88 STAT. 924 Ante, p. 914. Ante, p. 898. Post, p. 938; Ante, p. 920. 26 USC 404. Pub. Law 93-406 - 96 September 2, 1974 on the unfunded past service liabilities described in clauses (i), (ii), and (iii) of section 412(b)(2)(B) of the Internal Revenue Code of 1954. SEC. 1014. COLLECTIVELY BARGAINED PLANS, ETC. Subpart B of part I of subchapter D of chapter 1 (relating to special rules) is amended by inserting after section 412 the following new section: “SEC. 413. COLLECTIVELY BARGAINED PLANS, ETC. "(a) APPLICATION OF SUBSECTION (b).-Subsection (b) applies to"(1) a plan maintained pursuant to an agreement which the Secretary of Labor finds to be a collective-bargaining agreement between employee representatives and one or more employers, and "(2) each trust which is a part of such plan. "(b) GENERAL RULE.-If this subsection applies to a plan, notwithstanding any other provision of this title (1) PARTICIPATION.-Section 410 shall be applied as if all employees of each of the employers who are parties to the collective bargaining agreement and who are subject to the same benefit computation formula under the plan were employed by a single employer. (2) DISCRIMINATION, ETC.-Sections 401 (a) (4) and 411(d) (3) shall be applied as if all participants who are subject to the same benefit computation formula and who are employed by employers who are parties to the collective bargaining agreement were employed by a single employer. (3) EXCLUSIVE BENEFIT. For purposes of section 401(a), in determining whether the plan of an employer is for the exclusive benefit of his employees and their beneficiaries, all plan participants shall be considered to be his employees. "(4) VESTING.-Section 411 (other than subsection (d)(3)) shall be applied as if all employers who have been parties to the collective-bargaining agreement constituted a single employer, except that the application of any rules with respect to breaks in service shall be made under regulations prescribed by the Secretary of Labor. "(5) FUNDING.-The minimum funding standard provided by section 412 shall be determined as if all participants in the plan were employed by a single employer. "(6) LIABILITY FOR FUNDING TAX.-For a plan year the liability under section 4971 of each employer who is a party to the collective bargaining agreement shall be determined in a reasonable manner not inconsistent with regulations prescribed by the Secretary or his delegate- "(A) first on the basis of their respective delinquencies in meeting required employer contributions under the plan, and "(B) then on the basis of their respective liabilities for contributions under the plan. "(7) DEDUCTION LIMITATIONS. Each applicable limitation provided by section 404 (a) shall be determined as if all participants in the plan were employed by a single employer. The amounts contributed to or under the plan by each employer who is a party to the agreement, for the portion of his taxable year which is included within such a plan year, shall be considered not to exceed such a limitation if the anticipated employer contributions for such plan year (determined in a manner consistent with the manner in which actual employer contributions for such plan year are determined) do not exceed such limitation. If such anticipated contributions exceed such a limitation, the portion of each such employer's contributions which is not deductible under section September 2, 1974 - 97 Pub. Law 93-406 88 STAT. 925 404 shall be determined in accordance with regulations prescribed 26 USC 404. by the Secretary or his delegate. "(8) EMPLOYEES OF LABOR UNIONS.-For purposes of this subsection, employees of employee representatives shall be treated as employees of an employer described in subsection (a)(1) if such representatives meet the requirements of sections 401(a) (4) and 410 with respect to such employees. Post, p. 938; "(c) PLANS MAINTAINED BY MORE THAN ONE EMPLOYER.-In the Ante, p. 898. case of a plan maintained by more than one employer “(1) PARTICIPATION.-Section 410 (a) shall be applied as if all employees of each of the employers who maintain the plan were employed by a single employer. (2) EXCLUSIVE BENEFIT.-For purposes of section 401(a), in determining whether the plan of an employer is for the exclusive benefit of his employees and their beneficiaries all plan participants shall be considered to be his employees. "(3) VESTING.-Section 411 shall be applied as if all employers Ante, p. 901. who maintain the plan constituted a single employer, except that the application of any rules with respect to breaks in service shall be made under regulations prescribed by the Secretary of Labor. "(4) FUNDING.-The minimum funding standard provided by section 412 shall be determined as if all participants in the plan Ante, p. 914. were employed by a single employer. "(5) LIABILITY FOR FUNDING TAX.-For a plan year the liability under section 4971 of each employer who maintains the plan shall Ante, p. 920. be determined in a reasonable manner not inconsistent with regulations prescribed by the Secretary or his delegate "(A) first on the basis of their respective delinquencies in meeting required employer contributions under the plan, and "(B) then on the basis of their respective liabilities for contributions under the plan. "(6) DEDUCTION LIMITATIONS.-Each applicable limitation provided by section 404 (a) shall be determined as if all participants in the plan were employed by a single employer. The amounts contributed to or under the plan by each employer who maintains the plan, for the portion of this taxable year which is included within such a plan year, shall be considered not to exceed such a limitation if the anticipated employer contributions for such plan year (determined in a reasonable manner not inconsistent with regulations prescribed by the Secretary or his delegate) do not exceed such limitation. If such anticipated contributions exceed such a limitation, the portion of each such employer's contributions which is not deductible under section 404 shall be determined in accordance with regulations prescribed by the Secretary or his delegate. Allocations of amounts under paragraphs (4), (5), and (6), among the employers maintaining the plan, shall not be inconsistent with regulations prescribed for this purpose by the Secretary or his delegate." SEC. 1015. DEFINITIONS AND SPECIAL RULES. Subpart B of part I of subchapter D of chapter 1 is amended by inserting after section 413 the following new section: "SEC. 414. DEFINITIONS AND SPECIAL RULES. "(a) SERVICE FOR PREDECESSOR EMPLOYER.-For purposes of this part Ante, p. 924. 75-623 O 74 pt. 1 - 23 88 STAT. 926 26 USC 401. Ante, pp. 898, Ante, p. 920. 22 USC 288 note. 26 USC 501. Pub. Law 93-406 - 98 September 2, 1974 "(1) in any case in which the employer maintains a plan of a predecessor employer, service for such predecessor shall be treated as service for the employer, and "(2) in any case in which the employer maintains a plan which is not the plan maintained by a predecessor employer, service for such predecessor shall, to the extent provided in regulations prescribed by the Secretary or his delegate, be treated as service for the employer. "(b) EMPLOYEES OF CONTROLLED GROUP OF CORPORATIONS.-For purposes of sections 401, 410, 411, and 415, all employees of all corporations which are members of a controlled group of corporations (within the meaning of section 1563 (a), determined without regard to section 1563(a)(4) and (e) (3) (C)) shall be treated as employed by a single employer. With respect to a plan adopted by more than one such corporation, the minimum funding standard of section 412, the tax imposed by section 4971, and the applicable limitations provided by section 404 (a) shall be determined as if all such employers were a single employer, and allocated to each employer in accordance with regulations prescribed by the Secretary or his delegate. "(c) EMPLOYEES OF PARTNERSHIPS, PROPRIETORSHIPS, ETC., WHICH ARE UNDER COMMON CONTROL.-For purposes of sections 401, 410, 411, and 415, under regulations prescribed by the Secretary or his delegate, all employees of trades or businesses (whether or not incorporated) which are under common control shall be treated as employed by a single employer. The regulations prescribed under this subsection shall be based on principles similar to the principles which apply in the case of subsection (b). "(d) GOVERNMENTAL PLAN.-For purposes of this part, the term 'governmental plan' means a plan established and maintained for its employees by the Government of the United States, by the government of any State or political subdivision thereof, or by any agency or instrumentality of any of the foregoing. The term 'governmental plan' also includes any plan to which the Railroad Retirement Act of 1935 or 1937 applies and which is financed by contributions required under that Act and any plan of an international organization which is exempt from taxation by reason of the International Organizations Immunities Act (59 Stat. 669). "(e) CHURCH PLAN. "(1) IN GENERAL.-For purposes of this part the term 'church plan' means "(A) a plan established and maintained for its employees by a church or by a convention or association of churches which is exempt from tax under section 501, or "(B) a plan described in paragraph (3). "(2) CERTAIN UNRELATED BUSINESS OR MULTIEMPLOYER PLANS.— The term 'church plan' does not include a plan "(A) which is established and maintained primarily for the benefit of employees (or their beneficiaries) of such church or convention or association of churches who are employed in connection with one or more unrelated trades or businesses (within the meaning of section 513), or "(B) which is a plan maintained by more than one employer, if one or more of the employers in the plan is not a church (or a convention or association of churches) which is exempt from tax under section 501. "(3) SPECIAL TEMPORARY RULE FOR CERTAIN CHURCH AGENCIES UNDER CHURCH PLAN. "(A) Notwithstanding the provisions of paragraph (2) (B), a plan in existence on January 1, 1974, shall be September 2, 1974 - 99 Pub. Law 93-406 88 STAT. 927 treated as a church plan if it is established and maintained "(B) Subparagraph (A) shall not apply to any plan main- "(C) Subparagraph (A) shall not apply with respect to any plan for any plan year beginning after December 31, 1982. "(f) MULITIEMPLOYER PLAN. "(1) IN GENERAL.— -For purposes of this part, the term 'multiemployer plan' means a plan "(A) to which more than one employer is required to contribute, "(B) which is maintained pursuant to a collective-bargaining agreement between employee representatives and more than one employer, "(C) under which the amount of contributions made under the plan for a plan year by each employer making such contributions is less than 50 percent of the aggregate amount of contributions made under the plan for that plan year by all employers making such contributions, (D) under which benefits are payable with respect to each "(E) which satisfies such other requirements as the Secre- "(A) If a plan is a multiemployer plan within the mean- 26 USC 501. "(B) All corporations which are members of a controlled group of corporations (within the meaning of section 1563 26 USC 1563. (a), determined without regard to section 1563 (e) (3) (C)) shall be deemed to be one employer. "(g) PLAN ADMINISTRATOR.-For purposes of this part, the term 'plan administrator' means "(1) the person specifically so designated by the terms of the instrument under which the plan is operated; "(2) in the absence of a designation referred to in paragraph (1)— "(A) in the case of a plan maintained by a single employer, such employer, "(B) in the case of a plan maintained by two or more employers or jointly by one or more employers and one or 88 STAT. 928 26 USC 401. 26 USC 403, 405. Ante, p. 898. Post, p. 979. Post, p. 971. September 2, 1974 more employee organizations, the association, committee, joint board of trustees, or other similar group of representatives of the parties who maintained the plan, or "(C) in any case to which subparagraph (A) or (B) does not apply, such other person as the Secretary or his delegate may by regulation, prescribe. "(h) TAX TREATMENT OF CERTAIN CONTRIBUTIONS.— "(1) IN GENERAL.-Effective with respect to taxable years beginning after December 31, 1973, for purposes of this title, any amount contributed "(A) to an employees' trust described in section 401 (a), or "(B) under a plan described in section 403 (a) or 405(a), shall not be treated as having been made by the employer if it is designated as an employee contribution." "(2) DESIGNATION BY UNITS OF GOVERNMENT.-For purposes of paragraph (1), in the case of any plan established by the government of any State or political subdivision thereof, or by any agency or instrumentality of any of the foregoing, where the contributions of employing units are designated as employee contributions but where any employing unit picks up the contributions, the contributions so picked up shall be treated as employer contributions. "(i) DEFINED CONTRIBUTION PLAN.-For purposes of this part, the term 'defined contribution plan' means a plan which provides for an individual account for each participant and for benefits based solely on the amount contributed to the participant's account, and any income, expenses, gains and losses, and any forfeitures of accounts of other participants which may be allocated to such participant's account. "(j) DEFINED BENEFIT PLAN.-For purposes of this part, the term 'defined benefit plan' means any plan which is not a defined contribution plan. "(k) CERTAIN PLANS.-A defined benefit plan which provides a benefit derived from employer contributions which is based partly on the balance of the separate account of a participant shall— "(1) for purposes of section 410 (relating to minimum participation standards), be treated as a defined contribution plan, "(2) for purposes of sections 411(a)(7) (A) (relating to minimum vesting standards) and 415 (relating to limitations on benefits and contributions under qualified plans), be treated as consisting of a defined contribution plan to the extent benefits are based on the separate account of a participant and as a defined benefit plan with respect to the remaining portion of benefits under the plan, and "(3) for purposes of section 4975 (relating to tax on prohibited transactions), be treated as a defined benefit plan. "(1) MERGERS AND CONSOLIDATIONS OF PLANS OR TRANSFERS OF PLAN ASSETS. A trust which forms a part of a plan shall not constitute a qualified trust under section 401 and a plan shall be treated as not described in section 403 (a) or 405 unless in the case of any merger or consolidation of the plan with, or in the case of any transfer of assets or liabilities of such plan to, any other trust plan after the date of the enactment of the Employee Retirement Income Security Ante, p. 829. Act of 1974, each participant in the plan would (if the plan then terminated) receive a benefit immediately after the merger, consolidation, or transfer which is equal to or greater than the benefit he would have been entitled to receive immediately before the merger, consolidation, or transfer (if the plan had then terminated). This paragraph |