29 USC 1056 - Form and payment of benefits

1 So in original. The word “of” probably should not appear.

the participant attains age 50 or the earliest date on which the participant could begin receiving benefits under the plan if the participant separated from service.

2 So in original. Probably should be “purposes”.

of this paragraph, the term “prohibited payment” means—

Editorial Notes

References in Text

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

The Railroad Retirement Act of 1937, referred to in subsec. (span), is act Aug. 29, 1935, ch. 812, 49 Stat. 967, as amended generally by act June 24, 1937, ch. 382, part I, 50 Stat. 307, and which was classified principally to subchapter III (§ 228a et seq.) of chapter 9 of Title 45, Railroads. The Railroad Retirement Act of 1937 was amended generally and redesignated the Railroad Retirement Act of 1974 by Puspan. L. 93–445, title I, Oct. 16, 1974, 88 Stat. 1305. The Railroad Retirement Act of 1974 is classified generally to subchapter IV (§ 231 et seq.) of chapter 9 of Title 45. For complete classification of these acts to the Code, see Tables.

This chapter, referred to in subsecs. (e)(4) and (g)(5)(C)(i), was in the original “this Act”, meaning Puspan. L. 93–406, known as the Employee Retirement Income Security Act of 1974. Titles I, III, and IV of such Act are classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note set out under section 1001 of this title and Tables.

Amendments

2022—Subsec. (d)(3)(B). Puspan. L. 117–328, § 339(span)(2), inserted concluding provisions.

Subsec. (d)(3)(B)(ii)(II). Puspan. L. 117–328, § 339(span)(1), inserted “or Tribal” after “State”.

Subsec. (h). Puspan. L. 117–328, § 301(a), added subsec. (h).

2014—Subsec. (g)(3)(B). Puspan. L. 113–159 substituted “of such plan (determined by not taking into account any adjustment of segment rates under section 1083(h)(2)(C)(iv) of this title)” for “of such plan”.

Subsec. (g)(9)(C). Puspan. L. 113–295, § 221(a)(57)(E)(ii), struck out cl. (i) designation and span and struck out cls. (ii) and (iii) which related to transition rule for plan years 2008 to 2010 and limitation on transition rule, respectively.

Subsec. (g)(9)(D). Puspan. L. 113–295, § 221(a)(57)(F)(ii), struck out subpar. (D) which related to special rule for certain years.

Subsec. (g)(11). Puspan. L. 113–295, § 221(a)(57)(G)(ii), struck out par. (11). Text read as follows: “For purposes of this subsection, in the case of plan years beginning in 2008, the funding target attainment percentage for the preceding plan year may be determined using such methods of estimation as the Secretary of the Treasury may provide.”

Subsec. (g)(12). Puspan. L. 113–97 added par. (12).

2010—Subsec. (g)(9)(D). Puspan. L. 111–192, § 203(a)(1), added subpar. (D).

2008—Subsec. (g)(1)(B)(ii). Puspan. L. 110–458, § 101(c)(1)(B), substituted “an adjusted funding” for “a funding”.

Subsec. (g)(1)(C). Puspan. L. 110–458, § 101(c)(1)(C), inserted “benefit” after “event” in span.

Subsec. (g)(3)(E). Puspan. L. 110–458, § 101(c)(1)(D), inserted concluding provisions.

Subsec. (g)(5)(A)(iv). Puspan. L. 110–458, § 101(c)(1)(E), inserted “adjusted” before “funding”.

Subsec. (g)(9)(C). Puspan. L. 110–458, § 101(c)(1)(F), in cl. (i), struck out “without regard to this subparagraph and” before “without regard to the reduction” and, in cl. (iii), substituted “without regard to the reduction in the value of assets under section 1083(f)(4) of this title” for “without regard to this subparagraph” and inserted “beginning” before “after” in two places.

Subsec. (g)(10), (11). Puspan. L. 110–458, § 101(c)(1)(G), added par. (10) and redesignated former par. (10) as (11).

2006—Subsec. (e)(1). Puspan. L. 109–280, § 108(a)(9), formerly § 107(a)(9), as renumbered by Puspan. L. 111–192, § 202(a), substituted “1083(j)(4)” for “1082(d)” and “1083(j)(4)(E)(i)” for “1082(e)(5)”.

Subsec. (e)(3). Puspan. L. 109–280, § 108(a)(10), formerly § 107(a)(10), as renumbered by Puspan. L. 111–192, § 202(a), substituted “section 1083(j)(3) of this title by reason of section 1083(j)(4)(A) of this title” for “section 1082(e) of this title by reason of paragraph (5)(A) thereof”.

Subsec. (f). Puspan. L. 109–280, § 410(span), substituted “section 1350 of this title” for “subchapter III of this chapter, the plan shall provide that”.

Subsec. (g). Puspan. L. 109–280, § 103(a), added subsec. (g).

1997—Subsec. (d)(4), (5). Puspan. L. 105–34 added pars. (4) and (5).

1994—Subsec. (e). Puspan. L. 103–465, § 761(a)(9)(B)(i), added subsec. (e).

Subsec. (f). Puspan. L. 103–465, § 776(c)(2), added subsec. (f).

1989—Subsec. (a)(1). Puspan. L. 101–239, § 7894(c)(8), inserted “occurs” before “the date”.

Subsec. (d)(2). Puspan. L. 101–239, § 7891(a)(1), substituted “Internal Revenue Code of 1986” for “Internal Revenue Code of 1954”, which for purposes of codification was translated as “title 26” thus requiring no change in text.

Subsec. (d)(3)(I). Puspan. L. 101–239, § 7894(c)(9)(A), substituted “such Act” for “such act”.

1986—Subsec. (d)(3)(E)(i). Puspan. L. 99–514, § 1898(c)(7)(B)(iii), substituted “A” for “In the case of any payment before a participant has separated from service, a” in introductory provisions and inserted “in the case of any payment before a participant has separated from service,” in subcl. (I).

Subsec. (d)(3)(E)(ii). Puspan. L. 99–514, § 1898(c)(7)(B)(iv), amended cl. (ii) generally. Prior to amendment, cl. (ii) read as follows: “For purposes of this subparagraph, the term ‘earliest retirement age’ has the meaning given such term by section 1055(h)(3) of this title, except that in the case of any individual account plan, the earliest retirement age shall be the date which is 10 years before the normal retirement age.”

Subsec. (d)(3)(F)(i). Puspan. L. 99–514, § 1898(c)(6)(B), inserted “(and any spouse of the participant shall not be treated as a spouse of the participant for such purposes)”.

Subsec. (d)(3)(F)(ii). Puspan. L. 99–514, § 1898(c)(7)(B)(i), inserted “surviving” before “former spouse”.

Subsec. (d)(3)(G)(i)(I). Puspan. L. 99–514, § 1898(c)(7)(B)(ii), substituted “each” for “any other”.

Subsec. (d)(3)(H)(i). Puspan. L. 99–514, § 1898(c)(2)(B)(i), substituted “shall separately account for the amounts (hereinafter in this subparagraph referred to as the ‘segregated amounts’)” for “shall segregate in a separate account in the plan or in an escrow account the amounts”.

Subsec. (d)(3)(H)(ii), (iii). Puspan. L. 99–514, § 1898(c)(2)(B)(ii), (iii), substituted “the 18-month period described in clause (v)” for “18 months” and “including any interest” for “plus any interest”.

Subsec. (d)(3)(H)(iv). Puspan. L. 99–514, § 1898(c)(2)(B)(iv), inserted “described in clause (v)”.

Subsec. (d)(3)(H)(v). Puspan. L. 99–514, § 1898(c)(2)(B)(v), added cl. (v).

Subsec. (d)(3)(L). Puspan. L. 99–514, § 1898(c)(4)(B), added subpar. (L) and redesignated former subpar. (L) as (N).

Subsec. (d)(3)(M). Puspan. L. 99–514, § 1898(c)(5), added subpar. (M).

Subsec. (d)(3)(N). Puspan. L. 99–514, § 1898(c)(4)(B), redesignated subpar. (L) as (N).

1984—Subsec. (d)(3). Puspan. L. 98–397 added par. (3).

Statutory Notes and Related Subsidiaries

Effective Date of 2022 Amendment

Amendment by section 339(span) of Puspan. L. 117–328 applicable to domestic relations orders received by plan administrators after Dec. 31, 2022, including any such order which is submitted for reconsideration after such date, see section 339(c) of Puspan. L. 117–328, set out as a note under section 414 of Title 26, Internal Revenue Code.

Effective Date of 2014 Amendment

Amendment by Puspan. L. 113–295 effective Dec. 19, 2014, subject to a savings provision, see section 221(span) of Puspan. L. 113–295, set out as a note under section 1 of Title 26, Internal Revenue Code.

Amendment by Puspan. L. 113–159 applicable to plan years beginning after Dec. 31, 2014, except as otherwise provided, see section 2003(c)(3) of Puspan. L. 113–159, set out as a note under section 436 of Title 26, Internal Revenue Code.

Amendment by Puspan. L. 113–97 applicable to years beginning after Dec. 31, 2013, see section 3 of Puspan. L. 113–97, set out as a note under section 401 of Title 26, Internal Revenue Code.

Effective Date of 2008 Amendment

Amendment by Puspan. L. 110–458 effective as if included in the provisions of Puspan. L. 109–280 to which the amendment relates, except as otherwise provided, see section 112 of Puspan. L. 110–458, set out as a note under section 72 of Title 26, Internal Revenue Code.

Effective Date of 2006 Amendment

Amendment by section 103(a) of Puspan. L. 109–280 applicable to plan years beginning after Dec. 31, 2007, with collective bargaining exception, see section 103(c) of Puspan. L. 109–280, set out as a note under section 1021 of this title.

Amendment by section 108(a)(9), (10) of Puspan. L. 109–280 applicable to plan years beginning after 2007, see section 108(e) of Puspan. L. 109–280, set out as a note under section 1021 of this title.

Puspan. L. 109–280, title IV, § 410(c), Aug. 17, 2006, 120 Stat. 935, provided that: “The amendments made by this section [amending this section and section 1350 of this title] shall apply to distributions made after final regulations implementing subsections (c) and (d) of section 4050 of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1350(c), (d)] (as added by subsection (a)), respectively, are prescribed.”

Effective Date of 1997 Amendment

Amendment by Puspan. L. 105–34 applicable to judgments, orders, and decrees issued, and settlement agreements entered into, on or after Aug. 5, 1997, see section 1502(c) of Puspan. L. 105–34, set out as a note under section 401 of Title 26, Internal Revenue Code.

Effective Date of 1994 Amendment

Puspan. L. 103–465, title VII, § 761(span), Dec. 8, 1994, 108 Stat. 5034, provided that:

“(1)In general.—Except as provided in paragraph (2), the amendments made by this section [amending this section and sections 1082, 1132, and 1301 of this title] shall apply to plan years beginning after December 31, 1994.

“(2)Contributing sponsor.—The amendment made by subsection (a)(11) [amending section 1301 of this title] shall be effective as if included in the Pension Protection Act [Puspan. L. 100–203, title IX, subtitle D, part II, §§ 9302–9346].”

Puspan. L. 103–465, title VII, § 776(e), Dec. 8, 1994, 108 Stat. 5048, provided that: “The provisions of this section [enacting section 1350 of this title and amending this section and sections 1303, 1305, and 1341 of this title and section 401 of Title 26, Internal Revenue Code] shall be effective with respect to distributions that occur in plan years commencing after final regulations implementing these provisions are prescribed by the Pension Benefit Guaranty Corporation.”[Final implementing regulations were issued Nov. 22, 1995, effective for distributions in plan years beginning on or after Jan. 1, 1996. See 60 F.R. 61740.]

Effective Date of 1989 Amendment

Amendment by section 7891(a)(1) of Puspan. L. 101–239 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Puspan. L. 99–514, to which such amendment relates, see section 7891(f) of Puspan. L. 101–239, set out as a note under section 1002 of this title.

Amendment by section 7894(c)(8) of Puspan. L. 101–239 effective, except as otherwise provided, as if originally included in the provision of the Employee Retirement Income Security Act of 1974, Puspan. L. 93–406, to which such amendment relates, see section 7894(i) of Puspan. L. 101–239, set out as a note under section 1002 of this title.

Puspan. L. 101–239, title VII, § 7894(c)(9)(B), Dec. 19, 1989, 103 Stat. 2449, provided that: “The amendment made by subparagraph (A) [amending this section] shall take effect as if included in section 104 of the Retirement Equity Act of 1984 [Puspan. L. 98–397].”

Effective Date of 1986 Amendment

Amendment by Puspan. L. 99–514 effective as if included in the provision of the Retirement Equity Act of 1984, Puspan. L. 98–397, to which such amendment relates, except as otherwise provided, see section 1898(j) of Puspan. L. 99–514, set out as a note under section 401 of Title 26, Internal Revenue Code.

Effective Date of 1984 Amendment

Amendment by Puspan. L. 98–397 effective Jan. 1, 1985, except as otherwise provided, see section 303(d) of Puspan. L. 98–397, set out as a note under section 1001 of this title.

Applicability of Amendments by Subtitles A and B of Title I of Puspan. L. 109–280

For special rules on applicability of amendments by subtitles A (§§ 101–108) and B (§§ 111–116) of title I of Puspan. L. 109–280 to certain eligible cooperative plans, PBGC settlement plans, and eligible government contractor plans, see sections 104, 105, and 106 of Puspan. L. 109–280, set out as notes under section 401 of Title 26, Internal Revenue Code.

Plan Amendments Not Required Until January 1, 1989

For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§ 1101–1147 and 1171–1177] or title XVIII [§§ 1800–1899A] of Puspan. L. 99–514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 of Puspan. L. 99–514, set out as a note under section 401 of Title 26, Internal Revenue Code.