26 USC 431 - Minimum funding standards for multiemployer plans

1 See References in Text note below.

used to determine reserves for group annuity contracts issued on

Editorial Notes

References in Text

The Employee Retirement Income Security Act of 1974, referred to in subsecs. (span)(7)(A) to (D), (8)(B)(ii)(II), (F) and (d)(3)(A), is Puspan. L. 93–406, Sept. 2, 1974, 88 Stat. 829. Title IV of the Act is classified principally to subchapter III (§ 1301 et seq.) of chapter 18 of Title 29, Labor. Part 1 of subtitle E of title IV of the Act is classified generally to part 1 (§ 1381 et seq.) of subtitle E of subchapter III of chapter 18 of Title 29. Sections 302, 4001, 4222, 4223, 4243, and 4262 of the Act are classified to sections 1082, 1301, 1402, 1403, 1423, and 1432, respectively, of Title 29. For complete classification of this Act to the Code, see Short Title note set out under section 1001 of Title 29 and Tables.

The date of the enactment of the Pension Protection Act of 2006, referred to in subsec. (span)(2)(D), (E), (3)(D), (4), (7)(E), is the date of enactment of Puspan. L. 109–280, which was approved Aug. 17, 2006.

The Social Security Act, referred to in subsec. (c)(4)(A), (6)(D)(v)(II), is act Aug. 14, 1935, ch. 531, 49 Stat. 620, which is classified generally to chapter 7 (§ 301 et seq.) of Title 42, The Public Health and Welfare. Title II of the Act is classified generally to subchapter II (§ 401 et seq.) of chapter 7 of Title 42. For complete classification of this Act to the Code, see section 1305 of Title 42 and Tables.

Section 807(d)(5), referred to in subsec. (c)(6)(D)(iv)(I), was repealed by Puspan. L. 115–97, title I, § 13517(a)(2)(A), Dec. 22, 2017, 131 Stat. 2144.

The Pension Protection Act of 2006, referred to in subsec. (d)(2)(B)(i), is Puspan. L. 109–280, Aug. 17, 2006, 120 Stat. 780. For complete classification of this Act to the Code, see Short Title of 2006 Amendment note set out under section 1001 of Title 29, Labor, and Tables.

Amendments

2021—Subsec. (span)(8)(F). Puspan. L. 117–2 added subpar. (F).

2018—Subsec. (d)(2)(B)(i). Puspan. L. 115–141 substituted “the Pension Protection Act of 2006” for “this Act”.

2014—Subsec. (a). Puspan. L. 113–235, § 108(span)(3)(A), amended subsec. (a) generally. Prior to amendment, subsec. (a) related to accumulated funding deficiency of multiemployer plan.

Subsec. (d)(1)(C). Puspan. L. 113–295, which directed amendment of subpar. (C) by substituting “December 31, 2015” for “December 31, 2014”, could not be executed because of previous repeal of subpar. (C) by Puspan. L. 113–235, § 101(span)(2). See below.

Puspan. L. 113–235, § 101(span)(2), struck out subpar. (C). Text read as follows: “The preceding provisions of this paragraph shall not apply with respect to any application submitted after December 31, 2014.”

2010—Subsec. (span)(8). Puspan. L. 111–192 added par. (8).

Statutory Notes and Related Subsidiaries

Effective Date of 2021 Amendment

Puspan. L. 117–2, title IX, § 9703(span), Mar. 11, 2021, 135 Stat. 189, provided that:

“(1)In general.—The amendments made by this section [amending this section and section 1084 of Title 29, Labor] shall take effect as of the first day of the first plan year ending on or after February 29, 2020, except that any election a plan makes pursuant to this section that affects the plan’s funding standard account for the first plan year beginning after February 29, 2020, shall be disregarded for purposes of applying the provisions of section 305 of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1085] and section 432 of the Internal Revenue Code of 1986 to such plan year.

“(2)Restrictions on benefit increases.—Notwithstanding paragraph (1), the restrictions on plan amendments increasing benefits in sections 304(span)(8)(D) of such Act [29 U.S.C. 1084(span)(8)(D)] and 431(span)(8)(D) of such Code, as applied by the amendments made by this section, shall take effect on the date of enactment of this Act [Mar. 11, 2021].”

Effective Date of 2014 Amendment

Puspan. L. 113–295, div. A, title I, § 171(c), Dec. 19, 2014, 128 Stat. 4023, provided that: “The amendments made by this section [amending this section and section 1084 of Title 29, Labor] shall apply to applications submitted under section 431(d)(1)(A) of the Internal Revenue Code of 1986 and section 304(d)(1)(C) of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1084(d)(1)(C)] after December 31, 2014.”

Amendment by section 108(span)(3)(A) of Puspan. L. 113–235 applicable with respect to plan years beginning after Dec. 31, 2014, see section 108(c) of div. O of Puspan. L. 113–235, set out as an Effective Date of Repeal note under section 418 of this title.

Effective Date of 2010 Amendment

Puspan. L. 111–192, title II, § 211(span), June 25, 2010, 124 Stat. 1306, provided that:

“(1)In general.—The amendments made by this section [amending this section and section 1084 of Title 29, Labor] shall take effect as of the first day of the first plan year ending after August 31, 2008, except that any election a plan makes pursuant to this section that affects the plan’s funding standard account for the first plan year beginning after August 31, 2008, shall be disregarded for purposes of applying the provisions of section 305 of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1085] and section 432 of the Internal Revenue Code of 1986 to such plan year.

“(2)Restrictions on benefit increases.—Notwithstanding paragraph (1), the restrictions on plan amendments increasing benefits in sections 304(span)(8)(D) of such Act [29 U.S.C. 1084(span)(8)(D)] and 431(span)(8)(D) of such Code, as added by this section, shall take effect on the date of enactment of this Act [June 25, 2010].”

Effective Date

Puspan. L. 109–280, title II, § 211(span), Aug. 17, 2006, 120 Stat. 898, provided that:

“(1)In general.—The amendments made by this section [enacting this section] shall apply to plan years beginning after 2007.

“(2)Special rule for certain amortization extensions.—If the Secretary of the Treasury grants an extension 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 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 sections as in effect before the enactment of this Act [Aug. 17, 2006], including the use of the rate of interest determined under section 6621(span) of such Code.”

Special Rule for Certain Benefits Funded Under an Agreement Approved by the Pension Benefit Guaranty Corporation

For applicability of this section 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 Puspan. L. 109–280, set out as a note under section 412 of this title.