Page 563 TITLE 29—LABOR § 1411

or similar provisions of State law, shall not exceed the greater of—

(A) a portion (determined under paragraph

(2)) of the liquidation or dissolution value of

the employer (determined after the sale or exchange of such assets), or

(B) the unfunded vested benefits attributable

to employees of the employer.

(2) For purposes of paragraph (1), the portion

shall be determined in accordance with the following table:

If the liquidation or

dissolution value of the

employer after the sale

or exchange is— The portion is—

Not more than $2,000,000 .... 30 percent of the amount.

More than $2,000,000, but

not more than $4,000,000.

$600,000, plus 35 percent of

the amount in excess of

$2,000,000.

More than $4,000,000, but

not more than $6,000,000.

$1,300,000, plus 40 percent

of the amount in excess

of $4,000,000.

More than $6,000,000, but

not more than $7,000,000.

$2,100,000, plus 45 percent

of the amount in excess

of $6,000,000.

More than $7,000,000, but

not more than $8,000,000.

$2,550,000, plus 50 percent

of the amount in excess

of $7,000,000.

More than $8,000,000, but

not more than $9,000,000.

$3,050,000, plus 60 percent

of the amount in excess

of $8,000,000.

More than $9,000,000, but

not more than $10,000,000.

$3,650,000, plus 70 percent

of the amount in excess

of $9,000,000.

More than $10,000,000 ......... $4,350,000, plus 80 percent

of the amount in excess

of $10,000,000.

(b) Unfunded vested benefits allocable to insolvent employer undergoing liquidation or dissolution; maximum amount; determinative

factors

In the case of an insolvent employer undergoing liquidation or dissolution, the unfunded

vested benefits allocable to that employer shall

not exceed an amount equal to the sum of—

(1) 50 percent of the unfunded vested benefits

allocable to the employer (determined without

regard to this section), and

(2) that portion of 50 percent of the unfunded

vested benefits allocable to the employer (as

determined under paragraph (1)) which does

not exceed the liquidation or dissolution value

of the employer determined—

(A) as of the commencement of liquidation

or dissolution, and

(B) after reducing the liquidation or dissolution value of the employer by the

amount determined under paragraph (1).

(c) Property not subject to enforcement of liability; precondition

To the extent that the withdrawal liability of

an employer is attributable to his obligation to

contribute to or under a plan as an individual

(whether as a sole proprietor or as a member of

a partnership), property which may be exempt

from the estate under section 522 of title 11 or

under similar provisions of law, shall not be subject to enforcement of such liability.

(d) Insolvency of employer; liquidation or dissolution value of employer

For purposes of this section—

(1) an employer is insolvent if the liabilities

of the employer, including withdrawal liability under the plan (determined without regard

to subsection (b) of this section), exceed the

assets of the employer (determined as of the

commencement of the liquidation or dissolution), and

(2) the liquidation or dissolution value of the

employer shall be determined without regard

to such withdrawal liability.

(e) One or more withdrawals of employer attributable to same sale, liquidation, or dissolution

In the case of one or more withdrawals of an

employer attributable to the same sale, liquidation, or dissolution, under regulations prescribed by the corporation—

(1) all such withdrawals shall be treated as a

single withdrawal for the purpose of applying

this section, and

(2) the withdrawal liability of the employer

to each plan shall be an amount which bears

the same ratio to the present value of the

withdrawal liability payments to all plans

(after the application of the preceding provisions of this section) as the withdrawal liability of the employer to such plan (determined

without regard to this section) bears to the

withdrawal liability of the employer to all

such plans (determined without regard to this

section).

(Pub. L. 93–406, title IV, §4225, as added Pub. L.

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

1243.)

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1381, 1386, 1391,

1401, 1403 of this title.

PART 2—MERGER OR TRANSFER OF PLAN ASSETS

OR LIABILITIES

§ 1411. Mergers and transfers between multiemployer plans

(a) Authority of plan sponsor

Unless otherwise provided in regulations prescribed by the corporation, a plan sponsor may

not cause a multiemployer plan to merge with

one or more multiemployer plans, or engage in

a transfer of assets and liabilities to or from another multiemployer plan, unless such merger

or transfer satisfies the requirements of subsection (b) of this section.

(b) Criteria

A merger or transfer satisfies the requirements of this section if—

(1) in accordance with regulations of the corporation, the plan sponsor of a multiemployer

plan notifies the corporation of a merger with

or transfer of plan assets or liabilities to another multiemployer plan at least 120 days before the effective date of the merger or transfer;

(2) no participant’s or beneficiary’s accrued

benefit will be lower immediately after the effective date of the merger or transfer than the

benefit immediately before that date;

(3) the benefits of participants and beneficiaries are not reasonably expected to be
§ 1412 TITLE 29—LABOR Page 564

subject to suspension under section 1426 of this

title; and

(4) an actuarial valuation of the assets and

liabilities of each of the affected plans has

been performed during the plan year preceding

the effective date of the merger or transfer,

based upon the most recent data available as

of the day before the start of that plan year,

or other valuation of such assets and liabilities performed under such standards and procedures as the corporation may prescribe by

regulation.

(c) Actions not deemed violation of section

1106(a) or (b)(2) of this title

The merger of multiemployer plans or the

transfer of assets or liabilities between multiemployer plans, shall be deemed not to constitute a violation of the provisions of section

1106(a) of this title or section 1106(b)(2) of this

title if the corporation determines that the

merger or transfer otherwise satisfies the requirements of this section.

(d) Nature of plan to which liabilities are transferred

A plan to which liabilities are transferred

under this section is a successor plan for purposes of section 1322a(b)(2)(B) of this title.

(Pub. L. 93–406, title IV, §4231, as added Pub. L.

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

1244.)

EFFECTIVE DATE

Part effective Sept. 26, 1980, except as specifically

provided, see section 1461(e) of this title.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1108, 1415 of this

title; title 26 section 4975.

§ 1412. Transfers between a multiemployer plan

and a single-employer plan

(a) General authority

A transfer of assets or liabilities between, or a

merger of, a multiemployer plan and a singleemployer plan shall satisfy the requirements of

this section.

(b) Accrued benefit of participant or beneficiary

not lower immediately after effective date of

transfer or merger

No accrued benefit of a participant or beneficiary may be lower immediately after the effective date of a transfer or merger described in

subsection (a) of this section than the benefit

immediately before that date.

(c) Liability of multiemployer plan to corporation where single-employer plan terminates

within 60 months after effective date of

transfer; amount of liability, exemption, etc.

(1) Except as provided in paragraphs (2) and

(3), a multiemployer plan which transfers liabilities to a single-employer plan shall be liable to

the corporation if the single-employer plan terminates within 60 months after the effective

date of the transfer. The amount of liability

shall be the lesser of—

(A) the amount of the plan asset insufficiency of the terminated single-employer plan,

less 30 percent of the net worth of the employer who maintained the single-employer

plan, determined in accordance with section

1362 or 1364 this title, or

(B) the value, on the effective date of the

transfer, of the unfunded benefits transferred

to the single-employer plan which are guaranteed under section 1322 of this title.

(2) A multiemployer plan shall be liable to the

corporation as provided in paragraph (1) unless,

within 180 days after the corporation receives an

application (together with such information as

the corporation may reasonably require for purposes of such application) from the multiemployer plan sponsor for a determination under

this paragraph—

(A) the corporation determines that the interests of the plan participants and beneficiaries and of the corporation are adequately

protected, or

(B) fails to make any determination regarding the adequacy with which such interests

are protected with respect to such transfer of

liabilities.

If, after the receipt of such application, the corporation requests from the plan sponsor additional information necessary for the determination, the running of the 180-day period shall be

suspended from the date of such request until

the receipt by the corporation of the additional

information requested. The corporation may by

regulation prescribe procedures and standards

for the issuance of determinations under this

paragraph. This paragraph shall not apply to

any application submitted less than 180 days

after September 26, 1980.

(3) A multiemployer plan shall not be liable to

the corporation as provided in paragraph (1) in

the case of a transfer from the multiemployer

plan to a single-employer plan of liabilities

which accrued under a single-employer plan

which merged with the multiemployer plan, if,

the value of liabilities transferred to the singleemployer plan does not exceed the value of the

liabilities for benefits which accrued before the

merger, and the value of the assets transferred

to the single-employer plan is substantially

equal to the value of the assets which would

have been in the single-employer plan if the employer had maintained and funded it as a separate plan under which no benefits accrued after

the date of the merger.

(4) The corporation may make equitable arrangements with multiemployer plans which are

liable under this subsection for satisfaction of

their liability.

(d) Guarantee of benefits under single-employer

plan

Benefits under a single-employer plan to

which liabilities are transferred in accordance

with this section are guaranteed under section

1322 of this title to the extent provided in that

section as of the effective date of the transfer

and the plan is a successor plan.

(e) Transfer of liabilities by multiemployer plan

to single-employer plan

(1) Except as provided in paragraph (2), a

multiemployer plan may not transfer liabilities

to a single-employer plan unless the plan sponsor of the plan to which the liabilities would be

transferred agrees to the transfer.