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29 U.S.C. § 1389 — De minimis rule
Federal law — U.S. Code and appendices · legal_authorities
**(a) Reduction of unfunded vested benefits allocable to employer withdrawn from plan** Except in the case of a plan amended under subsection (b), the amount of the unfunded vested benefits allocable under [section 1391 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1391&num=0&edition=prelim) to an employer who withdraws from a plan shall be reduced by the smaller of—
(1) ¾ of 1 percent of the plan’s unfunded vested obligations (determined as of the end of the plan year ending before the date of withdrawal), or
(2) $50,000,
reduced by the amount, if any, by which the unfunded vested benefits allowable to the employer, determined without regard to this subsection, exceeds $100,000.
**(b) Amendment of plan for reduction of amount of unfunded vested benefits allocable to employer withdrawn from plan** A plan may be amended to provide for the reduction of the amount determined under [section 1391 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1391&num=0&edition=prelim) by not more than the greater of—
(1) the amount determined under subsection (a), or
(2) the lesser of—
(A) the amount determined under subsection (a)(1), or
(B) $100,000,
reduced by the amount, if any, by which the amount determined under [section 1391 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1391&num=0&edition=prelim) for the employer, determined without regard to this subsection, exceeds $150,000.
**(c) Nonapplicability** This section does not apply—
(1) to an employer who withdraws in a plan year in which substantially all employers withdraw from the plan, or
(2) in any case in which substantially all employers withdraw from the plan during a period of one
Source: Supplied U.S. Code snapshot — release unconfirmed · 29 U.S.C. § 1389
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Stable record: federal_law:legal_authorities:record_usc_18207f293526a762165f4d4f
Source file: Laws/federal/codes/united-states-code/title-29/section-1389-de-minimis-rule--c6e79dc805.md
Pages: Not recorded – Not recorded
Passage SHA-256: 368e59698106e5edaf33e58b00c806daf657fd941922b5b6b76cd023e304a6af
Source location: Title 29, Chapter 18, § 1389; chapter-018-employee-retirement-income-security-program.md
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**(a) Reduction of unfunded vested benefits allocable to employer withdrawn from plan** Except in the case of a plan amended under subsection (b), the amount of the unfunded vested benefits allocable under [section 1391 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1391&num=0&edition=prelim) to an employer who withdraws from a plan shall be reduced by the smaller of—
(1) ¾ of 1 percent of the plan’s unfunded vested obligations (determined as of the end of the plan year ending before the date of withdrawal), or
(2) $50,000,
reduced by the amount, if any, by which the unfunded vested benefits allowable to the employer, determined without regard to this subsection, exceeds $100,000.
**(b) Amendment of plan for reduction of amount of unfunded vested benefits allocable to employer withdrawn from plan** A plan may be amended to provide for the reduction of the amount determined under [section 1391 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1391&num=0&edition=prelim) by not more than the greater of—
(1) the amount determined under subsection (a), or
(2) the lesser of—
(A) the amount determined under subsection (a)(1), or
(B) $100,000,
reduced by the amount, if any, by which the amount determined under [section 1391 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1391&num=0&edition=prelim) for the employer, determined without regard to this subsection, exceeds $150,000.
**(c) Nonapplicability** This section does not apply—
(1) to an employer who withdraws in a plan year in which substantially all employers withdraw from the plan, or
(2) in any case in which substantially all employers withdraw from the plan during a period of one or more plan years pursuant to an agreement or arrangement to withdraw, to an employer who withdraws pursuant to such agreement or arrangement.
**(d) Presumption of employer withdrawal from plan pursuant to agreement or arrangement applicable in action or proceeding to determine or collect withdrawal liability** In any action or proceeding to determine or collect withdrawal liability, if substantially all employers have withdrawn from a plan within a period of 3 plan years, an employer who has withdrawn from such plan during such period shall be presumed to have withdrawn from the plan pursuant to an agreement or arrangement, unless the employer proves otherwise by a preponderance of the evidence.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Determination of amount of unfunded vested benefits allocable to employer withdrawn from plan** The amount of the unfunded vested benefits allocable to an employer that withdraws from a plan shall be determined in accordance with subsection (b), (c), or (d) of this section.
**(b) Factors determining computation of amount of unfunded vested benefits allocable to employer withdrawn from plan**
(1) Except as provided in subsections (c) and (d), the amount of unfunded vested benefits allocable to an employer that withdraws is the sum of—
(A) the employer’s proportional share of the unamortized amount of the change in the plan’s unfunded vested benefits for plan years ending after September 25, 1980, as determined under paragraph (2),
(B) the employer’s proportional share, if any, of the unamortized amount of the plan’s unfunded vested benefits at the end of the plan year ending before September 26, 1980, as determined under paragraph (3); and
(C) the employer’s proportional share of the unamortized amounts of the reallocated unfunded vested benefits (if any) as determined under paragraph (4).
If the sum of the amounts determined with respect to an employer under paragraphs (2), (3), and (4) is negative, the unfunded vested benefits allocable to the employer shall be zero.
(2)
(A) An employer’s proportional share of the unamortized amount of the change in the plan’s unfunded vested benefits for plan years ending after September 25, 1980, is the sum of the employer’s proportional shares of the unamortized amount of the change in unfunded vested benefits for each plan year in which the employer has an obligation to contribute under the plan ending—
(i) after such date, and
(ii) before the plan year in which the withdrawal of the employer occurs
Source: Supplied U.S. Code snapshot — release unconfirmed · 29 U.S.C. § 1391
Stored review status: release_metadata_unconfirmed. Explicit cross-reference supplied in source Markdown; currentness and applicability require review.
Federal law — U.S. Code and appendices · legal_authorities
**(a)** If an employer withdraws from a multiemployer plan in a complete withdrawal or a partial withdrawal, then the employer is liable to the plan in the amount determined under this part to be the withdrawal liability.
**(b)** For purposes of subsection (a)—
(1) The withdrawal liability of an employer to a plan is the amount determined under [section 1391 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1391&num=0&edition=prelim) to be the allocable amount of unfunded vested benefits, adjusted—
(A) first, by any de minimis reduction applicable under [section 1389 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1389&num=0&edition=prelim),
(B) next, in the case of a partial withdrawal, in accordance with [section 1386 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1386&num=0&edition=prelim),
(C) then, to the extent necessary to reflect the limitation on annual payments under [section 1399(c)(1)(B) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1399/c/1/B&num=0&edition=prelim), and
(D) finally, in accordance with [section 1405 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1405&num=0&edition=prelim).
(2) The term “complete withdrawal” means a complete withdrawal described in [section 1383 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1383&num=0&edition=prelim).
(3) The term “partial withdrawal” means a partial withdrawal described in [section 1385 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1385&num=0&edition=prelim).
Source: Supplied U.S. Code snapshot — release unconfirmed · 29 U.S.C. § 1381
Stored review status: release_metadata_unconfirmed. Incoming connection: Explicit cross-reference supplied in source Markdown; currentness and applicability require review.
Federal law — U.S. Code and appendices · legal_authorities
**(a)** The amount of an employer’s liability for a partial withdrawal, before the application of sections 1399(c)(1) and 1405 of this title, is equal to the product of—
(1) the amount determined under [section 1391 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1391&num=0&edition=prelim), and adjusted under [section 1389 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1389&num=0&edition=prelim) if appropriate, determined as if the employer had withdrawn from the plan in a complete withdrawal—
(A) on the date of the partial withdrawal, or
(B) in the case of a partial withdrawal described in [section 1385(a)(1) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1385/a/1&num=0&edition=prelim) (relating to 70-percent contribution decline), on the last day of the first plan year in the 3-year testing period,
multiplied by
(2) a fraction which is 1 minus a fraction—
(A) the numerator of which is the employer’s contribution base units for the plan year following the plan year in which the partial withdrawal occurs, and
(B) the denominator of which is the average of the employer’s contribution base units for—
(i) except as provided in clause (ii), the 5 plan years immediately preceding the plan year in which the partial withdrawal occurs, or
(ii) in the case of a partial withdrawal described in [section 1385(a)(1) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1385/a/1&num=0&edition=prelim) (relating to 70-percent contribution decline), the 5 plan years immediately preceding the beginning of the 3-year testing period.
**(b)**
(1) In the case of an employer that has withdrawal liabi
Source: Supplied U.S. Code snapshot — release unconfirmed · 29 U.S.C. § 1386
Stored review status: release_metadata_unconfirmed. Incoming connection: Explicit cross-reference supplied in source Markdown; currentness and applicability require review.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Furnishing of information by employer to plan sponsor** An employer shall, within 30 days after a written request from the plan sponsor, furnish such information as the plan sponsor reasonably determines to be necessary to enable the plan sponsor to comply with the requirements of this part.
**(b) Notification, demand for payment, and review upon complete or partial withdrawal by employer**
(1) As soon as practicable after an employer’s complete or partial withdrawal, the plan sponsor shall—
(A) notify the employer of—
(i) the amount of the liability, and
(ii) the schedule for liability payments, and
(B) demand payment in accordance with the schedule.
(2)
(A) No later than 90 days after the employer receives the notice described in paragraph (1), the employer—
(i) may ask the plan sponsor to review any specific matter relating to the determination of the employer’s liability and the schedule of payments,
(ii) may identify any inaccuracy in the determination of the amount of the unfunded vested benefits allocable to the employer, and
(iii) may furnish any additional relevant information to the plan sponsor.
(B) After a reasonable review of any matter raised, the plan sponsor shall notify the employer of—
(i) the plan sponsor’s decision,
(ii) the basis for the decision, and
(iii) the reason for any change in the determination of the employer’s liability or schedule of liability payments.
**(c) Payment requirements; amount, etc.**
(1)
(A)
(i) Except as provided in subparagraphs (B) and (D) of this paragraph and in paragraphs (4) and (5), an employer shall pay the amount determined under [section 1391 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1391&num=0&ed
Source: Supplied U.S. Code snapshot — release unconfirmed · 29 U.S.C. § 1399
Stored review status: release_metadata_unconfirmed. Incoming connection: Explicit cross-reference supplied in source Markdown; currentness and applicability require review.
Federal law — U.S. Code and appendices · legal_authorities
Page 705
TITLE 29—LABOR
§ 1389
1 So in original. Probably should be ‘‘title),’’.
2 See References in Text note below.
(B) If the plan sponsor determines under para-
graph (1) that the employer has no further li-
ability to the plan for the partial withdrawal,
then the bond shall be cancelled.
(C) If the plan sponsor determines under para-
graph (1) that the employer continues to have li-
ability to the plan for the partial withdrawal,
then—
(i) the bond shall be paid to the plan,
(ii) the employer shall immediately be liable
for the outstanding amount of liability due
with respect to the plan year for which the
bond was posted, and
(iii) the employer shall continue to make
the partial withdrawal liability payments as
they are due.
(b) Obligation of employer for payments for par-
tial withdrawal for plan years beginning
after the second consecutive plan year; other
criteria applicable
If—
(1) for any 2 consecutive plan years following
a partial withdrawal under section 1385(a)(1) of
this title, the number of contribution base
units with respect to which the employer has
an obligation to contribute for each such year
exceeds 30 percent of the total number of con-
tribution base units with respect to which the
employer had an obligation to contribute for
the high base year (within the meaning of sec-
tion 1385(b)(1)(B)(ii) of this title,1 and
(2) the total number of contribution base
units with respect to which all employers
under the plan have obligations to contribute
in each of such 2 consecutive years is not less
than 90 percent of the total number of con-
tribution base units for which all employers
had obligations to contribute in the partial
withdrawal plan year;
then, the employer shall have no obligation to
make payments with respect
Source: Supplied 2024 U.S. Code historical extraction · 29 U.S.C. § 1389
Stored review status: historical_2024_not_currentness_verified. Same stored citation; legal effect and authority still require review.