§1001b — Title 29 Labor | U.S. Code

Summary

Congress says it will change the pension termination insurance system and raise insurance premiums for single-employer defined benefit pension plans (pension plans run by one employer that promise set retirement payments). Congress found that these plans affect interstate commerce, that millions of workers and retirees depend on them, and that a good termination insurance system is key to protecting those benefits. It also found that the current system sometimes lets employers avoid paying obligations and shifts unpaid pension debts to the insurance fund and other premium-payers. The law’s goals are to protect full benefits, limit insurance takeovers to cases of severe hardship, keep premiums reasonable, and make sure the insurance system is properly funded now and in the future.

Title 29, §1001b

Labor — Source: USLM XML via OLRC

(a)The Congress finds that—

(1)single-employer defined benefit pension plans have a substantial impact on interstate commerce and are affected with a national interest;

(2)the continued well-being and retirement income security of millions of workers, retirees, and their dependents are directly affected by such plans;

(3)the existence of a sound termination insurance system is fundamental to the retirement income security of participants and beneficiaries of such plans; and

(4)the current termination insurance system in some instances encourages employers to terminate pension plans, evade their obligations to pay benefits, and shift unfunded pension liabilities onto the termination insurance system and the other premium-payers.

(b)The Congress further finds that modification of the current termination insurance system and an increase in the insurance premium for single-employer defined benefit pension plans—

(1)is desirable to increase the likelihood that full benefits will be paid to participants and beneficiaries of such plans;

(2)is desirable to provide for the transfer of liabilities to the termination insurance system only in cases of severe hardship;

(3)is necessary to maintain the premium costs of such system at a reasonable level; and

(4)is necessary to finance properly current funding deficiencies and future obligations of the single-employer pension plan termination insurance system.

(c)It is hereby declared to be the policy of this title—

(1)to foster and facilitate interstate commerce;

(2)to encourage the maintenance and growth of single-employer defined benefit pension plans;

(3)to increase the likelihood that participants and beneficiaries under single-employer defined benefit pension plans will receive their full benefits;

(4)to provide for the transfer of unfunded pension liabilities onto the single-employer pension plan termination insurance system only in cases of severe hardship;

(5)to maintain the premium costs of such system at a reasonable level; and

(6)to assure the prudent financing of current funding deficiencies and future obligations of the single-employer pension plan termination insurance system by increasing termination insurance premiums.

Notes & Related Subsidiaries

Editorial Notes

References in Text

This title, referred to in subsec. (c), is title XI of Pub. L. 99–272, Apr. 7, 1986, 100 Stat. 237, known as the Single-Employer Pension Plan

Amendments

Act of 1986. For complete classification of this Act to the Code, see

Short Title

of 1986 Amendment note set out under section 1001 of this title and Tables. Codification Section was enacted as part of the Single-Employer Pension Plan

Amendments

Act of 1986, and not as part of the Employee Retirement Income Security Act of 1974 which comprises this chapter.

Statutory Notes and Related Subsidiaries

Effective Date

Section effective Jan. 1, 1986, with certain exceptions, see section 11019 of Pub. L. 99–272, set out as an

Effective Date

of 1986 Amendment note under section 1341 of this title.

§1001b Findings and Declaration of Policy

Summary

Title 29, §1001b

Notes & Related Subsidiaries

Editorial Notes

References in Text

Amendments

Short Title

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Citations & Metadata