Single-Employer Pension Plan Amendments Act of 1985

Single-Employer Pension Plan Amendments Act of 1985 - Title I: Amendments to the Employee Retirement Income Security Act of 1974 - Amends title IV (Plan Termination Insurance) of the Employee Retirement Income Security Act of 1974 (ERISA) to revise provisions relating to the single-employer pension plan termination insurance program.

Sets forth new definitions relating to such program for the following terms: (1) contributing sponsor; (2) controlled group; (3) single-employer plan; (4) composite single-employer plan; (5) amount of unfunded guaranteed benefits; (6) final benefit obligation; and (7) person.

Sets forth a technical correction to the Multiemployer Pension Plan Amendments of 1980.

Amends ERISA to increase from $2.60 to $7.50 per capita the annual premium rate payable to the Pension Benefit Guaranty Corporation (the Corporation) by single-employer plans for plan years beginning after December 31, 1984.

Requires that congressional approval of the Corporation's recommended revised premium schedules be by the enactment of a joint resolution (currently a concurrent resolution is required).

Sets forth general requirements relating to the termination of single-employer plans by plan administrators.

Provides that, except for terminations instituted by the Corporation, a single-employer plan may be terminated only in a standard termination or a distress termination, as provided under this Act.

Provides that, if the plan to be terminated is the subject of one or more bargaining agreements between one or more employee organizations and one or more employers, the plan administrator shall notify such employee organization at least 30 days before filing with the Corporation a notice of intent to terminate.

Sets forth general requirements and procedures for standard termination of single-employer plans.

Allows such standard terminations of single-employer plans only if: (1) the plan administrator has filed with the Corporation a notice of intent to terminate the plan in a standard termination on a specified termination date which is not earlier than 10 days after the filing of the notice (including any information the Corporation may require); (2) the plan has been amended to provide that, effective on the termination date, accrued benefits shall not increase after such date, except as required to meet qualification requirements under the Internal Revenue Code; and (3) on or before the date of filing the notice of intent to terminate, the plan administrator is required to notify each plan participant that such notice of intent to terminate has been or will be filed and to provide a copy of such notice of intent to each employee organization representing plan participants.

Makes the contributing sponsors of the plan and the members of their controlled groups jointly and severally liable to contribute to the plan if, after the plan termination, the plan has insufficient assets and such additional amounts are necessary to pay when due all benefits payable under the plan during a plan year.

Prohibits a single-employer plan terminated in a standard termination from closing out its affairs unless: (1) it has assets sufficient to discharge when due all final benefit obligations; and (2) the closing out is carried out in a specified manner, including at least 30 days' advance notification to plan participants and employee organizations that such closing out and a final distribution of assets will take place. Requires, at least 30 days before the proposed distribution of assets, that the plan administrator send a notice to the Corporation including a certification by an enrolled actuary: (1) of the amount of plan assets; (2) of the actuarial present value of the final benefit obligations; and (3) that such assets are sufficient to discharge such obligations when due. Provides for extensions of the period before such final distribution where necessary for compliance. Prohibits any such final distribution pursuant to the closing out in cases of noncompliance with such requirements.

Requires the plan administrator, in connection with such a final distribution, to distribute plan assets by purchasing irrevocable commitments to provide when due all benefits to all participants and beneficiaries, or otherwise fully satisfying such obligation.

Provides that, if a court determines in a civil action after such final distribution is completed that a plan has failed to discharge when due any final benefit obligations and the defendant fails to fully satisfy such obligations within a specified period, the Corporation shall: (1) treat such obligations as though they were benefits under a distress termination; and (2) guarantee such benefits in a specified manner (except those which have been discharged when due by the plan or satisfied by the defendant in the civil action).

Sets forth, for purposes of the minimum funding standards under ERISA, special rules for plans terminated under standard termination.

Sets forth general requirements and procedures for distress termination of single-employer plans.

Sets forth notification and information requirements for proposed distress terminations.

Requires, before such distress terminations are allowed, the plan administrator to demonstrate to the satisfaction of the Corporation that the contributing sponsors and the substantial members of their controlled groups: (1) have each filed, or have had filed against them, either a liquidation petition which has not yet been dismissed or converted into a bankruptcy case, or a reorganization petition which has not yet been dismissed (and, in which case, the bankruptcy court approves the termination); or (2) will each be unable to pay their respective debts when due, and will be unable to continue in business, unless a distress termination occurs (as indicated in substantial evidence provided to the Corporation by a contributing sponsor). Defines a "substantial member" as a person whose assets comprise at least five percent of the controlled group's total assets.

Prohibits distribution of assets pursuant to a distress termination unless the plan administrator receives a notification from the Corporation of its termination that plan assets are sufficient to pay when due all basic benefits under the plan. Provides for extensions of the 90-day period within which the Corporation is to make specified determinations.

Requires the plan administrator, upon the filing of a notice of intent to terminate under a distress termination to: (1) pay benefits attributable to employer contributions, other than death benefits, only in the form of an annuity; (2) not use plan assets to purchase irrevocable commitments to provide benefits from an insurer; and (3) if the plan administrator knows or has reason to know that plan assets are not sufficient to pay when due benefits guaranteed under title IV of ERISA, limit the payment of benefits to the estimated amount of plan benefits guaranteed by the Corporation and of other benefits to which plan assets are allocated under specified provisions of such title.

Requires restoration to pretermination status of single-employer plans terminated under a distress termination solely on the basis of the filing of a liquidation petition, whenever such case is dismissed or converted to a case under which reorganization is sought.

Revises provisions relating to appointment of receivers by the Corporation.

Revises provisions relating to amounts due to the Corporation.

Authorizes "section 4042" trustees, who are appointed by the Corporation, to serve as members on creditors committees.

Authorizes plan administrators to restore a terminated single-employer plans to pretermination status, under procedures to be prescribed by the Corporation, but requires prior approval by the Corporation before a plan terminated in a distress termination may be so restored.

Imposes primary liability to the Corporation on contributing sponsors or members of their controlled groups for termination of single-employer plans under a distress termination or a termination by the Corporation. Imposes joint and several liability upon such persons who are under common control on such termination date. Establishes such liability in the amount of: (1) the outstanding balance of any accumulated funding deficiencies of the plan; and (2) the unfunded guaranteed benefits under the plan. Makes such amount due and payable as of the termination date. Sets forth formulas for the calculation of such amount and procedures for its payments.

Sets forth provisions relating to liability for failure to satisfy final benefit obligations under standard terminations. Provides that, when a court in a civil action determines that such failure has occurred, the contributing sponsor or a member of such sponsor's controlled group shall be liable: (1) to the Corporation for all final benefit obligations which the Corporation guarantees under specified provisions; and (2) to each participant and beneficiary for any such obligations which are not otherwise guaranteed by the Corporation, discharged when due by the plan, or satisfied by the defendant in such action.

Creates a lien in favor of a single-employer plan if the plan: (1) has an increase in its accumulated funding deficiency; (2) is granted a waiver of minimum funding standards; or (3) has a reduced amortization charge resulting from the granting of an extension of an amortization period.

Requires pension plan liability provisions to be applied without regard to any transaction with a principal purpose of evading or avoiding such liability. Treats certain corporate reorganizations as if the reorganized corporate entity were the same as the entity to which such liability applies.

Sets forth conforming, technical, and miscellaneous amendments to ERISA.

Title II: Amendments to the Internal Revenue Code of 1954 - Amends the Internal Revenue Code to conform to the amendments of ERISA made by title I of this Act.

Allows a tax deduction for contributions to avoid a funding deficiency in any plan which, after a standard termination, has insufficient assets to pay when due all benefits payable during the plan year. Provides that, for purposes of such tax deduction (and except as otherwise provided in regulations prescribed by the Secretary) the contributing employer whose controlled group member makes such contribution shall be deemed to have made the contribution to the plan.