In the case of the termination of a single-employer plan, the plan administrator shall allocate the assets of the plan (available to provide benefits) among the participants and beneficiaries of the plan in the following order:
For purposes of subparagraph (A), the lowest benefit in pay status during a 3-year period shall be considered the benefit in pay status for such period.
For purposes of this paragraph, section 1321 of this title shall be applied without regard to subsection (c) thereof.
For purposes of subsection (a)-
Any increase or decrease in the value of the assets of a single-employer plan occurring during the period beginning on the later of (1) the date a trustee is appointed under section 1342(b) of this title or (2) the date on which the plan is terminated is to be allocated between the plan and the corporation in the manner determined by the court (in the case of a court-appointed trustee) or as agreed upon by the corporation and the plan administrator in any other case. Any increase or decrease in the value of the assets of a single-employer plan occurring after the date on which the plan is terminated shall be credited to, or suffered by, the corporation.
shall be treated as a participant with respect to the termination, if all or part of the nonforfeitable benefit with respect to such person is or was attributable to participants' mandatory contributions (referred to in subsection (a)(2)).
If a contributing sponsor of a plan has filed or has had filed against such person a petition seeking liquidation or reorganization in a case under title 11 or under any similar Federal law or law of a State or political subdivision, and the case has not been dismissed as of the termination date of the plan, then subsection (a)(3) shall be applied by treating the date such petition was filed as the termination date of the plan.
In the case of a terminated plan, the value of the recovery of liability under section 1362(c) of this title allocable as a plan asset under this section for purposes of determining the amount of benefits payable by the corporation shall be determined by multiplying-
For purposes of this subsection-
Except as provided in subparagraph (C), the term "section 1362(c) recovery ratio" means the ratio which-
A plan termination described in this subparagraph is a termination with respect to which-
In the case of a terminated plan with respect to which the outstanding amount of benefit liabilities exceeds $20,000,000, the term "section 1362(c) recovery ratio" means, with respect to the termination of such plan, the ratio of-
This subsection shall not apply with respect to the determination of-
Determinations under this subsection shall be made by the corporation. Such determinations shall be binding unless shown by clear and convincing evidence to be unreasonable.
29 U.S.C. § 1344
EDITORIAL NOTES
REFERENCES IN TEXTThe enactment of the Omnibus Budget Reconciliation Act of 1990, referred to in subsec. (d)(4), is the enactment of Pub. L. 101-508 which was approved Nov. 5, 1990.
AMENDMENTS2008-Subsecs. (e), (f). Pub. L. 110-458 redesignated subsec. (e) relating to valuation of section 1362(c) liability for determining amounts payable by corporation to participants and beneficiaries as (f).2006-Subsec. (a)(4)(B). Pub. L. 109-280, §407(b)(1), substituted "1322(b)(5)(B)" for "1322(b)(5)". Subsec. (b)(2). Pub. L. 109-280, §407(b)(2)(A), substituted "(4), (5)," for "(5)".Subsec. (b)(3) to (7). Pub. L. 109-280, §407(b)(2)(B), added par. (3) and redesignated former pars. (3) to (6) as (4) to (7), respectively.Subsec. (e). Pub. L. 109-280, §408(b)(2), added subsec. (e) relating to valuation of section 1362(c) liability for determining amounts payable by corporation to participants and beneficiaries. Pub. L. 109-280, §404(b), added subsec. (e) relating to substitution of bankruptcy filing date for termination date.1990-Subsec. (d)(4). Pub. L. 101-508 added par. (4).1989-Subsec. (a)(1). Pub. L. 101-239, §7894(g)(2), substituted "accrued" for "accured". Subsec. (b)(4). Pub. L. 101-239, §7891(a)(1), substituted "Internal Revenue Code of 1986" for "Internal Revenue Code of 1954", which for purposes of codification was translated as "title 26" thus requiring no change in text.Subsec. (d)(3). Pub. L. 101-239, §7881(e)(3), made technical correction to directory language of Pub. L. 100-203, §9311(b)(2), see 1987 Amendment note below. 1987-Subsec. (b)(4). Pub. L. 100-203, §9311(c), struck out reference to section 405(a) of title 26.Subsec. (d)(1). Pub. L. 100-203, §9311(b)(1), substituted "Subject to paragraph (3), any" for "Any".Subsec. (d)(2). Pub. L. 100-203, §9311(a)(1)(B), added par. (2). Former par. (2) redesignated (3).Subsec. (d)(3). Pub. L. 100-203, §9311(b)(2), as amended by Pub. L. 101-239, §7881(e)(3), added par. (3), and struck out former par. (3) which read as follows: "Notwithstanding the provisions of paragraph (1), if any assets of the plan attributable to employee contributions, remain after all liabilities of the plan to participants and their beneficiaries have been satisfied, such assets shall be equitably distributed to the employees who made such contributions (or their beneficiaries) in accordance with their rate of contributions." Pub. L. 100-203, §9311(a)(1)(A), redesignated former par. (2) as (3).1986-Subsec. (a). Pub. L. 99-272, §11016(c)(12), in provision preceding par. (1) struck out "defined benefit" after "single-employer".Subsec. (a)(4)(A). Pub. L. 99-272, §11016(c)(13)(A), substituted "section 1322b(a)" for "section 1322(b)(5)".Subsec. (a)(4)(B). Pub. L. 99-272, §11016(c)(13)(B), substituted "section 1322(b)(5)" for "section 1322(b)(6)".1980-Subsec. (a). Pub. L. 96-364, §402(a)(7)(A), inserted "single-employer" before "defined benefit".Subsec. (c). Pub. L. 96-364, §402(a)(7)(B), inserted "single-employer" before "plan occurring" wherever appearing.Subsec. (d)(1). Pub. L. 96-364, §402(a)(7)(C), inserted "single-employer" after "assets of a".
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 section 404(b) of Pub. L. 109-280 applicable with respect to proceedings initiated under Title 11, Bankruptcy, or under any similar Federal law or law of a State or political subdivision, on or after the date that is 30 days after Aug. 17, 2006, see section 404(c) of Pub. L. 109-280 set out as a note under section 1322 of this title.Amendment by section 407(b) of Pub. L. 109-280 applicable to plan terminations under section 1341(c) of this title with respect to which notices of intent to terminate are provided under section 1341(a)(2) of this title after Dec. 31, 2005, and under section 1342 of this title with respect to which notices of determination are provided under such section after such date, see section 407(d)(1) of Pub. L. 109-280 set out as a note under section 1321 of this title. Amendment by section 408(b)(2) of Pub. L. 109-280 applicable for any termination for which notices of intent to terminate are provided, or in the case of a termination by the corporation, a notice of determination under section 1342 of this title is issued, on or after the date which is 30 days after Aug. 17, 2006, see section 408(c) of Pub. L. 109-280 set out as a note under section 1322 of this title.
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 7881(e)(3) of Pub. L. 101-239 effective, except as otherwise provided, as if included in the provision of the Pension Protection Act, Pub. L. 100-203, §§9302 - 9346, to which such amendment relates, see section 7882 of Pub. L. 101-239 set out as a note under section 401 of Title 26, Internal Revenue Code.Amendment by section 7891(a)(1) of Pub. L. 101-239 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99-514, to which such amendment relates, see section 7891(f) of Pub. L. 101-239 set out as a note under section 1002 of this title.Amendment by section 7894(g)(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 Pub. L. 100-203, title IX, §9311(d), Dec. 22, 1987, 101 Stat. 1330-360, as amended by Pub. L. 101-239, title VII, §7881(e)(2), Dec. 19, 1989, 103 Stat. 2439, provided that: "The amendments made by this section [amending this section] shall apply with respect to-"(1) plan terminations under section 4041 of ERISA [29 U.S.C. 1341] with respect to which notices of intent to terminate are provided under section 4041(a)(2) of ERISA after December 17, 1987, and"(2) plan terminations with respect to which proceedings are instituted by the Pension Benefit Guaranty Corporation under section 4042 of ERISA [29 U.S.C. 1342] after December 17, 1987.Except as provided in subsection (a)(2) [set out below], the amendments made by subsection (a) [amending this section] shall apply to any provision of the plan or plan amendment adopted after December 17, 1987."
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.
TRANSITIONAL RULE RELATING TO RESTRICTIONS ON EMPLOYER REVERSIONS UPON PLAN TERMINATION PURSUANT TO RECENTLY AMENDED PLANSPub. L. 100-203, title IX, §9311(a)(2), Dec. 22, 1987, 101 Stat. 1330-359, as amended by Pub. L. 101-239, title VII, §7881(e)(1), (4), Dec. 19, 1989, 103 Stat. 2439, 2440, provided that: "The amendments made by paragraph (1) [amending this section] shall apply, in the case of plans which, as of December 17, 1987, have no provision relating to the distribution of residual plan assets upon termination, only with respect to plan amendments providing for the distribution of plan assets to the employer which are adopted after December 17, 1988."
SPECIAL TEMPORARY RULE FOR TERMINATION OF SINGLE-EMPLOYER PLANFor special temporary rule relating to requirements to be met before the final distribution of assets in the case of the termination of certain single-employer plans with respect to which the amount payable to the employer pursuant to subsec. (d) of this section exceeds $1,000,000, see section 11008(d) of Pub. L. 99-272 set out as a note under section 1341 of this title.