Page:United States Statutes at Large Volume 94 Part 1.djvu/1340

 94 STAT. 1290 26 USC 413. 26 USC 4971. Ante, p. 1217. 26 USC 40L Post, p. 1308.

26 USC 501.

Ante, p. 1241.

26 USC 4975.

"Plan." Supra.

Ante, p. 1241.

PUBLIC LAW 96-364—SEPT. 26, 1980

(d) Section 413(b)(6) is amended by adding at the end thereof the following new sentence: "For purposes of this subsection and the last sentence of section 4971(a), an employer's withdrawal liability under part 1 of subtitle E of title IV of the Employee Retirement Income Secudty Act of 1974 shall not be treated as a liability for contributions under the plan.". (e) Section 401(a)(2), as amended by section 411(b) of this Act, is amended by inserting ", or the return of any withdrawal liability payment determined to be an overpayment within 6 months of such determination" after "501(a)". SEC. 209. WITHDRAWAL LIABILITY PAYMENT FUNDS. (a) Subsection (c) of section 501 (relating to list of exempt organizations) is amended by adding at the end thereof the following new paragraph: "(22) A trust created or organized in the United States and established in writing by the plan sponsors of multiemployer plans if— "(A) the purpose of such trust is exclusively— "(i) to pay any amount described in section 4223(c) or (h) of the Employee Retirement Income Security Act of 1974, and "(ii) to pay reasonable and necessary administrative expenses in connection with the establishment and operation of the trust and the processing of claims against the trust, "(B) no part of the assets of the trust may be used for, or diverted to, any purpose other than— "(i) the purposes described in subparagraph (A), or "(ii) the investment in securities, obligations, or time or demand deposits described in clause (ii) of paragraph (21)(B), "(C) such trust meets the requirements of paragraphs (2), (3), and (4) of section 4223(b), 4223(h), or, if applicable, section 4223(c) of the Employee Retirement Income Security Act of 1974, and "(D) the trust instrument provides that, on dissolution of the trust, assets of the trust may not be paid other than to plans which have participated in the plan or, in the case of a trust established under section 4223(h) of such Act, to plans with respect to which employers have participated in the fund.". (b) Subsection (e) of section 4975 (relating to tax on prohibited transactions) is amended by adding at the end thereof the following new paragraph: "(9) SECTION MADE APPLICABLE TO WITHDRAWAL LIABILITY PAYMENT FUNDS.—For purposes of this section—

"(A) IN GENERAL.—The term 'plan' includes a trust described in section 501(c)(22). "(B) DISQUALIFIED PERSON.—In the case of any trust to which this section applies by reason of subparagraph (A), the term 'disqualified person' includes any person who is a disqualified person with respect to any plan to which such trust is permitted to make payments under section 4223 of the Employee Retirement Income Security Act of 1974.". (c)(1) PSrt VI of subchapter B of chapter 1 (relating to itemized deductions for individuals and corporations) is amended by adding at the end thereof the following new section:

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