(a) In general If—
(1) a defined benefit plan (other than a multiemployer plan) to which the requirements of
section 1082 of this title apply adopts an amendment an effect of which is to increase current liability under the plan for a plan year, and
(2) the funded current liability percentage of the plan for the plan year in which the amendment takes effect is less than 60 percent, including the amount of the unfunded current liability under the plan attributable to the plan amendment,
the contributing sponsor (or any member of the controlled group of the contributing sponsor) shall provide security to the plan.
(b) Form of security The security required under subsection (a) of this section shall consist of—
(2) cash, or United States obligations which mature in 3 years or less, held in escrow by a bank or similar financial institution, or
(3) such other form of security as is satisfactory to the Secretary of the Treasury and the parties involved.
(c) Amount of security The security shall be in an amount equal to the excess of—
(1) the lesser of—
(A) the amount of additional plan assets which would be necessary to increase the funded current liability percentage under the plan to 60 percent, including the amount of the unfunded current liability under the plan attributable to the plan amendment, or
(B) the amount of the increase in current liability under the plan attributable to the plan amendment and any other plan amendments adopted after December 22, 1987, and before such plan amendment, over
(d) Release of security The security shall be released (and any amounts thereunder shall be refunded together with any interest accrued thereon) at the end of the first plan year which ends after the provision of the security and for which the funded current liability percentage under the plan is not less than 60 percent. The Secretary of the Treasury may prescribe regulations for partial releases of the security by reason of increases in the funded current liability percentage.
(e) Notice A contributing sponsor which is required to provide security under subsection (a) of this section shall notify the Pension Benefit Guaranty Corporation within 30 days after the amendment requiring such security takes effect. Such notice shall contain such information as the Corporation may require.
(f) Definitions For purposes of this section, the terms “current liability”, “funded current liability percentage”, and “unfunded current liability” shall have the meanings given such terms by
section 1082(d) of this title, except that in computing unfunded current liability there shall not be taken into account any unamortized portion of the unfunded old liability amount as of the close of the plan year.
Source credit, amendments & notes
(Pub. L. 93–406, title I, §307, as added Pub. L. 100–203, title IX, §9341(b)(2), Dec. 22, 1987, 101 Stat. 1330–370; amended Pub. L. 101–239, title VII, §7881(i)(1)(B)–(3)(A), (4)(B), Dec. 19, 1989, 103 Stat. 2442.)
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.
Prior Provisions
A prior section 307 of Pub. L. 93–406 was renumbered section 308 and is classified to section 1086 of this title.
Amendments
1989—Subsec. (a)(1). Pub. L. 101–239, §7881(i)(4)(B), inserted “to which the requirements of section 1082 of this title apply” after “multiemployer plan)”.
Subsec. (c)(1)(B). Pub. L. 101–239, §7881(i)(1)(B), which directed amendment of subsec. (c)(1)(B) by inserting “and any other plan amendments adopted after December 22, 1987, and before such plan amendment” without specifying where such language was to be inserted, was executed by making the insertion after “to the plan amendment”, as the probable intent of Congress.
Subsec. (d). Pub. L. 101–239, §7881(i)(2), inserted “of the Treasury” after “Secretary”.
Subsecs. (e), (f). Pub. L. 101–239, §7881(i)(3)(A), added subsec. (e) and redesignated former subsec. (e) as (f).
Effective Date of Repeal
Repeal applicable to plan years beginning after 2007, see section 101(d) of Pub. L. 109–280, set out as an Effective Date note under section 1082 of this title.
Effective Date of 1989 Amendment
Amendment by Pub. L. 101–239 effective, except as otherwise provided, as if included in the provision of the Pension Protection Act, Pub. L. 100–203, §§9302–9346, to which such amendment relates, see section 7882 of Pub. L. 101–239, set out as a note under section 401 of Title 26, Internal Revenue Code.
Effective Date
This section applicable to plan amendments adopted after Dec. 22, 1987, except that, in the case of a plan maintained pursuant to one or more collective bargaining agreements between employee representatives and one or more employers ratified before Dec. 22, 1987, this section not applicable to plan amendments adopted pursuant to collective bargaining agreements ratified before Dec. 22, 1987, see section 9341(c) of Pub. L. 100–203, set out as an Effective Date of 1987 Amendment note under section 401 of Title 26, Internal Revenue Code.
Applicability of Amendments by Subtitles A and B of Title I of Pub. L. 109–280
For special rules on applicability of amendments by subtitles A (§§101–107) and B (§§111–116) of title I of Pub. L. 109–280 to certain eligible cooperative plans, PBGC settlement plans, and eligible government contractor plans, see sections 104, 105, and 106 of Pub. L. 109–280, set out as notes under section 401 of Title 26, Internal Revenue Code.
ERISA § 307 (29 U.S.C. § 1085b) — §§1085b, 1086. Repealed. Pub. L. 109–280, title I, §101(a), Aug. 17, 2006, 120 Stat. 784 · USC 1994 ed., current through 1995-01-04 · https://pensionresource.website/EAMain?content=EAMain.Law&id=usc29-1085b&asof=1995-01-04 · printed Oct 16, 2026