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29 U.S.C. § 1390 — Nonapplicability of withdrawal liability for certain temporary contribution obligation periods; exception
Federal law — U.S. Code and appendices · legal_authorities
**(a)** An employer who withdraws from a plan in complete or partial withdrawal is not liable to the plan if the employer—
(1) first had an obligation to contribute to the plan after September 26, 1980,
(2) had an obligation to contribute to the plan for no more than the lesser of—
(A) 6 consecutive plan years preceding the date on which the employer withdraws, or
(B) the number of years required for vesting under the plan,
(3) was required to make contributions to the plan for each such plan year in an amount equal to less than 2 percent of the sum of all employer contributions made to the plan for each such year, and
(4) has never avoided withdrawal liability because of the application of this section with respect to the plan.
**(b)** Subsection (a) shall apply to an employer with respect to a plan only if—
(1) the plan is amended to provide that subsection (a) applies;
(2) the plan provides, or is amended to provide, that the reduction under [section 411(a)(3)(E) of title 26](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section411/a/3/E&num=0&edition=prelim) applies with respect to the employees of the employer; and
(3) the ratio of the assets of the plan for the plan year preceding the first plan year for which the employer was required to contribute to the plan to the benefit payments made during that plan year was at least 8 to 1.
Source: Supplied U.S. Code snapshot — release unconfirmed · 29 U.S.C. § 1390
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Stable record: federal_law:legal_authorities:record_usc_643858e89837739327c6eb41
Source file: Laws/federal/codes/united-states-code/title-29/section-1390-nonapplicability-of-withdrawal-liability-for-certain-temporary-contribut--c2aef01e4b.md
Pages: Not recorded – Not recorded
Passage SHA-256: 43e034cfa660e8613f1836ac37c76143426a4e3f85c2a87ea11a455e44c7e7b2
Source location: Title 29, Chapter 18, § 1390; chapter-018-employee-retirement-income-security-program.md
Stored source content
**(a)** An employer who withdraws from a plan in complete or partial withdrawal is not liable to the plan if the employer—
(1) first had an obligation to contribute to the plan after September 26, 1980,
(2) had an obligation to contribute to the plan for no more than the lesser of—
(A) 6 consecutive plan years preceding the date on which the employer withdraws, or
(B) the number of years required for vesting under the plan,
(3) was required to make contributions to the plan for each such plan year in an amount equal to less than 2 percent of the sum of all employer contributions made to the plan for each such year, and
(4) has never avoided withdrawal liability because of the application of this section with respect to the plan.
**(b)** Subsection (a) shall apply to an employer with respect to a plan only if—
(1) the plan is amended to provide that subsection (a) applies;
(2) the plan provides, or is amended to provide, that the reduction under [section 411(a)(3)(E) of title 26](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section411/a/3/E&num=0&edition=prelim) applies with respect to the employees of the employer; and
(3) the ratio of the assets of the plan for the plan year preceding the first plan year for which the employer was required to contribute to the plan to the benefit payments made during that plan year was at least 8 to 1.
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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
For purposes of this subchapter:
(1) The terms “employee welfare benefit plan” and “welfare plan” mean any plan, fund, or program which was heretofore or is hereafter established or maintained by an employer or by an employee organization, or by both, to the extent that such plan, fund, or program was established or is maintained for the purpose of providing for its participants or their beneficiaries, through the purchase of insurance or otherwise, (A) medical, surgical, or hospital care or benefits, or benefits in the event of sickness, accident, disability, death or unemployment, or vacation benefits, apprenticeship or other training programs, or day care centers, scholarship funds, or prepaid legal services, or (B) any benefit described in [section 186(c) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section186/c&num=0&edition=prelim) (other than pensions on retirement or death, and insurance to provide such pensions).
(2)
(A) Except as provided in subparagraph (B), the terms “employee pension benefit plan” and “pension plan” mean any plan, fund, or program which was heretofore or is hereafter established or maintained by an employer or by an employee organization, or by both, to the extent that by its express terms or as a result of surrounding circumstances such plan, fund, or program—
(i) provides retirement income to employees, or
(ii) results in a deferral of income by employees for periods extending to the termination of covered employment or beyond,
regardless of the method of calculating the contributions made to the plan, the method of calculating the benefits under the plan or the method of distributing benefits from the plan. A distribution from a plan, fund, or program shall not be treated as made
Source: Supplied U.S. Code snapshot — release unconfirmed · 29 U.S.C. § 1002
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
Page 706
TITLE 29—LABOR
§ 1390
ed benefits allocable under section 1391 of this
title to an employer who withdraws from a plan
shall be reduced by the smaller of—
(1) 3⁄4 of 1 percent of the plan’s unfunded
vested obligations (determined as of the end of
the plan year ending before the date of with-
drawal), or
(2) $50,000,
reduced by the amount, if any, by which the un-
funded vested benefits allowable to the em-
ployer, determined without regard to this sub-
section, exceeds $100,000.
(b) Amendment of plan for reduction of amount
of unfunded vested benefits allocable to em-
ployer withdrawn from plan
A plan may be amended to provide for the re-
duction of the amount determined under section
1391 of this title by not more than the greater
of—
(1) the amount determined under subsection
(a), or
(2) the lesser of—
(A) the amount determined under sub-
section (a)(1), or
(B) $100,000,
reduced by the amount, if any, by which the
amount determined under section 1391 of this
title for the employer, determined without re-
gard 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 em-
ployers withdraw from the plan during a pe-
riod 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 deter-
mine or collect withdrawal liability
In any action or proceeding to determine or
collect withdrawal liability, if substantially all
employers have withdrawn f
Source: Supplied 2024 U.S. Code historical extraction · 29 U.S.C. § 1390
Stored review status: historical_2024_not_currentness_verified. Same stored citation; legal effect and authority still require review.