29 U.S.C. § 1341a : US Code - Section 1341A: Termination of multiemployer plans

Search 29 U.S.C. § 1341a : US Code - Section 1341A: Termination of multiemployer plans

(a) Determinative factors
Termination of a multiemployer plan under this section occurs as
a result of -
(1) the adoption after September 26, 1980, of a plan amendment
which provides that participants will receive no credit for any
purpose under the plan for service with any employer after the
date specified by such amendment;
(2) the withdrawal of every employer from the plan, within the
meaning of section 1383 of this title, or the cessation of the
obligation of all employers to contribute under the plan; or
(3) the adoption of an amendment to the plan which causes the
plan to become a plan described in section 1321(b)(1) of this
title.
(b) Date of termination
(1) The date on which a plan terminates under paragraph (1) or
(3) of subsection (a) of this section is the later of -
(A) the date on which the amendment is adopted, or
(B) the date on which the amendment takes effect.
(2) The date on which a plan terminates under paragraph (2) of
subsection (a) of this section is the earlier of -
(A) the date on which the last employer withdraws, or
(B) the first day of the first plan year for which no employer
contributions were required under the plan.
(c) Duties of plan sponsor of amended plan
Except as provided in subsection (f)(1) of this section, the plan
sponsor of a plan which terminates under paragraph (2) of
subsection (a) of this section shall -
(1) limit the payment of benefits to benefits which are
nonforfeitable under the plan as of the date of the termination,
and
(2) pay benefits attributable to employer contributions, other
than death benefits, only in the form of an annuity, unless the
plan assets are distributed in full satisfaction of all
nonforfeitable benefits under the plan.
(d) Duties of plan sponsor of nonoperative plan
The plan sponsor of a plan which terminates under paragraph (2)
of subsection (a) of this section shall reduce benefits and suspend
benefit payments in accordance with section 1441 of this title.
(e) Amount of contribution of employer under amended plan for each
plan year subsequent to plan termination date
In the case of a plan which terminates under paragraph (1) or (3)
of subsection (a) of this section, the rate of an employer's
contributions under the plan for each plan year beginning on or
after the plan termination date shall equal or exceed the highest
rate of employer contributions at which the employer had an
obligation to contribute under the plan in the 5 preceding plan
years ending on or before the plan termination date, unless the
corporation approves a reduction in the rate based on a finding
that the plan is or soon will be fully funded.
(f) Payment of benefits; reporting requirements for terminated
plans and rules and standards for administration of such plans
(1) The plan sponsor of a terminated plan may authorize the
payment other than in the form of an annuity of a participant's
entire nonforfeitable benefit attributable to employer
contributions, other than a death benefit, if the value of the
entire nonforfeitable benefit does not exceed $1,750. The
corporation may authorize the payment of benefits under the terms
of a terminated plan other than nonforfeitable benefits, or the
payment other than in the form of an annuity of benefits having a
value greater than $1,750, if the corporation determines that such
payment is not adverse to the interest of the plan's participants
and beneficiaries generally and does not unreasonably increase the
corporation's risk of loss with respect to the plan.
(2) The corporation may prescribe reporting requirements for
terminated plans, and rules and standards for the administration of
such plans, which the corporation considers appropriate to protect
the interests of plan participants and beneficiaries or to prevent
unreasonable loss to the corporation.