Page:United States Statutes at Large Volume 94 Part 1.djvu/1288

 94 STAT. 1238

Annual payment.

Default.

29 USC 1106.

PUBLIC LAW 96-364—SEPT. 26, 1980

Withdrawal by an employer from a plan, during a period of 3 consecutive plan years within which substantially all the employers who have an obligation to contribute under the plan withdraw, shall be presumed to be a withdrawal pursuant to an agreement or arrangement, unless the employer proves otherwise by a preponderance of the evidence. "(E) In the case of a partial withdrawal described in section 4205(a), the amount of each annual payment shall be the product of— "(i) the amount determined under subparagraph (C) (determined without regard to this subparagraph), multiplied by "(ii) the fraction determined under section 4206(a)(2). "(2) Withdrawal liability shall be payable in accordance with the schedule set forth by the plan sponsor under subsection (b)(1) beginning no later than 60 days after the date of the demand notwithstanding any request for review or appeal of determinations of the amount of such liability or of the schedule. "(3) Each annual payment determined under paragraph (1)(C) shall be payable in 4 equal installments due quarterly, or at other intervals specified by plan rules. If a payment is not made when due, interest on the payment shall accrue from the due date until the date on which the payment is made. "(4) The employer shall be entitled to prepay the outstanding amount of the unpaid annual withdrawal liability payments determined under paragraph (I)(C), plus accrued interest, if any, in whole or in part, without penalty. If the prepa5mient is made pursuant to a withdrawal which is later determined to be part of a withdrawEd described in paragraph (I)(D), the withdrawal liability of the employer shall not be limited to the amount of the prepa5m[ient. "(5) In the event of a default, a plan sponsor may require immediate payment of the outstanding amount of an employer's withdrawal liability, plus accrued interest on the total outstanding liability from the due date of the first payment which was not timely made. For purposes of this section, the term 'default' means— "(A) the failure of an employer to make, when due, any payment under this section, if the failure is not cured within 60 days after the employer receives written notification from the plan sponsor of such failure, and "(B) any other event defined in rules adopted by the plan which indicates a substantial likelihood that an employer will be unable to pay its withdrawal liability. "(6) Except as provided in paragraph (l)(A)(ii), interest under this subsection shall be charged at rates based on prevailing market rates for comparable obligations, in accordance with regulations prescribed by the corporation. "(7) A multiemployer plan may adopt rules for other terms and conditions for the satisfaction of an employer's withdrawal liability if such rules— "(A) are consistent with this Act, and "(B) are not inconsistent with regulations of the corporation. "(8) In the case of a terminated multiemployer plan, an employer's obligation to make payments under this section ceases at the end of the plan year in which the assets of the plan (exclusive of withdrawal liability claims) are sufficient to meet all obligations of the plan, as determined by the corporation. "(d) The prohibitions provided in section 406(a) do not apply to any action required or permitted under this part.

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