In the case of a plan which terminates under paragraph (1) or (3) of subsection (a), the rate of an employer’s contributions under the plan for each plan year beginning on or after the plan termination date shall equal or exceed the highest rate of employer contributions at which the employer had an obligation to contribute under the plan in the 5 preceding plan years ending on or before the plan termination date, unless the corporation approves a reduction in the rate based on a finding that the plan is or soon will be fully funded.
29 U.S. Code § 1341a. Termination of multiemployer plans
(a) Determinative factorsTermination of a multiemployer plan under this section occurs as a result of—
(b) Date of termination
(1) The date on which a plan terminates under paragraph (1) or (3) of subsection (a) is the later of—
(c) Duties of plan sponsor of amended planExcept as provided in subsection (f)(1), the plan sponsor of a plan which terminates under paragraph (2) of subsection (a) shall—
limit the payment of benefits to benefits which are nonforfeitable under the plan as of the date of the termination, and
(d) Duties of plan sponsor of nonoperative plan
(e) Amount of contribution of employer under amended plan for each plan year subsequent to plan termination date
(f) Payment of benefits; reporting requirements for terminated plans and rules and standards for administration of such plans
The plan sponsor of a terminated plan may authorize the payment other than in the form of an annuity of a participant’s entire nonforfeitable benefit attributable to employer contributions, other than a death benefit, if the value of the entire nonforfeitable benefit does not exceed $1,750. The corporation may authorize the payment of benefits under the terms of a terminated plan other than nonforfeitable benefits, or the payment other than in the form of an annuity of benefits having a value greater than $1,750, if the corporation determines that such payment is not adverse to the interest of the plan’s participants and beneficiaries generally and does not unreasonably increase the corporation’s risk of loss with respect to the plan.