Pub. Law 93-406 88 STAT. 1034 - 206 September 2, 1974 "(g) CERTAIN EMPLOYER LIABILITY PAYMENTS CONSIDERED AS CONTRIBUTIONS.-For purposes of this section any amount paid by an employer under section 4062, 4063, or 4064 of the Employee RetireAnte, pp. 1029- ment Income Security Act of 1974 shall be treated as a contribution 1031. to which this section applies by such employer to or under a stock bonus, pension, profit-sharing, or annuity plan.". 26 USC 6511. Ante, p. 1027. 29 USC 1381. Ante, p. 1014. Ante, p. 1028. (b) Section 6511(d) of the Internal Revenue Code of 1954 (relating to special rules applicable to income taxes) is amended by adding at the end thereof the following new paragraph: "(8) SPECIAL PERIOD OF LIMITATION WITH RESPECT TO AMOUNTS INCLUDED IN INCOME SUBSEQUENTLY RECAPTURED UNDER QUALIFIED PLAN TERMINATION.-If the claim for credit or refund relates to an overpayment of tax imposed by subtitle A on account of the recapture, under section 4045 of the Employee Retirement Income Security Act of 1974, of amounts included in income for a prior taxable year, the 3-year period of limitation prescribed in subsection (a) shall be extended, for purposes of permitting a credit or refund of the amount of the recapture, until the date which occurs one year after the date on which such recaptured amount is paid by the taxpayer.". EFFECTIVE DATE; SPECIAL RULES SEC. 4082. (a) The provisions of this title take effect on the date of enactment of this Act. (b) Notwithstanding the provisions of subsection (a), the corporation shall pay benefits guaranteed under this title with respect to any plan (1) which is not a multiemployer plan, which terminates after June 30, 1974, and before the date of enactment of this Act, (3) to which section 4021 would apply if that section were effective beginning on July 1, 1974, and (4) with respect to which a notice is filed with the Secretary of Labor and received by him not later than 10 days after the date of enactment of this Act, except that, for reasonable cause shown, such notice may be filed with the Secretary of Labor and received by him not later than October 31, 1974, stating that the plan is a plan described in paragraphs (1), (2), and (3). The corporation shall not pay benefits guaranteed under this title with respect to a plan described in the preceding sentence unless the corporation finds substantial evidence that the plan was terminated for a reasonable business purpose and not for the purpose of obtaining the payment of benefits by the corporation under this title or for the purpose of avoiding the liability which might be imposed under subtitle D if the plan terminated on or after the date of enactment of this Act. The provisions of subtitle D do not apply in the case of such a plan which terminates before the date of enactment of this Act. For purposes of determining whether a plan is a plan described in paragraph (2), the provisions of section 4048 shall not apply, but the corporation shall make the determination on the basis of the date on which benefits ceased to accrue or on any other reasonable basis consistent with the purposes of this subsection. (c) (1) Except as provided in paragraphs (2), (3), and (4), the corporation shall not pay benefits guaranteed under this title with respect to a multiemployer plan which terminates before January 1, September 2, 1974 - 207 Pub. Law 93-406 1978. Whenever the corporation exercises the authority granted under paragraph (2) or (3), the corporation shall notify the Committee on Education and Labor and the Committee on Ways and Means of the House of Representatives, and the Committee on Labor and Public Welfare and the Committee on Finance of the Senate. (2) The corporation may, in its discretion, pay benefits guaranteed under this title with respect to a multiemployer plan which terminates after the date of enactment of this Act and before January 1, 1978, if— (A) the plan was maintained during the 60 months immediately preceding the date on which the plan terminates, and (B) the corporation determines that the payment by the corporation of benefits guaranteed under this title with respect to that plan will not jeopardize the payments the corporation anticipates it may be required to make in connection with benefits guaranteed under this title with respect to multiemployer plans which terminate after December 31, 1977. (3) Notwithstanding any provision of section 4021 or 4022 which would prevent such payments, the corporation, in carrying out its authority under paragraph (2), may pay benefits guaranteed under this title with respect to a multiemployer plan described in paragraph (2) in any case in which those benefits would otherwise not be payable if (A) the plan has been in effect for at least 5 years, (B) the plan has been in substantial compliance with the funding requirements for a qualified plan with respect to the employees and former employees in those employment units on the basis of which the participating employers have contributed to the plan for the preceding 5 years, and (C) the participating employers and employee organization or organizations had no reasonable recourse other than termination. (4) If the corporation determines, under paragraph (2) or (3), that it will pay benefits guaranteed under this title with respect to a multiemployer plan which terminates before January 1, 1978, the corporation (A) may establish requirements for the continuation of payments which commenced before January 2, 1974, with respect to retired participants under the plan, (B) may not, notwithstanding any other provision of this title, make payments with respect to any participant under such a plan who, on January 1, 1974, was receiving payment of retirement benefits, in excess of the amounts and rates payable with respect to such participant on that date, (C) may not make any payments with respect to benefits guaranteed under this title in connection with such a plan which are derived, directly or indirectly, from amounts borrowed under section 4005 (c), and 88 STAT. 1035 Ante, p. 1009. 88 STAT. 1035 Pub. Law 93-406 - 208 September 2, 1974 (D) shall review from time to time payments made under the uthority granted to it by paragraphs (2) and (3), and reduce r terminate such payments to the extent necessary to avoid jeoprdizing the ability of the corporation to make payments of beneits guaranteed under this title in connection with multiemployer plans which terminate after December 31, 1977, without increasing premium rates for such plans. proved September 2, 1974. LEGISLATIVE HISTORY:: HOUSE REPORTS: No. 93-533 (Comm. on Education and Labor); No. 93-779 H.R. 12855, No. 93-298 accompanying H. R. 4200 (all from SENATE REPORTS: No. 93-394 accompanying H. R. 4200 (Comm. on Finance) CONGRESSIONAL RECORD: Vol. 119 (1973): June 27, H. R. 4200 considered and passed House. Sept. 19, H. R. 4200 considered and passed Senate, amended. Vol. 120 (1974): Feb. 26-28, considered and passed House. Mar. 4, considered and passed Senate, amended. WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS: Printed for the use of the Committee on Labor and Public Welfare 75-623 O U.S. GOVERNMENT PRINTING OFFICE WASHINGTON: 1974 For sale by the Superintendent of Documents, U.S. Government Printing Office Washington, D.C. 20402 - Price $2.30 COMMITTEE ON LABOR AND PUBLIC WELFARE HARRISON A. WILLIAMS, JR., New Jersey, Chairman JENNINGS RANDOLPH, West Virginia JACOB K. JAVITS, New York J. GLENN BEALL, JR., Maryland JOSEPH P. MCMURRAY, Staff Director and Chief Legislative Counsel ROY H. MILLENSON, Minority Staff Director JAY B. CUTLER, Minority Counsel SUBCOMMITTEE ON LABOR HARRISON A. WILLIAMS, JR., New Jersey, Chairman RICHARD S. SCHWEIKER, Pennsylvania ROBERT T. STAFFORD, Vermont JENNINGS RANDOLPH, West Virginia JACOB K. JAVITS, New York DONALD E. ELISBURG, Counsel (II) |