29 USC 1421 - Reorganization status

(a) Reorganization index of plan for plan year greater than zero 
A multiemployer plan is in reorganization for a plan year if the plans reorganization index for that year is greater than zero.
(b) Determination of reorganization index of plan for plan year; applicable factors, definitions, etc. 

(1) A plans reorganization index for any plan year is the excess of
(A) the vested benefits charge for such year, over
(B) the net charge to the funding standard account for such year.
(2) For purposes of this part, the net charge to the funding standard account for any plan year is the excess (if any) of
(A) the charges to the funding standard account for such year under section 412 (b)(2)1 of title 26, over
(B) the credits to the funding standard account under section 412 (b)(3)(B)1 of title 26.
(3) For purposes of this part, the vested benefits charge for any plan year is the amount which would be necessary to amortize the plans unfunded vested benefits as of the end of the base plan year in equal annual installments
(A) over 10 years, to the extent such benefits are attributable to persons in pay status, and
(B) over 25 years, to the extent such benefits are attributable to other participants.
(4) 
(A) The vested benefits charge for a plan year shall be based on an actuarial valuation of the plan as of the end of the base plan year, adjusted to reflect
(i) any
(I) decrease of 5 percent or more in the value of plan assets, or increase of 5 percent or more in the number of persons in pay status, during the period beginning on the first day of the plan year following the base plan year and ending on the adjustment date, or
(II) at the election of the plan sponsor, actuarial valuation of the plan as of the adjustment date or any later date not later than the last day of the plan year for which the determination is being made,
(ii) any change in benefits under the plan which is not otherwise taken into account under this subparagraph and which is pursuant to any amendment
(I) adopted before the end of the plan year for which the determination is being made, and
(II) effective after the end of the base plan year and on or before the end of the plan year referred to in subclause (I), and
(iii) any other event (including an event described in subparagraph (B)(i)(I)) which, as determined in accordance with regulations prescribed by the Secretary, would substantially increase the plans vested benefit charge.
(B) 
(i) In determining the vested benefits charge for a plan year following a plan year in which the plan was not in reorganization, any change in benefits which
(I) results from the changing of a group of participants from one benefit level to another benefit level under a schedule of plan benefits as a result of changes in a collective bargaining agreement, or
(II) results from any other change in a collective bargaining agreement,

shall not be taken into account except to the extent provided in regulations prescribed by the Secretary of the Treasury.

(ii) Except as otherwise determined by the Secretary of the Treasury, in determining the vested benefits charge for any plan year following any plan year in which the plan was in reorganization, any change in benefits
(I) described in clause (i)(I), or
(II) described in clause (i)(II) as determined under regulations prescribed by the Secretary of the Treasury,

shall, for purposes of subparagraph (A)(ii), be treated as a change in benefits pursuant to an amendment to a plan.

(5) 
(A) For purposes of this part, the base plan year for any plan year is
(i) if there is a relevant collective bargaining agreement, the last plan year ending at least 6 months before the relevant effective date, or
(ii) if there is no relevant collective bargaining agreement, the last plan year ending at least 12 months before the beginning of the plan year.
(B) For purposes of this part, a relevant collective bargaining agreement is a collective bargaining agreement
(i) which is in effect for at least 6 months during the plan year, and
(ii) which has not been in effect for more than 36 months as of the end of the plan year.
(C) For purposes of this part, the relevant effective date is the earliest of the effective dates for the relevant collective bargaining agreements.
(D) For purposes of this part, the adjustment date is the date which is
(i) 90 days before the relevant effective date, or
(ii) if there is no relevant effective date, 90 days before the beginning of the plan year.
(6) For purposes of this part, the term person in pay status means
(A) a participant or beneficiary on the last day of the base plan year who, at any time during such year, was paid an early, late, normal, or disability retirement benefit (or a death benefit related to a retirement benefit), and
(B) to the extent provided in regulations prescribed by the Secretary of the Treasury, any other person who is entitled to such a benefit under the plan.
(7) For purposes of paragraph (3)
(A) in determining the plans unfunded vested benefits, plan assets shall first be allocated to the vested benefits attributable to persons in pay status, and
(B) the vested benefits charge shall be determined without regard to reductions in accrued benefits under section 1425 of this title which are first effective in the plan year.
(8) For purposes of this part, any outstanding claim for withdrawal liability shall not be considered a plan asset, except as otherwise provided in regulations prescribed by the Secretary of the Treasury.
(9) For purposes of this part, the term unfunded vested benefits means with respect to a plan, an amount (determined in accordance with regulations prescribed by the Secretary of the Treasury) equal to
(A) the value of nonforfeitable benefits under the plan, less
(B) the value of assets of the plan.
(c) Payment of benefits to participants 
Except as provided in regulations prescribed by the corporation, while a plan is in reorganization a benefit with respect to a participant (other than a death benefit) which is attributable to employer contributions and which has a value of more than $1,750 may not be paid in a form other than an annuity which (by itself or in combination with social security, railroad retirement, or workers compensation benefits) provides substantially level payments over the life of the participant.
(d) Terminated multiemployer plans 
Any multiemployer plan which terminates under section 1341a (a)(2) of this title shall not be considered in reorganization after the last day of the plan year in which the plan is treated as having terminated.
[1] See References in Text note below.