StacksVerified U.S. regulatory reference

29 CFR §2580.412-2

Verified against eCFR.gov as of June 20, 2026View official text on eCFR.gov ↗
Only completely unfunded plans in which the plan benefits derive solely from the general assets of a union 1 or employer, and in which plan assets are not segregated in any way from the general assets of a union or employer and remain solely within the general assets until the time of distribution of benefits, shall be exempt from the bonding provisions. As such, the language “where such plan is one under which the only assets from which benefits are paid are the general assets of a union or of an employer” shall not be deemed to exempt a plan from the coverage of section 13 if the plan is one in which:
  1. (a)Any benefits thereunder are provided or underwritten by an insurance carrier or service or other organization, or
  2. (b)There is a trust or other separate entity to which contributions are made or out of which benefits are paid, or
  3. (c)Contributions to the plan are made by the employees, either through withholding or otherwise, or from any source other than the employer or union involved, or
  4. (d)There is a separately maintained bank account or separately maintained books and records for the plan or other evidence of the existence of a segregrated or separately maintained or administered fund out of which plan benefits are to be provided.