Page:United States Statutes at Large Volume 100 Part 1.djvu/295

 PUBLIC LAW 99-272—APR. 7, 1986

100 STAT. 259

"(b) DESIGNATION OF FIDUCIARY BY THE CORPORATION.— "(1) PURPOSES FOR DESIGNATION OF FIDUCIARY.— "(A) COLLECTION OP LIABILITY.—The corporation

shall designate a fiduciary (within the meaning of section 3(21)) to 29 USC 1002. serve as trustee of the trust for purposes of conducting negotiations and assessing and collecting liability pursuant to section 4062(c). 29 USC 1362. "(B) ADMINISTRATION OF TRUST.— "(i) CORPORATION'S FUNCTIONS.—Except as provided

in clause (ii), the corporation shall serve as trustee of the trust for purposes of administering the trust, including making distributions from the trust to participants and beneficiaries. "(ii) DESIGNATION OF FIDUCIARY IF COST-EFFECTIVE.—If

the corporation determines that it would be cost-effective to do so, it may designate a fiduciary (within the meaning of section 3(21)), including the fiduciary designated under subparagraph (A), to perform the functions described in clause (i). "(2) FIDUCIARY REQUIREMENTS.—A fiduciary designated under paragraph (1) shall be— "(A) independent of each contributing sponsor of the plan and the members of such sponsor's controlled group, and "(B) subject to the requirements of part 4 of subtitle B of title I (other than section 406(a)) as if such trust were a plan 29 USC 1101, subject to such part. 1106"(c) DISTRIBUTIONS FROM TRUST.—

"(1) IN GENERAL.—Not later than 30 days after the end of each liability payment year (described in section 4062(e)(3)) with 29 USC 1362. respect to a terminated single-employer plan, the corporation, or its designee under subsection (b), shall distribute from the trust maintained pursuant to subsection (a) to each person who was (as of the termination date) a participant or beneficiary under the plan— "(A) in any case not described in subparagraph (B), an amount equal to the outstanding amount of benefit commitments to such person under the plan (including interest calculated from the termination date), to the extent not previously paid under this paragraph, or "(B) in any case in which the balance in the trust at the end of such year which is in cash or may be prudently converted to cash (after taking into account liability payments received under subsection (a)(1) and administrative expenses paid under subsection (a)(3)) is less than the total of all amounts described in subparagraph (A) in connection with all persons who were (as of the termination date) participants and beneficiaries under the terminated plan, the product derived by multiplying— "(i) the amount described in subparagraph (A) in connection with each such person, by "(ii) a fraction— "(I) the numerator of which is such balance in the trust, and "(II) the denominator of which is equal to the total of all amounts described in subparagraph (A) in connection with all persons who were (as of the

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