§1201 — Title 29 Labor | U.S. Code

§1201 Procedures in connection with the issuance of certain determination letters by the Secretary of the Treasury covering qualifications under Internal Revenue Code

Title 29 › Chapter CHAPTER 18— - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM › Subchapter SUBCHAPTER II— - JURISDICTION, ADMINISTRATION, ENFORCEMENT; JOINT PENSION TASK FORCE, ETC. › Subtitle Subtitle A— - Jurisdiction, Administration, and Enforcement › § 1201

Last updated Apr 6, 2026|Official source

Summary

Require anyone asking the Treasury for an advance letter saying a retirement plan is tax-qualified to give any extra papers the Labor Department needs and to prove they told every “interested” employee about the request (as defined under tax-code rules). After Treasury gets the application, it must allow comments for 45 days from any interested employee or group, the Secretary of Labor, and the Pension Benefit Guaranty Corporation (PBGC). The Secretary of Labor can only ask to comment if the PBGC or either 10 employees or 10 percent of the employees (whichever is fewer) asks in writing. Treasury must share requested application information with Labor. Labor then has 30 days after such a request to say whether it will comment and to point out any parts it will not address. If Labor declines on some issues, Treasury must let the PBGC and the employees comment on those matters. The PBGC and, if employees ask, the Secretary of Labor may join or start court actions under section 7476 of the tax code (the PBGC can bring cases in the U.S. Tax Court under its rules). If Treasury issues a favorable determination letter, it must notify Labor and give the requested materials. Labor will treat that letter as initial proof the plan meets several pension law standards (parts 2, 3, and 4), except it won’t count as initial proof for issues that deal only with part 4. If the application is withdrawn or denied, Treasury must tell Labor. The rules above do not apply to any application Treasury received before the date section 410 of the Internal Revenue Code applies to the plan (or would apply if the plan is later found qualified).

Title 29, §1201

Labor — Source: USLM XML via OLRC

(a)Before issuing an advance determination of whether a pension, profit-sharing, or stock bonus plan, a trust which is a part of such a plan, or an annuity or bond purchase plan meets the requirements of part I of subchapter D of chapter 1 of title 26, the Secretary of the Treasury shall require the person applying for the determination to provide, in addition to any material and information necessary for such determination, such other material and information as may reasonably be made available at the time such application is made as the Secretary of Labor may require under subchapter I of this chapter for the administration of that subchapter. The Secretary of the Treasury shall also require that the applicant provide evidence satisfactory to the Secretary that the applicant has notified each employee who qualifies as an interested party (within the meaning of regulations prescribed under section 7476(b)(1) of title 26 (relating to declaratory judgments in connection with the qualification of certain retirement plans)) of the application for a determination.

(b)(1)Whenever an application is made to the Secretary of the Treasury for a determination of whether a pension, profit-sharing, or stock bonus plan, a trust which is a part of such a plan, or an annuity or bond purchase plan meets the requirements of part I of subchapter D of chapter 1 of title 26, the Secretary shall upon request afford an opportunity to comment on the application at any time within 45 days after receipt thereof to—

(A)any employee or class of employee qualifying as an interested party within the meaning of the regulations referred to in subsection (a).11 So in original. The period probably should be a comma.

(B)the Secretary of Labor, and

(C)the Pension Benefit Guaranty Corporation.

(2)The Secretary of Labor may not request an opportunity to comment upon such an application unless he has been requested in writing to do so by the Pension Benefit Guaranty Corporation or by the lesser of—

(A)10 employees, or

(B)10 percent of the employees

(3)Upon receiving such a request from the Secretary of Labor, the Secretary of the Treasury shall furnish to the Secretary of Labor such information held by the Secretary of the Treasury relating to the application as the Secretary of Labor may request.

(4)The Secretary of Labor shall, within 30 days after receiving a request from the Pension Benefit Guaranty Corporation or from the necessary number of employees who qualify as interested parties, notify the Secretary of the Treasury, the Pension Benefit Guaranty Corporation, and such employees with respect to whether he is going to comment on the application to which the request relates and with respect to any matters raised in such request on which he is not going to comment. If the Secretary of Labor indicates in the notice required under the preceding sentence that he is not going to comment on all or part of the matters raised in such request, the Secretary of the Treasury shall afford the corporation, and such employees, an opportunity to comment on the application with respect to any matter on which the Secretary of Labor has declined to comment.

(c)The Pension Benefit Guaranty Corporation and, upon petition of a group of employees referred to in subsection (b)(2), the Secretary of Labor, may intervene in any action brought for declaratory judgment under section 7476 of title 26 in accordance with the provisions of such section. The Pension Benefit Guaranty Corporation is permitted to bring an action under such section 7476 under such rules as may be prescribed by the United States Tax Court.

(d)If the Secretary of the Treasury determines that a plan or trust to which this section applies meets the applicable requirements of part I of subchapter D of chapter 1 of title 26 and issues a determination letter to the applicant, the Secretary shall notify the Secretary of Labor of his determination and furnish such information and material relating to the application and determination held by the Secretary of the Treasury as the Secretary of Labor may request for the proper administration of subchapter I of this chapter. The Secretary of Labor shall accept the determination of the Secretary of the Treasury as prima facie evidence of initial compliance by the plan with the standards of parts 2, 3, and 4 of subtitle B of subchapter I of this chapter. The determination of the Secretary of the Treasury shall not be prima facie evidence on issues relating solely to part 4 of subtitle B of subchapter I. If an application for such a determination is withdrawn, or if the Secretary of the Treasury issues a determination that the plan or trust does not meet the requirements of such part I, the Secretary shall notify the Secretary of Labor of the withdrawal or determination.

(e)This section does not apply with respect to an application for any plan received by the Secretary of the Treasury before the date on which section 410 of title 26 applies to the plan, or on which such section will apply if the plan is determined by the Secretary to be a qualified plan.

Notes & Related Subsidiaries

Editorial Notes

Amendments

1989—Subsecs. (a), (b)(1), (c) to (e). Pub. L. 101–239 substituted “Internal Revenue Code of 1986” for “Internal Revenue Code of 1954”, which for purposes of codification was translated as “title 26” thus requiring no change in text. 1987—Subsec. (d). Pub. L. 100–203 inserted after second sentence “The determination of the Secretary of the Treasury shall not be prima facie evidence on issues relating solely to part 4 of subtitle B of subchapter I.”

Statutory Notes and Related Subsidiaries

Effective Date

of 1989 AmendmentAmendment by Pub. L. 101–239 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 7891(f) of Pub. L. 101–239, set out as a note under section 1002 of this title.