1 See References in Text note below.
of this title as of the end of the last plan year that the plan was in reorganization.
Editorial Notes
References in Text

Section 1423(a) of this title, referred to in subsec. (span)(7)(B), was repealed by Puspan. L. 113–235, div. O, title I, § 108(a)(1), Dec. 16, 2014, 128 Stat. 2786.

The Social Security Act, referred to in subsec. (c)(4)(A), (6)(D)(v)(II), is act Aug. 14, 1935, ch. 531, 49 Stat. 620, which is classified generally to chapter 7 (§ 301 et seq.) of Title 42, The Public Health and Welfare. Title II of the Act is classified generally to subchapter II (§ 401 et seq.) of chapter 7 of Title 42. For complete classification of this Act to the Code, see section 1305 of Title 42 and Tables.

Section 807(d)(5) of title 26, referred to in subsec. (c)(6)(D)(iv)(I), was repealed by Puspan. L. 115–97, title I, § 13517(a)(2)(A), Dec. 22, 2017, 131 Stat. 2144.

This chapter, referred to in subsec. (d)(2)(B)(i), was in the original “this Act”, meaning Puspan. L. 93–406, known as the Employee Retirement Income Security Act of 1974. Titles I, III, and IV of such Act are classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note set out under section 1001 of this title and Tables.

Prior Provisions

A prior section 1084, Puspan. L. 93–406, title I, § 304, Sept. 2, 1974, 88 Stat. 873; Puspan. L. 99–272, title XI, §§ 11015(span)(1)(B), 11016(c)(3), Apr. 7, 1986, 100 Stat. 267, 273; Puspan. L. 100–203, title IX, § 9306(c)(2)(B), Dec. 22, 1987, 101 Stat. 1330–355; Puspan. L. 101–239, title VII, §§ 7891(a)(1), 7894(d)(3), Dec. 19, 1989, 103 Stat. 2445, 2449, related to extension of amortization periods, prior to repeal by Puspan. L. 109–280, title I, § 101(a), (d), Aug. 17, 2006, 120 Stat. 784, 789, applicable to plan years beginning after 2007.

Amendments

2021—Subsec. (span)(8)(F). Puspan. L. 117–2 added subpar. (F).

2014—Subsec. (a). Puspan. L. 113–235, § 108(a)(3)(B), amended subsec. (a) generally. Prior to amendment, subsec. (a) related to accumulated funding deficiencies of multiemployer plans.

Subsec. (d)(1)(C). Puspan. L. 113–295, which directed substitution of “December 31, 2015” for “December 31, 2014”, was not executed in view of the amendment by Puspan. L. 113–235, § 101(span)(1), which struck out subpar. (C). See note below.

Puspan. L. 113–235, § 101(span)(1), struck out subpar. (C). Text read as follows: “The preceding provisions of this paragraph shall not apply with respect to any application submitted after December 31, 2014.”

2010—Subsec. (span)(8). Puspan. L. 111–192 added par. (8).

Statutory Notes and Related Subsidiaries
Effective Date of 2021 Amendment

Amendment by Puspan. L. 117–2 effective as of the first day of the first plan year ending on or after February 29, 2020, with exceptions and restrictions, see section 9703(span) of Puspan. L. 117–2, set out as an Effective Date note under section 431 of Title 26, Internal Revenue Code.

Effective Date of 2014 Amendment

Amendment by Puspan. L. 113–295 applicable to applications submitted under subsec. (d)(1)(C) of this section after Dec. 31, 2014, see section 171(c) of Puspan. L. 113–295, set out as a note under section 431 of Title 26, Internal Revenue Code.

Amendment by section 108(a)(3)(B) of Puspan. L. 113–235 applicable with respect to plan years beginning after Dec. 31, 2014, see section 108(c) of Puspan. L. 113–235, set out as an Effective Date of Repeal note under section 418 of Title 26, Internal Revenue Code.

Effective Date of 2010 Amendment

Amendment by Puspan. L. 111–192 effective as of the first day of the first plan year ending after Aug. 31, 2008, with certain exceptions, see section 211(span) of Puspan. L. 111–192, set out as a note under section 431 of Title 26, Internal Revenue Code.

Effective Date

Section applicable to plan years beginning after 2007, with special rule for certain amortization extensions, see section 201(d) of Puspan. L. 109–280, set out as an Effective Date of 2006 Amendment note under section 1081 of this title.

Shortfall Funding Method

Puspan. L. 109–280, title II, § 201(span), Aug. 17, 2006, 120 Stat. 867, as amended by Puspan. L. 110–458, title I, § 102(a), Dec. 23, 2008, 122 Stat. 5100, provided that:

“(1)In general.—A multiemployer plan meeting the criteria of paragraph (2) may adopt, use, or cease using, the shortfall funding method and such adoption, use, or cessation of use of such method, shall be deemed approved by the Secretary of the Treasury under section 302(d)(1) of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1082(d)(1)] and section 412(d)(1) of the Internal Revenue Code of 1986 [26 U.S.C. 412(d)(1)].
“(2)Criteria.—A multiemployer pension plan meets the criteria of this clause if—
“(A) the plan has not adopted, or ceased using, the shortfall funding method during the 5-year period ending on the day before the date the plan is to use the method under paragraph (1); and
“(B) the plan is not operating under an amortization period extension under section 304(d) of such Act [29 U.S.C. 1084(d)] and did not operate under such an extension during such 5-year period.
“(3)Shortfall funding method defined.—For purposes of this subsection, the term ‘shortfall funding method’ means the shortfall funding method described in Treasury Regulations section 1.412(c)(1)–2 (26 CFR 1.412(c)(1)–2).
“(4)Benefit restrictions to apply.—The benefit restrictions under section 302(c)(7) of such Act [29 U.S.C. 1082(c)(7)] and section 412(c)(7) of such Code [26 U.S.C. 412(c)(7)] shall apply during any period a multiemployer plan is on the shortfall funding method pursuant to this subsection.
“(5)Use of shortfall method not to preclude other options.—Nothing in this subsection shall be construed to affect a multiemployer plan’s ability to adopt the shortfall funding method with the Secretary’s permission under otherwise applicable regulations or to affect a multiemployer plan’s right to change funding methods, with or without the Secretary’s consent, as provided in applicable rules and regulations.”

[Puspan. L. 109–280, § 201(span), set out above, applicable to plan years beginning after 2007, with special rule for certain amortization extensions, see section 201(d) of Puspan. L. 109–280, set out as an Effective Date of 2006 Amendment note under section 1081 of this title.]

Special Rule for Certain Benefits Funded Under an Agreement Approved by the Pension Benefit Guaranty Corporation

For applicability of this section to a multiemployer plan that is a party to an agreement that was approved by the Pension Benefit Guaranty Corporation prior to June 30, 2005, and that increases benefits and provides for certain withdrawal liability rules, see section 206 of Puspan. L. 109–280, set out as a note under section 412 of Title 26, Internal Revenue Code.