References in Text
This chapter, referred to in subsec. (d), was in the original “this Act”, meaning
[Pub. 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.
[Pub. L. 109–280] inserted “or to an entity or entities owned or controlled by the employer” after “to another location”.
[Pub. L. 101–239] substituted “Internal Revenue Code of 1986” for “Internal Revenue Code of 1954”, which for purposes of codification was translated as “title 26” thus requiring no change in text.
Statutory Notes and Related Subsidiaries
Effective Date of 2006 Amendment
[Pub. L. 109–280, title II, § 204(b)(2)], Aug. 17, 2006, [120 Stat. 887], provided that: “The amendment made by this subsection [amending this section] shall apply with respect to work transferred on or after the date of the enactment of this Act [Aug. 17, 2006].”
Effective Date of 1989 Amendment
[Pub. L. 101–239] effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, [Pub. L. 99–514], to which such amendment relates, see [section 7891(f) of Pub. L. 101–239], set out as a note under section 1002 of this title.
Applicability to Certain Employers Engaged in Trade or Business of Shipping Bulk Cargoes in Great Lakes Maritime Industry
[Pub. L. 96–364, title I, § 108(c)(2)], Sept. 26, 1980, [94 Stat. 1268], provided that:
For the purpose of applying section 4205 of the Employee Retirement Income Security Act of 1974 [this section] in the case of an employer described in subparagraph (B)—
‘more than 75 percent’ shall be substituted for ‘70 percent’ in subsections (a) and (b) of such section.
‘25 percent or less’ shall be substituted for ‘30 percent’ in subsection (b) of such section, and
the number of contribution units for the high base year shall be the average annual number of such units for calendar years 1970 and 1971.
An employer is described in this subparagraph if—
the employer is engaged in the trade or business of shipping bulk cargoes in the Great Lakes Maritime Industry, and whose fleet consists of vessels the gross registered tonnage of which was at least 7,800, as stated in the American Bureau of Shipping Record, and
whose fleet during any 5 years from the period 1970 through and including 1979 has experienced a 33 percent or more increase in the contribution units as measured from the average annual contribution units for the calendar years 1970 and 1971.”
Applicability to Specified Plan Year, Cessation of Contribution Obligations, and Contribution Base Units of Employer
[Pub. L. 96–364, title I, § 108(d)], Sept. 26, 1980, [94 Stat. 1269], as amended by [Pub. L. 98–369, div. A, title V, § 558(b)(2)], July 18, 1984, [98 Stat. 899], provided that: “For purposes of section 4205 of the Employee Retirement Income Security Act of 1974 [this section]—
subsection (a)(1) of such section shall not apply to any plan year beginning before September 26, 1982,
subsection (a)(2) of such section shall not apply with respect to any cessation of contribution obligations occurring before September 26, 1980, and
in applying subsection (b) of such section, the employer’s contribution base units for any plan year ending before September 26, 1980, shall be deemed to be equal to the employer’s contribution base units for the last plan year ending before such date.”
Liability of Certain Employers Announcing Publicly Before December 13, 1979, Total Cessation of Covered Operations at a Facility in a State; Amount, Coverage, Determinative Factors, Etc.
[Pub. L. 96–364, title I, § 108(e)], Sept. 26, 1980, [94 Stat. 1269], provided that:
In the case of a partial withdrawal under section 4205 of the Employee Retirement Income Security Act of 1974 [this section], an employer who—
before December 13, 1979, had publicly announced the total cessation of covered operations at a facility in a State (and such cessation occurred within 12 months after the announcement),
had not been obligated to make contributions to the plan on behalf of the employees at such facility for more than 8 years before the discontinuance of contributions, and
after the discontinuance of contributions does not within 1 year after the date of the partial withdrawal perform work in the same State of the type for which contributions were previously required,
shall be liable under such section with respect to such partial withdrawal in an amount not greater than the amount determined under paragraph (2).
The amount determined under this paragraph is the excess (if any) of—
the present value (on the withdrawal date) of the benefits under the plan which—
were vested on the withdrawal date (or, if earlier, at the time of separation from service with the employer at the facility),
were accrued by employees who on December 13, 1979 (or, if earlier, at the time of separation from service with the employer at the facility), were employed at the facility, and
are attributable to service with the withdrawing employer, over
the sum of—
all employer contributions to the plan on behalf of employees at the facility before the withdrawal date,
interest (to the withdrawal date) on amounts described in subclause (I), and
$100,000, reduced by
the sum of—
the benefits paid under the plan on or before the withdrawal date with respect to former employees who separated from employment at the facility, and
interest (to the withdrawal date) on amounts described in subclause (I).
For purposes of paragraph (2)—
actuarial assumptions shall be those used in the last actuarial report completed before December 13, 1979,
the term ‘withdrawal date’ means the date on which the employer ceased work at the facility of the type for which contributions were previously required, and
the term ‘facility’ means the facility referred to in paragraph (1).”