filled in the manner in which that office was (6) The advisory committee shall appoint and (7) Members of the advisory committee shall, (8) The Federal Advisory Committee Act does (Pub. L. 93-406, title IV, § 4002, Sept. 2, 1974, 88 REFERENCES IN TEXT The District of Columbia Nonprofit Corporation This chapter, referred to in subsec. (b)(3), (4), and The Federal Insurance Contributions Act, referred The Federal Unemployment Tax Act, referred to in GS-18 of the General Schedule, referred to in The Federal Advisory Committee Act, referred to in CODIFICATION Subsec. (c) amended section 5108 of Title 5, Govern- nance. AMENDMENTS 1980-Subsec. (b)(3). Pub. L. 96-364, § 403(1), added Subsec. (g)(2). Pub. L. 96-364, § 406(a), substituted 1976-Subsec. (g)(1). Pub. L. 94-455 exempted the EFFECTIVE DATE OF 1980 AMENDMENT Section 406(b) of Pub. L. 96-364 provided that: "The Amendment of subsec. (b)(3) by Pub. L. 96-364 effec- EFFECTIVE DATE OF 1976 AMENDMENT Section 1510(b) of Pub. L. 94-455 provided that: SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 1301 of this § 1303. Operation of corporation (a) Investigatory authority The corporation may make such investiga- (b) Discovery powers vested in board members or of- For the purpose of any such investigation, or In the case of contumacy by, or refusal to papers, correspondence, memoranda, and other records. The court may issue an order requiring such person to appear before the corporation, or member or officer designated by the corporation, and to produce records or to give testimony related to the matter under investigation or in question. Any failure to obey such order of the court may be punished by the court as a contempt thereof. All process in any such case may be served in the judicial district in which such person is an inhabitant or may be found. (d) Cooperation with other governmental agencies In order to avoid unnecessary expense and duplication of functions among government agencies, the corporation may make such arrangements or agreements for cooperation or mutual assistance in the performance of its functions under this subchapter as is practicable and consistent with law. The corporation may utilize the facilities or services of any department, agency, or establishment of the United States or of any State or political subdivision of a State, including the services of any of its employees, with the lawful consent of such department, agency, or establishment. The head of each department, agency, or establishment of the United States shall cooperate with the corporation and, to the extent permitted by law, provide such information and facilities as it may request for its assistance in the performance of its functions under this subchapter. The Attorney General or his representative shall receive from the corporation for appropriate action such evidence developed in the performance of its functions under this subchapter as may be found to warrant consideration for criminal prosecution under the provisions of this or any other Federal law. (e) Civil actions by corporation; jurisdiction; process; expeditious handling of case; costs (1) Civil actions may be brought by the corporation for appropriate relief, legal or equitable or both, to enforce the provisions of this subchapter. (2) Except as otherwise provided in this subchapter, where such an action is brought in a district court of the United States, it may be brought in the district where the plan is administered, where the violation took place, or where a defendant resides or may be found, and process may be served in any other district where a defendant resides or may be found. (3) The district courts of the United States shall have jurisdiction of actions brought by the corporation under this subchapter without regard to the amount in controversy in any such action. (4) Upon application by the corporation to a court of the United States for expedited handling of any case in which the corporation is a party, it is the duty of that court to assign such case for hearing at the earliest practical date and to cause such case to be in every way expedited. (5) In any action brought under this subchapter, whether to collect premiums, penalties, and interest under section 1307 of this title or for any other purpose, the court may award to the corporation all or a portion of the costs of litigation incurred by the corporation in connection with such action. (f) Civil actions against corporation; appropriate court; jurisdiction; removal of actions Except as provided in section 1451(a)(2) of this title, any participant, beneficiary, plan administrator, or employee adversely affected by any action of the corporation, or by a receiver or trustee appointed by the corporation, with respect to a plan in which such participant, beneficiary, plan administrator or employer has an interest, may bring an action against the corporation, receiver, or trustee in the appropriate court. For purposes of this subsection the term "appropriate court" means the United States district court before which proceedings under section 1341 or 1342 of this title are being conducted, or if no such proceedings are being conducted the United States district court for the district in which the plan has its principal office, or the United States district court for the District of Columbia. The district courts of the United States have jurisdiction of actions brought under this subsection without regard to the amount in controversy. In any suit, action, or proceeding in which the corporation is a party, or intervenes under section 1451 of this title, in any State court, the corporation may, without bond or security, remove such suit, action, or proceeding from the State court to the United States District Court for the district or division embracing the place where the same is pending by following any procedure for removal now or hereafter in effect. (Pub. L. 93-406, title IV, § 4003, Sept. 2, 1974, 88 Stat. 1006; Pub. L. 96-364, title IV, §§ 402(a)(2), 403(k), Sept. 26, 1980, 94 Stat. 1297, 1302.) AMENDMENTS 1980-Subsec. (a). Pub. L. 96-364, § 402(a)(2)(A), substituted "enforce" for "determine whether any person has violated or is about to violate". Subsec. (e)(1). Pub. L. 96–364, § 402(a)(2)(B), substituted "enforce" for "redress violations of". Subsec. (f). Pub. L. 96-364, §§ 402(a)(2)(C), 403(k), substituted "Except as provided in section 1451(a)(2) of the title, any" for "Any" and added provisions relating to removal of actions. EFFECTIVE DATE OF 1980 AMENDMENT Amendment by Pub. L. 96-364 effective Sept. 26, 1980, except as specifically provided, see section 1461(e) of this title. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 1461 of this title. § 1304. Temporary authority for initial period (a) Appointment of receiver Notwithstanding anything to the contrary in this subchapter, the corporation may, upon receipt of notice that a plan is to be terminated or upon making a determination described in section 1342 of this title, appoint a receiver whose powers shall take effect immediately. The receiver shall assume control of such plan and its assets, protecting the interests of all interested persons during subsequent proceedings. (b) Court approval of appointment of receiver (1) Within a reasonable time, not exceeding 20 days, after the appointment of a receiver under subsection (a) of this section, the corporation shall apply to an appropriate United States district court for a decree approving such appointment. The court to which application is made shall issue a decree approving such appointment unless it determines that such approval would not be in the best interests of the participants and beneficiaries of the plan. (2) If the court to which application is made under paragraph (1) dismisses the application with prejudice, or if the corporation fails to apply for a decree under paragraph (1) within 20 days after the appointment of the receiver, the receiver shall transfer all assets and records of the plan held by him to the plan administrator within 3 business days after such dismissal or the expiration of the 20 day period. The receiver shall not be liable to the plan or to any other person for his acts as receiver other than for willful misconduct, or for conduct in violation of the provisions of part 4 of subpart B1 of subchapter I of this chapter (except to the extent that the provisions of section 1342(d)(1)(A) of this title provide otherwise). (c) Application to district court by plan administrator for appointment of receiver as alternative to appointment of receiver by corporation The corporation is authorized, as an alternative to appointing a receiver under subsection (a) of this section, to direct a plan administrator to apply to a district court of the United States for the appointment of a receiver to assume control of the plan and its assets for the purpose of protecting the interests of all interested persons until the plan can be terminated under the provisions of this subchapter. (d) Powers and functions of receiver A receiver appointed under this section has the powers of a trustee under section 1342(d)(1) (A) and (B) of this title, and shall report to the corporation and the court on the plan from time to time as required by either the corporation or the court. As soon as practicable after his appointment, a receiver appointed under this section shall determine whether the assets of the plan are sufficient to discharge when due all obligations of the plan with respect to benefits guaranteed under this subchapter in accordance with the requirements of section 1344 of this title. If the determination of the receiver is approved by the corporation and the court, the receiver shall proceed as if he were a trustee appointed under section 1342 of this title. (e) Initial period set at 270 days following September 2, 1974 A receiver may not be appointed under this section more than 270 days after September 2, 1974. (Pub. L. 93-406, title IV, § 4004, Sept. 2, 1974, 88 Stat. 1008.) 'So in original. Probably should be "subtitle B". CODIFICATION Subsec. (f) of this section, which prescribed additional corporate powers during an initial period of 270 days after Sept. 2, 1974, was omitted from the Code. § 1305. Pension benefit guaranty funds (a) Establishment of four revolving funds on books of Treasury of the United States There are established on the books of the Treasury of the United States for 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 section 1322 of this title, one of the funds shall be used with respect to basic benefits guaranteed under section 1322a of this title, one of the funds shall be used with respect to nonbasic benefits guaranteed under section 1322 of this title (if any), and the remaining fund shall be used with respect to nonbasic benefits guaranteed under section 1322a of this title (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) funds borrowed under subsection (c) of this section, (B) premiums, penalties, interest, and charges collected under this subchapter, (C) the value of the assets of a plan administered under section 1342 of this title by a trustee to the extent that they exceed the liabilities of such plan, (D) the amount of any employer liability payments under subtitle D of this subchapter, to the extent that such payments exceed liabilities of the plan (taking into account all other plan assets), (E) earnings on investments of the fund or on assets credited to the fund under this subsection, and (F) receipts from any other operations under this subchapter. (2) Subject to the provisions of subsection (a) of this section, each fund shall be available (A) for making such payments as the corporation determines are necessary to pay benefits guaranteed under section 1322 or 1322a of this title, (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 repay to the Secretary of the Treasury such sums as may be borrowed (together with interest thereon) under subsection (c) of this section, and (D) to pay the operational and administrative expenses of the corporation, including re imbursement of the expenses incurred by the Department of the Treasury in maintaining the funds, and the Comptroller General in auditing the corporation. (3) 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 but, until all borrowings under subsection (c) of this section 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. (c) Authority to issue notes or other obligations; purchase by Secretary of the Treasury as public debt transaction The corporation is authorized to issue to the Secretary of the Treasury notes or other obligations in an aggregate amount of not to exceed $100,000,000, in such forms and denominations, bearing such maturities, and subject to such terms and conditions as may be prescribed by the Secretary of the Treasury. Such notes or other obligations shall bear interest at a rate determined by the Secretary of the Treasury, taking into consideration the current average market yield on outstanding marketable obligations of the United States of comparable maturities during the month preceding the issuance of such notes or other obligations of the corporation. The Secretary of the Treasury is authorized and directed to purchase any notes or other obligations issued by the corporation under this subsection, and for that purpose he is authorized to use as a public debt transaction the proceeds from the sale of any securities issued under chapter 31 of title 31, and the purposes for which securities may be issued under that chapter, are extended to include any purchase of such notes and obligations. The Secretary of the Treasury may at any time sell any of the notes or other obligations acquired by him under this subsection. All redemptions, purchases, and sales by the Secretary of the Treasury of such notes or other obligations shall be treated as public debt transactions of the United States. (e) Establishment of sixth fund; purpose, availability, etc. (1) A sixth fund shall be established for the supplemental benefit guarantee program provided under section 1322a(g)(2) of this title. (2) Such fund shall be credited with the appropriate (A) premiums, penalties, and interest charges collected under section 1322a(g)(2) of this title, and (B) earnings on investments of the fund or on assets credited to the fund. The fund shall be available for making payments pursuant to the supplemental benefit guarantee program established under section 1322a(g)(2) of this title, 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) 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) None of the funds borrowed under subsection (c) of this section 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) of this section. (3) 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. (Pub. L. 93-406, title IV, § 4005, Sept. 2, 1974, 88 Stat. 1009; Pub. L. 96-364, title IV, § 403(a), Sept. 26, 1980, 94 Stat. 1300.) CODIFICATION In subsec. (c), "chapter 31 of title 31" and "that chapter" were substituted for "the Second Liberty Bond Act, as amended" and "that Act, as amended,", respectively, on authority of Pub. L. 97-258, § 4(b), Sept. 13, 1982, 96 Stat. 1067, the first section of which enacted Title 31, Money and Finance. AMENDMENTS 1980-Subsec. (a). Pub. L. 96-364, § 403(a)(1), 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. Subsec. (b)(2). Pub. L. 96-364, § 403(a)(2), (3), in subpar. (A) added reference to section 1322a of this title, struck out subpar. (B) relating to payments under section 1323 of this title, and redesignated former subpars. (C) to (E) as (B) to (D), respectively. Subsecs. (d) to (f). Pub. L. 96-364, § 403(a)(4), added subsecs. (d) to (f). EFFECTIVE DATE OF 1980 AMENDMENT Amendment by Pub. L. 96-364 effective Sept. 26, 1980, except as specifically provided, see section 1461(e) of this title. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 1301, 1302, 1308, 1322a, 1361, 1461 of this title. § 1306. Premium rates (a) Schedules for premium rates and bases for application; establishment, coverage, etc. (1) The corporation shall prescribe such schedules of premium rates and bases for the application of those rates as may be necessary to provide sufficient revenue to the fund for the corporation to carry out its functions under this subchapter. The premium rates charged by the corporation for any period shall be uniform for all plans, other than multiemployer plans, insured by the corporation with respect to basic benefits guaranteed by it under section 1322 of this title, and shall be uniform for all multiemployer plans with respect to basic benefits guaranteed by it under section 1322a of this title. In establishing annual premiums with respect to plans, other than multiemployer plans, paragraphs (5) and (6) of this subsection (as in effect before September 26, 1980) shall continue to apply. (2) The corporation shall maintain separate schedules of premium rates, and bases for the application of those rates, for— (A) basic benefits guaranteed by it under section 1322 of this title for single-employer plans, (B) basic benefits guaranteed by it under section 1322a of this title for multiemployer plans, (C) nonbasic benefits guaranteed by it under section 1322 of this title for single-employer plans, (D) nonbasic benefits guaranteed by it under section 1322a of this title for multiemployer plans, and (E) reimbursements of uncollectible withdrawal liability under section 1402 of this title. The corporation may revise such schedules whenever it determines that revised schedules are necessary. Except as provided in section 1322a(f) of this title, in order to place a revised schedule described in subparagraph (A) or (B) in effect, the corporation shall proceed in accordance with subsection (b)(1) of this section, and such schedule shall apply only to plan years beginning more than 30 days after the date on which the Congress approves such revised schedule by a concurrent resolution. (3)(A) Except as provided in subparagraph (C), the annual premium rate payable to the corporation by all plans for basic benefits guaranteed under this subchapter is (i) in the case of a single-employer plan, for plan years beginning after December 31, 1977, an amount equal to $2.60 for each individual who is a participant in such plan during the plan year; (ii) in the case of a multiemployer plan, for the plan year within which the date of enactment of the Multiemployer Pension Plan Amendments Act of 1980 falls, an amount for each individual who is a participant in such plan for such plan year equal to the sum of— (I) 50 cents, multiplied by a fraction the numerator of which is the number of months in such year ending on or before such date and the denominator of which is 12, and (II) $1.00, multiplied by a fraction equal to 1 minus the fraction determined under clause (i), (iii) in the case of a multiemployer plan, for plan years beginning after September 26, 1980, an amount equal to— (I) $1.40 for each participant, for the first, second, third, and fourth plan years, (II) $1.80 for each participant, for the fifth and sixth plan years, (III) $2.20 for each participant, for the seventh and eighth plan years, and (IV) $2.60 for each participant, for the ninth plan year, and for each succeeding plan year. (B) The corporation may prescribe by regulation the extent to which the rate described in subparagraph (A)(i) applies more than once for any plan year to an individual participating in more than one plan maintained by the same employer, and the corporation may prescribe regulations under which the rate described in subparagraph (A)(iii) will not apply to the same participant in any multiemployer plan more than once for any plan year. (C)(i) If the sum of— (I) the amounts in any fund for basic benefits guaranteed for multiemployer plans, and (II) the value of any assets held by the corporation for payment of basic benefits guaranteed for multiemployer plans, is for any calendar year less than 2 times the amount of basic benefits guaranteed by the corporation under this subchapter for multiemployer plans which were paid out of any such fund or assets during the preceding calendar year, the annual premium rates under subparagraph (A) shall be increased to the next highest premium level necessary to insure that such sum will be at least 2 times greater than such amount during the following calendar year. (ii) If the board of directors of the corporation determines that an increase in the premium rates under subparagraph (A) is necessary to provide assistance to plans which are receiving assistance under section 1431 of this title and to plans the board finds are reasonably likely to require such assistance, the board may order such increase in the premium rates. (iii) The maximum annual premium rate which may be established under this subparagraph is $2.60 for each participant. (iv) The provisions of this subparagraph shall not apply if the annual premium rate is increased to a level in excess of $2.60 per participant under any other provisions of this subchapter. (D)(i) Not later than 120 days before the date on which an increase under subparagraph (C)(ii) is to become effective, the corporation shall publish in the Federal Register a notice of the determination described in subparagraph (C)(ii), the basis for the determination, the amount of the increase in the premium, and the anticipated increase in premium income that would result from the increase in the premium rate. The notice shall invite public comment, and shall provide for a public hearing if one is requested. Any such hearing shall be |