Page:United States Statutes at Large Volume 88 Part 1.djvu/1075

 88 STAT. ]

PUBLIC LAW 93-406-SEPT. 2, 1974

(3) If the plan terminates within the 5-year period commencing on the day of withdrawal, the corporation shall— (A) demand payment or realize on the bond and hold such amount in escrow for the benefit of the plan; (B) treat any escrowed payments under this section as if they were plan assets and apply them in a manner consistent with this subtitle; and (C) refund any amount to the employer which is not required to meet any obligation of the corporation with respect to the plan. (d) The provisions of this subsection apply in the case of a withdrawal described in subsection (a), and the provisions of subsections (b) and (c) shall not apply, if the corporation determines that the procedure provided for under this subsection is consistent with the purposes of this section and section 4064 and is more appropriate in the particular case. Upon a showing by the plan administrator of a plan that the withdrawal from the plan by any employer or employers has resulted, or will result, in a significant reduction in the amount of aggregate contributions to or under the plan by employers, the corporation may— (1) require the plan fund to be equitably allocated between those participants no longer working in covered service under the plan as a result of their employer's withdrawal, and those participants who remain in covered service under the plan; (2) treat that portion of the plan funds allocable under paragraph (1) to participants no longer in covered service as a termination; and (3) treat that portion of the plan fund allocable to participants remaining in covered service as a separate plan. (e) The corporation is authorized to waive the application of the provisions of subsections (b), (c), and (d) of this section to any employer or plan administrator whenever it determines that there is an indemnity agreement in effect among all other employers under the plan which is adequate to satisfy the purposes of this section and of section 4064.

1031

waiver.

LIABILITY o r EMPLOYERS ON TERMINATION OP PLAN MAINTAINED BY MORE THAN ONE EMPLOYER

SEC. 4064. (a) This section applies to all employers who maintain a plan under which more than one employer makes contributions at the time such plan is terminated, or who, at any time within the 5 plan years preceding the date of termination, made contributions under the plan. (b) The corporation shall determine the liability of each such employer in a manner consistent with section 4062 except that the amount of the liability determined under section 4062(b)(1) with respect to the entire plan shall be allocated to each employer by multiplying such amounts by a fraction— (1) the numerator of which is the amount required to be contributed to the plan by each employer for the last 5 plan years ending prior to the termination, and (2) the denominator of which is the total amount required to be contributed to the plan by all such employers for such last 5 years, and the limitation described in section 4062(b)(2) shall be applied separately to each employer. The corporation may also determine the liability of each such employer on any other equitable basis prescribed by the corporation in regulations.

29 USC 1364.

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