Title 29 — LaborRelease 119-73not60

§1397 Application of Part in Case of Certain Pre-1980 Withdrawals; Adjustment of Covered Plan

Title 29 › Chapter 18— EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM › Subchapter III— PLAN TERMINATION INSURANCE › Subtitle Subtitle E— Special Provisions for Multiemployer Plans › Part 1— employer withdrawals › § 1397

Last updated Apr 5, 2026|Official source

Summary

When an employer leaves a pension plan after September 25, 1980, the plan must count that employer’s contributions and contribution base units that properly belong to work covered by a bargaining agreement or to work at a facility where the duty to contribute stopped permanently before September 26, 1980. Those counted amounts are used to figure the employer’s unpaid promised benefits and to decide if a partial withdrawal occurred. A plan may, following rules set by the corporation, adjust how much unpaid benefits are charged to other employers in the same plan.

Full Legal Text

Title 29, §1397

Labor — Source: USLM XML via OLRC

(a)For the purpose of determining the amount of unfunded vested benefits allocable to an employer for a partial or complete withdrawal from a plan which occurs after September 25, 1980, and for the purpose of determining whether there has been a partial withdrawal after such date, the amount of contributions, and the number of contribution base units, of such employer properly allocable—

(1)to work performed under a collective bargaining agreement for which there was a permanent cessation of the obligation to contribute before September 26, 1980, or

(2)to work performed at a facility at which all covered operations permanently ceased before September 26, 1980, or for which there was a permanent cessation of the obligation to contribute before that date,

(b)A plan may, in a manner not inconsistent with regulations, which shall be prescribed by the corporation, adjust the amount of unfunded vested benefits allocable to other employers under a plan maintained by an employer described in subsection (a).

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

1984—Subsec. (a). Pub. L. 98–369, § 558(b)(1)(A), (B), substituted “

September 25, 1980” for “

April 28, 1980” in provisions preceding par. (1) and “

September 26, 1980” for “

April 29, 1980” in pars. (1) and (2).

Reference

Citations & Metadata

Citation

29 U.S.C. § 1397

Title 29 — Labor

Last Updated

Apr 5, 2026

Release point: 119-73not60