§1397 Application of part in case of certain pre-1980 withdrawals; adjustment of covered plan

Summary

When figuring how much of the unpaid promised pension benefits an employer must cover after a partial or full withdrawal that happens after September 25, 1980, use the employer’s contributions and contribution base units that are properly tied to work under a collective bargaining agreement or to work at a facility where contributions or operations permanently stopped before September 26, 1980. A plan may adjust how much unpaid promised benefits are charged to other employers in a plan run by one of those employers, as long as the adjustments follow rules the corporation must make. Unfunded vested benefits = promised benefits not fully paid for. Contribution base units = the measure used to record employer contributions.