(b) Credits to funds; availability of funds; investment of moneys in excess of current needs
(1)
Each fund established under this section shall be credited with the appropriate portion of—
(A) premiums, penalties, interest, and charges collected under this subchapter,
(B) the value of the assets of a plan administered under
section 1342 of this title by a trustee to the extent that they exceed the liabilities of such plan,
(C) the amount of any employer liability payments under subtitle D, to the extent that such payments exceed liabilities of the plan (taking into account all other plan assets),
(D) earnings on investments of the fund or on assets credited to the fund under this subsection,
(E) attorney’s fees awarded to the corporation, and
(F) receipts from any other operations under this subchapter.
(2)
Subject to the provisions of subsection (a), each fund shall be available—
(A) for making such payments as the corporation determines are necessary to pay benefits guaranteed under section 1322 or 1322a of this title or benefits payable under
section 1350 of this title,
(B) to purchase assets from a plan being terminated by the corporation when the corporation determines such purchase will best protect the interests of the corporation, participants in the plan being terminated, and other insured plans,
(C) to pay the operational and administrative expenses of the corporation, including reimbursement of the expenses incurred by the Department of the Treasury in maintaining the funds, and the Comptroller General in auditing the corporation, and
(D) to pay to participants and beneficiaries the estimated amount of benefits which are guaranteed by the corporation under this subchapter and the estimated amount of other benefits to which plan assets are allocated under
section 1344 of this title, under single-employer plans which are unable to pay benefits when due or which are abandoned.
(3)
(A) Whenever the corporation determines that the moneys of any fund are in excess of current needs, it may request the investment of such amounts as it determines advisable by the Secretary of the Treasury in obligations issued or guaranteed by the United States.
(B)
Notwithstanding subparagraph (A)—
(i)
the amounts of premiums received under
section 1306 of this title with respect to the fund to be used for basic benefits under
section 1322a of this title in a fiscal year in the period beginning with fiscal year 2016 and ending with fiscal year 2020 shall be placed in a noninterest-bearing account within such fund in the following amounts:
(I) for fiscal year 2016, $108,000,000;
(II) for fiscal year 2017, $111,000,000;
(III) for fiscal year 2018, $113,000,000;
(IV) for fiscal year 2019, $149,000,000; and
(V) for fiscal year 2020, $296,000,000;
(ii) premiums received in fiscal years specified in subclauses (I) through (V) of clause (i) shall be allocated in order first to the noninterest-bearing account in the amount specified and second to any other accounts within such fund; and
(iii) financial assistance, as provided under
section 1431 of this title, shall be withdrawn proportionately from the noninterest-bearing and other accounts within the fund.
Amendments
2014—Subsec. (b)(3). Pub. L. 113–235 designated existing provisions as subpar. (A) and added subpar. (B).
2012—Subsec. (b)(1). Pub. L. 112–141, § 40234(b)(1)(A)(i), redesignated subpars. (B) to (G) as (A) to (F), respectively, and struck out former subpar. (A) which read as follows: “funds borrowed under subsection (c),”.
Subsec. (b)(2)(C) to (E). Pub. L. 112–141, § 40234(b)(1)(A)(ii), redesignated subpars. (D) and (E) as (C) and (D), respectively, and struck out former subpar. (C) which read as follows: “to repay to the Secretary of the Treasury such sums as may be borrowed (together with interest thereon) under subsection (c),”.
Subsec. (b)(3). Pub. L. 112–141, § 40234(b)(1)(A)(iii), substituted period at end for “but, until all borrowings under subsection (c) have been repaid, the obligations in which such excess moneys are invested may not yield a rate of return in excess of the rate of interest payable on such borrowings.”
Subsec. (c). Pub. L. 112–141, § 40234(a), struck out subsec. (c) which related to authority to issue notes or other obligations and purchase by Secretary of the Treasury as public debt transaction.
Subsec. (g)(2), (3). Pub. L. 112–141, § 40234(b)(1)(B), redesignated par. (3) as (2) and struck out former par. (2) which read as follows: “None of the funds borrowed under subsection (c) may be used to make loans to (or on behalf of) any fund other than a fund described in the second sentence of subsection (a).”
1994—Subsec. (b)(2)(A). Pub. L. 103–465, which directed the amendment of subpar. (A) by inserting “or benefits payable under section 1350 of this title” after “section 1322a of this title”, was executed by making the insertion after “section 1322 or 1322a of this title” to reflect the probable intent of Congress.
1987—Subsec. (f). Pub. L. 100–203, § 9331(d), added subsec. (f). Former subsec. (f) redesignated (g).
Subsec. (g). Pub. L. 100–203, § 9331(d), redesignated former subsec. (f) as (g). Former subsec. (g) redesignated (h).
Pub. L. 100–203, § 9312(c)(4), struck out “or fiduciaries with respect to trusts to which the requirements of section 1349 of this title apply” after “money managers of the corporation”.
Subsec. (h). Pub. L. 100–203, § 9331(d), redesignated former subsec. (g) as (h).
1986—Subsec. (b)(1)(F), (G). Pub. L. 99–272, § 11016(a)(2), added subpar. (F) and redesignated former subpar. (F) as (G).
Subsec. (b)(2)(E). Pub. L. 99–272, § 11016(a)(1), added subpar. (E).
Subsec. (g). Pub. L. 99–272, § 11016(c)(7), added subsec. (g).
1980—Subsec. (a). Pub. L. 96–364, § 403(a)(1), substituted provisions respecting benefits guaranteed under sections 1322 and 1322a of this title, for provisions respecting benefits guaranteed under sections 1322 and 1323 of this title.
Subsec. (b)(2). Pub. L. 96–364, § 403(a)(2), (3), in subpar. (A) inserted reference to section 1322a of this title, struck out subpar. (B) relating to payments under section 1323 of this title, and redesignated former subpars. (C) to (E) as (B) to (D), respectively.
Subsecs. (d) to (f). Pub. L. 96–364, § 403(a)(4), added subsecs. (d) to (f).
Effective Date of 1994 Amendment
Amendment by Pub. L. 103–465 effective with respect to distributions that occur in plan years commencing on or after Jan. 1, 1996, see section 776(e) of Pub. L. 103–465, set out as a note under section 1056 of this title.
Effective Date of 1987 Amendment
Amendment by section 9312(c)(4) of 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.
Pub. L. 100–203, title IX, § 9331(f), Dec. 22, 1987, 101 Stat. 1330–369, provided that:
“(1) In general.— The amendments made by this section [amending this section and sections 1306 and 1307 of this title] shall apply to plan years beginning after December 31, 1987.
“(2) Separate accounting.— The amendments made by subsection (d) [amending this section] shall apply to fiscal years beginning after September 30, 1988.”
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.