The corporation may institute proceedings under this section to terminate a plan whenever it determines that-
The corporation shall as soon as practicable institute proceedings under this section to terminate a single-employer plan whenever the corporation determines that the plan does not have assets available to pay benefits which are currently due under the terms of the plan. The corporation may prescribe a simplified procedure to follow in terminating small plans as long as that procedure includes substantial safeguards for the rights of the participants and beneficiaries under the plans, and for the employers who maintain such plans (including the requirement for a court decree under subsection (c)). Notwithstanding any other provision of this subchapter, the corporation is authorized to pool assets of terminated plans for purposes of administration, investment, payment of liabilities of all such terminated plans, and such other purposes as it determines to be appropriate in the administration of this subchapter.
If the court to which application is made under subsection (c) dismisses the application with prejudice, or if the corporation fails to apply for a decree under subsection (c), within 30 days after the date on which the trustee is appointed under subsection (b), the trustee shall transfer all assets and records of the plan held by him to the plan administrator within 3 business days after such dismissal or the expiration of such 30-day period, and shall not be liable to the plan or any other person for his acts as trustee except for willful misconduct, or for conduct in violation of the provisions of part 4 of subtitle B of subchapter I of this chapter (except as provided in subsection (d)(1)(A)(v)).2 The 30-day period referred to in this subparagraph may be extended as provided by agreement between the plan administrator and the corporation or by court order obtained by the corporation.
An application by the corporation under this section may be filed notwithstanding the pendency in the same or any other court of any bankruptcy, mortgage foreclosure, or equity receivership proceeding, or any proceeding to reorganize, conserve, or liquidate such plan or its property, or any proceeding to enforce a lien against property of the plan.
Upon the filing of an application for the appointment of a trustee or the issuance of a decree under this section, the court to which an application is made shall have exclusive jurisdiction of the plan involved and its property wherever located with the powers, to the extent consistent with the purposes of this section, of a court of the United States having jurisdiction over cases under chapter 11 of title 11. Pending an adjudication under subsection (c) such court shall stay, and upon appointment by it of a trustee, as provided in this section such court shall continue the stay of, any pending mortgage foreclosure, equity receivership, or other proceeding to reorganize, conserve, or liquidate the plan or its property and any other suit against any receiver, conservator, or trustee of the plan or its property. Pending such adjudication and upon the appointment by it of such trustee, the court may stay any proceeding to enforce a lien against property of the plan or any other suit against the plan.
An action under this subsection may be brought in the judicial district where the plan administrator resides or does business or where any asset of the plan is situated. A district court in which such action is brought may issue process with respect to such action in any other judicial district.
1 So in original. Probably should be "subtitle E".
2 See References in Text note below.
3 So in original.
29 U.S.C. § 1342
EDITORIAL NOTES
REFERENCES IN TEXTSubsection (d)(1)(A)(v), referred to in subsec. (d)(1)(A), was redesignated subsec. (d)(1)(A)(vi) of this section by Pub. L. 96-364, title IV, §402(a)(6)(E)(ii), Sept. 26, 1980, 94 Stat. 1298.This chapter, referred to in subsec. (d)(3), 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.
AMENDMENTS2008-Subsec. (c)(3)(C)(i). Pub. L. 110-458 substituted ", the plan sponsor, or the corporation" for "and plan sponsor" and "subparagraph (A)" for "subparagraph (A)(i)".2006-Subsec. (c). Pub. L. 109-280designated first par. as par. (1), redesignated par. (3) as (2), and added a new par. (3).1994-Subsec. (a)(3). Pub. L. 103-465 substituted "1343(c)(7)" for "1343(b)(7)". 1989-Subsec. (a). Pub. L. 101-239, §7893(e), inserted period after "terms of the plan" at end of second sentence. Pub. L. 101-239, §7881(g)(7), made technical correction to directory language of Pub. L. 100-203, §9314(b), see 1987 Amendment note below.Subsecs. (a)(1), (d)(3). Pub. L. 101-239, §7891(a)(1), substituted "Internal Revenue Code of 1986" for "Internal Revenue Code of 1954", which for purposes of codification was translated as "title 26" thus requiring no change in text. 1987-Subsec. (a). Pub. L. 100-203, §9314(b), as amended by Pub. L. 101-239, §7881(g)(7), amended last sentence generally. Prior to amendment, last sentence read as follows: "The corporation is authorized to pool the assets of terminated plans for purposes of administration and such other purposes, not inconsistent with its duties to the plan participants and the employer maintaining the plan under this subchapter, as it determines to be required for the efficient administration of this subchapter." Another section 9314(b) of Pub. L. 100-203 amended subsec. (c) of this section, see below.Subsec. (c)(3). Pub. L. 100-203, §9314(b), added par. (3). Another section 9314(b) of Pub. L. 100-203amended subsec. (a) of this section, see above.Subsec. (i). Pub. L. 100-203, §9312(c)(3), struck out subsec. (i) which read as follows: "In any case in which a plan is terminated under this section in a termination proceeding initiated by the corporation pursuant to subsection (a), the corporation shall establish a separate trust in connection with the plan for purposes of section 1349 of this title, unless the corporation determines that all benefit commitments under the plan are benefits guaranteed by the corporation under section 1322 of this title or that there is no amount of unfunded benefit commitments under the plan." 1986- Pub. L. 99-272, §11010(c), substituted "Institution of termination proceedings by the corporation" for "Termination by corporation" in section catchline.Subsec. (a). Pub. L. 99-272, §11010(a)(1)(B), in provision following par. (4) inserted provision that the corporation as soon as practicable institute proceedings under this section to terminate a single-employer plan whenever the corporation determines that the plan does not have assets available to pay benefits currently due under the terms of the plan.Subsec. (a)(2). Pub. L. 99-272, §11010(a)(1)(A), substituted "will be" for "is". Subsec. (b)(1). Pub. L. 99-272, §11010(a)(2)(A), inserted "or is required under subsection (a) to institute proceedings under this section,".Subsec. (c). Pub. L. 99-272, §11010(a)(2)(B), substituted "is required under subsection (a) of this section to commence proceedings under this section with respect to a plan or, after issuing a notice under this section to a plan administrator," for "has issued a notice under this section to a plan administrator and (whether or not a trustee has been appointed under subsection (b))".Subsec. (d)(1)(B)(ii). Pub. L. 99-272, §11016(c)(10), inserted ", including but not limited to the power to collect from the persons obligated to meet the requirements of section 1082 of this title or the terms of the plan".Subsec. (d)(3). Pub. L. 99-272, §11016(c)(11), substituted "those of a trustee under section 704 of title 11" for "a trustee appointed under section 75 of title 11".Subsec. (i). Pub. L. 99-272, §11010(b), added subsec. (i).1980-Subsec. (a). Pub. L. 96-364, §402(a)(6)(A), substituted "terminated plans" for "such small plans".Subsec. (b). Pub. L. 96-364, §402(a)(6)(B), redesignated existing provisions as par. (1) and added pars. (2) and (3).Subsec. (c). Pub. L. 96-364, §402(a)(6)(C), (D), substituted "unreasonable" for "further" wherever appearing, and "of the participants or" for "of the participants and".Subsec. (d)(1)(A). Pub. L. 96-364, §402(a)(6)(E), added cls. (v) and (vii) and redesignated former cl. (v) as (vi).Subsec. (d)(1)(B). Pub. L. 96-364, §402(a)(6)(F), (G), in cl. (i) substituted "requirements of this subchapter" for "allocation requirements of section 1344 of this title", and in cl. (iv) struck out exception respecting adverse party status of corporation.Subsec. (d)(2)(D) to (F). Pub. L. 96-364, §402(a)(6)(H)-(J), added subpars. (D) to (F). 1978-Subsec. (f). Pub. L. 95-598 substituted "of a court of the United States having jurisdiction over cases under chapter 11 of title 11" for "of a court of bankruptcy and of a court in a proceeding under chapter X of the Bankruptcy Act" in first sentence and struck out "bankruptcy," before "mortgage foreclosure" in second sentence.
STATUTORY NOTES AND RELATED SUBSIDIARIES
EFFECTIVE DATE OF 2008 AMENDMENT Amendment by Pub. L. 110-458 effective as if included in the provisions of Pub. L. 109-280 to which the amendment relates, except as otherwise provided, see section 112 of Pub. L. 110-458 set out as a note under section 72 of Title 26, Internal Revenue Code.
EFFECTIVE DATE OF 2006 AMENDMENT Amendment by Pub. L. 109-280 applicable to any plan termination under this subchapter with respect to which the notice of intent to terminate, or in the case of a termination by the Pension Benefit Guaranty Corporation, a notice of determination under this section occurs after Aug. 17, 2006, with transition rule, see section 506(c) of Pub. L. 109-280 set out as a note under section 1341 of this title.
EFFECTIVE DATE OF 1994 AMENDMENT Pub. L. 103-465, title VII, §771(f), Dec. 8, 1994, 108 Stat. 5043, provided that: "The amendments made by this section [amending this section and section 1343 of this title] shall be effective for events occurring 60 days or more after the date of enactment of this Act [Dec. 8, 1994]."
EFFECTIVE DATE OF 1989 AMENDMENT Amendment by section 7881(g)(7) of Pub. L. 101-239 effective, except as otherwise provided, as if included in the provision of the Pension Protection Act, Pub. L. 100-203, §§9302 - 9346, to which such amendment relates, see section 7882 of Pub. L. 101-239 set out as a note under section 401 of Title 26, Internal Revenue Code.Amendment by section 7891(a)(1) of Pub. L. 101-239 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99-514, to which such amendment relates, see section 7891(f) of Pub. L. 101-239 set out as a note under section 1002 of this title.Amendment by section 7893(e) of Pub. L. 101-239 effective 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, see section 7893(h) of Pub. L. 101-239set out as a note under section 1002 of this title.
EFFECTIVE DATE OF 1987 AMENDMENT Amendment by section 9312(c)(3) of Pub. L. 100-203 applicable with respect to plan terminations under section 1341 of this title with respect to which notices of intent to terminate are provided under section 1341(a)(2) of this title after Dec. 17, 1987, and plan terminations with respect to which proceedings are instituted by the Pension Benefit Guaranty Corporation under this section after that date, see section 9312(d)(1) of Pub. L. 100-203 as amended, set out as a note under section 1301 of this title.
EFFECTIVE DATE OF 1986 AMENDMENT Amendment by Pub. L. 99-272 effective 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.
EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95-598 effective Oct. 1, 1979, see section 402(a) of Pub. L. 95-598 set out as an Effective Date note preceding section 101 of Title 11, Bankruptcy.