29 U.S.C. § 1441 — Benefits under certain terminated plans

Page 731 TITLE 29—LABOR § 1441 1 See References in Text note below. viewing applications of such plans, the corpora- tion shall coordinate with the Secretary of the Treasury in the following manner: (1) In the case of a plan which has suspended benefits under section 1085(e)(9) of this title— (A) in determining whether to approve the application, the corporation shall consult with the Secretary of the Treasury regard- ing the plan’s proposed method of rein- stating benefits, as described in the plan’s application and in accordance with guidance issued by the Secretary of the Treasury, and (B) the corporation shall consult with the Secretary of the Treasury regarding the amount of special financial assistance need- ed based on the projected funded status of the plan as of the last day of the plan year ending in 2051, whether the plan proposes to repay benefits over 5 years or as a lump sum, as required by subsection (k)(2), and any other relevant factors, as determined by the corporation in consultation with the Sec- retary of the Treasury, to ensure the amount of assistance is sufficient to meet such requirement and is sufficient to pay benefits as required in subsection (j)(1). (2) In the case of any plan which proposes in its application to change the assumptions used, as provided in subsection (e)(4), the cor- poration shall consult with the Secretary of the Treasury regarding such proposed change in assumptions. (3) If the corporation specifies in regulations or guidance that temporary priority consider- ation is available for plans which are insolvent within the meaning of section 418E of title 26 or likely to become so insolvent or for plans which have suspended benefits under section 1085(e)(9) of this title, or that availability is otherwise based on the funded status of the plan under section 1085 of this title, as per- mitted by subsection (d), the corporation shall consult with the Secretary of the Treasury re- garding any granting of priority consideration to such plans. (Pub. L. 93–406, title IV, § 4262, as added Pub. L. 117–2, title IX, § 9704(b), Mar. 11, 2021, 135 Stat. 190.) PART 5—BENEFITS AFTER TERMINATION § 1441. Benefits under certain terminated plans (a) Amendment of plan by plan sponsor to re- duce benefits, and suspension of benefit pay- ments Notwithstanding sections 1053 and 1054 of this title, the plan sponsor of a terminated multiem- ployer plan to which section 1341a(d) of this title applies shall amend the plan to reduce benefits, and shall suspend benefit payments, as required by this section. (b) Determinations respecting value of non- forfeitable benefits under terminated plan and value of assets of plan (1) The value of nonforfeitable benefits under a terminated plan referred to in subsection (a), and the value of the plan’s assets, shall be deter- mined in writing, in accordance with regula- tions prescribed by the corporation, as of the end of the plan year during which section 1341a(d) of this title becomes applicable to the plan, and each plan year thereafter. (2) For purposes of this section, plan assets in- clude outstanding claims for withdrawal liabil- ity (within the meaning of section 1301(a)(12) of this title). (c) Amendment of plan by plan sponsor to reduce benefits for conservation of assets; factors applicable (1) If, according to the determination made under subsection (b), the value of nonforfeitable benefits exceeds the value of the plan’s assets, the plan sponsor shall amend the plan to reduce benefits under the plan to the extent necessary to ensure that the plan’s assets are sufficient, as determined and certified in accordance with reg- ulations prescribed by the corporation, to dis- charge when due all of the plan’s obligations with respect to nonforfeitable benefits. (2) Any plan amendment required by this sub- section shall, in accordance with regulations prescribed by the Secretary of the Treasury— (A) reduce benefits only to the extent nec- essary to comply with paragraph (1); (B) reduce accrued benefits only to the ex- tent that those benefits are not eligible for the corporation’s guarantee under section 1322a(b) of this title; (C) comply with the rules for and limitations on benefit reductions under a plan in reorga- nization, as prescribed in section 1425 1 of this title, except to the extent that the corpora- tion prescribes other rules and limitations in regulations under this section; and (D) take effect no later than 6 months after the end of the plan year for which it is deter- mined that the value of nonforfeitable benefits exceeds the value of the plan’s assets. (d) Suspension of benefit payments; determina- tive factors; powers and duties of plan spon- sor; retroactive benefit payments (1) In any case in which benefit payments under a plan which is insolvent under paragraph (2)(A) exceed the resource benefit level, any such payments which are not basic benefits shall be suspended, in accordance with this subsection, to the extent necessary to reduce the sum of such payments and such basic benefits to the greater of the resource benefit level or the level of basic benefits, unless an alternative proce- dure is prescribed by the corporation in connec- tion with a supplemental guarantee program es- tablished under section 1322a(g)(2) of this title. (2) For purposes of this subsection, for a plan year— (A) a plan is insolvent if— (i) the plan has been amended to reduce benefits to the extent permitted by sub- section (c), and (ii) the plan’s available resources are not sufficient to pay benefits under the plan when due for the plan year; and (B) ‘‘resource benefit level’’ and ‘‘available resources’’ have the meanings set forth in paragraphs (2) and (3), respectively, of section 1426(b) of this title. Page 732 TITLE 29—LABOR § 1451 (3) The plan sponsor of a plan which is insol- vent (within the meaning of paragraph (2)(A)) shall have the powers and duties of the plan sponsor of a plan in reorganization which is in- solvent (within the meaning of section 1426(b)(1) of this title), except that regulations governing the plan sponsor’s exercise of those powers and duties under this section shall be prescribed by the corporation, and the corporation shall pre- scribe by regulation notice requirements which assure that plan participants and beneficiaries receive adequate notice of benefit suspensions. (4) A plan is not required to make retroactive benefit payments with respect to that portion of a benefit which was suspended under this sub- section, except that the provisions of section 1426(c)(4) and (5) of this title shall apply in the case of plans which are insolvent under para- graph (2)(A), in connection with the plan year during which such section 1341a(d) of this title first became applicable to the plan and every year thereafter, in the same manner and to the same extent as such provisions apply to insol- vent plans in reorganization under section 1426 of this title, in connection with insolvency years under such section 1426 of this title. (Pub. L. 93–406, title IV, § 4281, as added Pub. L. 96–364, title I, § 104(2), Sept. 26, 1980, 94 Stat. 1261.) Editorial Notes REFERENCES IN TEXT Section 1425 of this title, referred to in subsec. (c)(2)(C), was repealed by Pub. L. 113–235, div. O, title I, § 108(a)(1), Dec. 16, 2014, 128 Stat. 2786. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Part effective Sept. 26, 1980, except as specifically provided, see section 1461(e) of this title. PART 6—ENFORCEMENT § 1451. Civil actions (a) Persons entitled to maintain actions (1) A plan fiduciary, employer, plan partici- pant, or beneficiary, who is adversely affected by the act or omission of any party under this subtitle with respect to a multiemployer plan, or an employee organization which represents such a plan participant or beneficiary for pur- poses of collective bargaining, may bring an ac- tion for appropriate legal or equitable relief, or both. (2) Notwithstanding paragraph (1), this section does not authorize an action against the Sec- retary of the Treasury, the Secretary of Labor, or the corporation. (b) Failure of employer to make withdrawal li- ability payment within prescribed time In any action under this section to compel an employer to pay withdrawal liability, any fail- ure of the employer to make any withdrawal li- ability payment within the time prescribed shall be treated in the same manner as a delinquent contribution (within the meaning of section 1145 of this title). (c) Jurisdiction of Federal and State courts The district courts of the United States shall have exclusive jurisdiction of an action under this section without regard to the amount in controversy, except that State courts of com- petent jurisdiction shall have concurrent juris- diction over an action brought by a plan fidu- ciary to collect withdrawal liability. (d) Venue and service of process An action under this section may be brought in the district where the plan is administered or where a defendant resides or does business, and process may be served in any district where a defendant resides, does business, or may be found. (e) Costs and expenses In any action under this section, the court may award all or a portion of the costs and ex- penses incurred in connection with such action, including reasonable attorney’s fees, to the pre- vailing party. (f) Time limitations An action under this section may not be brought after the later of— (1) 6 years after the date on which the cause of action arose, or (2) 3 years after the earliest date on which the plaintiff acquired or should have acquired actual knowledge of the existence of such cause of action; except that in the case of fraud or concealment, such action may be brought not later than 6 years after the date of discovery of the existence of such cause of action. (g) Service of complaint on corporation; inter- vention by corporation A copy of the complaint in any action under this section or section 1401 of this title shall be served upon the corporation by certified mail. The corporation may intervene in any such ac- tion. (Pub. L. 93–406, title IV, § 4301, as added Pub. L. 96–364, title I, § 104(2), Sept. 26, 1980, 94 Stat. 1263.) Editorial Notes EFFECTIVE DATE Part effective Sept. 26, 1980, except as specifically provided, see section 1461(e) of this title. § 1452. Penalty for failure to provide notice Any person who fails, without reasonable cause, to provide a notice required under this subtitle or any implementing regulations shall be liable to the corporation in an amount up to $100 for each day for which such failure con- tinues. The corporation may bring a civil action against any such person in the United States District Court for the District of Columbia or in any district court of the United States within the jurisdiction of which the plan assets are lo- cated, the plan is administered, or a defendant resides or does business, and process may be served in any district where a defendant resides, does business, or may be found. (Pub. L. 93–406, title IV, § 4302, as added Pub. L. 96–364, title I, § 104(2), Sept. 26, 1980, 94 Stat. 1263.)