---
kind: "section"
citation: "29 U.S.C. § 1397"
title: "29"
title_heading: "Labor"
number: "1397"
heading: "Application of part in case of certain pre-1980 withdrawals; adjustment of covered plan"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/29/1397"
units:
  - "Chapter 18 — Employee Retirement Income Security Program"
  - "Subchapter III — Plan Termination Insurance"
  - "Subtitle E — Special Provisions for Multiemployer Plans"
  - "Part 1 — employer withdrawals"
---

# §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](/usc/29/1381.md?p=b-2) from a plan which occurs after September 25, 1980, and for the purpose of determining whether there has been a [partial withdrawal](/usc/29/1381.md?p=b-3) after such date, the amount of contributions, and the number of [contribution base units](/usc/29/1301.md?p=a-11), of such employer properly allocable—
  - (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,

  shall not be taken into account.

- (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)](#a).

## 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.)

## Notes

### Editorial Notes

### Amendments

1984—Subsec. (a). Pub. L. 98–369, § 558(b)(1)(A), (B), substituted “September 25, 1980” for “April 28, 1980” in provisions preceding par. (1) and “September 26, 1980” for “April 29, 1980” in pars. (1) and (2).