A plan administrator satisfies section
1341(b)(3)(A) of this title in the case of a missing participant only if the plan administrator—
(A)transfers the participant’s designated benefit to the corporation or purchases an irrevocable commitment from an insurer in accordance with clause (i) of section
1341(b)(3)(A) of this title, and
(B)provides the corporation such information and certifications with respect to such designated benefits or irrevocable commitments as the corporation shall specify.
(2) Treatment of transferred assets
A transfer to the corporation under this section shall be treated as a transfer of assets from a terminated plan to the corporation as trustee, and shall be held with assets of terminated plans for which the corporation is trustee under section
1342 of this title, subject to the rules set forth in that section.
(3) Payment by the corporation
After a missing participant whose designated benefit was transferred to the corporation is located—
(A)in any case in which the plan could have distributed the benefit of the missing participant in a single sum without participant or spousal consent under section
1055(g) of this title, the corporation shall pay the participant or beneficiary a single sum benefit equal to the designated benefit paid the corporation plus interest as specified by the corporation, and
(B)in any other case, the corporation shall pay a benefit based on the designated benefit and the assumptions prescribed by the corporation at the time that the corporation received the designated benefit.
The corporation shall make payments under subparagraph (B) available in the same forms and at the same times as a guaranteed benefit under section
1322 of this title would be available to be paid, except that the corporation may make a benefit available in the form of a single sum if the plan provided a single sum benefit (other than a single sum described in subsection (b)(2)(A) of this section).
For purposes of this section—
(1) Missing participant
The term “missing participant” means a participant or beneficiary under a terminating plan whom the plan administrator cannot locate after a diligent search.
(2) Designated benefit
The term “designated benefit” means the single sum benefit the participant would receive—
(A)under the plan’s assumptions, in the case of a distribution that can be made without participant or spousal consent under section
1055(g) of this title;
(B)under the assumptions of the corporation in effect on the date that the designated benefit is transferred to the corporation, in the case of a plan that does not pay any single sums other than those described in subparagraph (A); or
(C)under the assumptions of the corporation or of the plan, whichever provides the higher single sum, in the case of a plan that pays a single sum other than those described in subparagraph (A).
(c) Multiemployer plans
The corporation shall prescribe rules similar to the rules in subsection (a) for multiemployer plans covered by this subchapter that terminate under section
1341a of this title.
(d) Plans not otherwise subject to subchapter
(1) Transfer to corporation
The plan administrator of a plan described in paragraph (4) may elect to transfer a missing participant’s benefits to the corporation upon termination of the plan.
(2) Information to the corporation
To the extent provided in regulations, the plan administrator of a plan described in paragraph (4) shall, upon termination of the plan, provide the corporation information with respect to benefits of a missing participant if the plan transfers such benefits—
(A)to the corporation, or
(B)to an entity other than the corporation or a plan described in paragraph (4)(B)(ii).
(3) Payment by the corporation
If benefits of a missing participant were transferred to the corporation under paragraph (1), the corporation shall, upon location of the participant or beneficiary, pay to the participant or beneficiary the amount transferred (or the appropriate survivor benefit) either—
(A)in a single sum (plus interest), or
(B)in such other form as is specified in regulations of the corporation.
(4) Plans described
A plan is described in this paragraph if—
(A)the plan is a pension plan (within the meaning of section
1002(2) of this title)—
(i)to which the provisions of this section do not apply (without regard to this subsection),
(ii)which is not a plan described in paragraph (2), (3), (4), (6), (7), (8), (9), (10), or (11) of section
1321(b) of this title, and
(iii)which, was a plan described in section
401(a) of title
26 which includes a trust exempt from tax under section 501(a) of such title, and
(B)at the time the assets are to be distributed upon termination, the plan—
(i)has missing participants, and
(ii)has not provided for the transfer of assets to pay the benefits of all missing participants to another pension plan (within the meaning of section
1002(2) of this title).
(5) Certain provisions not to apply
Subsections (a)(1) and (a)(3) shall not apply to a plan described in paragraph (4).
(e) Regulatory authority
The corporation shall prescribe such regulations as are necessary to carry out the purposes of this section, including rules relating to what will be considered a diligent search, the amount payable to the corporation, and the amount to be paid by the corporation.
 So in original. The comma probably should not appear.
2008—Subsec. (d)(4)(A)(ii), (iii). Pub. L. 110–458added cls. (ii) and (iii) and struck out former cl. (ii) which read as follows: “which is not a plan described in paragraphs (2) through (11) of section
1321(b) of this title, and”.
2006—Subsecs. (c) to (e). Pub. L. 109–280added subsecs. (c) and (d) and redesignated former subsec. (c) as (e).
Effective Date of 2008 Amendment
Amendment by Pub. L. 110–458effective as if included in the provisions of Pub. L. 109–280to which the amendment relates, except as otherwise provided, see section 112 ofPub. L. 110–458, set out as a note under section
72 of Title
26, Internal Revenue Code.
Effective Date of 2006 Amendment
Amendment by Pub. L. 109–280applicable to distributions made after final regulations implementing subsections (c) and (d) of this section are prescribed, see section 410(c) ofPub. L. 109–280, set out as a note under section
1056 of this title.
Section effective with respect to distributions that occur in plan years commencing on or after Jan. 1, 1996, see section 776(e) ofPub. L. 103–465, set out as an Effective Date of 1994 Amendment note under section
1056 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
An empty table indicates that we see no relevant changes listed in the classification tables. If you suspect that our system may be missing something, please double-check with the Office of the Law Revision Counsel.