(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) ofsection
414 of title 26.
2006—Subsec. (b). Pub. L. 109–280designated existing provisions as par. (1) and added par. (2).
1989—Subsec. (b). Pub. L. 101–239substituted “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.
1980—Subsec. (a). Pub. L. 96–364inserted provisions relating to waiver or reduction of premiums, and struck out provisions relating to payment of premiums under statutory requirements respecting contingent liability coverage.
Effective 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. 101–239effective, 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) ofPub. L. 101–239, set out as a note under section
1002 of this title.
Effective Date of 1987 Amendment
Amendment by Pub. L. 100–203applicable to plan years beginning after Dec. 31, 1987, see section 9331(f)(1) ofPub. L. 100–203, set out as a note under section
1305 of this title.
Effective Date of 1980 Amendment
Amendment by Pub. L. 96–364effective Sept. 26, 1980, except as specifically provided, see section
1461(e) of this title.
The table below lists the classification updates, since Jan. 3, 2012, for this section. Updates to a broader range of sections may be found at the update page for containing chapter, title, etc.
The most recent Classification Table update that we have noticed was Tuesday, August 13, 2013
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