29 U.S.C. § 1364

Liability on termination of single-employer plans under multiple controlled groups

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(a) This section applies to all contributing sponsors of a single-employer plan which has two or more contributing sponsors at least two of whom are not under common control at the time such plan is terminated under section 1341(c) or 1342 of this title, or who, at any time within the 5 plan years preceding the date of termination, made contributions under the plan.(b) The corporation shall determine the liability with respect to each contributing sponsor and each member of its controlled group in a manner consistent with section 1362 of this title, except that the amount of liability determined under section 1362(b)(1) of this title with respect to the entire plan shall be allocated to each controlled group by multiplying such amount by a fraction—(1) the numerator of which is the amount required to be contributed to the plan for the last 5 plan years ending prior to the termination date by persons in such controlled group as contributing sponsors, and(2) the denominator of which is the total amount required to be contributed to the plan for such last 5 plan years by all persons as contributing sponsors,and section 1368(a) of this title shall be applied separately with respect to each controlled group. The corporation may also determine the liability of each such contributing sponsor and member of its controlled group on any other equitable basis prescribed by the corporation in regulations.(Pub. L. 93–406, title IV, § 4064, Sept. 2, 1974, 88 Stat. 1031; Pub. L. 96–364, title IV, § 403(i), Sept. 26, 1980, 94 Stat. 1301; Pub. L. 99–272, title XI, § 11016(a)(5)(B), Apr. 7, 1986, 100 Stat. 270; Pub. L. 100–203, title IX, § 9312(b)(2)(C)(i), Dec. 22, 1987, 101 Stat. 1330–361; Pub. L. 101–239, title VII, § 7881(f)(3)(A), Dec. 19, 1989, 103 Stat. 2440.)Editorial NotesAmendments

1989—Subsec. (b). Pub. L. 101–239 substituted “section 1368(a)” for “clauses (i)(II) and (ii) of section 1362(b)(1)(A)”.

1987—Subsec. (b). Pub. L. 100–203 amended first sentence generally. Prior to amendment, first sentence read as follows: “The corporation shall determine the liability with respect to each contributing sponsor and each member of its controlled group in a manner consistent with section 1362 of this title, except that—

“(1) the amount of the liability determined under section 1362(b)(1) of this title with respect to the entire plan—

“(A) shall be determined without regard to clauses (i)(II) and (ii) of section 1362(b)(1)(A) of this title, and

“(B) shall be allocated to each controlled group by multiplying such amount by a fraction—

“(i) the numerator of which is the amount required to be contributed to the plan for the last 5 plan years ending prior to the termination date by persons in such controlled group as contributing sponsors, and

“(ii) the denominator of which is the total amount required to be contributed to the plan for such last 5 plan years by all persons as contributing sponsors,

and clauses (i)(II) and (ii) of section 1362(b)(1)(A) of this title shall be applied separately with respect to each such controlled group, and

“(2) the amount of the liability determined under section 1362(c)(1) of this title with respect to the entire plan shall be allocated to each controlled group by multiplying such amount by the fraction described in paragraph (1)(B) in connection with such controlled group.”

1986—Pub. L. 99–272, § 11016(a)(5)(B)(iii), substituted “on termination of single-employer plans under multiple controlled groups” for “of employers on termination of plan maintained by more than one employer” in section catchline.

Subsec. (a). Pub. L. 99–272, § 11016(a)(5)(B)(i), substituted “all contributing sponsors of a single-employer plan which has two or more contributing sponsors at least two of whom are not under common control” for “all employers who maintain a plan under which more than one employer makes contributions (other than a multiemployer plan)” and inserted “under section 1341(c) or 1342 of this title” after “terminated”.

Subsec. (b). Pub. L. 99–272, § 11016(a)(5)(B)(ii), amended subsec. (b) generally, substituting reference to each contributing sponsor and each member of its controlled group for reference to each employer of a plan maintained by more than one employer and inserted provisions that liability determined under section 1362(b)(1) of this title with respect to the entire plan be determined without regard to cls. (i)(II) and (ii) of section 1362(b)(1)(A) of this title and that the amount of liability determined under section 1362(c)(1) of this title with respect to the entire plan be allocated to each controlled group by multiplying such amount by the fraction described in par. (1)(B) in connection with such controlled group.

1980—Subsec. (a). Pub. L. 96–364 inserted provisions excepting a multiemployer plan.

Statutory Notes and Related SubsidiariesEffective 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 of 1987 Amendment

Amendment by Pub. L. 100–203 applicable with respect to plan terminations under section 1341 of this title with respect to which notices of intent to terminate are provided under section 1341(a)(2) of this title after Dec. 17, 1987, and plan terminations with respect to which proceedings are instituted by the Pension Benefit Guaranty Corporation under section 1342 of this title after that date, see section 9312(d)(1) of Pub. L. 100–203, as amended, set out as a note under section 1301 of this title.

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.

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.

Notes of Decisions

Cited in 20 cases (2 in the last 5 years), 1979–2025 · leading case: Concrete Pipe & Prods. of Cal., Inc. v. Constr. Laborers Pension Trust for S. Cal., 508 U.S. 602 (1993).

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Concrete Pipe & Prods. of Cal., Inc. v. Constr. Laborers Pension Trust for S. Cal., 508 U.S. 602 (1993). · cites it 4× “See 29 U. S. C. § 1364 (1976 ed.); see also 29 U.”

Connolly v. Pension Benefit Guar. Corp., 475 U.S. 211 (1986). · cites it 2× “29 U. S. C. § 1364 . It was also plain enough that the purpose of imposing withdrawal liability was to ensure that employees would receive the benefits promised them.”

Dorn's Transp., Inc. v. I.A.M. Nat'l Pension Fund, 578 F. Supp. 1222 (D.D.C. 1984). · cites it 3× “29 U.S.C. § 1364 . The terms of ERISA thereby discouraged new employers from joining established plans, and actually encouraged plan termination where the shared liability upon termination would be less costly than continued payments.”

Pension Benefit Guar. Corp. v. Ouimet Corp., 470 F. Supp. 945 (D. Mass. 1979). · cites it 2× “The conferees again emphasized the controlled group concept when they discussed the termination liability provisions of 29 U.S.C. § 1364 . Under section 1364, termination liability was extended to multi-employer plans, with the controlled group treated as a single employer for…”

United Mine Workers of Am. v. Energy West Mining Co., 39 F.4th 730 (D.C. Cir. 2022). “29 U.S.C. § 1364 (1976); Milwaukee Brewery Workers’ Pension Plan, 513 U.”

United Mine Workers of Am. 1974 Plan & Trust v. Lexington Coal Co. (In Re HNRC Dissolution Co.), 396 B.R. 461 (6th Cir. BAP 2008). “Unfortunately, under this system, “withdrawals of contributing employers from a multiem-ployer pension plan frequently resulted] in substantially increased funding obligations for employers who continue[d] to contribute to the plan, adversely affecting the plan, its participants…”

Pac. Iron & Metal Co. v. W. Conf. of Teamsters Pension Trust Fund, 553 F. Supp. 523 (W.D. Wash. 1982). · cites it 2× “29 U.S.C. § 1364 . Moreover, pre-MPPAA law placed a ceiling on an employer’s withdrawal liability at 30% of the employer’s net worth.”

Helen Debreceni, Fund Manager of the New England Teamsters & Trucking Indus. Pension Fund v. The Outlet Co., 784 F.2d 13 (1st Cir. 1986). “Congress enacted the MPPAA because it was concerned that many employers were withdrawing from multiemployer plans, gambling that the plans would survive for five years and they would not be liable for unfunded benefits under ERISA.”

Cent. States, Se. & Sw. Areas Pension Fund v. Admiral Merchants Motor Freight, Inc., 511 F. Supp. 38 (D. Minnesota 1980). “See 29 U.S.C. § 1364 . However, as 29 U.S.C. § 1103 makes clear, defendants have no right to seek damages in this instance.”

Cpt Holdings, Inc. v. Indus. & Allied Employees Union Pension Plan, Local 73, 162 F.3d 405 (6th Cir. 1999). “” An employer’s withdrawal liability is its ‘proportionate share of the plan’s unfunded vested benefits’, that is, the difference between the present value of vested benefits (benefits that are currently being paid to retirees and that will be paid in the future to covered…”

Dairy v. Dairy Employees Union Local No. 17 Christian Labor Ass'n of the United States of Am. Pension Trust, 153 F. Supp. 3d 1217 (E.D. Cal. 2015). “(termination insurance); 29 U.S.C. § 1364 (withdrawal liability). Unfortunately, this scheme encouraged an employer to withdraw from a financially shaky plan and risk paying its share if the plan later became insolvent, rather than to remain and (if others withdrew) risk having…”

Washington Star Co. v. Int'l Typographical Union Negotiated Pension Plan, 582 F. Supp. 301 (D.D.C. 1983). “29 U.S.C. § 1364 (a). Although liability was contingent, it is relevant to note that the pre-MPPAA formula was based on a proportional share of unfunded vested benefits of the entire plan, not just the employees of the withdrawing employer.”

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