Collapse to view only § 418E. Insolvent plans
[§§ 418 to 418D. Repealed. Pub. L. 113–235, div. O, title I, § 108(b)(1), Dec. 16, 2014, 128 Stat. 2787]
§ 418E. Insolvent plans
(a) Suspension of certain benefit payments
(b) DefinitionsFor purposes of this section, for a plan year—
(1) Insolvency
(2) Resource benefit level
(3) Available resources
(4) Insolvency year
(c) Benefit payments under insolvent plans
(1) Determination of resource benefit level
(2) Uniformity of the benefit suspension
(A) The suspension of benefit payments under this section shall, in accordance with regulations prescribed by the Secretary, apply in substantially uniform proportions to the benefits of all persons in pay status under the plan, except that the Secretary may prescribe rules under which benefit suspensions for different participant groups may be varied equitably to reflect variations in contribution rates and other relevant factors including differences in negotiated levels of financial support for plan benefit obligations.
(B) For purposes of this paragraph—
(i) the term “person in pay status” means—(I) a participant or beneficiary on the last day of the base plan year who, at any time during such year, was paid an early, late, normal, or disability retirement benefit (or a death benefit related to a retirement benefit), and(II) to the extent provided in regulations prescribed by the Secretary of the Treasury, any other person who is entitled to such a benefit under the plan.
(ii) the base plan year for any plan year is—(I) if there is a relevant collective bargaining agreement, the last plan year ending at least 6 months before the relevant effective date, or(II) if there is no relevant collective bargaining agreement, the last plan year ending at least 12 months before the beginning of the plan year.
(iii) a relevant collective bargaining agreement is a collective bargaining agreement—(I) which is in effect for at least 6 months during the plan year, and(II) which has not been in effect for more than 36 months as of the end of the plan year.
(iv) the relevant effective date is the earliest of the effective dates for the relevant collective bargaining agreements.
(3) Resource benefit level below level of basic benefits
(4) Excess resources
(A) In general
(B) Excess resources
(5) Unpaid benefits
(6) Retroactive payments
(d) Plan sponsor determination
(1) Triennial test
(2) Determination of insolvency
(3) Determination of resource benefit level
(4) For purposes of this subsection, the value of plan assets shall be the value of the available plan assets determined under regulations prescribed by the Secretary of the Treasury.
(e) Notice requirements
(1) Impending insolvencyIf the plan sponsor of a plan in critical status, as described in section 432(b)(2), determines under subsection (d)(1) or (2) that the plan may become insolvent (within the meaning of subsection (b)(1)), the plan sponsor shall—
(A) notify the Secretary and the parties described in section 101(f)(1) of the Employee Retirement Income Security Act of 1974 of that determination, and
(B) inform the parties described in section 101(f)(1) of the Employee Retirement Income Security Act of 1974 that if insolvency occurs certain benefit payments will be suspended, but that basic benefits will continue to be paid.
(2) Resource benefit level
(3) Potential need for financial assistance
(4) Regulations
(5) Corporation may prescribe time
(f) Financial assistance
(1) Permissive application
(2) Mandatory application
(g) Financial assistance
(h) Subsections (a) and (c) shall not apply to a plan that, for the plan year, is operating under section 432(e)(9), regarding benefit suspensions by certain multiemployer plans in critical and declining status.
(Added Pub. L. 96–364, title II, § 202(a), Sept. 26, 1980, 94 Stat. 1282; amended Pub. L. 109–280, title II, § 213(a), Aug. 17, 2006, 120 Stat. 917; Pub. L. 113–235, div. O, title I, § 108(b)(2), Dec. 16, 2014, 128 Stat. 2787; Pub. L. 115–141, div. U, title IV, § 401(a)(92)–(94), Mar. 23, 2018, 132 Stat. 1188.)