Page:United States Statutes at Large Volume 94 Part 1.djvu/1266

 94 STAT. 1216 Plan termination.

PUBLIC LAW 96-364—SEPT. 26, 1980 "(2) the date on which a multiemployer plan, whether or not terminated, begins receiving financial assistance from the corporation shall be considered a date of plan termination.".

SEC. 103. TERMINATION FOR MULTIEMPLOYER PLANS.

Subtitle C of title IV is amended by inserting after section 4041 the following new section: " TERMINATION O P MULTIEMPLOYER PLANS 29 USC 1341a.

Ante, p. 1208.

Post, p. 1218.

29 USC 1321.

Post, p. 1261.

Benefits, payment.

"SEC. 4041A. (a) Termination of a multiemployer plan under this section occurs as a result of— "(1) the adoption after the date of enactment of the Multiemployer Pension Plan Amendments Act of 1980 of a plan amendment which provides that participants will receive no credit for any purpose under the plan for service with any employer after the date specified by such amendment; "(2) the withdrawal of every employer from the plan, within the meaning of section 4203, or the cessation of the obligation of all employers to contribute under the plan; or "(3) the adoption of an amendment to the plan which causes the plan to become a plan described in section 4021(b)(1). "(b)(1) The date on which a plan terminates under paragraph (1) or (3) of subsection (a) is the later of— "(A) the date on which the amendment is adopted, or "(B) the date on which the amendment takes effect. "(2) The date on which a plan terminates under paragraph (2) of subsection (a) is the earlier of— "(A) the date on which the last employer withdraws, or "(B) the first day of the first plan year for which no employer contributions were required under the plan. "(c) Except as provided in subsection (f)(1), the plan sponsor of a plan which terminates under paragraph (2) of subsection (a) shall— "(1) limit the payment of benefits to benefits which are nonforfeitable under the plan as of the date of the termination, and "(2) pay benefits attributable to employer contributions, other than death benefits, only in the form of an annuity, unless the plan assets are distributed in full satisfaction of all nonforfeitable benefits under the plan. "(d) The plan sponsor of a plan which terminates under paragraph (2) of subsection (a) shall reduce benefits and suspend benefit payments in accordance with section 4281. "(e) In the case of a plan which terminates under paragraph (1) or (3) of subsection (a), the rate of an employer's contributions under the plan for each plan year beginning on or after the plan termination date shall equal or exceed the highest rate of employer contributions at which the employer had an obligation to contribute under the plan in the 5 preceding plan years ending on or before the plan termination date, unless the corporation approves a reduction in the rate based on a finding that the plan is or soon will be fully funded. "(f)(1) The plan sponsor of a terminated plan may authorize the payment other than in the form of an annuity of a participant's entire nonforfeitable benefit attributable to employer contributions, other than a death benefit, if the value of the entire nonforfeitable benefit does not exceed $1,750. The corporation may authorize the payment of benefits under the terms of a terminated plan other than nonforfeitable benefits, or the payment other than in the form of an

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