29 U.S.C. § 1307 — Payment of premiums

Page 650 TITLE 29—LABOR § 1307 § 1307. Payment of premiums (a) Premiums payable when due; accrual; waiver or reduction The designated payor of each plan shall pay the premiums imposed by the corporation under this subchapter with respect to that plan when they are due. Premiums under this subchapter are payable at the time, and on an estimated, advance, or other basis, as determined by the corporation. Premiums imposed by this sub- chapter on September 2, 1974 (applicable to that portion of any plan year during which such date occurs) are due within 30 days after such date. Premiums imposed by this subchapter on the first plan year commencing after September 2, 1974, are due within 30 days after such plan year commences. Premiums shall continue to accrue until a plan’s assets are distributed pursuant to a termination procedure, or until a trustee is appointed pursuant to section 1342 of this title, whichever is earlier. The corporation may waive or reduce premiums for a multiemployer plan for any plan year during which such plan re- ceives financial assistance from the corporation under section 1431 of this title, except that any amount so waived or reduced shall be treated as financial assistance under such section. (b) Late payment charge; waiver; interest on overpayment (1) If any basic benefit premium is not paid when it is due the corporation is authorized to assess a late payment charge of not more than 100 percent of the premium payment which was not timely paid. The preceding sentence shall not apply to any payment of premium made within 60 days after the date on which payment is due, if before such date, the designated payor obtains a waiver from the corporation based upon a showing of substantial hardship arising from the timely payment of the premium. The corporation is authorized to grant a waiver under this subsection upon application made by the designated payor, but the corporation may not grant a waiver if it appears that the des- ignated payor will be unable to pay the premium within 60 days after the date on which it is due. If any premium is not paid by the last date pre- scribed for a payment, interest on the amount of such premium at the rate imposed under section 6601(a) of title 26 (relating to interest on under- payment, nonpayment, or extensions of time for payment of tax) shall be paid for the period from such last date to the date paid. (2) The corporation is authorized to pay, sub- ject to regulations prescribed by the corpora- tion, interest on the amount of any overpay- ment of premium refunded to a designated payor. Interest under this paragraph shall be calculated at the same rate and in the same manner as interest is calculated for underpay- ments under paragraph (1). (c) Civil action to recover premium penalty and interest If any designated payor fails to pay a premium when due, the corporation is authorized to bring a civil action in any district court of the United States within the jurisdiction of which the plan assets are located, the plan is administered, or in which a defendant resides or is found for the recovery of the amount of the premium penalty, and interest, and process may be served in any other district. The district courts of the United States shall have jurisdiction over actions brought under this subsection by the corpora- tion without regard to the amount in con- troversy. (d) Basic benefits guarantee not stopped by des- ignated payor’s failure to pay premiums when due The corporation shall not cease to guarantee basic benefits on account of the failure of a des- ignated payor to pay any premium when due. (e) Designated payor (1) For purposes of this section, the term ‘‘des- ignated payor’’ means— (A) the contributing sponsor or plan admin- istrator in the case of a single-employer plan, and (B) the plan administrator in the case of a multiemployer plan. (2) If the contributing sponsor of any single- employer plan is a member of a controlled group, each member of such group shall be joint- ly and severally liable for any premiums re- quired to be paid by such contributing sponsor. For purposes of the preceding sentence, the term ‘‘controlled group’’ means any group treated as a single employer under subsection (b), (c), (m), or (o) of section 414 of title 26. (Pub. L. 93–406, title IV, § 4007, Sept. 2, 1974, 88 Stat. 1013; Pub. L. 96–364, title IV, §§ 402(a)(3), 403(b), Sept. 26, 1980, 94 Stat. 1298, 1300; Pub. L. 100–203, title IX, § 9331(c), Dec. 22, 1987, 101 Stat. 1330–368; Pub. L. 101–239, title VII, § 7891(a)(1), Dec. 19, 1989, 103 Stat. 2445; Pub. L. 109–280, title IV, § 406(a), Aug. 17, 2006, 120 Stat. 929.) Editorial Notes AMENDMENTS 2006—Subsec. (b). Pub. L. 109–280 designated existing provisions as par. (1) and added par. (2). 1989—Subsec. (b). Pub. L. 101–239 substituted ‘‘Inter- nal Revenue Code of 1986’’ for ‘‘Internal Revenue Code of 1954’’, which for purposes of codification was trans- lated as ‘‘title 26’’ thus requiring no change in text. 1987—Subsecs. (a) to (d). Pub. L. 100–203, § 9331(c)(1), substituted ‘‘designated payor’’ for ‘‘plan adminis- trator’’ wherever appearing. Subsec. (e). Pub. L. 100–203, § 9331(c)(2), added subsec. (e). 1980—Subsec. (a). Pub. L. 96–364 inserted provisions relating to waiver or reduction of premiums, and struck out provisions relating to payment of premiums under statutory requirements respecting contingent li- ability coverage. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2006 AMENDMENT Pub. L. 109–280, title IV, § 406(b), Aug. 17, 2006, 120 Stat. 929, provided that: ‘‘The amendments made by subsection (a) [amending this section] shall apply to in- terest accruing for periods beginning not earlier than the date of the enactment of this Act [Aug. 17, 2006].’’ EFFECTIVE DATE OF 1989 AMENDMENT Amendment by Pub. L. 101–239 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which Page 651 TITLE 29—LABOR § 1310 such amendment relates, see section 7891(f) of Pub. L. 101–239, set out as a note under section 1002 of this title. EFFECTIVE DATE OF 1987 AMENDMENT Amendment by Pub. L. 100–203 applicable to plan years beginning after Dec. 31, 1987, see section 9331(f)(1) of Pub. L. 100–203, set out as a note under section 1305 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. PENSION PAYMENT ACCELERATION Pub. L. 114–74, title V, § 502, Nov. 2, 2015, 129 Stat. 593, provided that: ‘‘Notwithstanding section 4007(a) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1307(a)) and section 4007.11 of title 29, Code of Federal Regulations, for plan years commencing after December 31, 2024, and before January 1, 2026, the pre- mium due date for such plan years shall be the fif- teenth day of the ninth calendar month that begins on or after the first day of the premium payment year.’’ § 1308. Annual report by the corporation (a) As soon as practicable after the close of each fiscal year the corporation shall transmit to the President and the Congress a report rel- ative to the conduct of its business under this subchapter for that fiscal year. The report shall include financial statements setting forth the fi- nances of the corporation at the end of such fis- cal year and the result of its operations (includ- ing the source and application of its funds) for the fiscal year and shall include an actuarial evaluation of the expected operations and status of the funds established under section 1305 of this title for the next five years (including a de- tailed statement of the actuarial assumptions and methods used in making such evaluation). (b) The report under subsection (a) shall in- clude— (1) a summary of the Pension Insurance Modeling System microsimulation model, in- cluding the specific simulation parameters, specific initial values, temporal parameters, and policy parameters used to calculate the fi- nancial statements for the corporation; (2) a comparison of— (A) the average return on investments earned with respect to assets invested by the corporation for the year to which the report relates; and (B) an amount equal to 60 percent of the average return on investment for such year in the Standard & Poor’s 500 Index, plus 40 percent of the average return on investment for such year in the Lehman Aggregate Bond Index (or in a similar fixed income index); and (3) a statement regarding the deficit or sur- plus for such year that the corporation would have had if the corporation had earned the re- turn described in paragraph (2)(B) with respect to assets invested by the corporation. (Pub. L. 93–406, title IV, § 4008, Sept. 2, 1974, 88 Stat. 1014; Pub. L. 109–280, title IV, § 412, Aug. 17, 2006, 120 Stat. 936.) Editorial Notes AMENDMENTS 2006—Pub. L. 109–280 designated existing provisions as subsec. (a) and added subsec. (b). § 1309. Portability assistance The corporation shall provide advice and as- sistance to individuals with respect to evalu- ating the economic desirability of establishing individual retirement accounts or other forms of individual retirement savings for which a deduc- tion is allowable under section 219 of title 26 and with respect to evaluating the desirability, in particular cases, of transferring amounts rep- resenting an employee’s interest in a qualified plan to such an account upon the employee’s separation from service with an employer. (Pub. L. 93–406, title IV, § 4009, Sept. 2, 1974, 88 Stat. 1014; Pub. L. 101–239, title VII, § 7891(a)(1), Dec. 19, 1989, 103 Stat. 2445.) Editorial Notes AMENDMENTS 1989—Pub. L. 101–239 substituted ‘‘Internal Revenue Code of 1986’’ for ‘‘Internal Revenue Code of 1954’’, which for purposes of codification was translated as ‘‘title 26’’ thus requiring no change in text. 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 Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 7891(f) of Pub. L. 101–239, set out as a note under section 1002 of this title. § 1310. Authority to require certain information (a) Information required Each person described in subsection (b) shall provide the corporation annually, on or before a date specified by the corporation in regulations, with— (1) such records, documents, or other infor- mation that the corporation specifies in regu- lations as necessary to determine the liabil- ities and assets of plans covered by this sub- chapter; and (2) copies of such person’s audited (or, if un- available, unaudited) financial statements, and such other financial information as the corporation may prescribe in regulations. (b) Persons required to provide information The persons covered by subsection (a) are each contributing sponsor, and each member of a con- tributing sponsor’s controlled group, of a single- employer plan covered by this subchapter, if— (1) the funding target attainment percentage (as defined in subsection (d)) at the end of the preceding plan year of a plan maintained by the contributing sponsor or any member of its controlled group is less than 80 percent; (2) the conditions for imposition of a lien de- scribed in section 1083(k)(1)(A) and (B) or 1085a(g)(1)(A) and (B) of this title or section 430(k)(1)(A) and (B) or 433(g)(1)(A) and (B) of title 26 have been met with respect to any plan maintained by the contributing sponsor or any member of its controlled group; or