ESTABLISHMENT OF PENSION BENEFIT GUARANTY FUNDS

ESTABLISHMENT OF PENSION BENEFIT GUARANTY FUNDS Sec. 4005. [1305] (a) There are established on the books of the Treasury of the United States four revolving funds to be used by the corporation in carrying out its duties under this title. One of the funds shall be used with respect to basic benefits guaranteed under section 4022, one of the funds shall be used with respect to basic benefits guaranteed under section 4022A, one of the funds shall be used with respect to nonbasic benefits guaranteed under section 4022 (if any), and the remaining fund shall be used with respect to nonbasic benefits guaranteed under section 4022A (if any), other than subsection (g)(2) thereof (if any). Whenever in this title reference is made to the term “fund” the reference shall be considered to refer to the appropriate fund established under this subsection. (b)(1) Each fund established under this section shall be credited with the appropriate portion of— (A) premiums, penalties, interest, and charges collected under this title, (B) the value of the assets of a plan administered under section 4042 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 title. (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 4022 or 4022A, (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 title and the estimated amount of other benefits to which plan assets are allocated under section 4044, 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 4006 with respect to the fund to be used for basic benefits under section 4022A 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 4261, shall be withdrawn proportionately from the noninterest-bearing and other accounts within the fund. [Subsection (c) was repealed by section 40234(a) of Division D of Public Law 112–141] (d)(1) A fifth fund shall be established for the reimbursement of uncollectible withdrawal liability under section 4222, and shall be credited with the appropriate— (A) premiums, penalties, and interest charges collected under this title, and (B) earnings on investments of the fund or on assets credited to the fund. The fund shall be available to make payments pursuant to the supplemental program established under section 4222, including those expenses and other charges determined to be appropriate by the corporation. (2) The corporation may invest amounts of the fund in such obligations as the corporation considers appropriate. (e)(1) A sixth fund shall be established for the supplemental benefit guarantee program provided under section 4022A(g)(2). (2) Such fund shall be credited with the appropriate— (A) premiums, penalties, and interest charges collected under section 4022A(g)(2), and (B) earnings on investments of the fund or on assets credited to the fund. The fund shall be available for making payments pursuant to the supplemental benefit guarantee program established under section 4022A(g)(2), including those expenses and other charges determined to be appropriate by the corporation. (3) The corporation may invest amounts of the fund in such obligations as the corporation considers appropriate. (f)(1) A seventh fund shall be established and credited with— (A) premiums, penalties, and interest charges collected under section 4006(a)(3)(A)(i) (not described in subparagraph (B)) to the extent attributable to the amount of the premium in excess of $8.50, (B) premiums, penalties, and interest charges collected under section 4006(a)(3)(E), and (C) earnings on investments of the fund or on assets credited to the fund. (2) Amounts in the fund shall be available for transfer to other funds established under this section with respect to a single-employer plan but shall not be available to pay— (A) administrative costs of the corporation, or (B) benefits under any plan which was terminated before October 1, 1988, unless no other amounts are available for such payment. (3) The corporation may invest amounts of the fund in such obligations as the corporation considers appropriate. (g)(1) Amounts in any fund established under this section may be used only for the purposes for which such fund was established and may not be used to make loans to (or on behalf of) any other fund or to finance any other activity of the corporation. (2) Any repayment to the corporation of any amount paid out of any fund in connection with a multiemployer plan shall be deposited in such fund. (h) Any stock in a person liable to the corporation under this title which is paid to the corporation by such person or a member of such person's controlled group in satisfaction of such person's liability under this title may be voted only by the custodial trustees or outside money managers of the corporation. (i)(1) An eighth fund shall be established for special financial assistance to multiemployer pension plans, as provided under section 4262, and to pay for necessary administrative and operating expenses of the corporation relating to such assistance. (2) There is appropriated from the general fund such amounts as are necessary for the costs of providing financial assistance under section 4262 and necessary administrative and operating expenses of the corporation. The eighth fund established under this subsection shall be credited with amounts from time to time as the Secretary of the Treasury, in conjunction with the Director of the Pension Benefit Guaranty Corporation, determines appropriate, from the general fund of the Treasury, but in no case shall such transfers occur after September 30, 2030.