text:
Page:United States Statutes at Large Volume 88 Part 1.djvu/1038

 994

PUBLIC LAW 93-406-SEPT. 2, 1974

26 USC 401.

26 USC 277.

26 USC 404.

26

1

note

26

1

use

404

use

122

[88 STAT.

" (A) such individual, if he is or was an employee within the meaning of section 401(c)(1), shall be treated (with respect to service covered by the plan) as being an employee other than an employee within the meaning of section 401(c)(1) and as being an employee of a participating employer under the plan, " (B) earnings derived from service covered by the plan shall be treated as not being earned income within the meaning of section 401(c)(2), and " (C) such individual shall be treated as an employee of a participating employer under the plan with respect to service before July 1, 1975, covered by the plan. Section 277 (relating to deductions incurred by certain membership organizations in transactions with members) does not apply to any trust described in this subsection.". (b) OTHER AMENDMENTS TO SECTION 4 0 4 (C)(1).—

(1) Paragraph (1) of the first sentence of section 404(c) is amended by striking out "and pensions" and inserting in lieu thereof "or pensions". (2) The last sentence of section 404(c) is amended by striking out "This subsection" and inserting in lieu thereof "The first and third sentences of this subsection". (c) EFFECTIVE DATE.—The amendments m.ade by this section shall apply to taxable years ending on or after June 30, 1972. SEC. 2007. RULES FOR CERTAIN NEGOTIATED PLANS.

10 USC 1431.

(a) IN GENERAL.—Section 122(a) (relating to certain reduced uniformed services retired pay) is amended to read as follows: " (a) GENERAL RULE.—In the case of a member or former member of the uniformed services of the United States, gross income does not include the amount of any reduction in his retired or retainer pay pursuant to the provisions of chapter 73 of title 10, United States Code.". (b) TECHNICAL AMENDMENTS.—

Ante, p

991.

26

use 101.

26

use 2039.

26

use

note

122

(1) Section 122(b)(2) is amended by striking out "section 1438" in subparagraph (B) and inserting in lieu thereof "section 1438 or 1452(d)". (2) Section 72(o) is amended by inserting after "Plan" in the heading of such section "or Survivor Benefit Plan". (3) Section 101(b)(2)(D) is amended by striking out ''if the individual who made the election under such chapter" and inserting in lieu thereof "if the member or former member of the uniformed services by reason of whose death such annuity is payable". (4) Section 2039(c) is amended by striking out "section 1438" in the last sentence and inserting in lieu thereof "section 1438 or 1452(d)". (c) EFFECTIVE DATES.—The amendments made by this section apply to taxable years ending on or after September 21, 1972. The amendments made by paragraphs (3) and (4) of subsection (b) apply with respect to individuals dying on or after such date.

�


text:
Page:United States Statutes at Large Volume 88 Part 1.djvu/1039

 88 STAT. ]

PUBLIC LAW 93-406-SEPT. 2, 1974

995

TITLE III—JURISDICTION, ADMINISTRATION, ENFORCEMENT; JOINT PENSION TASK FORCE, ETC. Subtitle A—Jurisdiction, Administration, and Enforcement PROCEDURP:S I N C O N N E C T I O N W I T H THE I S S U A N C E OF CERTAIN D E T E R M I N A -

T I O N LETTERS BY THE SECRETARY OF THE TREASURY

SEC. 3001.(a) Before issuing an advance determination of whether a pension, profit-sharing, or stock bonus plan, a trust which is a part of such a plan, or an annuity or bond purchase plan meets the requirements of part I of subchapter D of chapter 1 of the Internal Revenue Code of 1954, the Secretary of the Treasury shall require the person applying for the determination to provide, in addition to any material and information necessary for such determination, such other material and information as may reasonably be made available at the time such application is made as the Secretary of Labor may require under title I of this Act for the administration of that title. The Secretary of the Treasury shall also require that the applicant provide evidence satisfactory to the Secretary that the applicant has notified each employee who qualifies as an interested party (within the meaning of regulations prescribed under section 7476(b)(1) of such Code (relating to declaratory judgments in connection with the qualification of certain retirement plans)) of the application for a determination. (b)(1) Whenever an application is made to the Secretary of the Treasury for a determination of whether a pension, profit-sharing, or stock bonus plan, a trust which is a part of such a plan, or an annuity or bond purchase plan meets the requirements of part I of subchapter D of chapter 1 of the Internal Revenue Code of 1954, the Secretary shall upon request afford an opportunity to comment on the application at any time within 45 days after receipt thereof to— (A) any employee or class of employee qualifying as an interested party within the meaning of the regulations referred to in subsection (a). (B) the Secretary of Labor, and (C) the Pension Benefit Guaranty Corporation. (2) The Secretary of Labor may not request an opportunity to comment upon such an application unless he has been requested in writing to do so by the Pension Benefit Guaranty Corporation or by the lesser of— (A) 10 employees, or (B) 10 percent of the employees who qualify as interested parties within the meaning of the regulations referred to in subsection (a). Upon receiving such a request, the Secretary of Labor shall furnish a copy of the request to the Secretary of the Treasury within 5 days (excluding Saturdays, Sundays, and legal public holidays (as set forth in section 6103 of title 5, United States Code)). (3) Upon receiving such a request from the Secretary of Labor, the Secretary of the Treasury shall furnish to the Secretary of Labor such information held by the Secretary of the Treasury relating to the application as the Secretary of Labor may request. (4) The Secretary of Labor shall, within 30 days after receiving a request from the Pension Benefit Guaranty Corporation or from the

29 USC 1201.

26 USC 401.

^"'^' P- ^^2.

'^"'^' P" ^'^'^'

�

license: Creative Commons - Attribution Share-Alike - https://creativecommons.org/licenses/by-sa/4.0/


text:
Page:United States Statutes at Large Volume 88 Part 1.djvu/1040

 996

Ante. p. 949.

26 USC 401.

Ante, p. 832.

86t"8^74^^' ^^^' ^

Ante, p. 898.

PUBLIC LAW 93-406-SEPT. 2, 1974

[88 STAT.

necessary number of employees who qualify as interested parties, notify the Secretary of the Treasury, the Pension Benefit Guaranty Corporation, and such employees with respect to whether he is going to comment on the application to which the request relates and with respect to any matters raised in such request on which he is not going to comment. If the Secretary of Labor indicates in the notice required under the preceding sentence that he is not going to comment on all or part of the matters raised in such request, the Secretary of the Treasury shall afford the corporation, and such employees, an opportunity to comment on the application with respect to any matter on which the Secretary of Labor has declined to comment. (c) The Pension Benefit Guaranty Corporation and, upon petition of a group of employees referred to in subsection (b)(2), the Secretary of Labor, may intervene in any action brought for declaratory judg^^^^ ^^^^^. g^^.^'^^j^ ^^^^Q ^f ^J^g Internal Revenue Code of i9'54 in accordance with the provisions of such section. The Pension Benefit Guaranty Corporation is permitted to bring an action under such section 7476 under such rules as may be prescribed by the United States Tax Court. (d) If the Secretary of the Treasury determines that a plan or trust to which this section applies meets the applicable re<|iiirements of part I of subchapter D of chapter 1 of the Internal Revenue Code of 1954 and issues a determination letter to the applicant, the Secretary shall notify the Secretary of Labor of his determination and furnish such information and material relating to the application and determination held by the Secretary of the Treasury as the Secretary of Labor ^^^^ rcqucst for the proper administration of title I of this Act. The Secretary of Labor shall accept the determination of the Secretary of the Treasury as prima facie evidence of initial compliance by the plan with the standards of parts 2, 3, and 4 of subtitle B of title I of this Act. If an application for such a determination is withdrawn, or if the Secretary of the Treasury issues a determination that the plan or tnist does not meet the requirements of such part I, the Secretary shall notify the Secretary of Labor of the withdrawal or determination. (e) This section does not apply with respect to an application for any plan received by the Secretary of the Treasury before the date ^j^ which section 410 of the Internal Reveruie Code of 1954 applies to the plan, or on which such section will apply if the plan is determined by the Secretary to be a qualified plan. PROCEDURES WITH RESPECT TO CONTINUED COMPLIANCE WITH REQUIREMENTS RELATING TO PARTICIPATION, VESTING, AND FUNDING STANDARDS

29 USC 1202.

Ante, p. 901.

26 USC 1 et seq.

SFC. 3002. (a) In carrying out the provisions of part I of subchapter D of chapter 1 of the Internal Revenue Code of 1954 with respect to whether a plan or a trust meets the requirements of section 410(a) or 411 of such Code (relating to minimum participation standards and minimum vesting standards, respectively), the Secretary of the Treasury shall notify the Secretary of Labor when the Secretary of the Treasury issues a preliminary notice of intent to disqualify related to the plan or trust or, if earlier, at the time of commencing any proceeding to determine whether the plan or trust satisfies such requirements. Unless the Secretary of the Treasury finds that the collection of a tax imposed under the Internal Revenue Code of 1954 is in jeopardy, the Secretary of the Treasury shall not issue a determination that the plan or trust does not satisfy the requirements of such section until

�


text:
Page:United States Statutes at Large Volume 88 Part 1.djvu/1041

 88 STAT. ]

PUBLIC LAW 93^06-SEPT. 2, 1974

997

the expiration of a period of 60 days after the date on which he notifies the Secretary of Labor of such review. The Secretary of the Treasury, in his discretion, may extend the 60-day period referred to in the preceding sentence if he determines that such an extension would enable the Secretary of Labor to obtain compliance with such requirements by the plan within the extension period. Except as otherwise provided in this Act, the Secretary of Labor shall not generally apply part 2 of title I of this Act to any plan or trust subject to sections ^^fe, p. 852. 410(a) and 411 of such Code, but shall refer alleged general violations g^^"'"'' PP- ^^^' of the vesting or participation standards to the Secretary of the Treasury. (The preceding sentence shall not apply to matters relating to individuals benefits.) of (b) Unless the Secretary of the Treasury finds that the collection of d eNoticec y. ficien a tax is in jeopardy, in carrying out the provisions of section 4971 of the Internal Revenue Code of 1954 (relating to taxes on the failure to ^"'^' P- ^^^'• meet minimum funding standards), the Secretary of the Treasury shall notify the Secretary of Labor before sending a notice of deficiency with respect to any tax imposed under that section on an employer, and, in accordance with the provisions of subsection (d) of that section, afford the Secretary of Labor an opportunity to comment on the imposition of the tax in the case. The Secretary of the Treasury may waiver. waive the imposition of the tax imposed under section 4971(b) of such Code in appropriate cases. Upon receiving a written request from the Secretary of Labor or from the Pension Benefit Guaranty Corporation, the Secretary of the Treasury shall cause an investigation to be commenced expeditiously with respect to whether the tax imposed under section 4971 of such Code should be applied with respect to anj^ employer to which the request relates. The Secretary of the Treasury and the Secretary of Labor shall consult with each other from time to time with respect to the provisions of section 412 of the Internal Revenue Code of 1954 (relating to minimum funding standards) and ^"^^' P- ^i'^with respect to the funding standards applicable under title I of this Act in order to coordinate the rules applicable under such standards. (c) Regulations prescribed by the Secretary of the Treasury under sections 410(a), 411, and 412 of the Internal Revenue Code of 1954 (relating to minimum participation standards, minimum vesting standards, and minimum funding standards, respectively) shall also apply to the minimum participation, vesting, and funding standards set forth in parts 2 and 3 of subtitle B of title I of this Act. Except Ante, pp. 852, as otherwise expressly provided in this Act, the Secretary of Labor 8 6 8. shall not prescribe other regulations under such parts, or apply the regulations prescribed by the Secretary of the Treasury under sections 410(a), 411, 412 of the Internal Revenue Code of 1954 and applicable to the minimum participation, vesting, and funding standards under such parts in a manner inconsistent with the way such regulations apply under sections 410(a), 411, and 412 of such Code. (d) The Secretary of Labor and the Pension Benefit Guaranty Review of Corporation, before filing briefs in any case involving the construc- b r i e f s. tion or application of minimum participation standards, minimum vesting standards, or minimum funding standards under title I of this Act, shall afford the Secretary of the Treasury a reasonable Ante, p. 8 3 2 opportunity to review any such brief. The Secretary of the Treasury shall have the right to intervene in any such case.

�


text:
Page:United States Statutes at Large Volume 88 Part 1.djvu/1042

 998

PUBLIC LAW 93-406-SEPT. 2, 1974 PROCEDURES IX

29 USC 1203, Ante,

p. 9 7 1.

Ante,

p. 832.

Ante, p. 879.

COXNECTIOX W I T H

rROIHBITED

[88 STAT.

TRANSACTIONS

SEC. 3003. (a) Unless the Secretary of the Treasury finds that the collection of a tax is in jeopardy, in carrying out the provisions of section 4975 of the Internal Revenue Code of 1954 (relating to tax on prohibited transactions) the Secretary of the Treasury shall, in accordance with the provisions of subsection (h) of such section, notify the Secretary of Labor before sending a notice of deficiency with respect to the tax imposed by subsection (a) or (b) of such section, and, in accordance with the provisions of subsection (h) of such section, afford the Secretary an opportunity to comment on the imposition of the tax in any case. The Secretary of the Treasury shall have authority to waive the imposition of the tax imposed under section 4975(b) in appropriate cases. Upon receiving a written request from the Secretary of Labor or from the Pension Benefit Guaranty Corporation, the Secretary of the Treasury shall cause an investigation to be carried out with respect to whether the tax imposed by section 4975 of such Code should be applied to any person referred to in the request. (b) The Secretary of the Treasury and the Secretary of Labor shall consult with each other from time to time with respect to the provisions of section 4975 of the Internal Revenue Code of 1954 (relating to tax on prohibited transactions) and with respect to the provisions of title I of this Act relating to prohibited transactions and exemptions therefrom in order to coordinate the rules applicable under such standards. (c) Whenever the Secretary of Labor obtains information indicating that a party-in-interest or disqualified person is violating section ^QQ Qf ^^jjjg j^^f^^ ]jg gljall transmit such information to the Secretary of the Treasury. COORDINATION B E T W E E N THE DEPARTMENT OF THE TREASURY AND DEPARTMENT OF LABOR

29 USC 1204.

THE

SEC. 3004. (a) Whenever in this Act or in any provision of law amended by this Act the Secretary of the Treasury and the Secretary of Labor are required to carry out provisions relating to the same subject matter (as determined by them) they shall consult with each other and shall develop rules, regulations, practices, and forms which, to the extent appropriate for the efficient administration of such provisions, are designed to reduce duplication of effort, duplication of reporting, conflicting or overlapping requirements, and the burden of compliance with such provisions by plan administrators, employers, and participants and beneficiaries. (b) I n order to avoid unnecessary expense and duplication of functions among Government agencies, the Secretary of the Treasury and the Secretary of Labor may make such arrangements or agreements for cooperation or mutual assistance in the performance of their functions under this Act, and the functions of any such agency as they find to be practicable and consistent with law. The Secretary of the Treasury and the Secretary of Labor may utilize, on a reimbursable or other basis, the facilities or services, of any department, agency, or establishment of the United States or of any State or political subdivision of a State, including the services, of any of its employees, with the lawful consent of such department, agency, or establishment; and each department, agency, or establishment of the United States is authorized and

�


text:
Page:United States Statutes at Large Volume 88 Part 1.djvu/1043

 88 STAT. ]

PUBLIC LAW 93-406-SEPT. 2, 1974

999

directed to cooperate with the Secretary of the Treasury and the Secretary of Labor and, to the extent permitted by law, to provide such information and facilities as they may request for their assistance in the performance of their functions under this Act. The Attorney General or his representative shall receive from the Secretary of the Treasury and the Secretary of Labor for appropriate action such evidence developed in the performance of their functions under this Act as may be found to warrant consideration for criminal prosecution under the provisions of this title or other Federal law.

Subtitle B—Joint Pension Task Force; Studies P A R T 1—JOINT P E N S I O N T A S K FOR C E ESTABLISHMENT

SEC. 3021. The staffs of the Committee on Ways and Means and the Committee on Education and Labor of the House of Representatives, the Joint Committee on Internal Revenue Taxation, and the Committee on Finance and the Committee on Labor and Public Welfare of the Senate shall carry out the duties assigned under this title to the Joint Pension Task Force. By agreement among the chairmen of such Committees, the Joint Pension Task Force shall be furnished with office space, clerical personnel, and such supplies and equipment as may be necessary for the Joint Pension Task Force to carry out its duties under this title.

29 USC 1221.

DUTIES

SEC. 3022. (a) The Joint Pension Task Force shall, within 24 months 29 USC 1222. after the date of enactment of this Act, make a full study and review of— (1) the eft'ect of the requirements of section 411 of the Internal Revenue Code of 1954 and of section 203 of this Act to determine Ante, pp. 901, the extent of discrimination, if any, among employees in various ^^^' age groups resulting from the application of such requirements; (2) means of providing for t^e portability of pension rights among different pension plans; (3) the appropriate treatment under title IV of this Act (relat- ^°sf, p. 1003. ing to termination insurance) of plans established and maintained by small employers; (4) the effects and desirability of the Federal preemption of State and local law with respect to matters relating to pension and similar plans; and (5) such other matter as any of the committees referred to in section 3021 may refer to it. Supra. (b) The Joint Pension Task Force shall report the results of its study and review to each of the committees referred to in section 3021. P A R T 2—OTHER S T U D I E S CONGRESSIONAL STUDY

SEC. 3031. (a) The Committee on Education and Labor and the Committee on Ways and Means of the House of Representatives and the Committee on Finance and the Committee on Labor and Public Welfare of the Senate shall study retirement plans established and maintained or ifinanced (directly or indirectly) by the Government of

29 USC 1231.

�


text:
Page:United States Statutes at Large Volume 88 Part 1.djvu/1044

 1000

PUBLIC LAW 93-406-SEPT. 2, 1974

[88 STAT.

the United States, by any State (including the District of Columbia) or political subdivision thereof, or by any agency or instrumentality of any of the foregoing. Such study shall include an analysis of;— (1) the adequacy of existing levels of participation, vesting, and financing ari-angements, (2) existing fiduciary standards, and (3) the necessity for Federal legislation and standards with respect to such plans. I n determining whether any such plan is adequately financed, each committee shall consider the necessity for minimum funding standards, as well as the taxing power of the government maintaining the plan. House°and°senate. 0^) ^ ^ t later thau December 31, 1976, the Committee on Education and Labor and the Committee on Ways and Means shall each submit to the House of Representatives the results of the studies conducted under this section, together with such recommendations as they deem appropriate. The Committee on Finance and the Committee on Labor and Public Welfare shall each submit to the Senate the results of the studies conducted under this section together with such recommendations as they deem appropriate not later than such date. PROTECTION FOR E M P L O Y E E S TJNDER FEDERAL P R O C U R E M E N T, CONSTRUCTION, AND RESEARCH CONTRACTS A N D GRANTS 29 USC 1232.

C(^^^esV°

Regulations.

SEC. 3032. (a) The Secretary of Labor shall, during the 2-year period beginning on the date of the enactment of this Act, conduct a full and complete study and investigation of the steps necessary to be taken to insure that professional, scientific, and technical personnel and others working in associated occupations employed under Federal procurement, construction, or research contracts or grants will, to the extent feasible, be protected against forfeitures of pension or retirement rights or benefits, otherwise provided, as a consequence of job transfers or loss of employment resulting from terminations or modifications of Federal contracts, grants, or procurement policies. "^^^ Secretary of Labor shall report the results of his study and investigation to the Congress within 2 years after the date of the enactment of this Act. The Secretary of Labor is authorized, to the extent provided by law, to obtain the services of private research institutions and such other persons by contract or other arrangement as he determines necessary in carrying out the provisions of this section. (b) In the course of conducting the study and investigation described in subsection (a), and in developing the regulations referred to in subsection (c), the Secretary of Labor shall consult— (1) with appropriate professional societies, business organizations, and labor organizations, and (2) with the heads of interested Federal departments and agencies. ^^^ Wlthiu 1 year after the date on which he submits his report to the Congress under subsection (a), the Secretary of Labor shall, if he determines it to be feasible, develop regulations which will provide the protection of pension and retirement rights and benefits referred to in subsection (a). (d)(1) Any regulations developed pursuant to subsection (c) shall take effect if, and only if— (A) the Secretary of Labor, not later than the day which is 3 years after the date of the enactment of this Act, delivers a copy of such regulations to the House of Representatives and a copy to the Senate, and

�


text:
Page:United States Statutes at Large Volume 88 Part 1.djvu/1045

 88 STAT. ]

PUBLIC LAW 93-406-SEPT. 2, 1974

1001

(B) before the close of the 120-day period which begins on the day on which the copies of such regulations are delivered to the House of Representatives and to the Senate, neither the House of Representatives nor the Senate adopts, by an affirmative vote of a majority of those present and voting in that House, a resolution of disapproval. "R ut (2) For purposes of this subsection, the term "resolution of disap- d i s a pepsrool v ailo"n of . proval" means only a resolution of either House of Congress, the matter after the resolving clause of which is as follows: "That the does not favor the taking effect of the regulations transmitted to the Congress by the Secretary of Labor on ", the first blank space therein being filled with the name of the resolving House and the second blank space therein being filled with the day and year. (3) A resolution of disapproval in the House of Representatives shall be referred to the Committee on Education and Labor. A resolution of disapproval in the Senate shall be referred to the Committee on Labor and Public Welfare. (4)(A) If the committee to which a resolution of disapproval has been referred has not reported it at the end of 7 calendar days after its introduction, it is in order to move either to discharge the committee from further consideration of the resolution or to discharge the committee from further consideration of any other resolution of disapproval which has been referred to the committee. (B) A motion to discharge may be made only by an individual favoring the resolution, is highly privileged (except that it may not be made after the committee has reported a resolution of disapproval), and debate thereon shall be limited to not more than 1 hour, to be divided equally between those favoring and those opposing the resolution. An amendment to the motion is not in order, and it is not in order to move to reconsider the vote by which the motion is agreed to or disagreed to. (C) If the motion to discharge is agreed to or disagreed to, the motion may not be renewed, nor may another motion to discharge the committee be made with respect to any other resolution of disapproval. (5)(A) When the committee has reported, or has been discharged from further consideration of, a resolution of disapproval, it is at any time thereafter in order (even though a previous motion to the same effect has been disagreed to) to move to proceed to the consideration of the resolution. The motion is highly privileged and is not debatable. An amendment to the motion is not in order, and it is not in order to move to reconsider the vote by which the motion is agreed to or disagreed to. (B) Debate on the resolution of disapproval shall be limited to not more than 10 hours, which shall be divided equally between those favoring and those opposing the resolution. A motion further to limit debate is not debatable. An amendment to, or motion to recommit, the resolution is not in order, and it is not in order to move to reconsider the vote by which the resolution is agreed to or disagreed to. (6)(A) Motions to postpone, made with respect to the discharge from committee or the consideration of a resolution of disapproval, and motions to proceed to the consideration of other business, shall be decided without debate. (B) Appeals from the decisions of the Chair relating to the appli- Appeals. cation of the rules of the House of Representatives or the Senate, as the case may be, to the procedure relating to any resolution of disapproval shall be decided without debate. (7) Whenever the Secretary of Labor transmits copies of the regu- H<!lte"andTenl'te. lations to the Congress, a copy of such regulations shall be delivered to

�


text:
Page:United States Statutes at Large Volume 88 Part 1.djvu/1046

 1002

PUBLIC LAW 93-406-SEPT. 2, 1974

[88 STAT.

each House of Congress on the same day and shall be delivered to the Clerk of the House of Representatives if the House is not in session and to the Secretary of the Senate if the Senate is not in session. (8) The 120 day period referred to in paragraph (1) siiall be computed by excluding— (A) the days on which either House is not in session because of an adjournment of more than 3 days to a day certain or an adjournment of the Congress sine die, and (B) any Saturday and Sunday, not excluded under subparagraph (A), when either House is not in session. (9) This subsection is enacted by the Congress— (A) as an exercise of the rulemaking power of the House of Representatives and the Senate, respectively, and as such they are deemed a part of the rules of each House, respectively, but applicable only with respect to the procedure to be followed in that House in the case of resolutions of disapproval described in paragraph (2); and they supersede other rules only to the extent that they are inconsistent therewith; and (B) with full recognition of the constitutional right of either House to change the rules (so far as relating to the procedures of that House) at any time, in the same manner and to the same extent as in the case of any other rule of that House.

Subtitle C—Enrollment of Actuaries ESTABLISHMENT OF JOINT BOARD FOR THE E N R O L L M E N T OF ACTUARIES

29 USC 1241.

gj,(._ 3041. The Secretary of Labor and the Secretary of the Treasury shall, not later than the last day of the first calendar month beginning after the date of the enactment of this Act, establish a Joint Board for the Enrollment of Actuaries (hereinafter in this part referred to as the "Joint Board"). E N R O L L M E N T BY JOINT BOARD

uaUffcaUonT'^ ''"29 USC 1242.

^^^- ^^^^- (^) '^'^^ Jolnt Board shall, by regulations, establish reasonable standards and qualifications for persons performing actuarial services with respect to plans in which this Act applies and, upon application by any individual, shall enroll such individual if the Joint Board finds that such individual satisfies such standards and qualifications. With respect to individuals applying for enrollment before January 1, 1976, such standards and qualifications shall include a requirement for an appropriate period of responsible actuarial experience relating to pension plans. With respect to individuals applying for enrollment on or after January 1, 1976, such standards and qualifications shall include— (1) education and training in actuarial mathematics and methodology, as evidenced by— (A) a degree in actuarial mathematics or its equivalent from an accredited college or university, ' (B) successful completion of an examination in actuarial mathematics and methodology to be given by the Joint Board, or (C) successful completion of other actuarial examinations deemed adequate by the Joint Board, and (2) an appropriate period of responsible actuarial experience. Notwithstanding the preceding provisions of this subsection, the Joint Board may provide for the temporary enrollment for the period end-

�


text:
Page:United States Statutes at Large Volume 88 Part 1.djvu/1047

 88 STAT. ]

PUBLIC LAW 93-406-SEPT. 2, 1974

ing on January 1, 1976, of actuaries under such interim standards as it deems adequate. (b) The Joint Board may, after notice and an opportunity for a hearing, suspend or terminate the enrollment of an individual under this section if the Joint Board finds that such individual— (1) has failed to discharge his duties under this Act, or (2) does not satisfy the requirements for enrollment as in ejffect at the time of his enrollment. The Joint Board may also, after notice and opportunity for hearing, suspend or terminate the temporary enrollment of an individual who fails to discharge his duties under this Act or Avho does not satisfy the interim enrollment standards. AMENDMENT

OF INTERNAL

REVENUE

1003

Enrollment termination.

Notice and hearing.

CODE

SEC. 3043. Section 7701(a) of the Internal Revenue Code of 1954 (relating to definitions) is amended by adding at the end thereof the following new paragraph: " (35) ENROLLED ACTUARY.—The term 'enrolled actuary' means a person who is enrolled by the Joint Board for the Enrollment of Actuaries established under subtitle C of the title III of the Employee Retirement Income Security Act of 1974."

26 USC 7701,

^"'^' P- ^ °°^

TITLE IV—PLAN TERMINATION INSURANCE Subtitle A—Pension Benefit Guaranty Corporation DEFINITIONS

SEC. 4001. (a) For purposes of this title, the term— (1) "administrator" means the person or persons described in paragraph (16) of section 3 of this Act; (2) "substantial employer" means for any plan year an employer (treating employers who are members of the same affiliated group, within the meaning of section 1563(a) of the Internal Revenue Code of 1954, determined without regard to section 1563(a)(4) and (e)(3)(C) of such Code, as one employer) who has made contributions to or under a plan under which more than one employer makes contributions for each of— (A) the two immediately preceding plan years, or (B) the second and third preceding plan years, equaling or exceeding 10 percent of all employer contributions paid to or under that plan for each such year; (3) "multiemployer plan" means a multiemployer plan as defined in section 414(f) of the Internal Revenue Code of 1954 (as added by this Act but without regard to whether such section is in effect on the date of enactment of this Act); (4) "corporation", except where the context clearly requires otherwise, means the Pension Benefit Guaranty Corporation established under section 4002; (5) "fund" means the appropriate fund established under section 4005; (6) "basic benefits" means benefits guaranteed under section 4022 other than under section 4022(c); and

29 USC 1301,

^"^^' P- ^^3-

26 USC 1563.

^"'®' P- ^^^

Post. p. 1004. Post, p. 1009. ^°s^» p- 1016.

�


text:
Page:United States Statutes at Large Volume 88 Part 1.djvu/1048

 1004 Post,

PUBLIC LAW 93-406-SEPT. 2, 1974 p. 1016.

26 USC 4 0 1.

Ante,

p. 925.

[88

STAT.

(7) "non-basic benefits" means benefits guaranteed under section 4022(c). (b) An individual who owns the entire interest in an unincorporated trade or business is treated as his own employer, and a partnership is treated as the employer of each partner who is an employee within the meaning of section 401(c)(1) of the Internal Revenue Code of 1954. For purposes of this title, under regulations prescribed by the corporation, all employees of trades or businesses (whether or not incorporated) which are under common control shall be treated as employed by a single employer and all such trades and businesses as a single employer. The regulations prescribed under the preceding sentence shall be consistent and coextensive with regulations prescribed for similar purposes by the Secretary of the Treasury under section 414(c) of the Internal Revenue Code of 1954. P E N S I O N B E N E F I T GUARANTY CORPORATION

Establishment. 29 USC 1302.

Post,

p. 1010..

Functions. D. C. e o d e 291001.

SEC. 4002. (a) There is established within the Department of Labor a body corporate to be known as the Pension Benefit Guaranty Corporation. I n carrying out its functions under this title, the corporation shall be administered by the chairman of the board of directors in accordance with policies established by the board. The purposes of this title, which are to be carried out by the corporation, are— (1) to encourage the continuation and maintenance of voluntary private pension plans for the benefit of their participants, (2) to provide for the timely and uninterrupted payment of pension benefits to participants and beneficiaries under plans to which this title applies, and (3) to maintain premiums established by the corporation under section 4006 at the lowest level consistent with carrying out its obligations under this title. (b) To carry out the purposes of this title, the corporation has the powers conferred on a nonprofit corporation under the District of Columbia Nonprofit Corporation Act and, in addition to any specific power granted to the corporation elsewhere in this title or under that Act, the corporation has the power— (1) to sue and be sued, complain and defend, in its corporate name and through its own counsel, in any court, State or Federal; (2) to adopt, alter, and use a corporate seal, which shall be judicially noticed; (3) to adopt, amend, and repeal, by the board of directors, bylaws, rules, and regulations relating to the conduct of its business and the exercise of all other rights and powers granted to it by this Act; (4) to conduct its business (including the carrying on of operations and the maintenance of offices) and to exercise all other rights and powers granted to it by this Act in any State or other jurisdiction without regard to qualification, licensing, or other requirements imposed by law in such State or other jurisdiction; (5) to lease, purchase, accept gifts or donations of, or otherwise to acquire, to own, hold, improve, use, or otherwise deal in or with, and to sell, convey, mortgage, pledge, lease, exchange, or otherwise dispose of, any property, real, personal, or mixed, or any interest therein wherever situated; (6) to appoint and fix the compensation of such officers, attorneys, employees, and agents as may be required, to determine their qualifications, to define their duties, and, to the extent desired by the corporation, require bonds for them and fix the penalty

�


text:
Page:United States Statutes at Large Volume 88 Part 1.djvu/1049

 88 STAT. ]

PUBLIC LAW 93^06-SEPT. 2, 1974

1005

thereof, and to appoint and fix the compensation of experts and consultants in accordance with the provisions of section 3109 of title 5, United States Code; (7) to utilize the personnel and facilities of any other agency or department of the United States Government, with or without reimbursement, with the consent of the head of such agency or department; and (8) to enter into contracts, to execute instruments, to incur liabilities, and to do any and all other acts and things as may be necessary or incidental to the conduct of its business and the exercise of all other rights and powers granted to the corporation by this Act. (c) Section 5108 of title 5, United States Code, is amended by adding at the end thereof the following new subsection: " (g) In addition to the number of positions authorized by subsection (a), the Pension Benefit Guaranty Corporation is authorized, without regard to any other provision of this section, to place one position in the corporation at GS-18 and a total of 10 positions in the corporation at GS-16 and 17.". (d) The board of directors of the corporation consists of the Secre- Membership. tary of the Treasury, the Secretary of Labor, and the Secretary of Commerce. Member's of the board shall serve without compensation, but shall be reimbursed for travel, subsistence, and other necessary expenses incurred in the performance of their duties as members of the board. The Secretary of Labor is the chairman of the board of directors. (e) The board of directors shall meet at the call of its chairman, or as otherwise provided by the bylaws of the corporation. (f) As soon as practicable, but not later than 180 days after the Bylaws and date of enactment of this Act, the board of directors shall adopt initial '^"^^^• bylaws and rules relating to the conduct of the business of the corporation. Thereafter, the board of directors may alter, supplement, or repeal any existing bylaw or rule, and may adopt additional bylaws and rules from time to time as may be necessary. The chairman of the Publication in board shall cause a copy of the bylaws of the corporation to be pub- ^^'^^^ Register. lished in the Federal Register not less often than once each year. (g)(1) The corporation, its property, its franchise, capital, reserves. Tax exemption. surplus, and its income (including, but not limited to, any income of any fund established under section 4005), shall be exempt from all taxation now oi- hereafter imposed by any State or local taxing authority, except that any real property and any tangible personal property (other than cash and securities) of the corporation shall be subject to State and local taxation to the same extent according to its value as other real and tangible personal property is taxed. (2) The receipts and disbursements of the corporation in the discharge of its functions shall not be included in the totals of the budget of the United States Government and shall be exempt from any general limitations imposed by statute on budget outlays of the United States. Except as explicitly provided in this title, the United States is not liable for any obligation or liability incurred by the corporation. (3) Section 101 of the Government Corporation Control Act (31 U.S.C. 846) is amended by inserting before the period a semicolon and the following: "and Pension Benefit Guaranty Corporation". (h)(1) There is established an advisory committee to the corpora- Advisory comtion, for the purpose of advising the corporation as to its policies and ""Establishment. procedvrres relating to (A) the appointment of trustees in termination proceedings, (B) investment of moneys, (C) whether plans being terminated should be liquidated immediately or continued in operation under a trustee, and (D) such other issues as the corporation may

�


text:
Page:United States Statutes at Large Volume 88 Part 1.djvu/1050

 1006

Membership.

'^^'"'"s-

Compensation.

5 USC 5332 note.

5 USC app. I.

PUBLIC LAW 93-406-SEPT. 2, 1974

[88 STAT.

request from time to time. The advisory committee may also recommend persons for appointment as trustees in termination proceedings, make recommendations with respect to the investment of moneys in the funds, and advise the corporation as to whether a plan subject to being terminated should be liquidated immediately or continued in operation under a trustee. ^2) The advisory committee consists of seven members appointed, from among individuals recommended by the board of directors, by the President. Of the seven members, two shall repr-esent the interests of employee organizations, two shall represent the interests of employer's who maint-ain pension plans, and three shall represent the interests of the general public. The President shall designate one member as chairman at the time of the appointment of that member. (3) Members shall serve for terms of o years each, except that, of the members first appointed, one of the members representing the interests of employee organizations, one of the members representing the interests of employers, and one of the members representing the interests of the general public shall be appointed for terms of 2 years each, one of the memberS representing the interests of the general public shall be appointed for a term of 1 year, and the other members shall be appointed to full 3-year terms. The advisory committee shall meet at least six times each year and at such other times as may be determined by the chairman or requested by any thi-ee members of the advisory committee. (4) Members shall be chosen on the basis of their experience with employee organizations, with employers who maintain pension plans, with the administration of pension plans, or otherwise on account of outstanding demonstrated ability in related fields. Of the members serving on the advisory committee at any time, no more than four shall be affiliated with the same political party. (5) An individual appointed to fill a vacancy occurring other than by the expiration of a term of office shall be appointed only for the unexpired term of the member he succeeds. Any vacancy occurring in the office of a membei- of the advisory committee shall be filled in the manner in which that office was originally filled. (^Q^ ^-'jjg advisory committee shall appoint and fix the compensation of such employees as it determines necessary to discharge its duties, including experts and consultants in accordance with the provisions of section 3109 of title 5, United States Code. The corporation shall furnish to the advisory committee such professional, secretarial, and other services as the committee may request. (T) Members of the advisory committee shall, for each day (including traveltime) during which they are attending meetings or conferences of the committee or otherwise engaged in the business of the committee, be compensated at a rate fixed by the corporation which is not in excess of the daily ecpiivalent of the annual rate of basic pay in effect for grade GS-IS of the General Schedule, and while away from their homes or regular places of business they may be allowed travel expenses, including per diem in lieu of subsistence, as authorized by section 5703 of title 5, United States Code. ^g^ rpj^g Federal Advisory Committee Act does not apply to the advisory committee established by this subsection. INVESTIGATORY AUTHORITY; COOPERATION WITH OTHER AGENCIES; CIVIL ACTIONS

29 USC 1303.

SEC. 4003. (a) deems necessary about to violate thereunder, and

The corporation may make such investigations as it to determine whether any person has violated or is any provision of this title or any rule or regulation may require or permit any person to file with it a

�


text:
Page:United States Statutes at Large Volume 88 Part 1.djvu/1051

 88 STAT. ]

PUBLIC LAW 93-406-SEPT. 2, 1974

1007

statement in writing, under oath or otherM-ise as the corporation shall determine, as to all the facts and circumstances concerning the matter to be investigated. (b) For the purpose of any such investigation, or any other proceeding under this title, any member of the board of directors of the corporation, or any officer designated by the chairman, may administer oaths and affirmations, subpena witnesses, compel their attendance, take evidence, and require the production of any books, papers, correspondence, memoranda, or other records which the corporation deems relevant or material to the inquiry. (c) In case of contumacy by, or refusal to obey a subpena issued to, any person, the corporation may invoke the aid of any court of the United States within the jurisdiction of which such investigation or proceeding is carried on, or Avhere such person resides or carries on business, in requiring the attendance and testimony of witnesses and the production of books, papers, correspondence, memoranda, and other records. The court may issue an order requiring such person to appear before the corporation, or member or officer designated by the corporation, and to produce records or to give testimony related to the matter under investigation or in question. Any failure to obey such order of the court may be punished by the court as a contempt thereof. All process in any such case may be served in the judicial district in which such person is an inhabitant or may be found. (d) I n order to avoid unnecessary expense and duplication of functions among government agencies, the corporation may make such arrangements or agreements for cooperation or mutual assistance in the performance of its functions under this title as is practicable and cohsistent with law. The corporation may utilize the facilities or services of any department, agency, or establishment of the United States or of any State or political subdivision of a State, including the services of any of its employees, with the lawful consent of such department, agency, or establishment. The head of each department, agency, or establishment of the United States shall cooperate with the corporation and, to the extent permitted by law, provide such information and facilities as it may request for its assistance in the performance of its functions under this title. The Attorney General or his representative shall receive from the corporation for appropriate action such evidence developed in the performance of its functions under this title as may be found to warrant consideration for criminal prosecution under the provisions of this or any other Federal law. (e)(1) Civil actions may be brought by the corporation for appropriate relief, legal or equitable or both, to redress violations of the provisions of this title. (2) Except as otherwise provided in this title, where such an action is brought in a district court of the United States, it may be brought in the district where the plan is administered, where the violation took place, or where a defendant resides or may be found, and process may be served in any other district where a defendant resides or may be found. (3) The district courts of the United States shall have jurisdiction jurisdiction. of actions brought by the corporation under this title without regard to the amount in controversy in any such action. (4) Upon application by the corporation to a court of the United States for expedited handling of any case in which the corporation is a party, it is the duty of that court to assign such case for hearing at the earliest practical date and to cause such case to be in every way expedited. (5) I n any action brought under this title, whether to collect premiums, penalties, and interest under section 4007 or for any other

�


text:
Page:United States Statutes at Large Volume 88 Part 1.djvu/1052

 1008

PUBLIC LA\^ 93-406-SEPT. 2, 1974

[88 STAT.

purpose, the court may award to the corporation all or a portion of the costs of litigation incurred by the corporation in connection with such action, (f) Any participant, beneficiary, plan administrator, or employee adversely affected by any action of the corporation, or by a receiver or trustee appointed by the corporation, with respect to a plan in which such participant, beneficiary, plan administrator or employer has an interest, may bring an action against the corporation, receiver, or trustee in the appropriate court. For purposes of this subsection the term "appropriate court" means the United States district court Posf, pp. 1020, before which proceedings under section 4041 or 4042 of this title are being conducted, or if no such proceedings are being conducted the United States district court for the district in which the plan has its principal office, or the United States district court for the District of Columbia. The district courts of the United States have jurisdiction of actions brought under this subsection without regard to the amount in controversy. TEMPORARY AUTHORITY 29 USC 1304.

FOR I N I T I A L

PERIOD

SEC. 4004. (a) Notwithstanding anything to the contrary in this title, the corporation may, upon receipt of notice that a plan is to be terminated or upon making a determination described in section 4042, appoint a receiver whose powers shall take effect immediately. The receiver shall assume control of such plan and its assets, protecting the interests of all interested persons during subsequent proceedings. (b)(1) Within a reasonable time, not exceeding 20 days, after the appointment of a receiver under subsection (a), the corporation shall apply to an appropriate United States district court for a decree approving such appointment. The court to which application is made shall issue a decree approving such appointment unless it determines that such approval would not be in the best interests of the participants and beneficiaries of the plan. (2) If the court to which application is made under paragraph (1) dismisses the application with prejudice, or if the corporation fails to apply for a decree under paragraph (1) within 20 days after the appointment of the receiver, the receiver 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 the 20 day period. The receiver shall not be liable to the plan or to any other person for his acts as receiver other than for willful misconduct, or for conduct in violation of the provisions of part 4 of subpart B of Ante, p. 874. title I of this Act (except to the extent that the provisions of section 4042(d)(1)(A) provide otherwise). (c) The corporation is authorized, as an alternative to appointing a receiver under subsection (a), to direct a plan administrator to apply to a district court of the United States for the appointment of a receiver to assume control of the plan and its assets for the purpose of protecting the interests of all interested persons until the plan can be terminated under the provisions of this title. (d) A receiver appointed under this section has the powers of a trustee under section 4042(d)(1)(A) and (B), and shall report to the corporation and the court on the plan from time to time as required by either the corporation or the court. As soon as practicable after his appointment, a receiver appointed under this section shall determine whether the assets of the plan are sufficient to discharge when due all obligations of the plan with respect to benefits guaranteed Post, p. 1025. under this title in accordance with the requirements of section 4044. If the determination of the receiver is approved by the corporation and the court, the receiver shall proceed as if he were a trustee appointed under section 4042.

�


text:
Page:United States Statutes at Large Volume 88 Part 1.djvu/1053

 88 STAT. ]

PUBLIC LAW 93-406-SEPT. 2, 1974

1TO9

(e) A receiver may not be appointed under this section more than 270 days after the date of enactment of this Act. (f) I n addition to its other powers under this title, for only the first 270 days after the date of enactment of this Act the corporation may— (1) contract for printing without regard to the provisions of chapter 5 of title 44, United States Code, 44 USC soi. (2) waive any notice required under this title if the corporation finds that a waiver is necessary or appropriate, (3) extend the 90-day period referred to in section 4041(a) for ^^ P- 1020. an additional 90 days without the agreement of the plan administrator and without application to a court as required under section 4041(d), and (4) waive the application of the provisions of sections 4062, 4063, and 4064 to, or reduce the liability imposed under such sec- jo^o^rosT ^°^^' tions on, any employer with respect to a plan terminating during that 270 day period if the corporation determines that such waiver or reduction is necessary to avoid unreasonable hardship in any case in which the employer was not able, as a practical matter, to continue the plan. ESTABLISHMENT OF PENSION BENEEIT GUARANTY FUNDS

SEC. 4005. (a) There are established on the books of the Treasury of the United States four revolving funds to be used by the corporation in carrying out its duties under this title. One of the funds shall be used in connection with benefits guaranteed under sections 4022 and 4023 (but not non-basic benefits) with respect to plans other than multiemployer plans, one of the funds shall be used with respect to such benefits guaranteed under such sections (other than non-basic benefits) for multiemployer plans, one of the funds shall be used with respect to non-basic benefits, if any are guaranteed by the corporation under section 4022, for plans which are not multiemployer plans, and the remaining fund shall be used with respect to non-basic benefits, if any are guaranteed by the corporation under section 4022, for multiemployer plans. Whenever in this title reference is made to the term "fund" the reference shall be considered to refer to the appropriate fund established under this subsection. (b)(1) Each fund established under this section shall be credited with the appropriate portion of— (A) funds borrowed under subsection (c), (B) premiums, penalties, interest, and charges collected under this title, (C) the value of the assets of a plan administered under section 4042 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, 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, and (F) receipts from any other operations under this title. (2) Subject to the provisions of subsection (a), each fund shall be available— (A) for making such payments as the corporation determines are necessary to pay benefits guaranteed under section 4022, (B) i o r making such payments as the corporation determines are necessarv under section 4023,

29 USC 1305.

�


text:
Page:United States Statutes at Large Volume 88 Part 1.djvu/1054

 1010

31 USC 774.

PUBLIC LAW 93-406-SEPT. 2, 1974

[88 STAT.

(C) 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, (D) to repay to the Secretary of the Treasury such sums as may be borrowed (together with interest thereon) under subsection (c), and (E) 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. (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) 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) 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 pi-eceding 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 the Second Libgp^y j^QYY^ ^f.^^ ^g amended, and the purposes for which securities may be issued under that Act, as amended, 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. P R E M I U M RATES

29 USC 1306.

gjjQ 4006. (a)(1) The corporation shall prescribe such insurance premiilm rates and such coverage schedules for the application of those rates as may be necessary to provide sufficient revenue to the fund for the corporation to carry out its functions under this title. The premium rates charged by the corporation for any period shall be uniform for all plans, other than multiemployer plans insured by the corporation, with respect to basic benefits guaranteed by it under section 4022, and shall be uniform for all multiemployer plans with respect to basic benefits guaranteed by it under such section. The premium rates charged by the corporation for any period for non-basic benefits guaranteed by it shall be uniform by category of non-basic benefit guaranteed, shall be based on the risk insured in each category, and shall reflect the experience of the corporation (including reasonably anticipated experience) in guaranteeing such benefits. (2) The corporation shall maintain separate coverage schedules for— (A) basic benefits guaranteed by it under section 4022 for— (i) plans which are multiemployer plans, and (ii) plans which are not multiemployer plans,

�


text:
Page:United States Statutes at Large Volume 88 Part 1.djvu/1055

 88 STAT. ]

PUBLIC LAW 93-406-SEPT. 2, 1974

1011

(B) employers insured under section 4023 against liability under subtitle D of this title, and (C) non-basic benefits. Except as provided in paragraph (3), the corporation may revise such schedules whenever it determines that revised rates are necessary, but a revised schedule described in subparagraph (A) shall apply only to plan years beginning more than 30 days after the date on which the Congress approves such revised schedule by a concurrent resolution. (3) Except as provided in paragraph (4), the rate for all plans for benefits guaranteed under section 4022 (other than non-basic benefits) with respect to plan years ending no more than 35 months after the effective date of this title is — (A) in the case of each plan which is not a multiemployer plan, an amount equal to one dollar for each individual who is a participant in such plan at any time during the plan year; and (B) in the case of a multiemployer plan, an amount equal to fifty cents for each individual who is a participant in such plan at any time during such plan year. The rate applicable under this paragraph to any plan the plan year of which does not begin on the date of enactment of this Act is a fraction of the rate described in the preceding sentence, the numerator of which is the number of months which end before the date on which the new plan year commences and the denominator of which is 12. The corporation is authorized to prescribe regulations under which the rate described in subparagraph (B) M'il] not apply to the same participant in any multiemployer plan more than once for any plan year. (4) Upon notification filed with the corporation not less than 60 days after the date on which the corporation publishes the rates applicable under paragraph (5), at the election of a plan the rate applicable to that plan with respect to the second full plan year to which this section applies beginning after the date of enactment of this Act shall be the greater of — (A) an alternative rate determined under paragraph (5), or (B) one-half of the rate applicable to the plan under paragraph In the case of a multiemployer plan, the rate prescribed by this paragraph (at the election of a plan) for the second full plan year is also the applicable rate for plan years succeeding the second full plan year and ending before the full plan year first commencing after becember 31, 1977. (5) In carrying out its authority under paragraph (1) to establish premium rates and bases for basic benefits guaranteed under section 4022 the corporation shall establish such rates and bases in coverage schedules for plan years beginning 24 months or more after the date of enactment of this Act in accordance with the provisions of this paragraph. The corporation shall publish the rate schedules first applicable under this paragraph in the Federal Register not later than 270 days after the date of enactment of this Act. (A) The corporation may establish annual premiums composed of— (i) a rate applicable to the excess, if any, of the present value of the basic benefits of the plan which are guaranteed over the value of the assets of the plan, not in excess of 0.1 percent for plans which are not multiemployer plans and not m excess of 0.025 percent for multiemployer plans, and (ii) an additional charge based on the rate applicable to the present value of the basic benefits of the plan which are guaranteed, determined separately for multiemployer plans and for plans which are not multiemployer plans.

P u b l i c a t i o n in Federal Register.

�


text:
Page:United States Statutes at Large Volume 88 Part 1.djvu/1056

 1012

Regulations.

res^sT*^'\°c^o^." mittees.

"Resolution."

PUBLIC LAW 93-406-SEPT. 2, 1974

[88 STAT.

The rate for the additional charge referred to in clause (ii) shall be set by the corporation for every year at a level (determined separately for multiemployer plans and for plans which are not multiemployer plans) which the corporation estimates will jdeld total revenue approximately equal to the total revenue to be derived by the corporation from the premiums referred to in clause (i) of this subparagraph, (B) The corporation may establish annual premiums based on— (i) the number of participants in a plan, but such premium rates shall not exceed the rates described in paragraph (3), (ii) unfunded basic benefits guaranteed under this title, but such premium rates shall not exceed the limitations applicable under subparagraph (A)(i), or (iii) total guaranteed basic benefits, but such premium rates may not exceed the rates determined under subparagraph (A) ( i i). If the corporation uses 2 or more of the rate bases described in this subparagraph, the premium rates shall be designed to pro(hice approximate]y equal amounts of aggregate premium revenue f lom each of the rate bases used. ^('^ -^pj^g corporation shall by regulation define the terms "value of the assets" and "present value of the benefits of the plan which are guaranteed" in a manner consistent with the purposes of this title aud the provisions of this section. (^)(1) ^^^ ordcr to place a revised coverage schedule (other than a schedulc described in subsection (a)(2)(B) or (C) in effect, the corporation shall transmit the proposed schedule, its proposed effective date, and the reasons for its proposal to the Committee on Ways and Means and the Committee on Education and Labor of the House ol' Representatives, and to the Committee on Finance and the Committee on Labor and Public Welfare of the Senate. (2) The succeeding paragraphs of this subsection are enacted by Congress as an exercise of the rulemaking power of the Senate and the I louse of Representatives, respectively, and as such they shall be deemed a part of the rules of each House, respectively, but applicable only with respect to the procedure to be followed in that House in the case of resolutions described in paragraph (3). They shall supersede other rules only to the extent that they are inconsistent therewith. They are enacted with full recognition of the constitutional right of either House to change the rules (so far as relating to the procedure of that House) at any time, in the same manner and to the same extent as in the case of any rule of that House. (3) jfor the purposc of the succeeding paragraphs of this subsection, "resolution" means only a concurrent resolution, the matter after- the resolving clause of which is as follows: "That the Congress favors the proposed revised coverage schedule transmitted to Congress by the Pension Benefit Guaranty Corporation on .", the blank space therein being filled with the date on which the corporation's message proposing the rate was delivered. (4) A resolution shall be referred to the Committee on Ways anil Means and the Committee on Education and Labor of the House of Representatives and to the Committee on Finance and the Committee on IjaboT- and Public Welfare of the Senate. (6) If a committee to which has been referred a resolution has not reported it before the expiration of 10 calendar days after its introduction, it shall then (but not before) be in order to move to discharge the committee from further consideration of that resolution, or to discharge the committee from further consideration of any other

�


text:
Page:United States Statutes at Large Volume 88 Part 1.djvu/1057

 88 STAT. ]

PUBLIC LAW 93-406-SEPT. 2, 1974

10L3

resolution with respect to the proposed adjustment which has been referred to the committee. The motion to discharge may be made only by a person favoring the resolution, shall be highly privileged (except that it may not be made after the committee has reported a resolution with respect to the same proposed rate), and debate thereon shall be limited to not more than 1 hour, to be divided equally between those favoring and those opposing the resolution. An amendment to the motion is not in order, and it is not in order to move to I'econsider the vote by which the motion is agreed to or disagreed to. If the motion to discharge is agreed to or disagreed to, the motion may not be renewed, nor may another motion to discharge the committee be made with respect to any other resolution with respect to the same proposed rate. (6) When a committee has reported, or has been discharged from further consideration of a resolution, it is at any time thereafter in order (even though a previous motion to the same effect has been disagreed to) to move to proceed to the consideration of the resolution. The motion is highly privileged and is not debatable. An amendment to the motion is not in order, and it is not in order to move to reconsider the vote by which the motion is agreed to or disagreed to. Debate on the resolution shall be limited to not more than 10 hours, which shall be divided equally between those favoring and those opposing the resolution. A motion further to limit debate is not debatable. An amendment to, or motion to recommit, the resolution is not in order, and it is not in order to move to reconsider the vote by which the resolution is agreed to or disagreed to. (7) Motions to postpone, made with respect to the discharge from committee, or the consideration of, a resolution and motions to proceed to the consideration of other business shall be decided without debate. Appeals from the decisions of the Chair relating to the application of the rules of the Senate or the House of Representatives, as the case may be, to the procedure relating to a resolution shall be decided without debate. PAYMENT OF PREMIUMS

SEC. 4007. (a) The plan administrator of each plan shall pay the premiums imposed by the corporation under this title with respect to that plan when they are due. Any emploj^er obtaining contingent liability coverage under section 4023 shall pay the premiums imposed by the corporation under that section when due. Premiums under this title are payable at the time, and on an estimated, advance, or other basis, as determined by the corporation. Premiums imposed by this title on the date of enactment (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 title on the first plan year commencing after the date of enactment of this Act 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 4042, whichever is earlier. (b) If any basic benefit premium is not paid M-hen it is due the corporation is authorized to as?ess 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 plan administrator obtains a waiver from the corporation based upon a showing of substantial hardship arising

S8-194 O - 76 - 67 Pt. 1

29 USC 1307.

�


text:
Page:United States Statutes at Large Volume 88 Part 1.djvu/1058

 1014

26 USC 6601.

PUBLIC LAW 93-406-SEPT. 2, 1974

from the timely payment of the premium. The corporation is authorized to grant a waiver under this subsection upon application made by the plan administrator, but the corporation may not grant a waiver if it appears that the plan administrator 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 the Internal Revenue Code of 1954 (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) If any plan administrator 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) The corporation shall not cease to guarantee basic benefits on account of the failure of a plan administrator to pay any premium when due. REPORT BY THE

29 USC 1308.

[88 STAT.

CORPORATION

gj,Q^ 4008. As soon as practicable after the close of each fiscal year the corporation shall transmit to the President and the Congress a report relative to the conduct of its business under this title for that fiscal year. The report shall include financial statements setting forth the finances of the corporation at the end of such fiscal year and the result of its operations (including the source and application of its funds) for the fiscal year and shall include an actuarial evaluation of the expected operations and status of the funds established under section 4005 for the next five years (including a detailed statement of the actuarial assumptions and methods used in making such evaluation). PORTABILITY ASSISTANCE

29 USC 1309.

Ante. p. 958.

gj,(^_ 4009. The corporation shall provide advice and assistance to individuals with respect to evaluating the economic desirability of establishing individual retirement accounts or other forms of individual retirement savings for which a deduction is allowable under section g^g ^^ ^^^^ Internal Revenue Code of 1954 and with respect to evaluating the desirability, in particular cases, of transferring amounts representing an employee's interest in a qualified plan to such an account upon the employee's separation from service with an employer.

Subtitle B—Coverage P L A N S COVERED 29 USC 1321,

Ante, p. 833.

SEC. 4021. (a) Except as provided in subsection (b), this section applies to any plan (including a successor plan) which, for a plan year— (1) is an employee pension benefit plan (as defined in paragraph (2) of section 3 of this Act) established or maintained— (A) by an employer engaged in commerce or in any industry or activity affecting commerce, or

�


text:
Page:United States Statutes at Large Volume 88 Part 1.djvu/1059

 88 STAT. ]

PUBLIC LAW 93-406-SEPT. 2, 1974

10L5

(B) by any employee organization, or organization representing employees, engaged in commerce or in any industry or activity affecting commerce, or (C) by both, which has, in practice, met the requirements of part I of subchapter D of chapter 1 of the Internal Revenue Code of 1954 (as 26 USC 401, in effect for the preceding 5 plan years of the plan) applicable to plans described in paragraph (2) for the preceding 5 plan years; or (2) is, or has been determined by the Secretary of the Treasury to be, a plan described in section 401(a) of the Internal Revenue Code of 1954, or which meets, or has been determined by the Secretary of the Treasury to meet, the requirements of section 404(a) (2) of such Code. For purposes of this title, a successor plan is considered to be a continuation of a predecessor plan. For this purpose, a successor plan is a plan which covers a group of employees which includes substantially the same employees as a previously established plan, and provides substantially the same benefits as that plan provided, (b) This section does not apply to any plan— (1) which is an individual account plan, as defined in paragraph (34) of section 3 of this Act, ^" P- ^^^ (2) established and maintained for its employees by the Government of the United States, by the government of any State or political subdivision thereof, or by any agency or instrumentality of any of the foregoing, or to which the Railroad Retirement Act of 1935 or 1937 applies and which is financed by contributions 45 USC 215-228 notes, 228arequired under that Act, 228"s-2. (3) which is a church plan as defined in section 414(e) of the Internal Revenue Code of 1954, unless that plan has made an ^"'^' P- ^2 5 election under section 410(d) of such Code, and has notified the '^"^^' ^' ^^^ corporation in accordance with procedures prescribed by the corporation, that it wishes to have the provisions of this part apply to it, (4)(A) established and maintained by a society, order, or association described in section 501(c)(8) or (9) of the Internal Revenue Code of 1954, if no part of the contributions to or under ^e use 501. the plan is made by employers of participants in the plan, or (B) of which a trust described in section 501(c) (18) of such Code is a part; (5) which has not at any time after the date of enactment of this Act provided for employer contributions; (6) which is unfunded and which is maintained by an employer primarily for the purpose of providing deferred compensation for a select group of management or highly compensated employees; (7) which is established and maintained outside of the United States primarily for the benefit of individuals substantially all of whom are nonresident aliens; (8) which is maintained by an employer solely for the purpose of providing benefits for certain employees in excess of the limitations on contributions and benefits imposed by section 415 of the Internal Revenue Code of 1954 on plans to which that section ^"'e, p. 979 applies, without regard to whether the plan is funded, and, to the extent that a separable part of a plan (as determined by the corporation) maintained by an employer is maintained for such purpose, that part shall be treated for purposes of this title, as a separate plan which is an excess benefit plan;

�


text:
Page:United States Statutes at Large Volume 88 Part 1.djvu/1060

 1016

PUBLIC LAW 93-406~SEPT. 2, 1974

22 USC 288 note.

Ante,

p. 833.

"Individual account p l a n. "

"Professional service employer."

"Professional individuals."

[88 STAT.

(9) which is established and maintained exclusively for substantial owners as defined in section 4022(b)(6); (10) of an international organization which is exempt from taxation under the International Organizations Immunities Act; (11) maintained solely for the purpose of complying with applicable workmen's compensation laws or unemployment compensation or disability insurance laws; (12) which is a defined benefit plan, to the extent that it is treated as an individual account plan under paragraph (o5)(B) of section 3 of this Act; or (13) established and maintained by a professional service employer which does not at any time after the date of enactment of this Act have more than 25 active participants in the plan. (c)(1) For purposes of subsection (b)(1), the term "individual account plan" does not include a plan under which a fixed benefit is promised if the employer or his representative participated in the determination of that benefit. (2) For purposes of this paragraph and for purposes of subsection (b)(13)(A) the term "professional service employer" means any proprietorship, partnership, corporation, or other association or organization (i) owned or controlled by professional individuals or by executors or administrators of professional individuals, (ii) the principal business of which is the performance of professional services, and (B) the term "professional individuals" includes but is not limited to, physicians, dentists, chiropractors, osteopaths, optometrists, other licensed practitioners of the healing arts, attorneys at law, public accountants, public engineers, architects, draftsmen, actuaries, psychologists, social or physical scientists, and performing artists. (3) In the case of a plan established and maintained by more than one professional service employer, the plan shall not be treated as a plan described in subsection (b)(13) if, at any time after the date of enactment of this xVct the plan has more than 25 active participants. B E N E F I T S GUARANTEED

29 USC 1322.

SEC. 4022. (a) Subject to the limitations contained in subsection (b), the corporation shall guarantee the payment of all nonforfeitable benefits (other than benefits becoming nonforfeitable solely on account of the termination of a plan) under the terms of a plan which terminates at a time when section 4021 applies to it. (b)(1) Except to the extent provided in paragraph (8)— (A) no benefits provided by a plan which has been in effect for less than 60 months at the time the plan terminates shall be guaranteed under this section, and (B) any increase in the amount of benefits under a plan resulting from a plan amendment which was made, or became effective, whichever is later, within 60 months before the date on which the plan terminates shall be disregarded. (2) For purposes of this subsection, the time a successor plan (within the meaning of section 4021(a)) has been in effect inckides the time a previously established plan (within the meaning of section 4021(a)) was in effect. For purposes of determining what benefits are guaranteed under this section in the case of a plan to which section 4021 does not apply on the day after the date of enactment of this Act, the 60 month period referred to in paragraph (1) shall be computed

�


text:
Page:United States Statutes at Large Volume 88 Part 1.djvu/1061

 88 STAT. ]

PUBLIC LAW 93-406-SEPT. 2, 1974

beginning on the first date on which such section does apply to the plan. (3) The amount of monthly benefits described in subsection (a) provided by a plan, which are guaranteed under this section with respect to a participant, shall not have an actuarial value which exceeds the actuarial value of a monthly benefit in the form of a life annuity commencing at age 65 equal to the lesser of— (A) his average monthly gross income from his employer during the 5 consecutive calendar year period (or, if less, during the number of calendar years in such period in which he actively participates in the plan) during which his gross income from that employer was greater than during any other such period with that employer determined by dividing 1/12 of the sum of all such gross income by the number of such calendar years in which he had such gross income, or (B) $750 multiplied by a fraction, the numerator of which is the contribution and benefit base (determined under section 230 of the Social Security Act) in effect at the time the plan terminates and the denominator of which is such contribution and benefit base in effect in calendar year 1974. The provisions of this paragraph do not apply to non-basic benefits. (4)(A) The actuarial value of a benefit, for purposes of this subsection, shall be determined in accordance with regulations prescribed by the corporation. (B) For purposes of paragraph (3)— (i) the term "gross income" means "earned income" within the meaning of section 911(b) of the Internal Revenue Code of 1954 (determined without regard to any community property laws), (ii) in the case of a participant in a plan under which contributions are made by more than one employer, amounts received as gross income from any employer under that plan shall be aggregated with amounts received from any other employer under that plan during the same period, and (iii) any non-basic benefit shall be disregarded. (5) Notwithstanding paragraph (3), no person shall receive from the corporation for basic benefits with respect to a participant an amount, or amounts, with an actuarial value which exceeds a monthly benefit in the form of a life annuity commencing at age 65 equal to the amount determined under paragraph (3)(B) at the time of the last plan termination. (6)(A) For purposes of this title, the term "substantial owner" •

-f •

"1

1

1

means an individual who— (i) owns the entire interest in an unincorporated trade or business, (ii) in the case of a partnership, is a partner who owns, directly or indirectly, more than 10 percent of either the capital interest or the profits interest in such partnership, or (iii) in the case of a corporation, owns, directly or indirectly, more than 10 percent in value of either the voting stock of that corporation or all the stock of that corporation. For purposes of clause (iii) the constructive ownership rules of section 1563(e) of the Internal Revenue Code of 1954 shall apply (determined without regard to section 1 5 6 3 (e)(3)(C)). For purposes of this title an individual is also treated as a substantial owner with respect to a plan if, at any time within the 60 months preceding the date on which the determination is made, he was a substantial owner under the plan.

1017

'*^ "^^ ^^°^"

26 USC 9ii.

"substantial owner*

26 USC 1563.

�


text:
Page:United States Statutes at Large Volume 88 Part 1.djvu/1062

 1018

26 USC 401. 26 USC 404.

PUBLIC LAW 93-406--SEPT. 2, 1974

[88 STAT.

(B) I n the case of a participant in a plan under which benefits have not been increased by reason of any plan amendments and who is covered by the plan as a substantial owner, the amount of benefits guaranteed under this section shall not exceed the product of— (i) a fraction (not to exceed 1) the numerator of which is the number of years the substantial owner was an active participant in the plan, and the denominator of which is 30, and (ii) the amount of the substantial owner's monthly benefits guaranteed under subsection (a) (as limited under paragraph (3) of this subsection). (C) I n the case of a participant in a plan, other than a plan described in subparagraph (B), who is covered by the plan as a substantial owner, the amount of the benefit guaranteed under this section shall, under regulations prescribed by the corporation, treat each benefit increase attributable to a plan amendment as if it were provided under a new plan. The benefits guaranteed under this section with respect to all such amendments shall not exceed the amount which would be determined under subparagraph (B) if subparagraph (B) applied. (7)(A) No benefits accrued under a plan after the date on which the Secretary of the Treasury issues notice that he has determined that any trust which is a part of a plan does not meet the requirements of section 401(a) of the Internal Revenue Code of 1954, or that the plan (Joes uot mcct the requirements of section 404(a)(2) of such Code, are guaranteed under this section unless such determination is erroneous. This subparagraph does not apply if the Secretary subsequently issues a notice that such trust meets the requirements of section 401(a) of such Code or that the plan meets the requirements of section 404 (a)(2) of such Code and if the Secretary determines that the trust or plan has taken action necessary to meet such requirements during the period between the issuance of the notice referred to in the preceding sentence and the issuance of the notice referred to in this sentence. (B) Mo benefits accrued under a plan after the date on which an amendment of the plan is adopted which causes the Secretary of the Treasury to determine that any trust under the plan has ceased to meet the requirements of section 401(a) of the Internal Revenue Code of 1954 or that the plan has ceased to meet the requirements of section 404(a)(2) of such Code, are guaranteed under this section unless such determination is erroneous. This subparagraph shall not apply if the amendment is revoked as of the date it was first effective or amended to comply with such requirements. (8) Benefits described in paragraph (1) are guaranteed only to the extent of the greater of— (A) 20 percent of tb.e amount which, but for the fact that the plan or amendment lias not been in effect for 60 months or more, would be guaranteed under this section, or (B) $20 per month, multiplied by the number of years (but not more than 5) the plan or amendment, as the case may be, has been in effect. In determining how many years a plan or amendment has been in effect for purposes of this paragraph, the first 12 months following the date on which the plan or amendment is made or first becomes effective (whichever is later) constitutes one year, and each consecutive period of 12 months thereafter constitutes an additional year. This paragraph does not apply to benefits payable under a plan unless the corporation finds substantial evidence that the plan was terminated for a reasonable business purpose and not for the purpose of obtaining the payment of benefits by the corporation under this title.

�


text:
Page:United States Statutes at Large Volume 88 Part 1.djvu/1063

 88 STAT. ]

PUBLIC LA\^ 93-406-SEPT. 2, 1974

1019

(c) The corporation is authorized to guarantee the payment of such other classes of benefits and to establish the terms and conditions under which such other classes of benefits are guaranteed as it determines to be appropriate. C O N T I N G E N T L I A B I L I T Y COVERAGE

SEC. 4023. (a) The corporation shall insure any employer who maintains or contributes to or under a plan to which section 4021 applies against the payment of any liability imposed on him under subtitle D of this title in the event of a termination of that plan. The corporation may develop arrangements with persons engaged in the business of providing insurance under which the insurance coverage described in the preceding sentence could be provided in whole or in part by such private insurers. In developing such arrangements the corporation shall devise a system under which risks are equitably distributed between the corporation and private insurers with respect to the classes of employers insured by each. (b) The corporation is authorized to prescribe and collect in such manner as it determines to be appropriate premiums for insurance offered under subsection (a). If the corporation requires all employerS to which this title applies to purchase coverage under this section, the provisions of section 4007(b) and (c) apply to the collection of premiums under this section. The premiums shall be determined by the corporation and revised by it from time to time as may be necessar-y, and shall be chargeable at a rate sufficient to fund any payment by the corporation becoming necessary under such coverage. (c) If the corporation is, in its determination, able to develop a satisfactory arrangement with private insurers, within 36 months after the date of enactment of this Act, to carry out the program of insurance authorized by this section in whole or in part, the corporation is authorized to require employers to elect coverage by such private insurance or by the corporation at such times and in such manner as the corporation determines necessary. (d) No payment may be made by the corporation under any insurance provided by it under this section unless the premiums on such insurance have been paid by the employer and the insurance has been in effect (with respect to any benefit) for more than 60 months. The corporation is authorized to prescribe conditions under which no payment will be made by it under any insurance offered under this section without regard to whether premiums for such insurance have been paid. (e) Nothing in this section precludes the purchase by the employer of insurance from any other person, or limits the circumstances under which that insurance is payable, or in any way limits the terms and conditions of such insurance, except that the corporation may prescribe as a condition precedent to the purchase of such insurance the payment of a reinsurance premium or other reasonable fee under this section determined by the corporation to be necessary to assure the liquidity and adequacy of any fund or funds established to carry out the provisions of this section. (f) In carrying out its duties under subsection (a) to develop arrangements with private insurers the corporation shall consider as an alternative or as a supplement to private insurance the feasibility of using private industry guarantees, indemnities, or letters of credit.

29 USC 1323.

^°^'* P- ^°^^'

�


text:
Page:United States Statutes at Large Volume 88 Part 1.djvu/1064

 1020

PUBLIC LAW 93-406-SEPT. 2, 1974

[88 STAT.

Subtitle C—Terminations TERMINATIOlsr BY P L A N 29 USC 1341.

ADMINISTRATOR

SEC. 4041. (a) Before the effective date of the termination of a plan, the plan administrator shall file a notice with the corporation that the plan is to be terminated on a proposed date (which may not be earlier than 10 days after the filing of the notice), and for a period of 90 days after the proposed termination date the plan administrator shall pay no amount pursuant to the termination procedure of the plan unless, before the expiration of such period, he receives a notice of sufficiency under subsection (b). Upon receiving such a notice, the plan administrator may proceed with the termination of the plan in a manner consistent with this subtitle. (b) If the corporation determines that, after application of section 4044, the assets held under the plan are sufficient to discharge when due all obligations of the plan with respect to basic benefits, it shall notify the plan administrator of such determination as soon as practicable. (c) If, within such 90-day period, the corporation finds that it is unable to determine that, if the assets of the plan are allocated in accordance with the provisions of section 4044, the assets held under the plan are sufficient to discharge when due all obligations of the plan with respect to basic benefits, it shall notify the plan administrator within such 90-day period of that finding. When the corporation issues a notice under this subsection, it shall commence proceedings in accordance with the provisions of section 4042. Upon receiving a notice under this subsection, the plan administrator shall refrain from taking any action under the proposed termination. (d) The corporation and the plan administrator may agree to extend the 90-day period provided by this section by a written agreement signed by the corporation and the plan administrator before the expiration of the 90-day period, or the corporation may apply to an appropriate court (as defined in section 4042(g)) for an order extending the 90-day period provided by this section. The 90-day period shall be extended as provided in the agreement or in any court order obtained by the corporation. The 90-day period may be further extended by subsequent written agreements signed by the corporation and the plan administrator made before the expiration of a previously agreed upon extension of the 90-day period, or by subsequent order of the court. Any extension may be made upon such terms and conditions (including the payment of benefits) as are agreed upon by the corporation and the plan administrator or as specified in the court order. (e) If, after the plan administrator has begun to terminate the plan as authorized by this section, the corporation or the plan administrator finds that the plan is unable, or will be unable, to pay basic benefits when due, the plan administrator shall notify the corporation of such finding as soon as practicable thereafter. If the corporation makes such a finding or concurs with the finding of the plan administrator, it shall institute appropriate proceedings under section 4042. The plan administrator terminating a plan shall furnish such reports to the corporation as it may require for purposes of its duties under this section. (f) For purposes of subsection (a), a plan with respect to which basic benefits are guaranteed shall be treated as terminated upon the adoption of an amendment to such plan, if, after giving effect to such amendment, the plan is a plan described in section 4021(b)(1).

�


text:
Executive Order 13574

By the authority vested in me as President by the Constitution and the laws of the United States of America, including the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) (IEEPA), the National Emergencies Act (50 U.S.C. 1601 et seq.), the Iran Sanctions Act of 1996 (Public Law 104-172) (50 U.S.C. 1701 note) (ISA), as amended by, inter alia, the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (Public Law 111-195), and section 301 of title 3, United States Code, and in order to take additional steps with respect to the national emergency declared in Executive Order 12957 of March 15, 1995,

I,, President of the United States of America, hereby order:

 * For the purposes of this order:

, May 23, 2011. [FR Doc. 2011–13173 Filed 5–24–11; 11:15 am] Billing Code 3195–W1–P

title: Executive Order 13574