29 U.S.C. § 1350 — Missing participants

Page 684 TITLE 29—LABOR § 1349 Editorial Notes AMENDMENTS 1986—Subsec. (a). Pub. L. 99–272 in provisions pre- ceding par. (1) substituted ‘‘termination date’’ for ‘‘date of termination’’, redesignated pars. (1) to (3) as (2) to (4), respectively, added par. (1), in par. (2), as so redesignated, inserted ‘‘in a distress termination’’ after ‘‘terminated’’ and substituted ‘‘section 1341(c)’’ for ‘‘section 1341’’, and in par. (4), as so redesignated, sub- stituted ‘‘under section 1341(c) or 1342 of this title’’ for ‘‘in accordance with the provisions of either section’’. 1980—Subsec. (a). Pub. L. 96–364, § 402(a)(8)(A), (B), designated existing provisions as subsec. (a), and in- serted applicability to a single-employer plan. Subsec. (b). Pub. L. 96–364, § 402(a)(8)(C), added subsec. (b). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1986 AMENDMENT Amendment by Pub. L. 99–272 effective Jan. 1, 1986, with certain exceptions, see section 11019 of Pub. L. 99–272, set out as a note under section 1341 of this title. EFFECTIVE DATE OF 1980 AMENDMENT Amendment by Pub. L. 96–364 effective Sept. 26, 1980, except as specifically provided, see section 1461(e) of this title. § 1349. Repealed. Pub. L. 100–203, title IX, § 9312(a), Dec. 22, 1987, 101 Stat. 1330–361 Section, Pub. L. 93–406, title IV, § 4049, as added Pub. L. 99–272, title XI, § 11012(a), Apr. 7, 1986, 100 Stat. 258; amended Pub. L. 99–514, title XVIII, § 1879(u)(2), Oct. 22, 1986, 100 Stat. 2913; Pub. L. 100–203, title IX, § 9312(d)(2), Dec. 22, 1987, 101 Stat. 1330–364, related to distribution of liability payments to participants and beneficiaries. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF REPEAL Repeal applicable with respect to plan terminations under section 1341 of this title with respect to which notices of intent to terminate are provided under sec- tion 1341(a)(2) of this title after Dec. 17, 1987, and plan terminations with respect to which proceedings are in- stituted by the Pension Benefit Guaranty Corporation under section 1342 of this title after that date, see sec- tion 9312(d)(1) of Pub. L. 100–203, as amended, set out as an Effective Date of 1987 Amendment note under sec- tion 1301 of this title. § 1350. Missing participants (a) General rule (1) Payment to the corporation A plan administrator satisfies section 1341(b)(3)(A) of this title in the case of a miss- ing participant only if the plan adminis- trator— (A) transfers the participant’s designated benefit to the corporation or purchases an irrevocable commitment from an insurer in accordance with clause (i) of section 1341(b)(3)(A) of this title, and (B) provides the corporation such informa- tion and certifications with respect to such designated benefits or irrevocable commit- ments as the corporation shall specify. (2) Treatment of transferred assets A transfer to the corporation under this sec- tion shall be treated as a transfer of assets from a terminated plan to the corporation as trustee, and shall be held with assets of termi- nated plans for which the corporation is trust- ee under section 1342 of this title, subject to the rules set forth in that section. (3) Payment by the corporation After a missing participant whose des- ignated benefit was transferred to the corpora- tion is located— (A) in any case in which the plan could have distributed the benefit of the missing participant in a single sum without partici- pant or spousal consent under section 1055(g) of this title, the corporation shall pay the participant or beneficiary a single sum ben- efit equal to the designated benefit paid the corporation plus interest as specified by the corporation, and (B) in any other case, the corporation shall pay a benefit based on the designated benefit and the assumptions prescribed by the cor- poration at the time that the corporation re- ceived the designated benefit. The corporation shall make payments under subparagraph (B) available in the same forms and at the same times as a guaranteed benefit under section 1322 of this title would be avail- able to be paid, except that the corporation may make a benefit available in the form of a single sum if the plan provided a single sum benefit (other than a single sum described in subsection (b)(2)(A)). (b) Definitions For purposes of this section— (1) Missing participant The term ‘‘missing participant’’ means a participant or beneficiary under a terminating plan whom the plan administrator cannot lo- cate after a diligent search. (2) Designated benefit The term ‘‘designated benefit’’ means the single sum benefit the participant would re- ceive— (A) under the plan’s assumptions, in the case of a distribution that can be made with- out participant or spousal consent under sec- tion 1055(g) of this title; (B) under the assumptions of the corpora- tion in effect on the date that the designated benefit is transferred to the corporation, in the case of a plan that does not pay any sin- gle sums other than those described in sub- paragraph (A); or (C) under the assumptions of the corpora- tion or of the plan, whichever provides the higher single sum, in the case of a plan that pays a single sum other than those described in subparagraph (A). (c) Multiemployer plans The corporation shall prescribe rules similar to the rules in subsection (a) for multiemployer plans covered by this subchapter that terminate under section 1341a of this title. (d) Plans not otherwise subject to subchapter (1) Transfer to corporation The plan administrator of a plan described in paragraph (4) may elect to transfer a miss- Page 685 TITLE 29—LABOR § 1361 1 So in original. The comma probably should not appear. ing participant’s benefits to the corporation upon termination of the plan. (2) Information to the corporation To the extent provided in regulations, the plan administrator of a plan described in para- graph (4) shall, upon termination of the plan, provide the corporation information with re- spect to benefits of a missing participant if the plan transfers such benefits— (A) to the corporation, or (B) to an entity other than the corporation or a plan described in paragraph (4)(B)(ii). (3) Payment by the corporation If benefits of a missing participant were transferred to the corporation under para- graph (1), the corporation shall, upon location of the participant or beneficiary, pay to the participant or beneficiary the amount trans- ferred (or the appropriate survivor benefit) ei- ther— (A) in a single sum (plus interest), or (B) in such other form as is specified in regulations of the corporation. (4) Plans described A plan is described in this paragraph if— (A) the plan is a pension plan (within the meaning of section 1002(2) of this title)— (i) to which the provisions of this section do not apply (without regard to this sub- section), (ii) which is not a plan described in para- graph (2), (3), (4), (6), (7), (8), (9), (10), or (11) of section 1321(b) of this title, and (iii) which,1 was a plan described in sec- tion 401(a) of title 26 which includes a trust exempt from tax under section 501(a) of such title, and (B) at the time the assets are to be distrib- uted upon termination, the plan— (i) has missing participants, and (ii) has not provided for the transfer of assets to pay the benefits of all missing participants to another pension plan (with- in the meaning of section 1002(2) of this title). (5) Certain provisions not to apply Subsections (a)(1) and (a)(3) shall not apply to a plan described in paragraph (4). (e) Regulatory authority The corporation shall prescribe such regula- tions as are necessary to carry out the purposes of this section, including rules relating to what will be considered a diligent search, the amount payable to the corporation, and the amount to be paid by the corporation. (Pub. L. 93–406, title IV, § 4050, as added Pub. L. 103–465, title VII, § 776(a), Dec. 8, 1994, 108 Stat. 5047; amended Pub. L. 109–280, title IV, § 410(a), Aug. 17, 2006, 120 Stat. 934; Pub. L. 110–458, title I, § 104(e), Dec. 23, 2008, 122 Stat. 5104.) Editorial Notes AMENDMENTS 2008—Subsec. (d)(4)(A)(ii), (iii). Pub. L. 110–458 added cls. (ii) and (iii) and struck out former cl. (ii) which read as follows: ‘‘which is not a plan described in para- graphs (2) through (11) of section 1321(b) of this title, and’’. 2006—Subsecs. (c) to (e). Pub. L. 109–280 added subsecs. (c) and (d) and redesignated former subsec. (c) as (e). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2008 AMENDMENT Amendment by Pub. L. 110–458 effective as if included in the provisions of Pub. L. 109–280 to which the amend- ment relates, except as otherwise provided, see section 112 of Pub. L. 110–458, set out as a note under section 72 of Title 26, Internal Revenue Code. EFFECTIVE DATE OF 2006 AMENDMENT Amendment by Pub. L. 109–280 applicable to distribu- tions made after final regulations implementing sub- sections (c) and (d) of this section are prescribed, see section 410(c) of Pub. L. 109–280, set out as a note under section 1056 of this title. EFFECTIVE DATE Section effective with respect to distributions that occur in plan years commencing on or after Jan. 1, 1996, see section 776(e) of Pub. L. 103–465, set out as an Effec- tive Date of 1994 Amendment note under section 1056 of this title. SUBTITLE D—LIABILITY § 1361. Amounts payable by corporation The corporation shall pay benefits under a sin- gle-employer plan terminated under this sub- chapter subject to the limitations and require- ments of subtitle B of this subchapter. The cor- poration shall provide financial assistance to pay benefits under a multiemployer plan which is insolvent under section 1426 or 1441(d)(2)(A) of this title, subject to the limitations and require- ments of subtitles B, C, and E of this sub- chapter. Amounts guaranteed by the corpora- tion under sections 1322 and 1322a of this title shall be paid by the corporation only out of the appropriate fund. The corporation shall make payments under the supplemental program to reimburse multiemployer plans for uncollectible withdrawal liability only out of the fund estab- lished under section 1305(e) of this title. (Pub. L. 93–406, title IV, § 4061, Sept. 2, 1974, 88 Stat. 1029; Pub. L. 96–364, title IV, § 403(f), Sept. 26, 1980, 94 Stat. 1301.) Editorial Notes AMENDMENTS 1980—Pub. L. 96–364 substituted provisions relating to payment of benefits under a single-employer plan ter- minated under this subchapter subject to limitations and requirements of subtitle B of this subchapter for provisions relating to payment of benefits under a plan terminated under this subchapter subject to limita- tions and requirements of subtitle B of this subchapter. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1980 AMENDMENT Amendment by Pub. L. 96–364 effective Sept. 26, 1980, except as specifically provided, see section 1461(e) of this title.