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29 U.S.C. § 1082 — Minimum funding standards

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29 U.S.C. § 1082 — Minimum funding standards

§ 1082. Minimum funding standards (a) Requirement to meet minimum funding standard (1) In general A plan to which this part applies shall sat- isfy the minimum funding standard applicable to the plan for any plan year. (2) Minimum funding standard For purposes of paragraph (1), a plan shall be treated as satisfying the minimum funding standard for a plan year if— (A) in the case of a defined benefit plan which is a single-employer plan (other than a CSEC plan), the employer makes contribu- tions to or under the plan for the plan year which, in the aggregate, are not less than the minimum required contribution deter- mined under section 1083 of this title for the plan for the plan year, (B) in the case of a money purchase plan which is a single-employer plan, the em- ployer makes contributions to or under the plan for the plan year which are required under the terms of the plan, (C) in the case of a multiemployer plan, the employers make contributions to or under the plan for any plan year which, in the aggregate, are sufficient to ensure that the plan does not have an accumulated fund- ing deficiency under section 1084 of this title as of the end of the plan year, and (D) in the case of a CSEC plan, the employ- ers make contributions to or under the plan for any plan year which, in the aggregate, are sufficient to ensure that the plan does not have an accumulated funding deficiency under section 1085a of this title as of the end of the plan year. (b) Liability for contributions (1) In general Except as provided in paragraph (2), the amount of any contribution required by this section (including any required installments under paragraphs (3) and (4) of section 1083(j) of this title or under section 1085a(f) of this title) shall be p

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Page 449 TITLE 29—LABOR § 1082 tension under section 304 of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1084] and section 412(e) of the Internal Revenue Code of 1986 [former 26 U.S.C. 412(e)] with respect to any application filed with the Secretary of the Treasury on or before June 30, 2005, the extension (and any modification thereof) shall be applied and administered under the rules of such sec- tions as in effect before the enactment of this Act [Aug. 17, 2006], including the use of the rate of interest deter- mined under section 6621(b) of such Code [26 U.S.C. 6621(b)].’’ EFFECTIVE DATE OF 1989 AMENDMENT Amendment by section 7891(a)(1) of Pub. L. 101–239 ef- fective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 7891(f) of Pub. L. 101–239, set out as a note under section 1002 of this title. Section 7894(d)(1)(B) of Pub. L. 101–239 provided that: ‘‘The amendments made by subparagraph (A) [amend- ing this section] shall take effect as if included in sec- tion 411 of the Multiemployer Pension Plan Amend- ments Act of 1980 [Pub. L. 96–364].’’ Section 7894(d)(4)(B) of Pub. L. 101–239 provided that: ‘‘The amendment made by subparagraph (A) [amending this section] shall take effect as if originally included in section 491(b) of Public Law 98–369.’’ 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. REGULATIONS Secretary authorized, effective Sept. 2, 1974, to pro- mulgate regulations wherever provisions of this sub- chapter call for the promulgation of regulations, see section 1031 of this title. SPECIAL RULE FOR CERTAIN BENEFITS FUNDED UNDER AN AGREEMENT APPROVED BY THE PENSION BENEFIT GUARANTY CORPORATION For applicability of amendment by Pub. L. 109–280 to a multiemployer plan that is a party to an agreement that was approved by the Pension Benefit Guaranty Corporation prior to June 30, 2005, and that increases benefits and provides for certain withdrawal liability rules, see section 206 of Pub. L. 109–280, set out as a note under section 412 of Title 26, Internal Revenue Code. § 1082. Minimum funding standards (a) Requirement to meet minimum funding standard (1) In general A plan to which this part applies shall sat- isfy the minimum funding standard applicable to the plan for any plan year. (2) Minimum funding standard For purposes of paragraph (1), a plan shall be treated as satisfying the minimum funding standard for a plan year if— (A) in the case of a defined benefit plan which is a single-employer plan (other than a CSEC plan), the employer makes contribu- tions to or under the plan for the plan year which, in the aggregate, are not less than the minimum required contribution deter- mined under section 1083 of this title for the plan for the plan year, (B) in the case of a money purchase plan which is a single-employer plan, the em- ployer makes contributions to or under the plan for the plan year which are required under the terms of the plan, (C) in the case of a multiemployer plan, the employers make contributions to or under the plan for any plan year which, in the aggregate, are sufficient to ensure that the plan does not have an accumulated fund- ing deficiency under section 1084 of this title as of the end of the plan year, and (D) in the case of a CSEC plan, the employ- ers make contributions to or under the plan for any plan year which, in the aggregate, are sufficient to ensure that the plan does not have an accumulated funding deficiency under section 1085a of this title as of the end of the plan year. (b) Liability for contributions (1) In general Except as provided in paragraph (2), the amount of any contribution required by this section (including any required installments under paragraphs (3) and (4) of section 1083(j) of this title or under section 1085a(f) of this title) shall be paid by the employer respon- sible for making contributions to or under the plan. (2) Joint and several liability where employer member of controlled group If the employer referred to in paragraph (1) is a member of a controlled group, each mem- ber of such group shall be jointly and severally liable for payment of such contributions. (3) Multiemployer plans in critical status Paragraph (1) shall not apply in the case of a multiemployer plan for any plan year in which the plan is in critical status pursuant to section 1085 of this title. This paragraph shall only apply if the plan sponsor adopts a reha- bilitation plan in accordance with section 1085(e) of this title and complies with the terms of such rehabilitation plan (and any up- dates or modifications of the plan). (c) Variance from minimum funding standards (1) Waiver in case of business hardship (A) In general If— (i) an employer is (or in the case of a multiemployer plan or a CSEC plan, 10 percent or more of the number of employ- ers contributing to or under the plan are) unable to satisfy the minimum funding standard for a plan year without tem- porary substantial business hardship (sub- stantial business hardship in the case of a multiemployer plan), and (ii) application of the standard would be adverse to the interests of plan partici- pants in the aggregate, the Secretary of the Treasury may, subject to subparagraph (C), waive the requirements of subsection (a) for such year with respect to all or any portion of the minimum fund- ing standard. The Secretary of the Treasury shall not waive the minimum funding stand- ard with respect to a plan for more than 3 of any 15 (5 of any 15 in the case of a multiem- ployer plan) consecutive plan years. Page 450 TITLE 29—LABOR § 1082 1 So in original. Probably should be preceded by ‘‘section’’. (B) Effects of waiver If a waiver is granted under subparagraph (A) for any plan year— (i) in the case of a single-employer plan (other than a CSEC plan), the minimum required contribution under section 1083 of this title for the plan year shall be reduced by the amount of the waived funding defi- ciency and such amount shall be amortized as required under section 1083(e) of this title, (ii) in the case of a multiemployer plan, the funding standard account shall be credited under section 1084(b)(3)(C) of this title with the amount of the waived fund- ing deficiency and such amount shall be amortized as required under section 1084(b)(2)(C) of this title, and (iii) in the case of a CSEC plan, the fund- ing standard account shall be credited under section 1085a(b)(3)(C) of this title with the amount of the waived funding de- ficiency and such amount shall be amor- tized as required under section 1085a(b)(2)(C) of this title. (C) Waiver of amortized portion not allowed The Secretary of the Treasury may not waive under subparagraph (A) any portion of the minimum funding standard under sub- section (a) for a plan year which is attrib- utable to any waived funding deficiency for any preceding plan year. (2) Determination of business hardship For purposes of this subsection, the factors taken into account in determining temporary substantial business hardship (substantial business hardship in the case of a multiem- ployer plan) shall include (but shall not be limited to) whether or not— (A) the employer is operating at an eco- nomic loss, (B) there is substantial unemployment or underemployment in the trade or business and in the industry concerned, (C) the sales and profits of the industry concerned are depressed or declining, and (D) it is reasonable to expect that the plan will be continued only if the waiver is grant- ed. (3) Waived funding deficiency For purposes of this part, the term ‘‘waived funding deficiency’’ means the portion of the minimum funding standard under subsection (a) (determined without regard to the waiver) for a plan year waived by the Secretary of the Treasury and not satisfied by employer con- tributions. (4) Security for waivers for single-employer plans, consultations (A) Security may be required (i) In general Except as provided in subparagraph (C), the Secretary of the Treasury may require an employer maintaining a defined benefit plan which is a single-employer plan (with- in the meaning of section 1301(a)(15) of this title) to provide security to such plan as a condition for granting or modifying a waiver under paragraph (1) or for granting an extension under section 1085a(d) of this title. (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 1301(a)(13) of this title), or a member of such sponsor’s controlled group (within the meaning of section 1301(a)(14) of this title). (B) Consultation with the Pension Benefit Guaranty Corporation Except as provided in subparagraph (C), the Secretary of the Treasury shall, before granting or modifying a waiver under this subsection or an extension under 1085a(d) 1 of this title 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, modification, or exten- sion, and (II) an opportunity to comment on such application within 30 days after re- ceipt of such notice, and (ii) consider— (I) any comments of the Corporation under clause (i)(II), and (II) any views of any employee organi- zation (within the meaning of section 1002(4) of this title) representing partici- pants 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 subparagraph shall be considered tax return information and subject to the safeguarding and reporting requirements of section 6103(p) of title 26. (C) Exception for certain waivers or exten- sions (i) In general The preceding provisions of this para- graph shall not apply to any plan with re- spect to which the sum of— (I) the aggregate unpaid minimum re- quired contributions for the plan year and all preceding plan years, or the accu- mulated funding deficiency under sec- tion 1085a of this title, whichever is ap- plicable, (II) the present value of all waiver am- ortization installments determined for the plan year and succeeding plan years under section 1083(e)(2) or 1085a(b)(2)(C) of this title, whichever is applicable, and (III) the total amounts not paid by rea- son of an extension in effect under sec- tion 1085a(d) of this title, is less than $1,000,000. Page 451 TITLE 29—LABOR § 1082 (ii) Treatment of waivers or extensions for which applications are pending The amount described in clause (i)(I) shall include any increase in such amount which would result if all applications for waivers or extensions with respect to the minimum funding standard under this sub- section which are pending with respect to such plan were denied. (iii) Unpaid minimum required contribu- tion For purposes of this subparagraph— (I) In general The term ‘‘unpaid minimum required contribution’’ means, with respect to any plan year, any minimum required contribution under section 1083 of this title for the plan year which is not paid on or before the due date (as determined under section 1083(j)(1) of this title) for the plan year. (II) Ordering rule For purposes of subclause (I), any pay- ment to or under a plan for any plan year shall be allocated first to unpaid minimum required contributions for all preceding plan years on a first-in, first- out basis and then to the minimum re- quired contribution under section 1083 of this title for the plan year. (5) Special rules for single-employer plans (A) Application must be submitted before date 21⁄2 months after close of year In the case of a single-employer plan, no waiver may be granted under this subsection with respect to any plan for any plan year unless an application therefor is submitted to the Secretary of the Treasury not later than the 15th day of the 3rd month begin- ning after the close of such plan year. (B) Special rule if employer is member of controlled group In the case of a single-employer plan, if an employer is a member of a controlled group, the temporary substantial business hardship requirements of paragraph (1) shall be treat- ed as met only if such requirements are met— (i) with respect to such employer, and (ii) with respect to the controlled group of which such employer is a member (de- termined by treating all members of such group as a single employer). The Secretary of the Treasury may provide that an analysis of a trade or business or in- dustry of a member need not be conducted if such Secretary determines such analysis is not necessary because the taking into ac- count of such member would not signifi- cantly affect the determination under this paragraph. (6) Advance notice (A) In general The Secretary of the Treasury shall, be- fore granting a waiver under this subsection, require each applicant to provide evidence satisfactory to such Secretary that the ap- plicant has provided notice of the filing of the application for such waiver to each af- fected party (as defined in section 1301(a)(21) of this title). Such notice shall include a de- scription of the extent to which the plan is funded for benefits which are guaranteed under subchapter III and for benefit liabil- ities. (B) Consideration of relevant information The Secretary of the Treasury shall con- sider any relevant information provided by a person to whom notice was given under sub- paragraph (A). (7) Restriction on plan amendments (A) In general No amendment of a plan which increases the liabilities of the plan by reason of any increase in benefits, any change in the ac- crual of benefits, or any change in the rate at which benefits become nonforfeitable under the plan shall be adopted if a waiver under this subsection or an extension of time under section 1084(d) of this title or section 1085a(d) of this title is in effect with respect to the plan, or if a plan amendment described in subsection (d)(2) which reduces the accrued benefit of any participant has been made at any time in the preceding 12 months (24 months in the case of a multiem- ployer plan). If a plan is amended in viola- tion of the preceding sentence, any such waiver, or extension of time, shall not apply to any plan year ending on or after the date on which such amendment is adopted. (B) Exception Subparagraph (A) shall not apply to any plan amendment which— (i) the Secretary of the Treasury deter- mines to be reasonable and which provides for only de minimis increases in the liabil- ities of the plan, (ii) only repeals an amendment described in subsection (d)(2), or (iii) is required as a condition of quali- fication under part I of subchapter D of chapter 1 of title 26. (8) Cross reference For corresponding duties of the Secretary of the Treasury with regard to implementation of title 26, see section 412(c) of title 26. (d) Miscellaneous rules (1) Change in method or year If the funding method or a plan year for a plan is changed, the change shall take effect only if approved by the Secretary of the Treas- ury. (2) Certain retroactive plan amendments For purposes of this section, any amendment applying to a plan year which— (A) is adopted after the close of such plan year but no later than 21⁄2 months after the close of the plan year (or, in the case of a multiemployer plan, no later than 2 years after the close of such plan year), (B) does not reduce the accrued benefit of any participant determined as of the begin- Page 452 TITLE 29—LABOR § 1082 ning of the first plan year to which the amendment applies, and (C) does not reduce the accrued benefit of any participant determined as of the time of adoption except to the extent required by the circumstances, shall, at the election of the plan adminis- trator, be deemed to have been made on the first day of such plan year. No amendment de- scribed in this paragraph which reduces the accrued benefits of any participant shall take effect unless the plan administrator files a no- tice with the Secretary of the Treasury noti- fying him of such amendment and such Sec- retary has approved such amendment, or with- in 90 days after the date on which such notice was filed, failed to disapprove such amend- ment. No amendment described in this sub- section shall be approved by the Secretary of the Treasury unless such Secretary deter- mines that such amendment is necessary be- cause of a temporary substantial business hardship (as determined under subsection (c)(2)) or a substantial business hardship (as so determined) in the case of a multiemployer plan and that a waiver under subsection (c) (or, in the case of a multiemployer plan or a CSEC plan, any extension of the amortization period under section 1084(d) of this title or sec- tion 1085a(d) of this title) is unavailable or in- adequate. (3) Controlled group For purposes of this section, the term ‘‘con- trolled group’’ means any group treated as a single employer under subsection (b), (c), (m), or (o) of section 414 of title 26. (Pub. L. 93–406, title I, § 302, as added and amend- ed Pub. L. 109–280, title I, § 101(b), title II, § 202(d), Aug. 17, 2006, 120 Stat. 784, 885; Pub. L. 110–458, title I, §§ 101(a)(1), 102(b)(1)(A), Dec. 23, 2008, 122 Stat. 5093, 5100; Pub. L. 113–97, title I, § 102(b)(1), (2), Apr. 7, 2014, 128 Stat. 1115.) PRIOR PROVISIONS A prior section 1082, Pub. L. 93–406, title I, § 302, Sept. 2, 1974, 88 Stat. 869; Pub. L. 96–364, title III, § 304(b), Sept. 26, 1980, 94 Stat. 1293; Pub. L. 100–203, title IX, §§ 9301(b), 9303(b), (d)(2), 9304(a)(2), (b)(2), (e)(2), 9305(b)(2), 9307(a)(2), (b)(2), (e)(2), Dec. 22, 1987, 101 Stat. 1330–332, 1330–337, 1330–342, 1330–344, 1330–346, 1330–349, 1330–352, 1330–356 to 1330–358; Pub. L. 100–647, title II, § 2005(a)(2)(B), (d)(2), Nov. 10, 1988, 102 Stat. 3610, 3612; Pub. L. 101–239, title VII, §§ 7881(a)(1)(B), (2)(B), (3)(B), (4)(B), (5)(B), (6)(B), (b)(1)(B), (2)(B), (3)(B), (4)(B), (6)(B)(i), (d)(1)(B), (2), (4), 7891(a)(1), 7892(b), 7894(d)(2), (5), Dec. 19, 1989, 103 Stat. 2435–2439, 2445, 2447, 2449, 2450; Pub. L. 101–508, title XII, § 12012(c), Nov. 5, 1990, 104 Stat. 1388–572; Pub. L. 103–465, title VII, §§ 761(a)(1)–(9)(A), (10), 762(a), 763(a), 764(a), 768(b), Dec. 8, 1994, 108 Stat. 5024–5031, 5033–5036, 5041; Pub. L. 105–34, title XV, § 1521(b), (c)(2), (3)(B), title XVI, § 1604(b)(2)(B), Aug. 5, 1997, 111 Stat. 1069, 1070, 1097; Pub. L. 107–16, title VI, §§ 651(b), 661(b), June 7, 2001, 115 Stat. 129, 142; Pub. L. 107–147, title IV, §§ 405(b), 411(v)(2), Mar. 9, 2002, 116 Stat. 42, 52; Pub. L. 108–218, title I, §§ 101(a)(1)–(3), 102(a), 104(a)(1), Apr. 10, 2004, 118 Stat. 596, 597, 599, 604; Pub. L. 109–135, title IV, § 412(x)(2), Dec. 21, 2005, 119 Stat. 2638; Pub. L. 109–280, title III, § 301(a)(1), (2), Aug. 17, 2006, 120 Stat. 919, related to minimum funding standards, prior to repeal by Pub. L. 109–280, title I, § 101(a), (d), Aug. 17, 2006, 120 Stat. 784, 789, applicable to plan years begin- ning after 2007. Editorial Notes AMENDMENTS 2014—Subsec. (a)(2)(A). Pub. L. 113–97, § 102(b)(2)(M), substituted ‘‘single-employer plan (other than a CSEC plan)’’ for ‘‘single-employer plan’’. Subsec. (a)(2)(D). Pub. L. 113–97, § 102(b)(1), added sub- par. (D). Subsec. (b)(1). Pub. L. 113–97, § 102(b)(2)(B), substituted ‘‘section 1083(j) of this title or under section 1085a(f) of this title’’ for ‘‘section 1083(j) of this title’’. Subsec. (c)(1)(A)(i). Pub. L. 113–97, § 102(b)(2)(A), sub- stituted ‘‘multiemployer plan or a CSEC plan, 10 per- cent’’ for ‘‘multiemployer plan, 10 percent’’. Subsec. (c)(1)(B)(i). Pub. L. 113–97, § 102(b)(2)(M), sub- stituted ‘‘single-employer plan (other than a CSEC plan)’’ for ‘‘single-employer plan’’. Subsec. (c)(1)(B)(iii). Pub. L. 113–97, § 102(b)(2)(C), added cl. (iii). Subsec. (c)(4)(A)(i). Pub. L. 113–97, § 102(b)(2)(D), sub- stituted ‘‘under paragraph (1) or for granting an exten- sion under section 1085a(d) of this title’’ for ‘‘under paragraph (1)’’. Subsec. (c)(4)(B). Pub. L. 113–97, § 102(b)(2)(E), sub- stituted ‘‘waiver under this subsection or an extension under 1085a(d) of this title’’ for ‘‘waiver under this sub- section’’ in introductory provisions. Subsec. (c)(4)(B)(i)(I). Pub. L. 113–97, § 102(b)(2)(F), substituted ‘‘waiver, modification, or extension’’ for ‘‘waiver or modification’’. Subsec. (c)(4)(C). Pub. L. 113–97, § 102(b)(2)(G), sub- stituted ‘‘waivers or extensions’’ for ‘‘waivers’’ in head- ing. Subsec. (c)(4)(C)(i)(I). Pub. L. 113–97, § 102(b)(2)(I), sub- stituted ‘‘or the accumulated funding deficiency under section 1085a of this title, whichever is applicable,’’ for ‘‘and’’ at end. Subsec. (c)(4)(C)(i)(II). Pub. L. 113–97, § 102(b)(2)(J), substituted ‘‘section 1083(e)(2) or 1085a(b)(2)(C) of this title, whichever is applicable, and’’ for ‘‘section 1083(e)(2) of this title,’’. Subsec. (c)(4)(C)(i)(III). Pub. L. 113–97, § 102(b)(2)(K), added subcl. (III). Subsec. (c)(4)(C)(ii). Pub. L. 113–97, § 102(b)(2)(L), sub- stituted ‘‘for waivers or extensions with respect to’’ for ‘‘for waivers of’’. Pub. L. 113–97, § 102(b)(2)(G), substituted ‘‘waivers or extensions’’ for ‘‘waivers’’ in heading. Subsec. (c)(7)(A). Pub. L. 113–97, § 102(b)(2)(H), sub- stituted ‘‘section 1084(d) of this title or section 1085a(d) of this title’’ for ‘‘section 1084(d) of this title’’. Subsec. (d)(2). Pub. L. 113–97, § 102(b)(2)(H), sub- stituted ‘‘section 1084(d) of this title or section 1085a(d) of this title’’ for ‘‘section 1084(d) of this title’’ in con- cluding provisions. Pub. L. 113–97, § 102(b)(2)(A), substituted ‘‘multiem- ployer plan or a CSEC plan’’ for ‘‘multiemployer plan’’ in concluding provisions. 2008—Subsec. (b)(3). Pub. L. 110–458, § 102(b)(1)(A), sub- stituted ‘‘the plan sponsor adopts’’ for ‘‘the plan adopts’’. Subsec. (c)(1)(A)(i). Pub. L. 110–458, § 101(a)(1)(A), sub- stituted ‘‘the plan are’’ for ‘‘the plan is’’. Subsec. (c)(7)(A). Pub. L. 110–458, § 101(a)(1)(B), in- serted ‘‘which reduces the accrued benefit of any par- ticipant’’ after ‘‘subsection (d)(2)’’. Subsec. (d)(1). Pub. L. 110–458, § 101(a)(1)(C), struck out ‘‘, the valuation date,’’ after ‘‘funding method’’. 2006—Subsec. (b)(3). Pub. L. 109–280, § 202(d), added par. (3). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2014 AMENDMENT Amendment by Pub. L. 113–97 applicable to years be- ginning after Dec. 31, 2013, see section 3 of Pub. L. 113–97, set out as a note under section 401 of Title 26, In- ternal Revenue Code. 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- Page 453 TITLE 29—LABOR § 1083 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 Pub. L. 109–280, title II, § 202(f), Aug. 17, 2006, 120 Stat. 885, provided that: ‘‘(1) IN GENERAL.—The amendments made by this sec- tion [enacting section 1085 of this title and amending this section and section 1132 of this title] shall apply with respect to plan years beginning after 2007. ‘‘(2) SPECIAL RULE FOR CERTAIN NOTICES.—In any case in which a plan’s actuary certifies that it is reasonably expected that a multiemployer plan will be in critical status under section 305(b)(3) of the Employee Retire- ment Income Security Act of 1974 [29 U.S.C. 1085(b)(3)], as added by this section, with respect to the first plan year beginning after 2007, the notice required under subparagraph (D) of such section may be provided at any time after the date of enactment [Aug. 17, 2006], so long as it is provided on or before the last date for pro- viding the notice under such subparagraph. ‘‘(3) SPECIAL RULE FOR CERTAIN RESTORED BENEFITS.— In the case of a multiemployer plan— ‘‘(A) with respect to which benefits were reduced pursuant to a plan amendment adopted on or after January 1, 2002, and before June 30, 2005, and ‘‘(B) which, pursuant to the plan document, the trust agreement, or a formal written communication from the plan sponsor to participants provided before June 30, 2005, provided for the restoration of such ben- efits, the amendments made by this section shall not apply to such benefit restorations to the extent that any re- striction on the providing or accrual of such benefits would otherwise apply by reason of such amendments.’’ EFFECTIVE DATE Pub. L. 109–280, title I, § 101(d), Aug. 17, 2006, 120 Stat. 789, provided that: ‘‘The amendments made by this sec- tion [enacting this section and repealing former section 1082 of this title and sections 1083 to 1085, 1085a, 1085b, and 1086 of this title] shall apply to plan years begin- ning after 2007.’’ REGULATIONS Secretary authorized, effective Sept. 2, 1974, to pro- mulgate regulations wherever provisions of this sub- chapter call for the promulgation of regulations, see section 1031 of this title. APPLICABILITY OF AMENDMENTS BY SUBTITLES A AND B OF TITLE I OF PUB. L. 109–280 For special rules on applicability of amendments by subtitles A (§§ 101–108) and B (§§ 111–116) of title I of Pub. L. 109–280 to certain eligible cooperative plans, PBGC settlement plans, and eligible government contractor plans, see sections 104, 105, and 106 of Pub. L. 109–280, set out as notes under section 401 of Title 26, Internal Revenue Code. SPECIAL RULE FOR CERTAIN BENEFITS FUNDED UNDER AN AGREEMENT APPROVED BY THE PENSION BENEFIT GUARANTY CORPORATION For applicability of amendment by section 202(d) of Pub. L. 109–280 to a multiemployer plan that is a party to an agreement that was approved by the Pension Ben- efit Guaranty Corporation prior to June 30, 2005, and that increases benefits and provides for certain with- drawal liability rules, see section 206 of Pub. L. 109–280, set out as a note under section 412 of Title 26, Internal Revenue Code. § 1083. Minimum funding standards for single- employer defined benefit pension plans (a) Minimum required contribution For purposes of this section and section 1082(a)(2)(A) of this title, except as provided in subsection (f), the term ‘‘minimum required con- tribution’’ means, with respect to any plan year of a single-employer plan— (1) in any case in which the value of plan as- sets of the plan (as reduced under subsection (f)(4)(B)) is less than the funding target of the plan for the plan year, the sum of— (A) the target normal cost of the plan for the plan year, (B) the shortfall amortization charge (if any) for the plan for the plan year deter- mined under subsection (c), and (C) the waiver amortization charge (if any) for the plan for the plan year as determined under subsection (e); or (2) in any case in which the value of plan as- sets of the plan (as reduced under subsection (f)(4)(B)) equals or exceeds the funding target of the plan for the plan year, the target nor- mal cost of the plan for the plan year reduced (but not below zero) by such excess. (b) Target normal cost For purposes of this section: (1) In general Except as provided in subsection (i)(2) with respect to plans in at-risk status, the term ‘‘target normal cost’’ means, for any plan year, the excess of— (A) the sum of— (i) the present value of all benefits which are expected to accrue or to be earned under the plan during the plan year, plus (ii) the amount of plan-related expenses expected to be paid from plan assets dur- ing the plan year, over (B) the amount of mandatory employee contributions expected to be made during the plan year. (2) Special rule for increase in compensation For purposes of this subsection, if any ben- efit attributable to services performed in a preceding plan year is increased by reason of any increase in compensation during the cur- rent plan year, the increase in such benefit shall be treated as having accrued during the current plan year. (c) Shortfall amortization charge (1) In general For purposes of this section, the shortfall amortization charge for a plan for any plan year is the aggregate total (not less than zero) of the shortfall amortization installments for such plan year with respect to any shortfall amortization base which has not been fully amortized under this subsection. (2) Shortfall amortization installment For purposes of paragraph (1)— (A) Determination The shortfall amortization installments are the amounts necessary to amortize the shortfall amortization base of the plan for any plan year in level annual installments over the 7-plan-year period beginning with such plan year. (B) Shortfall installment The shortfall amortization installment for any plan year in the 7-plan-year period

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Federal law — U.S. Code and appendices · legal_authorities

26 U.S.C. § 412 — Minimum funding standards

**(a) Requirement to meet minimum funding standard** (1) **In general** — A plan to which this section applies shall satisfy the minimum funding standard applicable to the plan for any plan year. (2) **Minimum funding standard** — For purposes of paragraph (1), a plan shall be treated as satisfying the minimum funding standard for a plan year if— (A) in the case of a defined benefit plan which is not a multiemployer plan or a CSEC plan, the employer makes contributions to or under the plan for the plan year which, in the aggregate, are not less than the minimum required contribution determined under section 430 for the plan for the plan year, (B) in the case of a money purchase plan which is not a multiemployer plan, the employer makes contributions to or under the plan for the plan year which are required under the terms of the plan, (C) in the case of a multiemployer plan, the employers make contributions to or under the plan for any plan year which, in the aggregate, are sufficient to ensure that the plan does not have an accumulated funding deficiency under section 431 as of the end of the plan year, and (D) in the case of a CSEC plan, the employers make contributions to or under the plan for any plan year which, in the aggregate, are sufficient to ensure that the plan does not have an accumulated funding deficiency under section 433 as of the end of the plan year. **(b) Liability for contributions** (1) **In general** — Except as provided in paragraph (2), the amount of any contribution required by this section (including any required installments under paragraphs (3) and (4) of section 430(j) or under section 433(f)) shall be paid by the employer responsible for making contributions to or under the plan. (2) **Joint and several liability where emp

Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 412

Stored review status: release_metadata_unconfirmed. The source passage cites 26 U.S.C. § 412. This identifies an authority to review, not proof of applicability.

Federal law — U.S. Code and appendices · legal_authorities

26 U.S.C. § 412 — Minimum funding standards

§ 412. Minimum funding standards (a) Requirement to meet minimum funding standard (1) In general A plan to which this section applies shall satisfy the minimum funding standard appli- cable to the plan for any plan year. (2) Minimum funding standard For purposes of paragraph (1), a plan shall be treated as satisfying the minimum funding standard for a plan year if— (A) in the case of a defined benefit plan which is not a multiemployer plan or a CSEC plan, the employer makes contribu- tions to or under the plan for the plan year which, in the aggregate, are not less than the minimum required contribution deter- mined under section 430 for the plan for the plan year, (B) in the case of a money purchase plan which is not a multiemployer plan, the em- ployer makes contributions to or under the plan for the plan year which are required under the terms of the plan, (C) in the case of a multiemployer plan, the employers make contributions to or under the plan for any plan year which, in the aggregate, are sufficient to ensure that the plan does not have an accumulated fund- ing deficiency under section 431 as of the end of the plan year, and (D) in the case of a CSEC plan, the employ- ers make contributions to or under the plan for any plan year which, in the aggregate, are sufficient to ensure that the plan does not have an accumulated funding deficiency under section 433 as of the end of the plan year. (b) Liability for contributions (1) In general Except as provided in paragraph (2), the amount of any contribution required by this section (including any required installments under paragraphs (3) and (4) of section 430(j) or under section 433(f)) shall be paid by the em- ployer responsible for making contributions to or under the plan.

Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 412

Stored review status: historical_2024_not_currentness_verified. The source passage cites 26 U.S.C. § 412. This identifies an authority to review, not proof of applicability.

Federal law — U.S. Code and appendices · legal_authorities

26 U.S.C. § 6621 — Determination of rate of interest

**(a) General rule** (1) **Overpayment rate** — The overpayment rate established under this section shall be the sum of— (A) the Federal short-term rate determined under subsection (b), plus (B) 3 percentage points (2 percentage points in the case of a corporation). To the extent that an overpayment of tax by a corporation for any taxable period (as defined in subsection (c)(3), applied by substituting “overpayment” for “underpayment”) exceeds $10,000, subparagraph (B) shall be applied by substituting “0.5 percentage point” for “2 percentage points”. (2) **Underpayment rate** — The underpayment rate established under this section shall be the sum of— (A) the Federal short-term rate determined under subsection (b), plus (B) 3 percentage points. **(b) Federal short-term rate** For purposes of this section— (1) **General rule** — The Secretary shall determine the Federal short-term rate for the first month in each calendar quarter. (2) **Period during which rate applies** (A) *In general* — Except as provided in subparagraph (B), the Federal short-term rate determined under paragraph (1) for any month shall apply during the first calendar quarter beginning after such month. (B) *Special rule for individual estimated tax* — In determining the addition to tax under section 6654 for failure to pay estimated tax for any taxable year, the Federal short-term rate which applies during the 3rd month following such taxable year shall also apply during the first 15 days of the 4th month following such taxable year. (3) **Federal short-term rate** — The Federal short-term rate for any month shall be the Federal short-term rate determined during such month by the Secretary in accordance with section 1274(d). Any such rate shall be rounded to the nearest full

Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 6621

Stored review status: release_metadata_unconfirmed. The source passage cites 26 U.S.C. § 6621. This identifies an authority to review, not proof of applicability.

Federal law — U.S. Code and appendices · legal_authorities

26 U.S.C. § 6621 — Determination of rate of interest

§ 6621. Determination of rate of interest (a) General rule (1) Overpayment rate The overpayment rate established under this section shall be the sum of— (A) the Federal short-term rate deter- mined under subsection (b), plus (B) 3 percentage points (2 percentage points in the case of a corporation). To the extent that an overpayment of tax by a corporation for any taxable period (as de- fined in subsection (c)(3), applied by sub- stituting ‘‘overpayment’’ for ‘‘underpayment’’) exceeds $10,000, subparagraph (B) shall be ap- plied by substituting ‘‘0.5 percentage point’’ for ‘‘2 percentage points’’. (2) Underpayment rate The underpayment rate established under this section shall be the sum of— (A) the Federal short-term rate deter- mined under subsection (b), plus (B) 3 percentage points. (b) Federal short-term rate For purposes of this section— (1) General rule The Secretary shall determine the Federal short-term rate for the first month in each calendar quarter. (2) Period during which rate applies (A) In general Except as provided in subparagraph (B), the Federal short-term rate determined under paragraph (1) for any month shall apply during the first calendar quarter be- ginning after such month. (B) Special rule for individual estimated tax In determining the addition to tax under section 6654 for failure to pay estimated tax for any taxable year, the Federal short-term rate which applies during the 3rd month fol- lowing such taxable year shall also apply during the first 15 days of the 4th month fol- lowing such taxable year. (3) Federal short-term rate The Federal short-term rate for any month shall be the Federal short-term rate deter- mined during such month by the Secretary in accordance with section 1274(d). Any such rate sha

Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 6621

Stored review status: historical_2024_not_currentness_verified. The source passage cites 26 U.S.C. § 6621. This identifies an authority to review, not proof of applicability.

Federal law — U.S. Code and appendices · legal_authorities

29 U.S.C. § 1082 — Minimum funding standards

**(a) Requirement to meet minimum funding standard** (1) **In general** — A plan to which this part applies shall satisfy the minimum funding standard applicable to the plan for any plan year. (2) **Minimum funding standard** — For purposes of paragraph (1), a plan shall be treated as satisfying the minimum funding standard for a plan year if— (A) in the case of a defined benefit plan which is a single-employer plan (other than a CSEC plan), the employer makes contributions to or under the plan for the plan year which, in the aggregate, are not less than the minimum required contribution determined under [section 1083 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1083&num=0&edition=prelim) for the plan for the plan year, (B) in the case of a money purchase plan which is a single-employer plan, the employer makes contributions to or under the plan for the plan year which are required under the terms of the plan, (C) in the case of a multiemployer plan, the employers make contributions to or under the plan for any plan year which, in the aggregate, are sufficient to ensure that the plan does not have an accumulated funding deficiency under [section 1084 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1084&num=0&edition=prelim) as of the end of the plan year, and (D) in the case of a CSEC plan, the employers make contributions to or under the plan for any plan year which, in the aggregate, are sufficient to ensure that the plan does not have an accumulated funding deficiency under [section 1085a of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1085a&num=0&edition=prelim) as of the end of the plan year. **(b) Liability for contribu

Source: Supplied U.S. Code snapshot — release unconfirmed · 29 U.S.C. § 1082

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Federal law — U.S. Code and appendices · legal_authorities

29 U.S.C. § 1084 — Minimum funding standards for multiemployer plans

**(a) In general** For purposes of [section 1082 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1082&num=0&edition=prelim), the accumulated funding deficiency of a multiemployer plan for any plan year is the amount, determined as of the end of the plan year, equal to the excess (if any) of the total charges to the funding standard account of the plan for all plan years (beginning with the first plan year for which this part applies to the plan) over the total credits to such account for such years. **(b) Funding standard account** (1) **Account required** — Each multiemployer plan to which this part applies shall establish and maintain a funding standard account. Such account shall be credited and charged solely as provided in this section. (2) **Charges to account** — For a plan year, the funding standard account shall be charged with the sum of— (A) the normal cost of the plan for the plan year, (B) the amounts necessary to amortize in equal annual installments (until fully amortized)— (i) in the case of a plan which comes into existence on or after January 1, 2008, the unfunded past service liability under the plan on the first day of the first plan year to which this section applies, over a period of 15 plan years, (ii) separately, with respect to each plan year, the net increase (if any) in unfunded past service liability under the plan arising from plan amendments adopted in such year, over a period of 15 plan years, (iii) separately, with respect to each plan year, the net experience loss (if any) under the plan, over a period of 15 plan years, and (iv) separately, with respect to each plan year, the net loss (if any) resulting from changes in actuarial assumptions used under the plan, over

Source: Supplied U.S. Code snapshot — release unconfirmed · 29 U.S.C. § 1084

Stored review status: release_metadata_unconfirmed. The source passage cites 29 U.S.C. § 1084. This identifies an authority to review, not proof of applicability.

Federal law — U.S. Code and appendices · legal_authorities

29 U.S.C. § 1084 — Minimum funding standards for multiem-

§ 1084. Minimum funding standards for multiem- ployer plans (a) In general For purposes of section 1082 of this title, the accumulated funding deficiency of a multiem- ployer plan for any plan year is the amount, de- termined as of the end of the plan year, equal to the excess (if any) of the total charges to the funding standard account of the plan for all plan years (beginning with the first plan year for which this part applies to the plan) over the total credits to such account for such years. (b) Funding standard account (1) Account required Each multiemployer plan to which this part applies shall establish and maintain a funding standard account. Such account shall be cred- ited and charged solely as provided in this sec- tion. (2) Charges to account For a plan year, the funding standard ac- count shall be charged with the sum of— (A) the normal cost of the plan for the plan year, (B) the amounts necessary to amortize in equal annual installments (until fully amor- tized)— (i) in the case of a plan which comes into existence on or after January 1, 2008, the unfunded past service liability under the plan on the first day of the first plan year to which this section applies, over a period of 15 plan years, (ii) separately, with respect to each plan year, the net increase (if any) in unfunded past service liability under the plan aris- ing from plan amendments adopted in such year, over a period of 15 plan years, (iii) separately, with respect to each plan year, the net experience loss (if any) under the plan, over a period of 15 plan years, and (iv) separately, with respect to each plan year, the net loss (if any) resulting from changes in actuarial assumptions used under the plan, over a period of 15 plan years, (C) the amount n

Source: Supplied 2024 U.S. Code historical extraction · 29 U.S.C. § 1084

Stored review status: historical_2024_not_currentness_verified. The source passage cites 29 U.S.C. § 1084. This identifies an authority to review, not proof of applicability.

Federal law — U.S. Code and appendices · legal_authorities

29 U.S.C. § 1085 — Additional funding rules for multiemployer plans in endangered status or critical status

**(a) General rule** For purposes of this part, in the case of a multiemployer plan in effect on July 16, 2006— (1) if the plan is in endangered status— (A) the plan sponsor shall adopt and implement a funding improvement plan in accordance with the requirements of subsection (c), and (B) the requirements of subsection (d) shall apply during the funding plan adoption period and the funding improvement period, (2) if the plan is in critical status— (A) the plan sponsor shall adopt and implement a rehabilitation plan in accordance with the requirements of subsection (e), and (B) the requirements of subsection (f) shall apply during the rehabilitation plan adoption period and the rehabilitation period, and (3) if the plan is in critical and declining status— (A) the requirements of paragraph (2) shall apply to the plan; and (B) the plan sponsor may, by plan amendment, suspend benefits in accordance with the requirements of subsection (e)(9). **(b) Determination of endangered and critical status** For purposes of this section— (1) **Endangered status** — A multiemployer plan is in endangered status for a plan year if, as determined by the plan actuary under paragraph (3), the plan is not in critical status for the plan year and is not described in paragraph (5), and, as of the beginning of the plan year, either— (A) the plan’s funded percentage for such plan year is less than 80 percent, or (B) the plan has an accumulated funding deficiency for such plan year, or is projected to have such an accumulated funding deficiency for any of the 6 succeeding plan years, taking into account any extension of amortization periods under [section 1084(d) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1084/d&num=0&ed

Source: Supplied U.S. Code snapshot — release unconfirmed · 29 U.S.C. § 1085

Stored review status: release_metadata_unconfirmed. The source passage cites 29 U.S.C. § 1085. This identifies an authority to review, not proof of applicability.

Federal law — U.S. Code and appendices · legal_authorities

29 U.S.C. § 1085 — Additional funding rules for multiem-

§ 1085. Additional funding rules for multiem- ployer plans in endangered status or critical status (a) General rule For purposes of this part, in the case of a mul- tiemployer plan in effect on July 16, 2006— (1) if the plan is in endangered status— (A) the plan sponsor shall adopt and imple- ment a funding improvement plan in accord- ance with the requirements of subsection (c), and (B) the requirements of subsection (d) shall apply during the funding plan adoption period and the funding improvement period, (2) if the plan is in critical status— (A) the plan sponsor shall adopt and imple- ment a rehabilitation plan in accordance with the requirements of subsection (e), and (B) the requirements of subsection (f) shall apply during the rehabilitation plan adop- tion period and the rehabilitation period, and (3) if the plan is in critical and declining sta- tus— (A) the requirements of paragraph (2) shall apply to the plan; and (B) the plan sponsor may, by plan amend- ment, suspend benefits in accordance with the requirements of subsection (e)(9). (b) Determination of endangered and critical sta- tus For purposes of this section— (1) Endangered status A multiemployer plan is in endangered sta- tus for a plan year if, as determined by the plan actuary under paragraph (3), the plan is not in critical status for the plan year and is not described in paragraph (5), and, as of the beginning of the plan year, either— (A) the plan’s funded percentage for such plan year is less than 80 percent, or (B) the plan has an accumulated funding deficiency for such plan year, or is projected to have such an accumulated funding defi- ciency for any of the 6 succeeding plan years, taking into account any extension of amortization periods under section 1084(d) of

Source: Supplied 2024 U.S. Code historical extraction · 29 U.S.C. § 1085

Stored review status: historical_2024_not_currentness_verified. The source passage cites 29 U.S.C. § 1085. This identifies an authority to review, not proof of applicability.