101 STAT. 1330-348
PUBLIC LAW 100-203—DEC. 22, 1987
26 USC 4971.
(1) IN GENERAL.—Section 4971(a) of the 1986 Code (relating to
26 USC 4971 "0*^-
initial tax on failure to meet minimum funding standards) is amended by striking out "5 percent" and inserting in lieu thereof "10 percent (5 percent in the case of a multiemployer plan)". (2) EFFECTIVE DATE.—The amendments made by this subsection shall apply to plan years beginning after 1988. (d) REQUIREMENT OF NOTICE.—Section 101 of ERISA (relating to duty of disclosure and reporting) (29 U.S.C. 1021) is amended by redesignating subsection (d) as subsection (e) and by inserting after subsection (c) the following new subsection: "(d) NOTICE OF FAILURE TO MEET MINIMUM FUNDING ARDS.—
"(1) IN GENERAL.—If an employer of a plan other than a
multiemployer plan fails to make a required installment or other payment required to meet the minimum funding standard under section 302 to a plan before the 60th day following the due date for such installment or other payment, the employer shall notify each participant and beneficiary (including an alternate payee as defined in section 206(d)(3)(K)) of such plan of such failure. Such notice shall be made at such time and in such manner as the Secretary may prescribe. "(2)
SUBSECTION NOT TO APPLY IF WAIVER PENDING.—This
subsection shall not apply to any failure if the employer has filed a waiver request under section 303 with respect to the plan year to which the required installment relates, except that if the waiver request is denied, notice under paragraph (1) shall be provided within 60 days after the date of such denial. "(3) DEFINITIONS.—For purposes of this subsection, the terms
'required installment' and 'due date' have the same meanings given such terms by section 302(e)." (e) IMPOSITION OF L I E N W H E R E F A I L U R E TO M A K E R E Q U I R E D C O N TRIBUTIONS.— (1) AMENDMENT TO 1986 CODE.—Section 412 of the 1986 Code
(as amended by this subtitle) is amended by adding a t the e n d thereof the following new subsection: "(n) IMPOSITION OF L I E N CONTRIBUTIONS.—
W H E R E F A I L U R E TO M A K E R E Q U I R E D
"(1) IN GENERAL.—In the case of a plan to which this section applies, if— "(A) any person fails to m a k e a required installment under subsection (m) or any other payment required under this section before the d u e date for such installment or other payment, and
"(B) the unpaid balance of such installment or other payment (including interest), w h e n added to the aggregate u n p a i d balance of all preceding such installments o r other payments for which payment w a s not m a d e before the d u e date (including interest), exceeds $1,000,000, the n the r e shall be a lien in favor of the plan in the a m o u n t determined under paragraph (3) upon all property and rights to property, w h e the r real or personal, belonging to such person and any other person w h o is a m e m b e r of the s a m e controlled group of which such person is a member. "(2) P L A N S TO W H I C H SUBSECTION APPLIES.—This
shall apply to a defined benefit p l a n (other than a multiemployer plan) for any p l a n year for which the funded c u r r e n t liability percentage (within the m e a n i n g of subsection (1)(8)(B)) of such p l a n is less than 100 percent.