29 U.S.C. § 1397 — Application of part in case of certain pre-

Page 712 TITLE 29—LABOR § 1397 1 See References in Text note below. required to make contributions for the prior plan year if the employer had not withdrawn, multiplied by (ii) the contribution rate for the plan year which would be required to meet the amortization schedules contained in sec- tion 1423(d)(3)(B)(ii) 1 of this title (deter- mined without regard to any limitation on such rate otherwise provided by this sub- chapter) except that an employer shall not be required to pay an amount in excess of the withdrawal liability computed with interest; and (2) the withdrawal liability of an employer who withdraws after December 31, 1983, as a re- sult of a termination described in section 1341a(a)(2) of this title which is agreed to by the labor organization that appoints the em- ployee representative on the joint board of trustees which sponsors the plan, shall be de- termined under subsection (c) if— (A) as a result of prior employer with- drawals in any plan year commencing after January 1, 1980, the number of contribution base units is reduced to less than 67 percent of the average number of such units for the calendar years 1974 through 1979; and (B) at least 50 percent of the withdrawal li- ability attributable to the first 33 percent decline described in subparagraph (A) has been determined by the plan sponsor to be uncollectible within the meaning of regula- tions of the corporation of general applica- bility; and (C) the rate of employer contributions under the plan for each plan year following the first plan year beginning after Sep- tember 26, 1980 and preceding the termi- nation date equals or exceeds the rate de- scribed in section 1423(d)(3) 1 of this title. (b) Covered plans A plan is described in this subsection if— (1) it is a plan described in section 404(c) of title 26 or a continuation thereof; and (2) participation in the plan is substantially limited to individuals who retired prior to January 1, 1976. (c) Amount of liability of employer; ‘‘a year of signatory service’’ defined (1) The amount of an employer’s liability under this paragraph is the product of— (A) the amount of the employer’s with- drawal liability determined without regard to this section, and (B) the greater of 90 percent, or a fraction— (i) the numerator of which is an amount equal to the portion of the plan’s unfunded vested benefits that is attributable to plan participants who have a total of 10 or more years of signatory service, and (ii) the denominator of which is an amount equal to the total unfunded vested benefits of the plan. (2) For purposes of paragraph (1), the term ‘‘a year of signatory service’’ means a year during any portion of which a participant was em- ployed for an employer who was obligated to contribute in that year, or who was subse- quently obligated to contribute. (Pub. L. 93–406, title IV, § 4216, as added Pub. L. 96–364, title I, § 104(2), Sept. 26, 1980, 94 Stat. 1234.) Editorial Notes REFERENCES IN TEXT Section 1423 of this title, referred to in subsec. (a)(1)(B)(ii), (2)(C), was repealed by Pub. L. 113–235, div. O, title I, § 108(a)(1), Dec. 16, 2014, 128 Stat. 2786. § 1397. Application of part in case of certain pre- 1980 withdrawals; adjustment of covered plan (a) For the purpose of determining the amount of unfunded vested benefits allocable to an em- ployer for a partial or complete withdrawal from a plan which occurs after September 25, 1980, and for the purpose of determining whether there has been a partial withdrawal after such date, the amount of contributions, and the number of contribution base units, of such employer prop- erly allocable— (1) to work performed under a collective bar- gaining agreement for which there was a per- manent cessation of the obligation to con- tribute before September 26, 1980, or (2) to work performed at a facility at which all covered operations permanently ceased be- fore September 26, 1980, or for which there was a permanent cessation of the obligation to contribute before that date, shall not be taken into account. (b) A plan may, in a manner not inconsistent with regulations, which shall be prescribed by the corporation, adjust the amount of unfunded vested benefits allocable to other employers under a plan maintained by an employer de- scribed in subsection (a). (Pub. L. 93–406, title IV, § 4217, as added Pub. L. 96–364, title I, § 104(2), Sept. 26, 1980, 94 Stat. 1235; amended Pub. L. 98–369, div. A, title V, § 558(b)(1)(A), (B), July 18, 1984, 98 Stat. 899.) Editorial Notes AMENDMENTS 1984—Subsec. (a). Pub. L. 98–369, § 558(b)(1)(A), (B), substituted ‘‘September 25, 1980’’ for ‘‘April 28, 1980’’ in provisions preceding par. (1) and ‘‘September 26, 1980’’ for ‘‘April 29, 1980’’ in pars. (1) and (2). § 1398. Withdrawal not to occur because of change in business form or suspension of contributions during labor dispute Notwithstanding any other provision of this part, an employer shall not be considered to have withdrawn from a plan solely because— (1) an employer ceases to exist by reason of— (A) a change in corporate structure de- scribed in section 1369(b) of this title, or (B) a change to an unincorporated form of business enterprise, if the change causes no interruption in em- ployer contributions or obligations to con- tribute under the plan, or