ERISA § 4281 (29 U.S.C. § 1441)

By using this site, users agree to the Terms of Use on the Welcome page.

Benefits under certain terminated plans

USC 2014 ed., current through 2015-01-05 · superseded Jan 6, 2017 · last amended by Pub. L. 96-364

PrintCompare dates Ask AI about this section Official source ↗

(a) Amendment of plan by plan sponsor to reduce benefits, and suspension of benefit payments Notwithstanding sections 1053 and 1054 of this title, the plan sponsor of a terminated multiemployer plan to which section 1341a(d) of this title applies shall amend the plan to reduce benefits, and shall suspend benefit payments, as required by this section.

(b) Determinations respecting value of nonforfeitable benefits under terminated plan and value of assets of plan

(1) The value of nonforfeitable benefits under a terminated plan referred to in subsection (a) of this section, and the value of the plan's assets, shall be determined in writing, in accordance with regulations prescribed by the corporation, as of the end of the plan year during which section 1341a(d) of this title becomes applicable to the plan, and each plan year thereafter.

(2) For purposes of this section, plan assets include outstanding claims for withdrawal liability (within the meaning of section 1301(a)(12) of this title).

(1) If, according to the determination made under subsection (b) of this section, the value of nonforfeitable benefits exceeds the value of the plan's assets, the plan sponsor shall amend the plan to reduce benefits under the plan to the extent necessary to ensure that the plan's assets are sufficient, as determined and certified in accordance with regulations prescribed by the corporation, to discharge when due all of the plan's obligations with respect to nonforfeitable benefits.

(2) Any plan amendment required by this subsection shall, in accordance with regulations prescribed by the Secretary of the Treasury—

(A) reduce benefits only to the extent necessary to comply with paragraph (1);

(B) reduce accrued benefits only to the extent that those benefits are not eligible for the corporation's guarantee under section 1322a(b) of this title;

(C) comply with the rules for and limitations on benefit reductions under a plan in reorganization, as prescribed in section 1425 ¹ of this title, except to the extent that the corporation prescribes other rules and limitations in regulations under this section; and

(D) take effect no later than 6 months after the end of the plan year for which it is determined that the value of nonforfeitable benefits exceeds the value of the plan's assets.

(d) Suspension of benefit payments; determinative factors; powers and duties of plan sponsor; retroactive benefit payments

(1) In any case in which benefit payments under a plan which is insolvent under paragraph (2)(A) exceed the resource benefit level, any such payments which are not basic benefits shall be suspended, in accordance with this subsection, to the extent necessary to reduce the sum of such payments and such basic benefits to the greater of the resource benefit level or the level of basic benefits, unless an alternative procedure is prescribed by the corporation in connection with a supplemental guarantee program established under section 1322a(g)(2) of this title.

(2) For purposes of this subsection, for a plan year—

(A) a plan is insolvent if—

(i) the plan has been amended to reduce benefits to the extent permitted by subsection (c) of this section, and

(ii) the plan's available resources are not sufficient to pay benefits under the plan when due for the plan year; and

(B) "resource benefit level" and "available resources" have the meanings set forth in paragraphs (2) and (3), respectively, of section 1426(b) of this title.

(3) The plan sponsor of a plan which is insolvent (within the meaning of paragraph (2)(A)) shall have the powers and duties of the plan sponsor of a plan in reorganization which is insolvent (within the meaning of section 1426(b)(1) of this title), except that regulations governing the plan sponsor's exercise of those powers and duties under this section shall be prescribed by the corporation, and the corporation shall prescribe by regulation notice requirements which assure that plan participants and beneficiaries receive adequate notice of benefit suspensions.

(4) A plan is not required to make retroactive benefit payments with respect to that portion of a benefit which was suspended under this subsection, except that the provisions of section 1426(c)(4) and (5) of this title shall apply in the case of plans which are insolvent under paragraph (2)(A), in connection with the plan year during which such section 1341a(d) of this title first became applicable to the plan and every year thereafter, in the same manner and to the same extent as such provisions apply to insolvent plans in reorganization under section 1426 of this title, in connection with insolvency years under such section 1426 of this title.

Source credit, amendments & notes

(Pub. L. 93–406, title IV, §4281, as added Pub. L. 96–364, title I, §104(2), Sept. 26, 1980, 94 Stat. 1261.)

References in Text

Section 1425 of this title, referred to in subsec. (c)(2)(C), was repealed by Pub. L. 113–235, div. O, title I, §108(a)(1), Dec. 16, 2014, 128 Stat. 2786.

Effective Date

Part effective Sept. 26, 1980, except as specifically provided, see section 1461(e) of this title.

ERISA § 4281 (29 U.S.C. § 1441) — Benefits under certain terminated plans · USC 2014 ed., current through 2015-01-05 · https://pensionresource.website/EAMain?content=EAMain.Law&id=usc29-1441&asof=2015-01-05 · printed Oct 16, 2026

Cited by (code & regs)

29 C.F.R. § 4262.12 Payment of special financial assistance.
I.R.C. § 418E Insolvent plans
29 C.F.R. § 4262.4 Amount of special financial assistance.
ERISA § 4022A (29 U.S.C. § 1322a) Multiemployer plan benefits guaranteed
29 C.F.R. § 4281.47 Application for financial assistance.
29 C.F.R. § 4231.2 Definitions.
29 C.F.R. § 4231.18 Jurisdiction over financial assistance merger.
29 C.F.R. § 4262.8 Actuarial and financial information.
29 C.F.R. § 4231.12 Request for facilitated merger.
29 C.F.R. § 4281.2 Definitions.
ERISA § 203 (29 U.S.C. § 1053) Minimum vesting standards
29 C.F.R. § 4041A.2 Definitions.
29 C.F.R. § 4245.8 Financial assistance.
29 C.F.R. § 4233.2 Definitions.
29 C.F.R. § 4281.1 Purpose and scope.

PBGC Regulations

29 C.F.R. § 4281.1 Purpose and scope.
29 C.F.R. § 4281.2 Definitions.
29 C.F.R. § 4281.3 Filing and issuance rules.
29 C.F.R. § 4281.4 Collection of information. Removed
29 C.F.R. § 4281.11 Valuation dates.
29 C.F.R. § 4281.12 Benefits to be valued.
29 C.F.R. § 4281.13 Benefit valuation methods—in general.
29 C.F.R. § 4281.14-4281.15 [Reserved]
29 C.F.R. § 4281.16 Benefit valuation methods—plans closing out.
29 C.F.R. § 4281.17 Asset valuation methods—in general.
29 C.F.R. § 4281.18 Outstanding claims for withdrawal liability.
29 C.F.R. § 4281.31 Plan amendment.
29 C.F.R. § 4281.32 Notices of benefit reductions.
29 C.F.R. § 4281.33 Restoration of benefits.
29 C.F.R. § 4281.41 Benefit suspensions.
29 C.F.R. § 4281.42 Retroactive payments.
29 C.F.R. § 4281.43 Notice of insolvency.
29 C.F.R. § 4281.44 Contents of notice of insolvency.
29 C.F.R. § 4281.45 Notice of insolvency benefit level.
29 C.F.R. § 4281.46 Contents of notice of insolvency benefit level.
29 C.F.R. § 4281.47 Application for financial assistance.

Guidance addressing this section

PBGC

Final Rules

86 FR 36598 Jul 12, 2021 — Special Financial Assistance by PBGC (a)
84 FR 18715 May 2, 2019 — Terminated and Insolvent Multiemployer Plans and Duties of Plan Sponsors (a)(b)(b)(1)(c)(d)
80 FR 55742 Sep 17, 2015 — Multiemployer Plans; Electronic Filing Requirements (c)(e)

Proposed Rules

83 FR 32815Proposed Jul 16, 2018 — Terminated and Insolvent Multiemployer Plans and Duties of Plan Sponsors Comments due Sep 14, 2018 (a)(b)(b)(1)(c)(d)
81 FR 36229Proposed Jun 6, 2016 — Mergers and Transfers Between Multiemployer Plans Comments due Aug 5, 2016
80 FR 18172Proposed Apr 3, 2015 — Multiemployer Plans; Electronic Filing Requirements Comments due Jun 2, 2015 (c)(e)

Opinion Letters

PBGC Op. Ltr. 2002-1 Dec 10, 2002 — Termination, Restoration

Also cited in 21 other documents

PBGC

Proposed Rules

91 FR 45739Proposed Jul 21, 2026 — Penalties for Failure To Provide Certain Notices or Other Material Information Comments due Sep 21, 2026
90 FR 6894Proposed Jan 21, 2025 — Miscellaneous Corrections, Clarifications, and Improvements Comments due Mar 24, 2025
88 FR 56563Proposed Aug 18, 2023 — Valuation Assumptions and Methods Comments due Oct 17, 2023
87 FR 62316Proposed Oct 14, 2022 — Actuarial Assumptions for Determining an Employer's Withdrawal Liability Comments due Nov 14, 2022
79 FR 4642Proposed Jan 29, 2014 — Multiemployer Plans; Valuation and Notice Requirements Comments due Mar 31, 2014 (a)(a)(1)

Final Rules

90 FR 39320 Aug 15, 2025 — Miscellaneous Corrections, Clarifications, and Improvements (e)
89 FR 48291 Jun 6, 2024 — Valuation Assumptions and Methods
88 FR 4900 Jan 26, 2023 — Special Financial Assistance by PBGC-Withdrawal Liability Condition Exception
87 FR 40968 Jul 8, 2022 — Special Financial Assistance by PBGC (a)
83 FR 46642 Sep 14, 2018 — Mergers and Transfers Between Multiemployer Plans
80 FR 79687 Dec 23, 2015 — Partitions of Eligible Multiemployer Plans
80 FR 57717 Sep 25, 2015 — Multiemployer Plans; Electronic Filing Requirements; Correction
80 FR 35220 Jun 19, 2015 — Partitions of Eligible Multiemployer Plans
79 FR 30459 May 28, 2014 — Multiemployer Plans; Valuation and Notice Requirements (a)(a)(1)

Opinion Letters

PBGC Op. Ltr. 2001-2 Mar 16, 2001 — Multiemployer plan status

Department of Labor (EBSA)

Final Rules

80 FR 5626 Feb 2, 2015 — Annual Funding Notice for Defined Benefit Plans

IRS / Treasury

Treasury Decisions

T.D. 9601 Mar 4, 2013 — Final regulations under section 411(d)(6) of the Code provide guidance under the anti-cutback rules, which generally prohibit plan amendments eliminating or re…
T.D. 9219 Sep 19, 2005 — Final regulations under section 411(d)(6) of the Code provide guidance relating to the anti-cutback rules and the notification requirements under section 4980F.

Proposed Rules

REG-110136-07Proposed Apr 28, 2008 — Proposed regulations under section 4980F of the Code provide guidance relating to a plan amendment that is permitted to be effective before the plan amendment’… (c)
REG-156518-04Proposed Sep 19, 2005 — Proposed regulations under section 411(d)(6) of the Code provide guidance relating to the anti-cutback rules. A public hearing is scheduled for December 6, 200…
REG-128309-03Proposed Apr 19, 2004 — Proposed regulations under section 411(d)(6) of the Code provide guidance on the conditions under which a plan amendment may eliminate or reduce an early retir…

No court rulings in the library cite this provision yet.

No private letter rulings in the library cite this provision yet.

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.

Effective	Through	Source	Amended by
Jan 4, 1995	Jan 4, 2015	USC 2013 ed., current through 2014-01-16 run 13	Pub. L. 96-364	View
Jan 5, 2015	Jan 5, 2017	USC 2014 ed., current through 2015-01-05 run 14	Pub. L. 96-364	View · Redline (sign in)
Jan 6, 2017	current	USC 2024 ed., current through 2025-01-06 run 1	Pub. L. 96-364	View · Redline (sign in)

Provision-level history (blame)