Sec. 202. PROCEDURES APPLICABLE TO DISPUTES INVOLVING PENSION PLAN WITHDRAWAL LIABILITY
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## SEC. 202 PROCEDURES APPLICABLE TO DISPUTES INVOLVING PENSION PLAN WITHDRAWAL LIABILITY ###
(a)In General Section 4221 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1401) is amended by adding at the end the following new subsection: > > ### “(f) Procedures Applicable to Certain Disputes > > > #### “(1) In general > > If— > > > ##### “(A) > > a plan sponsor of a plan determines that— > > > ###### “(i) > > a complete or partial withdrawal of an employer has occurred, or > > > ###### “(ii) > > an employer is liable for withdrawal liability payments with respect to the complete or partial withdrawal of an employer from the plan, > > > ##### “(B) > > such determination is based in whole or in part on a finding by the plan sponsor under section 4212(c) that a principal purpose of a transaction that occurred before January 1, 1999, was to evade or avoid withdrawal liability under this subtitle, and > > > ##### “(C) > > such transaction occurred at least 5 years before the date of the complete or partial withdrawal, > > then the special rules under paragraph
(2)shall be used in applying subsections
(a)and
(d)of this section and section 4219(c) to the employer. > > > #### “(2) Special rules > > > ##### “(A) Determination > > Notwithstanding subsection (a)(3)— > > > ###### “(i) > > a determination by the plan sponsor under paragraph (1)(B) shall not be presumed to be correct, and > > > ###### “(ii) > > the plan sponsor shall have the burden to establish, by a preponderance of the evidence, the elements of the claim under section 4212(c) that a principal purpose of the transaction was to evade or avoid withdrawal liability under this subtitle. > > Nothing in this subparagraph shall affect the burden of establishing any other element of a claim for withdrawal liability under this subtitle. > > > ##### “(B) Procedure > > Notwithstanding subsection
(d)and section 4219(c), if an employer contests the plan sponsor’s determination under paragraph
(1)through an arbitration proceeding pursuant to subsection (a), or through a claim brought in a court of competent jurisdiction, the employer shall not be obligated to make any withdrawal liability payments until a final decision in the arbitration proceeding, or in court, upholds the plan sponsor’s determination.” > . ###
(b)Effective Date **[**[26 U.S.C. 1401 note](/us/usc/t26/s1401)**]** The amendments made by this section shall apply to any employer that receives a notification under section 4219(b)(1) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1399(b)(1)) after October 31, 2003.
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Sec. 202
PROCEDURES APPLICABLE TO DISPUTES INVOLVING PENSION PLAN WITHDRAWAL LIABILITY
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