§1431 — Title 29 Labor | U.S. Code

§1431 Assistance by corporation

Title 29 › Chapter CHAPTER 18— - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM › Subchapter SUBCHAPTER III— - PLAN TERMINATION INSURANCE › Subtitle Subtitle E— - Special Provisions for Multiemployer Plans › Part part 4— - financial assistance › § 1431

Last updated Apr 6, 2026|Official source

Summary

After an application under sections 1426(f) or 1441(d), if the corporation finds a plan is or will be insolvent and cannot pay basic benefits when due, it must give enough money to pay those benefits. The corporation can set fair repayment and other terms to protect itself, and it may give temporary aid while it decides the final amount to avoid hardship for participants and beneficiaries.

Title 29, §1431

Labor — Source: USLM XML via OLRC

(a)If, upon receipt of an application for financial assistance under section 1426(f) of this title or section 1441(d) of this title, the corporation verifies that the plan is or will be insolvent and unable to pay basic benefits when due, the corporation shall provide the plan financial assistance in an amount sufficient to enable the plan to pay basic benefits under the plan.

(b)(1)Financial assistance shall be provided under such conditions as the corporation determines are equitable and are appropriate to prevent unreasonable loss to the corporation with respect to the plan.

(2)A plan which has received financial assistance shall repay the amount of such assistance to the corporation on reasonable terms consistent with regulations prescribed by the corporation.

(c)Pending determination of the amount described in subsection (a), the corporation may provide financial assistance in such amounts as it considers appropriate in order to avoid undue hardship to plan participants and beneficiaries.

Editorial Notes

Effective Date

Part effective Sept. 26, 1980, except as specifically provided, see section 1461(e) of this title.

§1431 Assistance by corporation

Summary

Title 29, §1431

Notes & Related Subsidiaries

Editorial Notes

Effective Date

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