Pension Benefit Guaranty Corporation 

82-15 

April 30, 1982 

REFERENCE: 

 [*1] 4201 Withdrawal Liability Established

4211(e) Withdrawal Liability - Reduction

4232 Transfers to Single Employer Plan

4232(d) Transfers to Single Employer Plan. Guaranteed Benefits

4232(e) Transfers to Single Employer Plan. Transferee Plan

4234 Asset Transfer Rules 

OPINION: 

 This is in response to your letter to the Internal Revenue Service, which was referred to this agency, the Pension

Benefit Guaranty Corporation ("PBGC"), for a response. Sections 4232 and 4234 of the Employee Retirement Income

Security Act of 1974 ("ERISA") to which you refer in your letter were added to Title IV of ERISA by the Multiemployer

Pension Plan Amendments Act of 1980 ("MPPAA"). 

We understand that * * * Corporation * * * * * * is a contributing employer to the * * * Pension Fund (the "Plan"),

a multiemployer plan. desires to withdraw the assets and liabilities attributable to its employees from the Plan and

establish a single employer plan for these employees. Your question is whether Sections 4232(d) and (e) and 4234 of

the MPPAA require the Plan to separate the assets and liabilities attributable to * * * and to transfer such assets and

liabilities to a newly-created single employer plan if requested by [*2] * * *. 

Section 4232 and 4234, which apply to transfers between a multiemployer plan and a single employer plan, do not

require, directly or indirectly, that a multiemployer plan transfer assets and liabilities upon the request of a contributing

employer. n1 

n1 Section 4234 also applies to assets transferred between multiemployer plans. 

Section 4234 provides that a transfer of assets from a multiemployer plan to another plan shall comply with assettransfer rules which shall be adopted by the multiemployer plan. Multiemployer plans are required to provide rules

regarding the transfer of assets to another plan. (See House Explanation, Report 96-869 Part II). The rules need not

require a transfer of assets and liabilities upon an employer's request. If there is a transfer of assets and/or liabilities, the

transfer must satisfy rules established and applied uniformly. If the transfer of plan assets is in connection with a transfer

of plan liabilities, the rules cannot unreasonably restrict the transfer of plan assets. Section 4232(d) governs PBGC's

guarantee of benefits when liabilities are transferred to a single employer plan. Section 4232(e) generally prohibits a

transfer [*3] of liabilities to a single employer plan without the consent of that plan's sponsor. 

Recently you spoke to * * * of PBGC's Office of Program Operations and asked two additional questions. Your first

question relates to the consequences of * * * withdrawal from the Plan and establishment of a single employer plan. You

should be aware that Section 4201 of ERISA provides that withdrawn employer will have liability to a * * *

multiemployer plan in the event of a complete or partial withdrawal. If there is a transfer of liabilities to a single

employer plan in connection with a withdrawal, Section 4211(e) of ERISA provides that withdrawal liability would be

decreased by the value of the transferred unfunded vested benefits. Your second question is whether a single employer

plan may provide future benefit accruals only. This question is properly within the jurisdiction of the Department of

Labor and the Internal Revenue Service, and we suggest that you contact on eof those agencies. 

We hope this response is helpful. If you have any further questions, please call me or * * * Staff Attorney, at 202-

254-3010. 

Henry Rose 

General Counsel