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29 U.S.C. § 1399 — Notice, collection, etc., of withdrawal liability
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
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Source file: Laws/federal/codes/united-states-code/title-29/section-1399-notice-collection-etc-of-withdrawal-liability--738d120e95.md
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Source location: Title 29, Chapter 18, § 1399; chapter-018-employee-retirement-income-security-program.md
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**(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&edition=prelim), adjusted if appropriate first under [section 1389 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1389&num=0&edition=prelim) and then under [section 1386 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1386&num=0&edition=prelim) over the period of years necessary to amortize the amount in level annual payments determined under subparagraph (C), calculated as if the first payment were made on the first day of the plan year following the plan year in which the withdrawal occurs and as if each subsequent payment were made on the first day of each subsequent plan year. Actual payment shall commence in accordance with paragraph (2).
(ii) The determination of the amortization period described in clause (i) shall be based on the assumptions used for the most recent actuarial valuation for the plan.
(B) In any case in which the amortization period described in subparagraph (A) exceeds 20 years, the employer’s liability shall be limited to the first 20 annual payments determined under subparagraph (C).
(C)
(i) Except as provided in subparagraph (E), the amount of each annual payment shall be the product of—
(I) the average annual number of contribution base units for the period of 3 consecutive plan years, during the period of 10 consecutive plan years ending before the plan year in which the withdrawal occurs, in which the number of contribution base units for which the employer had an obligation to contribute under the plan is the highest, and
(II) the highest contribution rate at which the employer had an obligation to contribute under the plan during the 10 plan years ending with the plan year in which the withdrawal occurs.
For purposes of the preceding sentence, 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) shall be deemed to occur on the last day of the first year of the 3-year testing period described in [section 1385(b)(1)(B)(i) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1385/b/1/B/i&num=0&edition=prelim).
(ii)
(I) A plan may be amended to provide that for any plan year ending before 1986 the amount of each annual payment shall be (in lieu of the amount determined under clause (i)) the average of the required employer contributions under the plan for the period of 3 consecutive plan years (during the period of 10 consecutive plan years ending with the plan year preceding the plan year in which the withdrawal occurs) for which such required contributions were the highest.
(II) Subparagraph (B) shall not apply to any plan year to which this clause applies.
(III) This clause shall not apply in the case of any withdrawal described in subparagraph (D).
(IV) If under a plan this clause applies to any plan year but does not apply to the next plan year, this clause shall not apply to any plan year after such next plan year.
(V) For purposes of this clause, the term “required contributions” means, for any period, the amounts which the employer was obligated to contribute for such period (not taking into account any delinquent contribution for any other period).
(iii) A plan may be amended to provide that for the first plan year ending on or after September 26, 1980, the number “5” shall be substituted for the number “10” each place it appears in clause (i) or clause (ii) (whichever is appropriate). If the plan is so amended, the number “5” shall be increased by one for each succeeding plan year until the number “10” is reached.
(D) In any case in which a multiemployer plan terminates by the withdrawal of every employer from the plan, or in which substantially all the employers withdraw from a plan pursuant to an agreement or arrangement to withdraw from the plan—
(i) the liability of each such employer who has withdrawn shall be determined (or redetermined) under this paragraph without regard to subparagraph (B), and
(ii) notwithstanding any other provision of this part, the total unfunded vested benefits of the plan shall be fully allocated among all such employers in a manner not inconsistent with regulations which shall be prescribed by the corporation.
Withdrawal by an employer from a plan, during a period of 3 consecutive plan years within which substantially all the employers who have an obligation to contribute under the plan withdraw, shall be presumed to be a withdrawal pursuant to an agreement or arrangement, unless the employer proves otherwise by a preponderance of the evidence.
(E) In the case of a partial withdrawal described in [section 1385(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1385/a&num=0&edition=prelim), the amount of each annual payment shall be the product of—
(i) the amount determined under subparagraph (C) (determined without regard to this subparagraph), multiplied by
(ii) the fraction determined under [section 1386(a)(2) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1386/a/2&num=0&edition=prelim).
(2) Withdrawal liability shall be payable in accordance with the schedule set forth by the plan sponsor under subsection (b)(1) beginning no later than 60 days after the date of the demand notwithstanding any request for review or appeal of determinations of the amount of such liability or of the schedule.
(3) Each annual payment determined under paragraph (1)(C) shall be payable in 4 equal installments due quarterly, or at other intervals specified by plan rules. If a payment is not made when due, interest on the payment shall accrue from the due date until the date on which the payment is made.
(4) The employer shall be entitled to prepay the outstanding amount of the unpaid annual withdrawal liability payments determined under paragraph (1)(C), plus accrued interest, if any, in whole or in part, without penalty. If the prepayment is made pursuant to a withdrawal which is later determined to be part of a withdrawal described in paragraph (1)(D), the withdrawal liability of the employer shall not be limited to the amount of the prepayment.
(5) In the event of a default, a plan sponsor may require immediate payment of the outstanding amount of an employer’s withdrawal liability, plus accrued interest on the total outstanding liability from the due date of the first payment which was not timely made. For purposes of this section, the term “default” means—
(A) the failure of an employer to make, when due, any payment under this section, if the failure is not cured within 60 days after the employer receives written notification from the plan sponsor of such failure, and
(B) any other event defined in rules adopted by the plan which indicates a substantial likelihood that an employer will be unable to pay its withdrawal liability.
(6) Except as provided in paragraph (1)(A)(ii), interest under this subsection shall be charged at rates based on prevailing market rates for comparable obligations, in accordance with regulations prescribed by the corporation.
(7) A multiemployer plan may adopt rules for other terms and conditions for the satisfaction of an employer’s withdrawal liability if such rules—
(A) are consistent with this chapter, and
(B) are not inconsistent with regulations of the corporation.
(8) In the case of a terminated multiemployer plan, an employer’s obligation to make payments under this section ceases at the end of the plan year in which the assets of the plan (exclusive of withdrawal liability claims) are sufficient to meet all obligations of the plan, as determined by the corporation.
**(d) Applicability of statutory prohibitions** The prohibitions provided in [section 1106(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1106/a&num=0&edition=prelim) do not apply to any action required or permitted under this part or to any arrangement relating to withdrawal liability involving the plan.
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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
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) Benefit plans as affecting interstate commerce and the Federal taxing power** The Congress finds that the growth in size, scope, and numbers of employee benefit plans in recent years has been rapid and substantial; that the operational scope and economic impact of such plans is increasingly interstate; that the continued well-being and security of millions of employees and their dependents are directly affected by these plans; that they are affected with a national public interest; that they have become an important factor affecting the stability of employment and the successful development of industrial relations; that they have become an important factor in commerce because of the interstate character of their activities, and of the activities of their participants, and the employers, employee organizations, and other entities by which they are established or maintained; that a large volume of the activities of such plans are carried on by means of the mails and instrumentalities of interstate commerce; that owing to the lack of employee information and adequate safeguards concerning their operation, it is desirable in the interests of employees and their beneficiaries, and to provide for the general welfare and the free flow of commerce, that disclosure be made and safeguards be provided with respect to the establishment, operation, and administration of such plans; that they substantially affect the revenues of the United States because they are afforded preferential Federal tax treatment; that despite the enormous growth in such plans many employees with long years of employment are losing anticipated retirement benefits owing to the lack of vesting provisions in such plans; that owing to the inadequacy of current minimum standards, the soundness and stabilit
Source: Supplied U.S. Code snapshot — release unconfirmed · 29 U.S.C. § 1001
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) 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
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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. Explicit cross-reference supplied in source Markdown; currentness and applicability require review.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Authority to transfer from old plan to new plan pursuant to employee participation in another multiemployer plan after certified change of representative** In any case in which an employer has completely or partially withdrawn from a multiemployer plan (hereafter in this section referred to as the “old plan”) as a result of a certified change of collective bargaining representative occurring after September 25, 1980, if participants of the old plan who are employed by the employer will, as a result of that change, participate in another multiemployer plan (hereafter in this section referred to as the “new plan”), the old plan shall transfer assets and liabilities to the new plan in accordance with this section.
**(b) Notification by employer of plan sponsor of old plan; notification by plan sponsor of old plan of employer and plan sponsor of new plan; appeal by new plan to prevent transfer; further proceedings**
(1) The employer shall notify the plan sponsor of the old plan of a change in multiemployer plan participation described in subsection (a) no later than 30 days after the employer determines that the change will occur.
(2) The plan sponsor of the old plan shall—
(A) notify the employer of—
(i) the amount of the employer’s withdrawal liability determined under part 1 of this subtitle with respect to the withdrawal,
(ii) the old plan’s intent to transfer to the new plan the nonforfeitable benefits of the employees who are no longer working in covered service under the old plan as a result of the change of bargaining representative, and
(iii) the amount of assets and liabilities which are to be transferred to the new plan, and
(B) notify the plan sponsor of the new plan of the benefits, assets, and liabilities which will be transferred
Source: Supplied U.S. Code snapshot — release unconfirmed · 29 U.S.C. § 1415
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Federal law — U.S. Code and appendices · legal_authorities
Page 713
TITLE 29—LABOR
§ 1399
(2)
an
employer
suspends
contributions
under the plan during a labor dispute involv-
ing its employees.
For purposes of this part, a successor or parent
corporation or other entity resulting from any
such change shall be considered the original em-
ployer.
(Pub. L. 93–406, title IV, § 4218, as added Pub. L.
96–364, title I, § 104(2), Sept. 26, 1980, 94 Stat. 1236;
amended Pub. L. 99–514, title XVIII, § 1879(u)(4),
as added Pub. L. 101–239, title VII, § 7862(b)(1)(C),
Dec. 19, 1989, 103 Stat. 2432; Pub. L. 101–239, title
VII, § 7893(f), Dec. 19, 1989, 103 Stat. 2447.)
Editorial Notes
AMENDMENTS
1989—Par. (1)(A). Pub. L. 101–239, § 7893(f), made iden-
tical amendment to that of Pub. L. 99–514, § 1879(u)(4),
as added by Pub. L. 101–239, § 7862(b)(1)(C), see below.
Pub. L. 101–239, § 7862(b)(1)(C), added Pub. L. 99–514,
§ 1879(u)(4), see 1986 Amendment note below.
1986—Par. (1)(A). Pub. L. 99–514, § 1879(u)(4), as added
by Pub. L. 101–239, § 7862(b)(1)(C), substituted ‘‘section
1369(b) of this title’’ for ‘‘section 1362(d) of this title’’.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 1989 AMENDMENT
Amendment by section 7862(b)(1)(C) of Pub. L. 101–239
effective as if included in the provision of the Tax Re-
form Act of 1986, Pub. L. 99–514, to which such amend-
ment relates, see section 7863 of Pub. L. 101–239, set out
as a note under section 106 of Title 26, Internal Revenue
Code.
Amendment by section 7893(f) of Pub. L. 101–239 effec-
tive as if included in the provision of the Single-Em-
ployer Pension Plan Amendments Act of 1986, Pub. L.
99–272, title XI, to which such amendment relates, see
section 7893(h) of Pub. L. 101–239, set out as a note
under section 1002 of this title.
PLAN AMENDMENTS NO
Source: Supplied 2024 U.S. Code historical extraction · 29 U.S.C. § 1399
Stored review status: historical_2024_not_currentness_verified. Same stored citation; legal effect and authority still require review.