text:
Page:United States Statutes at Large Volume 100 Part 1.djvu/292

 100 STAT. 256 Ante, p. 248. Ante, p. 253.

29 USC 1082. 26 USC 412.

29 USC 1083. 29 USC 1084.

PUBLIC LAW 99-272—APR. 7, 1986

referred to in this subparagraph as it determines appropriate, taking into account reasonable administrative costs of trusts established under section 4041(c)(3)(B) (ii) or (iii) or section 4042(i). "(C) DEFERRAL OF PAYMENTS.—The terms for payment provided for under subparagraph (A) or (B) shall also provide for deferral of 75 percent of any amount of liability otherwise payable for any liability payment year if a person subject to such liability demonstrates to the satisfaction of the corporation that no person subject to such liability has any individual pre-tax profits for such person's fiscal year ending during such year. The amount of liability so deferred is payable only after payment in full of any amount of liability under subsection (b) in connection with the termination of the same plan which has been deferred pursuant to terms provided for under subsection (b)(2)(B). "(d) LIABILITY TO SECTION 4042 TRUSTEE.—A person described in subsection (a) shall be subject to liability under this subsection to the trustee appointed under subsection (b) or (c) of section 4042. The liability of such person under this subsection shall consist of^ "(1) the outstanding balance of the accumulated funding deficiencies (within the meaning of section 302(a)(2) of this Act and section 412(a) of the Internal Revenue Code of 1954) of the plan (if any) (which, for purposes of this subparagraph, shall include the amount of any increase in such accumulated funding deficiencies of the plan which would result if all pending applications for waivers of the minimum funding standard under section 303 of this Act or section 412(d) of such Code and for extensions of the amortization period under section 304 of this Act or section 412(e) of such Code with respect to such plan were denied and if no additional contributions (other than those already made by the termination date) were made for the plan year in which the termination date occurs or for any previous plan year), "(2) the outstanding balance of the amount of waived funding deficiencies of the plan waived before such date under section 303 of this Act or section 412(d) of such Code (if any), and "(3) the outstanding balance of the amount of decreases in the minimum funding standard allowed before such date under section 304 of this Act or section 412(e) of such Code (if any), together with interest (at a reasonable rate) calculated from the termination date in accordance with regulations prescribed by the corporation. The liability under this subsection shall be due and payable to such trustee as of the termination date, in cash or securities acceptable to such trustee. "(e) DEFINITIONS.— "(1) COLLECTIVE NET WORTH OF PERSONS SUBJECT TO LIABILITY.—

"(A) IN GENERAL.—The collective net worth of persons subject to liability in connection with a plan termination consists of the sum of the individual net worths of all persons who— "(i) have individual net worths which are greater than zero, and "(ii) are (as of the termination date) contributing sponsors of the terminated plan or members of their controlled groups.

�


text:
Page:United States Statutes at Large Volume 100 Part 1.djvu/293

 PUBLIC LAW 99-272—APR. 7, 1986

100 STAT. 257

"(B) DETERMINATION OF NET WORTH.—For purposes of this paragraph, the net worth of a person is— "(i) determined on whatever basis best reflects, in the determination of the corporation, the current status of the person's operations and prospects at the time chosen for determining the net worth of the person, and "(ii) increased by the amount of any transfers of assets made by the person which are determined by the corporation to be improper under the circumstances, including any such transfers which would be inappropriate under title 11, United States Code, if the person were a debtor in a case under chapter 7 of such title, "(C) TIMING OF DETERMINATION.—For purposes of this paragraph, determinations of net worth shall be made as of a day chosen by the corporation (during the 120-day period ending with the termination date) and shall be computed without regard to any liability under this section. "(2) PRE-TAX PROFITS.—The term 'pre-tax profits' means— "(A) except as provided in subparagraph (B), for any fiscal year of any person, such person's consolidated net income (excluding any extraordinary charges to income and including any extraordinary credits to income) for such fiscal year, as shown on audited financial statements prepared in accordance with generally accepted accounting principles, or "(B) for any fiscal year of an organization described in section 501(c) of the Internal Revenue Code of 1954, the excess of income over expenses (as such terms are defined for such organizations under generally accepted accounting principles), before provision for or deduction of Federal or other income tax, any contribution to any single-employer plan of which such person is a contributing sponsor at any time during the period beginning on the termination date and ending with the end of such fiscal year, and any amounts required to be paid for such fiscal year under this section. The corporation may by regulation require such information to be filed on such forms as may be necessary to determine the existence and amount of such pre-tax profits. "(3) LIABILITY PAYMENT YEARS.—The liability payment years in connection with a terminated plan consist of the consecutive one-year periods following the last plan year preceding the termination date, excluding the first such year in any case in which the first such year ends less than 180 days after the termination date.". (b) CLERICAL AMENDMENT.—Subsection (f) of section 4062 (as redesignated by subsection (a)(1)) is amended by inserting "TREATMENT OF SUBSTANTIAL CESSATION OF OPERATIONS.—" after "(0". (c) AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1954.—

li USC 701 et ««9-

26 USC 501.

42 USC 1362.

(1) TIME FOR DEDUCTION OF CERTAIN EMPLOYER LIABILITY PAY-

MENTS.—Paragraph (3) of section 404(g) of the Internal Revenue Code of 1954 (relating to certain employer liability payments 26 USC 404. considered as contributions) is amended to read as follows: "(3) TIMING OF DEDUCTION OF CONTRIBUTIONS.—

"(A) IN GENERAL.—Except as otherwise provided in this paragraph, any payment described in paragraph (1) shall

71-194 0 - 89 - 11: QL 3 Parti

�

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


text:
Page:United States Statutes at Large Volume 100 Part 1.djvu/294

 100 STAT. 258

PUBLIC LAW 99-272—APR. 7, 1986 (subject to the last sentence of subsection (a)(1)(A)) be deductible under this section when paid. "(B) CONTRIBUTIONS UNDER STANDARD TERMINATIONS.—

Ante, p. 244.

29 USC 1322.

Subparagraph (A) shall not apply (and subsection (a)(1)(A) shall apply) to any payments described in paragraph (1) which are paid to terminate a plan under section 4041(b) of the Employee Retirement Income Security Act of 1974 to the extent such payments result in the assets of the plan being in excess of the total amount of benefits under such plan which are guaranteed by the Pension Benefit Guaranty Corporation under section 4022 of such Act. "(C) CONTRIBUTIONS TO CERTAIN TRUSTS.—Subparagraph

29 USC 1362.

(A) shall not apply to any payment described in paragraph (1) which is made under section 4062(c) of such Act and such payment shall be deductible at such time as may be prescribed in regulations which are based on principles similar to the principles of subsection (a)(1)(A).". (2) REFERENCES TO ERISA.—Subsection (g) of section 404 of the

26 USC 404; ante, p. 257.

Internal Revenue Code of 1954 is amended by adding at the end thereof the following new paragraph: "(4) REFERENCES TO EMPLOYEE RETIREMENT INCOME SECURITY

Ante, p. 237. 26 USC 404 note.

ACT OF 1974.—For purposes of this subsection, any reference to a section of the Employee Retirement Income Security Act of 1974 shall be treated as a reference to such section as in effect on the date of the enactment of the Single-Employer Pension Plan Amendments Act of 1986.". (3) EFFECTIVE DATE.—The amendments made by this subsection shall apply to payments made after January 1, 1986, in taxable years ending after such date. SEC. 11012. DISTRIBUTION TO PARTICIPANTS AND BENEFICIARIES OF LIABILITY PAYMENTS TO SECTION 4049 TRUST.

(a) IN GENERAL.—Subtitle C of title IV is amended by adding at the end thereof the following new section: "DISTRIBUTION TO PARTICIPANTS AND BENEFICIARIES OF LIABILITY PAYMENTS TO SECTION 4049 TRUST

29 USC 1349. Ante, p. 248. 29 USC 1362.

"SEC. 4049. (a) TRUST REQUIREMENTS.—The requirements of this

section apply to a trust established by the corporation in connection with a terminated plan pursuant to section 4041(c)(3)(B) (ii) or (iii). The trust shall be used exclusively for— "(1) receiving liability payments under section 4062(c) from the persons who were (as of the termination date) contributing sponsors of the terminated plan and members of their controlled groups, "(2) making distributions as provided in this section to the persons who were (as of the termination date) participants and beneficiaries under the terminated plan, and "(3) defraying the reasonable administrative expenses incurred in carrying out responsibilities under this section. The trust shall be maintained for such period of time as is necessary to receive all liability payments required to be made to the trust under section 4062(c) with respect to the terminated plan and to make all distributions required to be made to participants and beneficiaries under this section with respect to the terminated plan.

�


text:
Page:United States Statutes at Large Volume 100 Part 1.djvu/295

 PUBLIC LAW 99-272—APR. 7, 1986

100 STAT. 259

"(b) DESIGNATION OF FIDUCIARY BY THE CORPORATION.— "(1) PURPOSES FOR DESIGNATION OF FIDUCIARY.— "(A) COLLECTION OP LIABILITY.—The corporation

shall designate a fiduciary (within the meaning of section 3(21)) to 29 USC 1002. serve as trustee of the trust for purposes of conducting negotiations and assessing and collecting liability pursuant to section 4062(c). 29 USC 1362. "(B) ADMINISTRATION OF TRUST.— "(i) CORPORATION'S FUNCTIONS.—Except as provided

in clause (ii), the corporation shall serve as trustee of the trust for purposes of administering the trust, including making distributions from the trust to participants and beneficiaries. "(ii) DESIGNATION OF FIDUCIARY IF COST-EFFECTIVE.—If

the corporation determines that it would be cost-effective to do so, it may designate a fiduciary (within the meaning of section 3(21)), including the fiduciary designated under subparagraph (A), to perform the functions described in clause (i). "(2) FIDUCIARY REQUIREMENTS.—A fiduciary designated under paragraph (1) shall be— "(A) independent of each contributing sponsor of the plan and the members of such sponsor's controlled group, and "(B) subject to the requirements of part 4 of subtitle B of title I (other than section 406(a)) as if such trust were a plan 29 USC 1101, subject to such part. 1106"(c) DISTRIBUTIONS FROM TRUST.—

"(1) IN GENERAL.—Not later than 30 days after the end of each liability payment year (described in section 4062(e)(3)) with 29 USC 1362. respect to a terminated single-employer plan, the corporation, or its designee under subsection (b), shall distribute from the trust maintained pursuant to subsection (a) to each person who was (as of the termination date) a participant or beneficiary under the plan— "(A) in any case not described in subparagraph (B), an amount equal to the outstanding amount of benefit commitments to such person under the plan (including interest calculated from the termination date), to the extent not previously paid under this paragraph, or "(B) in any case in which the balance in the trust at the end of such year which is in cash or may be prudently converted to cash (after taking into account liability payments received under subsection (a)(1) and administrative expenses paid under subsection (a)(3)) is less than the total of all amounts described in subparagraph (A) in connection with all persons who were (as of the termination date) participants and beneficiaries under the terminated plan, the product derived by multiplying— "(i) the amount described in subparagraph (A) in connection with each such person, by "(ii) a fraction— "(I) the numerator of which is such balance in the trust, and "(II) the denominator of which is equal to the total of all amounts described in subparagraph (A) in connection with all persons who were (as of the

�


text:
Page:United States Statutes at Large Volume 100 Part 1.djvu/296

 100 STAT. 260

26 USC 501. Ante, p. 258. Ante, p. 237.

26 USC 402.

PUBLIC LAW 99-272—APR. 7, 1986

termination date) participants and beneficiaries under the terminated plan. "(2) CARRY-OVER OF MINIMAL PAYMENT AMOUNTS.—The corporation, or its designee under subsection (b), may withhold a payment to any person under this subsection in connection with any liability payment year (other than the last liability payment year with respect to which payments under paragraph (1) are payable) if such payment does not exceed $100. In any case in which such a payment is so withheld, the payment to such person in connection with the next following liability payment year shall be increased by the amount of such withheld payment. "(d) REGULATIONS.—The corporation may issue such regulations as it considers necessary to carry out the purposes of this section.". (b) TAX-EXEMPT STATUS FOR TRUSTS DESCRIBED IN SECTION 4049 OF ERISA.—Subsection (c) of section 501 of the Internal Revenue Code of 1954 (relating to list of tax-exempt organizations) is amended by adding at the end thereof the following new paragraph: "(24) A trust described in section 4049 of the Employee Retirement Income Security Act of 1974 (as in effect on the date of the enactment of the Single-Employer Pension Plan Amendments Act of 1986).". (c) ROLLOVERS OF PAYMENTS FROM TRUST ALLOWED.—Paragraph

(6) of section 402(a) of such Code (relating to special rollover rules) is amended by adding at the end thereof the following new subparagraph: "(G) PAYMENTS FROM CERTAIN PENSION PLAN TERMINATION TRUSTS.—If—

29 USC 1362 note.

29 USC 1362.

"(i) any amount is paid or distributed to a recipient from a trust described in section 501(c)(24), "(ii) the recipient transfers any portion of the property received in such distribution to an eligible retirement plan described in subclause (I) or (II) of paragraph (5)(E)(iv), and "(iii) in the case of a distribution of property other than money, the amount so transferred consists of the property distributed, then the portion of the distribution so transferred shall be treated as a distribution described in paragraph (5)(A).". (d) SPECIAL DELAYED PAYMENT RULE.—In the case of a distress termination under section 4041(c) of the Employee Retirement Income Security Act of 1974 (as amended by section 11009) pursuant to a notice of intent to terminate filed before January 1, 1987, no payment of liability otherwise payable as provided in section 4062(c)(2)(B) of such Act (as amended by this section) shall be required to be made before January 1, 1989. SEC. 11013. TREATMENT OF TRANSACTIONS TO EVADE LIABILITY; EFFECT OF CORPORATE REORGANIZATION,

(a) IN GENERAL.—Subtitle D of title IV is amended by adding at the end thereof the following new section: " T R E A T M E N T OF TRANSACTIONS TO EVADE LIABILITY; EFFECT OF CORPORATE REORGANIZATION

29 USC 1369.

4069. (a) TREATMENT OF TRANSACTIONS TO EVADE LIABILITY.—If a principal purpose of any person in entering into any transaction is to evade liability to which such person would be "SEC.

�


text:
Page:United States Statutes at Large Volume 100 Part 1.djvu/297

 PUBLIC LAW 99-272—APR. 7, 1986

100 STAT. 261

subject under this subtitle and the transaction becomes effective within five years before the termination date of the termination on which such Uabihty would be based, then such person and the members of such person's controlled group (determined as of the termination date) shall be subject to liability under this subtitle in connection with such termination as if such person were a contributing sponsor of the terminated plan as of the termination date. This subsection shall not cause any person to be liable under this subtitle in connection with such plan termination for any increases or improvements in the benefits provided under the plan which are adopted after the date on which the transaction referred to in the preceding sentence becomes effective. "(b) EFFECT OF CORPORATE REORGANIZATION.—For purposes of this subtitle, the following rules apply in the case of certain corporate reorganizations: "(1) CHANGE OF IDENTITY, FORM, ETC.—If a person ceases to exist by reason of a reorganization which involves a mere change in identity, form, or place of organization, however effected, a successor corporation resulting from such reorganization shall be treated as the person to whom this subtitle applies. "(2)

LIQUIDATION INTO PARENT CORPORATION.—If a

person

ceases to exist by reason of liquidation into a parent corporation, the parent corporation shall be treated as the person to whom this subtitle applies. "(3) MERGER, CONSOLIDATION, OR DIVISION.—If a person ceases to exist by reason of a merger, consolidation, or division, the successor corporation or corporations shall be treated as the person to whom this subtitle applies.", (b) EFFECTIVE DATE.—Section 4069(a) of the Employee Retirement Income Security Act of 1974 (as added by subsection (a)) shall apply with respect to transactions becoming effective on or after January 1, 1986.

29 USC 1369 ^°^-

SEC. 11014. ENFORCEMENT AUTHORITY RELATING TO TERMINATIONS OF SINGLE-EMPLOYER PLANS. (a) PRIVATE RIGHTS OF ACTION.—Subtitle D of title IV (as amended

by section 11013) is further amended by adding at the end thereof the following new section: "ENFORCEMENT AUTHORITY RELATING TO TERMINATIONS OF SINGLEEMPLOYER PLANS

"SEC. 4070. (a) IN GENERAL.—Any person who is with respect to a single-employer plan a fiduciary, contributing sponsor, member of a contributing sponsor's controlled group, participant, or beneficiary, and is adversely affected by an act or practice of any party (other than the corporation) in violation of any provision of section 4041, 4042, 4049, 4062, 4063, 4064, or 4069, or who is an employee organization representing such a participant or beneficiary so adversely affected for purposes of collective bargaining with respect to such plan, may bring an action— "(1) to enjoin such act or practice, or "(2) to obtain other appropriate equitable relief (A) to redress such violation or (B) to enforce such provision. "(b) STATUS OF PLAN AS PARTY TO ACTION AND WITH RESPECT TO LEGAL PROCESS.—A single-employer plan may be sued under this

section as an entity. Service of summons, subpoena, or other legal

29 USC 1370.

Ante, pp. 244, oQ^frlf?i362-i364 Ante. p. 260.

�


text:
Page:United States Statutes at Large Volume 100 Part 1.djvu/298

 100 STAT. 262

Courts, U.S.

PUBLIC LAW 99-272—APR. 7, 1986

process of a court upon a trustee or an administrator of a singleemployer plan in such trustee's or administrator's capacity as such shall constitute service upon the plan. If a plan has not designated in the summary plan description of the plan an individual as agent for the service of legal process, service upon any contributing sponsor of the plan shall constitute such service. Any money judgment under this section against a single-employer plan shall be enforceable only against the plan as an entity and shall not be enforceable against any other person unless liability against such person is established in such person's individual capacity. "(c) JURISDICTION AND VENUE.—The district courts of the United States shall have exclusive jurisdiction of civil actions under this section. Such actions 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. The district courts of the United States shall have jurisdiction, without regard to the amount in controversy or the citizenship of the parties, to grant the relief provided for in subsection (a) in any action. "(d) RIGHT OF CORPORATION TO INTERVENE.—A copy of the complaint or notice of appeal in any action under this section shall be served upon the corporation by certified mail. The corporation shall have the right in its discretion to intervene in any action. "(e) AWARDS OF COSTS AND EXPENSES.— "(1) GENERAL RULE.—In any action brought under this sec-

tion, the court in its discretion may award all or a portion of the costs and expenses incurred in connection with such action, including reasonable attorney's fees, to any party who prevails or substantially prevails in such action. "(2) EXEMPTION FOR PLANS.—Notwithstanding the preceding

provisions of this subsection, no plan shall be required in any action to pay any costs and expenses (including attorney's fees). "(f) LIMITATION ON ACTIONS.—

"(1) IN GENERAL.—Except as provided in paragraph (3), an action under this section may not be brought after the later of— "(A) 6 years after the date on which the cause of action arose, or "(B) 3 years after the applicable date specified in paragraph (2). "(2) APPLICABLE DATE.—

"(A) GENERAL RULE.—Except as provided in subparagraph (B), the applicable date specified in this paragraph is the earliest date on which the plaintiff acquired or should have acquired actual knowledge of the existence of such cause of action. "(B) SPECIAL RULE FOR PLAINTIFFS WHO ARE FIDUCIARIES.—

In the case of a plaintiff who is a fiduciary bringing the action in the exercise of fiduciary duties, the applicable date specified in this paragraph is the date on which the plaintiff became a fiduciary with respect to the plan if such date is later than the date described in subparagraph (A). "(3) CASES OF FRAUD OR CONCEALMENT.—In the case of fraud or concealment, the period described in paragraph (1)(B) shall be extended to 6 years after the applicable date specified in paragraph (2).". (b) CIVIL ACTIONS INVOLVING THE PENSION BENEFIT GUARANTY CORPORATION.—

�


text:
Page:United States Statutes at Large Volume 100 Part 1.djvu/299

 PUBLIC LAW 99-272—APR. 7, 1986

100 STAT. 263

(1) ACTIONS AGAINST THE CORPORATION.—Section 4003(f) (29

U.S.C. 1303(f)) is amended to read as follows: "(f)(1) Except with respect to withdrawal liability disputes under part 1 of subtitle E, any person who is a fiduciary, employer, contributing sponsor, member of a contributing sponsor's controlled group, participant, or beneficiary, and is adversely affected by any action of the corporation with respect to a plan in which such person has an interest, or who is an employee organization representing such a participant or beneficiary so adversely affected for purposes of collective bargaining with respect to such plan, may bring an action against the corporation for appropriate equitable relief in the appropriate court. "(2) For purposes of this subsection, the term 'appropriate court' means— "(A) the United States district court before which proceedings under section 4041 or 4042 are being conducted. "(B) if no such proceedings are being conducted, the United States district court for the judicial district in which the plan has its principal office, or "(C) the United States District Court for the District of Columbia. "(3) In any action brought under this subsection, the court may award all or a portion of the costs and expenses incurred in connection with such action to any party who prevails or substantially prevails in such action. "(4) This subsection shall be the exclusive means for bringing actions against the corporation under this title, including actions against the corporation in its capacity as a trustee under section 4042 or 4049. "(5)(A) Except as provided in subparagraph (C), an action under this subsection may not be brought after the later of— "(i) 6 years after the date on which the cause of action arose, or "(ii) 3 years after the applicable date specified in subparagraph (B). "(B)(i) Except as provided in clause (ii), the applicable date specified in this subparagraph is the earliest date on which the plaintiff acquired or should have acquired actual knowledge of the existence of such cause of action. "(ii) In the case of a plaintiff who is a fiduciary bringing the action m the exercise of fiduciary duties, the applicable date specified in this subparagraph is the date on which the plaintiff became a fiduciary with respect to the plan if such date is later than the date specified in clause (i). "(C) In the case of fraud or concealment, the period described in subparagraph (A)(ii) shall be extended to 6 years after the applicable date specified in subparagraph (B). "(6) The district courts of the United States have jurisdiction of actions brought under this subsection without regard to the amount in controversy. "(7) In any suit, action, or proceeding in which the corporation is a party, or intervenes under section 4301, in any State court, the corporation may, without bond or security, remove such suit, action, or proceeding from the State court to the United States district court for the district or division in which such suit, action, or proceeding is pending by following any procedure for removal now or hereafter in effect.'.

Ante, pp. 244, 253.

Ante, p. 258.

29 USC 1451.

�


text:
Page:United States Statutes at Large Volume 100 Part 1.djvu/300

 100 STAT. 264

PUBLIC LAW 99-272—APR. 7, 1986 (2) LIMITATION ON ACTIONS BY THE CORPORATION.—Section

29 USC 1303 note.

4003(e) (29 U.S.C. 1303(e)) is amended by adding at the end thereof the following new paragraph: "(6)(A) Except as provided in subparagraph (C), an action under this subsection may not be brought after the later of— "(i) 6 years after the date on which the cause of action arose, or "(ii) 3 years after the applicable date specified in subparagraph (B). "(B)(i) Except as provided in clause (ii), the applicable date specified in this subparagraph is the earliest date on which the corporation acquired or should have acquired actual knowledge of the existence of such cause of action. "(ii) If the corporation brings the action as a trustee, the applicable date specified in this subparagraph is the date on which the corporation became a trustee with respect to the plan if such date is later than the date described in clause (i). "(C) In the case of fraud or concealment, the period described in subparagraph (A)(ii) shall be extended to 6 years after the applicable date specified in subparagraph (B).". (3) EFFECTIVE DATE.—The amendments made by this subsection shall apply with respect to actions filed after the date of the enactment of this Act. SEC. 11015. PROVISIONS RELATING TO WAIVERS OF MINIMUM FUNDING STANDARD AND EXTENSIONS OF AMORTIZATION PERIOD. (a) SECURITY FOR W A IV E R S. — (1) ERISA AMENDMENT.—

(A) IN GENERAL.—Part 3 of subtitle B of title I is amended— (i) by redesignating section 306 (29 U.S.C. 1086) as section 307; and (ii) by inserting after section 305 (29 U.S.C. 1085) the following new section: "SECURITY FOR WAIVERS OF MINIMUM FUNDING STANDARD AND EXTENSIONS OF AMORTIZATION PERIOD 29 USC 1085a.

29 USC 1301. 29 USC 1083, 1084.

" SEC. 306. (a) SECURITY M A Y B E REQUIRED.—

"(1) IN GENERAL.—Except as provided in subsection (c), the Secretary of the Treasury may require an employer maintaining a defined benefit plan which is a single-employer plan (within the meaning of section 4001(a)(15)) to provide security to such plan as a condition for granting or modifying a waiver under section 303 or an extension under section 3(34. "(2) SPECIAL RULES.—Any security provided under paragraph (1) may be perfected and enforced only by the Pension Benefit Guaranty Corporation or, at the direction of the Corporation, by a contributing sponsor (within the meaning of section 4001(a)(13)) or a member of such sponsor's controlled group (within the meaning of section 4001(a)(14)). "(b) CONSULTATION WITH THE PENSION BENEFIT GUARANTY COR-

PORATION.—Except as provided in subsection (c), the Secretary of the Treasury shall, before granting or modifying a waiver under section 303 or an extension under section 304 with respect to a plan described in subsection (a)(1)— "(1) provide the Pension Benefit Guaranty Corporation with—

�


text:
Page:United States Statutes at Large Volume 100 Part 1.djvu/301

 PUBLIC LAW 99-272—APR. 7, 1986

100 STAT. 265

"(A) notice of the completed application for any waiver, extension, or modification, and "(B) an opportunity to comment on such application within 30 days after receipt of such notice, and "(2) consider— "(A) any comments of the Corporation under paragraph (1)(B), and "(B) any views of any employee organization representing participants in the plan which are submitted in writing to the Secretary of the Treasury in connection with such application. Information provided to the corporation under this subsection shall be considered tax return information and subject to the safeguarding and reporting requirements of section 6103(p) of the Internal Revenue Code of 1954. 26 USC 6103. "(c) EXCEPTION FOR CERTAIN WAIVERS AND EXTENSIONS.—

"(1) IN GENERAL.—The preceding provisions of this section shall not apply to any plan with respect to which the sum of— "(A) the outstanding balance of the accumulated funding deficiencies (within the meaning of section 302(a)(2) of this Act and section 412(a) of the Internal Revenue Code of 1954) 29 USC 1082. of the plan, 26 USC 412. "(B) the outstanding balance of the amount of waived funding deficiencies of the plan waived under section 303 of this Act or section 412(d) of such Code, and "(C) the outstanding balance of the amount of decreases in the minimum funding standard allowed under section 304 of this Act or section 412(e) of such Code, 29 USC 1084. is less than $2,000,000. "(2) ACCUMULATED FUNDING DEFICIENCIES.—For purposes of

paragraph (1)(A), accumulated funding deficiencies shall include any increase in such amount which would result if all applications for waivers of the minimum funding standard under section 303 of this Act or section 412(d) of the Internal Revenue Code of 1954 and for extensions of the amortization period under section 304 of this Act or section 412(e) of such Code which are pending with respect to such plan were denied.". (B)

CONFORMING

AMENDMENT.—Section

211(c)(1)

is

29 USC 1083.

29 USC 1061.

amended by striking out "306(c)" and inserting in lieu thereof "307(c)". (C) CLERICAL AMENDMENT.—The table of sections in section 1 is amended by striking out the item relating to section 306 and inserting in lieu thereof the following new items: "Sec. 306. Security for waivers of minimum funding standard and extensions of amortization period. "Sec. 307. Effective dates." (2) AMENDMENTS TO THE INTERNAL REVENUE CODE OF I 9 5 4. —

(A) IN GENERAL.—Subsection (f) of section 412 of the Internal Revenue Code of 1954 (relating to requirement that benefits may not be increased during waiver or extension period) is amended by adding at the end thereof the following new paragraph: "(3) SECURITY FOR WAIVERS AND EXTENSIONS; TIONS.— "(A) SECURITY MAY BE REQUIRED.—

CONSULTA-

26 USC 412.

�


text:
Page:United States Statutes at Large Volume 100 Part 1.djvu/302

 100 STAT. 266

29 USC 1301.

Ante, p. 238. Ante, p. 238.

PUBLIC LAW 99-272—APR. 7, 1986 "(i) IN GENERAL.—Except as provided in subparagraph (C), the Secretary may require an employer maintaining a defined benefit plan which is a singleemployer plan (within the meaning of section 4001(a)(15) of the Employee Retirement Income Security Act of 1974) to provide security to such plan as a condition for granting or modifying a waiver under subsection (d) or an extension under subsection (e). "(ii) SPECIAL RULES.—Any security provided under clause (i) may be perfected and enforced only by the Pension Benefit Guaranty Corporation, or at the direction of the Corporation, by a contributing sponsor (within the meaning of section 4001(a)(13) of such Act), or a member of such sponsor's controlled group (within the meaning of section 4001(a)(14) of such Act). "(B) CONSULTATION WITH THE PENSION BENEFIT GUARANTY

29 USC 1002.

26 USC 6103.

CORPORATION.—Except as provided in subparagraph (C), the Secretary shall, before granting or modifying a waiver under subsection (d) or an extension under subsection (e) with respect to a plan described in subparagraph (A)(i)— "(i) provide the Pension Benefit Guaranty Corporation with— "(I) notice of the completed application for any waiver, extension, or modification, and "(II) an opportunity to comment on such application within 30 days after receipt of such notice, and "(ii) consider— "(I) any comments of the Corporation under clause (i)(II), and "(II) any views of any employee organization (within the meaning of section 3(4) of the Employee Retirement Income Security Act of 1974) representing participants in the plan which are submitted in writing to the Secretary in connection with such application. Information provided to the corporation under this subparagraph shall be considered tax return information and subject to the safeguarding and reporting requirements of section 6103(p). "(C) EXCEPTION FOR CERTAIN WAIVERS AND EXTENSIONS.—

29 USC 1082. 29 USC 1083.

29 USC 1084.

"(i) IN GENERAL.—The preceding provisions of this paragraph shall not apply to any plan with respect to which the sum of— "(I) the outstanding balance of the accumulated funding deficiencies (within the meaning of subsection (a) and section 302(a) of such Act) of the plan, "(II) the outstanding balance of the amount of waived funding deficiencies of the plan waived under subsection (d) or section 303 of such Act, and "(III) the outstanding balance of the amount of decreases in the minimum funding standard allowed under subsection (e) or section 304 of such Act,

is less than $2,000,000. "(ii) ACCUMULATED FUNDING DEFICIENCIES.—For purposes of clause (i)(I), accumulated funding deficiencies shall include any increase in such amount which would

�


text:
Page:United States Statutes at Large Volume 100 Part 1.djvu/303

 PUBLIC LAW 99-272—APR. 7, 1986

100 STAT. 267

result if all applications for waivers of the minimum funding standard under subsection (d) or section 303 of such Act and for extensions of the amortization period 29 USC 1083. under subsection (e) or section 304 of such Act which 29 USC 1084. are pending with respect to such plan were denied.". (B) CONFORMING AMENDMENTS.—Section 412(f) of the

In-

ternal Revenue Code of 1954 is amended— 26 USC 412. (i) by striking out the heading thereof and inserting in lieu thereof: "(f) REQUIREMENTS RELATING TO WAIVERS AND EXTENSIONS.—",

and (ii) by striking out the heading of paragraph (1) thereof and inserting in lieu thereof: "(1) BENEFITS MAY NOT BE INCREASED DURING WAIVER OR EXTENSION PERIOD.—". (3) EFFECTIVE DATES.—The amendments made by this subsec-

29 USC 1085a tion shall apply with respect to applications for waivers, exten- note, sions, and modifications filed on or after the date of the enactment of this Act. (b) APPLICABLE INTEREST RATE UNDER ARRANGEMENTS PROVIDING FOR WAIVERS AND EXTENSIONS.— (1) AMENDMENTS TO ERISA.— (A) VARIANCES FROM THE MINIMUM FUNDING STANDARD.—

Section 303(a) (29 U.S.C. 1083(a)) is amended by adding at the end thereof the following new sentence: "The interest rate used for purposes of computing the amortization charge described in section 302(b)(2)(C) for a variance granted under this subsection shall be the rate determined under section 6621(b) of the Internal Revenue Code of 1954.".

29 USC 1082. 26 USC 6621.

(B) EXTENSIONS OF THE AMORTIZATION PERIOD.—Section

304(a) (29 U.S.C. 1084(a)) is amended by adding after and below paragraph (2) the following new sentence: "The interest rate applicable under any arrangement entered into by the Secretary in connection with an extension granted under this subsection shall be the rate determined under section 6621(b) of the Internal Revenue Code of 1954.". (2) AMENDMENTS TO INTERNAL REVENUE CODE.— (A) VARIANCES FROM THE MINIMUM FUNDING STANDARD.—

Paragraph (1) of section 412(d) of the Internal Revenue Code of 1954 (relating to waivers in case of substantial business hardship) is amended by adding at the end thereof the following new sentence: "The interest rate used for purposes of computing the amortization charge described in section 412(b)(2)(C) for a variance granted under this subsection shall be the rate determined under section 6621(b).". (B) EXTENSIONS OF THE AMORTIZATION PERIOD.—Subsection

(e) of section 412 of such Code (relating to extension of amortization period) is amended by adding after and below paragraph (2) the following new sentence: "The interest rate applicable under any arrangement entered into by the Secretary in connection with an extension granted under this subsection shall be the rate determined under section 6621(b).".

26 USC 412.

�


text:
Page:United States Statutes at Large Volume 100 Part 1.djvu/304

 100 STAT. 268

PUBLIC LAW 99-272—APR. 7, 1986

SEC. 11016. CONFORMING, CLARIFYING, TECHNICAL, AND MISCELLANEOUS AMENDMENTS. (a) CONFORMING AMENDMENTS RELATING TO PLAN TERMINATIONS.— (1) ESTIMATED BENEFITS FOR CERTAIN SINGLE-EMPLOYER

29 USC 1344.

PLANS.—Section 4005(b)(2) (29 U.S.C. 1305(b)(2)) is amended— (A) by striking out "and" at the end of subparagraph (C); (B) by striking out the period at the end of subparagraph (D) and inserting in heu thereof ", and"; and (C) by adding at the end thereof the following: "(E) to pay to participants and beneficiaries the estimated amount of benefits which are guaranteed by the corporation under this title and the estimated amount of other benefits to which plan assets are allocated under section 4044, under single-employer plans which are unable to pay benefits when due or which are abandoned.". (2) CREDITS TO REVOLVING FUND.—Section 4005(b)(1) (29 U.S.C. 1305(b)(1)) is amended— (A) by striking out "and" at the end of subparagraph (E); (B) by redesignating subparagraph (F) as subparagraph (G); and (C) by inserting after subparagraph (E) the following new subparagraph: "(F) attorney's fees awarded to the corporation, and". (3) RESTORATION OF PLANS.—Section 4047 (29 U.S.C. 1347) is amended— (A) in the first sentence, by inserting "under section 4041 or 4042" after "terminated" each place it appears; and (B) in the second sentence, by striking out "section 4042" and inserting in lieu thereof "section 4041 or 4042". (4) TERMINATION DATE.—Section 4048(a) (29 U.S.C. 1348(a)) is amended— (A) by striking out "date of termination" and inserting in lieu thereof "termination date"; (B) by redesignating paragraphs (1) through (3) as paragraphs (2) through (4), respectively; (C) in paragraph (2) (as redesignated), by inserting "in a distress termination" after "terminated" and by striking out "section 4041" and inserting in lieu thereof "section 4041(c)"; (D) by inserting before paragraph (2) (as redesignated) the following new paragraph: "(1) in the case of a plan terminated in a standard termination in accordance with the provisions of section 4041(b), the termination date proposed in the notice provided under section 4041(a)(2),"; and (E) in paragraph (4) (as redesignated), by striking out "in accordance with the provisions of either section" and inserting in lieu thereof "under section 4041(c) or 4042". (5) CONFORMING AMENDMENTS TO SPECIAL LIABILITY RULES RELATING TO CERTAIN SINGLE-EMPLOYER PLANS UNDER MULTIPLE CONTROLLED GROUPS.— (A) LIABILITY OF SUBSTANTIAL EMPLOYER FOR WITHDRAWAL.—

(i) Section 4063(a) (29 U.S.C. 1363(a)) is amended—

�


text:
Page:United States Statutes at Large Volume 100 Part 1.djvu/305

 PUBLIC LAW 99-272—APR. 7, 1986

100 STAT. 269

(I) by striking out "plan under which more than one employer makes contributions (other than a multiemployer plan)" and inserting in lieu thereof "single-employer plan which has two or more contributing sponsors at least two of whom are not under common control"; (II) in paragraph (1), by striking out "withdrawal of a substantial employer" and inserting in lieu thereof "withdrawal during a plan year of a substantial employer for such plan year"; (III) in paragraph (2), by striking out "of such employer" and all that follows and inserting in lieu thereof "of all persons with respect to the withdrawal of the substantial employer."; (IV) by striking out "whether such employer is liable for any amount under this subtitle with respect to the withdrawal" and inserting in lieu thereof "whether there is liability resulting from the withdrawal of the substantial employer"; and (V) by striking out "notify such employer" and inserting in lieu thereof "notify the liable persons". (ii) Section 4063(b) (29 U.S.C. 1363(b)) is amended— (I) by striking out "an employer" and all that follows down through "shall be liable" and inserting in lieu thereof "any one or more contributing sponsors who withdraw, during a plan year for which they constitute a substantial employer, from a single-employer plan which has two or more contributing sponsors at least two of whom are not under common control, shall, upon notification of such contributing sponsors by the corporation as provided by subsection (a), be liable, together with the members of their controlled groups,"; (II) by striking out "such employer's"; (III) by striking out "the employer's withdrawal" and inserting in lieu thereof "the withdrawal referred to in subsection (a)(1)"; (IV) in paragraph (1), by striking out "such employer" and inserting in lieu thereof "such contributing sponsors"; (V) in paragraph (2), by striking out "all employers" and inserting in lieu thereof "all contributing sponsors"; and (VI) by striking out "the liability of each such employer" and inserting in lieu thereof "such liability". (iii) Section 4063(c) (29 U.S.C. 1363(c)) is amended— (I) in paragraph (1), by striking out "In lieu of payment of his liability under this section the employer" and inserting in lieu thereof "In lieu of payment of a contributing sponsor's liability under this section, the contributing sponsor"; (II) in paragraph (2), by inserting "under section 4041(c) or 4042" after "terminated", by striking out "of such employer", and by striking out "to the

�


text:
Page:United States Statutes at Large Volume 100 Part 1.djvu/306

 100 STAT. 270

PUBLIC LAW 99-272—APR. 7, 1986 employer (or his bond cancelled)" and inserting in lieu thereof "(or the bond cancelled)"; and (III) in paragraph (3), by inserting "under section 4041(c) or 4042" after "terminates" and by striking out "employer" in subparagraph (C) and inserting in lieu thereof "contributing sponsor". (iv) Section 4063(d) (29 U.S.C. 1363(d)) is amended— (I) by striking out "Upon a showing by the plan administrator of a plan (other than a multiemployer plan) that the withdrawal from the plan by any employer or employers has resulted" and inserting in lieu thereof "Upon a showing by the plan administrator of the plan that the withdrawal from the plan by one or more contributing sponsors has resulted"; (II) by striking out "by employers"; (III) in paragraph (1), by striking out "their employer's" and inserting in lieu thereof "the"; and (IV) in paragraph (2), by striking out "termination" and inserting in lieu thereof "plan terminated under section 4042". (v) Section 4063(e) (29 U.S.C. 1363(e)) is amended— (I) by striking out "to any employer or plan administrator"; and (II) by striking out "all other employers" and inserting in lieu thereof "contributing sponsors". (vi) The heading for section 4063 is amended by adding at the end thereof the following "FROM SINGLEEMPLOYER GROUPS.". (B)

PLANS

UNDER

MULTIPLE

CONTROLLED

A L L O C A T I O N O F LIABILITY U P O N TERMINATION O F CER-

T A I N SINGLE-EMPLOYER PLANS.—

(i) Section 4064(a) (29 U.S.C. 1364(a)) is amended— (I) by striking out "all employers who maintain a plan under which more than one employer makes contributions (other than a multiemployer plan)" and inserting in lieu thereof "all contributing sponsors of a single-employer plan which has two or more contributing sponsors at least two of whom are not under common control"; and (II) by inserting "under section 4041(c) or 4042"

29 USC 1362.

(ii) Section 4064(b) (29 U.S.C. 1364(b)) is amended to read as follows: "(b) The corporation shall determine the liability with respect to each contributing sponsor and each member of its controlled group in a manner consistent with section 4062, except that— "(1) the amount of the liability determined under section 4062(b)(1) with respect to the entire plan— "(A) shall be determined without regard to clauses (i)(II) and (ii) of section 4062(b)(1)(A), and "(B) shall be allocated to each controlled group by multiplying such amount by a fraction— "(i) the numerator of which is the amount required to be contributed to the plan for the last 5 plan years

�


text:
Page:U.S. Department of the Interior Annual Report 1880.djvu/28

26 were in progress to bring to them their wives and children, who at that time were living on the San Carlos Reservation in Arizona. But the appearance of some officers of the law on the reservation, whom the Indians suspected of having come there for the purpose of arresting them under indictments found against them for horse-stealing and murder, Victoria and his men effected their escape, suddenly left the Mescalero Reservation, took with them other southern Apaches, and resumed their old marauding practices until after many fights and vicissitudes they came to their end. Some remnants of his band seem to be still at large, but it is thought that they can easily be overcome and caught, and that then peace will be restored on our southern frontier.

Congress at its last session passed an act providing for the settlement of the Lemhi Indians upon Fort Hall Reservation, and also for the cession of a part of that reservation to the United States in consideration of certain annuities to be paid to the Indians affected thereby, subject to the consent of the latter. I had a personal conference with the chiefs of the Lemhi and Fort Hall Indians at the agency of the latter in August last, in which a majority of the Lemhi Chiefs and headmen declared their unwillingness to abandon their present abode. Their consent to their removal provided for in the law not being obtained, no further steps were taken in that direction. The Fort Hall Indians, on the other hand, declared themselves satisfied with the arrangements made; and it will therefore be necessary so to change the law as to adapt it to this new state of circumstances, which is hereby respectfully recommended.

Early last winter Chief Winnemucca, his daughter, Sarah Winnemucca, and some headmen of the Pi-Utes, asked permission to come to Washington for the purpose of making certain arrangements for the permanent settlement of their people. That permission was granted and they represented that most of the Pi-Utes scattered over Nevada and Southern Oregon, as well as those settled on the Yakama Reservation in Washington Territory, were desirous to move to the Malheur Reservation in Oregon, for the purpose of cultivating the soil and establishing permanent homes. They received the assurance that this department would facilitate such a movement, provided the Indians concerned really desired it, and that in such case their settlement upon the Malheur Reservation would be aided in every possible manner, but that those Pi-Utes who were at present working for wages, or who were settled on the Yakama Reservation or other lands, and did not desire to remove to the Malheur Reservation, should in no way be forced to do so. On the occasion of my visit to the Pyramid Lake Reservation in Nevada, where I met several chiefs


text:
Page:United States Statutes at Large Volume 100 Part 1.djvu/307

 PUBLIC LAW 99-272—APR. 7, 1986

100 STAT. 271

ending prior to the termination date by persons in such controlled group as contributing sponsors, and "(ii) the denominator of which is the total amount required to be contributed to the plan for such last 5 plan years by all persons as contributing sponsors, and clauses (i)(II) and (ii) of section 4062(b)(1)(A) shall be applied 29 USC 1362. separately with respect to each such controlled group, and "(2) the amount of the liability determined under section 4062(c)(1) with respect to the entire plan shall be allocated to each controlled group by multiplying such amount by the fraction described in paragraph (1)(B) in connection with such controlled group. The corporation may also determine the liability of each such contributing sponsor and member of its controlled group on any other equitable basis prescribed by the corporation in regulations.", (iii) The heading for section 4064 is amended to read as follows: "LIABILITY ON TERMINATION OF SINGLE-EMPLOYER PLANS UNDER MULTIPLE CONTROLLED GROUPS". (C) ANNUAL NOTIFICATION TO SUBSTANTIAL EMPLOYERS.—

Section 4066 (29 U.S.C. 1366) is amended— (i) by striking out "each plan under which contributions are made by more than one employer (other than a multiemployer plan)" and inserting in lieu thereof "each single-employer plan which has at least two contributing sponsors at least two of whom are not under common control"; (ii) by striking out "any employer making contributions under that plan" and inserting in lieu thereof "contributing sponsor of the plan"; and (iii) by striking out "that he is a substantial employer" and inserting in lieu thereof "that such contributing sponsor (alone or together with members of such contributing sponsor's controlled group) constitutes a substantial employer". (6) ADDITIONAL AMENDMENTS RELATING TO RECOVERY AMOUNTS OF LIABILITY.—

OF

(A) Section 4067 (29 U.S.C. 1367) is amended— (i) in the heading, by striking out "EMPLOYER"; (ii) by striking out "employer or employers" and inserting in lieu thereof "contributing sponsors and members of their controlled groups"; and (iii) by inserting "of amounts of liability to the corporation accruing as of the termination date" after "deferred payment". (B) Section 4068 (29 U.S.C. 1368) is amended— (i) in the heading, by striking out "OF EMPLOYER"; (ii) in subsection (a), by striking out "employer or employers" the first place it appears and inserting in lieu thereof "person", by striking out "neglect or refuse" and inserting in lieu thereof "neglects or refuses", by inserting "to the extent of an amount equal to the unpaid amount described in section 4062(b)(l)(A)(i)" after "liability" and after "corporation" the second place it appears, and by striking out

�


text:
Page:United States Statutes at Large Volume 100 Part 1.djvu/308

 100 STAT. 272

26 USC 6323. Ante, p. 237.

29 USC 1368.

PUBLIC LAW 99-272—APR. 7, 1986

"employer or employers" and inserting in lieu thereof "person"; (iii) in subsection (d)(1), by striking out "employer" and inserting in lieu thereof "liable person"; (iv) in subsection (d)(2), by striking out "employer" each place it appears and inserting in lieu thereof "liable person"; (v) in subsection (e), by striking out "employer or employers" and inserting in lieu thereof "liable person"; and (vi) by striking out subsection (c)(1) (29 U.S.C. 1368(c)(1)) and inserting in lieu thereof the following: "(c)(1) Except as otherwise provided under this section, the priority of a lien imposed under subsection (a) shall be determined in the same manner as under section 6323 of the Internal Revenue Code of 1954 (as in effect on the date of the enactment of the SingleEmployer Pension Plan Amendments Act of 1986). Such section 6323 shall be applied for purposes of this section by disregarding subsection (g)(4) and by substituting— "(A) 'lien imposed by section 4068 of the Employee Retirement Income Security Act of 1974' for 'lien imposed by section 6321' each place it appears in subsections (a), (b), (c)(1), (c)(4)(B), (d), (e), and (h)(5); "(B) 'the corporation' for 'the Secretary' in subsections (a) and (b)(9)(C); "(C) 'the payment of the amount on which the section 4068(a) lien is based' for 'the collection of any tax under this title' in subsection (b)(3); "(D) 'a person whose property is subject to the lien' for 'the taxpayer' in subsections (b)(8), (c)(2)(A)(i) (the first place it appears), (c)(2)(A)(ii), (c)(2)(B), (c)(4)(B), and (c)(4)(C) (in the matter preceding clause (i)); "(E) 'such person' for 'the taxpayer' in subsections (c)(2)(A)(i) (the second place it appears) and (c)(4)(C)(ii); "(F) 'payment of the loan value of the amount on which the lien is based is made to the corporation' for 'satisfaction of a levy pursuant to section 6332(b)' in subsection (b)(9)(C); "(G) 'section 4068(a) lien' for 'tax lien' each place it appears in subsections (c)(1), (c)(2)(A), (c)(2)(B), (c)(3)(B)(iii), (c)(4)(B), (d), and (h)(5); and "(H) 'the date on which the lien is first filed' for 'the date of the assessment of the tax' in subsection (g)(3)(A).". (b) CLARIFICATION OF DESCRIPTION OF CERTAIN INFORMATION REQUIRED To BE FILED IN ANNUAL REPORT.—

(1) IN GENERAL.—Section 103(d)(6) (29 U.S.C. 1023(d)(6)) is amended to read as follows: "(6) Information required in regulations of the Pension Benefit Guaranty Corporation with respect to: "(A) the current value of the assets of the plan, "(B) the present value of all nonforfeitable benefits for participants and beneficiaries receiving payments under the plan, "(C) the present value of all nonforfeitable benefits for all other participants and beneficiaries, "(D) the present value of all accrued benefits which are not nonforfeitable (including a separate accounting of such

�


text:
Page:United States Statutes at Large Volume 100 Part 1.djvu/309

 PUBLIC LAW 99-272—APR. 7, 1986

100 STAT. 273

benefits which a r e benefit c o m m i t m e n t s, a s defined i n section 4001(a)(16)), and "(E) the a c t u a r i a l a s s u m p t i o n s and techniques used in determining the values described in subparagraph s (A) through (D).".

29 USC 1301.

(2) CONFORMING AMENDMENT. — S e c t i o n 104(a)(2)(A) (29 U.S.C.

1024(a)(2)(A)) is amended by striking o u t the second sentence. (3) T R A N S I T I O N

RULES.—Any

regulations,

modifications,

or

waivers which h a v e been issued by the Secretary of Labor with respect to section 103(d)(6) of the Employee Retirement Income Security Act of 1974 (as in effect immediately before the date of the e n a c t m e n t of t h i s Act) shall r e m a i n in full force and effect u n t i l modified by any regulations with respect to such section 103(d)(6) prescribed by the Pension Benefit G u a r a n t y Corporation. (c) ADDITIONAL AMENDMENTS. — (1) DEFINITION FOR TITLE

L—Section

3(37)(A)

(29

29 USC 1023

"°*^29 USC 1023.

U.S.C.

1002(37)(A)) is amended by inserting " p e n s i o n " before " p l a n ". (2) N O T I C E O F REQUEST FOR WAIVERS O F MINIMUM F U N D I N G STANDARDS AND RIGHT TO SUBMIT RELEVANT INFORMATION.—Sec-

tion 303 (29 U.S.C. 1083) is amended by inserting after subsection (d) the following new subsection: "(e)(1) The Secretary of the Treasury shall, before g r a n t i n g a waiver under this section, r e q u i r e each applicant to provide evidence satisfactory to such Secretary that the applicant has provided notice of the filing of the application for such waiver to each employee organization r e p r e s e n t i n g employees covered by the affected plan. "(2) The Secretary of the Treasury shall consider any r e l e v a n t information provided by a person to w h o m notice w a s given under paragraph (1).". (3) N O T I C E O F REQUEST FOR EXTENSIONS O F AMORTIZATION PERIOD A N D RIGHT TO SUBMIT RELEVANT INFORMATION.—Section

304 (29 U.S.C. 1084) is amended by adding a t the end thereof the following n e w subsection: "(c)(1) The Secretary of the Treasury shall, before g r a n t i n g a n extension under t h i s section, r e q u i r e each applicant to provide evidence satisfactory to such Secretary that the applicant has provided notice of the filing of the application for such extension to each employee organization r e p r e s e n t i n g employees covered by the affected plan. "(2) The Secretary of the Treasury shall consider any r e l e v a n t information provided by a person to whom notice w a s given under paragraph (1).". (4) AMENDMENT TO THE INTERNAL REVENUE CODE O F 1954.—

Subsection (f) of section 412 of the I n t e r n a l Revenue Code of 1954 (relating to benefits may not be increased during waiver or 26 USC 412. extension period), a s amended by the preceding provisions of this title, is f u r the r amended by adding a t the e n d thereof the following new paragraph: "(4) ADDITIONAL REQUIREMENTS.—

"(A) ADVANCE NOTICE.—The Secretary shall, before g r a n t ing a waiver under subsection (d) or a n extension under subsection (e), r e q u i r e each applicant to provide evidence satisfactory to the Secretary that the applicant has provided notice of the filing of the application for such waiver

�


text:
Page:United States Statutes at Large Volume 100 Part 1.djvu/310

 100 STAT. 274

PUBLIC LAW 99-272—APR. 7, 1986 or extension to each employee organization representing employees covered by the affected plan. "(B)

CONSIDERATION OF RELEVANT INFORMATION.—The

Secretary shall consider any relevant information p r o v e d by a person to whom notice was given under subparagraph (A).". (5) AUDIT OF PLANS TERMINATED IN STANDARD TERMINATION.—

Ante, p. 244.

Section 4003(a) (29 U.S.C. 1303(a)) is amended by adding at the end thereof the following new sentence: "The corporation shall annually audit a statistically significant number of plans terminating under section 4041(b) to determine whether participants and beneficiaries have received their benefit commitments. Each audit shall include a statistically significant number of participants and beneficiaries.". (6) REPEAL OF EXPIRED AUTHORITY.—Section 4004 (29 U.S.C. 1304) is repealed. (7) VOTING BY CORPORATION OF STOCK PAID AS LIABILITY.—

Ante, p. 258.

Section 4005 (29 U.S.C. 1305) is amended by adding at the end thereof the following new subsection: "(g) Any stock in a person liable to the corporation under this title which is paid to the corporation by such person or a member of such person's controlled group in satisfaction of such person's liability under this title may be voted only by the custodial trustees or outside money managers of the corporation or fiduciaries with respect to trusts to which the requirements of section 4049 apply.". (8) EFFECTIVE YEARS.—Section 4022(b)(7) (29 U.S.C. 1322(b)(7)) is amended by striking out "following" and inserting in lieu thereof "beginning with". (9) TREATMENT OF QUALIFIED PRETIREMENT SURVIVOR ANNU-

29 USC 1055.

ITIES.—Section 4022 (29 U.S.C. 1322) is amended by adding at the end thereof the following new subsection: "(d) For purposes of subsection (a), a qualified preretirement survivor annuity (as defined in section 205(e)(1)) with respect to a participant under a terminated single-employer plan shall not be treated as forfeitable solely because the participant has not died as of the termination date.". (10)

29 USC 1082.

CLARIFICATION OF POWER TO COLLECT AMOUNTS DUE

THE CORPORATION.—Section 4042(d)(l)(B)(ii) (29 U.S.C. 1342(d)(l)(B)(ii)) is amended by inserting after "amounts due the plan" the following: ", including but not limited to the power to collect from the persons obligated to meet the requirements of section 302 or the terms of the plan". (11) CONFORMING AMENDMENT.—Section 4042(d)(3) (29 U.S.C. 1342(d)(3)) is amended by striking out "same duties as a trustee appointed under section 47 of the Bankruptcy Act" and inserting in lieu thereof "same duties as those of a trustee under section 704 of title 11, United States Code". (12) CONFORMING AMENDMENT.—Section 4044(a) (29 U.S.C.

1344(a)) is amended by striking out "defined benefit". (13) CLERICAL CORRECTIONS.—Section 4044(a)(4) (29 U.S.C. 1344(a)(4)(A)) is amended— (A) in subparagraph (A), by striking out "section 4022(b)(5)" and inserting in lieu thereof "section 4022B(a)"; and (B) in subparagraph (B), by striking out "section 4022(b)(6)" and inserting in lieu thereof "section 4022(b)(5)".

�


text:
Page:United States Statutes at Large Volume 100 Part 1.djvu/311

 PUBLIC LAW 99-272—APR. 7, 1986

100 STAT. 275

(14) RELEASE OF LIEN.—Section 4068(e) (29 U.S.C. 1368(e)) is amended by striking out ", with the consent of the board of directors,". (d) STUDIES BY COMPTROLLER GENERAL.—

(1) IN GENERAL.—The Comptroller General of the United States may, pursuant to the request of any Member of Congress, study employee benefit plans, including the effects of such plans on employees, participants, and their beneficiaries. (2) ACCESS TO BOOKS, DOCUMENTS, ETC.—For the

29 USC 1143a. Congress.

purpose of

conducting studies under this subsection, the Comptroller General, or any of his duly authorized representatives, shall have access to and the right to examine and copy any books, documents, papers, records, or other recorded information— (A) within the possession or control of the administrator, sponsor, or employer of and persons providing services to any employee benefit plan, and (B) which the Comptroller General or his representative finds, in his own judgment, pertinent to such study. The Comptroller General shall not disclose the identity of any individual or employer in making any information obtained under this subsection available to the public. (3) DEFINITIONS.—For purposes of this subsection, the terms "employee benefit plan", "participant", "administrator", "beneficiary', "plan sponsor", "employee", and "employer" are defined in section 3 of the Employee Retirement Income Security Act of 1974. (4) EFFECTIVE DATE.—The preceding provisions of this subsection shall be effective on the date of the enactment of this Act. (e) AMENDMENTS TO THE TABLE OF CONTENTS OF ERISA.—The table of contents in section 1 is amended— (1) by striking out the item relating to section 4004; (2) by striking out the item relating to section 4042 and inserting in lieu thereof the following new item: "Sec. 4042. Institution of termination proceedings by the corporation.";

(3) by inserting after the item relating to section 4048 the following new item: "Sec. 4049. Distribution to participants and beneficiaries of liability payments to section 4049 trust.";

and (4) by striking out the items relating to subtitle D of title IV and inserting in lieu thereof the following new items: "Subtitle D—Liability "Sec. 4061. Amounts payable by the corporation. "Sec. 4062. Liability for termination of single-employer plans under a distress termination or a termination by the corporation. "Sec. 4063. Liability of substantial employer for withdrawal from single-employer plans under multiple controlled groups. "Sec. 4064. Liability on termination of single-employer plans under multiple controlled groups. "Sec. 4065. Annual report of plan administrator. "Sec. 4066. Annual notification of substantial employers. "Sec. 4067. Recovery of liability for plan termination. "Sec. 4068. Lien for liability. "Sec. 4069. Treatment of transactions to evade liability; effect of corporate reorganization. "Sec. 4070. Enforcement authority relating to terminations of single-employer plans.".

Classified information.

29 USC 1002. 29 USC 1143a note.

�


text:
Page:United States Statutes at Large Volume 100 Part 1.djvu/312

 100 STAT. 276 29 USC 1306

PUBLIC LAW 99-272—APR. 7, 1986

SEC. 11017. STUDIES. (a) SINGLE-EMPLOYER PENSION PLAN TERMINATION INSURANCE PREMIUM STUDY.—

29 USC 1301.

(1) IN GENERAL.—As soon as practicable after the date of the enactment of this Act, the Pension Benefit Guaranty Corporation shall conduct a study of the premiums established under the single-employer pension plan termination insurance program under title IV of the Employee Retirement Income Security Act of 1974. (2) MATTERS TO BE STUDIED.—The Corporation shall specifically consider in its study the following matters: (A) the effect of the amendments made by this title on the long-term stability of the single-employer pension plan termination insurance program under title IV of the Employee Retirement Income Security Act of 1974, (B) alternatives to the current statutory mechanism with respect to proposals for changes in the premium levels under such program, (C) the methods currently used by the Corporation in projecting future program costs of the single-employer pension plan termination insurance program, (D) alternative methods of projecting such future program costs and an evaluation of each such alternative method, (E) the methods currently used by the Corporation in determining premiums needed to allocate and adequately fund such future program costs, (F) alternative methods of making such premium determinations and an evaluation of each such alternative method, and (G) alternative premium bases upon which some or all of such projected future program costs would be allocated on an exposure-related or risk-related computation, which may take into account the different exposures or risks imposed on the Corporation by plan sponsors with different histories and under different circumstances. (3) SUBMISSION OF CORPORATION'S REPORT.—Not later than one year after the date of the enactment of this Act, the Corporation shall report the results of its study, together with any recommendations for statutory changes, to an advisory council, to be appointed by the chairmen of the Committee on Education and Labor and the Committee on Ways and Means of the House of Representatives and the Committee on Labor and Human Resources and the Committee on Finance of the Senate. The advisory council shall be composed of representatives of singleemployer plan sponsors, employee organizations representing single-employer plan participants, and members of the general public who are experts in the matters to be considered in the study. The members of the advisory council shall serve without compensation. (4) SUBMISSION OF COUNCIL'S REPORT TO CONGRESS.—Not later than 180 days after the date of the submission of the Corporation's report to the advisory council under paragraph (3), the advisory council shall submit the results of the Corporation's study and the Corporation's recommendations, together with the recommendations of the council, to the Speaker of the

�


text:
Page:United States Statutes at Large Volume 100 Part 1.djvu/313

 PUBLIC LAW 99-272—APR. 7, 1986

100 STAT. 277

House of Representatives and the President pro tempore of the Senate. (5) COOPERATION BY THE PENSION BENEFIT GUARANTY CORPORATION AND OTHER FEDERAL AGENCIES.—The Corporation shall co-

operate with the advisory council in reviewing the results of the Corporation's study and recommendations. In order to avoid unnecessary expense and duplication, to the extent not otherwise prohibited by law, the Corporation and any other Federal agency shall provide to the advisory council any data, analyses, or other relevant information related to the m a t t e r s under review. (b) OVERFUNDED PENSION P L A N S T U D Y. —

(1) IN GENERAL.—As soon as practicable after the date of e n a c t m e n t of this Act, the Secretary of Labor shall conduct a study of terminations resulting in residual assets under section 4044(d) of the Employee Retirement Income Security Act of 1974. (2) REPORT.—No later than May 1, 1986, the Secretary of Labor shall submit a report on the study conducted under paragraph (1), together with any recommendations for s t a t u to r y changes, to the chairmen of the Committee on Education and Labor and the Committee on Ways and Means of the House of Representatives and the Committee on Labor and Human Resources and the Committee on Finance of the Senate. SEC. 11018. LIMITATION ON REGULATIONS.

29 USC 1344.

29 USC 1135

(a) REGULATORY T R E A T M E N T OF ASSETS OF R E A L ESTATE E N T I T I E S. —

(1) IN GENERAL.—Except as a defense, no rule or regulation adopted pursuant to the Secretary's proposed regulation defining "plan assets" for purposes of the Employee Retirement Income Security Act of 1974 (50 Fed. Reg. 961, January 8, 1985, as modified by 50 Fed. Reg. 6861, February 15, 1985), or any reproposal thereof prior to the adoption of the regulations required to be issued in accordance with subsection (d), shall apply to any asset of a real estate entity in which a plan, account, or a r r a n g e m e n t subject to such Act invests if— (A) any interest in the entity is first offered to a plan, account, or a r r a n g e m e n t subject to such Act investing in the entity (hereinafter in this section referred to as a "plan investor") on or before the date which is 120 days after the date of publication of such rule or regulation as a final rule or regulation; (B) no plan investor acquires a n interest in the entity from a n issuer or under w r i t e r a t any time on or after the date which is 270 days after the date of publication of such r u l e or regulation a s a final rule or regulation (except pursuant to a contract or subscription binding on the plan investor and entered into, or tendered, before the expiration of such 270-day period, or pursuant to the exercise, on or before December 31, 1990, of a w a r r a n t which was the subject of a n effective registration under the Securities Act of 1933 (15 U.S.C. 77q et seq.) prior to the date of the 15 USC 77ae^ e n a c t m e n t of this section); and seq. (C) every interest in the entity acquired by a plan investor (or contracted for or subscribed to by a plan investor) before the expiration of such 270-day period is a security—

�


text:
Page:United States Statutes at Large Volume 100 Part 1.djvu/314

 100 STAT. 278

15 USC 77a et ««9-

PUBLIC LAW 99-272—APR. 7, 1986 (i) which is part of an issue or class of securities which upon such acquisition or at any time during the offering period is held by 100 or more persons; (ii) the economic rights of ownership in respect of which are freely transferable; (iii) which is registered under the Securities Act of 1933; and (iv) which is part of an issue or class of securities which is registered under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) (or is so registered within three years of the effective date of the registration statement of such securities for purposes of the Securities Act of 1933: Provided, That the issuer provides plan investors with such reports with respect to the offering period as are required with respect to such period by the Securities and Exchange Commission under such Acts and the rules and regulations promulgated thereunder). In the case of partnerships organized prior to enactment of this section, the requirements of subparagraphs (iii) and (iv) shall not apply to initial limited partnership interests in an entity otherwise described above: Provided, That such entity was the subject of an effective registration under the Securities Act of 1933 prior to the date of the enactment of this section, such interests were issued solely for partnership organizational purposes in compliance with State limited partnership laws, and such interest has a value as of the date of issue of less than $20,000 and represents less than one percent of the total interests outstanding as of the completion of the offering period. (2) MAINTENANCE OF CURRENT REGULATORY TREATMENT.—No

29 USC 1001 ^°^-

asset of any real estate entity described in paragraph (1) shall be treated as an asset of any plan investor for any purpose of the Employee Retirement Income Security Act of 1974 if the assets of such entity would not have been assets of such plan investor under the provisions of— (A) Interpretive Bulletin 75-2 (29 CFR 2509 750-2); or (B) the regulations proposed by the Secretary of Labor and published— (i) on August 28, 1979, at 44 Fed. Reg. 50363; (ii) on June 6, 1980, at 45 Fed. Reg. 38084; (iii) on January 8, 1985, at 50 Fed. Reg. 961; or (iv) on February 15, 1985, at 50 Fed. Reg. 6361, without regard to any limitation of any effective date proposed therein, (b) DEFINITIONS AND SPECIAL RULES.—For purposes of this section— (1) The term "real estate entity" means an entity which, at any time within two years after the closing of its offering period has invested or has contracted to invest at least 75 percent of the value of its net assets available for investment in direct or indirect ownership of "real estate assets" or "interests in real property". (2) The term "real estate asset" means real property (including an interest in real property) and any share of stock or beneficial interest, partnership interest, depository receipt, or any other interest in any other real estate entity.

�


text:
Page:United States Statutes at Large Volume 100 Part 1.djvu/315

 PUBLIC LAW 99-272—APR. 7, 1986

100 STAT. 279

(3) The term "interest in real property" includes, directly or indirectly, the following: (A) the ownership or co-ownership of land or improvements thereon; (B) any mortgage (including an interest in or co-ownership of any mortgage, leasehold mortgage, pool of mortgages, deed of trust, or similar instrument) on land or improvements thereon, (C) any leasehold of land or improvements thereon; and (D) any option to acquire any of the foregoing, but does not include any mineral, oil, or gas royalty interest. (4) Whether the economic rights of ownership with respect to a security are "freely transferable" shall be determined based upon all the facts and circumstances, but ordinarily none of the following, alone or in any combination, shall cause the economic rights of ownership to be considered not freely transferable— (A) any requirement that not less than a minimum number of shares or units of such security be transferred or assigned by any investor: Provided, That such requirement does not prevent transfer of all of the then remaining shares or units held by an investor; (B) any prohibition against transfer or assignment of such security or rights in respect thereof to an ineligible or unsuitable investor; (C) any restriction on or prohibition against any transfer or assignment which would either result in a termination or reclassification of the entity for Federal or State tax purposes or which would violate any State or Federal statute, regulation, court order, judicial decree, or rule of law; (D) any requirement that reasonable transfer or administrative fees be paid in connection with a transfer or assignment; (E) any requirement that advance notice of a transfer or assignment be given to the entity and any requirement regarding execution of documentation evidencing such transfer or assignment (including documentation setting forth representations from either or both of the transferor or transferee as to compliance with any restriction or requirement described in this section or requiring compliance with the entity's governing instruments); (F) any restriction on substitution of an assignee as a limited partner of a partnership, including a general partner consent requirement: Provided, That the economic benefits of ownership of the assignor may be transferred or assigned without regard to such restriction or consent (other than compliance with any other restriction described in this section); (G) any administrative procedure which establishes an effective date, or an event such as the completion of the offering, prior to which a transfer or assignment will not be effective; and (H) any limitation or restriction on transfer or assignment which is not created or imposed by the issuer or any person acting for or on behalf of such issuer, (c) No EFFECT ON SECRETARY'S AUTHORITY OTHER THAN AS PRO- Regulations. viDED.—Except as provided in subsection (a), nothing in this section shall limit the authority of the Secretary of Labor to issue regula-

�


text:
Page:United States Statutes at Large Volume 100 Part 1.djvu/316

 100 STAT. 280 29 USC 1002.

PUBLIC LAW 99-272—APR. 7, 1986

tions or otherwise interpret section 3(21) of the Employee Retirement Income Security Act of 1974. (d) TIME LIMIT FOR FINAL REGULATIONS.—The Secretary of Labor

shall adopt final regulations defining "plan assets' by December 31, 1986. (e) EFFECTIVE DATE.—The preceding provisions of this section shall take effect on the date of the enactment of this Act. SEC. 11019. EFFECTIVE DATE OF TITLE; TEMPORARY PROCEDURES.

29 USC 1341 J^ot^-

Ante, p. 244. Ante, p. 253.

(a) IN GENERAL.—Except a s otherwise provided i n this title, the amendments made by this title shall be effective as of January 1, 1986, except that such amendments shall not apply with respect to terminations for which— (1) notices of intent to terminate were filed with the Pension Benefit Guaranty Corporation under section 4041 of the Employee Retirement Income Security Act of 1974 before such date, or (2) proceedings were commenced under section 4042 of such Act before such date. (b) TRANSITIONAL RULES.—

(1) IN GENERAL.—In the case of a single-employer plan termination for which a notice of intent to terminate was filed with the Pension Benefit Guaranty Corporation under section 4041 of the Employee Retirement Income Security Act of 1974 (as in effect before the amendments made by this title) on or after January 1, 1986, but before the date of the enactment of this Act, the amendments made by this title shall apply with respect to such termination, as modified by paragraphs (2) and (3). (2) DEEMED COMPLIANCE WITH NOTICE REQUIREMENTS.—The

requirements of subsections (a)(2), (b)(1)(A), and (c)(1)(A) of section 4041 of the Employee Retirement Income Security Act of 1974 (as amended by this title) shall be considered to have been met with respect to a termination described in paragraph (1) if— (A) the plan administrator provided notice to the participants in the plan regarding the termination in compliance with applicable regulations of the Pension Benefit Guaranty Corporation as in effect on the date of the notice, and (B) the notice of intent to terminate provided to the Pension Benefit Guaranty Corporation in connection with the termination was filed with the Corporation not less than 10 days before the proposed date of termination specified in the notice. For purposes of section 4041 of such Act (as amended by this title), the proposed date of termination specified in the notice of intent to terminate referred to in subparagraph (B) shall be considered the proposed termination date. (3) SPECIAL TERMINATION PROCEDURES.—

(A) IN GENERAL.—This paragraph shall apply with respect to any termination described in paragraph (1) if, within 90 days after the date of enactment of this Act, the plan administrator notifies the Corporation in writing— (i) that the plan administrator wishes the termination to proceed as a standard termination under section 4041(b) of the Employee Retirement Income Security Act of 1974 (as amended by this title) in accordance with subparagraph (B),

�


text:
Page:U.S. Department of the Interior Annual Report 1880.djvu/29

 and headmen of the Pi-Utes, I discovered that among those Pi-Utes who were scattered among the white population and working for wages the desire to remove to the Malheur Agency did not exist, as had been represented to me; that, on the contrary, they wished to continue in their present condition. A great many of them are employed by white people in chopping wood or doing other jobs of work, for which they are sufficiently paid to make a living; thus they appear to be self-supporting. I met many white men among whom those Indians lived, who declared themselves well satisfied with their presence, and desired that they should stay. Information was also received from Washington Territory, through General Howard, as well as from Agent Wilbur, that the removal of the Pi-Utes—who in consequence of the Bannock war had been taken to the Yakama Reservation—from their present abode to the Malheur Agency would be attended with great danger to the Indians, as well as lead to the breaking up of those beginnings in agricultural work which they had made on the establishment of homes at Yakama. Under such circumstances it was thought best to give up the project of their removal from the Yakama Agency, and the settlement of the other Pi-Utes on the Malheur Reserve as an improper experiment. Arrangements have been begun to establish for the Pi-Utes living in that neighborhood a boarding school at the Pyramid Lake Agency, where their children can receive the benefits of education, which otherwise would not be easily obtainable by them. A special agent was sent to the Malheur Agency for the purpose of ascertaining whether that establishment could not be dispensed with, and its business is now being wound up.

THE CROWS.

With a delegation of the chiefs and headmen of the Crows in Montana, who visited Washington last winter, an agreement was made, providing for the relinquishment of a part of their reservation not used by the Indians, but valuable for its mineral resources; in compensation therefor an annuity was agreed upon to be paid to the Crow Indians. When the chiefs laid this agreement before their people in order to obtain their consent, the latter insisted upon a modification of the agreement, somewhat changing the boundaries of the ceded tract. It is thought that this change will be mutually advantageous, and the bill now before Congress giving to the agreement the force of law should be altered in that respect. While visiting the Crow Reservation, I had conferences with many of the chiefs and headmen of that tribe, who all expressed themselves satisfied with this arrangement, and also desirous of having lands allotted to them in severalty and to receive title therefor. I informed them that their wishes in that respect coincided entirely with the policy of this department, and would be promptly complied with as soon as Congress should have passed a bill submitted to it, giving the department the necessary authority to that end.


text:
Page:United States Statutes at Large Volume 100 Part 1.djvu/317

 PUBLIC LAW 99-272—APR. 7, 1986

100 STAT. 281

(ii) that the plan administrator wishes the termination to proceed as a distress termination under section 4041(c) of such Act (as amended by this title) in accordance with subparagraph (C), or (iii) that the plan administrator wishes to stop the termination proceedings in accordance with subparagraph (D).

Ante, p. 248.

(B) TERMINATIONS PROCEEDING AS STANDARD TERMINATION.— (i) TERMINATIONS FOR WHICH SUFFICIENCY NOTICES HAVE NOT B E E N ISSUED.—

(I) IN GENERAL.—In the case of a plan termination described in paragraph (1) with respect to which the Corporation has been provided the notification described in subparagraph (A)(i) and with respect to which a notice of sufficiency has not been issued by the Corporation before the date of the enactment of this Act, if, during the 90-day period commencing on the date of the notice required in subclause (II), all benefit commitments under the plan have been satisfied, the termination shall be treated as a standard termination under section 4041(b) of such Act (as amended by this title). (II) SPECIAL NOTICE REGARDING SUFFICIENCY FOR TERMINATIONS FOR WHICH NOTICES OF SUFFICIENCY HAVE NOT BEEN ISSUED AS OF DATE OF ENACTMENT.—

In the case of a plan termination described in paragraph (1) with respect to which the Corporation has been provided the notification described in subparagraph (A)(i) and with respect to which a notice of sufficiency has not been issued by the Corporation before the date of the enactment of this Act, the Corporation shall make the determinations described in section 4041(c)(3)(A)(i) and (ii) (as amended by this title) and notify the plan administrator of such determinations as provided in section 4041(c)(3)(A)(iii) (as amended by this title). (ii) TERMINATIONS FOR WHICH NOTICES OF SUFFICIENCY HAVE BEEN ISSUED.—In the case of a plan termination

described in paragraph (1) with respect to which the Corporation has been provided the notification described in subparagraph (A)(i) and with respect to which a notice of sufficiency has been issued by the Corporation before the date of the enactment of this Act, clause (i)(I) shall apply, except that the 90-day period referred to in clause (i)(I) shall begin on the date of the enactment of this Act. (C)

TERMINATIONS

PROCEEDING

AS

DISTRESS

TERMI-

NATION.—In the case of a plan termination described in paragraph (1) with respect to which the Corporation has been provided the notification described in subparagraph (A)(ii), if the requirements of section 4041(c)(2)(B) of such Act (as amended by this title) are met, the termination Ante, p. 248. shall be treated as a distress termination under section 4041(c) of such Act (as amended by this title).

�


text:
Page:United States Statutes at Large Volume 100 Part 1.djvu/318

 100 STAT. 282

PUBLIC LAW 99-272—APR. 7, 1986 (D) TERMINATION OF PROCEEDINGS BY PLAN ADMINISTRATOR.—

(i) IN GENERAL.—Except as provided in clause (ii), in the case of a plan termination described in paragraph (1) with respect to which the Corporation has been provided the notification described in subparagraph (A)(iii), the termination shall not take effect. (ii) TERMINATIONS WITH RESPECT TO WHICH FINAL DISTRIBUTION OF ASSETS HAS COMMENCED.—Clause (i) shall

not apply with respect to a termination with respect to which the final distribution of assets has commenced before the date of the enactment of this Act unless, within 90 days after the date of the enactment of this Act, the plan has been restored in accordance with procedures issued by the Corporation pursuant to subsection (c). (E) AUTHORITY OF CORPORATION TO EXTEND 90-DAY PERIODS

Ante, p. 244.

TO PERMIT STANDARD TERMINATION.—The Corporation may, on a case-by-case basis in accordance with subsection (c), provide for extensions of the applicable 90-day period referred to in clause (i) or (ii) of subparagraph (B) if it is demonstrated to the satisfaction of the Corporation that— (i) the plan could not otherwise, pursuant to the preceding provisions of this paragraph, terminate in a termination treated as a standard termination under section 4041(b) of the Employee Retirement Income Security Act of 1974 (as amended by this title), and (ii) the extension would result in a greater likelihood that benefit commitments under the plan would be paid in full, except that any such period may not be so extended beyond one year after the date of the enactment of this Act. (c) AUTHORITY TO PRESCRIBE TEMPORARY PROCEDURES.—The Pension Benefit Guaranty Corporation may prescribe temporary procedures for purposes of carrying out the amendments made by this title during the 180-day period beginning on the date described in subsection (a).

TITLE XII—INCOME SECURITY AND RELATED PROGRAMS Subtitle A—Old-Age, Survivors, and Disability Insurance Program SEC. 12101. DEMONSTRATION PROJECTS INVOLVING THE DISABILITY INSURANCE PROGRAM. (a) EXTENSION OF WAIVER AUTHORITY.—Section 505(a)(3) of

42 USC 1310 note. 42 USC 1310 note-

the

Social Security Disability Amendments of 1980 is amended by inserting "which is initiated before June 10, 1990" after "demonstration project under paragraph (1)". (b) INTERIM REPORTS.—Section 505(a)(4) of such Amendments is amended to read as follows: "(4) On or before June 9 in each of the years 1986, 1987, 1988, and 1989, the Secretary shall submit to the Congress an interim report

�


text:
Page:United States Statutes at Large Volume 100 Part 1.djvu/319

 PUBLIC LAW 99-272—APR. 7, 1986

100 STAT. 283

on the progress of the experiments and demonstration projects carried out under this subsection together with any related data and materials which the Secretary may consider appropriate.". (c) FINAL REPORT.—Section 505(c) of such Amendments is 42 USC 1310 amended by striking out "under this section no later than five years note, after the date of the enactment of this Act" and inserting in lieu thereof "under subsection (a) no later than June 9, 1990". (d) INCORPORATION OF CERTAIN REPORTS INTO SECRETARY'S ANNUAL

REPORT TO CONGRESS.—Section 1110(b) of the Social Security Act is 42 USC 1310. amended by adding at the end thereof the following new paragraph: "(3) All reports of the Secretary with respect to projects carried out under this subsection shall be incorporated into the Secretary's annual report to the Congress required by section 704.". 42 USC 904. SEC. 12102. DISABILITY ADVISORY COUNCIL.

42 USC 907.

(a) APPOINTMENT OF COUNCIL.—Within ninety days after the date of the enactment of this Act, the Secretary of Health and Human Services shall appoint a special Disability Advisory Council. (b) MEMBERSHIP OF COUNCIL.—The Disability Advisory Council shall consist of a Chairman and not more than twelve other persons, appointed by the Secretary without regard to the provisions of title 5, United States Code, governing appointments in the competitive service. The appointed members shall, to the extent possible, represent organizations of employers and employees in equal numbers, medical and vocational experts from the public or private sector (or from both such sectors), organizations representing disabled people, and the public. The Council shall meet as often as may be necessary for the performance of its duties under this section, but not less often than quarterly. (c) DUTIES OF COUNCIL.—(1) The Advisory Council shall conduct studies and make recommendations with respect to the medical and vocational aspects of disability under both title II and title XVI of the Social Security Act, including studies and recommendations 42 USC 401, relating to— l^^l(A) the effectiveness of vocational rehabilitation programs for recipients of disability insurance benefits or supplemental security income benefits; (B) the question of using specialists for completing medical and vocational evaluations at the State agency level in the disability determination process, including the question of requiring, in cases involving impairments other than mental impairments, that the medical portion of each case review (as well as any applicable assessment of residual functional capacity) be completed by an appropriate medical specialist employed by the appropriate State agency before any determination can be made with respect to the impairment involved; (C) alternative approaches to work evaluation in the case of applicants for benefits based on disability and recipients of such benefits undergoing reviews of their cases, including immediate referral of any such applicant or recipient to a vocational rehabilitation agency for services at the same time he or she is referred to the appropriate State agency for a disability determination; (D) the feasibility and appropriateness of providing work evaluation stipends for applicants for and recipients of benefits based on disability in cases where extended work evaluation is

�


text:
Page:United States Statutes at Large Volume 100 Part 1.djvu/320

 100 STAT. 284

PUBLIC LAW 99-272—APR. 7, 1986

needed prior to the final determination of their eligibility for such benefits or for further rehabilitation and related services; (E) the standards, policies, and procedures which are applied or used by the Secretary of Health and Human Services with respect to work evaluations in order to determine whether such standards, policies, and procedures will provide appropriate screening criteria for work evaluation referrals in the case of applicants for and recipients of benefits based on disability; and (F) possible criteria for assessing the probability that an applicant for or recipient of benefits based on disability will benefit from rehabilitation services, taking into consideration not only whether the individual involved will be able after rehabilitation to engage in substantial gainful activity but also whether rehabilitation services can reasonably be expected to improve the individual's functioning so that he or she will bo able to live independently or work in a sheltered environment. (2) For purposes of this subsection, "work evaluation" includes (with respect to any individual) a determination of— (A) such individual's skills, ' ' (B) the work activities or types of work activity for which such individual's skills are insufficient or inadequate, (C) the work activities or types of work activity for which such individual might potentially be trained or rehabilitated, (D) the length of time for which such individual is capable of sustaining work (including, in the case of the mentally impaired, the ability to cope with the stress of competitive work), and (E) any modifications which may be necessary, in work activities for which such individual might be trained or rehabilitated, in order to enable him or her to perform such activities. (d) PROVISION OF ASSISTANCE TO COUNCIL; COMPENSATION OF MEM-

BERS.—(1) The Disability Advisory Council is authorized to engage such technical assistance, including actuarial services, as may be required to carry out its functions, and the Secretary of Health and Human Services shall, in addition, make available to the Council such secretarial, clerical, and other assistance and such actuarial and other pertinent data prepared by the Department of Health and Human Services as the Council may require to carry out such functions. (2) Appointed members of the Council, while serving on business of the Council (inclusive of traveltime), shall receive compensation at rates fixed by the Secretary, but not exceeding $100 per day, and, while so serving 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, for persons in the Government employed intermittently. (e) REPORTS.—The Disability Advisory Council shall submit a report (including any interim reports the Council may have issued) of its findings and recommendations to the Secretary of Health and Human Services not later than December 31, 1986; and such report and recommendations shall thereupon be transmitted to the Congress and to the Board of Trustees of the Federal Disability Insurance Trust Fund. (f) TERMINATION.—After the date of the transmittal to the Congress of the report required by subsection (e), the Disability Advisory Council shall cease to exist.

�


text:
Page:United States Statutes at Large Volume 100 Part 1.djvu/321

 PUBLIC LAW 99-272—APR. 7, 1986

100 STAT. 285

(g) CONFORMING AMENDMENTS.—(1) Section 706 of the Social Security Act is amended— 42 USC 907. (A) by inserting "except as provided in subsection (e)," immediately before "the Secretary shall appoint" in subsection (a); and (B) by adding at the end thereof the following new subsection: "(e) No Advisory Council on Social Security shall be appointed under subsection (a) in 1985 (or in any subsequent year prior to 1989).". (2) Section 12 of the Social Security Disability Benefits Reform Act of 1984 is repealed. 42 USC 907 note. SEC. 12103. TAXATION OF SOCIAL SECURITY BENEFITS RECEIVED BY CERTAIN CITIZENS OF POSSESSIONS OF THE UNITED STATES. (a) GENERAL RULE.—Section 932 of the Internal Revenue Code of

1954 (relating to citizens of possessions of the United States) is amended by redesignating subsection (c) as subsection (d) and by inserting after subsection (b) the following new subsection:

26 USC 932.

"(c) TAXATION OF SOCIAL SECURITY BENEFITS.—If, for purposes of

an income tax imposed in the possession, any social security benefit (as defined in section 86(d)) received by an individual described in 26 USC 86. subsection (a) is treated in a manner equivalent to that provided by section 86, then— "(1) such benefit shall be exempt from the tax imposed by section 871, and Infra. "(2) no amount shall be deducted and withheld from such benefit under section 1441. 26 USC 1441. Any income tax imposed in a possession which treats social security benefits (as defined in section 86(d)) in a manner equivalent to section 86, and which first becomes effective within 15 months after the date of the enactment of this subsection, shall, for purposes of this section, be deemed to have been in effect as of January 1, 1984.". (b) CROSS REFERENCE.—Paragraph (3) of section 871(a) of such Code 26 USC 871. is amended by adding at the end thereof (after and below subparagraph (B)) the following new sentence: "For treatment of certain citizens of possessions of the United States, see section 932(c)."

(c) EFFECTIVE DATE.—The amendments made by this section shall apply to benefits received after December 31, 1983, in taxable years ending after such date.

26 USC 932 note,

SEC. 12104. APPLICATION OF DEPENDENCY TEST TO ADOPTED GREATGRANDCHILDREN FOR PURPOSES OF CHILD'S INSURANCE BENEFITS. (a) TREATMENT OF GRANDCHILDREN AND GREAT-GRANDCHILDREN

ALIKE.—Section 202(d)(8)(D)(ii)(III) of the Social Security Act is amended by inserting "or great-grandchild" after "grandchild" (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply with respect to benefits for which application is filed after the date of the enactment of this Act.

42 USC 402. 42 USC 402 ^°^-

�