29 U.S.C. § 1342 — Institution of termination proceedings by

Page 672 TITLE 29—LABOR § 1342 ticipants will receive no credit for any purpose under the plan for service with any employer after the date specified by such amendment; (2) the withdrawal of every employer from the plan, within the meaning of section 1383 of this title, or the cessation of the obligation of all employers to contribute under the plan; or (3) the adoption of an amendment to the plan which causes the plan to become a plan described in section 1321(b)(1) of this title. (b) Date of termination (1) The date on which a plan terminates under paragraph (1) or (3) of subsection (a) is the later of— (A) the date on which the amendment is adopted, or (B) the date on which the amendment takes effect. (2) The date on which a plan terminates under paragraph (2) of subsection (a) is the earlier of— (A) the date on which the last employer withdraws, or (B) the first day of the first plan year for which no employer contributions were re- quired under the plan. (c) Duties of plan sponsor of amended plan Except as provided in subsection (f)(1), the plan sponsor of a plan which terminates under paragraph (2) of subsection (a) shall— (1) limit the payment of benefits to benefits which are nonforfeitable under the plan as of the date of the termination, and (2) pay benefits attributable to employer contributions, other than death benefits, only in the form of an annuity, unless the plan as- sets are distributed in full satisfaction of all nonforfeitable benefits under the plan. (d) Duties of plan sponsor of nonoperative plan The plan sponsor of a plan which terminates under paragraph (2) of subsection (a) shall re- duce benefits and suspend benefit payments in accordance with section 1441 of this title. (e) Amount of contribution of employer under amended plan for each plan year subsequent to plan termination date In the case of a plan which terminates under paragraph (1) or (3) of subsection (a), the rate of an employer’s contributions under the plan for each plan year beginning on or after the plan termination date shall equal or exceed the high- est rate of employer contributions at which the employer had an obligation to contribute under the plan in the 5 preceding plan years ending on or before the plan termination date, unless the corporation approves a reduction in the rate based on a finding that the plan is or soon will be fully funded. (f) Payment of benefits; reporting requirements for terminated plans and rules and standards for administration of such plans (1) The plan sponsor of a terminated plan may authorize the payment other than in the form of an annuity of a participant’s entire nonforfeit- able benefit attributable to employer contribu- tions, other than a death benefit, if the value of the entire nonforfeitable benefit does not exceed $1,750. The corporation may authorize the pay- ment of benefits under the terms of a termi- nated plan other than nonforfeitable benefits, or the payment other than in the form of an annu- ity of benefits having a value greater than $1,750, if the corporation determines that such payment is not adverse to the interest of the plan’s participants and beneficiaries generally and does not unreasonably increase the corpora- tion’s risk of loss with respect to the plan. (2) The corporation may prescribe reporting requirements for terminated plans, and rules and standards for the administration of such plans, which the corporation considers appro- priate to protect the interests of plan partici- pants and beneficiaries or to prevent unreason- able loss to the corporation. (Pub. L. 93–406, title IV, § 4041A, as added Pub. L. 96–364, title I, § 103, Sept. 26, 1980, 94 Stat. 1216.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective Sept. 26, 1980, except as specifically provided, see section 1461(e) of this title. § 1342. Institution of termination proceedings by the corporation (a) Authority to institute proceedings to termi- nate a plan The corporation may institute proceedings under this section to terminate a plan whenever it determines that— (1) the plan has not met the minimum fund- ing standard required under section 412 of title 26, or has been notified by the Secretary of the Treasury that a notice of deficiency under sec- tion 6212 of title 26 has been mailed with re- spect to the tax imposed under section 4971(a) of title 26, (2) the plan will be unable to pay benefits when due, (3) the reportable event described in section 1343(c)(7) of this title has occurred, or (4) the possible long-run loss of the corpora- tion with respect to the plan may reasonably be expected to increase unreasonably if the plan is not terminated. The corporation shall as soon as practicable in- stitute proceedings under this section to termi- nate a single-employer plan whenever the cor- poration determines that the plan does not have assets available to pay benefits which are cur- rently due under the terms of the plan. The cor- poration may prescribe a simplified procedure to follow in terminating small plans as long as that procedure includes substantial safeguards for the rights of the participants and bene- ficiaries under the plans, and for the employers who maintain such plans (including the require- ment for a court decree under subsection (c)). Notwithstanding any other provision of this sub- chapter, the corporation is authorized to pool assets of terminated plans for purposes of ad- ministration, investment, payment of liabilities of all such terminated plans, and such other pur- poses as it determines to be appropriate in the administration of this subchapter. (b) Appointment of trustee (1) Whenever the corporation makes a deter- mination under subsection (a) with respect to a Page 673 TITLE 29—LABOR § 1342 plan or is required under subsection (a) to insti- tute proceedings under this section, it may, upon notice to the plan, apply to the appropriate United States district court for the appointment of a trustee to administer the plan with respect to which the determination is made pending the issuance of a decree under subsection (c) order- ing the termination of the plan. If within 3 busi- ness days after the filing of an application under this subsection, or such other period as the court may order, the administrator of the plan consents to the appointment of a trustee, or fails to show why a trustee should not be ap- pointed, the court may grant the application and appoint a trustee to administer the plan in accordance with its terms until the corporation determines that the plan should be terminated or that termination is unnecessary. The cor- poration may request that it be appointed as trustee of a plan in any case. (2) Notwithstanding any other provision of this subchapter— (A) upon the petition of a plan administrator or the corporation, the appropriate United States district court may appoint a trustee in accordance with the provisions of this section if the interests of the plan participants would be better served by the appointment of the trustee, and (B) upon the petition of the corporation, the appropriate United States district court shall appoint a trustee proposed by the corporation for a multiemployer plan which is in reorga- nization or to which section 1341a(d) of this title applies, unless such appointment would be adverse to the interests of the plan partici- pants and beneficiaries in the aggregate. (3) The corporation and plan administrator may agree to the appointment of a trustee with- out proceeding in accordance with the require- ments of paragraphs (1) and (2). (c) Adjudication that plan must be terminated (1) If the corporation is required under sub- section (a) of this section to commence pro- ceedings under this section with respect to a plan or, after issuing a notice under this section to a plan administrator, has determined that the plan should be terminated, it may, upon notice to the plan administrator, apply to the appro- priate United States district court for a decree adjudicating that the plan must be terminated in order to protect the interests of the partici- pants or to avoid any unreasonable deteriora- tion of the financial condition of the plan or any unreasonable increase in the liability of the fund. If the trustee appointed under subsection (b) disagrees with the determination of the cor- poration under the preceding sentence he may intervene in the proceeding relating to the ap- plication for the decree, or make application for such decree himself. Upon granting a decree for which the corporation or trustee has applied under this subsection the court shall authorize the trustee appointed under subsection (b) (or appoint a trustee if one has not been appointed under such subsection and authorize him) to ter- minate the plan in accordance with the provi- sions of this subtitle. If the corporation and the plan administrator agree that a plan should be terminated and agree to the appointment of a trustee without proceeding in accordance with the requirements of this subsection (other than this sentence) the trustee shall have the power described in subsection (d)(1) and, in addition to any other duties imposed on the trustee under law or by agreement between the corporation and the plan administrator, the trustee is sub- ject to the duties described in subsection (d)(3). Whenever a trustee appointed under this sub- chapter is operating a plan with discretion as to the date upon which final distribution of the as- sets is to be commenced, the trustee shall notify the corporation at least 10 days before the date on which he proposes to commence such dis- tribution. (2) In the case of a proceeding initiated under this section, the plan administrator shall pro- vide the corporation, upon the request of the corporation, the information described in clauses (ii), (iii), and (iv) of section 1341(c)(2)(A) of this title. (3) DISCLOSURE OF TERMINATION INFORMATION.— (A) IN GENERAL.— (i) INFORMATION FROM PLAN SPONSOR OR AD- MINISTRATOR.—A plan sponsor or plan admin- istrator of a single-employer plan that has received a notice from the corporation of a determination that the plan should be ter- minated under this section shall provide to an affected party any information provided to the corporation in connection with the plan termination. (ii) INFORMATION FROM CORPORATION.—The corporation shall provide a copy of the ad- ministrative record, including the trustee- ship decision record of a termination of a plan described under clause (i). (B) TIMING OF DISCLOSURE.—The plan spon- sor, plan administrator, or the corporation, as applicable, shall provide the information de- scribed in subparagraph (A) not later than 15 days after— (i) receipt of a request from an affected party for such information; or (ii) in the case of information described under subparagraph (A)(i), the provision of any new information to the corporation re- lating to a previous request by an affected party. (C) CONFIDENTIALITY.— (i) IN GENERAL.—The plan administrator, the plan sponsor, or the corporation shall not provide information under subparagraph (A) in a form which includes any informa- tion that may directly or indirectly be asso- ciated with, or otherwise identify, an indi- vidual participant or beneficiary. (ii) LIMITATION.—A court may limit disclo- sure under this paragraph of confidential in- formation described in section 552(b) of title 5 to authorized representatives (within the meaning of section 1341(c)(2)(D)(iv) of this title) of the participants or beneficiaries that agree to ensure the confidentiality of such information. (D) FORM AND MANNER OF INFORMATION; CHARGES.— (i) FORM AND MANNER.—The corporation may prescribe the form and manner of the provision of information under this para- Page 674 TITLE 29—LABOR § 1342 1 So in original. Probably should be ‘‘subtitle E’’. 2 See References in Text note below. 3 So in original. graph, which shall include delivery in writ- ten, electronic, or other appropriate form to the extent that such form is reasonably ac- cessible to individuals to whom the informa- tion is required to be provided. (ii) REASONABLE CHARGES.—A plan sponsor may charge a reasonable fee for any infor- mation provided under this paragraph in other than electronic form. (d) Powers of trustee (1)(A) A trustee appointed under subsection (b) shall have the power— (i) to do any act authorized by the plan or this subchapter to be done by the plan admin- istrator or any trustee of the plan; (ii) to require the transfer of all (or any part) of the assets and records of the plan to himself as trustee; (iii) to invest any assets of the plan which he holds in accordance with the provisions of the plan, regulations of the corporation, and appli- cable rules of law; (iv) to limit payment of benefits under the plan to basic benefits or to continue payment of some or all of the benefits which were being paid prior to his appointment; (v) in the case of a multiemployer plan, to reduce benefits or suspend benefit payments under the plan, give appropriate notices, amend the plan, and perform other acts re- quired or authorized by subtitle (E) 1 to be per- formed by the plan sponsor or administrator; (vi) to do such other acts as he deems nec- essary to continue operation of the plan with- out increasing the potential liability of the corporation, if such acts may be done under the provisions of the plan; and (vii) to require the plan sponsor, the plan ad- ministrator, any contributing or withdrawn employer, and any employee organization rep- resenting plan participants to furnish any in- formation with respect to the plan which the trustee may reasonably need in order to ad- minister the plan. If the court to which application is made under subsection (c) dismisses the application with prejudice, or if the corporation fails to apply for a decree under subsection (c), within 30 days after the date on which the trustee is appointed under subsection (b), the trustee shall transfer all assets and records of the plan held by him to the plan administrator within 3 business days after such dismissal or the expiration of such 30- day period, and shall not be liable to the plan or any other person for his acts as trustee except for willful misconduct, or for conduct in viola- tion of the provisions of part 4 of subtitle B of subchapter I of this chapter (except as provided in subsection (d)(1)(A)(v)).2 The 30-day period re- ferred to in this subparagraph may be extended as provided by agreement between the plan ad- ministrator and the corporation or by court order obtained by the corporation. (B) If the court to which an application is made under subsection (c) issues the decree re- quested in such application, in addition to the powers described in subparagraph (A), the trust- ee shall have the power— (i) to pay benefits under the plan in accord- ance with the requirements of this subchapter; (ii) to collect for the plan any amounts due the plan, including but not limited to the power to collect from the persons obligated to meet the requirements of section 1082 of this title or the terms of the plan; (iii) to receive any payment made by the corporation to the plan under this subchapter; (iv) to commence, prosecute, or defend on behalf of the plan any suit or proceeding in- volving the plan; (v) to issue, publish, or file such notices, statements, and reports as may be required by the corporation or any order of the court; (vi) to liquidate the plan assets; (vii) to recover payments under section 1345(a) of this title; and (viii) to do such other acts as may be nec- essary to comply with this subchapter or any order of the court and to protect the interests of plan participants and beneficiaries. (2) As soon as practicable after his appoint- ment, the trustee shall give notice to interested parties of the institution of proceedings under this subchapter to determine whether the plan should be terminated or to terminate the plan, whichever is applicable. For purposes of this paragraph, the term ‘‘interested party’’ means— (A) the plan administrator, (B) each participant in the plan and each beneficiary of a deceased participant, (C) each employer who may be subject to li- ability under section 1362, 1363, or 1364 of this title, (D) each employer who is or may be liable to the plan under section 3 part 1 of subtitle E, (E) each employer who has an obligation to contribute, within the meaning of section 1392(a) of this title, under a multiemployer plan, and (F) each employee organization which, for purposes of collective bargaining, represents plan participants employed by an employer de- scribed in subparagraph (C), (D), or (E). (3) Except to the extent inconsistent with the provisions of this chapter, or as may be other- wise ordered by the court, a trustee appointed under this section shall be subject to the same duties as those of a trustee under section 704 of title 11, and shall be, with respect to the plan, a fiduciary within the meaning of paragraph (21) of section 1002 of this title and under section 4975(e) of title 26 (except to the extent that the provisions of this subchapter are inconsistent with the requirements applicable under part 4 of subtitle B of subchapter I of this chapter and of such section 4975). (e) Filing of application notwithstanding pend- ency of other proceedings An application by the corporation under this section may be filed notwithstanding the pend- ency in the same or any other court of any bankruptcy, mortgage foreclosure, or equity re- ceivership proceeding, or any proceeding to reor- ganize, conserve, or liquidate such plan or its property, or any proceeding to enforce a lien against property of the plan. Page 675 TITLE 29—LABOR § 1342 (f) Exclusive jurisdiction; stay of other pro- ceedings Upon the filing of an application for the ap- pointment of a trustee or the issuance of a de- cree under this section, the court to which an application is made shall have exclusive juris- diction of the plan involved and its property wherever located with the powers, to the extent consistent with the purposes of this section, of a court of the United States having jurisdiction over cases under chapter 11 of title 11. Pending an adjudication under subsection (c) such court shall stay, and upon appointment by it of a trustee, as provided in this section such court shall continue the stay of, any pending mort- gage foreclosure, equity receivership, or other proceeding to reorganize, conserve, or liquidate the plan or its property and any other suit against any receiver, conservator, or trustee of the plan or its property. Pending such adjudica- tion and upon the appointment by it of such trustee, the court may stay any proceeding to enforce a lien against property of the plan or any other suit against the plan. (g) Venue An action under this subsection may be brought in the judicial district where the plan administrator resides or does business or where any asset of the plan is situated. A district court in which such action is brought may issue proc- ess with respect to such action in any other ju- dicial district. (h) Compensation of trustee and professional service personnel appointed or retained by trustee (1) The amount of compensation paid to each trustee appointed under the provisions of this subchapter shall require the prior approval of the corporation, and, in the case of a trustee ap- pointed by a court, the consent of that court. (2) Trustees shall appoint, retain, and com- pensate accountants, actuaries, and other pro- fessional service personnel in accordance with regulations prescribed by the corporation. (Pub. L. 93–406, title IV, § 4042, Sept. 2, 1974, 88 Stat. 1021; Pub. L. 95–598, title III, § 321(a), Nov. 6, 1978, 92 Stat. 2678; Pub. L. 96–364, title IV, § 402(a)(6), Sept. 26, 1980, 94 Stat. 1298; Pub. L. 99–272, title XI, §§ 11010, 11016(c)(10), (11), Apr. 7, 1986, 100 Stat. 253, 274; Pub. L. 100–203, title IX, §§ 9312(c)(3), 9314(b), 9314(b), Dec. 22, 1987, 101 Stat. 1330–363, 1330–366, 1330–367; Pub. L. 101–239, title VII, §§ 7881(g)(7), 7891(a)(1), 7893(e), Dec. 19, 1989, 103 Stat. 2441, 2445, 2447; Pub. L. 103–465, title VII, § 771(e)(2), Dec. 8, 1994, 108 Stat. 5043; Pub. L. 109–280, title V, § 506(b), Aug. 17, 2006, 120 Stat. 947; Pub. L. 110–458, title I, § 105(e)(2), Dec. 23, 2008, 122 Stat. 5105.) Editorial Notes REFERENCES IN TEXT Subsection (d)(1)(A)(v), referred to in subsec. (d)(1)(A), was redesignated subsec. (d)(1)(A)(vi) of this section by Pub. L. 96–364, title IV, § 402(a)(6)(E)(ii), Sept. 26, 1980, 94 Stat. 1298. This chapter, referred to in subsec. (d)(3), was in the original ‘‘this Act’’, meaning Pub. L. 93–406, known as the Employee Retirement Income Security Act of 1974. Titles I, III, and IV of such Act are classified prin- cipally to this chapter. For complete classification of this Act to the Code, see Short Title note set out under section 1001 of this title and Tables. AMENDMENTS 2008—Subsec. (c)(3)(C)(i). Pub. L. 110–458 substituted ‘‘, the plan sponsor, or the corporation’’ for ‘‘and plan sponsor’’ and ‘‘subparagraph (A)’’ for ‘‘subparagraph (A)(i)’’. 2006—Subsec. (c). Pub. L. 109–280 designated first par. as par. (1), redesignated par. (3) as (2), and added a new par. (3). 1994—Subsec. (a)(3). Pub. L. 103–465 substituted ‘‘1343(c)(7)’’ for ‘‘1343(b)(7)’’. 1989—Subsec. (a). Pub. L. 101–239, § 7893(e), inserted pe- riod after ‘‘terms of the plan’’ at end of second sen- tence. Pub. L. 101–239, § 7881(g)(7), made technical correction to directory language of Pub. L. 100–203, § 9314(b), see 1987 Amendment note below. Subsecs. (a)(1), (d)(3). Pub. L. 101–239, § 7891(a)(1), sub- stituted ‘‘Internal Revenue Code of 1986’’ for ‘‘Internal Revenue Code of 1954’’, which for purposes of codifica- tion was translated as ‘‘title 26’’ thus requiring no change in text. 1987—Subsec. (a). Pub. L. 100–203, § 9314(b), as amended by Pub. L. 101–239, § 7881(g)(7), amended last sentence generally. Prior to amendment, last sentence read as follows: ‘‘The corporation is authorized to pool the as- sets of terminated plans for purposes of administration and such other purposes, not inconsistent with its du- ties to the plan participants and the employer main- taining the plan under this subchapter, as it deter- mines to be required for the efficient administration of this subchapter.’’ Another section 9314(b) of Pub. L. 100–203 amended subsec. (c) of this section, see below. Subsec. (c)(3). Pub. L. 100–203, § 9314(b), added par. (3). Another section 9314(b) of Pub. L. 100–203 amended sub- sec. (a) of this section, see above. Subsec. (i). Pub. L. 100–203, § 9312(c)(3), struck out sub- sec. (i) which read as follows: ‘‘In any case in which a plan is terminated under this section in a termination proceeding initiated by the corporation pursuant to subsection (a), the corporation shall establish a sepa- rate trust in connection with the plan for purposes of section 1349 of this title, unless the corporation deter- mines that all benefit commitments under the plan are benefits guaranteed by the corporation under section 1322 of this title or that there is no amount of unfunded benefit commitments under the plan.’’ 1986—Pub. L. 99–272, § 11010(c), substituted ‘‘Institu- tion of termination proceedings by the corporation’’ for ‘‘Termination by corporation’’ in section catchline. Subsec. (a). Pub. L. 99–272, § 11010(a)(1)(B), in provision following par. (4) inserted provision that the corpora- tion as soon as practicable institute proceedings under this section to terminate a single-employer plan when- ever the corporation determines that the plan does not have assets available to pay benefits currently due under the terms of the plan. Subsec. (a)(2). Pub. L. 99–272, § 11010(a)(1)(A), sub- stituted ‘‘will be’’ for ‘‘is’’. Subsec. (b)(1). Pub. L. 99–272, § 11010(a)(2)(A), inserted ‘‘or is required under subsection (a) to institute pro- ceedings under this section,’’. Subsec. (c). Pub. L. 99–272, § 11010(a)(2)(B), substituted ‘‘is required under subsection (a) of this section to com- mence proceedings under this section with respect to a plan or, after issuing a notice under this section to a plan administrator,’’ for ‘‘has issued a notice under this section to a plan administrator and (whether or not a trustee has been appointed under subsection (b))’’. Subsec. (d)(1)(B)(ii). Pub. L. 99–272, § 11016(c)(10), in- serted ‘‘, including but not limited to the power to col- lect from the persons obligated to meet the require- ments of section 1082 of this title or the terms of the plan’’. Subsec. (d)(3). Pub. L. 99–272, § 11016(c)(11), substituted ‘‘those of a trustee under section 704 of title 11’’ for ‘‘a trustee appointed under section 75 of title 11’’. Page 676 TITLE 29—LABOR § 1343 Subsec. (i). Pub. L. 99–272, § 11010(b), added subsec. (i). 1980—Subsec. (a). Pub. L. 96–364, § 402(a)(6)(A), sub- stituted ‘‘terminated plans’’ for ‘‘such small plans’’. Subsec. (b). Pub. L. 96–364, § 402(a)(6)(B), redesignated existing provisions as par. (1) and added pars. (2) and (3). Subsec. (c). Pub. L. 96–364, § 402(a)(6)(C), (D), sub- stituted ‘‘unreasonable’’ for ‘‘further’’ wherever appear- ing, and ‘‘of the participants or’’ for ‘‘of the partici- pants and’’. Subsec. (d)(1)(A). Pub. L. 96–364, § 402(a)(6)(E), added cls. (v) and (vii) and redesignated former cl. (v) as (vi). Subsec. (d)(1)(B). Pub. L. 96–364, § 402(a)(6)(F), (G), in cl. (i) substituted ‘‘requirements of this subchapter’’ for ‘‘allocation requirements of section 1344 of this title’’, and in cl. (iv) struck out exception respecting adverse party status of corporation. Subsec. (d)(2)(D) to (F). Pub. L. 96–364, § 402(a)(6)(H)–(J), added subpars. (D) to (F). 1978—Subsec. (f). Pub. L. 95–598 substituted ‘‘of a court of the United States having jurisdiction over cases under chapter 11 of title 11’’ for ‘‘of a court of bankruptcy and of a court in a proceeding under chap- ter X of the Bankruptcy Act’’ in first sentence and struck out ‘‘bankruptcy,’’ before ‘‘mortgage fore- closure’’ in second sentence. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2008 AMENDMENT Amendment by Pub. L. 110–458 effective as if included in the provisions of Pub. L. 109–280 to which the amend- ment relates, except as otherwise provided, see section 112 of Pub. L. 110–458, set out as a note under section 72 of Title 26, Internal Revenue Code. EFFECTIVE DATE OF 2006 AMENDMENT Amendment by Pub. L. 109–280 applicable to any plan termination under this subchapter with respect to which the notice of intent to terminate, or in the case of a termination by the Pension Benefit Guaranty Cor- poration, a notice of determination under this section occurs after Aug. 17, 2006, with transition rule, see sec- tion 506(c) of Pub. L. 109–280, set out as a note under section 1341 of this title. EFFECTIVE DATE OF 1994 AMENDMENT Pub. L. 103–465, title VII, § 771(f), Dec. 8, 1994, 108 Stat. 5043, provided that: ‘‘The amendments made by this section [amending this section and section 1343 of this title] shall be effective for events occurring 60 days or more after the date of enactment of this Act [Dec. 8, 1994].’’ EFFECTIVE DATE OF 1989 AMENDMENT Amendment by section 7881(g)(7) of Pub. L. 101–239 ef- fective, 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. Amendment by section 7891(a)(1) of Pub. L. 101–239 ef- fective, 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. Amendment by section 7893(e) of Pub. L. 101–239 effec- tive as if included in the provision of the Single-Em- ployer Pension Plan Amendments Act of 1986, Pub. L. 99–272, title XI, to which such amendment relates, see section 7893(h) of Pub. L. 101–239, set out as a note under section 1002 of this title. EFFECTIVE DATE OF 1987 AMENDMENT Amendment by section 9312(c)(3) of Pub. L. 100–203 ap- plicable with respect to plan terminations under sec- tion 1341 of this title with respect to which notices of intent to terminate are provided under section 1341(a)(2) of this title after Dec. 17, 1987, and plan termi- nations with respect to which proceedings are insti- tuted by the Pension Benefit Guaranty Corporation under this section 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. EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95–598 effective Oct. 1, 1979, see section 402(a) of Pub. L. 95–598, set out as an Effec- tive Date note preceding section 101 of Title 11, Bank- ruptcy. § 1343. Reportable events (a) Notification that event has occurred Within 30 days after the plan administrator or the contributing sponsor knows or has reason to know that a reportable event described in sub- section (c) has occurred, he shall notify the cor- poration that such event has occurred, unless a notice otherwise required under this subsection has already been provided with respect to such event. The corporation is authorized to waive the requirement of the preceding sentence with respect to any or all reportable events with re- spect to any plan, and to require the notifica- tion to be made by including the event in the annual report made by the plan. (b) Notification that event is about to occur (1) The requirements of this subsection shall be applicable to a contributing sponsor if, as of the close of the preceding plan year— (A) the aggregate unfunded vested benefits (as determined under section 1306(a)(3)(E)(iii) of this title) of plans subject to this sub- chapter which are maintained by such sponsor and members of such sponsor’s controlled groups (disregarding plans with no unfunded vested benefits) exceed $50,000,000, and (B) the funded vested benefit percentage for such plans is less than 90 percent. For purposes of subparagraph (B), the funded vested benefit percentage means the percentage which the aggregate value of the assets of such plans bears to the aggregate vested benefits of such plans (determined in accordance with sec- tion 1306(a)(3)(E)(iii) of this title). (2) This subsection shall not apply to an event if the contributing sponsor, or the member of the contributing sponsor’s controlled group to which the event relates, is— (A) a person subject to the reporting require- ments of section 13 or 15(d) of the Securities Exchange Act of 1934 [15 U.S.C. 78m, 78o(d)], or (B) a subsidiary (as defined for purposes of such Act [15 U.S.C. 78a et seq.]) of a person subject to such reporting requirements. (3) No later than 30 days prior to the effective date of an event described in paragraph (9), (10), (11), (12), or (13) of subsection (c), a contributing