§ 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.
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.