US Code

Public Law 119-73 (01/23/2026)

29 U.S.C. § 1305

Pension benefit guaranty funds

(a)

Establishment of four revolving funds on books of Treasury of the United States

section 1322 of this titlesection 1322a of this titlesection 1322 of this titlesection 1322a of this titleThere are established on the books of the Treasury of the United States four revolving funds to be used by the corporation in carrying out its duties under this subchapter. One of the funds shall be used with respect to basic benefits guaranteed under , one of the funds shall be used with respect to basic benefits guaranteed under , one of the funds shall be used with respect to nonbasic benefits guaranteed under (if any), and the remaining fund shall be used with respect to nonbasic benefits guaranteed under (if any), other than subsection (g)(2) thereof (if any). Whenever in this subchapter reference is made to the term “fund” the reference shall be considered to refer to the appropriate fund established under this subsection.

(b)

Credits to funds; availability of funds; investment of moneys in excess of current needs

(1)
Each fund established under this section shall be credited with the appropriate portion of—
(A)
premiums, penalties, interest, and charges collected under this subchapter,
(B)
section 1342 of this title the value of the assets of a plan administered under by a trustee to the extent that they exceed the liabilities of such plan,
(C)
the amount of any employer liability payments under subtitle D, to the extent that such payments exceed liabilities of the plan (taking into account all other plan assets),
(D)
earnings on investments of the fund or on assets credited to the fund under this subsection,
(E)
attorney’s fees awarded to the corporation, and
(F)
receipts from any other operations under this subchapter.
(2)
Subject to the provisions of subsection (a), each fund shall be available—
(A)
section 1350 of this title for making such payments as the corporation determines are necessary to pay benefits guaranteed under section 1322 or 1322a of this title or benefits payable under ,
(B)
to purchase assets from a plan being terminated by the corporation when the corporation determines such purchase will best protect the interests of the corporation, participants in the plan being terminated, and other insured plans,
(C)
to pay the operational and administrative expenses of the corporation, including reimbursement of the expenses incurred by the Department of the Treasury in maintaining the funds, and the Comptroller General in auditing the corporation, and
(D)
section 1344 of this title to pay to participants and beneficiaries the estimated amount of benefits which are guaranteed by the corporation under this subchapter and the estimated amount of other benefits to which plan assets are allocated under , under single-employer plans which are unable to pay benefits when due or which are abandoned.
(3)
(A)
Whenever the corporation determines that the moneys of any fund are in excess of current needs, it may request the investment of such amounts as it determines advisable by the Secretary of the Treasury in obligations issued or guaranteed by the United States.
(B)
Notwithstanding subparagraph (A)—
(i)
section 1306 of this titlesection 1322a of this title the amounts of premiums received under with respect to the fund to be used for basic benefits under in a fiscal year in the period beginning with fiscal year 2016 and ending with fiscal year 2020 shall be placed in a noninterest-bearing account within such fund in the following amounts:
(I)
for fiscal year 2016, $108,000,000;
(II)
for fiscal year 2017, $111,000,000;
(III)
for fiscal year 2018, $113,000,000;
(IV)
for fiscal year 2019, $149,000,000; and
(V)
for fiscal year 2020, $296,000,000;
(ii)
premiums received in fiscal years specified in subclauses (I) through (V) of clause (i) shall be allocated in order first to the noninterest-bearing account in the amount specified and second to any other accounts within such fund; and
(iii)
section 1431 of this title financial assistance, as provided under , shall be withdrawn proportionately from the noninterest-bearing and other accounts within the fund.
(c)

Pub. L. 112–141, div. D, title II, § 40234(a)126 Stat. 858 Repealed. , ,

(d)

Establishment of fifth fund; purpose, availability, etc.

(1)
section 1402 of this title A fifth fund shall be established for the reimbursement of uncollectible withdrawal liability under , and shall be credited with the appropriate—
(A)
premiums, penalties, and interest charges collected under this subchapter, and
(B)
earnings on investments of the fund or on assets credited to the fund.
section 1402 of this titleThe fund shall be available to make payments pursuant to the supplemental program established under , including those expenses and other charges determined to be appropriate by the corporation.
(2)
The corporation may invest amounts of the fund in such obligations as the corporation considers appropriate.
(e)

Establishment of sixth fund; purpose, availability, etc.

(1)
section 1322a(g)(2) of this title A sixth fund shall be established for the supplemental benefit guarantee program provided under .
(2)
Such fund shall be credited with the appropriate—
(A)
section 1322a(g)(2) of this title premiums, penalties, and interest charges collected under , and
(B)
earnings on investments of the fund or on assets credited to the fund.
section 1322a(g)(2) of this titleThe fund shall be available for making payments pursuant to the supplemental benefit guarantee program established under , including those expenses and other charges determined to be appropriate by the corporation.
(3)
The corporation may invest amounts of the fund in such obligations as the corporation considers appropriate.
(f)

Deposit of premiums into separate revolving fund

(1)
A seventh fund shall be established and credited with—
(A)
section 1306(a)(3)(A)(i) of this title premiums, penalties, and interest charges collected under (not described in subparagraph (B)) to the extent attributable to the amount of the premium in excess of $8.50,
(B)
section 1306(a)(3)(E) of this title premiums, penalties, and interest charges collected under , and
(C)
earnings on investments of the fund or on assets credited to the fund.
(2)
Amounts in the fund shall be available for transfer to other funds established under this section with respect to a single-employer plan but shall not be available to pay—
(A)
administrative costs of the corporation, or
(B)
benefits under any plan which was terminated before ,
unless no other amounts are available for such payment.
(3)
The corporation may invest amounts of the fund in such obligations as the corporation considers appropriate.
(g)

Other use of funds; deposits of repayments

(1)
Amounts in any fund established under this section may be used only for the purposes for which such fund was established and may not be used to make loans to (or on behalf of) any other fund or to finance any other activity of the corporation.
(2)
Any repayment to the corporation of any amount paid out of any fund in connection with a multiemployer plan shall be deposited in such fund.
(h)

Voting by corporation of stock paid as liability

Any stock in a person liable to the corporation under this subchapter which is paid to the corporation by such person or a member of such person’s controlled group in satisfaction of such person’s liability under this subchapter may be voted only by the custodial trustees or outside money managers of the corporation.

(i)

Special financial assistance for multiemployer pension plans

(1)
section 1432 of this title An eighth fund shall be established for special financial assistance to multiemployer pension plans, as provided under , and to pay for necessary administrative and operating expenses of the corporation relating to such assistance.
(2)
section 1432 of this title There is appropriated from the general fund such amounts as are necessary for the costs of providing financial assistance under and necessary administrative and operating expenses of the corporation. The eighth fund established under this subsection shall be credited with amounts from time to time as the Secretary of the Treasury, in conjunction with the Director of the Pension Benefit Guaranty Corporation, determines appropriate, from the general fund of the Treasury, but in no case shall such transfers occur after .

Pub. L. 93–406, title IV, § 400588 Stat. 1009Pub. L. 96–364, title IV, § 403(a)94 Stat. 1300Pub. L. 99–272, title XI, § 11016(a)(1)100 Stat. 268Pub. L. 100–203, title IX101 Stat. 1330–364Pub. L. 103–465, title VII, § 776(b)(2)108 Stat. 5048Pub. L. 112–141, div. D, title II, § 40234(a)126 Stat. 858Pub. L. 113–235, div. O, title I, § 131(b)128 Stat. 2797Pub. L. 117–2, title IX, § 9704(a)135 Stat. 190(, , ; , , ; , (2), (c)(7), , , 274; , §§ 9312(c)(4), 9331(d), , , 1330–368; , , ; , (b)(1), , ; , , ; , , .)

Editorial Notes

Amendments

Pub. L. 117–22021—Subsec. (i). added subsec. (i).

Pub. L. 113–2352014—Subsec. (b)(3). designated existing provisions as subpar. (A) and added subpar. (B).

Pub. L. 112–141, § 40234(b)(1)(A)(i)2012—Subsec. (b)(1). , redesignated subpars. (B) to (G) as (A) to (F), respectively, and struck out former subpar. (A) which read as follows: “funds borrowed under subsection (c),”.

Pub. L. 112–141, § 40234(b)(1)(A)(ii)Subsec. (b)(2)(C) to (E). , redesignated subpars. (D) and (E) as (C) and (D), respectively, and struck out former subpar. (C) which read as follows: “to repay to the Secretary of the Treasury such sums as may be borrowed (together with interest thereon) under subsection (c),”.

Pub. L. 112–141, § 40234(b)(1)(A)(iii)Subsec. (b)(3). , substituted period at end for “but, until all borrowings under subsection (c) have been repaid, the obligations in which such excess moneys are invested may not yield a rate of return in excess of the rate of interest payable on such borrowings.”

Pub. L. 112–141, § 40234(a)Subsec. (c). , struck out subsec. (c) which related to authority to issue notes or other obligations and purchase by Secretary of the Treasury as public debt transaction.

Pub. L. 112–141, § 40234(b)(1)(B)Subsec. (g)(2), (3). , redesignated par. (3) as (2) and struck out former par. (2) which read as follows: “None of the funds borrowed under subsection (c) may be used to make loans to (or on behalf of) any fund other than a fund described in the second sentence of subsection (a).”

Pub. L. 103–465section 1350 of this titlesection 1322a of this title1994—Subsec. (b)(2)(A). , which directed the amendment of subpar. (A) by inserting “or benefits payable under ” after “”, was executed by making the insertion after “section 1322 or 1322a of this title” to reflect the probable intent of Congress.

Pub. L. 100–203, § 9331(d)1987—Subsec. (f). , added subsec. (f). Former subsec. (f) redesignated (g).

Pub. L. 100–203, § 9331(d)Subsec. (g). , redesignated former subsec. (f) as (g). Former subsec. (g) redesignated (h).

Pub. L. 100–203, § 9312(c)(4)section 1349 of this title, struck out “or fiduciaries with respect to trusts to which the requirements of apply” after “money managers of the corporation”.

Pub. L. 100–203, § 9331(d)Subsec. (h). , redesignated former subsec. (g) as (h).

Pub. L. 99–272, § 11016(a)(2)1986—Subsec. (b)(1)(F), (G). , added subpar. (F) and redesignated former subpar. (F) as (G).

Pub. L. 99–272, § 11016(a)(1)Subsec. (b)(2)(E). , added subpar. (E).

Pub. L. 99–272, § 11016(c)(7)Subsec. (g). , added subsec. (g).

Pub. L. 96–364, § 403(a)(1)1980—Subsec. (a). , substituted provisions respecting benefits guaranteed under sections 1322 and 1322a of this title, for provisions respecting benefits guaranteed under sections 1322 and 1323 of this title.

Pub. L. 96–364, § 403(a)(2)section 1322a of this titlesection 1323 of this titleSubsec. (b)(2). , (3), in subpar. (A) inserted reference to , struck out subpar. (B) relating to payments under , and redesignated former subpars. (C) to (E) as (B) to (D), respectively.

Pub. L. 96–364, § 403(a)(4)Subsecs. (d) to (f). , added subsecs. (d) to (f).

Statutory Notes and Related Subsidiaries

Effective Date of 1994 Amendment

Pub. L. 103–465section 776(e) of Pub. L. 103–465section 1056 of this titleAmendment by effective with respect to distributions that occur in plan years commencing on or after , see , set out as a note under .

Effective Date of 1987 Amendment

section 9312(c)(4) of Pub. L. 100–203section 1341 of this titlesection 1341(a)(2) of this titlesection 1342 of this titlesection 9312(d)(1) of Pub. L. 100–203section 1301 of this titleAmendment by applicable with respect to plan terminations under with respect to which notices of intent to terminate are provided under after , and plan terminations with respect to which proceedings are instituted by the Pension Benefit Guaranty Corporation under after that date, see , as amended, set out as a note under .

Pub. L. 100–203, title IX, § 9331(f)101 Stat. 1330–369

“(1)

In general .—

The amendments made by this section [amending this section and sections 1306 and 1307 of this title] shall apply to plan years beginning after .
“(2)

Separate accounting .—

The amendments made by subsection (d) [amending this section] shall apply to fiscal years beginning after .”
, , , provided that:

Effective Date of 1986 Amendment

Pub. L. 99–272section 11019 of Pub. L. 99–272section 1341 of this titleAmendment by effective , with certain exceptions, see , set out as a note under .

Effective Date of 1980 Amendment

Pub. L. 96–364section 1461(e) of this titleAmendment by effective , except as specifically provided, see .