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29 U.S.C. § 1388 — Reduction of partial withdrawal liability
Federal law — U.S. Code and appendices · legal_authorities
**(a) Obligation of employer for payments for partial withdrawal for plan years beginning after the second consecutive plan year following the partial withdrawal year; criteria applicable; furnishing of bond in lieu of payment of partial withdrawal liability**
(1) If, for any 2 consecutive plan years following the plan year in which an employer has partially withdrawn from a plan under [section 1385(a)(1) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1385/a/1&num=0&edition=prelim) (referred to elsewhere in this section as the “partial withdrawal year”), the number of contribution base units with respect to which the employer has an obligation to contribute under the plan for each such year is not less than 90 percent of the total number of contribution base units with respect to which the employer had an obligation to contribute under the plan for the high base year (within the meaning of [section 1385(b)(1)(B)(ii) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1385/b/1/B/ii&num=0&edition=prelim)), then the employer shall have no obligation to make payments with respect to such partial withdrawal (other than delinquent payments) for plan years beginning after the second consecutive plan year following the partial withdrawal year.
(2)
(A) For any plan year for which the number of contribution base units with respect to which an employer who has partially withdrawn under [section 1385(a)(1) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1385/a/1&num=0&edition=prelim) has an obligation to contribute under the plan equals or exceeds the number of units for the highest year determined under paragraph (1) without regard to “90 percent of”,
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Stable record: federal_law:legal_authorities:record_usc_d1477a69291e54a1615d731b
Source file: Laws/federal/codes/united-states-code/title-29/section-1388-reduction-of-partial-withdrawal-liability--2ae476d9ac.md
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Passage SHA-256: f15a8ae173e2aaa02b80bb29b0d5e9b4468678c9641e35109199a748786bdc12
Source location: Title 29, Chapter 18, § 1388; chapter-018-employee-retirement-income-security-program.md
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**(a) Obligation of employer for payments for partial withdrawal for plan years beginning after the second consecutive plan year following the partial withdrawal year; criteria applicable; furnishing of bond in lieu of payment of partial withdrawal liability**
(1) If, for any 2 consecutive plan years following the plan year in which an employer has partially withdrawn from a plan under [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) (referred to elsewhere in this section as the “partial withdrawal year”), the number of contribution base units with respect to which the employer has an obligation to contribute under the plan for each such year is not less than 90 percent of the total number of contribution base units with respect to which the employer had an obligation to contribute under the plan for the high base year (within the meaning of [section 1385(b)(1)(B)(ii) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1385/b/1/B/ii&num=0&edition=prelim)), then the employer shall have no obligation to make payments with respect to such partial withdrawal (other than delinquent payments) for plan years beginning after the second consecutive plan year following the partial withdrawal year.
(2)
(A) For any plan year for which the number of contribution base units with respect to which an employer who has partially withdrawn under [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) has an obligation to contribute under the plan equals or exceeds the number of units for the highest year determined under paragraph (1) without regard to “90 percent of”, the employer may furnish (in lieu of payment of the partial withdrawal liability determined under [section 1386 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1386&num=0&edition=prelim)) a bond to the plan in the amount determined by the plan sponsor (not exceeding 50 percent of the annual payment otherwise required).
(B) If the plan sponsor determines under paragraph (1) that the employer has no further liability to the plan for the partial withdrawal, then the bond shall be cancelled.
(C) If the plan sponsor determines under paragraph (1) that the employer continues to have liability 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 partial 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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1385/a/1&num=0&edition=prelim), 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 contribution base units with respect to which the employer had an obligation to contribute for the high base year (within the meaning of [section 1385(b)(1)(B)(ii) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1385/b/1/B/ii&num=0&edition=prelim),11 So in original. Probably should be “title),”. 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 contribution 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 to such partial withdrawal (other than delinquent payments) for plan years beginning after the second such consecutive plan year.
**(c) Pro rata reduction of amount of partial withdrawal liability payment of employer for plan year following partial withdrawal year** In any case in which, in any plan year following a partial withdrawal under [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), the number of contribution base units with respect to which the employer has an obligation to contribute for such year equals or exceeds 110 percent (or such other percentage as the plan may provide by amendment and which is not prohibited under regulations prescribed by the corporation) of the number of contribution base units with respect to which the employer had an obligation to contribute in the partial withdrawal year, then the amount of the employer’s partial withdrawal liability payment for such year shall be reduced pro rata, in accordance with regulations prescribed by the corporation.
**(d) Building and construction industry; entertainment industry**
(1) An employer to whom section 1383(b) 22 See References in Text note below. of this title (relating to the building and construction industry) applies is liable for a partial withdrawal only if the employer’s obligation to contribute under the plan is continued for no more than an insubstantial portion of its work in the craft and area jurisdiction of the collective bargaining agreement of the type for which contributions are required.
(2) An employer to whom section 1383(c) 2 of this title (relating to the entertainment industry) applies shall have no liability for a partial withdrawal except under the conditions and to the extent prescribed by the corporation by regulation.
**(e) Reduction or elimination of partial withdrawal liability under any conditions; criteria; procedures applicable**
(1) The corporation may prescribe regulations providing for the reduction or elimination of partial withdrawal liability under any conditions with respect to which the corporation determines that reduction or elimination of partial withdrawal liability is consistent with the purposes of this chapter.
(2) Under such regulations, reduction of withdrawal liability shall be provided only with respect to subsequent changes in the employer’s contributions for the same operations, or under the same collective bargaining agreement, that gave rise to the partial withdrawal, and changes in the employer’s contribution base units with respect to other facilities or other collective bargaining agreements shall not be taken into account.
(3) The corporation shall prescribe by regulation a procedure by which a plan may by amendment adopt rules for the reduction or elimination of partial withdrawal liability under any other conditions, subject to the approval of the corporation based on its determination that adoption of such rules by the plan is consistent with the purposes of this chapter.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Determinative factors** For purposes of this part, a complete withdrawal from a multiemployer plan occurs when an employer—
(1) permanently ceases to have an obligation to contribute under the plan, or
(2) permanently ceases all covered operations under the plan.
**(b) Building and construction industry**
(1) Notwithstanding subsection (a), in the case of an employer that has an obligation to contribute under a plan for work performed in the building and construction industry, a complete withdrawal occurs only as described in paragraph (2), if—
(A) substantially all the employees with respect to whom the employer has an obligation to contribute under the plan perform work in the building and construction industry, and
(B) the plan—
(i) primarily covers employees in the building and construction industry, or
(ii) is amended to provide that this subsection applies to employers described in this paragraph.
(2) A withdrawal occurs under this paragraph if—
(A) an employer ceases to have an obligation to contribute under the plan, and
(B) the employer—
(i) continues to perform work in the jurisdiction of the collective bargaining agreement of the type for which contributions were previously required, or
(ii) resumes such work within 5 years after the date on which the obligation to contribute under the plan ceases, and does not renew the obligation at the time of the resumption.
(3) In the case of a plan terminated by mass withdrawal (within the meaning of [section 1341a(a)(2) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section1341a/a/2&num=0&edition=prelim)), paragraph (2) shall be applied by substituting “3 years” for “5 years” in subparagraph (B)(ii).
**(c) Entertainment industry**
(1) No
Source: Supplied U.S. Code snapshot — release unconfirmed · 29 U.S.C. § 1383
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
When an employer withdraws from a multiemployer plan, the plan sponsor, in accordance with this part, shall—
(1) determine the amount of the employer’s withdrawal liability,
(2) notify the employer of the amount of the withdrawal liability, and
(3) collect the amount of the withdrawal liability from the employer.
Source: Supplied U.S. Code snapshot — release unconfirmed · 29 U.S.C. § 1382
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)** 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) Determinative factors** Except as otherwise provided in this section, there is a partial withdrawal by an employer from a plan on the last day of a plan year if for such plan year—
(1) there is a 70-percent contribution decline, or
(2) there is a partial cessation of the employer’s contribution obligation.
**(b) Criteria applicable** For purposes of subsection (a)—
(1)
(A) There is a 70-percent contribution decline for any plan year if during each plan year in the 3-year testing period the employer’s contribution base units do not exceed 30 percent of the employer’s contribution base units for the high base year.
(B) For purposes of subparagraph (A)—
(i) The term “3-year testing period” means the period consisting of the plan year and the immediately preceding 2 plan years.
(ii) The number of contribution base units for the high base year is the average number of such units for the 2 plan years for which the employer’s contribution base units were the highest within the 5 plan years immediately preceding the beginning of the 3-year testing period.
(2)
(A) There is a partial cessation of the employer’s contribution obligation for the plan year if, during such year—
(i) the employer permanently ceases to have an obligation to contribute under one or more but fewer than all collective bargaining agreements under which the employer has been obligated to contribute under the plan but continues to perform work in the jurisdiction of the collective bargaining agreement of the type for which contributions were previously required or transfers such work to another location or to an entity or entities owned or controlled by the employer, or
(ii) an employer permanently ceases to have an obligation to contribute under the plan with respect t
Source: Supplied U.S. Code snapshot — release unconfirmed · 29 U.S.C. § 1385
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Federal law — U.S. Code and appendices · legal_authorities
Page 704
TITLE 29—LABOR
§ 1387
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, and adjusted under section 1389 of
this title 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 de-
scribed in section 1385(a)(1) of this title (re-
lating 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 employ-
er’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 aver-
age 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 oc-
curs, or
(ii) in the case of a partial withdrawal
described in section 1385(a)(1) of this title
(relating to 70-percent contribution de-
cline), the 5 plan years immediately pre-
ceding the beginning of the 3-year testing
period.
(b)(1) In the case of an employer that has with-
drawal liability for a partial withdrawal from a
plan, any withdrawal liability of that employer
for a partial or complete withdrawal from that
plan in a subsequent plan year shall be reduced
by the amount of any partial withdrawal liabil-
ity (reduced by any abatement or reduction of
such liability) of the employer with respect to
the plan for a previous plan year.
(2) The corporation shall prescribe such regu-
lations as may be necessary to provide for prop-
er adjustments in the reduction
Source: Supplied 2024 U.S. Code historical extraction · 29 U.S.C. § 1388
Stored review status: historical_2024_not_currentness_verified. Same stored citation; legal effect and authority still require review.