Title 29, LaborRelease 119-110

§1402 Reimbursements for Uncollectible Withdrawal Liability

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 › § 1402

Last updated Sep 22, 2026|Official source

Summary

Requires the corporation to create rules by May 1, 1982 for a backup program that pays multiemployer plans for withdrawal liability amounts owed by employers when those amounts are found uncollectible because of bankruptcy or similar cases. Plans can join the program voluntarily and must pay premiums set by the corporation under a schedule it updates. The corporation may also cover other kinds of uncollectible payments if it decides to. Program costs, including administrative and legal costs, can only come from the premiums collected. The corporation can set terms and limits it considers appropriate, such as excluding very small amounts, reducing or denying payments that exceed collected premiums, and limiting plan withdrawals. The corporation may use private insurers and can require plans to accept them.

Full Legal Text

Title 29, §1402

Labor, Source: USLM XML via OLRC

(a)Required supplemental program to reimburse for payments due from employers uncollectible as a result of employer involvement in bankruptcy case or proceedings; program participation, premiums, etc.

By May 1, 1982, the corporation shall establish by regulation a supplemental program to reimburse multiemployer plans for withdrawal liability payments which are due from employers and which are determined to be uncollectible for reasons arising out of cases or proceedings involving the employers under title 11, or similar cases or proceedings. Participation in the supplemental program shall be on a voluntary basis, and a plan which elects coverage under the program shall pay premiums to the corporation in accordance with a premium schedule which shall be prescribed from time to time by the corporation. The premium schedule shall contain such rates and bases for the application of such rates as the corporation considers to be appropriate.

(b)Discretionary supplemental program to reimburse for payments due from employers uncollectible for other appropriate reasons

The corporation may provide under the program for reimbursement of amounts of withdrawal liability determined to be uncollectible for any other reasons the corporation considers appropriate.

(c)Payment of cost of program

The cost of the program (including such administrative and legal costs as the corporation considers appropriate) may be paid only out of premiums collected under such program.

(d)Terms and conditions, limitations, etc., of supplemental program

The supplemental program may be offered to eligible plans on such terms and conditions, and with such limitations with respect to the payment of reimbursements (including the exclusion of de minimis amounts of uncollectible employer liability, and the reduction or elimination of reimbursements which cannot be paid from collected premiums) and such restrictions on withdrawal from the program, as the corporation considers necessary and appropriate.

(e)Arrangements by corporation with private insurers for implementation of program; election of coverage by participating plans with private insurers

The corporation may enter into arrangements with private insurers to carry out in whole or in part the program authorized by this section and may require plans which elect coverage under the program to elect coverage by those private insurers.

Reference

Citations & Metadata

Citation

29 U.S.C. § 1402

Title 29, Labor

Last Updated

Sep 22, 2026

Release point: 119-110