29 U.S.C. § 1305 : US Code - Section 1305: Pension benefit guaranty funds

Search 29 U.S.C. § 1305 : US Code - Section 1305: Pension benefit guaranty funds

(a) Establishment of four revolving funds on books of Treasury of
the United States
There are established on the books of the Treasury of the United
States for revolving funds to be used by the corporation in
carrying out its duties under this subchapter. One of the funds
shall be used with respect to basic benefits guaranteed under
section 1322 of this title, one of the funds shall be used with
respect to basic benefits guaranteed under section 1322a of this
title, one of the funds shall be used with respect to nonbasic
benefits guaranteed under section 1322 of this title (if any), and
the remaining fund shall be used with respect to nonbasic benefits
guaranteed under section 1322a of this title (if any), other than
subsection (g)(2) thereof (if any). Whenever in this subchapter
reference is made to the term "fund" the reference shall be
considered to refer to the appropriate fund established under this
subsection.
(b) Credits to funds; availability of funds; investment of moneys
in excess of current needs
(1) Each fund established under this section shall be credited
with the appropriate portion of -
(A) funds borrowed under subsection (c) of this section,
(B) premiums, penalties, interest, and charges collected under
this subchapter,
(C) the value of the assets of a plan administered under
section 1342 of this title by a trustee to the extent that they
exceed the liabilities of such plan,
(D) the amount of any employer liability payments under
subtitle D of this subchapter, to the extent that such payments
exceed liabilities of the plan (taking into account all other
plan assets),
(E) earnings on investments of the fund or on assets credited
to the fund under this subsection,
(F) attorney's fees awarded to the corporation, and
(G) receipts from any other operations under this subchapter.
(2) Subject to the provisions of subsection (a) of this section,
each fund shall be available -
(A) for making such payments as the corporation determines are
necessary to pay benefits guaranteed under section 1322 or 1322a
of this title or benefits payable under section 1350 of this
title,
(B) to purchase assets from a plan being terminated by the
corporation when the corporation determines such purchase will
best protect the interests of the corporation, participants in
the plan being terminated, and other insured plans,
(C) to repay to the Secretary of the Treasury such sums as may
be borrowed (together with interest thereon) under subsection (c)
of this section,
(D) to pay the operational and administrative expenses of the
corporation, including reimbursement of the expenses incurred by
the Department of the Treasury in maintaining the funds, and the
Comptroller General in auditing the corporation, and
(E) to pay to participants and beneficiaries the estimated
amount of benefits which are guaranteed by the corporation under
this subchapter and the estimated amount of other benefits to
which plan assets are allocated under section 1344 of this title,
under single-employer plans which are unable to pay benefits when
due or which are abandoned.
(3) Whenever the corporation determines that the moneys of any
fund are in excess of current needs, it may request the investment
of such amounts as it determines advisable by the Secretary of the
Treasury in obligations issued or guaranteed by the United States
but, until all borrowings under subsection (c) of this section have
been repaid, the obligations in which such excess moneys are
invested may not yield a rate of return in excess of the rate of
interest payable on such borrowings.
(c) Authority to issue notes or other obligations; purchase by
Secretary of the Treasury as public debt transaction
The corporation is authorized to issue to the Secretary of the
Treasury notes or other obligations in an aggregate amount of not
to exceed $100,000,000, in such forms and denominations, bearing
such maturities, and subject to such terms and conditions as may be
prescribed by the Secretary of the Treasury. Such notes or other
obligations shall bear interest at a rate determined by the
Secretary of the Treasury, taking into consideration the current
average market yield on outstanding marketable obligations of the
United States of comparable maturities during the month preceding
the issuance of such notes or other obligations of the corporation.
The Secretary of the Treasury is authorized and directed to
purchase any notes or other obligations issued by the corporation
under this subsection, and for that purpose he is authorized to use
as a public debt transaction the proceeds from the sale of any
securities issued under chapter 31 of title 31, and the purposes
for which securities may be issued under that chapter, are extended
to include any purchase of such notes and obligations. The
Secretary of the Treasury may at any time sell any of the notes or
other obligations acquired by him under this subsection. All
redemptions, purchases, and sales by the Secretary of the Treasury
of such notes or other obligations shall be treated as public debt
transactions of the United States.
(d) Establishment of fifth fund; purpose, availability, etc.
(1) A fifth fund shall be established for the reimbursement of
uncollectible withdrawal liability under section 1402 of this
title, and shall be credited with the appropriate -
(A) premiums, penalties, and interest charges collected under
this subchapter, and
(B) earnings on investments of the fund or on assets credited
to the fund.
The fund shall be available to make payments pursuant to the
supplemental program established under section 1402 of this title,
including those expenses and other charges determined to be
appropriate by the corporation.
(2) The corporation may invest amounts of the fund in such
obligations as the corporation considers appropriate.
(e) Establishment of sixth fund; purpose, availability, etc.
(1) A sixth fund shall be established for the supplemental
benefit guarantee program provided under section 1322a(g)(2) of
this title.
(2) Such fund shall be credited with the appropriate -
(A) premiums, penalties, and interest charges collected under
section 1322a(g)(2) of this title, and
(B) earnings on investments of the fund or on assets credited
to the fund.
The fund shall be available for making payments pursuant to the
supplemental benefit guarantee program established under section
1322a(g)(2) of this title, including those expenses and other
charges determined to be appropriate by the corporation.
(3) The corporation may invest amounts of the fund in such
obligations as the corporation considers appropriate.
(f) Deposit of premiums into separate revolving fund
(1) A seventh fund shall be established and credited with -
(A) premiums, penalties, and interest charges collected under
section 1306(a)(3)(A)(i) of this title (not described in
subparagraph (B)) to the extent attributable to the amount of the
premium in excess of $8.50,
(B) premiums, penalties, and interest charges collected under
section 1306(a)(3)(E) of this title, and
(C) earnings on investments of the fund or on assets credited
to the fund.
(2) Amounts in the fund shall be available for transfer to other
funds established under this section with respect to a single-
employer plan but shall not be available to pay -
(A) administrative costs of the corporation, or
(B) benefits under any plan which was terminated before October
1, 1988,
unless no other amounts are available for such payment.
(3) The corporation may invest amounts of the fund in such
obligations as the corporation considers appropriate.
(g) Other use of funds; deposits of repayments
(1) Amounts in any fund established under this section may be
used only for the purposes for which such fund was established and
may not be used to make loans to (or on behalf of) any other fund
or to finance any other activity of the corporation.
(2) None of the funds borrowed under subsection (c) of this
section may be used to make loans to (or on behalf of) any fund
other than a fund described in the second sentence of subsection
(a) of this section.
(3) Any repayment to the corporation of any amount paid out of
any fund in connection with a multiemployer plan shall be deposited
in such fund.
(h) Voting by corporation of stock paid as liability
Any stock in a person liable to the corporation under this
subchapter which is paid to the corporation by such person or a
member of such person's controlled group in satisfaction of such
person's liability under this subchapter may be voted only by the
custodial trustees or outside money managers of the corporation.