PRIA Logo™
Title 29, LaborRelease 119-110

§1398 Withdrawal Not to Occur Because of Change in Business Form or Suspension of Contributions During Labor Dispute

Title 29 › CHAPTER 18 — EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM › SUBCHAPTER III — PLAN TERMINATION INSURANCE › Subtitle E — Special Provisions for Multiemployer Plans › part 1 — employer withdrawals › § 1398

Last updated Sep 22, 2026|Official source

Summary

An employer will not be treated as having left a benefit plan just because it changes its legal form or because it pauses payments during a labor dispute. That includes a corporate reorganization covered by section 1369(b) or a switch to an unincorporated business, as long as contributions or the duty to contribute continue without interruption. Stopping contributions during a labor dispute also does not count as leaving the plan. A successor, parent, or other entity that comes from the change is treated as the same original employer for plan rules.

Full Legal Text

Title 29, §1398

Labor, Source: USLM XML via OLRC

Notwithstanding any other provision of this part, an employer shall not be considered to have withdrawn from a plan solely because—
(1)an employer ceases to exist by reason of—
(A)a change in corporate structure described in section 1369(b) of this title, or
(B)a change to an unincorporated form of business enterprise,
if the change causes no interruption in employer contributions or obligations to contribute under the plan, or
(2)an employer suspends contributions under the plan during a labor dispute involving its employees.
For purposes of this part, a successor or parent corporation or other entity resulting from any such change shall be considered the original employer.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

1989—Par. (1)(A). Pub. L. 101–239, § 7893(f), made identical amendment to that of Pub. L. 99–514, § 1879(u)(4), as added by Pub. L. 101–239, § 7862(b)(1)(C), see below. Pub. L. 101–239, § 7862(b)(1)(C), added Pub. L. 99–514, § 1879(u)(4), see 1986 Amendment note below. 1986—Par. (1)(A). Pub. L. 99–514, § 1879(u)(4), as added by Pub. L. 101–239, § 7862(b)(1)(C), substituted “section 1369(b) of this title” for “section 1362(d) of this title”.

Statutory Notes and Related Subsidiaries

Effective Date

of 1989 AmendmentAmendment by section 7862(b)(1)(C) of Pub. L. 101–239 effective as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 7863 of Pub. L. 101–239, set out as a note under section 106 of Title 26, Internal Revenue Code. Amendment by section 7893(f) of Pub. L. 101–239 effective as if included in the provision of the Single-Employer Pension Plan

Amendments

Act of 1986, Pub. L. 99–272, title XI, to which such amendment relates, see section 7893(h) of Pub. L. 101–239, set out as a note under section 1002 of this title. Plan

Amendments

Not Required Until January 1, 1989For provisions directing that if any

Amendments

made by subtitle A or subtitle C of title XI [§§ 1101–1147 and 1171–1177] or title XVIII [§§ 1800–1899A] of Pub. L. 99–514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. L. 99–514, as amended, set out as a note under section 401 of Title 26, Internal Revenue Code.

Reference

Citations & Metadata

Citation

29 U.S.C. § 1398

Title 29, Labor

Last Updated

Sep 22, 2026

Release point: 119-110