29 U.S.C. § 1307

Payment of premiums

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(a) Premiums payable when due; accrual; waiver or reduction

The designated payor of each plan shall pay the premiums imposed by the corporation under this subchapter with respect to that plan when they are due. Premiums under this subchapter are payable at the time, and on an estimated, advance, or other basis, as determined by the corporation. Premiums imposed by this subchapter on September 2, 1974 (applicable to that portion of any plan year during which such date occurs) are due within 30 days after such date. Premiums imposed by this subchapter on the first plan year commencing after September 2, 1974, are due within 30 days after such plan year commences. Premiums shall continue to accrue until a plan’s assets are distributed pursuant to a termination procedure, or until a trustee is appointed pursuant to section 1342 of this title, whichever is earlier. The corporation may waive or reduce premiums for a multiemployer plan for any plan year during which such plan receives financial assistance from the corporation under section 1431 of this title, except that any amount so waived or reduced shall be treated as financial assistance under such section.

(b) Late payment charge; waiver; interest on overpayment(1) If any basic benefit premium is not paid when it is due the corporation is authorized to assess a late payment charge of not more than 100 percent of the premium payment which was not timely paid. The preceding sentence shall not apply to any payment of premium made within 60 days after the date on which payment is due, if before such date, the designated payor obtains a waiver from the corporation based upon a showing of substantial hardship arising from the timely payment of the premium. The corporation is authorized to grant a waiver under this subsection upon application made by the designated payor, but the corporation may not grant a waiver if it appears that the designated payor will be unable to pay the premium within 60 days after the date on which it is due. If any premium is not paid by the last date prescribed for a payment, interest on the amount of such premium at the rate imposed under section 6601(a) of title 26 (relating to interest on underpayment, nonpayment, or extensions of time for payment of tax) shall be paid for the period from such last date to the date paid.(2) The corporation is authorized to pay, subject to regulations prescribed by the corporation, interest on the amount of any overpayment of premium refunded to a designated payor. Interest under this paragraph shall be calculated at the same rate and in the same manner as interest is calculated for underpayments under paragraph (1).(c) Civil action to recover premium penalty and interest

If any designated payor fails to pay a premium when due, the corporation is authorized to bring a civil action in any district court of the United States within the jurisdiction of which the plan assets are located, the plan is administered, or in which a defendant resides or is found for the recovery of the amount of the premium penalty, and interest, and process may be served in any other district. The district courts of the United States shall have jurisdiction over actions brought under this subsection by the corporation without regard to the amount in controversy.

(d) Basic benefits guarantee not stopped by designated payor’s failure to pay premiums when due

The corporation shall not cease to guarantee basic benefits on account of the failure of a designated payor to pay any premium when due.

(e) Designated payor(1) For purposes of this section, the term “designated payor” means—(A) the contributing sponsor or plan administrator in the case of a single-employer plan, and(B) the plan administrator in the case of a multiemployer plan.(2) If the contributing sponsor of any single-employer plan is a member of a controlled group, each member of such group shall be jointly and severally liable for any premiums required to be paid by such contributing sponsor. For purposes of the preceding sentence, the term “controlled group” means any group treated as a single employer under subsection (b), (c), (m), or (o) of section 414 of title 26.(Pub. L. 93–406, title IV, § 4007, Sept. 2, 1974, 88 Stat. 1013; Pub. L. 96–364, title IV, §§ 402(a)(3), 403(b), Sept. 26, 1980, 94 Stat. 1298, 1300; Pub. L. 100–203, title IX, § 9331(c), Dec. 22, 1987, 101 Stat. 1330–368; Pub. L. 101–239, title VII, § 7891(a)(1), Dec. 19, 1989, 103 Stat. 2445; Pub. L. 109–280, title IV, § 406(a), Aug. 17, 2006, 120 Stat. 929.)Editorial NotesAmendments

2006—Subsec. (b). Pub. L. 109–280 designated existing provisions as par. (1) and added par. (2).

1989—Subsec. (b). Pub. L. 101–239 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—Subsecs. (a) to (d). Pub. L. 100–203, § 9331(c)(1), substituted “designated payor” for “plan administrator” wherever appearing.

Subsec. (e). Pub. L. 100–203, § 9331(c)(2), added subsec. (e).

1980—Subsec. (a). Pub. L. 96–364 inserted provisions relating to waiver or reduction of premiums, and struck out provisions relating to payment of premiums under statutory requirements respecting contingent liability coverage.

Statutory Notes and Related SubsidiariesEffective Date of 2006 Amendment

Pub. L. 109–280, title IV, § 406(b), Aug. 17, 2006, 120 Stat. 929, provided that: “The amendments made by subsection (a) [amending this section] shall apply to interest accruing for periods beginning not earlier than the date of the enactment of this Act [Aug. 17, 2006].”

Effective Date of 1989 Amendment

Amendment by 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.

Effective Date of 1987 Amendment

Amendment by Pub. L. 100–203 applicable to plan years beginning after Dec. 31, 1987, see section 9331(f)(1) of Pub. L. 100–203, set out as a note under section 1305 of this title.

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.

Pension Payment Acceleration

Pub. L. 114–74, title V, § 502, Nov. 2, 2015, 129 Stat. 593, provided that: “Notwithstanding section 4007(a) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1307(a)) and section 4007.11 of title 29, Code of Federal Regulations, for plan years commencing after December 31, 2024, and before January 1, 2026, the premium due date for such plan years shall be the fifteenth day of the ninth calendar month that begins on or after the first day of the premium payment year.”

Notes of Decisions

Cited in 26 cases, 1980–2020 · leading case: William Lee v. Verizon Commc'ns, Inc., 837 F.3d 523 (5th Cir. 2016).

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William Lee v. Verizon Commc'ns, Inc., 837 F.3d 523 (5th Cir. 2016). “At a minimum, however, maintaining the PBGC protections sought by the Transferee Class requires the payment of premiums, see 29 U.S.C. § 1307 , which would run afoul of the amendment’s requirement that, after the annuity transaction, “the Plan.”

Pension Benefit Guar. Corp. v. Findlay Indus., Inc., 902 F.3d 597 (6th Cir. 2018). “29 U.S.C. §§ 1307 (e)(2), 1362(a)(1). The second is "Withdrawal Liability," which attaches when one employer in a multiemployer pension plan leaves the group.”

Pension Benefit Guar. Corp. v. Asahi Tec Corp., 979 F. Supp. 2d 46 (D.D.C. 2013). · cites it 4× “” 29 U.S.C. § 1307 (a), (e). Since the termination premiums sought in this case arise under subchapter III of Chapter 18, the starting point of the analysis is section 1307.”

Shelter Framing Corp. v. Pension Benefit Guar. Corp., 705 F.2d 1502 (9th Cir. 1983). “29 U.S.C. § 1307 (Supp. V 1981). When the Guaranty Corporation expended its own funds, it was formerly authorized by Title IV of ERISA to impose secondary liability on employers.”

In Re Interstate Cigar Co., 150 B.R. 305 (Bankr. E.D.N.Y. 1993). · cites it 2× “The contributing sponsor and members of the contributing sponsor’s controlled group are “designated payors” under ERISA § 4007(e)(1), 29 U.S.C. § 1307 (e)(1), and as such are also liable for premiums, interest, and penalties imposed by ERISA for pension plans covered by Title IV…”

Pension Benefit Guar. Corp. v. LTV Corp. (In Re Chateaugay Corp.), 87 B.R. 779 (S.D.N.Y. 1988). “In addition to the court order requirements in the termination provisions already discussed, Congress also required court approval for action by the PBGC to collect unpaid insurance premiums, 29 U.S.C. § 1307 (c); to enforce the PBGC’s lien with respect to employer liability, 29…”

Pineiro v. Pension Benefit Guar. Corp., 318 F. Supp. 2d 67 (S.D.N.Y. 2003). “The bulk of PBGC’s statutory powers concern imposing and collecting premiums, 29 U.S.C. § 1307 , determining whether a plan should be termi *85 nated, and seeking a decree of termination, id.”

Keith Fulton & Sons, Inc. v. New England Teamsters & Trucking Indus. Pension Fund, 762 F.2d 1124 (1st Cir. 1984). “29 U.S.C. § 1307 . Under ERISA as it was originally enacted, an employer who withdrew from a plan incurred a contingent liability.”

Hutchinson v. Benton Casing Serv., Inc., 619 F. Supp. 831 (S.D. Miss. 1985). · cites it 2× “In his amended complaint, in addition to those claims asserted above, the plaintiff asserted various claims under ERISA; breach of 29 U.”

Clark v. Feder Semo & Bard, P.C., 895 F. Supp. 2d 7 (D.D.C. 2012). “Clark has admitted that she was aware the firm was not paying PBGC insurance premiums, and she accordingly notes that “PBGC insurance coverage is not dependent on timely payment of insurance premiums,” PL’s F & C at 55 (citing 29 U.S.C. § 1307 (d)). But she did not actually…”

Turner v. Cf&i Steel Corp., 510 F. Supp. 537 (E.D. Pa. 1981). “§ 1303 (e)(2) (Investigatory Authority) and 29 U.S.C. § 1307 (c) (Payment of Premiums).”

Durango-Georgia Paper Co. v. H.G. Est., LLC, 739 F.3d 1263 (11th Cir. 2014). “29 U.S.C. § 1307 . Like the minimum-funding provision, if the employer is a member of a controlled group, all members of the controlled group are jointly and severally liable for any premiums.”

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