29 U.S.C. § 1307 : US Code - Section 1307: Payment of premiums

Search 29 U.S.C. § 1307 : US Code - Section 1307: Payment of premiums

(a) Premiums payable when due; accrual; waiver or reduction
The designated payor of each plan shall pay the premiums imposed
by the corporation under this subchapter with respect to that plan
when they are due. Premiums under this subchapter are payable at
the time, and on an estimated, advance, or other basis, as
determined by the corporation. Premiums imposed by this subchapter
on September 2, 1974 (applicable to that portion of any plan year
during which such date occurs) are due within 30 days after such
date. Premiums imposed by this subchapter on the first plan year
commencing after September 2, 1974, are due within 30 days after
such plan year commences. Premiums shall continue to accrue until a
plan's assets are distributed pursuant to a termination procedure,
or until a trustee is appointed pursuant to section 1342 of this
title, whichever is earlier. The corporation may waive or reduce
premiums for a multiemployer plan for any plan year during which
such plan receives financial assistance from the corporation under
section 1431 of this title, except that any amount so waived or
reduced shall be treated as financial assistance under such
section.
(b) Late payment charge; waiver
If any basic benefit premium is not paid when it is due the
corporation is authorized to assess a late payment charge of not
more than 100 percent of the premium payment which was not timely
paid. The preceding sentence shall not apply to any payment of
premium made within 60 days after the date on which payment is due,
if before such date, the designated payor obtains a waiver from the
corporation based upon a showing of substantial hardship arising
from the timely payment of the premium. The corporation is
authorized to grant a waiver under this subsection upon application
made by the designated payor, but the corporation may not grant a
waiver if it appears that the designated payor will be unable to
pay the premium within 60 days after the date on which it is due.
If any premium is not paid by the last date prescribed for a
payment, interest on the amount of such premium at the rate imposed
under section 6601(a) of title 26 (relating to interest on
underpayment, nonpayment, or extensions of time for payment of tax)
shall be paid for the period from such last date to the date paid.
(c) Civil action to recover premium penalty and interest
If any designated payor fails to pay a premium when due, the
corporation is authorized to bring a civil action in any district
court of the United States within the jurisdiction of which the
plan assets are located, the plan is administered, or in which a
defendant resides or is found for the recovery of the amount of the
premium penalty, and interest, and process may be served in any
other district. The district courts of the United States shall have
jurisdiction over actions brought under this subsection by the
corporation without regard to the amount in controversy.
(d) Basic benefits guarantee not stopped by designated payor's
failure to pay premiums when due
The corporation shall not cease to guarantee basic benefits on
account of the failure of a designated payor to pay any premium
when due.
(e) Designated payor
(1) For purposes of this section, the term "designated payor"
means -
(A) the contributing sponsor or plan administrator in the case
of a single-employer plan, and
(B) the plan administrator in the case of a multiemployer plan.
(2) If the contributing sponsor of any single-employer plan is a
member of a controlled group, each member of such group shall be
jointly and severally liable for any premiums required to be paid
by such contributing sponsor. For purposes of the preceding
sentence, the term "controlled group" means any group treated as a
single employer under subsection (b), (c), (m), or (o) of section
414 of title 26.