29 U.S.C. § 1341 — Termination of single-employer plans

Page 663 TITLE 29—LABOR § 1341 1 See References in Text note below. 2 So in original. Probably should be ‘‘benefit liabilities’’. ity coverage, prior to repeal by Pub. L. 96–364, title I, § 107, Sept. 26, 1980, 94 Stat. 1267. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective Sept. 26, 1980, except as specifically provided, see section 1461(e) of this title. SUBTITLE C—TERMINATIONS § 1341. Termination of single-employer plans (a) General rules governing single-employer plan terminations (1) Exclusive means of plan termination Except in the case of a termination for which proceedings are otherwise instituted by the corporation as provided in section 1342 of this title, a single-employer plan may be ter- minated only in a standard termination under subsection (b) or a distress termination under subsection (c). (2) 60-day notice of intent to terminate Not less than 60 days before the proposed termination date of a standard termination under subsection (b) or a distress termination under subsection (c), the plan administrator shall provide to each affected party (other than the corporation in the case of a standard termination) a written notice of intent to ter- minate stating that such termination is in- tended and the proposed termination date. The written notice shall include any related addi- tional information required in regulations of the corporation. (3) Adherence to collective bargaining agree- ments The corporation shall not proceed with a ter- mination of a plan under this section if the termination would violate the terms and con- ditions of an existing collective bargaining agreement. Nothing in the preceding sentence shall be construed as limiting the authority of the corporation to institute proceedings to in- voluntarily terminate a plan under section 1342 of this title. (b) Standard termination of single-employer plans (1) General requirements A single-employer plan may terminate under a standard termination only if— (A) the plan administrator provides the 60- day advance notice of intent to terminate to affected parties required under subsection (a)(2), (B) the requirements of subparagraphs (A) and (B) of paragraph (2) are met, (C) the corporation does not issue a notice of noncompliance under subparagraph (C) of paragraph (2), and (D) when the final distribution of assets occurs, the plan is sufficient for benefit li- abilities (determined as of the termination date). (2) Termination procedure (A) Notice to the corporation As soon as practicable after the date on which the notice of intent to terminate is provided pursuant to subsection (a)(2), the plan administrator shall send a notice to the corporation setting forth— (i) certification by an enrolled actuary— (I) of the projected amount of the as- sets of the plan (as of a proposed date of final distribution of assets), (II) of the actuarial present value (as of such date) of the benefit liabilities (determined as of the proposed termi- nation date) under the plan, and (III) that the plan is projected to be sufficient (as of such proposed date of final distribution) for such benefit liabil- ities, (ii) such information as the corporation may prescribe in regulations as necessary to enable the corporation to make deter- minations under subparagraph (C), and (iii) certification by the plan adminis- trator that— (I) the information on which the en- rolled actuary based the certification under clause (i) is accurate and com- plete, and (II) the information provided to the corporation under clause (ii) is accurate and complete. Clause (i) and clause (iii)(I) shall not apply to a plan described in section 412(i) 1 of title 26. (B) Notice to participants and beneficiaries of benefit commitments 2 No later than the date on which a notice is sent by the plan administrator under sub- paragraph (A), the plan administrator shall send a notice to each person who is a partici- pant or beneficiary under the plan— (i) specifying the amount of the benefit liabilities (if any) attributable to such per- son as of the proposed termination date and the benefit form on the basis of which such amount is determined, and (ii) including the following information used in determining such benefit liabil- ities: (I) the length of service, (II) the age of the participant or bene- ficiary, (III) wages, (IV) the assumptions, including the in- terest rate, and (V) such other information as the cor- poration may require. Such notice shall be written in such manner as is likely to be understood by the partici- pant or beneficiary and as may be prescribed in regulations of the corporation. (C) Notice from the corporation of non- compliance (i) In general Within 60 days after receipt of the notice under subparagraph (A), the corporation shall issue a notice of noncompliance to the plan administrator if— Page 664 TITLE 29—LABOR § 1341 3 So in original. The word ‘‘a’’ probably should appear. (I) it determines, based on the notice sent under paragraph (2)(A) of subsection (b), that there is reason to believe that the plan is not sufficient for benefit li- abilities, (II) it otherwise determines, on the basis of information provided by affected parties or otherwise obtained by the cor- poration, that there is reason to believe that the plan is not sufficient for benefit liabilities, or (III) it determines that any other re- quirement of subparagraph (A) or (B) of this paragraph or of subsection (a)(2) has not been met, unless it further deter- mines that the issuance of such notice would be inconsistent with the interests of participants and beneficiaries. (ii) Extension The corporation and the plan adminis- trator may agree to extend the 60-day pe- riod referred to in clause (i) by a written agreement signed by the corporation and the plan administrator before the expira- tion of the 60-day period. The 60-day period shall be extended as provided in the agree- ment and may be further extended by sub- sequent written agreements signed by the corporation and the plan administrator made before the expiration of a previously agreed upon extension of the 60-day period. Any extension may be made upon such terms and conditions (including the pay- ment of benefits) as are agreed upon by the corporation and the plan administrator. (D) Final distribution of assets in absence of notice of noncompliance The plan administrator shall commence the final distribution of assets pursuant to the standard termination of the plan as soon as practicable after the expiration of the 60- day (or extended) period referred to in sub- paragraph (C), but such final distribution may occur only if— (i) the plan administrator has not re- ceived during such period a notice of non- compliance from the corporation under subparagraph (C), and (ii) when such final distribution occurs, the plan is sufficient for benefit liabilities (determined as of the termination date). (3) Methods of final distribution of assets (A) In general In connection with any final distribution of assets pursuant to the standard termi- nation of the plan under this subsection, the plan administrator shall distribute the as- sets in accordance with section 1344 of this title. In distributing such assets, the plan administrator shall— (i) purchase irrevocable commitments from an insurer to provide all benefit li- abilities under the plan, or (ii) in accordance with the provisions of the plan and any applicable regulations, otherwise fully provide all benefit liabil- ities under the plan. A transfer of assets to the corporation in accordance with section 1350 of this title on behalf of a missing par- ticipant shall satisfy this subparagraph with respect to such participant. (B) Certification to the corporation of final distribution of assets Within 30 days after the final distribution of assets is completed pursuant to the stand- ard termination of the plan under this sub- section, the plan administrator shall send a notice to the corporation certifying that the assets of the plan have been distributed in accordance with the provisions of subpara- graph (A) so as to pay all benefit liabilities under the plan. (4) Continuing authority Nothing in this section shall be construed to preclude the continued exercise by the cor- poration, after the termination date of a plan terminated in a standard termination under this subsection, of its authority under section 1303 of this title with respect to matters relat- ing to the termination. A certification under paragraph (3)(B) shall not affect the corpora- tion’s obligations under section 1322 of this title. (5) Special rule for certain plans where ces- sation or change in membership of a con- trolled group (A) In general Except as provided in subparagraphs (B) and (D), if— (i) there is 3 transaction or series of transactions which result in a person ceas- ing to be a member of a controlled group, and (ii) such person immediately before the transaction or series of transactions main- tained a single-employer plan which is a defined benefit plan which is fully funded, then the interest rate used in determining whether the plan is sufficient for benefit li- abilities or to otherwise assess plan liabil- ities for purposes of this subsection or sec- tion 1342(a)(4) of this title shall be not less than the interest rate used in determining whether the plan is fully funded. (B) Limitations Subparagraph (A) shall not apply to any transaction or series of transactions unless— (i) any employer maintaining the plan immediately before or after such trans- action or series of transactions— (I) has an outstanding senior unsecured debt instrument which is rated invest- ment grade by each of the nationally recognized statistical rating organiza- tions for corporate bonds that has issued a credit rating for such instrument, or (II) if no such debt instrument of such employer has been rated by such an or- ganization but 1 or more of such organi- zations has made an issuer credit rating for such employer, all such organizations which have so rated the employer have rated such employer investment grade, and Page 665 TITLE 29—LABOR § 1341 (ii) the employer maintaining the plan after the transaction or series of trans- actions employs at least 20 percent of the employees located in the United States who were employed by such employer im- mediately before the transaction or series of transactions. (C) Fully funded For purposes of subparagraph (A), a plan shall be treated as fully funded with respect to any transaction or series of transactions if— (i) in the case of a transaction or series of transactions which occur in a plan year beginning before January 1, 2008, the fund- ed current liability percentage determined under section 1082(d) of this title for the plan year is at least 100 percent, and (ii) in the case of a transaction or series of transactions which occur in a plan year beginning on or after such date, the fund- ing target attainment percentage deter- mined under section 1083 of this title is, as of the valuation date for such plan year, at least 100 percent. (D) 2 year limitation Subparagraph (A) shall not apply to any transaction or series of transactions if the plan referred to in subparagraph (A)(ii) is terminated under subsection (c) or section 1342 of this title after the close of the 2-year period beginning on the date on which the first such transaction occurs. (c) Distress termination of single-employer plans (1) In general A single-employer plan may terminate under a distress termination only if— (A) the plan administrator provides the 60- day advance notice of intent to terminate to affected parties required under subsection (a)(2), (B) the requirements of subparagraph (A) of paragraph (2) are met, and (C) the corporation determines that the re- quirements of subparagraphs (B) and (D) of paragraph (2) are met. (2) Termination requirements (A) Information submitted to the corporation As soon as practicable after the date on which the notice of intent to terminate is provided pursuant to subsection (a)(2), the plan administrator shall provide the cor- poration, in such form as may be prescribed by the corporation in regulations, the fol- lowing information: (i) such information as the corporation may prescribe by regulation as necessary to make determinations under subpara- graph (B) and paragraph (3); (ii) unless the corporation determines the information is not necessary for pur- poses of paragraph (3)(A) or section 1362 of this title, certification by an enrolled ac- tuary of— (I) the amount (as of the proposed ter- mination date and, if applicable, the pro- posed distribution date) of the current value of the assets of the plan, (II) the actuarial present value (as of such dates) of the benefit liabilities under the plan, (III) whether the plan is sufficient for benefit liabilities as of such dates, (IV) the actuarial present value (as of such dates) of benefits under the plan guaranteed under section 1322 of this title, and (V) whether the plan is sufficient for guaranteed benefits as of such dates; (iii) in any case in which the plan is not sufficient for benefit liabilities as of such date— (I) the name and address of each par- ticipant and beneficiary under the plan as of such date, and (II) such other information as shall be prescribed by the corporation by regula- tion as necessary to enable the corpora- tion to be able to make payments to par- ticipants and beneficiaries as required under section 1322(c) of this title; and (iv) certification by the plan adminis- trator that— (I) the information on which the en- rolled actuary based the certifications under clause (ii) is accurate and com- plete, and (II) the information provided to the corporation under clauses (i) and (iii) is accurate and complete. Clause (ii) and clause (iv)(I) shall not apply to a plan described in section 412(i) 1 of title 26. (B) Determination by the corporation of nec- essary distress criteria Upon receipt of the notice of intent to ter- minate required under subsection (a)(2) and the information required under subpara- graph (A), the corporation shall determine whether the requirements of this subpara- graph are met as provided in clause (i), (ii), or (iii). The requirements of this subpara- graph are met if each person who is (as of the proposed termination date) a contrib- uting sponsor of such plan or a member of such sponsor’s controlled group meets the requirements of any of the following clauses: (i) Liquidation in bankruptcy or insolvency proceedings The requirements of this clause are met by a person if— (I) such person has filed or has had filed against such person, as of the pro- posed termination date, a petition seek- ing liquidation in a case under title 11 or under any similar Federal law or law of a State or political subdivision of a State (or a case described in clause (ii) filed by or against such person has been converted, as of such date, to a case in which liquidation is sought), and (II) such case has not, as of the pro- posed termination date, been dismissed. (ii) Reorganization in bankruptcy or insol- vency proceedings The requirements of this clause are met by a person if— Page 666 TITLE 29—LABOR § 1341 (I) such person has filed, or has had filed against such person, as of the pro- posed termination date, a petition seek- ing reorganization in a case under title 11 or under any similar law of a State or political subdivision of a State (or a case described in clause (i) filed by or against such person has been converted, as of such date, to such a case in which reor- ganization is sought), (II) such case has not, as of the pro- posed termination date, been dismissed, (III) such person timely submits to the corporation any request for the approval of the bankruptcy court (or other appro- priate court in a case under such similar law of a State or political subdivision) of the plan termination, and (IV) the bankruptcy court (or such other appropriate court) determines that, unless the plan is terminated, such person will be unable to pay all its debts pursuant to a plan of reorganization and will be unable to continue in business outside the chapter 11 reorganization process and approves the termination. (iii) Termination required to enable pay- ment of debts while staying in business or to avoid unreasonably burdensome pension costs caused by declining workforce The requirements of this clause are met by a person if such person demonstrates to the satisfaction of the corporation that— (I) unless a distress termination oc- curs, such person will be unable to pay such person’s debts when due and will be unable to continue in business, or (II) the costs of providing pension cov- erage have become unreasonably burden- some to such person, solely as a result of a decline of such person’s workforce cov- ered as participants under all single-em- ployer plans of which such person is a contributing sponsor. (C) Notification of determinations by the cor- poration The corporation shall notify the plan ad- ministrator as soon as practicable of its de- terminations made pursuant to subpara- graph (B). (D) Disclosure of termination information (i) In general A plan administrator that has filed a no- tice of intent to terminate under sub- section (a)(2) shall provide to an affected party any information provided to the cor- poration under subparagraph (A) or the regulations under subsection (a)(2) not later than 15 days after— (I) receipt of a request from the af- fected party for the information; or (II) the provision of new information to the corporation relating to a previous request. (ii) Confidentiality (I) In general The plan administrator shall not pro- vide information under clause (i) in a form that includes any information that may directly or indirectly be associated with, or otherwise identify, an individual participant or beneficiary. (II) Limitation A court may limit disclosure under this subparagraph of confidential infor- mation described in section 552(b) of title 5 to any authorized representative of the participants or beneficiaries that agrees to ensure the confidentiality of such in- formation. (iii) Form and manner of information; charges (I) Form and manner The corporation may prescribe the form and manner of the provision of in- formation under this subparagraph, which shall include delivery in written, electronic, or other appropriate form to the extent that such form is reasonably accessible to individuals to whom the in- formation is required to be provided. (II) Reasonable charges A plan administrator may charge a reasonable fee for any information pro- vided under this subparagraph in other than electronic form. (iv) Authorized representative For purposes of this subparagraph, the term ‘‘authorized representative’’ means any employee organization representing participants in the pension plan. (3) Termination procedure (A) Determinations by the corporation relat- ing to plan sufficiency for guaranteed benefits and for benefit liabilities If the corporation determines that the re- quirements for a distress termination set forth in paragraphs (1) and (2) are met, the corporation shall— (i) determine that the plan is sufficient for guaranteed benefits (as of the termi- nation date) or that the corporation is un- able to make such determination on the basis of information made available to the corporation, (ii) determine that the plan is sufficient for benefit liabilities (as of the termi- nation date) or that the corporation is un- able to make such determination on the basis of information made available to the corporation, and (iii) notify the plan administrator of the determinations made pursuant to this sub- paragraph as soon as practicable. (B) Implementation of termination After the corporation notifies the plan ad- ministrator of its determinations under sub- paragraph (A), the termination of the plan shall be carried out as soon as practicable, as provided in clause (i), (ii), or (iii). (i) Cases of sufficiency for benefit liabil- ities In any case in which the corporation de- termines that the plan is sufficient for Page 667 TITLE 29—LABOR § 1341 benefit liabilities, the plan administrator shall proceed to distribute the plan’s as- sets, and make certification to the cor- poration with respect to such distribution, in the manner described in subsection (b)(3), and shall take such other actions as may be appropriate to carry out the termi- nation of the plan. (ii) Cases of sufficiency for guaranteed ben- efits without a finding of sufficiency for benefit liabilities In any case in which the corporation de- termines that the plan is sufficient for guaranteed benefits, but further deter- mines that it is unable to determine that the plan is sufficient for benefit liabilities on the basis of the information made available to it, the plan administrator shall proceed to distribute the plan’s as- sets in the manner described in subsection (b)(3), make certification to the corpora- tion that the distribution has occurred, and take such actions as may be appro- priate to carry out the termination of the plan. (iii) Cases without any finding of suffi- ciency In any case in which the corporation de- termines that it is unable to determine that the plan is sufficient for guaranteed benefits on the basis of the information made available to it, the corporation shall commence proceedings in accordance with section 1342 of this title. (C) Finding after authorized commencement of termination that plan is unable to pay benefits (i) Finding with respect to benefit liabil- ities which are not guaranteed benefits If, after the plan administrator has begun to terminate the plan as authorized under subparagraph (B)(i), the plan admin- istrator finds that the plan is unable, or will be unable, to pay benefit liabilities which are not benefits guaranteed by the corporation under section 1322 of this title, the plan administrator shall notify the corporation of such finding as soon as practicable thereafter. (ii) Finding with respect to guaranteed benefits If, after the plan administrator has begun to terminate the plan as authorized by subparagraph (B)(i) or (ii), the plan ad- ministrator finds that the plan is unable, or will be unable, to pay all benefits under the plan which are guaranteed by the cor- poration under section 1322 of this title, the plan administrator shall notify the corporation of such finding as soon as practicable thereafter. If the corporation concurs in the finding of the plan adminis- trator (or the corporation itself makes such a finding), the corporation shall insti- tute appropriate proceedings under section 1342 of this title. (D) Administration of the plan during in- terim period (i) In general The plan administrator shall— (I) meet the requirements of clause (ii) for the period commencing on the date on which the plan administrator pro- vides a notice of distress termination to the corporation under subsection (a)(2) and ending on the date on which the plan administrator receives notification from the corporation of its determinations under subparagraph (A), and (II) meet the requirements of clause (ii) commencing on the date on which the plan administrator or the corpora- tion makes a finding under subparagraph (C)(ii). (ii) Requirements The requirements of this clause are met by the plan administrator if the plan ad- ministrator— (I) refrains from distributing assets or taking any other actions to carry out the proposed termination under this sub- section, (II) pays benefits attributable to em- ployer contributions, other than death benefits, only in the form of an annuity, (III) does not use plan assets to pur- chase irrevocable commitments to pro- vide benefits from an insurer, and (IV) continues to pay all benefit liabil- ities under the plan, but, commencing on the proposed termination date, limits the payment of benefits under the plan to those benefits which are guaranteed by the corporation under section 1322 of this title or to which assets are required to be allocated under section 1344 of this title. In the event the plan administrator is later determined not to have met the re- quirements for distress termination, any benefits which are not paid solely by rea- son of compliance with subclause (IV) shall be due and payable immediately (to- gether with interest, at a reasonable rate, in accordance with regulations of the cor- poration). (d) Sufficiency For purposes of this section— (1) Sufficiency for benefit liabilities A single-employer plan is sufficient for ben- efit liabilities if there is no amount of un- funded benefit liabilities under the plan. (2) Sufficiency for guaranteed benefits A single-employer plan is sufficient for guar- anteed benefits if there is no amount of un- funded guaranteed benefits under the plan. (e) Limitation on the conversion of a defined benefit plan to a defined contribution plan The adoption of an amendment to a plan which causes the plan to become a plan de- scribed in section 1321(b)(1) of this title con- stitutes a termination of the plan. Such an amendment may take effect only after the plan Page 668 TITLE 29—LABOR § 1341 satisfies the requirements for standard termi- nation under subsection (b) or distress termi- nation under subsection (c). (Pub. L. 93–406, title IV, § 4041, Sept. 2, 1974, 88 Stat. 1020; Pub. L. 96–364, title IV, § 403(d), Sept. 26, 1980, 94 Stat. 1301; Pub. L. 99–272, title XI, §§ 11007, 11008(a), (b), 11009, Apr. 7, 1986, 100 Stat. 244, 247, 248; Pub. L. 100–203, title IX, §§ 9312(c)(1), (2), 9313(a)(1)–(2)(E), (b)(1)–(5), 9314(a), Dec. 22, 1987, 101 Stat. 1330–363 to 1330–366; Pub. L. 101–239, title VII, §§ 7881(f)(7), (g)(1)–(6), 7893(c), (d), Dec. 19, 1989, 103 Stat. 2440, 2441, 2447; Pub. L. 103–465, title VII, §§ 776(b)(3), 778(a)(1), (b)(1), Dec. 8, 1994, 108 Stat. 5048–5050; Pub. L. 109–280, title IV, § 409(a), title V, § 506(a), Aug. 17, 2006, 120 Stat. 933, 946; Pub. L. 110–458, title I, §§ 104(d), 105(e)(1), Dec. 23, 2008, 122 Stat. 5104, 5105.) Editorial Notes REFERENCES IN TEXT Section 412, referred to in subsecs. (b)(2)(A) and (c)(2)(A), was amended generally by Pub. L. 109–280, title I, § 111(a), Aug. 17, 2006, 120 Stat. 820, and as so amended, no longer contains a subsec. (i). Chapter 11, referred to in subsec. (c)(2)(B)(ii)(IV), probably means chapter 11 of Title 11, Bankruptcy. AMENDMENTS 2008—Subsec. (b)(5)(A). Pub. L. 110–458, § 104(d), sub- stituted ‘‘subparagraphs (B) and (D)’’ for ‘‘subpara- graph (B)’’ in introductory provisions. Subsec. (c)(2)(D)(i). Pub. L. 110–458, § 105(e)(1), sub- stituted ‘‘subparagraph (A) or the regulations under subsection (a)(2)’’ for ‘‘subsection (a)(2)’’. 2006—Subsec. (b)(5). Pub. L. 109–280, § 409(a), added par. (5). Subsec. (c)(1)(C). Pub. L. 109–280, § 506(a)(2), sub- stituted ‘‘subparagraphs (B) and (D)’’ for ‘‘subpara- graph (B)’’. Subsec. (c)(2)(D). Pub. L. 109–280, § 506(a)(1), added sub- par. (D). 1994—Subsec. (b)(2)(C)(i)(I). Pub. L. 103–465, § 778(a)(1)(A), added subcl. (I) and struck out former subcl. (I) which read as follows: ‘‘It has reason to be- lieve that any requirement of subsection (a)(2) or sub- paragraph (A) or (B) has not been met, or’’. Subsec. (b)(2)(C)(i)(III). Pub. L. 103–465, § 778(a)(1)(B), (C), added subcl. (III). Subsec. (b)(3)(A)(ii). Pub. L. 103–465, § 776(b)(3), in- serted at end ‘‘A transfer of assets to the corporation in accordance with section 1350 of this title on behalf of a missing participant shall satisfy this subparagraph with respect to such participant.’’ Subsec. (c)(2)(B)(i)(I). Pub. L. 103–465, § 778(b)(1), in- serted ‘‘Federal law or’’ after ‘‘under any similar’’. 1989—Subsec. (b)(2)(A). Pub. L. 101–239, § 7881(g)(6), re- aligned margin of last sentence. Subsec. (b)(2)(B). Pub. L. 101–239, § 7893(c), realigned margin of last sentence. Subsec. (b)(3)(B). Pub. L. 101–239, § 7881(g)(4), inserted period at end. Subsec. (c)(2)(A)(ii). Pub. L. 101–239, § 7881(g)(3), in in- troductory provisions, inserted ‘‘unless the corporation determines the information is not necessary for pur- poses of paragraph (3)(A) or section 1362 of this title,’’ before ‘‘certification’’, in subcl. (I), inserted ‘‘and, if ap- plicable, the proposed distribution date’’ after ‘‘termi- nation date’’, and in subcls. (II) to (V), substituted ‘‘dates’’ for ‘‘date’’. Subsec. (c)(2)(A)(iii)(II). Pub. L. 101–239, § 7881(f)(7)(A), (B), struck out ‘‘(or its designee under section 1349(b) of this title)’’ before ‘‘to be able’’ and substituted ‘‘section 1322(c) of this title’’ for ‘‘section 1349 of this title’’. Subsec. (c)(2)(B). Pub. L. 101–239, § 7881(g)(2), sub- stituted ‘‘(as of the proposed termination date)’’ for ‘‘(as of the termination date)’’. Subsec. (c)(2)(B)(i), (ii). Pub. L. 101–239, § 7881(g)(5), made clarifying amendment to directory language of Pub. L. 100–203, § 9313(b)(3), see 1987 Amendment note below. Subsec. (c)(3)(C)(i). Pub. L. 101–239, § 7881(f)(7)(C), struck out at end ‘‘If the corporation concurs in the finding of the plan administrator (or the corporation itself makes such a finding) the corporation shall take the actions set forth in subparagraph (B)(ii)(II) relating to the trust established for purposes of section 1349 of this title.’’ Subsec. (c)(3)(D). Pub. L. 101–239, § 7893(d)(1), realigned margins. Subsec. (c)(3)(D)(ii)(I). Pub. L. 101–239, § 7893(d)(2), sub- stituted ‘‘under this subsection’’ for ‘‘of this sub- section’’. Subsec. (d)(1). Pub. L. 101–239, § 7881(g)(1), substituted ‘‘sufficient for benefit liabilities’’ for ‘‘sufficient for benefit commitments’’. 1987—Subsec. (b)(1)(D). Pub. L. 100–203, § 9313(a)(1), amended subpar. (D) generally. Prior to amendment, subpar. (D) read as follows: ‘‘when the final distribution of assets occurs, the plan is sufficient for benefit com- mitments (determined as of the termination date).’’ Subsec. (b)(2)(A). Pub. L. 100–203, § 9314(a)(1)(B), in- serted at end ‘‘Clause (i) and clause (iii)(I) shall not apply to a plan described in section 412(i) of title 26.’’ Subsec. (b)(2)(A)(i). Pub. L. 100–203, § 9313(a)(2)(A), sub- stituted ‘‘benefit liabilities’’ for ‘‘benefit commit- ments’’ in subcls. (II) and (III). Subsec. (b)(2)(A)(iii). Pub. L. 100–203, § 9314(a)(1)(A), added cl. (iii) and struck out former cl. (iii) which read as follows: ‘‘certification by the plan administrator that the information on which the enrolled actuary based the certification under clause (i) and the infor- mation provided to the corporation under clause (ii) are accurate and complete.’’ Subsec. (b)(2)(B). Pub. L. 100–203, § 9313(a)(2)(B), sub- stituted ‘‘the amount of the benefit liabilities (if any) attributable to such person’’ for ‘‘the amount of such person’s benefit commitments (if any)’’ in cl. (i), and ‘‘such benefit liabilities’’ for ‘‘such benefit commit- ments’’ in cl. (ii). Subsec. (b)(2)(C)(i)(II), (D)(ii). Pub. L. 100–203, § 9313(a)(2)(A), substituted ‘‘benefit liabilities’’ for ‘‘ben- efit commitments’’. Subsec. (b)(3)(A)(i). Pub. L. 100–203, § 9313(a)(2)(C)(i), added cl. (i) and struck out former cl. (i) which read as follows: ‘‘purchase irrevocable commitments from an insurer to provide the benefit liabilities under the plan and all other benefits (if any) under the plan to which assets are required to be allocated under section 1344 of this title, or’’. Pub. L. 100–203, § 9313(a)(2)(A), substituted ‘‘benefit li- abilities’’ for ‘‘benefit commitments’’. Subsec. (b)(3)(A)(ii). Pub. L. 100–203, § 9313(a)(2)(C)(i), added cl. (ii) and struck out former cl. (ii) which read as follows: ‘‘in accordance with the provisions of the plan and any applicable regulations of the corporation, otherwise fully provide the benefit liabilities under the plan and all other benefits (if any) under the plan to which assets are required to be allocated under section 1344 of this title.’’ Pub. L. 100–203, § 9313(a)(2)(A), substituted ‘‘benefit li- abilities’’ for ‘‘benefit commitments’’. Subsec. (b)(3)(B). Pub. L. 100–203, § 9313(a)(2)(C)(ii), substituted ‘‘so as to pay all benefit liabilities under the plan’’ for ‘‘so as to pay the benefit liabilities under the plan and all other benefits under the plan to which assets are required to be allocated under section 1344 of this title.’’ Pub. L. 100–203, § 9313(a)(2)(A), substituted ‘‘benefit li- abilities’’ for ‘‘benefit commitments’’. Subsec. (c)(2)(A). Pub. L. 100–203, § 9314(a)(1)(B), in- serted at end ‘‘Clause (ii) and clause (iv)(I) shall not apply to a plan described in section 412(i) of title 26.’’ Subsec. (c)(2)(A)(ii). Pub. L. 100–203, § 9313(a)(2)(D), substituted ‘‘benefit liabilities’’ for ‘‘benefit commit- ments’’ in subcls. (II) and (III). Subsec. (c)(2)(A)(iii). Pub. L. 100–203, § 9313(a)(2)(D), substituted ‘‘benefit liabilities’’ for ‘‘benefit commit- ments’’ in introductory provision. Page 669 TITLE 29—LABOR § 1341 Subsec. (c)(2)(A)(iv). Pub. L. 100–203, § 9314(a)(2)(A), added cl. (iv) and struck out former cl. (iv) which read as follows: ‘‘certification by the plan administrator that the information on which the enrolled actuary based the certifications under clause (ii) and the infor- mation provided to the corporation under clauses (i) and (iii) are accurate and complete.’’ Subsec. (c)(2)(B). Pub. L. 100–203, § 9313(b)(1)(A), sub- stituted ‘‘a member’’ for ‘‘a substantial member’’ in in- troductory provisions. Subsec. (c)(2)(B)(i). Pub. L. 100–203, § 9313(b)(3), as amended by Pub. L. 101–239, § 7881(g)(5), substituted ‘‘proposed termination date’’ for ‘‘termination date’’ in subcls. (I) and (II). Pub. L. 100–203, § 9313(b)(4), inserted ‘‘(or a case de- scribed in clause (ii) filed by or against such person has been converted, as of such date, to a case in which liq- uidation is sought)’’ in subcl. (I). Subsec. (c)(2)(B)(ii)(I). Pub. L. 100–203, § 9313(b)(3), as amended by Pub. L. 101–239, § 7881(g)(5), substituted ‘‘proposed termination date’’ for ‘‘termination date’’. Subsec. (c)(2)(B)(ii)(II). Pub. L. 100–203 § 9313(b)(5)(A), struck out ‘‘and’’ at end. Pub. L. 100–203, § 9313(b)(3), as amended by Pub. L. 101–239, § 7881(g)(5), substituted ‘‘proposed termination date’’ for ‘‘termination date’’. Subsec. (c)(2)(B)(ii)(III). Pub. L. 100–203, § 9313(b)(5)(C), added subcl. (III). Former subcl. (III) redesignated (IV). Subsec. (c)(2)(B)(ii)(IV). Pub. L. 100–203, § 9313(b)(2), (5)(B), (D), redesignated former subcl. (III) as (IV) and substituted ‘‘(or such other appropriate court) deter- mines that, unless the plan is terminated, such person will be unable to pay all its debts pursuant to a plan of reorganization and will be unable to continue in busi- ness outside the chapter 11 reorganization process and approves the termination’’ for ‘‘(or other appropriate court in a case under such similar law of a State or po- litical subdivision) approves the termination’’. Subsec. (c)(2)(C), (D). Pub. L. 100–203, § 9313(b)(1)(B), redesignated former subpar. (D) as (C) and struck out former subpar. (C) which read as follows: ‘‘For purposes of subparagraph (B), the term ‘substantial member’ of a controlled group means a person whose assets com- prise 5 percent or more of the total assets of the con- trolled group as a whole.’’ Subsec. (c)(3)(A). Pub. L. 100–203, § 9313(a)(2)(D), sub- stituted ‘‘benefit liabilities’’ for ‘‘benefit commit- ments’’ in heading and in cl. (ii). Subsec. (c)(3)(B)(i). Pub. L. 100–203, § 9313(a)(2)(D), sub- stituted in heading and text ‘‘benefit liabilities’’ for ‘‘benefit commitments’’. Subsec. (c)(3)(B)(ii). Pub. L. 100–203, § 9313(a)(2)(D), substituted in heading and text ‘‘benefit liabilities’’ for ‘‘benefit commitments’’. Pub. L. 100–203, § 9312(c)(1), struck out former subcl. (I) designation and substituted comma for dash before ‘‘the plan administrator’’, substituted period for ‘‘, and’’ after ‘‘termination of the plan’’, and struck out former subcl. (II) which read as follows: ‘‘the corpora- tion shall establish a separate trust in connection with the plan for purposes of section 1349 of this title.’’ Subsec. (c)(3)(B)(iii). Pub. L. 100–203, § 9312(c)(2), struck out former subcl. (I) designation and substituted comma for dash before ‘‘the corporation shall com- mence’’, substituted period for ‘‘, and’’ after ‘‘section 1342 of this title’’, and struck out former subcl. (II) which read as follows: ‘‘the corporation shall establish a separate trust in connection with the plan for pur- poses of section 1349 of this title unless the corporation determines that all benefit commitments under the plan are benefits guaranteed by the corporation under section 1322 of this title.’’ Subsec. (c)(3)(C)(i). Pub. L. 100–203, § 9313(a)(2)(D), sub- stituted in heading and text ‘‘benefit liabilities’’ for ‘‘benefit commitments’’. Subsec. (c)(3)(D)(ii)(IV). Pub. L. 100–203, § 9313(a)(2)(D), substituted ‘‘benefit liabilities’’ for ‘‘benefit commit- ments’’. Subsec. (d)(1). Pub. L. 100–203, § 9313(a)(2)(E), sub- stituted in text, ‘‘no amount of unfunded benefit liabil- ities’’ for ‘‘no amount of unfunded benefit commit- ments’’ and in heading, ‘‘benefit liabilities’’ for ‘‘ben- efit commitments’’. 1986—Subsec. (a). Pub. L. 99–272, § 11007(a), added sub- sec. (a) relating to general rules governing single-em- ployer plan terminations and struck out former subsec. (a) relating to filing of notice that the plan is to be ter- minated. Subsec. (b). Pub. L. 99–272, §§ 11007(a), 11008(a), added subsec. (b) relating to standard termination of single- employer plans and struck out former subsec. (b) relat- ing to notice of sufficiency of plan assets. Subsec. (c). Pub. L. 99–272, §§ 11007(a), 11009(a), added subsec. (c) relating to distress termination of single- employer plans and struck out former subsec. (c) relat- ing to a finding and notice of inability to determine that the assets of a plan are sufficient. Subsec. (d). Pub. L. 99–272, § 11007(b), amended subsec. (d) generally, substituting provisions relating to suffi- ciency for benefit commitments and for guaranteed benefits, for provisions relating to an extension of the 90-day period upon written agreement. Subsec. (e). Pub. L. 99–272, § 11009(b), redesignated sub- sec. (f) as (e) and struck out former subsec. (e) which related to notification and appropriate proceedings upon a finding after authorized commencement of ter- mination that the plan is unable to pay basic benefits when due. Subsec. (f). Pub. L. 99–272, § 11009(b)(2), redesignated subsec. (f) as (e). Pub. L. 99–272, § 11008(b), amended subsec. (f) gen- erally, substituting provisions relating to limitation on the conversion of a defined benefit plan to a defined contribution plan, for provisions relating to amend- ment of a plan with respect to which basic benefits are guaranteed. 1980—Subsec. (a). Pub. L. 96–364, § 403(d)(2), inserted ‘‘single-employer’’ after ‘‘termination of a’’. Subsec. (g). Pub. L. 96–364, § 403(d)(3), struck out sub- sec. (g) which related to petition to the appropriate court for appointment of a trustee. 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 Pub. L. 109–280, title IV, § 409(b), Aug. 17, 2006, 120 Stat. 934, provided that: ‘‘The amendments made by this section [amending this section] shall apply to any transaction or series of transactions occurring on and after the date of the enactment of this Act [Aug. 17, 2006].’’ Pub. L. 109–280, title V, § 506(c), Aug. 17, 2006, 120 Stat. 948, provided that: ‘‘(1) IN GENERAL.—The amendments made by this sec- tion [amending this section and section 1342 of this title] shall apply to any plan termination under title IV of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1301 et seq.) with respect to which the notice of intent to terminate (or in the case of a termi- nation by the Pension Benefit Guaranty Corporation, a notice of determination under section 4042 of such Act (29 U.S.C. 1342)) occurs after the date of enactment of this Act [Aug. 17, 2006]. ‘‘(2) TRANSITION RULE.—If notice under section 4041(c)(2)(D) or 4042(c)(3) of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1341(c)(2)(D), 1342(c)(3)] (as added by this section) would otherwise be required to be provided before the 90th day after the date of the enactment of this Act [Aug. 17, 2006], such notice shall not be required to be provided until such 90th day.’’ EFFECTIVE DATE OF 1994 AMENDMENT Amendment by section 776(b)(3) of Pub. L. 103–465 ef- fective with respect to distributions that occur in plan Page 670 TITLE 29—LABOR § 1341 years commencing on or after Jan. 1, 1996, see section 776(e) of Pub. L. 103–465, set out as a note under section 1056 of this title. Pub. L. 103–465, title VII, § 778(a)(2), Dec. 8, 1994, 108 Stat. 5049, provided that: ‘‘The amendments made by this subsection [amending this section] shall apply to any plan termination under section 4041(b) of the Em- ployee Retirement Income Security Act of 1974 [subsec. (b) of this section] with respect to which the Pension Benefit Guaranty Corporation has not, as of the date of enactment of this Act [Dec. 8, 1994], issued a notice of noncompliance that has become final, or otherwise issued a final determination that the plan termination is nullified.’’ Pub. L. 103–465, title VII, § 778(b)(2), Dec. 8, 1994, 108 Stat. 5050, provided that: ‘‘The amendment made by this subsection [amending this section] shall be effec- tive as if included in the Single-Employer Pension Plan Amendments Act of 1986 [Pub. L. 99–272, title XI].’’ EFFECTIVE DATE OF 1989 AMENDMENT Amendment by section 7881(f)(7), (g)(1)–(6) of Pub. L. 101–239 effective, except as otherwise provided, as if in- cluded 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 7893(c), (d) of Pub. L. 101–239 effective as if included in the provision of the Single- Employer 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)(1), (2) of Pub. L. 100–203 applicable 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 section 1342 of this title after that date, see sec- tion 9312(d)(1) of Pub. L. 100–203, as amended, set out as a note under section 1301 of this title. Amendment by section 9313(a)(1)–(2)(E), (b)(1)–(5) of Pub. L. 100–203 applicable with respect to plan termi- nations under section 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, see sec- tion 9313(c) of Pub. L. 100–203, set out as a note under section 1301 of this title. EFFECTIVE DATE OF 1986 AMENDMENT Pub. L. 99–272, title XI, § 11019, Apr. 7, 1986, 100 Stat. 280, provided that: ‘‘(a) IN GENERAL.—Except as otherwise provided in this title, the amendments made by this title [see Short Title of 1986 Amendment note set out under sec- tion 1001 of this title] shall be effective as of January 1, 1986, except that such amendments shall not apply with respect to terminations for which— ‘‘(1) notices of intent to terminate were filed with the Pension Benefit Guaranty Corporation under sec- tion 4041 of the Employee Retirement Income Secu- rity Act of 1974 [29 U.S.C. 1341] before such date, or ‘‘(2) proceedings were commenced under section 4042 of such Act [29 U.S.C. 1342] before such date. ‘‘(b) TRANSITIONAL RULES.— ‘‘(1) IN GENERAL.—In the case of a single-employer plan termination for which a notice of intent to ter- minate was filed with the Pension Benefit Guaranty Corporation under section 4041 of the Employee Re- tirement Income Security Act of 1974 (as in effect be- fore the amendments made by this title) [29 U.S.C. 1341] on or after January 1, 1986, but before the date of the enactment of this Act [Apr. 7, 1986], the amend- ments made by this title [see Short Title of 1986 Amendment note set out under section 1001 of this title] shall apply with respect to such termination, as modified by paragraphs (2) and (3). ‘‘(2) DEEMED COMPLIANCE WITH NOTICE REQUIRE- MENTS.—The requirements of subsections (a)(2), (b)(1)(A), and (c)(1)(A) of section 4041 of the Employee Retirement Income Security Act of 1974 (as amended by this title) [29 U.S.C. 1341] shall be considered to have been met with respect to a termination de- scribed in paragraph (1) if— ‘‘(A) the plan administrator provided notice to the participants in the plan regarding the termi- nation in compliance with applicable regulations of the Pension Benefit Guaranty Corporation as in ef- fect on the date of the notice, and ‘‘(B) the notice of intent to terminate provided to the Pension Benefit Guaranty Corporation in con- nection with the termination was filed with the Corporation not less than 10 days before the pro- posed date of termination specified in the notice. For purposes of section 4041 of such Act (as amended by this title), the proposed date of termination speci- fied in the notice of intent to terminate referred to in subparagraph (B) shall be considered the proposed termination date. ‘‘(3) SPECIAL TERMINATION PROCEDURES.— ‘‘(A) IN GENERAL.—This paragraph shall apply with respect to any termination described in para- graph (1) if, within 90 days after the date of enact- ment of this Act [Apr. 7, 1986], the plan adminis- trator notifies the Corporation in writing— ‘‘(i) that the plan administrator wishes the ter- mination to proceed as a standard termination under section 4041(b) of the Employee Retirement Income Security Act of 1974 (as amended by this title) [29 U.S.C. 1341(b)] in accordance with sub- paragraph (B), ‘‘(ii) that the plan administrator wishes the ter- mination to proceed as a distress termination under section 4041(c) of such Act (as amended by this title) in accordance with subparagraph (C), or ‘‘(iii) that the plan administrator wishes to stop the termination proceedings in accordance with subparagraph (D). ‘‘(B) TERMINATIONS PROCEEDING AS STANDARD TER- MINATION.— ‘‘(i) TERMINATIONS FOR WHICH SUFFICIENCY NO- TICES HAVE NOT BEEN ISSUED.— ‘‘(I) IN GENERAL.—In the case of a plan termi- nation described in paragraph (1) with respect to which the Corporation has been provided the notification described in subparagraph (A)(i) and with respect to which a notice of suffi- ciency has not been issued by the Corporation before the date of the enactment of this Act, if, during the 90-day period commencing on the date of the notice required in subclause (II), all benefit commitments under the plan have been satisfied, the termination shall be treated as a standard termination under section 4041(b) of such Act (as amended by this title). ‘‘(II) SPECIAL NOTICE REGARDING SUFFICIENCY FOR TERMINATIONS FOR WHICH NOTICES OF SUFFI- CIENCY HAVE NOT BEEN ISSUED AS OF DATE OF EN- ACTMENT.—In the case of a plan termination de- scribed in paragraph (1) with respect to which the Corporation has been provided the notifica- tion described in subparagraph (A)(i) and with respect to which a notice of sufficiency has not been issued by the Corporation before the date of the enactment of this Act, the Corporation shall make the determinations described in sec- tion 4041(c)(3)(A)(i) and (ii) (as amended by this title) and notify the plan administrator of such determinations as provided in section 4041(c)(3)(A)(iii) (as amended by this title). ‘‘(ii) TERMINATIONS FOR WHICH NOTICES OF SUFFI- CIENCY HAVE BEEN ISSUED.—In the case of a plan termination described in paragraph (1) with re- spect to which the Corporation has been provided Page 671 TITLE 29—LABOR § 1341a the notification described in subparagraph (A)(i) and with respect to which a notice of sufficiency has been issued by the Corporation before the date of the enactment of this Act, clause (i)(I) shall apply, except that the 90-day period referred to in clause (i)(I) shall begin on the date of the enactment of this Act. ‘‘(C) TERMINATIONS PROCEEDING AS DISTRESS TER- MINATION.—In the case of a plan termination de- scribed in paragraph (1) with respect to which the Corporation has been provided the notification de- scribed in subparagraph (A)(ii), if the requirements of section 4041(c)(2)(B) of such Act (as amended by this title) are met, the termination shall be treated as a distress termination under section 4041(c) of such Act (as amended by this title). ‘‘(D) TERMINATION OF PROCEEDINGS BY PLAN ADMIN- ISTRATOR.— ‘‘(i) IN GENERAL.—Except as provided in clause (ii), in the case of a plan termination described in paragraph (1) with respect to which the Corpora- tion has been provided the notification described in subparagraph (A)(iii), the termination shall not take effect. ‘‘(ii) TERMINATIONS WITH RESPECT TO WHICH FINAL DISTRIBUTION OF ASSETS HAS COMMENCED.— Clause (i) shall not apply with respect to a termi- nation with respect to which the final distribu- tion of assets has commenced before the date of the enactment of this Act unless, within 90 days after the date of the enactment of this Act, the plan has been restored in accordance with proce- dures issued by the Corporation pursuant to sub- section (c). ‘‘(E) AUTHORITY OF CORPORATION TO EXTEND 90-DAY PERIODS TO PERMIT STANDARD TERMINATION.—The Corporation may, on a case-by-case basis in accord- ance with subsection (c), provide for extensions of the applicable 90-day period referred to in clause (i) or (ii) of subparagraph (B) if it is demonstrated to the satisfaction of the Corporation that— ‘‘(i) the plan could not otherwise, pursuant to the preceding provisions of this paragraph, termi- nate in a termination treated as a standard ter- mination under section 4041(b) of the Employee Retirement Income Security Act of 1974 (as amended by this title), and ‘‘(ii) the extension would result in a greater likelihood that benefit commitments under the plan would be paid in full, except that any such period may not be so extended beyond one year after the date of the enactment of this Act. ‘‘(c) AUTHORITY TO PRESCRIBE TEMPORARY PROCE- DURES.—The Pension Benefit Guaranty Corporation may prescribe temporary procedures for purposes of carrying out the amendments made by this title [see Short Title of 1986 Amendment note set out under sec- tion 1001 of this title] during the 180-day period begin- ning on the date described in subsection (a).’’ 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. 60-DAY EXTENSION BY PENSION BENEFIT GUARANTY CORPORATION FOR NOTICE OF NONCOMPLIANCE Pub. L. 99–272, title XI, § 11008(c), Apr. 7, 1986, 100 Stat. 247, provided that: ‘‘In the case of a standard termi- nation of a plan under section 4041(b) of the Employee Retirement Income Security Act of 1974 (as amended by this section) [29 U.S.C. 1341(b)] with respect to which a notice of intent to terminate is filed before 120 days after the date of the enactment of this Act [Apr. 7, 1986], the Pension Benefit Guaranty Corporation may, without the consent of the plan administrator, extend the 60-day period under section 4041(b)(2)(C)(i) of such Act (as so amended) for a period not to exceed 60 days.’’ SPECIAL TEMPORARY RULE FOR TERMINATION OF SINGLE-EMPLOYER PLAN Pub. L. 99–272, title XI, § 11008(d), Apr. 7, 1986, 100 Stat. 247, provided that: ‘‘(1) REQUIREMENTS TO BE MET BEFORE FINAL DISTRIBU- TION OF ASSETS.—In the case of the termination of a single-employer plan described in paragraph (2) with re- spect to which the amount payable to the employer pursuant to section 4044(d) [29 U.S.C. 1344(d)] exceeds $1,000,000 (determined as of the proposed date of final distribution of assets), the final distribution of assets pursuant to such termination may not occur unless the Pension Benefit Guaranty Corporation— ‘‘(A) determines that the assets of the plan are suf- ficient for benefit commitments (within the meaning of section 4041(d)(1) of the Employee Retirement In- come Security Act of 1974 (as amended by section 11007) [29 U.S.C. 1341(d)(1)]) under the plan, and ‘‘(B) issues to the plan administrator a written no- tice setting forth the determination described in sub- paragraph (A). ‘‘(2) PLANS TO WHICH SUBSECTION APPLIES.—A single- employer plan is described in this paragraph if— ‘‘(A) the plan administrator has filed a notice of in- tent to terminate with the Pension Benefit Guaranty Corporation, and— ‘‘(i) the filing was made before January 1, 1986, and the Corporation has not issued a notice of suffi- ciency for such plan before the date of the enact- ment of this Act [Apr. 7, 1986], or ‘‘(ii) the filing is made on or after January 1, 1986, and before 60 days after the date of the enactment of this Act and the Corporation has not issued a no- tice of sufficiency for such plan before the date of the enactment of this Act, and ‘‘(B) of the persons who are (as of the termination date) participants in the plan, the lesser of 10 percent or 200 have filed complaints with the Corporation re- garding such termination— ‘‘(i) in the case of plans described in subparagraph (A)(i), before 15 days after the date of the enact- ment of this Act, or ‘‘(ii) in any other case, before the later of 15 days after the date of the enactment of this Act or 45 days after the date of the filing of such notice. ‘‘(3) CONSIDERATION OF COMPLAINTS.—The Corporation shall consider and respond to such complaints not later than 90 days after the date on which the Corporation makes the determination described in paragraph (1)(A). The Corporation may hold informal hearings to expe- dite consideration of such complaints. Any such hear- ing shall be exempt from the requirements of chapter 5 of title 5, United States Code. ‘‘(4) DELAY ON ISSUANCE OF NOTICE.— ‘‘(A) GENERAL RULE.—Except as provided in sub- paragraph (B), the Corporation shall not issue any notice described in paragraph (1)(B) until 90 days after the date on which the Corporation makes the determination described in paragraph (1)(A). ‘‘(B) EXCEPTION IN CASES OF SUBSTANTIAL BUSINESS HARDSHIP.—Except in the case of an acquisition, take- over, or leveraged buyout, the preceding provisions of this subsection shall not apply if the contributing sponsor demonstrates to the satisfaction of the Cor- poration that the contributing sponsor is experi- encing substantial business hardship. For purposes of this subparagraph, a contributing sponsor shall be considered as experiencing substantial business hard- ship if the contributing sponsor has been operating, and can demonstrate that the contributing sponsor will continue to operate, at an economic loss.’’ § 1341a. Termination of multiemployer plans (a) Determinative factors Termination of a multiemployer plan under this section occurs as a result of— (1) the adoption after September 26, 1980, of a plan amendment which provides that par-