Treasury Regulations (26 C.F.R.)
26 CFR § 31.3221-4
Exception from supplemental tax.
# (a) General rule.
Section 3221(d) provides an exception from the excise tax imposed by section 3221(c). Under this exception, the excise tax imposed by section 3221(c) does not apply to an employer with respect to employees who are covered by a supplemental pension plan, as defined in paragraph (b) of this section, that is established pursuant to an agreement reached through collective bargaining between the employer and employees, within the meaning of paragraph (c) of this section.
# (b)
Definition of supplemental pension plan—(1) In general. A plan is a supplemental pension plan covered by the section 3221(d) exception described in paragraph (a) of this section only if it meets the requirements of paragraphs (b)(2) through (b)(4) of this section.
(2) Pension benefit requirement. A plan is a supplemental pension plan within the meaning of this section only if the plan is a pension plan within the meaning of § 1.401-1(b)(1)(i) of this chapter. Thus, a plan is a supplemental pension plan only if the plan provides for the payment of definitely determinable benefits to employees over a period of years, usually for life, after retirement. A plan need not be funded through a qualified trust that meets the requirements of section 401(a) or an annuity contract that meets the requirements of section 403(a) in order to meet the requirements of this paragraph (b)(2). A plan that is a profit-sharing plan within the meaning of § 1.401-1(b)(1)(ii) of this chapter or a stock bonus plan within the meaning of § 1.401-1(b)(1)(iii) of this chapter is not a supplemental pension plan within the meaning of this paragraph (b).
(3) Railroad Retirement Board determination with respect to the plan. A plan is a supplemental pension plan within the meaning of this paragraph (b) with respect to an employee only during any period for which the Railroad Retirement Board has made a determination under 20 CFR 216.42(d) that the plan is a private pension, the payments from which will result in a reduction in the employee's supplemental annuity payable under 45 U.S.C. 231a(b). A plan is not a supplemental pension plan for any time period before the Railroad Retirement Board has made such a determination, or after that determination is no longer in force.
(4) Other requirements. [Reserved]
# (c) Collective bargaining agreement.
A plan is established pursuant to a collective bargaining agreement with respect to an employee only if, in accordance with the rules of § 1.410(b)-6(d)(2) of this chapter, the employee is included in a unit of employees covered by an agreement that the Secretary of Labor finds to be a collective bargaining agreement between employee representatives and one or more employers, provided that there is evidence that retirement benefits were the subject of good faith bargaining between employee representatives and the employer or employers.
# (d) Substitute section 3221(d) excise tax.
Section 3221(d) imposes an excise tax on any employer who has been excepted from the excise tax imposed under section 3221(c) by the application of section 3221(d) and paragraph (a) of this section with respect to an employee. The excise tax is equal to the amount of the supplemental annuity paid to that employee under 45 U.S.C. 231a(b), plus a percentage thereof determined by the Railroad Retirement Board to be sufficient to cover the administrative costs attributable to such payments under 45 U.S.C. 231a(b).
# (e)
Effective date—(1) In general. Except as provided in paragraph (e)(2) of this section, this section applies beginning on October 1, 1998.
(2) Delayed effective date for collective bargaining agreement provisions. Paragraph (c) of this section applies beginning on January 1, 2000.
[T.D. 8832, 64 FR 42833, Aug. 6, 1999]
Source: view the official text
In this part (40 sections)
- 31.3121(q)-1 · (q)-1 Tips included for employee taxes.
- 31.3121(r)-1 · (r)-1 Election of coverage by religious orders.
- 31.3121(s)-1 · (s)-1 Concurrent employment by related corporations with…
- 31.3121(v)(2)-1 · (v)(2)-1 Treatment of amounts deferred under certain…
- 31.3121(v)(2)-2 · (v)(2)-2 Effective dates and transition rules.
- 31.3123-1 · Deductions by an employer from remuneration of an employee.
- 31.3127-1 · Exemption for employers and their employees if both are…
- 31.3131-1 · Recapture of credits.
- 31.3132-1 · Recapture of credits.
- 31.3134-1 · Recapture of credits.
- 31.3201-1 · Measure of employee tax.
- 31.3201-2 · Rates and computation of employee tax.
- 31.3202-1 · Collection of, and liability for, employee tax.
- 31.3211-1 · Measure of employee representative tax.
- 31.3211-2 · Rates and computation of employee representative tax.
- 31.3211-3 · Employee representative supplemental tax.
- 31.3212-1 · Determination of compensation.
- 31.3221-1 · Measure of employer tax.
- 31.3221-2 · Rates and computation of employer tax.
- 31.3221-3 · Supplemental tax.
- 31.3221-4 · Exception from supplemental tax.
- 31.3221-5 · Recapture of credits under the Families First Coronavirus…
- 31.3231(a)-1 · (a)-1 Who are employers.
- 31.3231(b)-1 · (b)-1 Who are employees.
- 31.3231(c)-1 · (c)-1 Who are employee representatives.
- 31.3231(d)-1 · (d)-1 Service.
- 31.3231(e)-1 · (e)-1 Compensation.
- 31.3231(e)-2 · (e)-2 Contribution base.
- 31.3301-1 · Persons liable for tax.
- 31.3301-2 · Measure of tax.
- 31.3301-3 · Rate and computation of tax.
- 31.3301-4 · When wages are paid.
- 31.3302(a)-1 · (a)-1 Credit against tax for contributions paid.
- 31.3302(a)-2 · (a)-2 Refund of State contributions.
- 31.3302(a)-3 · (a)-3 Proof of credit under section 3302(a).
- 31.3302(b)-1 · (b)-1 Additional credit against tax.
- 31.3302(b)-2 · (b)-2 Proof of additional credit under section 3302(b).
- 31.3302(c)-1 · (c)-1 Limit on total credits.
- 31.3302(d)-1 · (d)-1 Definitions and special rules relating to limit on…
- 31.3302(e)-1 · (e)-1 Successor employer.