Page:United States Statutes at Large Volume 88 Part 1.djvu/1069

 1 STAT. ]

PUBLIC LAW 93-406-SEPT. 2, 1974

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(2) whenever any other event occurs which the Secretary of the Treasury believes indicates that the plan may not be sound, (d) The Secretary of Labor shall notify the corporation— (1) whenever a reportable event described in paragraph (1), (5), or (8) of subsection (b) occurs, or (2) whenever any other event occurs which the Secretary of Labor believes indicates that the plan may not be sound. ALLOCATION OF ASSETS

SEC. 4044. (a) In the case of the termination of a define.! benefit plan, the plan administrator shall allocate the assets of the plan (available to provide benefits) among the participants and beneficiaries of the plan in the following order: (1) First, to that portion of each individual's accured benefit which is derived from the participant's contributions to the plan which were not mandatory contributions. (2) Second, to that portion of each individual's accrued benefit which is derived from the participant's mandatory contributions. (3) Third, in the case of benefits payable as an annuity— (A) in the case of the benefit of a participant or beneficiary which was in pay status as of the beginning of the 3-year period ending on the termination date of the plan, to each such benefit, based on the provisions of the plan (as in effect during the 5-year period ending on such date) under which such benefit would be the least, (B) in the case of a participant's or beneficiary's benefit (other than a benefit described in subparagraph (A)) which would have been in pay status as of the beginning of such 3-year period if the participant had retired prior to the beginning of the 3-year period and if his benefits had commenced (in the normal form of annuity under the plan) as of the beginning of such period, to each such benefit based on the provisions of the plan (as in effect during the 5-year period ending on such date) under which such benefit would be the least. For purposes of subparagraph (A), the lowest benefit in pay status during a 3-year period shall be considered the benefit in pay status for such period. (4) Fourth— (A) to all other benefits (if any) of individuals under the plan guaranteed under this title (determined without regard to section 4022(b)(5)), and (B) to the additional benefits (if any) which would be determined under subparagraph (A) if section 4022(b)(6) did not apply. For purposes of this paragraph, section 4021 shall be applied without regard to subsection (c) thereof. (5) Fifth, to all other nonforfeitable benefits under the plan. (6) Sixth, to all other benefits under the plan, (b) For purposes of subsection (a) — (1) The amount allocated under any paragraph of subsection (a) with respect to any benefit shall be properly adjusted for any allocation of assets with respect to that benefit under a prior paragraph of subsection (a). (2) If the assets available for allocation under any paragraph of subsection (a) (other than paragraphs (5) and (6)) are insufficient to satisfy in full the benefits of all individuals which are

29 USC 1344.

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