29 U.S.C. § 1201 — Untitled legal text

Page 619 TITLE 29—LABOR § 1201 1 So in original. The period probably should be a comma. title, for a pension-linked emergency savings ac- count. The Secretary may promulgate regula- tions to establish minimum standards that such an arrangement would be required to satisfy in order for this subsection to apply with respect to such an account. (Pub. L. 93–406, title I, § 802, as added Pub. L. 117–328, div. T, title I, § 127(b)(1), Dec. 29, 2022, 136 Stat. 5323.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section applicable to plan years beginning after Dec. 31, 2023, see section 127(g) of Pub. L. 117–328, set out as an Effective Date of 2022 Amendment note under sec- tion 72 of Title 26, Internal Revenue Code. § 1193b. Reporting and disclosure requirements The Secretary shall— (1) prescribe such regulations as may be nec- essary to address reporting and disclosure re- quirements for pension-linked emergency sav- ings accounts; and (2) seek to prevent unnecessary reporting and disclosure for such accounts under this chapter, including for purposes of any report- ing or disclosure related to pension plans re- quired by this subchapter or under the Inter- nal Revenue Code of 1986. (Pub. L. 93–406, title I, § 803, as added Pub. L. 117–328, div. T, title I, § 127(b)(1), Dec. 29, 2022, 136 Stat. 5323.) Editorial Notes REFERENCES IN TEXT The Internal Revenue Code of 1986, referred to in par. (2), is classified generally to Title 26, Internal Revenue Code. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section applicable to plan years beginning after Dec. 31, 2023, see section 127(g) of Pub. L. 117–328, set out as an Effective Date of 2022 Amendment note under sec- tion 72 of Title 26, Internal Revenue Code. § 1193c. Report to Congress on emergency sav- ings accounts The Secretary of Labor and the Secretary of the Treasury shall— (1) conduct a study on the use of emergency savings from individual account plan ac- counts, including emergency savings from a pension-linked emergency savings account re- garding— (A) whether the amount of the dollar limi- tation under section 1193(d)(1)(A) of this title is sufficient; (B) whether the limitation on the con- tribution rate under section 1193(d)(2)(A) of this title is appropriate; and (C) the extent to which plan sponsors offer such accounts and participants participate in such accounts and the resulting impact on participant retirement savings, including the impact on retirement savings leakage and the effect of such accounts on retire- ment plan participation by low- and mod- erate-income households; and (2) not later than 7 years after December 29, 2022, submit to Congress a report on the find- ings of the study under paragraph (1). (Pub. L. 93–406, title I, § 804, as added Pub. L. 117–328, div. T, title I, § 127(b)(1), Dec. 29, 2022, 136 Stat. 5323.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section applicable to plan years beginning after Dec. 31, 2023, see section 127(g) of Pub. L. 117–328, set out as an Effective Date of 2022 Amendment note under sec- tion 72 of Title 26, Internal Revenue Code. SUBCHAPTER II—JURISDICTION, ADMINIS- TRATION, ENFORCEMENT; JOINT PEN- SION TASK FORCE, ETC. SUBTITLE A—JURISDICTION, ADMINISTRATION, AND ENFORCEMENT § 1201. Procedures in connection with the issuance of certain determination letters by the Secretary of the Treasury covering quali- fications under Internal Revenue Code (a) Additional material required of applicants Before issuing an advance determination of whether a pension, profit-sharing, or stock bonus plan, a trust which is a part of such a plan, or an annuity or bond purchase plan meets the requirements of part I of subchapter D of chapter 1 of title 26, the Secretary of the Treas- ury shall require the person applying for the de- termination to provide, in addition to any mate- rial and information necessary for such deter- mination, such other material and information as may reasonably be made available at the time such application is made as the Secretary of Labor may require under subchapter I of this chapter for the administration of that sub- chapter. The Secretary of the Treasury shall also require that the applicant provide evidence satisfactory to the Secretary that the applicant has notified each employee who qualifies as an interested party (within the meaning of regula- tions prescribed under section 7476(b)(1) of title 26 (relating to declaratory judgments in connec- tion with the qualification of certain retirement plans)) of the application for a determination. (b) Opportunity to comment on application (1) Whenever an application is made to the Secretary of the Treasury for a determination of whether a pension, profit-sharing, or stock bonus plan, a trust which is a part of such a plan, or an annuity or bond purchase plan meets the requirements of part I of subchapter D of chapter 1 of title 26, the Secretary shall upon re- quest afford an opportunity to comment on the application at any time within 45 days after re- ceipt thereof to— (A) any employee or class of employee quali- fying as an interested party within the mean- ing of the regulations referred to in subsection (a).1 (B) the Secretary of Labor, and (C) the Pension Benefit Guaranty Corpora- tion. Page 620 TITLE 29—LABOR § 1202 (2) The Secretary of Labor may not request an opportunity to comment upon such an applica- tion unless he has been requested in writing to do so by the Pension Benefit Guaranty Corpora- tion or by the lesser of— (A) 10 employees, or (B) 10 percent of the employees who qualify as interested parties within the meaning of the regulations referred to in sub- section (a). Upon receiving such a request, the Secretary of Labor shall furnish a copy of the request to the Secretary of the Treasury within 5 days (excluding Saturdays, Sundays, and legal public holidays (as set forth in section 6103 of title 5)). (3) Upon receiving such a request from the Secretary of Labor, the Secretary of the Treas- ury shall furnish to the Secretary of Labor such information held by the Secretary of the Treas- ury relating to the application as the Secretary of Labor may request. (4) The Secretary of Labor shall, within 30 days after receiving a request from the Pension Benefit Guaranty Corporation or from the nec- essary number of employees who qualify as in- terested parties, notify the Secretary of the Treasury, the Pension Benefit Guaranty Cor- poration, and such employees with respect to whether he is going to comment on the applica- tion to which the request relates and with re- spect to any matters raised in such request on which he is not going to comment. If the Sec- retary of Labor indicates in the notice required under the preceding sentence that he is not going to comment on all or part of the matters raised in such request, the Secretary of the Treasury shall afford the corporation, and such employees, an opportunity to comment on the application with respect to any matter on which the Secretary of Labor has declined to com- ment. (c) Intervention by Pension Benefit Guaranty Corporation or Secretary of Labor into de- claratory judgment action under section 7476 of title 26, action by Corporation authorized The Pension Benefit Guaranty Corporation and, upon petition of a group of employees re- ferred to in subsection (b)(2), the Secretary of Labor, may intervene in any action brought for declaratory judgment under section 7476 of title 26 in accordance with the provisions of such sec- tion. The Pension Benefit Guaranty Corporation is permitted to bring an action under such sec- tion 7476 under such rules as may be prescribed by the United States Tax Court. (d) Notification and information by Secretary of the Treasury to Secretary of Labor upon issuance by Secretary of the Treasury of a determination letter to applicant If the Secretary of the Treasury determines that a plan or trust to which this section applies meets the applicable requirements of part I of subchapter D of chapter 1 of title 26 and issues a determination letter to the applicant, the Sec- retary shall notify the Secretary of Labor of his determination and furnish such information and material relating to the application and deter- mination held by the Secretary of the Treasury as the Secretary of Labor may request for the proper administration of subchapter I of this chapter. The Secretary of Labor shall accept the determination of the Secretary of the Treasury as prima facie evidence of initial compliance by the plan with the standards of parts 2, 3, and 4 of subtitle B of subchapter I of this chapter. The determination of the Secretary of the Treasury shall not be prima facie evidence on issues relat- ing solely to part 4 of subtitle B of subchapter I. If an application for such a determination is withdrawn, or if the Secretary of the Treasury issues a determination that the plan or trust does not meet the requirements of such part I, the Secretary shall notify the Secretary of Labor of the withdrawal or determination. (e) Effective date This section does not apply with respect to an application for any plan received by the Sec- retary of the Treasury before the date on which section 410 of title 26 applies to the plan, or on which such section will apply if the plan is de- termined by the Secretary to be a qualified plan. (Pub. L. 93–406, title III, § 3001, Sept. 2, 1974, 88 Stat. 995; Pub. L. 100–203, title IX, § 9343(b), Dec. 22, 1987, 101 Stat. 1330–372; Pub. L. 101–239, title VII, § 7891(a)(1), Dec. 19, 1989, 103 Stat. 2445.) Editorial Notes AMENDMENTS 1989—Subsecs. (a), (b)(1), (c) to (e). Pub. L. 101–239 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. (d). Pub. L. 100–203 inserted after second sentence ‘‘The determination of the Secretary of the Treasury shall not be prima facie evidence on issues re- lating solely to part 4 of subtitle B of subchapter I.’’ 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. § 1202. Procedures with respect to continued compliance with Internal Revenue require- ments relating to participation, vesting, and funding standards (a) Notification by Secretary of the Treasury to Secretary of Labor of issuance of a prelimi- nary notice of intent to disqualify or of com- mencement of proceedings to determine sat- isfaction of requirements In carrying out the provisions of part I of sub- chapter D of chapter 1 of title 26 with respect to whether a plan or a trust meets the require- ments of section 410(a) or 411 of title 26 (relating to minimum participation standards and min- imum vesting standards, respectively), the Sec- retary of the Treasury shall notify the Sec- retary of Labor when the Secretary of the Treas- ury issues a preliminary notice of intent to dis- qualify related to the plan or trust or, if earlier, at the time of commencing any proceeding to determine whether the plan or trust satisfies such requirements. Unless the Secretary of the