If an employer withdraws from a multiemployer plan in a complete withdrawal or a partial withdrawal, then the employer is liable to the plan in the amount determined under this part to be the withdrawal liability.
For purposes of subsection (a)—
section 1391 of this title The withdrawal liability of an employer to a plan is the amount determined under to be the allocable amount of unfunded vested benefits, adjusted—
section 1389 of this title first, by any de minimis reduction applicable under ,
section 1386 of this title next, in the case of a partial withdrawal, in accordance with ,
section 1399(c)(1)(B) of this title then, to the extent necessary to reflect the limitation on annual payments under , and
section 1405 of this title finally, in accordance with .
section 1383 of this title The term “complete withdrawal” means a complete withdrawal described in .
section 1385 of this title The term “partial withdrawal” means a partial withdrawal described in .
Pub. L. 93–406, title IV, § 4201Pub. L. 96–364, title I, § 104(2)94 Stat. 1217(, as added , , .)
Editorial Notes
Prior Provisions
Pub. L. 93–406, title IV, § 440288 Stat. 1034Pub. L. 95–214, § 191 Stat. 1501Pub. L. 96–2493 Stat. 70Pub. L. 96–239, § 194 Stat. 341Pub. L. 96–293, § 194 Stat. 610Pub. L. 96–364, title I, § 108(a)94 Stat. 1267section 1461 of this titleA prior section 1381, , formerly § 4082, , ; S.Res. 4, ; , , ; S.Res. 30, ; , , ; , , ; , , , renumbered § 4402 and amended -(c)(1), , , relating to the effective dates and special rules for this subchapter, was transferred to .
Statutory Notes and Related Subsidiaries
Effective Date
section 1461(e)(2) of this titlePart effective , see .
Pub. L. 96–364Elimination of Retroactive Application of Amendments Made by Multiemployer Pension Plan Amendments Act of 1980,
Pub. L. 98–369, div. A, title V, § 558(a)98 Stat. 899
In General.—
Liability.—
29 U.S.C. 1381Any withdrawal liability incurred by an employer pursuant to part 1 of subtitle E of title IV of the Employee Retirement Income Security Act of 1974 ( et seq.) as a result of the complete or partial withdrawal of such employer from a multiemployer plan before , shall be void.
Refunds.—
26 U.S.C. 401(a)(2)Any amounts paid by an employer to a plan sponsor as a result of such withdrawal liability shall be refunded by the plan sponsor to the employer with interest (in accordance with section 401(a)(2) []), less a reasonable amount for administrative expenses incurred by the plan sponsor (other than legal expenses incurred with respect to the plan) in calculating, assessing, and refunding such amounts.
No Increase in Liability.—
section 1385 of this title29 U.S.C. 1381section 1385 of this titleThe amendments made by this section [amending sections 1391, 1397, 1399, 1415 and 1461 of this title and provisions set out as a note under ] shall not be construed to increase the liability incurred by any employer pursuant to part 1 of subtitle E of title IV of the Employee Retirement Income Security Act of 1974 ( et seq.), as in effect immediately before the amendments made by subsection (b) [amending sections 1391, 1397, 1399, 1415, and 1461 of this title and provisions set out as a note under ], as a result of the complete or partial withdrawal of such employer from a multiemployer plan prior to .
Special Rule for Certain Binding Agreements.—
In the case of an employer who, on , has a binding agreement to withdraw from a multiemployer plan, subsection (a)(1) shall be applied by substituting ‘’ for ‘’.”
Applicability to Certain Employers Withdrawn Before , From Multiemployer Plan Covering Employees in Seagoing Industry; Effective Date, Coverage, Etc.
Pub. L. 96–364, title I, § 108(c)(4)94 Stat. 1269
section 1397 of this title“In the case of an employer who withdrew before the date of enactment of this Act [] from a multiemployer plan covering employees in the seagoing industry (as determined by the corporation), sections 4201 through 4219 of the Employee Retirement Income Security Act of 1974, as added by this Act, [section 1381 through 1399 of this title], are effective as of . For the purpose of applying section 4217 [] for purposes of the preceding sentence, the date ‘,’ shall be substituted for ‘,’ and the date ‘’ shall be substituted for ‘’. For purposes of this paragraph, terms which are used in title IV of the Employee Retirement Income Security Act of 1974 [this subchapter], or in regulations prescribed under that title, and which are used in the preceding sentence have the same meaning as when used in that Act [see Short Title note set out under sections 1001 of this title] or those regulations. For purposes of this paragraph, the term ‘employer’ includes only a substantial employer covering employees in the seagoing industry (as so determined) in connection with ports on the West Coast of the United States, but does not include an employer who withdrew from a plan because of a change in the collective bargaining representative.”
, , , provided that: