29 U.S.C. § 1364 — Liability on termination of single-em-

Page 692 TITLE 29—LABOR § 1364 (B) treat any escrowed payments under this section as if they were plan assets and apply them in a manner consistent with this sub- title; and (C) refund any amount to the contributing sponsor which is not required to meet any ob- ligation of the corporation with respect to the plan. (d) Alternate appropriate procedure The provisions of this subsection apply in the case of a withdrawal described in subsection (a), and the provisions of subsections (b) and (c) shall not apply, if the corporation determines that the procedure provided for under this sub- section is consistent with the purposes of this section and section 1364 of this title and is more appropriate in the particular case. Upon a show- ing by the plan administrator of the plan that the withdrawal from the plan by one or more contributing sponsors has resulted, or will re- sult, in a significant reduction in the amount of aggregate contributions to or under the plan, the corporation may— (1) require the plan fund to be equitably allo- cated between those participants no longer working in covered service under the plan as a result of the withdrawal, and those partici- pants who remain in covered service under the plan; (2) treat that portion of the plan funds allo- cable under paragraph (1) to participants no longer in covered service as a plan terminated under section 1342 of this title; and (3) treat that portion of the plan fund allo- cable to participants remaining in covered service as a separate plan. (e) Indemnity agreement The corporation is authorized to waive the ap- plication of the provisions of subsections (b), (c), and (d) of this section whenever it determines that there is an indemnity agreement in effect among contributing sponsors under the plan which is adequate to satisfy the purposes of this section and of section 1364 of this title. (Pub. L. 93–406, title IV, § 4063, Sept. 2, 1974, 88 Stat. 1030; Pub. L. 96–364, title IV, § 403(h), Sept. 26, 1980, 94 Stat. 1301; Pub. L. 99–272, title XI, § 11016(a)(5)(A), Apr. 7, 1986, 100 Stat. 268.) Editorial Notes CODIFICATION In subsec. (c)(1), ‘‘sections 9304–9308 of title 31’’ sub- stituted for ‘‘sections 6 through 13 of title 6, United States Code’’ on authority of Pub. L. 97–258, § 4(b), Sept. 13, 1982, 96 Stat. 1067, the first section of which enacted Title 31, Money and Finance. AMENDMENTS 1986—Pub. L. 99–272, § 11016(a)(5)(A)(vi), inserted ‘‘from single-employer plans under multiple controlled groups’’ in section catchline. Subsec. (a). Pub. L. 99–272, § 11016(a)(5)(A)(i), in intro- ductory par., substituted ‘‘single-employer plan which has two or more contributing sponsors at least two of whom are not under common control’’ for ‘‘plan under which more than one employer makes contributions (other than a multiemployer plan)’’, in par. (1), sub- stituted ‘‘withdrawal during a plan year of a substan- tial employer for such plan year’’ for ‘‘withdrawal of a substantial employer’’, in par. (2), substituted ‘‘of all persons with respect to the withdrawal of the substan- tial employer’’ for ‘‘of such employer under this sub- title with respect to such withdrawal’’, and in con- cluding provision substituted ‘‘whether there is liabil- ity resulting from the withdrawal of the substantial employer’’ for ‘‘whether such employer is liable for any amount under this subtitle with respect to the with- drawal’’ and ‘‘notify the liable persons’’ for ‘‘notify such employer’’. Subsec. (b). Pub. L. 99–272, § 11016(a)(5)(A)(ii), in intro- ductory par., substituted ‘‘any one or more contrib- uting sponsors who withdraw, during a plan year for which they constitute a substantial employer, from a single-employer plan which has two or more contrib- uting sponsors at least two of whom are not under com- mon control, shall, upon notification of such contrib- uting sponsors by the corporation as provided by sub- section (a), be liable, together with the members of their controlled groups,’’ for ‘‘an employer who with- draws from a plan to which section 1321 of this title ap- plies, during a plan year for which he was a substantial employer, and who is notified by the corporation as provided by subsection (a), shall be liable’’, ‘‘amount of liability’’ for ‘‘amount of such employer’s liability’’, and ‘‘the withdrawal referred to in subsection (a)(1)’’ for ‘‘the employer’s withdrawal’’, in par. (1), sub- stituted ‘‘such contributing sponsors’’ for ‘‘such em- ployer’’, in par. (2), substituted ‘‘all contributing spon- sors’’ for ‘‘all employers’’, and in concluding provision substituted ‘‘such liability’’ for ‘‘the liability of each such employer’’. Subsec. (c)(1). Pub. L. 99–272, § 11016(a)(5)(A)(iii)(I), substituted ‘‘of a contributing sponsor’s liability under this section, the contributing sponsor’’ for ‘‘of his li- ability under this section the employer’’. Subsec. (c)(2). Pub. L. 99–272, § 11016(a)(5)(A)(iii)(II), inserted ‘‘under section 1341(c) or 1342 of this title’’ and substituted ‘‘liability is’’ for ‘‘liability of such em- ployer is’’ and ‘‘(or the bond cancelled)’’ for ‘‘to the em- ployer (or his bond cancelled)’’. Subsec. (c)(3). Pub. L. 99–272, § 11016(a)(5)(A)(iii)(III), in introductory par., inserted ‘‘under section 1341(c) or 1342 of this title’’ and, in subpar. (C), substituted ‘‘con- tributing sponsor’’ for ‘‘employer’’. Subsec. (d). Pub. L. 99–272, § 11016(a)(5)(A)(iv), in intro- ductory par., substituted ‘‘of the plan that the with- drawal from the plan by one or more contributing spon- sors’’ for ‘‘of a plan (other than a multiemployer plan) that the withdrawal from the plan by any employer or employers’’ and struck out ‘‘by employers’’ after ‘‘con- tributions to or under the plan’’, in par. (1), substituted ‘‘the withdrawal’’ for ‘‘their employer’s withdrawal’’, and in par. (2), substituted ‘‘plan terminated under sec- tion 1342 of this title’’ for ‘‘termination’’. Subsec. (e). Pub. L. 99–272, § 11016(a)(5)(A)(v), struck out ‘‘to any employer or plan administrator’’ before ‘‘whenever it determines’’ and substituted ‘‘contrib- uting sponsors’’ for ‘‘all other employers’’. 1980—Subsecs. (a), (d). Pub. L. 96–364 inserted provi- sions excepting a multiemployer plan. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1986 AMENDMENT Amendment by Pub. L. 99–272 effective Jan. 1, 1986, with certain exceptions, see section 11019 of Pub. L. 99–272, set out as a note under section 1341 of this title. EFFECTIVE DATE OF 1980 AMENDMENT Amendment by Pub. L. 96–364 effective Sept. 26, 1980, except as specifically provided, see section 1461(e) of this title. § 1364. Liability on termination of single-em- ployer plans under multiple controlled groups (a) This section applies to all contributing sponsors of a single-employer plan which has Page 693 TITLE 29—LABOR § 1365 two or more contributing sponsors at least two of whom are not under common control at the time such plan is terminated under section 1341(c) or 1342 of this title, or who, at any time within the 5 plan years preceding the date of termination, made contributions under the plan. (b) The corporation shall determine the liabil- ity with respect to each contributing sponsor and each member of its controlled group in a manner consistent with section 1362 of this title, except that the amount of liability determined under section 1362(b)(1) of this title with respect to the entire plan shall be allocated to each con- trolled group by multiplying such amount by a fraction— (1) the numerator of which is the amount re- quired to be contributed to the plan for the last 5 plan years ending prior to the termi- nation date by persons in such controlled group as contributing sponsors, and (2) the denominator of which is the total amount required to be contributed to the plan for such last 5 plan years by all persons as con- tributing sponsors, and section 1368(a) of this title shall be applied separately with respect to each controlled group. The corporation may also determine the liability of each such contributing sponsor and member of its controlled group on any other eq- uitable basis prescribed by the corporation in regulations. (Pub. L. 93–406, title IV, § 4064, Sept. 2, 1974, 88 Stat. 1031; Pub. L. 96–364, title IV, § 403(i), Sept. 26, 1980, 94 Stat. 1301; Pub. L. 99–272, title XI, § 11016(a)(5)(B), Apr. 7, 1986, 100 Stat. 270; Pub. L. 100–203, title IX, § 9312(b)(2)(C)(i), Dec. 22, 1987, 101 Stat. 1330–361; Pub. L. 101–239, title VII, § 7881(f)(3)(A), Dec. 19, 1989, 103 Stat. 2440.) Editorial Notes AMENDMENTS 1989—Subsec. (b). Pub. L. 101–239 substituted ‘‘section 1368(a)’’ for ‘‘clauses (i)(II) and (ii) of section 1362(b)(1)(A)’’. 1987—Subsec. (b). Pub. L. 100–203 amended first sen- tence generally. Prior to amendment, first sentence read as follows: ‘‘The corporation shall determine the liability with respect to each contributing sponsor and each member of its controlled group in a manner con- sistent with section 1362 of this title, except that— ‘‘(1) the amount of the liability determined under section 1362(b)(1) of this title with respect to the en- tire plan— ‘‘(A) shall be determined without regard to clauses (i)(II) and (ii) of section 1362(b)(1)(A) of this title, and ‘‘(B) shall be allocated to each controlled group by multiplying such amount by a fraction— ‘‘(i) the numerator of which is the amount re- quired to be contributed to the plan for the last 5 plan years ending prior to the termination date by persons in such controlled group as contrib- uting sponsors, and ‘‘(ii) the denominator of which is the total amount required to be contributed to the plan for such last 5 plan years by all persons as contrib- uting sponsors, and clauses (i)(II) and (ii) of section 1362(b)(1)(A) of this title shall be applied separately with respect to each such controlled group, and ‘‘(2) the amount of the liability determined under section 1362(c)(1) of this title with respect to the en- tire plan shall be allocated to each controlled group by multiplying such amount by the fraction described in paragraph (1)(B) in connection with such con- trolled group.’’ 1986—Pub. L. 99–272, § 11016(a)(5)(B)(iii), substituted ‘‘on termination of single-employer plans under mul- tiple controlled groups’’ for ‘‘of employers on termi- nation of plan maintained by more than one employer’’ in section catchline. Subsec. (a). Pub. L. 99–272, § 11016(a)(5)(B)(i), sub- stituted ‘‘all contributing sponsors of a single-em- ployer plan which has two or more contributing spon- sors at least two of whom are not under common con- trol’’ for ‘‘all employers who maintain a plan under which more than one employer makes contributions (other than a multiemployer plan)’’ and inserted ‘‘under section 1341(c) or 1342 of this title’’ after ‘‘ter- minated’’. Subsec. (b). Pub. L. 99–272, § 11016(a)(5)(B)(ii), amended subsec. (b) generally, substituting reference to each contributing sponsor and each member of its controlled group for reference to each employer of a plan main- tained by more than one employer and inserted provi- sions that liability determined under section 1362(b)(1) of this title with respect to the entire plan be deter- mined without regard to cls. (i)(II) and (ii) of section 1362(b)(1)(A) of this title and that the amount of liabil- ity determined under section 1362(c)(1) of this title with respect to the entire plan be allocated to each con- trolled group by multiplying such amount by the frac- tion described in par. (1)(B) in connection with such controlled group. 1980—Subsec. (a). Pub. L. 96–364 inserted provisions excepting a multiemployer plan. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1989 AMENDMENT Amendment by Pub. L. 101–239 effective, except as otherwise provided, as if included in the provision of the Pension Protection Act, Pub. L. 100–203, §§ 9302–9346, to which such amendment relates, see section 7882 of Pub. L. 101–239, set out as a note under section 401 of Title 26, Internal Revenue Code. EFFECTIVE DATE OF 1987 AMENDMENT Amendment by Pub. L. 100–203 applicable with re- spect to plan terminations under section 1341 of this title with respect to which notices of intent to termi- nate are provided under section 1341(a)(2) of this title after Dec. 17, 1987, and plan terminations with respect to which proceedings are instituted by the Pension Benefit Guaranty Corporation under section 1342 of this title after that date, see section 9312(d)(1) of Pub. L. 100–203, as amended, set out as a note under section 1301 of this title. EFFECTIVE DATE OF 1986 AMENDMENT Amendment by Pub. L. 99–272 effective Jan. 1, 1986, with certain exceptions, see section 11019 of Pub. L. 99–272, set out as a note under section 1341 of this title. EFFECTIVE DATE OF 1980 AMENDMENT Amendment by Pub. L. 96–364 effective Sept. 26, 1980, except as specifically provided, see section 1461(e) of this title. § 1365. Annual report of plan administrator For each plan year for which section 1321 of this title applies to a plan, the plan adminis- trator shall file with the corporation, on a form prescribed by the corporation, an annual report which identifies the plan and plan administrator and which includes— (1) a copy of each notification required under section 1363 of this title with respect to such year,