1. (a) Establishment of four revolving funds on books of Treasury of the United States There are established on the books of the Treasury of the United States for revolving funds to be used by the corporation in carrying out its duties under this subchapter. One of the funds shall be used with respect to basic benefits guaranteed under section 1322 of this title, one of the funds shall be used with respect to basic benefits guaranteed under section 1322a of this title, one of the funds shall be used with respect to nonbasic benefits guaranteed under section 1322 of this title (if any), and the remaining fund shall be used with respect to nonbasic benefits guaranteed under section 1322a of this title (if any), other than subsection (g)(2) thereof (if any). Whenever in this subchapter reference is made to the term “fund” the reference shall be considered to refer to the appropriate fund established under this subsection.

2. (b) Credits to funds; availability of funds; investment of moneys in excess of current needs

   1. (1) Each fund established under this section shall be credited with the appropriate portion of—

      1. (A) premiums, penalties, interest, and charges collected under this subchapter,
      2. (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,
      3. (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),
      4. (D) earnings on investments of the fund or on assets credited to the fund under this subsection,
      5. (E) attorney’s fees awarded to the corporation, and
      6. (F) receipts from any other operations under this subchapter.

   2. (2) Subject to the provisions of subsection (a), each fund shall be available—

      1. (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,
      2. (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,
      3. (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
      4. (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. (3)

      1. (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.

      2. (B) Notwithstanding subparagraph (A)—

         1. (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:

            1. (I) for fiscal year 2016, $108,000,000;
            2. (II) for fiscal year 2017, $111,000,000;
            3. (III) for fiscal year 2018, $113,000,000;
            4. (IV) for fiscal year 2019, $149,000,000; and
            5. (V) for fiscal year 2020, $296,000,000;
         2. (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
         3. (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.
3. (c) Repealed. Pub. L. 112–141, div. D, title II, § 40234(a), July 6, 2012, 126 Stat. 858

4. (d) Establishment of fifth fund; purpose, availability, etc.

   1. (1) A fifth fund shall be established for the reimbursement of uncollectible withdrawal liability under section 1402 of this title, and shall be credited with the appropriate—

      1. (A) premiums, penalties, and interest charges collected under this subchapter, and
      2. (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 1402 of this title, including those expenses and other charges determined to be appropriate by the corporation.

   2. (2) The corporation may invest amounts of the fund in such obligations as the corporation considers appropriate.

5. (e) Establishment of sixth fund; purpose, availability, etc.

   1. (1) A sixth fund shall be established for the supplemental benefit guarantee program provided under section 1322a(g)(2) of this title.

   2. (2) Such fund shall be credited with the appropriate—

      1. (A) premiums, penalties, and interest charges collected under section 1322a(g)(2) of this title, and
      2. (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 1322a(g)(2) of this title, including those expenses and other charges determined to be appropriate by the corporation.

   3. (3) The corporation may invest amounts of the fund in such obligations as the corporation considers appropriate.

6. (f) Deposit of premiums into separate revolving fund

   1. (1) A seventh fund shall be established and credited with—

      1. (A) premiums, penalties, and interest charges collected under section 1306(a)(3)(A)(i) of this title (not described in subparagraph (B)) to the extent attributable to the amount of the premium in excess of $8.50,
      2. (B) premiums, penalties, and interest charges collected under section 1306(a)(3)(E) of this title, and
      3. (C) earnings on investments of the fund or on assets credited to the fund.

   2. (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—

      1. (A) administrative costs of the corporation, or
      2. (B) benefits under any plan which was terminated before October 1, 1988,

      unless no other amounts are available for such payment.

   3. (3) The corporation may invest amounts of the fund in such obligations as the corporation considers appropriate.

7. (g) Other use of funds; deposits of repayments

   1. (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. (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.
8. (h) Voting by corporation of stock paid as liability Any stock in a person liable to the corporation under this subchapter 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 subchapter may be voted only by the custodial trustees or outside money managers of the corporation.

(Pub. L. 93–406, title IV, § 4005, Sept. 2, 1974, 88 Stat. 1009; Pub. L. 96–364, title IV, § 403(a), Sept. 26, 1980, 94 Stat. 1300; Pub. L. 99–272, title XI, § 11016(a)(1), (2), (c)(7), Apr. 7, 1986, 100 Stat. 268, 274; Pub. L. 100–203, title IX, §§ 9312(c)(4), 9331(d), Dec. 22, 1987, 101 Stat. 1330–364, 1330–368; Pub. L. 103–465, title VII, § 776(b)(2), Dec. 8, 1994, 108 Stat. 5048; Pub. L. 112–141, div. D, title II, § 40234(a), (b)(1), July 6, 2012, 126 Stat. 858; Pub. L. 113–235, div. O, title I, § 131(b), Dec. 16, 2014, 128 Stat. 2797.)

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. “(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. “(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.