Additional Congressional findings and declaration of policy
(a) Effects of multiemployer pension plansThe Congress finds that—
multiemployer pension plans have a substantial impact on interstate commerce and are affected with a national public interest;
multiemployer pension plans have accounted for a substantial portion of the increase in private pension plan coverage over the past three decades;
the continued well-being and security of millions of employees, retirees, and their dependents are directly affected by multiemployer pension plans; and
withdrawals of contributing employers from a multiemployer pension plan frequently result in substantially increased funding obligations for employers who continue to contribute to the plan, adversely affecting the plan, its participants and beneficiaries, and labor-management relations, and
in a declining industry, the incidence of employer withdrawals is higher and the adverse effects described in subparagraph (A) are exacerbated.
(b) Modification of multiemployer plan termination insurance provisions and replacement of programThe Congress further finds that—
it is desirable to modify the current multiemployer plan termination insurance provisions in order to increase the likelihood of protecting plan participants against benefit losses; and
it is desirable to replace the termination insurance program for multiemployer pension plans with an insolvency-based benefit protection program that will enhance the financial soundness of such plans, place primary emphasis on plan continuation, and contain program costs within reasonable limits.
(c) PolicyIt is hereby declared to be the policy of this Act—
to foster and facilitate interstate commerce,
to alleviate certain problems which tend to discourage the maintenance and growth of multiemployer pension plans,
to provide reasonable protection for the interests of participants and beneficiaries of financially distressed multiemployer pension plans, and
to provide a financially self-sufficient program for the guarantee of employee benefits under multiemployer plans.
References in Text
This Act, referred to in subsec. (c), is Pub. L. 96–364, Sept. 26, 1980, 94 Stat. 1208, known as the Multiemployer Pension Plan Amendments Act of 1980. For complete classification of this Act to the Code, see Short Title of 1980 Amendment note set out under section 1001 of this title and Tables.
Section was enacted as part of the Multiemployer Pension Plan Amendments Act of 1980, and not as part of the Employee Retirement Income Security Act of 1974 which comprises this chapter.
Study and Report Respecting Collective Bargaining for Contributions to, and Benefits From, Multiemployer Plans
Pub. L. 96–364, title IV, § 412(b), Sept. 26, 1980, 94 Stat. 1309, directed Secretary of Labor to study feasibility of requiring collective bargaining on both issues of contributions to, and benefits from, multiemployer plans, and submit a report on the study to Congress within 3 years of Sept. 26, 1980.
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