29 U.S.C. § 1381 — Withdrawal liability established; criteria

Page 699 TITLE 29—LABOR § 1382 set out as notes under section 401 of Title 26, Internal Revenue Code. SUBTITLE E—SPECIAL PROVISIONS FOR MULTIEMPLOYER PLANS Editorial Notes CODIFICATION Pub. L. 96–364, title I, § 104, Sept. 26, 1980, 94 Stat. 1217, added subtitle heading. Former subtitle E heading ‘‘Ef- fective Date; Special Rules’’ was struck out. See sub- title F of this subchapter. PART 1—EMPLOYER WITHDRAWALS § 1381. Withdrawal liability established; criteria and definitions (a) If an employer withdraws from a multiem- ployer plan in a complete withdrawal or a par- tial withdrawal, then the employer is liable to the plan in the amount determined under this part to be the withdrawal liability. (b) For purposes of subsection (a)— (1) The withdrawal liability of an employer to a plan is the amount determined under sec- tion 1391 of this title to be the allocable amount of unfunded vested benefits, ad- justed— (A) first, by any de minimis reduction ap- plicable under section 1389 of this title, (B) next, in the case of a partial with- drawal, in accordance with section 1386 of this title, (C) then, to the extent necessary to reflect the limitation on annual payments under section 1399(c)(1)(B) of this title, and (D) finally, in accordance with section 1405 of this title. (2) The term ‘‘complete withdrawal’’ means a complete withdrawal described in section 1383 of this title. (3) The term ‘‘partial withdrawal’’ means a partial withdrawal described in section 1385 of this title. (Pub. L. 93–406, title IV, § 4201, as added Pub. L. 96–364, title I, § 104(2), Sept. 26, 1980, 94 Stat. 1217.) Editorial Notes PRIOR PROVISIONS A prior section 1381, Pub. L. 93–406, title IV, § 4402, for- merly § 4082, Sept. 2, 1974, 88 Stat. 1034; S.Res. 4, Feb. 4, 1977; Pub. L. 95–214, § 1, Dec. 19, 1977, 91 Stat. 1501; S.Res. 30, Mar. 7, 1979; Pub. L. 96–24, June 19, 1979, 93 Stat. 70; Pub. L. 96–239, § 1, Apr. 30, 1980, 94 Stat. 341; Pub. L. 96–293, § 1, June 30, 1980, 94 Stat. 610, renumbered § 4402 and amended Pub. L. 96–364, title I, § 108(a)-(c)(1), Sept. 26, 1980, 94 Stat. 1267, relating to the effective dates and special rules for this subchapter, was transferred to section 1461 of this title. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Part effective Sept. 26, 1980, see section 1461(e)(2) of this title. ELIMINATION OF RETROACTIVE APPLICATION OF AMEND- MENTS MADE BY MULTIEMPLOYER PENSION PLAN AMENDMENTS ACT OF 1980, PUB. L. 96–364 Pub. L. 98–369, div. A, title V, § 558(a), (c), (d), July 18, 1984, 98 Stat. 899, provided that: ‘‘(a) IN GENERAL.— ‘‘(1) LIABILITY.—Any withdrawal liability incurred by an employer pursuant to part 1 of subtitle E of title IV of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1381 et seq.) as a result of the complete or partial withdrawal of such employer from a multiemployer plan before September 26, 1980, shall be void. ‘‘(2) REFUNDS.—Any amounts paid by an employer to a plan sponsor as a result of such withdrawal li- ability shall be refunded by the plan sponsor to the employer with interest (in accordance with section 401(a)(2) [26 U.S.C. 401(a)(2)]), less a reasonable amount for administrative expenses incurred by the plan sponsor (other than legal expenses incurred with respect to the plan) in calculating, assessing, and re- funding such amounts. ‘‘(c) NO INCREASE IN LIABILITY.—The amendments made by this section [amending sections 1391, 1397, 1399, 1415 and 1461 of this title and provisions set out as a note under section 1385 of this title] shall not be con- strued to increase the liability incurred by any em- ployer pursuant to part 1 of subtitle E of title IV of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1381 et seq.), as in effect immediately before the amendments made by subsection (b) [amending sec- tions 1391, 1397, 1399, 1415, and 1461 of this title and pro- visions set out as a note under section 1385 of this title], as a result of the complete or partial withdrawal of such employer from a multiemployer plan prior to September 26, 1980. ‘‘(d) SPECIAL RULE FOR CERTAIN BINDING AGREE- MENTS.—In the case of an employer who, on September 26, 1980, has a binding agreement to withdraw from a multiemployer plan, subsection (a)(1) shall be applied by substituting ‘December 31, 1980’ for ‘September 26, 1980’.’’ APPLICABILITY TO CERTAIN EMPLOYERS WITHDRAWN BE- FORE SEPT. 26, 1980, FROM MULTIEMPLOYER PLAN COVERING EMPLOYEES IN SEAGOING INDUSTRY; EFFEC- TIVE DATE, COVERAGE, ETC. Pub. L. 96–364, title I, § 108(c)(4), Sept. 26, 1980, 94 Stat. 1269, provided that: ‘‘In the case of an employer who withdrew before the date of enactment of this Act [Sept. 26, 1980] from a multiemployer plan covering em- ployees in the seagoing industry (as determined by the corporation), sections 4201 through 4219 of the Em- ployee Retirement Income Security Act of 1974, as added by this Act, [section 1381 through 1399 of this title], are effective as of May 3, 1979. For the purpose of applying section 4217 [section 1397 of this title] for pur- poses of the preceding sentence, the date ‘May 2, 1979,’ shall be substituted for ‘April 28, 1980,’ and the date ‘May 3, 1979’ shall be substituted for ‘April 29, 1980’. For purposes of this paragraph, terms which are used in title IV of the Employee Retirement Income Security Act of 1974 [this subchapter], or in regulations pre- scribed under that title, and which are used in the pre- ceding sentence have the same meaning as when used in that Act [see Short Title note set out under sections 1001 of this title] or those regulations. For purposes of this paragraph, the term ‘employer’ includes only a substantial employer covering employees in the sea- going industry (as so determined) in connection with ports on the West Coast of the United States, but does not include an employer who withdrew from a plan be- cause of a change in the collective bargaining rep- resentative.’’ § 1382. Determination and collection of liability; notification of employer When an employer withdraws from a multiem- ployer plan, the plan sponsor, in accordance with this part, shall— (1) determine the amount of the employer’s withdrawal liability, (2) notify the employer of the amount of the withdrawal liability, and