "(B) each beneficiary who is an alternate payee (within the meaning of section 1056(d)(3)(K) of this title) under an applicable qualified domestic relations order (within the meaning of section 1056(d)(3)(B)(i) of this title), and "(C) each employee organization representing participants in the plan, except that such notice shall instead be provided to a person designated, in writing, to receive such notice on behalf of any person referred to in subparagraph (A), (B), or (C). "(2) A plan is described in this paragraph if such plan is - "(A) a defined benefit plan, or "(B) an individual account plan which is subject to the funding standards of section 1082 of this title." See Effective and Termination Dates of 2001 Amendment note below. 1997 - Subsec. (d)(1). Pub. L. 105-34 substituted "the dollar limit under section 1053(e)(1) of this title" for "$3,500". 1994 - Subsecs. (i), (j). Pub. L. 103-465 added subsec. (i) and redesignated former subsec. (i) as (j). 1989 - Subsec. (b)(1)(A). Pub. L. 101-239, Sec. 7894(c)(4), substituted "subparagraph" for "suparagraph" in last sentence. Subsec. (b)(1)(E). Pub. L. 101-239, Sec. 7894(c)(5), substituted "term 'year of service' " for "term 'years of service' ". Subsec. (b)(2)(B). Pub. L. 101-239, Sec. 7871(a)(1), redesignated subpar. (C) as (B) and struck out former subpar. (B) which read as follows: "Subparagraph (A) shall not apply with respect to any employee who is a highly compensated employee (within the meaning of section 414(q) of title 26) to the extent provided in regulations prescribed by the Secretary of the Treasury for purposes of precluding discrimination in favor of highly compensated employees within the meaning of subchapter D of chapter 1 of title 26." Subsec. (b)(2)(C). Pub. L. 101-239, Sec. 7871(a)(3), substituted "subparagraphs (B) and (C)" for "subparagraphs (C) and (D)". Pub. L. 101-239, Sec. 7871(a)(1), redesignated subpar. (D) as (C). Former subpar. (C) redesignated (B). Subsec. (b)(2)(D). Pub. L. 101-239, Sec. 7871(a)(1), redesignated subpar. (D) as (C). Subsec. (c)(2)(B). Pub. L. 101-239, Sec. 7881(m)(2)(B), inserted heading and amended text generally. Prior to amendment, text read as follows: "(i) In the case of a defined benefit plan providing an annual benefit in the form of a single life annuity (without ancillary benefits) commencing at normal retirement age, the accrued benefit derived from contributions made by an employee as of any applicable date is the annual benefit equal to the employee's accumulated contributions multiplied by the appropriate conversion factor. "(ii) For purposes of clause (i), the term 'appropriate conversion factor' means the factor necessary to convert an amount equal to the accumulated contributions to a single life annuity (without ancillary benefits) commencing at normal retirement age and shall be 10 percent for a normal retirement age of 65 years. For other normal retirement ages the conversion factor shall be determined in accordance with regulations prescribed by the Secretary of the Treasury or his delegate." Subsec. (c)(2)(C)(iii). Pub. L. 101-239, Sec. 7881(m)(2)(A), amended cl. (iii) generally. Prior to amendment, cl. (iii) read as follows: "interest on the sum of the amounts determined under clauses (i) and (ii) compounded annually at the rate of 120 percent of the Federal mid-term rate (as in effect under section 1274 of title 26 for the 1st month of a plan year) from the beginning of the first plan year to which section 1053(a)(2) of this title applies (by reason of the applicable effective date) to the date upon which the employee would attain normal retirement age." Subsec. (c)(2)(E). Pub. L. 101-239, Sec. 7881(m)(2)(C), struck out subpar. (E) which read as follows: "The accrued benefit derived from employee contributions shall not exceed the greater of - "(i) the employee's accrued benefit under the plan, or "(ii) the accrued benefit derived from employee contributions determined as though the amounts calculated under clauses (ii) and (iii) of subparagraph (C) were zero." Subsec. (d). Pub. L. 101-239, Sec. 7894(c)(6), removed the indentation of the term "Paragraph" where first appearing in concluding provisions. Subsec. (g)(3)(A). Pub. L. 101-239, Sec. 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. (h). Pub. L. 101-239, Sec. 7862(b)(1)(A), made technical correction to directory language of Pub. L. 99-514, Sec. 1879(u)(1), see 1986 Amendment note below. Subsec. (h)(2). Pub. L. 101-239, Sec. 7862(b)(2), adjusted left-hand margin of introductory provisions to full measure. 1987 - Subsec. (c)(2)(C)(iii). Pub. L. 100-203, Sec. 9346(a)(1), substituted "120 percent of the Federal mid-term rate (as in effect under section 1274 of title 26 for the 1st month of a plan year)" for "5 percent per annum". Subsec. (c)(2)(D). Pub. L. 100-203, Sec. 9346(a)(2), struck out ", the rate of interest described in clause (iii) of subparagraph (C), or both," before "from time to time" in first sentence and struck out second sentence which read as follows: "The rate of interest shall bear the relationship to 5 percent which the Secretary of the Treasury determines to be comparable to the relationship which the long-term money rates and investment yields for the last period of 10 calendar years ending at least 12 months before the beginning of the plan year bear to the long-term money rates and investment yields for the 10-calendar year period 1964 through 1973." 1986 - Subsec. (a). Pub. L. 99-509, Sec. 9202(a)(1), amended subsec. (a) generally. Prior to amendment, subsec. (a) read as follows: "Each pension plan shall satisfy the requirements of subsection (b)(2) of this section, and in the case of a defined benefit plan shall also satisfy the requirements of subsection (b)(1) of this section." Subsec. (b)(1)(H). Pub. L. 99-509, Sec. 9202(a)(2), added subpar. (H). Subsec. (b)(2) to (4). Pub. L. 99-509, Sec. 9202(a)(3), added par. (2) and redesignated former pars. (2) and (3) as (3) and (4), respectively. Subsec. (e). Pub. L. 99-514, Sec. 1898(a)(4)(B)(ii), inserted last sentence and struck out former last sentence which read as follows: "In the case of a defined contribution plan, the plan provision required under this subsection may provide that such repayment must be made before the participant has 5 consecutive 1-year breaks in service commencing after such withdrawal". Subsec. (g)(1). Pub. L. 99-514, Sec. 1898(f)(2), inserted reference to section 1441. Subsec. (g)(3). Pub. L. 99-514, Sec. 1898(f)(1)(B), added par. (3). Subsec. (h). Pub. L. 99-514, Sec. 1879(u)(1), as amended by Pub. L. 101-239, Sec. 7862(b)(1)(A), designated existing provisions as par. (1), substituted "plan described in paragraph (2)" for "single-employer plan", redesignated former pars. (1) to (3) as subpars. (A) to (C), respectively, substituted "subparagraph (A), (B), or (C)" for "paragraph (1), (2), or (3)" in concluding provisions, and added par. (2). Pub. L. 99-272 added subsec. (h). Former subsec. (h) redesignated (i). Subsec. (i). Pub. L. 99-514, Sec. 1113(e)(4)(B), amended subsec. (i) generally, striking out reference to class year plans under section 1053(c)(3) of this title. Pub. L. 99-272 redesignated former subsec. (h) as (i). 1984 - Subsec. (b)(3)(A). Pub. L. 98-397, Sec. 102(e)(3), inserted ", determined without regard to section 1052(b)(5) of this title" after "section 1052(b) of this title". Subsec. (d)(1). Pub. L. 98-397, Sec. 105(b), substituted "$3,500" for "$1,750". Subsec. (e). Pub. L. 98-397, Sec. 102(f), substituted "5 consecutive 1-year breaks in service" for "any 1-year break in service". Subsec. (g). Pub. L. 98-397, Sec. 301(a)(2), designated existing provisions as par. (1) and added par. (2). EFFECTIVE DATE OF 2002 AMENDMENT Amendment by Pub. L. 107-147 effective as if included in the provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001, Pub. L. 107-16, to which such amendment relates, see section 411(x) of Pub. L. 107-147, set out as a note under section 25B of Title 26, Internal Revenue Code. EFFECTIVE AND TERMINATION DATES OF 2001 AMENDMENT Amendment by section 645(a)(2) of Pub. L. 107-16 applicable to years beginning after Dec. 31, 2001, see section 645(a)(3) of Pub. L. 107-16, set out as a note under section 411 of Title 26, Internal Revenue Code. Amendment by section 659(b) of Pub. L. 107-16 applicable to plan amendments taking effect on or after June 7, 2001, with transition provisions and special notice rule, see section 659(c) of Pub. L. 107-16, set out as a note under section 4980F of Title 26, Internal Revenue Code. Amendment by Pub. L. 107-16 inapplicable to taxable, plan, or limitation years beginning after Dec. 31, 2010, and the Employee Retirement Income Security Act of 1974, Pub. L. 93-406, to be applied and administered to such years as if such amendment had never been enacted, see section 901 of Pub. L. 107-16, set out as a note under section 1 of Title 26, Internal Revenue Code. EFFECTIVE DATE OF 1997 AMENDMENT Amendment by Pub. L. 105-34 applicable to plan years beginning after Aug. 5, 1997, see section 1071(c) of Pub. L. 105-34, set out as a note under section 411 of Title 26, Internal Revenue Code. EFFECTIVE DATE OF 1994 AMENDMENT Amendment by Pub. L. 103-465 applicable to plan amendments adopted on or after Dec. 8, 1994, see section 766(d) of Pub. L. 103-465, set out as a note under section 401 of Title 26, Internal Revenue Code. EFFECTIVE DATE OF 1989 AMENDMENT Amendment by section 7862(b)(1)(A), (2) of Pub. L. 101-239 effective as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99-514, to which such amendment relates, see section 7863 of Pub. L. 101-239, set out as a note under section 106 of Title 26, Internal Revenue Code. Amendment by section 7871(a)(1), (3) of Pub. L. 101-239 effective as if included in the amendments made by section 9202 of the Omnibus Budget Reconciliation Act of 1986, Pub. L. 99-509, see section 7871(a)(4) of Pub. L. 101-239, set out as a note under section 411 of Title 26. Amendment by section 7881(m)(2)(A)-(C) 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, Secs. 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. 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(c)(4)-(6) 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 Section 9346(c) of Pub. L. 100-203 provided that: "(1) In general. - The amendments made by this section [amending this section and section 411 of Title 26, Internal Revenue Code] shall apply to plan years beginning after December 31, 1987. "(2) Plan amendments not required until january 1, 1989. - If any amendment made by this section requires an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after January 1, 1989, if - "(A) during the period after such amendments made by this section take effect and before such first plan year, the plan is operated in accordance with the requirements of such amendments or in accordance with an amendment prescribed by the Secretary of the Treasury and adopted by the plan, and "(B) such plan amendment applies retroactively to the period after such amendments take effect and such first plan year. A plan shall not be treated as failing to provide definitely determinable benefits or contributions, or to be operated in accordance with the provisions of the plan, merely because it operates in accordance with this subsection." EFFECTIVE DATE OF 1986 AMENDMENTS Amendment by section 1113(e)(4)(B) of Pub. L. 99-514 applicable to plan years beginning after Dec. 31, 1988, with special rule for plans maintained pursuant to collective bargaining agreements ratified before Mar. 1, 1986, and not applicable to employees who do not have 1 hour of service in any plan year to which the amendment applies, see section 1113(f) of Pub. L. 99-514, as amended, set out as a note under section 411 of Title 26, Internal Revenue Code. Section 1879(u)(5), formerly section 1879(u)(4), of Pub. L. 99-514, as redesignated and amended by Pub. L. 101-239, title VII, Sec. 7862(b)(1)(A), (B), Dec. 19, 1989, 103 Stat. 2432, provided that: "(A) General rule. - Except as provided in subparagraph (B), the preceding provisions of this subsection [amending this section and sections 1002 and 1349 of this title] shall be effective as if such provisions were included in the enactment of the Single-Employer Pension Plan Amendments Act of 1986 [Pub. L. 99-272, title XI]. "(B) Special rule. - Subparagraph (B) of section 204(h)(2) of the Employee Retirement Income Security Act of 1974 (as amended by paragraph (1)) [29 U.S.C. 1054(h)(2)(B)] shall apply only with respect to plan amendments adopted on or after the date of the enactment of this Act [Oct. 22, 1986]." Amendment by section 1898(a)(4)(B)(ii), (f)(1)(B), (2) of Pub. L. 99-514 effective as if included in the provision of the Retirement Equity Act of 1984, Pub. L. 98-397, to which such amendment relates, except as otherwise provided, see section 1898(j) of Pub. L. 99-514, set out as a note under section 401 of this title. Amendment by Pub. L. 99-509 applicable only with respect to plan years beginning on or after Jan. 1, 1988, and only to employees who have 1 hour of service in any plan year to which amendment applies, with special rule for collectively bargained plans, see section 9204 of Pub. L. 99-509, set out as an Effective and Termination Dates of 1986 Amendments note under section 623 of this title. Section 11006(b) of Pub. L. 99-272 provided that: "The amendments made by subsection (a) [amending this section] shall apply with respect to plan amendments adopted on or after January 1, 1986, except that, in the case of plan amendments adopted on or after January 1, 1986, and on or before the date of the enactment of this Act [Apr. 7, 1986], the requirements of section 204(h) of the Employee Retirement Income Security Act of 1974 [subsec. (h) of this section] (as added by this section) shall be treated as met if the written notice required under such section 204(h) is provided before 60 days after the date of the enactment of this Act." EFFECTIVE DATE OF 1984 AMENDMENT Amendment by sections 102(e)(3), (f), and 105(b) of Pub. L. 98-397 applicable to plan years beginning after Dec. 31, 1984, except as otherwise provided, see sections 302 and 303 of Pub. L. 98-397, set out as a note under section 1001 of this title. Amendment by section 301(a)(2) of Pub. L. 98-397 not applicable to the termination of a certain defined benefit plan, see section 303(f) of Pub. L. 98-397. REGULATIONS Secretary of Labor, Secretary of the Treasury, and Equal Employment Opportunity Commission each to issue before Feb. 1, 1988, final regulations to carry out amendments made by Pub. L. 99-509, see section 9204 of Pub. L. 99-509, set out as an Effective and Termination Dates of 1986 Amendment note under section 623 of this title. Secretary authorized, effective Sept. 2, 1974, to promulgate regulations wherever provisions of this subchapter call for the promulgation of regulations, see section 1031 of this title. PLAN AMENDMENTS REFLECTING AMENDMENTS BY SECTION 7881(M) OF PUB. L. 101-239 NOT TREATED AS REDUCING ACCRUED BENEFIT Section 7881(m)(3) of Pub. L. 101-239 provided that:"If - "(A) during the period beginning December 22, 1987, and ending June 21, 1988, a plan was amended to reflect the amendments made by section 9346 of the Pension Protection Act [Pub. L. 100-203, amending this section and section 411 of Title 26, Internal Revenue Code], and "(B) such plan is amended to reflect the amendments made by this subsection [amending this section, section 1002 of this title, and section 411 of Title 26], any plan amendment described in subparagraph (B) shall not be treated as reducing accrued benefits for purposes of section 411(d)(6) of the Internal Revenue Code of 1986 [section 411(d)(6) of Title 26] or section 204(g) of ERISA [subsec. (g) of this section]." PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989 For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or title XVIII [Secs. 1800-1899A] of Pub. L. 99-514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. L. 99-514, as amended, set out as a note under section 401 of Title 26, Internal Revenue Code. For provisions directing that if any amendments made by Pub. L. 99-509 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 9204 of Pub. L. 99-509, set out as an Effective and Termination Dates of 1986 Amendment note under section 623 of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 1002, 1053, 1056, 1057, 1060, 1061, 1322, 1425, 1426, 1441 of this title. -End- -CITE- 29 USC Sec. 1055 01/06/03 -EXPCITE- TITLE 29 - LABOR CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS Subtitle B - Regulatory Provisions part 2 - participation and vesting -HEAD- Sec. 1055. Requirement of joint and survivor annuity and preretirement survivor annuity -STATUTE- (a) Required contents for applicable plans Each pension plan to which this section applies shall provide that - (1) in the case of a vested participant who does not die before the annuity starting date, the accrued benefit payable to such participant shall be provided in the form of a qualified joint and survivor annuity, and (2) in the case of a vested participant who dies before the annuity starting date and who has a surviving spouse, a qualified preretirement survivor annuity shall be provided to the surviving spouse of such participant. (b) Applicable plans (1) This section shall apply to - (A) any defined benefit plan, (B) any individual account plan which is subject to the funding standards of section 1082 of this title, and (C) any participant under any other individual account plan unless - (i) such plan provides that the participant's nonforfeitable accrued benefit (reduced by any security interest held by the plan by reason of a loan outstanding to such participant) is payable in full, on the death of the participant, to the participant's surviving spouse (or, if there is no surviving spouse or the surviving spouse consents in the manner required under subsection (c)(2) of this section, to a designated beneficiary), (ii) such participant does not elect the payment of benefits in the form of a life annuity, and (iii) with respect to such participant, such plan is not a direct or indirect transferee (in a transfer after December 31, 1984) of a plan which is described in subparagraph (A) or (B) or to which this clause applied with respect to the participant. Clause (iii) of subparagraph (C) shall apply only with respect to the transferred assets (and income therefrom) if the plan separately accounts for such assets and any income therefrom. (2)(A) In the case of - (i) a tax credit employee stock ownership plan (as defined in section 409(a) of title 26), or (ii) an employee stock ownership plan (as defined in section 4975(e)(7) of title 26), subsection (a) of this section shall not apply to that portion of the employee's accrued benefit to which the requirements of section 409(h) of title 26 apply. (B) Subparagraph (A) shall not apply with respect to any participant unless the requirements of clause (!1) (i), (ii), and (iii) of paragraph (1)(C) are met with respect to such participant. (4) (!2) This section shall not apply to a plan which the Secretary of the Treasury or his delegate has determined is a plan described in section 404(c) of title 26 (or a continuation thereof) in which participation is substantially limited to individuals who, before January 1, 1976, ceased employment covered by the plan. (4) (!2) A plan shall not be treated as failing to meet the requirements of paragraph (1)(C) or (2) merely because the plan provides that benefits will not be payable to the surviving spouse of the participant unless the participant and such spouse had been married throughout the 1-year period ending on the earlier of the participant's annuity starting date or the date of the participant's death. (c) Plans meeting requirements of section (1) A plan meets the requirements of this section only if - (A) under the plan, each participant - (i) may elect at any time during the applicable election period to waive the qualified joint and survivor annuity form of benefit or the qualified preretirement survivor annuity form of benefit (or both), and (ii) may revoke any such election at any time during the applicable election period, and (B) the plan meets the requirements of paragraphs (2), (3), and (4). (2) Each plan shall provide that an election under paragraph (1)(A)(i) shall not take effect unless - (A)(i) the spouse of the participant consents in writing to such election, (ii) such election designates a beneficiary (or a form of benefits) which may not be changed without spousal consent (or the consent of the spouse expressly permits designations by the participant without any requirement of further consent by the spouse), and (iii) the spouse's consent acknowledges the effect of such election and is witnessed by a plan representative or a notary public, or (B) it is established to the satisfaction of a plan representative that the consent required under subparagraph (A) may not be obtained because there is no spouse, because the spouse cannot be located, or because of such other circumstances as the Secretary of the Treasury may by regulations prescribe. Any consent by a spouse (or establishment that the consent of a spouse may not be obtained) under the preceding sentence shall be effective only with respect to such spouse. (3)(A) Each plan shall provide to each participant, within a reasonable period of time before the annuity starting date (and consistent with such regulations as the Secretary of the Treasury may prescribe) a written explanation of - (i) the terms and conditions of the qualified joint and survivor annuity, (ii) the participant's right to make, and the effect of, an election under paragraph (1) to waive the joint and survivor annuity form of benefit, (iii) the rights of the participant's spouse under paragraph (2), and (iv) the right to make, and the effect of, a revocation of an election under paragraph (1). (B)(i) Each plan shall provide to each participant, within the applicable period with respect to such participant (and consistent with such regulations as the Secretary may prescribe), a written explanation with respect to the qualified preretirement survivor annuity comparable to that required under subparagraph (A). (ii) For purposes of clause (i), the term "applicable period" means, with respect to a participant, whichever of the following periods ends last: (I) The period beginning with the first day of the plan year in which the participant attains age 32 and ending with the close of the plan year preceding the plan year in which the participant attains age 35. (II) A reasonable period after the individual becomes a participant. (III) A reasonable period ending after paragraph (5) ceases to apply to the participant. (IV) A reasonable period ending after this section applies to the participant. In the case of a participant who separates from service before attaining age 35, the applicable period shall be a reasonable period after separation. (4) Each plan shall provide that, if this section applies to a participant when part or all of the participant's accrued benefit is to be used as security for a loan, no portion of the participant's accrued benefit may be used as security for such loan unless - (A) the spouse of the participant (if any) consents in writing to such use during the 90-day period ending on the date on which the loan is to be so secured, and (B) requirements comparable to the requirements of paragraph (2) are met with respect to such consent. (5)(A) The requirements of this subsection shall not apply with respect to the qualified joint and survivor annuity form of benefit or the qualified preretirement survivor annuity form of benefit, as the case may be, if such benefit may not be waived (or another beneficiary selected) and if the plan fully subsidizes the costs of such benefit. (B) For purposes of subparagraph (A), a plan fully subsidizes the costs of a benefit if under the plan the failure to waive such benefit by a participant would not result in a decrease in any plan benefits with respect to such participant and would not result in increased contributions from such participant. (6) If a plan fiduciary acts in accordance with part 4 of this subtitle in - (A) relying on a consent or revocation referred to in paragraph (1)(A), or (B) making a determination under paragraph (2), then such consent, revocation, or determination shall be treated as valid for purposes of discharging the plan from liability to the extent of payments made pursuant to such Act. (7) For purposes of this subsection, the term "applicable election period" means - (A) in the case of an election to waive the qualified joint and survivor annuity form of benefit, the 90-day period ending on the annuity starting date, or (B) in the case of an election to waive the qualified preretirement survivor annuity, the period which begins on the first day of the plan year in which the participant attains age 35 and ends on the date of the participant's death. In the case of a participant who is separated from service, the applicable election period under subparagraph (B) with respect to benefits accrued before the date of such separation from service shall not begin later than such date. (8) Notwithstanding any other provision of this subsection - (A)(i) A plan may provide the written explanation described in paragraph (3)(A) after the annuity starting date. In any case to which this subparagraph applies, the applicable election period under paragraph (7) shall not end before the 30th day after the date on which such explanation is provided. (ii) The Secretary of the Treasury may by regulations limit the application of clause (i), except that such regulations may not limit the period of time by which the annuity starting date precedes the provision of the written explanation other than by providing that the annuity starting date may not be earlier than termination of employment. (B) A plan may permit a participant to elect (with any applicable spousal consent) to waive any requirement that the written explanation be provided at least 30 days before the annuity starting date (or to waive the 30-day requirement under subparagraph (A)) if the distribution commences more than 7 days after such explanation is provided. (d) "Qualified joint and survivor annuity" defined For purposes of this section, the term "qualified joint and survivor annuity" means an annuity - (1) for the life of the participant with a survivor annuity for the life of the spouse which is not less than 50 percent of (and is not greater than 100 percent of) the amount of the annuity which is payable during the joint lives of the participant and the spouse, and (2) which is the actuarial equivalent of a single annuity for the life of the participant. Such term also includes any annuity in a form having the effect of an annuity described in the preceding sentence. (e) "Qualified preretirement survivor annuity" defined For purposes of this section - (1) Except as provided in paragraph (2), the term "qualified preretirement survivor annuity" means a survivor annuity for the life of the surviving spouse of the participant if - (A) the payments to the surviving spouse under such annuity are not less than the amounts which would be payable as a survivor annuity under the qualified joint and survivor annuity under the plan (or the actuarial equivalent thereof) if - (i) in the case of a participant who dies after the date on which the participant attained the earliest retirement age, such participant had retired with an immediate qualified joint and survivor annuity on the day before the participant's date of death, or (ii) in the case of a participant who dies on or before the date on which the participant would have attained the earliest retirement age, such participant had - (I) separated from service on the date of death, (II) survived to the earliest retirement age, (III) retired with an immediate qualified joint and survivor annuity at the earliest retirement age, and (IV) died on the day after the day on which such participant would have attained the earliest retirement age, and (B) under the plan, the earliest period for which the surviving spouse may receive a payment under such annuity is not later than the month in which the participant would have attained the earliest retirement age under the plan. In the case of an individual who separated from service before the date of such individual's death, subparagraph (A)(ii)(I) shall not apply. (2) In the case of any individual account plan or participant described in subparagraph (B) or (C) of subsection (b)(1) of this section, the term "qualified preretirement survivor annuity" means an annuity for the life of the surviving spouse the actuarial equivalent of which is not less than 50 percent of the portion of the account balance of the participant (as of the date of death) to which the participant had a nonforfeitable right (within the meaning of section 1053 of this title). (3) For purposes of paragraphs (1) and (2), any security interest held by the plan by reason of a loan outstanding to the participant shall be taken into account in determining the amount of the qualified preretirement survivor annuity. (f) Marriage requirements for plan (1) Except as provided in paragraph (2), a plan may provide that a qualified joint and survivor annuity (or a qualified preretirement survivor annuity) will not be provided unless the participant and spouse had been married throughout the 1-year period ending on the earlier of - (A) the participant's annuity starting date, or (B) the date of the participant's death. (2) For purposes of paragraph (1), if - (A) a participant marries within 1 year before the annuity starting date, and (B) the participant and the participant's spouse in such marriage have been married for at least a 1-year period ending on or before the date of the participant's death, such participant and such spouse shall be treated as having been married throughout the 1-year period ending on the participant's annuity starting date. (g) Distribution of present value of annuity; written consent; determination of present value (1) A plan may provide that the present value of a qualified joint and survivor annuity or a qualified preretirement survivor annuity will be immediately distributed if such value does not exceed the amount that can be distributed without the participant's consent under section 1053(e) of this title. No distribution may be made under the preceding sentence after the annuity starting date unless the participant and the spouse of the participant (or where the participant has died, the surviving spouse) consent in writing to such distribution. (2) If - (A) the present value of the qualified joint and survivor annuity or the qualified preretirement survivor annuity exceeds the amount that can be distributed without the participant's consent under section 1053(e) of this title, and (B) the participant and the spouse of the participant (or where the participant has died, the surviving spouse) consent in writing to the distribution, the plan may immediately distribute the present value of such annuity. (3) Determination of present value. - (A) In general. - (i) Present value. - Except as provided in subparagraph (B), for purposes of paragraphs (1) and (2), the present value shall not be less than the present value calculated by using the applicable mortality table and the applicable interest rate. (ii) Definitions. - For purposes of clause (i) - (I) Applicable mortality table. - The term "applicable mortality table" means the table prescribed by the Secretary of the Treasury. Such table shall be based on the prevailing commissioners' standard table (described in section 807(d)(5)(A) of title 26) used to determine reserves for group annuity contracts issued on the date as of which present value is being determined (without regard to any other subparagraph of section 807(d)(5) of such title). (II) Applicable interest rate. - The term "applicable interest rate" means the annual rate of interest on 30-year Treasury securities for the month before the date of distribution or such other time as the Secretary of the Treasury may by regulations prescribe. (B) Exception. - In the case of a distribution from a plan that was adopted and in effect prior to December 8, 1994, the present value of any distribution made before the earlier of - (i) the later of when a plan amendment applying subparagraph (A) is adopted or made effective, or (ii) the first day of the first plan year beginning after December 31, 1999, shall be calculated, for purposes of paragraphs (1) and (2), using the interest rate determined under the regulations of the Pension Benefit Guaranty Corporation for determining the present value of a lump sum distribution on plan termination that were in effect on September 1, 1993, and using the provisions of the plan as in effect on the day before December 8, 1994; but only if such provisions of the plan met the requirements of this paragraph as in effect on the day before December 8, 1994. (h) Definitions For purposes of this section - (1) The term "vested participant" means any participant who has a nonforfeitable right (within the meaning of section 1002(19) of this title) to any portion of such participant's accrued benefit. (2)(A) The term "annuity starting date" means - (i) the first day of the first period for which an amount is payable as an annuity, or (ii) in the case of a benefit not payable in the form of an annuity, the first day on which all events have occurred which entitle the participant to such benefit. (B) For purposes of subparagraph (A), the first day of the first period for which a benefit is to be received by reason of disability shall be treated as the annuity starting date only if such benefit is not an auxiliary benefit. (3) The term "earliest retirement age" means the earliest date on which, under the plan, the participant could elect to receive retirement benefits. (i) Increased costs from providing annuity A plan may take into account in any equitable manner (as determined by the Secretary of the Treasury) any increased costs resulting from providing a qualified joint or survivor annuity or a qualified preretirement survivor annuity. (j) Use of participant's accrued benefit as security for loan as not preventing distribution If the use of any participant's accrued benefit (or any portion thereof) as security for a loan meets the requirements of subsection (c)(4) of this section, nothing in this section shall prevent any distribution required by reason of a failure to comply with the terms of such loan. (k) Spousal consent No consent of a spouse shall be effective for purposes of subsection (g)(1) or (g)(2) of this section (as the case may be) unless requirements comparable to the requirements for spousal consent to an election under subsection (c)(1)(A) of this section are met. (g742l) Regulations; consultation of Secretary of the Treasury with Secretary of Labor In prescribing regulations under this section, the Secretary of the Treasury shall consult with the Secretary of Labor. -SOURCE- (Pub. L. 93-406, title I, Sec. 205, Sept. 2, 1974, 88 Stat. 862; Pub. L. 98-397, title I, Sec. 103(a), Aug. 23, 1984, 98 Stat. 1429; Pub. L. 99-514, title XI, Secs. 1139(c)(2), 1145(b), title XVIII, Sec. 1898(b)(1)(B), (2)(B), (3)(B), (4)(B), (5)(B), (6)(B), (7)(B), (8)(B), (9)(B), (10)(B), (11)(B), (12)(B), (13)(B), (14)(B), Oct. 22, 1986, 100 Stat. 2488, 2491, 2945-2951; Pub. L. 101-239, title VII, Secs. 7861(d)(2), 7862(d)(1)(B), (3), (6)-(9), 7891(a)(1), (b)(3), (c), (e), 7894(c)(7)(A), Dec. 19, 1989, 103 Stat. 2431, 2434, 2445, 2447, 2449; Pub. L. 103-465, title VII, Sec. 767(c)(2), Dec. 8, 1994, 108 Stat. 5039; Pub. L. 104-188, title I, Sec. 1451(b), Aug. 20, 1996, 110 Stat. 1815; Pub. L. 105-34, title X, Sec. 1071(b)(2), title XVI, Sec. 1601(d)(5), Aug. 5, 1997, 111 Stat. 948, 1089; Pub. L. 107-147, title IV, Sec. 411(r)(2), Mar. 9, 2002, 116 Stat. 51.) -MISC1- AMENDMENTS 2002 - Subsec. (g)(1). Pub. L. 107-147, Sec. 411(r)(2)(A), substituted "exceed the amount that can be distributed without the participant's consent under section 1053(e) of this title" for "exceed the dollar limit under section 1053(e)(1) of this title". Subsec. (g)(2)(A). Pub. L. 107-147, Sec. 411(r)(2)(B), substituted "exceeds the amount that can be distributed without the participant's consent under section 1053(e) of this title" for "exceeds the dollar limit under section 1053(e)(1) of this title". 1997 - Subsec. (c)(8)(A)(ii). Pub. L. 105-34, Sec. 1601(d)(5), substituted "Secretary of the Treasury" for "Secretary". Subsec. (g)(1), (2)(A). Pub. L. 105-34, Sec. 1071(b)(2), substituted "the dollar limit under section 1053(e)(1) of this title" for "$3,500". 1996 - Subsec. (c)(8). Pub. L. 104-188 added par. (8). 1994 - Subsec. (g)(3). Pub. L. 103-465 amended par. (3) generally. Prior to amendment, par. (3) read as follows: "(3)(A) For purposes of paragraphs (1) and (2), the present value shall be calculated - "(i) by using an interest rate no greater than the applicable interest rate if the vested accrued benefit (using such rate) is not in excess of $25,000, and "(ii) by using an interest rate no greater than 120 percent of the applicable interest rate if the vested accrued benefit exceeds $25,000 (as determined under clause (i)). In no event shall the present value determined under subclause (II) be less than $25,000. "(B) For purposes of subparagraph (A), the term 'applicable interest rate' means the interest rate which would be used (as of the date of the distribution) by the Pension Benefit Guaranty Corporation for purposes of determining the present value of a lump sum distribution on plan termination." 1989 - Subsec. (b)(1)(C)(i). Pub. L. 101-239, Sec. 7862(d)(7), made technical correction to directory language of Pub. L. 99-514, Sec. 1898(b)(7)(B), see 1986 Amendment note below. Subsec. (b)(2)(A)(i). Pub. L. 101-239, Sec. 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. (b)(3), (4). Pub. L. 101-239, Sec. 7862(d)(9), amended directory language of Pub. L. 99-514, Sec. 1898(b)(14)(B), see 1986 Amendment note below, and redesignated par. (3), as added by Pub. L. 99-514, Sec. 1898(b)(14)(B), as par. (4). Pub. L. 101-239, Secs. 7861(d)(2), 7891(c), realigned margins of par. (3), as added by Pub. L. 99-514, Sec. 1145(b), and redesignated such par. (3) as (4). Subsec. (c)(3)(B)(ii). Pub. L. 101-239, Sec. 7862(d)(1)(B), inserted at end "In the case of a participant who separates from service before attaining age 35, the applicable period shall be a reasonable period after separation." Subsec. (c)(3)(B)(ii)(IV). Pub. L. 101-239, Sec. 7862(d)(6), substituted "after this section" for "after section 1101(a)(11) of this title". Subsec. (c)(3)(B)(ii)(V). Pub. L. 101-239, Sec. 7862(d)(1)(B), struck out subcl. (V) which read as follows: "A reasonable period after separation from service in case of a participant who separates before attaining age 35." Subsec. (c)(6). Pub. L. 101-239, Sec. 7894(c)(7)(A), substituted "such Act" for "such act". Subsec. (e)(2). Pub. L. 101-239, Sec. 7862(d)(8), substituted "nonforfeitable right (within the meaning of section 1053 of this title)" for "nonforfeitable accrued benefit". Subsec. (g)(3)(A). Pub. L. 101-239, Sec. 7891(b)(3), realigned margins of subpar. (A). Subsec. (h)(1). Pub. L. 101-239, Secs. 7862(d)(3)(A), 7891(e)(1), amended par. (1) identically, substituting "The term" for "the term" and "benefit." for "benefit,". Subsec. (h)(3). Pub. L. 101-239, Secs. 7862(d)(3)B), 7891(e)(2), amended par. (3) identically, substituting "The term" for "the term". 1986 - Subsec. (a)(1). Pub. L. 99-514, Sec. 1898(b)(3)(B), substituted "who does not die before the annuity starting date" for "who retires under the plan". Subsec. (b)(1). Pub. L. 99-514, Sec. 1898(b)(2)(B)(ii), inserted at end "Clause (iii) of subparagraph (C) shall apply only with respect to the transferred assets (and income therefrom) if the plan separately accounts for such assets and any income therefrom." Subsec. (b)(1)(C)(i). Pub. L. 99-514, Sec. 1898(b)(13)(B), substituted "(c)(2)" for "(c)(2)(A)". Pub. L. 99-514, Sec. 1898(b)(7)(B), as amended by Pub. L. 101-239, Sec. 7862(d)(7), inserted "(reduced by any security interest held by the plan by reason of a loan outstanding to such participant)". Subsec. (b)(1)(C)(iii). Pub. L. 99-514, Sec. 1898(b)(2)(B)(i), substituted "a direct or indirect transferee (in a transfer after December 31, 1984)" for "a transferee". Subsec. (b)(3). Pub. L. 99-514, Sec. 1898(b)(14)(B), as amended by Pub. L. 101-239, Sec. 7862(d)(9)(A), added par. (3) relating to treatment of plan as meeting requirements of par. (1)(C) or (2) of subsec. (b). Pub. L. 99-514, Sec. 1145(b), added par. (3) relating to applicability of this section to plans described in section 404(c) of title 26. Subsec. (c)(1)(B). Pub. L. 99-514, Sec. 1898(b)(4)(B)(i), substituted "paragraphs (2), (3), and (4)" for "paragraphs (2) and (3)". Subsec. (c)(2)(A). Pub. L. 99-514, Sec. 1898(b)(6)(B), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: "the spouse of the participant consents in writing to such election, and the spouse's consent acknowledges the effect of such election and is witnessed by a plan representative or a notary public, or". Subsec. (c)(3)(B). Pub. L. 99-514, Sec. 1898(b)(5)(B), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: "Each plan shall provide to each participant, within the period beginning with the first day of the plan year in which the participant attains age 32 and ending with the close of the plan year preceding the plan year in which the participant attains age 35 (and consistent with such regulations as the Secretary of the Treasury may prescribe), a written explanation with respect to the qualified preretirement survivor annuity comparable to that required under subparagraph (A)." Subsec. (c)(4). Pub. L. 99-514, Sec. 1898(b)(4)(B)(ii), added par. (4). Former par. (4) redesignated (5). Subsec. (c)(5). Pub. L. 99-514, Sec. 1898(b)(4)(B)(ii), redesignated par. (4) as (5). Former par. (5) redesignated (6). Subsec. (c)(5)(A). Pub. L. 99-514, Sec. 1898(b)(11)(B), inserted "if such benefit may not be waived (or another beneficiary selected) and". Subsec. (c)(6), (7). Pub. L. 99-514, Sec. 1898(b)(4)(B)(ii), redesignated pars. (5) and (6) as (6) and (7), respectively. Subsec. (e)(1). Pub. L. 99-514, Sec. 1898(b)(1)(B), inserted at end "In the case of an individual who separated from service before the date of such individual's death, subparagraph (A)(ii)(I) shall not apply." Subsec. (e)(2). Pub. L. 99-514, Sec. 1898(b)(9)(B)(i), substituted "the portion of the account balance of the participant (as of the date of death) to which the participant had a nonforfeitable accrued benefit" for "the account balance of the participant as of the date of death". Subsec. (e)(3). Pub. L. 99-514, Sec. 1898(b)(9)(B)(ii), added par. (3). Subsec. (g)(3). Pub. L. 99-514, Sec. 1139(c)(2), amended par. (3) generally. Prior to amendment, par. (3) read as follows: "For purposes of paragraphs (1) and (2), the present value of a qualified joint and survivor annuity or a qualified preretirement survivor annuity shall be determined as of the date of the distribution and by using an interest rate not greater than the interest rate which would be used (as of the date of the distribution) by the Pension Benefit Guaranty Corporation for purposes of determining the present value of a lump sum distribution on plan termination." Subsec. (h)(1). Pub. L. 99-514, Sec. 1898(b)(8)(B), substituted "such participant's accrued benefit" for "the accrued benefit derived from employer contributions". Subsec. (h)(2). Pub. L. 99-514, Sec. 1898(b)(12)(B), amended par. (2) generally. Prior to amendment, par. (2) read as follows: "the term 'annuity starting date' means the first day of the first period for which an amount is received as an annuity (whether by reason of retirement or disability), and". Subsec. (j). Pub. L. 99-514, Sec. 1898(b)(4)(B)(iii), added subsec. (j). Former subsec. (j) redesignated (k). Subsec. (k). Pub. L. 99-514, Sec. 1898(b)(10)(B), added subsec. (k). Former subsec. (k) redesignated (l). Pub. L. 99-514, Sec. 1898(b)(4)(B)(iii), redesignated subsec. (j) as (k). Subsec. (l). Pub. L. 99-514, Sec. 1898(b)(10)(B), redesignated subsec. (k) as (l). 1984 - Subsec. (a). Pub. L. 98-397 substituted provisions relating to provisions to be included in applicable plans for former provisions relating to form of payment of annuity benefits. Subsec. (b). Pub. L. 98-397 substituted provisions relating to applicable plans under this section for former provisions relating to plans providing for payment of benefits before normal retirement age. Subsec. (c). Pub. L. 98-397 substituted provisions relating to conditions under which plans meet the requirements of this section for former provisions relating to election of qualified joint and survivor annuity form. Subsec. (d). Pub. L. 98-397 substituted provisions defining "qualified joint and survivor annuity" for former provisions relating to the participant's spouse not being entitled to receive survivor annuity. Subsec. (e). Pub. L. 98-397 substituted provisions defining "qualified preretirement survivor annuity" for former provisions relating to election to take annuity. Subsec. (f). Pub. L. 98-397 substituted provisions to the effect that plans may provide that annuities will not be provided unless the participant and spouse had been married for a certain 1-year period, for former provisions relating to plan provisions which render election or revocation ineffective if participant dies within period of up to 2 years following the date of election or revocation. Subsec. (g). Pub. L. 98-397 substituted provisions relating to plan provisions for immediate distribution of present value if such value does not exceed $3,500 and for written consent from the participant and spouse for former provisions setting forth definitions. See subsec. (h) of this section. Subsec. (h). Pub. L. 98-397 substituted provisions setting forth definitions for former provisions relating to increased costs resulting from providing joint and survivor annuity benefits. See subsec. (i) of this section. Subsec. (i). Pub. L. 98-397 substituted provisions relating to increased costs resulting from providing annuities under applicable plans for former provisions setting forth the effective date of this section. Subsec. (j). Pub. L. 98-397 added subsec. (j). EFFECTIVE DATE OF 2002 AMENDMENT Amendment by Pub. L. 107-147 effective as if included in the provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001, Pub. L. 107-16, to which such amendment relates, see section 411(x) of Pub. L. 107-147, set out as a note under section 25B of Title 26, Internal Revenue Code. EFFECTIVE DATE OF 1997 AMENDMENT Amendment by section 1071(b)(2) of Pub. L. 105-34 applicable to plan years beginning after Aug. 5, 1997, see section 1071(c) of Pub. L. 105-34, set out as a note under section 411 of Title 26, Internal Revenue Code. Amendment by section 1601(d)(5) of Pub. L. 105-34 effective as if included in the provisions of the Small Business Job Protection Act of 1996, Pub. L. 104-188, to which it relates, see section 1601(j) of Pub. L. 105-34, set out as a note under section 23 of Title 26, Internal Revenue Code. EFFECTIVE DATE OF 1996 AMENDMENT Amendment by Pub. L. 104-188 applicable to plan years beginning after Dec. 31, 1996, see section 1451(c) of Pub. L. 104-188, set out as a note under section 417 of Title 26, Internal Revenue Code. EFFECTIVE DATE OF 1994 AMENDMENT Amendment by Pub. L. 103-465 applicable to plan years and limitation years beginning after Dec. 31, 1994, except that employer may elect to treat such amendment as effective on or after Dec. 8, 1994, with provisions relating to reduction of accrued benefits, exception, and timing of plan amendment, see section 767(d) of Pub. L. 103-465, as amended, set out as a note under section 411 of Title 26, Internal Revenue Code. EFFECTIVE DATE OF 1989 AMENDMENT Amendment by sections 7861(d)(2) and 7862(d)(1)(B), (3), (6)-(9) of Pub. L. 101-239 effective as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99-514, to which such amendment relates, see section 7863 of Pub. L. 101-239, set out as a note under section 106 of Title 26, Internal Revenue Code. Amendment by section 7891(a)(1), (b)(3), (c), (e) 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. Section 7894(c)(7)(B) of Pub. L. 101-239 provided that: "The amendment made by subparagraph (A) [amending this section] shall take effect as if included in section 103 of the Retirement Equity Act of 1984 [Pub. L. 98-397] in reference to the new section 205(c)(5) of ERISA [subsec. (c)(5) of this section] as added by such section 3113." EFFECTIVE DATE OF 1986 AMENDMENT Amendment by section 1139(c)(2) of Pub. L. 99-514 applicable to distributions in plan years beginning after Dec. 31, 1984, except that such amendments shall not apply to any distributions in plan years beginning after Dec. 31, 1984, and before Jan. 1, 1987, if such distributions were made in accordance with the requirements of the regulations issued under the Retirement Equity Act of 1984, Pub. L. 98-397, with additional provisions relating to reductions in accrued benefits, see section 1139(d) of Pub. L. 99-514, set out as a note under section 411 of Title 26, Internal Revenue Code. Amendment by section 1145(b) of Pub. L. 99-514 applicable as if included in the amendments made by the Retirement Equity Act of 1984, Pub. L. 98-397, see section 1145(d) of Pub. L. 99-514, set out as a note under section 401 of Title 26. Amendment by section 1898(b)(4)(B) of Pub. L. 99-514 applicable with respect to loans made after Aug. 18, 1985, see section 1898(b)(4)(C) of Pub. L. 99-514, set out as a note under section 417 of Title 26. Amendment by section 1898(b)(6)(B) of Pub. L. 99-514 applicable to plan years beginning after Oct. 22, 1986, see section 1898(b)(6)(C) of Pub. L. 99-514, set out as a note under section 417 of Title 26. Amendment by section 1898(b)(8)(B) of Pub. L. 99-514 applicable to distributions after Oct. 22, 1986, see section 1898(b)(8)(C) of Pub. L. 99-514, as added, set out as a note under section 417 of Title 26. Amendment by section 1898(b)(1)(B), (2)(B), (3)(B), (5)(B), (7)(B), (9)(B), (10)(B), (11)(B), (12)(B), (13)(B), (14)(B) of Pub. L. 99-514 effective as if included in the provision of the Retirement Equity Act of 1984, Pub. L. 98-397, to which such amendment relates, except as otherwise provided, see section 1898(j) of Pub. L. 99-514, set out as a note under section 401 of Title 26. EFFECTIVE DATE OF 1984 AMENDMENT Amendment by Pub. L. 98-397 applicable to plan years beginning after Dec. 31, 1984, except as otherwise provided, see sections 302 and 303 of Pub. L. 98-397, set out as a note under section 1001 of this title. Nothing in amendment by Pub. L. 98-397 to prevent any distribution required by reason of failure to comply with terms of loan made on or before Aug. 18, 1985, and secured by portion of participant's accrued benefit, see section 1898(b)(4)(C)(ii) of Pub. L. 99-514, set out as an Effective Date of 1986 Amendment note under section 417 of Title 26, Internal Revenue Code. PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1998 For provisions directing that if any amendments made by subtitle D [Secs. 1401-1465] of title I of Pub. L. 104-188 require an amendment to any plan or annuity contract, such amendment shall not be required to be made before the first day of the first plan year beginning on or after Jan. 1, 1998, see section 1465 of Pub. L. 104-188, set out as a note under section 401 of Title 26, Internal Revenue Code. PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989 For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or title XVIII [Secs. 1800-1899A] of Pub. L. 99-514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. L. 99-514, as amended, set out as a note under section 401 of Title 26, Internal Revenue Code. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 1053, 1054, 1056, 1061, 1322, 1350 of this title; title 28 section 3010. -FOOTNOTE- (!1) So in original. Probably should be "clauses". (!2) So in original. There are two pars. designated (4) and no par. (3). -End- -CITE- 29 USC Sec. 1056 01/06/03 -EXPCITE- TITLE 29 - LABOR CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS Subtitle B - Regulatory Provisions part 2 - participation and vesting -HEAD- Sec. 1056. Form and payment of benefits -STATUTE- (a) Commencement date for payment of benefits Each pension plan shall provide that unless the participant otherwise elects, the payment of benefits under the plan to the participant shall begin not later than the 60th day after the latest of the close of the plan year in which - (1) occurs the date on which the participant attains the earlier of age 65 or the normal retirement age specified under the plan, (2) occurs the 10th anniversary of the year in which the participant commenced participation in the plan, or (3) the participant terminates his service with the employer. In the case of a plan which provides for the payment of an early retirement benefit, such plan shall provide that a participant who satisfied the service requirements for such early retirement benefit, but separated from the service (with any nonforfeitable right to an accrued benefit) before satisfying the age requirement for such early retirement benefit, is entitled upon satisfaction of such age requirement to receive a benefit not less than the benefit to which he would be entitled at the normal retirement age, actuarially reduced under regulations prescribed by the Secretary of the Treasury. (b) Decrease in plan benefits by reason of increases in benefit levels under Social Security Act or Railroad Retirement Act of 1937 If - (1) a participant or beneficiary is receiving benefits under a pension plan, or (2) a participant is separated from the service and has non-forfeitable rights to benefits, a plan may not decrease benefits of such a participant by reason of any increase in the benefit levels payable under title II of the Social Security Act [42 U.S.C. 401 et seq.] or the Railroad Retirement Act of 1937 [45 U.S.C. 231 et seq.] or any increase in the wage base under such title II, if such increase takes place after September 2, 1974, or (if later) the earlier of the date of first entitlement of such benefits or the date of such separation. (c) Forfeiture of accrued benefits derived from employer contributions No pension plan may provide that any part of a participant's accrued benefit derived from employer contributions (whether or not otherwise nonforfeitable) is forfeitable solely because of withdrawal by such participant of any amount attributable to the benefit derived from contributions made by such participant. The preceding sentence shall not apply (1) to the accrued benefit of any participant unless, at the time of such withdrawal, such participant has a nonforfeitable right to at least 50 percent of such accrued benefit, or (2) to the extent that an accrued benefit is permitted to be forfeited in accordance with section 1053(a)(3)(D)(iii) of this title. (d) Assignment or alienation of plan benefits (1) Each pension plan shall provide that benefits provided under the plan may not be assigned or alienated. (2) For the purposes of paragraph (1) of this subsection, there shall not be taken into account any voluntary and revocable assignment of not to exceed 10 percent of any benefit payment, or of any irrevocable assignment or alienation of benefits executed before September 2, 1974. The preceding sentence shall not apply to any assignment or alienation made for the purposes of defraying plan administration costs. For purposes of this paragraph a loan made to a participant or beneficiary shall not be treated as an assignment or alienation if such loan is secured by the participant's accrued non-forfeitable benefit and is exempt from the tax imposed by section 4975 of title 26 (relating to tax on prohibited transactions) by reason of section 4975(d)(1) of title 26. (3)(A) Paragraph (1) shall apply to the creation, assignment, or recognition of a right to any benefit payable with respect to a participant pursuant to a domestic relations order, except that paragraph (1) shall not apply if the order is determined to be a qualified domestic relations order. Each pension plan shall provide for the payment of benefits in accordance with the applicable requirements of any qualified domestic relations order. (B) For purposes of this paragraph - (i) the term "qualified domestic relations order" means a domestic relations order - (I) which creates or recognizes the existence of an alternate payee's right to, or assigns to an alternate payee the right to, receive all or a portion of the benefits payable with respect to a participant under a plan, and (II) with respect to which the requirements of subparagraphs (C) and (D) are met, and (ii) the term "domestic relations order" means any judgment, decree, or order (including approval of a property settlement agreement) which - (I) relates to the provision of child support, alimony payments, or marital property rights to a spouse, former spouse, child, or other dependent of a participant, and (II) is made pursuant to a State domestic relations law (including a community property law). (C) A domestic relations order meets the requirements of this subparagraph only if such order clearly specifies - (i) the name and the last known mailing address (if any) of the participant and the name and mailing address of each alternate payee covered by the order, (ii) the amount or percentage of the participant's benefits to be paid by the plan to each such alternate payee, or the manner in which such amount or percentage is to be determined, (iii) the number of payments or period to which such order applies, and (iv) each plan to which such order applies. (D) A domestic relations order meets the requirements of this subparagraph only if such order - (i) does not require a plan to provide any type or form of benefit, or any option, not otherwise provided under the plan, (ii) does not require the plan to provide increased benefits (determined on the basis of actuarial value), and (iii) does not require the payment of benefits to an alternate payee which are required to be paid to another alternate payee under another order previously determined to be a qualified domestic relations order. (E)(i) A domestic relations order shall not be treated as failing to meet the requirements of clause (i) of subparagraph (D) solely because such order requires that payment of benefits be made to an alternate payee - (I) in the case of any payment before a participant has separated from service, on or after the date on which the participant attains (or would have attained) the earliest retirement age, (II) as if the participant had retired on the date on which such payment is to begin under such order (but taking into account only the present value of benefits actually accrued and not taking into account the present value of any employer subsidy for early retirement), and (III) in any form in which such benefits may be paid under the plan to the participant (other than in the form of a joint and survivor annuity with respect to the alternate payee and his or her subsequent spouse). For purposes of subclause (II), the interest rate assumption used in determining the present value shall be the interest rate specified in the plan or, if no rate is specified, 5 percent. (ii) For purposes of this subparagraph, the term "earliest retirement age" means the earlier of - (I) the date on which the participant is entitled to a distribution under the plan, or (II) the later of the date of the participant attains age 50 or the earliest date on which the participant could begin receiving benefits under the plan if the participant separated from service. (F) To the extent provided in any qualified domestic relations order - (i) the former spouse of a participant shall be treated as a surviving spouse of such participant for purposes of section 1055 of this title (and any spouse of the participant shall not be treated as a spouse of the participant for such purposes), and (ii) if married for at least 1 year, the surviving former spouse shall be treated as meeting the requirements of section 1055(f) of this title. (G)(i) In the case of any domestic relations order received by a plan - (I) the plan administrator shall promptly notify the participant and each alternate payee of the receipt of such order and the plan's procedures for determining the qualified status of domestic relations orders, and (II) within a reasonable period after receipt of such order, the plan administrator shall determine whether such order is a qualified domestic relations order and notify the participant and each alternate payee of such determination. (ii) Each plan shall establish reasonable procedures to determine the qualified status of domestic relations orders and to administer distributions under such qualified orders. Such procedures - (I) shall be in writing, (II) shall provide for the notification of each person specified in a domestic relations order as entitled to payment of benefits under the plan (at the address included in the domestic relations order) of such procedures promptly upon receipt by the plan of the domestic relations order, and (III) shall permit an alternate payee to designate a representative for receipt of copies of notices that are sent to the alternate payee with respect to a domestic relations order. (H)(i) During any period in which the issue of whether a domestic relations order is a qualified domestic relations order is being determined (by the plan administrator, by a court of competent jurisdiction, or otherwise), the plan administrator shall separately account for the amounts (hereinafter in this subparagraph referred to as the "segregated amounts") which would have been payable to the alternate payee during such period if the order had been determined to be a qualified domestic relations order. (ii) If within the 18-month period described in clause (v) the order (or modification thereof) is determined to be a qualified domestic relations order, the plan administrator shall pay the segregated amounts (including any interest thereon) to the person or persons entitled thereto. (iii) If within the 18-month period described in clause (v) - (I) it is determined that the order is not a qualified domestic relations order, or (II) the issue as to whether such order is a qualified domestic relations order is not resolved, then the plan administrator shall pay the segregated amounts (including any interest thereon) to the person or persons who would have been entitled to such amounts if there had been no order. (iv) Any determination that an order is a qualified domestic relations order which is made after the close of the 18-month period described in clause (v) shall be applied prospectively only. (v) For purposes of this subparagraph, the 18-month period described in this clause is the 18-month period beginning with the date on which the first payment would be required to be made under the domestic relations order. (I) If a plan fiduciary acts in accordance with part 4 of this subtitle in - (i) treating a domestic relations order as being (or not being) a qualified domestic relations order, or (ii) taking action under subparagraph (H), then the plan's obligation to the participant and each alternate payee shall be discharged to the extent of any payment made pursuant to such Act. (J) A person who is an alternate payee under a qualified domestic relations order shall be considered for purposes of any provision of this chapter a beneficiary under the plan. Nothing in the preceding sentence shall permit a requirement under section 1301 of this title of the payment of more than 1 premium with respect to a participant for any period. (K) The term "alternate payee" means any spouse, former spouse, child, or other dependent of a participant who is recognized by a domestic relations order as having a right to receive all, or a portion of, the benefits payable under a plan with respect to such participant. (L) This paragraph shall not apply to any plan to which paragraph (1) does not apply. (M) Payment of benefits by a pension plan in accordance with the applicable requirements of a qualified domestic relations order shall not be treated as garnishment for purposes of section 1673(a) of title 15. (N) In prescribing regulations under this paragraph, the Secretary shall consult with the Secretary of the Treasury. (4) Paragraph (1) shall not apply to any offset of a participant's benefits provided under an employee pension benefit plan against an amount that the participant is ordered or required to pay to the plan if - (A) the order or requirement to pay arises - (i) under a judgment of conviction for a crime involving such plan, (ii) under a civil judgment (including a consent order or decree) entered by a court in an action brought in connection with a violation (or alleged violation) of part 4 of this subtitle, or (iii) pursuant to a settlement agreement between the Secretary and the participant, or a settlement agreement between the Pension Benefit Guaranty Corporation and the participant, in connection with a violation (or alleged violation) of part 4 of this subtitle by a fiduciary or any other person, (B) the judgment, order, decree, or settlement agreement expressly provides for the offset of all or part of the amount ordered or required to be paid to the plan against the participant's benefits provided under the plan, and (C) in a case in which the survivor annuity requirements of section 1055 of this title apply with respect to distributions from the plan to the participant, if the participant has a spouse at the time at which the offset is to be made - (i) either - (I) such spouse has consented in writing to such offset and such consent is witnessed by a notary public or representative of the plan (or it is established to the satisfaction of a plan representative that such consent may not be obtained by reason of circumstances described in section 1055(c)(2)(B) of this title), or (II) an election to waive the right of the spouse to a qualified joint and survivor annuity or a qualified preretirement survivor annuity is in effect in accordance with the requirements of section 1055(c) of this title, (ii) such spouse is ordered or required in such judgment, order, decree, or settlement to pay an amount to the plan in connection with a violation of part 4 of this subtitle, or (iii) in such judgment, order, decree, or settlement, such spouse retains the right to receive the survivor annuity under a qualified joint and survivor annuity provided pursuant to section 1055(a)(1) of this title and under a qualified preretirement survivor annuity provided pursuant to section 1055(a)(2) of this title, determined in accordance with paragraph (5). A plan shall not be treated as failing to meet the requirements of section 1055 of this title solely by reason of an offset under this paragraph. (5)(A) The survivor annuity described in paragraph (4)(C)(iii) shall be determined as if - (i) the participant terminated employment on the date of the offset, (ii) there was no offset, (iii) the plan permitted commencement of benefits only on or after normal retirement age, (iv) the plan provided only the minimum-required qualified joint and survivor annuity, and (v) the amount of the qualified preretirement survivor annuity under the plan is equal to the amount of the survivor annuity payable under the minimum-required qualified joint and survivor annuity. (B) For purposes of this paragraph, the term "minimum-required qualified joint and survivor annuity" means the qualified joint and survivor annuity which is the actuarial equivalent of the participant's accrued benefit (within the meaning of section 1002(23) of this title) and under which the survivor annuity is 50 percent of the amount of the annuity which is payable during the joint lives of the participant and the spouse. (e) Limitation on distributions other than life annuities paid by plan (1) In general Notwithstanding any other provision of this part, the fiduciary of a pension plan that is subject to the additional funding requirements of section 1082(d) of this title shall not permit a prohibited payment to be made from a plan during a period in which such plan has a liquidity shortfall (as defined in section 1082(e)(5) of this title). (2) Prohibited payment For purposes of paragraph (1), the term "prohibited payment" means - (A) any payment, in excess of the monthly amount paid under a single life annuity (plus any social security supplements described in the last sentence of section 1054(b)(1)(G) of this title), to a participant or beneficiary whose annuity starting date (as defined in section 1055(h)(2) of this title), that occurs during the period referred to in paragraph (1), (B) any payment for the purchase of an irrevocable commitment from an insurer to pay benefits, and (C) any other payment specified by the Secretary of the Treasury by regulations. (3) Period of shortfall For purposes of this subsection, a plan has a liquidity shortfall during the period that there is an underpayment of an installment under section 1082(e) of this title by reason of paragraph (5)(A) thereof. (4) Coordination with other provisions Compliance with this subsection shall not constitute a violation of any other provision of this chapter. (f) Missing participants in terminated plans In the case of a plan covered by subchapter III of this chapter, the plan shall provide that, upon termination of the plan, benefits of missing participants shall be treated in accordance with section 1350 of this title. -SOURCE- (Pub. L. 93-406, title I, Sec. 206, Sept. 2, 1974, 88 Stat. 864; Pub. L. 98-397, title I, Sec. 104(a), Aug. 23, 1984, 98 Stat. 1433; Pub. L. 99-514, title XVIII, Sec. 1898(c)(2)(B), (4)(B), (5), (6)(B), (7)(B), Oct. 22, 1986, 100 Stat. 2952-2954; Pub. L. 101-239, title VII, Secs. 7891(a)(1), 7894(c)(8), (9)(A), Dec. 19, 1989, 103 Stat. 2445, 2449; Pub. L. 103-465, title VII, Secs. 761(a)(9)(B)(i), 776(c)(2), Dec. 8, 1994, 108 Stat. 5033, 5048; Pub. L. 105-34, title XV, Sec. 1502(a), Aug. 5, 1997, 111 Stat. 1058.) -REFTEXT- REFERENCES IN TEXT The Social Security Act, referred to in subsec. (b), is act Aug. 14, 1935, ch. 531, 49 Stat. 620, as amended. Title II of the Social Security Act is classified generally to subchapter II (Sec. 401 et seq.) 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. The Railroad Retirement Act of 1937, referred to in subsec. (b), is act Aug. 29, 1935, ch. 812, 49 Stat. 867, as amended generally by act June 24, 1937, ch. 382, part I, 50 Stat. 307, and which was classified principally to subchapter III (Sec. 228a et seq.) of chapter 9 of Title 45, Railroads. The Railroad Retirement Act of 1937 was amended generally and redesignated the Railroad Retirement Act of 1974 by Pub. L. 93-445, title I, Oct. 16, 1974, 88 Stat. 1305. The Railroad Retirement Act of 1974 is classified generally to subchapter IV (Sec. 231 et seq.) of chapter 9 of Title 45. For complete classification of these acts to the Code, see Tables. This chapter, referred to in subsec. (e)(4), was in the original "this Act", meaning Pub. L. 93-406, known as the Employee Retirement Income Security Act of 1974. Titles I, III, and IV of such Act are classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note set out under section 1001 of this title and Tables. -MISC1- AMENDMENTS 1997 - Subsec. (d)(4), (5). Pub. L. 105-34 added pars. (4) and (5). 1994 - Subsec. (e). Pub. L. 103-465, Sec. 761(a)(9)(B)(i), added subsec. (e). Subsec. (f). Pub. L. 103-465, Sec. 776(c)(2), added subsec. (f). 1989 - Subsec. (a)(1). Pub. L. 101-239, Sec. 7894(c)(8), inserted "occurs" before "the date". Subsec. (d)(2). Pub. L. 101-239, Sec. 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. (d)(3)(I). Pub. L. 101-239, Sec. 7894(c)(9)(A), substituted "such Act" for "such act". 1986 - Subsec. (d)(3)(E)(i). Pub. L. 99-514, Sec. 1898(c)(7)(B)(iii), substituted "A" for "In the case of any payment before a participant has separated from service, a" in introductory provisions and inserted "in the case of any payment before a participant has separated from service," in subcl. (I). Subsec. (d)(3)(E)(ii). Pub. L. 99-514, Sec. 1898(c)(7)(B)(iv), amended cl. (ii) generally. Prior to amendment, cl. (ii) read as follows: "For purposes of this subparagraph, the term 'earliest retirement age' has the meaning given such term by section 1055(h)(3) of this section, except that in the case of any individual account plan, the earliest retirement age shall be the date which is 10 years before the normal retirement age." Subsec. (d)(3)(F)(i). Pub. L. 99-514, Sec. 1898(c)(6)(B), inserted "(and any spouse of the participant shall not be treated as a spouse of the participant for such purposes)". Subsec. (d)(3)(F)(ii). Pub. L. 99-514, Sec. 1898(c)(7)(B)(i), inserted "surviving" before "former spouse". Subsec. (d)(3)(G)(i)(I). Pub. L. 99-514, Sec. 1898(c)(7)(B)(ii), substituted "each" for "any other". Subsec. (d)(3)(H)(i). Pub. L. 99-514, Sec. 1898(c)(2)(B)(i), substituted "shall separately account for the amounts (hereinafter in this subparagraph referred to as the 'segregated amounts')" for "shall segregate in a separate account in the plan or in an escrow account the amounts". Subsec. (d)(3)(H)(ii), (iii). Pub. L. 99-514, Sec. 1898(c)(2)(B)(ii), (iii), substituted "the 18-month period described in clause (v)" for "18 months" and "including any interest" for "plus any interest". Subsec. (d)(3)(H)(iv). Pub. L. 99-514, Sec. 1898(c)(2)(B)(iv), inserted "described in clause (v)". Subsec. (d)(3)(H)(v). Pub. L. 99-514, Sec. 1898(c)(2)(B)(v), added cl. (v). Subsec. (d)(3)(L). Pub. L. 99-514, Sec. 1898(c)(4)(B), added subpar. (L) and redesignated former subpar. (L) as (N). Subsec. (d)(3)(M). Pub. L. 99-514, Sec. 1898(c)(5), added subpar. (M). Subsec. (d)(3)(N). Pub. L. 99-514, Sec. 1898(c)(4)(B), redesignated subpar. (L) as (N). 1984 - Subsec. (d)(3). Pub. L. 98-397 added par. (3). EFFECTIVE DATE OF 1997 AMENDMENT Amendment by Pub. L. 105-34 applicable to judgments, orders, and decrees issued, and settlement agreements entered into, on or after Aug. 5, 1997, see section 1502(c) of Pub. L. 105-34, set out as a note under section 401 of Title 26, Internal Revenue Code. EFFECTIVE DATE OF 1994 AMENDMENT Section 761(b) of Pub. L. 103-465 provided that: "(1) In general. - Except as provided in paragraph (2), the amendments made by this section [amending this section and sections 1082, 1132, and 1301 of this title] shall apply to plan years beginning after December 31, 1994. "(2) Contributing sponsor. - The amendment made by subsection (a)(11) [amending section 1301 of this title] shall be effective as if included in the Pension Protection Act [Pub. L. 100-203, title IX, subtitle D, part II, Secs. 9302-9346]." Section 776(e) of Pub. L. 103-465 provided that: "The provisions of this section [enacting section 1350 of this title and amending this section and sections 1303, 1305, and 1341 of this title and section 401 of Title 26, Internal Revenue Code] shall be effective with respect to distributions that occur in plan years commencing after final regulations implementing these provisions are prescribed by the Pension Benefit Guaranty Corporation." [Final implementing regulations were issued Nov. 22, 1995, effective for distributions in plan years beginning on or after Jan. 1, 1996. See 60 F.R. 61740.] EFFECTIVE DATE OF 1989 AMENDMENT 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(c)(8) 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. Section 7894(c)(9)(B) of Pub. L. 101-239 provided that: "The amendment made by subparagraph (A) [amending this section] shall take effect as if included in section 104 of the Retirement Equity Act of 1984 [Pub. L. 98-397]." EFFECTIVE DATE OF 1986 AMENDMENT Amendment by Pub. L. 99-514 effective as if included in the provision of the Retirement Equity Act of 1984, Pub. L. 98-397, to which such amendment relates, except as otherwise provided, see section 1898(j) of Pub. L. 99-514, set out as a note under section 401 of Title 26, Internal Revenue Code. EFFECTIVE DATE OF 1984 AMENDMENT Amendment by Pub. L. 98-397 effective Jan. 1, 1985, except as otherwise provided, see section 303(d) of Pub. L. 98-397, set out as a note under section 1001 of this title. PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989 For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or title XVIII [Secs. 1800-1899A] of Pub. L. 99-514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. L. 99-514, as amended, set out as a note under section 401 of Title 26, Internal Revenue Code. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 623, 1021, 1053, 1054, 1061, 1132, 1144, 1301, 1322, 1344 of this title; title 42 section 666. -End- -CITE- 29 USC Sec. 1057 01/06/03 -EXPCITE- TITLE 29 - LABOR CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS Subtitle B - Regulatory Provisions part 2 - participation and vesting -HEAD- Sec. 1057. Temporary variances from certain vesting requirements -STATUTE- In the case of any plan maintained on January 1, 1974, if not later than 2 years after September 2, 1974, the administrator petitions the Secretary, the Secretary may prescribe an alternate method which shall be treated as satisfying the requirements of section 1053(a)(2) or 1054(b)(1) (other than subparagraph (D) thereof) of this title or both for a period of not more than 4 years. The Secretary may prescribe such alternate method only when he finds that - (1) the application of such requirements would increase the costs of the plan to such an extent that there would result a substantial risk to the voluntary continuation of the plan or a substantial curtailment of benefit levels or the levels of employees' compensation. (2) the application of such requirements or discontinuance of the plan would be adverse to the interests of plan participants in the aggregate, and (3) a waiver or extension of time granted under section 1083 or 1084 of this title would be inadequate. In the case of any plan with respect to which an alternate method has been prescribed under the preceding provisions of this subsection for a period of not more than 4 years, if, not later than 1 year before the expiration of such period, the administrator petitions the Secretary for an extension of such alternate method, and the Secretary makes the findings required by the preceding sentence, such alternate method may be extended for not more than 3 years. -SOURCE- (Pub. L. 93-406, title I, Sec. 207, Sept. 2, 1974, 88 Stat. 865.) -MISC1- REGULATIONS Secretary authorized, effective Sept. 2, 1974, to promulgate regulations wherever provisions of this subchapter call for the promulgation of regulations, see section 1031 of this title. -End- -CITE- 29 USC Sec. 1058 01/06/03 -EXPCITE- TITLE 29 - LABOR CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS Subtitle B - Regulatory Provisions part 2 - participation and vesting -HEAD- Sec. 1058. Mergers and consolidations of plans or transfers of plan assets -STATUTE- A pension plan may not merge or consolidate with, or transfer its assets or liabilities to, any other plan after September 2, 1974, unless each participant in the plan would (if the plan then terminated) receive a benefit immediately after the merger, consolidation, or transfer which is equal to or greater than the benefit he would have been entitled to receive immediately before the merger, consolidation, or transfer (if the plan had then terminated). The preceding sentence shall not apply to any transaction to the extent that participants either before or after the transaction are covered under a multiemployer plan to which subchapter III of this chapter applies. -SOURCE- (Pub. L. 93-406, title I, Sec. 208, Sept. 2, 1974, 88 Stat. 865; Pub. L. 96-364, title IV, Sec. 402(b)(1), Sept. 26, 1980, 94 Stat. 1299.) -MISC1- AMENDMENTS 1980 - Pub. L. 96-364 substituted provisions respecting applicability of preceding sentence to transactions under a covered multiemployer plan to which subchapter III applies, for provisions relating to applicability of paragraph to a multiemployer plan only to extent determined by Corporation. EFFECTIVE DATE OF 1980 AMENDMENT Amendment by Pub. L. 96-364 effective Sept. 26, 1980, except as specifically provided, see section 1461(e) of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 1061, 1343, 1344 of this title. -End- -CITE- 29 USC Sec. 1059 01/06/03 -EXPCITE- TITLE 29 - LABOR CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS Subtitle B - Regulatory Provisions part 2 - participation and vesting -HEAD- Sec. 1059. Recordkeeping and reporting requirements -STATUTE- (a)(1) Except as provided by paragraph (2) every employer shall, in accordance with regulations prescribed by the Secretary, maintain records with respect to each of his employees sufficient to determine the benefits due or which may become due to such employees. The plan administrator shall make a report, in such manner and at such time as may be provided in regulations prescribed by the Secretary, to each employee who is a participant under the plan and who - (A) requests such report, in such manner and at such time as may be provided in such regulations, (B) terminates his service with the employer, or (C) has a 1-year break in service (as defined in section 1053(b)(3)(A) of this title). The employer shall furnish to the plan administrator the information necessary for the administrator to make the reports required by the preceding sentence. Not more than one report shall be required under subparagraph (A) in any 12-month period. Not more than one report shall be required under subparagraph (C) with respect to consecutive 1-year breaks in service. The report required under this paragraph shall be sufficient to inform the employee of his accrued benefits under the plan and the percentage of such benefits which are nonforfeitable under the plan. (2) If more than one employer adopts a plan, each such employer shall, in accordance with regulations prescribed by the Secretary, furnish to the plan administrator the information necessary for the administrator to maintain the records and make the reports required by paragraph (1). Such administrator shall maintain the records and, to the extent provided under regulations prescribed by the Secretary, make the reports, required by paragraph (1). (b) If any person who is required, under subsection (a) of this section, to furnish information or maintain records for any plan year fails to comply with such requirement, he shall pay to the Secretary a civil penalty of $10 for each employee with respect to whom such failure occurs, unless it is shown that such failure is due to reasonable cause. -SOURCE- (Pub. L. 93-406, title I, Sec. 209, Sept. 2, 1974, 88 Stat. 865.) -MISC1- REGULATIONS Secretary authorized, effective Sept. 2, 1974, to promulgate regulations wherever provisions of this subchapter call for the promulgation of regulations, see section 1031 of this title. -End- -CITE- 29 USC Sec. 1060 01/06/03 -EXPCITE- TITLE 29 - LABOR CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS Subtitle B - Regulatory Provisions part 2 - participation and vesting -HEAD- Sec. 1060. Multiple employer plans -STATUTE- (a) Plan maintained by more than one employer Notwithstanding any other provision of this part or part 3, the following provisions of this subsection shall apply to a plan maintained by more than one employer: (1) Section 1052 of this title shall be applied as if all employees of each of the employers were employed by a single employer. (2) Sections 1053 and 1054 of this title shall be applied as if all such employers constituted a single employer, except that the application of any rules with respect to breaks in service shall be made under regulations prescribed by the Secretary. (3) The minimum funding standard provided by section 1082 of this title shall be determined as if all participants in the plan were employed by a single employer. (b) Maintenance of plan of predecessor employer For purposes of this part and part 3 - (1) in any case in which the employer maintains a plan of a predecessor employer, service for such predecessor shall be treated as service for the employer, and (2) in any case in which the employer maintains a plan which is not the plan maintained by a predecessor employer, service for such predecessor shall, to the extent provided in regulations prescribed by the Secretary of the Treasury, be treated as service for the employer. (c) Plan maintained by controlled group of corporations For purposes of sections 1052, 1053, and 1054 of this title, all employees of all corporations which are members of a controlled group of corporations (within the meaning of section 1563(a) of title 26, determined without regard to section 1563(a)(4) and (e)(3)(C) of title 26) shall be treated as employed by a single employer. With respect to a plan adopted by more than one such corporation, the minimum funding standard of section 1082 of this title shall be determined as if all such employers were a single employer, and allocated to each employer in accordance with regulations prescribed by the Secretary of the Treasury. (d) Plan of trades or businesses under common control For purposes of sections 1052, 1053, and 1054 of this title, under regulations prescribed by the Secretary of the Treasury, all employees of trades or businesses (whether or not incorporated) which are under common control shall be treated as employed by a single employer. The regulations prescribed under this subsection shall be based on principles similar to the principles which apply in the case of subsection (c) of this section. -SOURCE- (Pub. L. 93-406, title I, Sec. 210, Sept. 2, 1974, 88 Stat. 866; Pub. L. 101-239, title VII, Secs. 7891(a)(1), 7894(c)(10), Dec. 19, 1989, 103 Stat. 2445, 2449.) -MISC1- AMENDMENTS 1989 - Subsec. (c). Pub. L. 101-239, Sec. 7894(c)(10), substituted "and (e)(3)(C) of such Code" for "and (e)(3)(C) of such code", which for purposes of codification was translated as "and (e)(3)(C) of title 26" thus requiring no change in text. Pub. L. 101-239, Sec. 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. EFFECTIVE DATE OF 1989 AMENDMENT 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(c)(10) 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. REGULATIONS Secretary authorized, effective Sept. 2, 1974, to promulgate regulations wherever provisions of this subchapter call for the promulgation of regulations, see section 1031 of this title. -End- -CITE- 29 USC Sec. 1061 01/06/03 -EXPCITE- TITLE 29 - LABOR CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS Subtitle B - Regulatory Provisions part 2 - participation and vesting -HEAD- Sec. 1061. Effective dates -STATUTE- (a) Except as otherwise provided in this section, this part shall apply in the case of plan years beginning after September 2, 1974. (b)(1) Except as otherwise provided in subsection (d) of this section, sections 1055, 1056(d) and 1058 of this title shall apply with respect to plan years beginning after December 31, 1975. (2) Except as otherwise provided in subsections (c) and (d) of this section in the case of a plan in existence on January 1, 1974, this part shall apply in the case of plan years beginning after December 31, 1975. (c)(1) In the case of a plan maintained on January 1, 1974, pursuant to one or more agreements which the Secretary finds to be collective bargaining agreements between employee organizations and one or more employers, no plan shall be treated as not meeting the requirements of sections 1054 and 1055 of this title by reason of a supplementary or special plan provision (within the meaning of paragraph (2)) for any plan year before the year which begins after the earlier of - (A) the date on which the last of such agreements relating to the plan terminates (determined without regard to any extension thereof agreed to after September 2, 1974), or (B) December 31, 1980. For purposes of subparagraph (A) and section 1086(c) (!1) of this title, any plan amendment made pursuant to a collective bargaining agreement relating to the plan which amends the plan solely to conform to any requirement contained in this chapter or the Internal Revenue Code of 1986 shall not be treated as a termination of such collective bargaining agreement. This paragraph shall not apply unless the Secretary determines that the participation and vesting rules in effect on September 2, 1974, are not less favorable to participants, in the aggregate, than the rules provided under sections 1052, 1053, and 1054 of this title. (2) For purposes of paragraph (1), the term "supplementary or special plan provision" means any plan provision which - (A) provides supplementary benefits, not in excess of one-third of the basic benefit, in the form of an annuity for the life of the participant, or (B) provides that, under a contractual agreement based on medical evidence as to the effects of working in an adverse environment for an extended period of time, a participant having 25 years of service is to be treated as having 30 years of service. (3) This subsection shall apply with respect to a plan if (and only if) the application of this subsection results in a later effective date for this part than the effective date required by subsection (b) of this section. (d) If the administrator of a plan elects under section 1017(d) of this Act to make applicable to a plan year and to all subsequent plan years the provisions of the Internal Revenue Code of 1986 relating to participation, vesting, funding, and form of benefit, this part shall apply to the first plan year to which such election applies and to all subsequent plan years. (e)(1) No pension plan to which section 1052 of this title applies may make effective any plan amendment with respect to breaks in service (which amendment is made or becomes effective after January 1, 1974, and before the date on which section 1052 of this title first becomes effective with respect to such plan) which provides that any employee's participation in the plan would commence at any date later than the later of - (A) the date on which his participation would commence under the break in service rules of section 1052(b) of this title, or (B) the date on which his participation would commence under the plan as in effect on January 1, 1974. (2) No pension plan to which section 1053 of this title applies may make effective any plan amendment with respect to breaks in service (which amendment is made or becomes effective after January 1, 1974, and before the date on which section 1053 of this title first becomes effective with respect to such plan) if such amendment provides that the nonforfeitable benefit derived from employer contributions to which any employee would be entitled is less than the lesser of the nonforfeitable benefit derived from employer contributions to which he would be entitled under - (A) the break in service rules of section 1052(b)(3) of this title, or (B) the plan as in effect on January 1, 1974. Subparagraph (B) shall not apply if the break in service rules under the plan would have been in violation of any law or rule of law in effect on January 1, 1974. (f) The preceding provisions of this section shall not apply with respect to amendments made to this part in provisions enacted after September 2, 1974. -SOURCE- (Pub. L. 93-406, title I, Sec. 211, Sept. 2, 1974, 88 Stat. 867; Pub. L. 99-272, title XI, Sec. 11015(a)(1)(B), Apr. 7, 1986, 100 Stat. 265; Pub. L. 101-239, title VII, Secs. 7891(a)(1), 7894(h)(2), Dec. 19, 1989, 103 Stat. 2445, 2451.) -REFTEXT- REFERENCES IN TEXT Section 1086(c) of this title, referred to in subsec. (c)(1), was in the original "section 307(c)", meaning section 307(c) of Pub. L. 93-406, the Employee Retirement Income Security Act of 1974. Section 307(c) was renumbered section 308(c) by Pub. L. 100-203, title IX, Sec. 9341(b)(1), Dec. 22, 1987, 101 Stat. 1330-370. This chapter, referred to in subsec. (c)(1), was in the original "this Act", meaning Pub. L. 93-406, known as the Employee Retirement Income Security Act of 1974. Titles I, III, and IV of such Act are classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note set out under section 1001 of this title and Tables. The Internal Revenue Code of 1986, referred to in subsecs. (c)(1) and (d), is classified generally to Title 26, Internal Revenue Code. Section 1017(d) of this Act, referred to in subsec. (d), is section 1017 of Pub. L. 93-406, which is set out as an Effective Date; Transitional Rules note under section 410 of Title 26. -MISC1- AMENDMENTS 1989 - Subsecs. (c)(1), (d). Pub. L. 101-239, Sec. 7891(a)(1), substituted "Internal Revenue Code of 1986" for "Internal Revenue Code of 1954". Subsec. (f). Pub. L. 101-239, Sec. 7894(h)(2), added subsec. (f). 1986 - Subsec. (c)(1). Pub. L. 99-272 made a technical amendment to the reference to section 1086(c) of this title to reflect the renumbering of the corresponding section of the original act. EFFECTIVE DATE OF 1989 AMENDMENT 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(h)(2) 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 1986 AMENDMENT Amendment by Pub. L. 99-272 applicable with respect to applications for waivers, extensions, and modifications filed on or after Apr. 7, 1986, see section 11015(a)(3) of Pub. L. 99-272, set out as an Effective Date note under section 1085a of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 1086 of this title. -FOOTNOTE- (!1) See References in Text note below. -End- -CITE- 29 USC part 3 - funding 01/06/03 -EXPCITE- TITLE 29 - LABOR CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS Subtitle B - Regulatory Provisions part 3 - funding -HEAD- PART 3 - FUNDING -SECREF- PART REFERRED TO IN OTHER SECTIONS This part is referred to in sections 1060, 1103, 1132, 1201, 1202 of this title. -End- -CITE- 29 USC Sec. 1081 01/06/03 -EXPCITE- TITLE 29 - LABOR CHAPTER 18 - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM SUBCHAPTER I - PROTECTION OF EMPLOYEE BENEFIT RIGHTS Subtitle B - Regulatory Provisions part 3 - funding -HEAD- Sec. 1081. Coverage -STATUTE- (a) Plans excepted from applicability of this part This part shall apply to any employee pension benefit plan described in section 1003(a) of this title, (and not exempted under section 1003(b) of this title), other than - (1) an employee welfare benefit plan; (2) an insurance contract plan described in subsection (b) of this section; (3) a plan which is unfunded and is maintained by an employer primarily for the purpose of providing deferred compensation for a select group of management or highly compensated employees; (4)(A) a plan which is established and maintained by a society, order, or association described in section 501(c)(8) or (9) of title 26, if no part of the contributions to or under such plan are made by employers of participants in such plan; or (B) a trust described in section 501(c)(18) of title 26; (5) a plan which has not at any time after September 2, 1974, provided for employer contributions; (6) an agreement providing payments to a retired partner or deceased partner or a deceased partner's successor in interest as described in section 736 of title 26; (7) an individual retirement account or annuity as described in section 408(a) of title 26, or a retirement bond described in section 409 of title 26 (as effective for obligations issued before January 1, 1984); (8) an individual account plan (other than a money purchase plan) and a defined benefit plan to the extent it is treated as an individual account plan (other than a money purchase plan) under section 1002(35)(B) of this title; (9) an excess benefit plan; or (10) any plan, fund or program under which an employer, all of whose stock is directly or indirectly owned by employees, former employees or their beneficiaries, proposes through an unfunded arrangement to compensate retired employees for benefits which were forfeited by such employees under a pension plan maintained by a former employer prior to the date such pension plan became subject to this chapter. (b) "Insurance contract plan" defined For the purposes of paragraph (2) of subsection (a) of this section a plan is an "insurance contract plan" if - (1) the plan is funded exclusively by the purchase of individual insurance contracts, (2) such contracts provide for level annual premium payments to be paid extending not later than the retirement age for each individual participating in the plan, and commencing with the date the individual became a participant in the plan (or, in the case of an increase in benefits, commencing at the time such increase became effective), (3) benefits provided by the plan are equal to the benefits provided under each contract at normal retirement age under the plan and are guaranteed by an insurance carrier (licensed under the laws of a State to do business with the plan) to the extent premiums have been paid, (4) premiums payable for the plan year, and all prior plan years under such contracts have been paid before lapse or there is reinstatement of the policy, (5) no rights under such contracts have been subject to a security interest at any time during the plan year, and (6) no policy loans are outstanding at any time during the plan year. A plan funded exclusively by the purchase of group insurance contracts which is determined under regulations prescribed by the Secretary of the Treasury to have the same characteristics as contracts described in the preceding sentence shall be treated as a plan described in this subsection. (c) Applicability of this part to terminated multiemployer plans This part applies, with respect to a terminated multiemployer plan to which section 1321 of this title applies, until the last day of the plan year in which the plan terminates, within the meaning of section 1341a(a)(2) of this title. (d) Financial assistance from Pension Benefit Guaranty Corporation Any amount of any financial assistance from the Pension Benefit Guaranty Corporation to any plan, and any repayment of such amount, shall be taken into account under this section in such manner as determined by the Secretary of the Treasury. -SOURCE- (Pub. L. 93-406, title I, Sec. 301, Sept. 2, 1974, 88 Stat. 868; Pub. L. 96-364, title III, Sec. 304(a), title IV