Page:United States Statutes at Large Volume 100 Part 1.djvu/289

 PUBLIC LAW 99-272—APR. 7, 1986

100 STAT. 253

SEC. 11010. TERMINATION PROCEEDINGS; DUTIES OF THE CORPORATION. (a) MANDATORY COMMENCEMENT OF PROCEEDINGS UPON INABILITY OF SINGLE-EMPLOYER PLAN TO PAY BENEFITS THAT ARE CURRENTLY DUE.—

(1) IN GENERAL.—Section 4042(a) (29 U.S.C. 1342(a)) is amended— (A) in paragraph (2), by striking out "is" and inserting in lieu thereof "will be"; and (B) by inserting at the beginning of the matter following paragraph (4) the following new sentence: "The corporation shall as soon as practicable institute proceedings under this section to terminate a single-employer plan whenever the corporation determines that the plan does not have assets available to pay benefits which are currently due under the terms of the plan". (2) CONFORMING AMENDMENTS.—

(A) Section 4042(b)(1) (29 U.S.C. 1342(b)(1)) is amended, in the first sentence, by inserting "or is required under subsection (a) to institute proceedings under this section," after "to a plan". (B) Section 4042(c) (29 U.S.C. 1342(c)) is amended in the first sentence by striking out "If the corporation" and all that follows down through "has determined" and inserting in lieu thereof the following: "If the corporation is required under subsection (a) of this section to commence proceedings under this section with respect to a plan or, after issuing a notice under this section to a plan administrator, has determined". (b) ESTABLISHMENT OF SECTION 4049 TRUST.—Section 4042 is further amended by adding at the end thereof the following new subsection: "(i) In any case in which a plan is terminated under this section in a termination proceeding initiated by the corporation pursuant to subsection (a), the corporation shall establish a separate trust in connection with the plan for purposes of section 4049, unless the Post, p. 258. corporation determines that all benefit commitments under the plan are benefits guaranteed by the corporation under section 4022 or 29 USC 1322. that there is no amount of unfunded benefit commitments under the plan.". (c) CONFORMING AMENDMENT.—The heading for section 4042 is amended to read as follows: "INSTITUTION OF TERMINATION PROCEEDINGS BY THE CORPORATION", SEC. 11011. AMENDMENTS TO LIABILITY PROVISIONS; LIABILITIES RELATING TO BENEFIT COMMITMENTS IN EXCESS OF BENEFITS GUARANTEED BY THE CORPORATION. (a) LIABILITY FOR DISTRESS TERMINATIONS AND TERMINATIONS BY

THE CORPORATION.—Section 4062 (29 U.S.C. 1362) is amended— (1) by redesignating subsection (e) as subsection (f); and (2) by striking out so much as precedes subsection (f) (as redesignated) and inserting in lieu thereof the following:

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