{"identifier":"/us/usc/t29/s1389","title":29,"num":"\u00a7\u202f1389.","heading":"De minimis rule","text":"\u00a7\u202f1389.\nDe minimis rule\n(a)\nReduction of unfunded vested benefits allocable to employer withdrawn from plan\nExcept in the case of a plan amended under subsection (b), the amount of the unfunded vested benefits allocable under\n(1) \u00be of 1 percent of the plan\u2019s unfunded vested obligations (determined as of the end of the plan year ending before the date of withdrawal), or\n(2) $50,000,\nreduced by the amount, if any, by which the unfunded vested benefits allowable to the employer, determined without regard to this subsection, exceeds $100,000.\n(b)\nAmendment of plan for reduction of amount of unfunded vested benefits allocable to employer withdrawn from plan\nA plan may be amended to provide for the reduction of the amount determined under\n(1) the amount determined under subsection (a), or\n(2) the lesser of\u2014\n(A) the amount determined under subsection (a)(1), or\n(B) $100,000,\nreduced by the amount, if any, by which the amount determined under\nsection 1391 of this title\n(c)\nNonapplicability\nThis section does not apply\u2014\n(1) to an employer who withdraws in a plan year in which substantially all employers withdraw from the plan, or\n(2) in any case in which substantially all employers withdraw from the plan during a period of one or more plan years pursuant to an agreement or arrangement to withdraw, to an employer who withdraws pursuant to such agreement or arrangement.\n(d)\nPresumption of employer withdrawal from plan pursuant to agreement or arrangement applicable in action or proceeding to determine or collect withdrawal liability\nIn any action or proceeding to determine or collect withdrawal liability, if substantially all employers have withdrawn from a plan within a period of 3 plan years, an employer who has withdrawn from such plan during such period shall be presumed to have withdrawn from the plan pursuant to an agreement or arrangement, unless the employer proves otherwise by a preponderance of the evidence.","url":"https://projectusc.org/usc/t29/s1389.html","content":[{"t":"sec","id":"/us/usc/t29/s1389","children":[{"t":"num","text":"\u00a7\u202f1389."},{"t":"heading","text":"De minimis rule"},{"t":"subsec","id":"/us/usc/t29/s1389/a","children":[{"t":"num","text":"(a)"},{"t":"heading","text":"Reduction of unfunded vested benefits allocable to employer withdrawn from plan"},{"t":"chapeau","text":"Except in the case of a plan amended under subsection (b), the amount of the unfunded vested benefits allocable under ","children":[{"t":"ref","text":"section 1391 of this title","href":"/us/usc/t29/s1391","tail":" to an employer who withdraws from a plan shall be reduced by the smaller of\u2014"}]},{"t":"para","id":"/us/usc/t29/s1389/a/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" \u00be of 1 percent of the plan\u2019s unfunded vested obligations (determined as of the end of the plan year ending before the date of withdrawal), or","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t29/s1389/a/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" $50,000,","tail":"\n"}],"tail":"\n\n"},{"t":"continuation","text":"reduced by the amount, if any, by which the unfunded vested benefits allowable to the employer, determined without regard to this subsection, exceeds $100,000.","tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t29/s1389/b","children":[{"t":"num","text":"(b)"},{"t":"heading","text":"Amendment of plan for reduction of amount of unfunded vested benefits allocable to employer withdrawn from plan"},{"t":"chapeau","text":"A plan may be amended to provide for the reduction of the amount determined under ","children":[{"t":"ref","text":"section 1391 of this title","href":"/us/usc/t29/s1391","tail":" by not more than the greater of\u2014"}]},{"t":"para","id":"/us/usc/t29/s1389/b/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" the amount determined under subsection (a), or","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t29/s1389/b/2","children":[{"t":"num","text":"(2)"},{"t":"chapeau","text":" the lesser of\u2014"},{"t":"subpara","id":"/us/usc/t29/s1389/b/2/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" the amount determined under subsection (a)(1), or","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t29/s1389/b/2/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" $100,000,","tail":"\n"}],"tail":"\n"}],"tail":"\n\n"},{"t":"continuation","text":"reduced by the amount, if any, by which the amount determined under ","children":[{"t":"ref","text":"section 1391 of this title","href":"/us/usc/t29/s1391","tail":" for the employer, determined without regard to this subsection, exceeds $150,000."}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t29/s1389/c","children":[{"t":"num","text":"(c)"},{"t":"heading","text":"Nonapplicability"},{"t":"chapeau","text":"This section does not apply\u2014"},{"t":"para","id":"/us/usc/t29/s1389/c/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" to an employer who withdraws in a plan year in which substantially all employers withdraw from the plan, or","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t29/s1389/c/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" in any case in which substantially all employers withdraw from the plan during a period of one or more plan years pursuant to an agreement or arrangement to withdraw, to an employer who withdraws pursuant to such agreement or arrangement.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t29/s1389/d","children":[{"t":"num","text":"(d)"},{"t":"heading","text":"Presumption of employer withdrawal from plan pursuant to agreement or arrangement applicable in action or proceeding to determine or collect withdrawal liability"},{"t":"content","children":[{"t":"p","text":"In any action or proceeding to determine or collect withdrawal liability, if substantially all employers have withdrawn from a plan within a period of 3 plan years, an employer who has withdrawn from such plan during such period shall be presumed to have withdrawn from the plan pursuant to an agreement or arrangement, unless the employer proves otherwise by a preponderance of the evidence.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"}]}]}