29 U.S.C. § 1202 — Procedures with respect to continued compliance with Internal Revenue requirements relating to participation, vesting, and funding standards
submitted 52 years ago by Pub. L. 93-406 to r/title-29-LABOR · 890 words · no verdicts yet
This section coordinates the Treasury Department, Labor Department, and Pension Benefit Guaranty Corporation when applying federal participation, vesting, and funding rules to employee plans. It requires notices, consultation, investigations, shared regulations, and an opportunity for Treasury to review and join cases.
(a) Treasury notice about participation and vesting. When reviewing whether a plan or trust meets Internal Revenue Code sections 410(a) or 411, the Treasury Secretary must notify the Labor Secretary when issuing a preliminary intent-to-disqualify notice or, if earlier, when beginning a proceeding. Unless tax collection is in jeopardy, Treasury must wait 60 days after notice before deciding the plan or trust fails. Treasury may extend that period if the extension could let Labor obtain compliance. Unless this chapter says otherwise, Labor generally may not apply subtitle B subchapter I part 2 to a plan or trust subject to those Code sections, but must refer alleged general participation or vesting violations to Treasury. The last rule does not apply to individual-benefit matters. (b) Funding-tax notice and investigation. Unless collection is in jeopardy, Treasury must notify Labor before sending an employer a deficiency notice for a tax under Code section 4971 and give Labor a chance to comment. Treasury may waive the section 4971(b) tax in appropriate cases. On Labor’s or PBGC’s written request, Treasury must promptly investigate whether section 4971 tax should apply to the named employer. Treasury and Labor must consult periodically to coordinate Code section 412 funding rules with this chapter’s funding standards. (c) Treasury regulations. Treasury regulations under Code sections 410(a), 411, and 412 also apply to this chapter’s participation, vesting, and funding standards. Unless this chapter expressly says otherwise, Labor may not issue other regulations under those parts or apply Treasury regulations inconsistently with their Code application. (d) Intervention. Before Labor or PBGC files a brief about construing or applying those standards, it must give Treasury a reasonable chance to review it. Treasury may intervene in the case. (e) Consultation on regulations. Treasury must consult PBGC before publishing a proposed or final regulation authorized by the specified Internal Revenue Code provisions or sections 1421–1426 of this title.
In carrying out the provisions of part I of subchapter D of chapter 1 of title 26 with respect to whether a plan or a trust meets the requirements of section 410(a) or 411 of title 26 (relating to minimum participation standards and minimum vesting standards, respectively), the Secretary of the Treasury shall notify the Secretary of Labor when the Secretary of the Treasury issues a preliminary notice of intent to disqualify related to the plan or trust or, if earlier, at the time of commencing any proceeding to determine whether the plan or trust satisfies such requirements. Unless the Secretary of the Treasury finds that the collection of a tax imposed under title 26 is in jeopardy, the Secretary of the Treasury shall not issue a determination that the plan or trust does not satisfy the requirements of such section until the expiration of a period of 60 days after the date on which he notifies the Secretary of Labor of such review. The Secretary of the Treasury, in his discretion, may extend the 60-day period referred to in the preceding sentence if he determines that such an extension would enable the Secretary of Labor to obtain compliance with such requirements by the plan within the extension period. Except as otherwise provided in this chapter, the Secretary of Labor shall not generally apply part 2 of subtitle B of subchapter I of this chapter to any plan or trust subject to sections 410(a) and 411 of title 26, but shall refer alleged general violations of the vesting or participation standards to the Secretary of the Treasury. (The preceding sentence shall not apply to matters relating to individuals benefits.)
Unless the Secretary of the Treasury finds that the collection of a tax is in jeopardy, in carrying out the provisions of section 4971 of title 26 (relating to taxes on the failure to meet minimum funding standards), the Secretary of the Treasury shall notify the Secretary of Labor before sending a notice of deficiency with respect to any tax imposed under that section on an employer, and, in accordance with the provisions of subsection (d) of that section, afford the Secretary of Labor an opportunity to comment on the imposition of the tax in the case. The Secretary of the Treasury may waive the imposition of the tax imposed under section 4971(b) of title 26 in appropriate cases. Upon receiving a written request from the Secretary of Labor or from the Pension Benefit Guaranty Corporation, the Secretary of the Treasury shall cause an investigation to be commenced expeditiously with respect to whether the tax imposed under section 4971 of title 26 should be applied with respect to any employer to which the request relates. The Secretary of the Treasury and the Secretary of Labor shall consult with each other from time to time with respect to the provisions of section 412 of title 26 (relating to minimum funding standards) and with respect to the funding standards applicable under subchapter I of this chapter in order to coordinate the rules applicable under such standards.
Regulations prescribed by the Secretary of the Treasury under sections 410(a), 411, and 412 of title 26 (relating to minimum participation standards, minimum vesting standards, and minimum funding standards, respectively) shall also apply to the minimum participation, vesting, and funding standards set forth in parts 2 and 3 of subtitle B of subchapter I of this chapter. Except as otherwise expressly provided in this chapter, the Secretary of Labor shall not prescribe other regulations under such parts, or apply the regulations prescribed by the Secretary of the Treasury under sections 410(a), 411, 412 of title 26 and applicable to the minimum participation, vesting, and funding standards under such parts in a manner inconsistent with the way such regulations apply under sections 410(a), 411, and 412 of title 26.
The Secretary of Labor and the Pension Benefit Guaranty Corporation, before filing briefs in any case involving the construction or application of minimum participation standards, minimum vesting standards, or minimum funding standards under subchapter I of this chapter shall afford the Secretary of the Treasury a reasonable opportunity to review any such brief. The Secretary of the Treasury shall have the right to intervene in any such case.
The Secretary of the Treasury shall consult with the Pension Benefit Guaranty Corporation with respect to any proposed or final regulation authorized by subpart C of part I of subchapter D of chapter 1 of title 26, or by sections 1421 through 1426 1 of this title, before publishing any such proposed or final regulation.
Source credit: (Pub. L. 93–406, title III, § 3002, Sept. 2, 1974, 88 Stat. 996; Pub. L. 96–364, title IV, § 402(b)(3), Sept. 26, 1980, 94 Stat. 1299; Pub. L. 101–239, title VII, § 7891(a)(1), Dec. 19, 1989, 103 Stat. 2445.)
- 1974Enacted · Pub. L. 93-406 · 88 Stat. 996
- 1980Amended · Pub. L. 96-364 · 94 Stat. 1299
- 1989Amended · Pub. L. 101-239 · 103 Stat. 2445
A history note hasn’t been published yet. The record shows enactment by Pub. L. 93-406 on 1974-09-02.
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