29 USC § 1397 - Application of part in case of certain pre-1980 withdrawals; adjustment of covered plan

---
identifier: "/us/usc/t29/s1397"
source: "usc"
legal_status: "official_prima_facie"
title: "29 USC § 1397 - Application of part in case of certain pre-1980 withdrawals; adjustment of covered plan"
title_number: 29
title_name: "LABOR"
section_number: "1397"
section_name: "Application of part in case of certain pre-1980 withdrawals; adjustment of covered plan"
chapter_number: 18
chapter_name: "EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM"
subchapter_number: "III"
subchapter_name: "PLAN TERMINATION INSURANCE"
part_number: "1"
part_name: "employer withdrawals"
positive_law: false
currency: "119-73"
last_updated: "2026-03-26"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Pub. L. 93–406, title IV, § 4217, as added Pub. L. 96–364, title I, § 104(2), Sept. 26, 1980, 94 Stat. 1235; amended Pub. L. 98–369, div. A, title V, § 558(b)(1)(A), (B), July 18, 1984, 98 Stat. 899.)"
---


# § 1397. Application of part in case of certain pre-1980 withdrawals; adjustment of covered plan

**(a)** For the purpose of determining the amount of unfunded vested benefits allocable to an employer for a partial or complete withdrawal from a plan which occurs after September 25, 1980, and for the purpose of determining whether there has been a partial withdrawal after such date, the amount of contributions, and the number of contribution base units, of such employer properly allocable—

shall not be taken into account.

**(1)** to work performed under a collective bargaining agreement for which there was a permanent cessation of the obligation to contribute before September 26, 1980, or

**(2)** to work performed at a facility at which all covered operations permanently ceased before September 26, 1980, or for which there was a permanent cessation of the obligation to contribute before that date,

**(b)** A plan may, in a manner not inconsistent with regulations, which shall be prescribed by the corporation, adjust the amount of unfunded vested benefits allocable to other employers under a plan maintained by an employer described in subsection (a).

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**Source Credit**: (Pub. L. 93–406, title IV, § 4217, as added Pub. L. 96–364, title I, § 104(2), Sept. 26, 1980, 94 Stat. 1235; amended Pub. L. 98–369, div. A, title V, § 558(b)(1)(A), (B), July 18, 1984, 98 Stat. 899.)

## Editorial Notes

### Amendments

1984—Subsec. (a). , (B), substituted “” for “” in provisions preceding par. (1) and “” for “” in pars. (1) and (2).