29 U.S.C. § 1403: Withdrawal liability payment fund

The plan sponsors of multiemployer plans may establish or participate in a withdrawal liability payment fund. is established and maintained under section 501(c)(22) of title 26 , maintains agreements which cover a substantial portion of the participants who are in multiemployer plans which (under the rules of the trust instrument) are eligible to participate in the fund, is funded by amounts paid by the plans which participate in the fund, and trustees representing employers who are obligated to contribute to the plans participating in the fund, and trustees representing employees who are participants in plans which participate in the fund. the employer’s unattributable liability, the employer’s withdrawal liability payments which would have been due but for section 1388, 1389, 1399, or 1405 of this title, 1 1 So in original. Probably should be followed by “and”. the employer’s withdrawal liability payments to the extent they are uncollectible. provides for the payment of both the attributable and the unattributable liability of the employer in a single payment, and is subrogated to all rights of the plan against the employer. the value of vested benefits accrued as a result of service with the employer, over the value of plan assets attributed to the employer, and “unattributable liability” means the excess of withdrawal liability over attributable liability. any amount described in paragraph (1) and paragraph (2), and reasonable and necessary administrative expenses in connection with the establishment and operation of the trust and the processing of claims against the fund. The amounts paid by a plan to a fund shall be deemed a reasonable expense of administering the plan under sections 1103(c)(1) and 1104(a)(1)(A)(ii) of this title, and the payments made by a fund to a participating plan shall be deemed services necessary for the operation of the plan within the meaning of section 1108(b)(2) of this title or within the meaning of section 4975(d)(2) of title 26 . only amounts paid by the fund to a plan under subsection (c)(1)(A) shall be credited to withdrawal liability otherwise payable by the employer, unless the plan otherwise provides, and any amounts paid by the fund under subsection (c) to a plan shall be treated by the plan as a payment of withdrawal liability to such plan. For purposes of applying provisions relating to the funding standard accounts (and minimum contribution requirements), amounts paid from the plan to the fund shall be applied to reduce the amount treated as contributed to the plan. subsection (c)(1)(A), to the extent not credited under subsection (d)(1)(A), and subsection (c)(1)(C). Notwithstanding any other provision of this chapter, a fiduciary of the fund shall discharge the fiduciary’s duties with respect to the fund in accordance with the standards for fiduciaries prescribed by this chapter (to the extent not inconsistent with the purposes of this section), and in accordance with the documents and instruments governing the fund insofar as such documents and instruments are consistent with the provisions of this chapter (to the extent not inconsistent with the purposes of this section). The provisions of the preceding sentence shall supersede any and all State laws relating to fiduciaries insofar as they may now or hereafter relate to a fund to which this section applies. No payments shall be made from a fund to a plan on the occasion of a withdrawal or partial withdrawal of an employer from such plan if the employees representing the withdrawn contribution base units continue, after such withdrawal, to be represented under section 159 of this title (or other applicable labor laws) in negotiations with such employer by the labor organization which represented such employees immediately preceding such withdrawal. Nothing in this section shall be construed to prohibit the purchase of insurance by an employer from any other person, to limit the circumstances under which such insurance would be payable, or to limit in any way the terms and conditions of such insurance. The corporation may provide by regulation rules not inconsistent with this section governing the establishment and maintenance of funds, but only to the extent necessary to carry out the purposes of this part (other than section 1402 of this title ).