§1341a Termination of Multiemployer Plans

Summary

Says when a multiemployer pension plan ends and what must happen afterward. A plan ends if after September 26, 1980 the plan is changed so it stops giving credit for work after a certain date; if every employer leaves or all employers stop having to pay into the plan; or if the plan is changed so it becomes the other type of plan described in the law. Gives rules for the end date and for payments. If the plan ends because of an amendment, the end date is the later of when the amendment was adopted or when it takes effect. If it ends because all employers left, the end date is the earlier of when the last employer left or the first day of the first plan year with no employer contributions. For employer-withdrawal endings, the plan must pay only benefits people already have a right to keep, and employer-paid benefits (except death benefits) must be paid as an annuity unless the plan pays out everything. The sponsor must cut or suspend benefits as the law allows. For amendment endings, each employer must keep contributing at least the highest rate it paid in the 5 plan years before the end, unless the corporation approves a lower rate because the plan is or will soon be fully funded. The sponsor may allow a lump-sum instead of an annuity if the whole nonforfeitable employer-paid benefit (not a death benefit) is $1,750 or less. The corporation can allow other exceptions, and it can require reports and set rules to protect participants and prevent unreasonable loss.