Page 565 TITLE 29—LABOR § 1414

(2) In the case of a transfer described in subsection (c)(3) of this section, paragraph (1) of

this subsection is satisfied by the advance agreement to the transfer by the employer who will

be obligated to contribute to the single-employer plan.

(f) Additional requirements by corporation for

protection of interests of plan participants,

beneficiaries and corporation; approval by

corporation of transfer of assets or liabilities

to single-employer plan from plan in reorganization; covered transfers in connection

with termination

(1) The corporation may prescribe by regulation such additional requirements with respect

to the transfer of assets or liabilities as may be

necessary to protect the interests of plan participants and beneficiaries and the corporation.

(2) Except as otherwise determined by the corporation, a transfer of assets or liabilities to a

single-employer plan from a plan in reorganization under section 1421 of this title is not effective unless the corporation approves such transfer.

(3) No transfer to which this section applies, in

connection with a termination described in section 1341a(a)(2) of this title shall be effective unless the transfer meets such requirements as

may be established by the corporation to prevent an increase in the risk of loss to the corporation.

(Pub. L. 93–406, title IV, §4232, as added Pub. L.

96–364, title I, §104(2), Sept. 26, 1980, 94 Stat.

1245.)

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1414 of this title.

§ 1413. Partition

(a) Authority of corporation

The corporation may order the partition of a

multiemployer plan in accordance with this section.

(b) Authority of plan sponsor upon application to

corporation for partition order; procedures

applicable to corporation

A plan sponsor may apply to the corporation

for an order partitioning a plan. The corporation

may not order the partition of a plan except

upon notice to the plan sponsor and the participants and beneficiaries whose vested benefits

will be affected by the partition of the plan, and

upon finding that—

(1) a substantial reduction in the amount of

aggregate contributions under the plan has resulted or will result from a case or proceeding

under title 11 with respect to an employer;

(2) the plan is likely to become insolvent;

(3) contributions will have to be increased

significantly in reorganization to meet the

minimum contribution requirement and prevent insolvency; and

(4) partition would significantly reduce the

likelihood that the plan will become insolvent.

(c) Authority of corporation notwithstanding

pendency of partition proceeding

The corporation may order the partition of a

plan notwithstanding the pendency of a proceeding described in subsection (b)(1) of this section.

(d) Scope of partition order

The corporation’s partition order shall provide

for a transfer of no more than the nonforfeitable

benefits directly attributable to service with the

employer referred to in subsection (b)(1) of this

section and an equitable share of assets.

(e) Nature of plan created by partition

The plan created by the partition is—

(1) a successor plan to which section 1322a of

this title applies, and

(2) a terminated multiemployer plan to

which section 1341a(d) of this title applies,

with respect to which only the employer described in subsection (b)(1) of this section has

withdrawal liability, and to which section 1368

of this title applies.

(f) Authority of corporation to obtain decree partitioning plan and appointing trustee for terminated portion of partitioned plan

The corporation may proceed under section

1342(c) through (h) of this title for a decree partitioning a plan and appointing a trustee for the

terminated portion of a partitioned plan. The

court may order the partition of a plan upon

making the findings described in subsection

(b)(1) through (4) of this section, and subject to

the conditions set forth in subsections (c)

through (e) of this section.

(Pub. L. 93–406, title IV, §4233, as added Pub. L.

96–364, title I, §104(2), Sept. 26, 1980, 94 Stat.

1246.)

§ 1414. Asset transfer rules

(a) Applicability and scope

A transfer of assets from a multiemployer

plan to another plan shall comply with assettransfer rules which shall be adopted by the

multiemployer plan and which—

(1) do not unreasonably restrict the transfer

of plan assets in connection with the transfer

of plan liabilities, and

(2) operate and are applied uniformly with

respect to each proposed transfer, except that

the rules may provide for reasonable variations taking into account the potential financial impact of a proposed transfer on the

multiemployer plan.

Plan rules authorizing asset transfers consistent

with the requirements of section 1412(c)(3) of

this title shall be considered to satisfy the requirements of this subsection.

(b) Exemption of de minimis transfers

The corporation shall prescribe regulations

which exempt de minimis transfers of assets

from the requirements of this part.

(c) Written reciprocity agreements

This part shall not apply to transfers of assets

pursuant to written reciprocity agreements, except to the extent provided in regulations prescribed by the corporation.

(Pub. L. 93–406, title IV, §4234, as added Pub. L.

96–364, title I, §104(2), Sept. 26, 1980, 94 Stat.

1247.)

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1415 of this title.