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26 U.S.C. § 4980F — Failure of applicable plans reducing benefit accruals to satisfy notice requirements
Federal law — U.S. Code and appendices · legal_authorities
**(a) Imposition of tax** There is hereby imposed a tax on the failure of any applicable pension plan to meet the requirements of subsection (e) with respect to any applicable individual.
**(b) Amount of tax**
(1) **In general** — The amount of the tax imposed by subsection (a) on any failure with respect to any applicable individual shall be $100 for each day in the noncompliance period with respect to such failure.
(2) **Noncompliance period** — For purposes of this section, the term “noncompliance period” means, with respect to any failure, the period beginning on the date the failure first occurs and ending on the date the notice to which the failure relates is provided or the failure is otherwise corrected.
**(c) Limitations on amount of tax**
(1) **Tax not to apply where failure not discovered and reasonable diligence exercised** — No tax shall be imposed by subsection (a) on any failure during any period for which it is established to the satisfaction of the Secretary that any person subject to liability for the tax under subsection (d) did not know that the failure existed and exercised reasonable diligence to meet the requirements of subsection (e).
(2) **Tax not to apply to failures corrected within 30 days** — No tax shall be imposed by subsection (a) on any failure if—
(A) any person subject to liability for the tax under subsection (d) exercised reasonable diligence to meet the requirements of subsection (e), and
(B) such person provides the notice described in subsection (e) during the 30-day period beginning on the first date such person knew, or exercising reasonable diligence would have known, that such failure existed.
(3) **Overall limitation for unintentional failures**
(A) *In general* — If the person subject to liability for tax und
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Source file: Laws/federal/codes/united-states-code/title-26/section-4980f-failure-of-applicable-plans-reducing-benefit-accruals-to-satisfy-notice--8c58841c8b.md
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Source location: Title 26, Chapter 43, § 4980F; chapter-043-qualified-pension-etc-plans.md
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**(a) Imposition of tax** There is hereby imposed a tax on the failure of any applicable pension plan to meet the requirements of subsection (e) with respect to any applicable individual.
**(b) Amount of tax**
(1) **In general** — The amount of the tax imposed by subsection (a) on any failure with respect to any applicable individual shall be $100 for each day in the noncompliance period with respect to such failure.
(2) **Noncompliance period** — For purposes of this section, the term “noncompliance period” means, with respect to any failure, the period beginning on the date the failure first occurs and ending on the date the notice to which the failure relates is provided or the failure is otherwise corrected.
**(c) Limitations on amount of tax**
(1) **Tax not to apply where failure not discovered and reasonable diligence exercised** — No tax shall be imposed by subsection (a) on any failure during any period for which it is established to the satisfaction of the Secretary that any person subject to liability for the tax under subsection (d) did not know that the failure existed and exercised reasonable diligence to meet the requirements of subsection (e).
(2) **Tax not to apply to failures corrected within 30 days** — No tax shall be imposed by subsection (a) on any failure if—
(A) any person subject to liability for the tax under subsection (d) exercised reasonable diligence to meet the requirements of subsection (e), and
(B) such person provides the notice described in subsection (e) during the 30-day period beginning on the first date such person knew, or exercising reasonable diligence would have known, that such failure existed.
(3) **Overall limitation for unintentional failures**
(A) *In general* — If the person subject to liability for tax under subsection (d) exercised reasonable diligence to meet the requirements of subsection (e), the tax imposed by subsection (a) for failures during the taxable year of the employer (or, in the case of a multiemployer plan, the taxable year of the trust forming part of the plan) shall not exceed $500,000. For purposes of the preceding sentence, all multiemployer plans of which the same trust forms a part shall be treated as 1 plan.
(B) *Taxable years in the case of certain controlled groups* — For purposes of this paragraph, if all persons who are treated as a single employer for purposes of this section do not have the same taxable year, the taxable years taken into account shall be determined under principles similar to the principles of section 1561.
(4) **Waiver by Secretary** — In the case of a failure which is due to reasonable cause and not to willful neglect, the Secretary may waive part or all of the tax imposed by subsection (a) to the extent that the payment of such tax would be excessive or otherwise inequitable relative to the failure involved.
**(d) Liability for tax** The following shall be liable for the tax imposed by subsection (a):
(1) In the case of a plan other than a multiemployer plan, the employer.
(2) In the case of a multiemployer plan, the plan.
**(e) Notice requirements for plans significantly reducing benefit accruals**
(1) **In general** — If an applicable pension plan is amended to provide for a significant reduction in the rate of future benefit accrual, the plan administrator shall provide the notice described in paragraph (2) to each applicable individual (and to each employee organization representing applicable individuals) and to each employer who has an obligation to contribute to the plan.
(2) **Notice** — The notice required by paragraph (1) shall be written in a manner calculated to be understood by the average plan participant and shall provide sufficient information (as determined in accordance with regulations prescribed by the Secretary) to allow applicable individuals to understand the effect of the plan amendment. The Secretary may provide a simplified form of notice for, or exempt from any notice requirement, a plan—
(A) which has fewer than 100 participants who have accrued a benefit under the plan, or
(B) which offers participants the option to choose between the new benefit formula and the old benefit formula.
(3) **Timing of notice** — Except as provided in regulations, the notice required by paragraph (1) shall be provided within a reasonable time before the effective date of the plan amendment.
(4) **Designees** — Any notice under paragraph (1) may be provided to a person designated, in writing, by the person to which it would otherwise be provided.
(5) **Notice before adoption of amendment** — A plan shall not be treated as failing to meet the requirements of paragraph (1) merely because notice is provided before the adoption of the plan amendment if no material modification of the amendment occurs before the amendment is adopted.
**(f) Definitions and special rules** For purposes of this section—
(1) **Applicable individual** — The term “applicable individual” means, with respect to any plan amendment—
(A) each participant in the plan, and
(B) any beneficiary who is an alternate payee (within the meaning of section 414(p)(8)) under an applicable qualified domestic relations order (within the meaning of section 414(p)(1)(A)),
whose rate of future benefit accrual under the plan may reasonably be expected to be significantly reduced by such plan amendment.
(2) **Applicable pension plan** — The term “applicable pension plan” means—
(A) any defined benefit plan described in section 401(a) which includes a trust exempt from tax under section 501(a), or
(B) an individual account plan which is subject to the funding standards of section 412.
Such term shall not include a governmental plan (within the meaning of section 414(d)) or a church plan (within the meaning of section 414(e)) with respect to which the election provided by section 410(d) has not been made.
(3) **Early retirement** — A plan amendment which eliminates or reduces any early retirement benefit or retirement-type subsidy (within the meaning of section 411(d)(6)(B)(i)) shall be treated as having the effect of reducing the rate of future benefit accrual.
**(g) New technologies** The Secretary may by regulations allow any notice under subsection (e) to be provided by using new technologies.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Satisfaction of requirements by pension plans** Each pension plan shall satisfy the requirements of subsection (b)(3), and—
(1) in the case of a defined benefit plan, shall satisfy the requirements of subsection (b)(1); and
(2) in the case of a defined contribution plan, shall satisfy the requirements of subsection (b)(2).
**(b) Enumeration of plan requirements**
(1)
(A) A defined benefit plan satisfies the requirements of this paragraph if the accrued benefit to which each participant is entitled upon his separation from the service is not less than—
(i) 3 percent of the normal retirement benefit to which he would be entitled at the normal retirement age if he commenced participation at the earliest possible entry age under the plan and served continuously until the earlier of age 65 or the normal retirement age specified under the plan, multiplied by
(ii) the number of years (not in excess of 33⅓) of his participation in the plan.
In the case of a plan providing retirement benefits based on compensation during any period, the normal retirement benefit to which a participant would be entitled shall be determined as if he continued to earn annually the average rate of compensation which he earned during consecutive years of service, not in excess of 10, for which his compensation was the highest. For purposes of this subparagraph, social security benefits and all other relevant factors used to compute benefits shall be treated as remaining constant as of the current year for all years after such current year.
(B) A defined benefit plan satisfies the requirements of this paragraph of a particular plan year if under the plan the accrued benefit payable at the normal retirement age is equal to the normal retirement benefit and the annual rate
Source: Supplied U.S. Code snapshot — release unconfirmed · 29 U.S.C. § 1054
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Summary plan description and information to be furnished to participants and beneficiaries** The administrator of each employee benefit plan shall cause to be furnished in accordance with [section 1024(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1024/b&num=0&edition=prelim) to each participant covered under the plan and to each beneficiary who is receiving benefits under the plan—
(1) a summary plan description described in section 1022(a)(1) 11 See References in Text note below. of this title; and
(2) the information described in subsection (f) and sections 1024(b)(3) and 1025(a) and (c) of this title.
**(b) Reports to be filed with Secretary of Labor** The administrator shall, in accordance with [section 1024(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1024/a&num=0&edition=prelim), file with the Secretary—
(1) the annual report containing the information required by [section 1023 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1023&num=0&edition=prelim); and
(2) terminal and supplementary reports as required by subsection (c) of this section.
**(c) Terminal and supplementary reports**
(1) Each administrator of an employee pension benefit plan which is winding up its affairs (without regard to the number of participants remaining in the plan) shall, in accordance with regulations prescribed by the Secretary, file such terminal reports as the Secretary may consider necessary. A copy of such report shall also be filed with the Pension Benefit Guaranty Corporation.
(2) The Secretary may require terminal reports to be filed with regard to any employee welfare benefit plan which is winding up its affairs in accordance w
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Persons empowered to bring a civil action** A civil action may be brought—
(1) by a participant or beneficiary—
(A) for the relief provided for in subsection (c) of this section, or
(B) to recover benefits due to him under the terms of his plan, to enforce his rights under the terms of the plan, or to clarify his rights to future benefits under the terms of the plan;
(2) by the Secretary, or by a participant, beneficiary or fiduciary for appropriate relief under [section 1109 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1109&num=0&edition=prelim);
(3) by a participant, beneficiary, or fiduciary (A) to enjoin any act or practice which violates any provision of this subchapter or the terms of the plan, or (B) to obtain other appropriate equitable relief (i) to redress such violations or (ii) to enforce any provisions of this subchapter or the terms of the plan;
(4) by the Secretary, or by a participant, or beneficiary for appropriate relief in the case of a violation of section 1025(c) or 1032(a) of this title;
(5) except as otherwise provided in subsection (b), by the Secretary (A) to enjoin any act or practice which violates any provision of this subchapter, or (B) to obtain other appropriate equitable relief (i) to redress such violation or (ii) to enforce any provision of this subchapter;
(6) by the Secretary to collect any civil penalty under paragraph (2), (4), (5), (6), (7), (8), or (9) of subsection (c) or under subsection (i) or (l);
(7) by a State to enforce compliance with a qualified medical child support order (as defined in [section 1169(a)(2)(A) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1169/a/2/A&num=0&edition=prelim));
(8) by the Secretary, o
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Federal law — U.S. Code and appendices · legal_authorities
Page 3114
TITLE 26—INTERNAL REVENUE CODE
§ 4980F
(Added Pub. L. 104–191, title III, § 301(c)(4)(A),
Aug. 21, 1996, 110 Stat. 2049; amended Pub. L.
106–554, § 1(a)(7) [title II, § 202(a)(8), (b)(2)(D)],
Dec. 21, 2000, 114 Stat. 2763, 2763A–629; Pub. L.
107–147, title IV, § 417(17)(A), Mar. 9, 2002, 116
Stat. 56.)
Editorial Notes
AMENDMENTS
2002—Pub. L. 107–147 substituted ‘‘Archer MSA con-
tributions’’ for ‘‘medical savings account contribu-
tions’’ in section catchline.
2000—Subsec. (a). Pub. L. 106–554, § 1(a)(7) [title II,
§ 202(a)(8)], substituted ‘‘Archer MSA’’ for ‘‘medical sav-
ings account’’.
Subsecs. (b), (d)(1). Pub. L. 106–554, § 1(a)(7) [title II,
§ 202(b)(2)(D)], substituted ‘‘Archer MSAs’’ for ‘‘medical
savings accounts’’.
Subsec. (d)(2)(B). Pub. L. 106–554, § 1(a)(7) [title II,
§ 202(a)(8)], substituted ‘‘Archer MSA’’ for ‘‘medical sav-
ings account’’.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE
Section applicable to taxable years beginning after
Dec. 31, 1996, see section 301(j) of Pub. L. 104–191, set out
as an Effective Date of 1996 Amendment note under sec-
tion 62 of this title.
§ 4980F. Failure of applicable plans reducing
benefit accruals to satisfy notice require-
ments
(a) Imposition of tax
There is hereby imposed a tax on the failure of
any applicable pension plan to meet the require-
ments of subsection (e) with respect to any ap-
plicable individual.
(b) Amount of tax
(1) In general
The amount of the tax imposed by sub-
section (a) on any failure with respect to any
applicable individual shall be $100 for each day
in the noncompliance period with respect to
such failure.
(2) Noncompliance period
For purposes of this section, the term ‘‘non-
compliance period’’ means, with respect to
any failure, the
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 4980F
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