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Pension Resource

ERISA § 304 (29 U.S.C. § 1084)

Minimum funding standards for multiemployer plans
USC 1994 ed., current through 1995-01-04 · superseded Jan 8, 2008 · last amended by Pub. L. 101-239
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(a) Determinations by Secretary in granting extension The period of years required to amortize any unfunded liability (described in any clause of subsection (b)(2)(B) of section 1082 of this title) of any plan may be extended by the Secretary for a period of time (not in excess of 10 years) if he determines that such extension would carry out the purposes of this chapter and would provide adequate protection for participants under the plan and their beneficiaries and if he determines that the failure to permit such extension would—
(1) result in—
(A) a substantial risk to the voluntary continuation of the plan, or
(B) a substantial curtailment of pension benefit levels or employee compensation, and
(2) be adverse to the interests of plan participants in the aggregate.
In the case of a plan other than a multiemployer plan, the interest rate applicable for any plan year under any arrangement entered into by the Secretary in connection with an extension granted under this subsection shall be the greater of (A) 150 percent of the Federal mid-term rate (as in effect under section 1274 of title 26 for the 1st month of such plan year), or (B) the rate of interest used under the plan in determining costs. In the case of a multiemployer plan, such rate shall be the rate determined under section 6621(b) of title 26.
(b) Amendment of plan
(1) No amendment of the plan which increases the liabilities of the plan by reason of any increase in benefits, any change in the accrual of benefits, or any change in the rate at which benefits become nonforfeitable under the plan shall be adopted if a waiver under section 1083(a) of this title or an extension of time under subsection (a) of this section is in effect with respect to the plan, or if a plan amendment described in section 1082(c)(8) of this title has been made at any time in the preceding 12 months (24 months in the case of a multiemployer plan). If a plan is amended in violation of the preceding sentence, any such waiver, or extension of time, shall not apply to any plan year ending on or after the date on which such amendment is adopted.
(2) Paragraph (1) shall not apply to any plan amendment which—
(A) the Secretary determines to be reasonable and which provides for only de minimis increases in the liabilities of the plan,
(B) only repeals an amendment described in section 1082(c)(8) of this title, or
(C) is required as a condition of qualification under part I of subchapter D, of chapter 1, of title 26.
(c) Notice of filing of application for extension
(1) The Secretary of the Treasury shall, before granting an extension under this section, require each applicant to provide evidence satisfactory to such Secretary that the applicant has provided notice of the filing of the application for such extension to each employee organization representing employees covered by the affected plan.
(2) The Secretary of the Treasury shall consider any relevant information provided by a person to whom notice was given under paragraph (1).
Source credit, amendments & notes

(Pub. L. 93–406, title I, §304, Sept. 2, 1974, 88 Stat. 873; Pub. L. 99–272, title XI, §§11015(b)(1)(B), 11016(c)(3), Apr. 7, 1986, 100 Stat. 267, 273; Pub. L. 100–203, title IX, §9306(c)(2)(B), Dec. 22, 1987, 101 Stat. 1330–355; Pub. L. 101–239, title VII, §§7891(a)(1), 7894(d)(3), Dec. 19, 1989, 103 Stat. 2445, 2449.)

Repeal of Section

Pub. L. 109–280, title I, §101(a), (d), Aug. 17, 2006, 120 Stat. 784, 789, provided that, applicable to plan years beginning after 2007, this section is repealed.

Enactment of Section

Pub. L. 109–280, title II, §201(a), (d), Aug. 17, 2006, 120 Stat. 858, 868, provided that, applicable to plan years beginning after 2007, with special rule for certain amortization extensions, a new section 1084 of this title is enacted to read as follows:

References in Text

This chapter, referred to in subsec. (a), 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.

Amendments

1989—Subsec. (b)(2)(A). Pub. L. 101–239, §7894(d)(3), substituted a comma for period at end.

Subsec. (b)(2)(C). Pub. L. 101–239, §7891(a)(1), 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.

1987—Subsec. (a). Pub. L. 100–203 amended last sentence generally. Prior to amendment, last sentence read as follows: “The interest rate applicable under any arrangement entered into by the Secretary in connection with an extension granted under this subsection shall be the rate determined under section 6621(b) of title 26.”

1986—Subsec. (a). Pub. L. 99–272, §11015(b)(1)(B), inserted provision that the interest rate applicable under any arrangement entered into by the Secretary in connection with an extension granted under this subsection be the rate determined under section 6621(b) of title 26.

Subsec. (c). Pub. L. 99–272, §11016(c)(3), added subsec. (c).

Effective Date of 2006 Amendment

New section 1084 of this title, enacted by section 201(a) of Pub. L. 109–280, applicable to plan years beginning after 2007, with special rule for certain amortization extensions, see section 201(d) of Pub. L. 109–280, set out as a note under section 1081 of this title.

Effective Date of 1989 Amendment

Amendment by section 7891(a)(1) of 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.

Amendment by section 7894(d)(3) of Pub. L. 101–239 effective, except as otherwise provided, as if originally included in the provision of the Employee Retirement Income Security Act of 1974, Pub. L. 93–406, to which such amendment relates, see section 7894(i) of Pub. L. 101–239, set out as a note under section 1002 of this title.

Effective Date of 1987 Amendment

Amendment by Pub. L. 100–203 applicable in the case of any application submitted after Dec. 17, 1987, and any waiver granted pursuant to such an application, see section 9306(f) of Pub. L. 100–203, set out as a note under section 412 of Title 26, Internal Revenue Code.

Effective Date of 1986 Amendment

Amendment by Pub. L. 99–272 effective Jan. 1, 1986, with certain exceptions, see section 11019 of Pub. L. 99–272, set out as a note under section 1341 of this title.

Shortfall Funding Method

Pub. L. 109–280, title II, §201(b), Aug. 17, 2006, 120 Stat. 867, provided that:

“(1) In general.—A multiemployer plan meeting the criteria of paragraph (2) may adopt, use, or cease using, the shortfall funding method and such adoption, use, or cessation of use of such method, shall be deemed approved by the Secretary of the Treasury under section 302(d)(1) of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1082(d)(1)] and section 412(d)(1) of the Internal Revenue Code of 1986 [26 U.S.C. 412(d)(1)].

“(2) Criteria.—A multiemployer pension plan meets the criteria of this clause if—

“(A) the plan has not used the shortfall funding method during the 5-year period ending on the day before the date the plan is to use the method under paragraph (1); and

“(B) the plan is not operating under an amortization period extension under section 304(d) of such Act [29 U.S.C. 1084(d)] and did not operate under such an extension during such 5-year period.

“(3) Shortfall funding method defined.—For purposes of this subsection, the term ‘shortfall funding method’ means the shortfall funding method described in Treasury Regulations section 1.412(c)(1)–2 (26 CFR 1.412(c)(1)–2).

“(4) Benefit restrictions to apply.—The benefit restrictions under section 302(c)(7) of such Act [29 U.S.C. 1082(c)(7)] and section 412(c)(7) of such Code [26 U.S.C. 412(c)(7)] shall apply during any period a multiemployer plan is on the shortfall funding method pursuant to this subsection.

“(5) Use of shortfall method not to preclude other options.—Nothing in this subsection shall be construed to affect a multiemployer plan's ability to adopt the shortfall funding method with the Secretary's permission under otherwise applicable regulations or to affect a multiemployer plan's right to change funding methods, with or without the Secretary's consent, as provided in applicable rules and regulations.”

[Pub. L. 109–280, §201(b), set out above, applicable to plan years beginning after 2007, with special rule for certain amortization extensions, see section 201(d) of Pub. L. 109–280, set out as an Effective Date of 2006 Amendment note under section 1081 of this title.]

[Pub. L. 109–280, §201(b), set out above, inapplicable to plan years beginning after Dec. 31, 2014, with exception for certain funding improvement and rehabilitation plans, see section 221(c) of Pub. L. 109–280, set out as an Effective and Termination Dates of 2006 Amendment note under section 412 of Title 26, Internal Revenue Code.]

Special Rule for Certain Benefits Funded Under an Agreement Approved by the Pension Benefit Guaranty Corporation

For applicability of new section 1084 of this title, enacted by section 201(a) of Pub. L. 109–280, to a multiemployer plan that is a party to an agreement that was approved by the Pension Benefit Guaranty Corporation prior to June 30, 2005, and that increases benefits and provides for certain withdrawal liability rules, see section 206 of Pub. L. 109–280, set out as a note under section 412 of Title 26, Internal Revenue Code.

ERISA § 304 (29 U.S.C. § 1084) — Minimum funding standards for multiemployer plans · USC 1994 ed., current through 1995-01-04 · https://pensionresource.website/EAMain?content=EAMain.Law&id=usc29-1084&asof=1995-01-04 · printed Oct 16, 2026
On this page
  • (a) Determinations by Secretary in granting extension
  • (b) Amendment of plan
  • (c) Notice of filing of application for extension
Parallel provisions
Cited by (code & regs)

No regulations are linked to this section in the library.

Guidance addressing this section
PBGC
Proposed Rules
  • 87 FR 62316Proposed Oct 14, 2022 — Actuarial Assumptions for Determining an Employer's Withdrawal Liability Comments due Nov 14, 2022 (b)(6)(c)(3)
IRS / Treasury
Revenue Procedures
  • Rev. Proc. 2008-67Superseded Dec 1, 2008 — This document sets forth the procedure by which the sponsor of a multiemployer pension plan may request and obtain approval of an extension of an amortization … (a)(d)(d)(3)(d)(3)(B)
    Superseded by Rev. Proc. 2010-52
  • Rev. Proc. 2004-44 Aug 2, 2004 — Minimum funding standards; amortization; extensions. This procedure sets forth guidelines for requesting extensions of the amortization period of the minimum f… (a)
Also cited in 20 other documents
Department of Labor (EBSA)
Proposed Rules
  • 89 FR 5624Proposed Jan 29, 2024 — Automatic Portability Transaction Regulations Comments due Mar 29, 2024
  • 81 FR 47534Proposed Jul 21, 2016 — Proposed Revision of Annual Information Return/Reports Comments due Oct 4, 2016 (c)(2)(c)(7)(c)(8)
  • 75 FR 70625Proposed Nov 18, 2010 — Annual Funding Notice for Defined Benefit Plans Comments due Jan 18, 2011 (c)(2)(c)(3)(c)(8)
Final Rules
PBGC
Final Rules
  • 88 FR 76660 Nov 7, 2023 — Technical Amendments: Special Financial Assistance Withdrawal Liability Condition; SECURE 2.0 Act; and Other Updates
  • 87 FR 40968 Jul 8, 2022 — Special Financial Assistance by PBGC
  • 86 FR 36598 Jul 12, 2021 — Special Financial Assistance by PBGC
  • 86 FR 1256 Jan 8, 2021 — Methods for Computing Withdrawal Liability, Multiemployer Pension Reform Act of 2014 (b)(3)(A)(c)(8)
  • 83 FR 46642 Sep 14, 2018 — Mergers and Transfers Between Multiemployer Plans (b)(c)(3)(c)(7)
  • 80 FR 54980 Sep 11, 2015 — Reportable Events and Certain Other Notification Requirements (b)
Proposed Rules
  • 84 FR 2075Proposed Feb 6, 2019 — Methods for Computing Withdrawal Liability, Multiemployer Pension Reform Act of 2014 Comments due Apr 8, 2019 (b)(3)(A)(c)(8)
  • 81 FR 36229Proposed Jun 6, 2016 — Mergers and Transfers Between Multiemployer Plans Comments due Aug 5, 2016 (b)(c)(3)(c)(7)
  • 78 FR 20039Proposed Apr 3, 2013 — Reportable Events and Certain Other Notification Requirements Comments due Jun 3, 2013 (b)
IRS / Treasury
Revenue Procedures
  • Rev. Proc. 2014-8 Jan 2, 2014 — User fees for employee plans and exempt organizations. Current guidance for complying with the user fee program of the Service as it pertains to requests for l… (a)(b)(2)(A)
  • Rev. Proc. 2013-8Modified Jan 2, 2013 — User fees for employee plans and exempt organizations. Current guidance for complying with the user fee program of the Service as it pertains to requests for l… (a)(b)(2)(A)
    Modified by Rev. Proc. 2013-22
  • Rev. Proc. 2010-52 Dec 27, 2010 — This document describes the procedure by which the plan sponsor of a multiemployer pension plan may request and obtain approval of an extension of an amortizat… (d)(d)(3)
Notices
  • Notice 2010-83 Dec 20, 2010 — Funding relief for multiemployer defined benefit plans under PRA 2010. This notice provides guidance in the form of questions and answers for sponsors of multi… (b)(8)
  • Notice 2010-56 Aug 16, 2010 — This notice provides guidance on filing Form 5500 and Schedule MB for multiemployer defined benefit plans for plan sponsors who are considering use of the spec… (b)(8)
Proposed Rules
  • REG-151135-07Proposed Apr 21, 2008 — Proposed regulations under section 432 of the Code provide additional rules for certain multiemployer defined benefit plans that are in effect on July 16, 2006…

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Each row is a version of the text as published by the official source. Code dates are the edition/release point that first reflected the change; regulation dates are eCFR effective dates. The library checks the official sources automatically, so new versions appear here on their own; “run” opens the sync that recorded a version.

EffectiveThroughSourceAmended by
Jan 4, 1995Jan 7, 2008USC 1994 ed., current through 1995-01-04 run 49Pub. L. 101-239View
Jan 8, 2008Jan 6, 2011USC 2007 ed., current through 2008-01-08 run 105Pub. L. 109-280View · Redline (sign in)
Jan 7, 2011Jan 4, 2015USC 2013 ed., current through 2014-01-16 run 13Pub. L. 111-192View · Redline (sign in)
Jan 5, 2015Jan 11, 2018USC 2014 ed., current through 2015-01-05 run 14Pub. L. 113-295View · Redline (sign in)
Jan 12, 2018Jan 1, 2022USC 2017 ed., current through 2018-01-12 run 17Pub. L. 113-295View · Redline (sign in)
Jan 2, 2022currentUSC 2024 ed., current through 2025-01-06 run 1Pub. L. 117-2View · Redline (sign in)
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