§ 1058 TITLE 29—LABOR Page 404

§ 1058. Mergers and consolidations of plans or

transfers of plan assets

A pension plan may not merge or consolidate

with, or transfer its assets or liabilities to, any

other plan after September 2, 1974, unless each

participant in the plan would (if the plan then

terminated) receive a benefit immediately after

the merger, consolidation, or transfer which is

equal to or greater than the benefit he would

have been entitled to receive immediately before the merger, consolidation, or transfer (if

the plan had then terminated). The preceding

sentence shall not apply to any transaction to

the extent that participants either before or

after the transaction are covered under a multiemployer plan to which subchapter III of this

chapter applies.

(Pub. L. 93–406, title I, §208, Sept. 2, 1974, 88 Stat.

865; Pub. L. 96–364, title IV, §402(b)(1), Sept. 26,

1980, 94 Stat. 1299.)

AMENDMENTS

1980—Pub. L. 96–364 substituted provisions respecting

applicability of preceding sentence to transactions

under a covered multiemployer plan to which subchapter III applies, for provisions relating to applicability of paragraph to a multiemployer plan only to extent determined by Corporation.

EFFECTIVE DATE OF 1980 AMENDMENT

Amendment by Pub. L. 96–364 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 1061, 1343, 1344

of this title.

§ 1059. Recordkeeping and reporting requirements

(a)(1) Except as provided by paragraph (2)

every employer shall, in accordance with regulations prescribed by the Secretary, maintain

records with respect to each of his employees

sufficient to determine the benefits due or which

may become due to such employees. The plan

administrator shall make a report, in such manner and at such time as may be provided in regulations prescribed by the Secretary, to each employee who is a participant under the plan and

who—

(A) requests such report, in such manner and

at such time as may be provided in such regulations,

(B) terminates his service with the employer, or

(C) has a 1-year break in service (as defined

in section 1053(b)(3)(A) of this title).

The employer shall furnish to the plan administrator the information necessary for the administrator to make the reports required by the preceding sentence. Not more than one report shall

be required under subparagraph (A) in any 12-

month period. Not more than one report shall be

required under subparagraph (C) with respect to

consecutive 1-year breaks in service. The report

required under this paragraph shall be sufficient

to inform the employee of his accrued benefits

under the plan and the percentage of such benefits which are nonforfeitable under the plan.

(2) If more than one employer adopts a plan,

each such employer shall, in accordance with

regulations prescribed by the Secretary, furnish

to the plan administrator the information necessary for the administrator to maintain the

records and make the reports required by paragraph (1). Such administrator shall maintain the

records and, to the extent provided under regulations prescribed by the Secretary, make the

reports, required by paragraph (1).

(b) If any person who is required, under subsection (a) of this section, to furnish information or maintain records for any plan year fails

to comply with such requirement, he shall pay

to the Secretary a civil penalty of $10 for each

employee with respect to whom such failure occurs, unless it is shown that such failure is due

to reasonable cause.

(Pub. L. 93–406, title I, §209, Sept. 2, 1974, 88 Stat.

865.)

REGULATIONS

Secretary authorized, effective Sept. 2, 1974, to promulgate regulations wherever provisions of this subchapter call for the promulgation of regulations, see

section 1031 of this title.

§ 1060. Multiple employer plans

(a) Plan maintained by more than one employer

Notwithstanding any other provision of this

part or part 3, the following provisions of this

subsection shall apply to a plan maintained by

more than one employer:

(1) Section 1052 of this title shall be applied

as if all employees of each of the employers

were employed by a single employer.

(2) Sections 1053 and 1054 of this title shall be

applied as if all such employers constituted a

single employer, except that the application of

any rules with respect to breaks in service

shall be made under regulations prescribed by

the Secretary.

(3) The minimum funding standard provided

by section 1082 of this title shall be determined as if all participants in the plan were

employed by a single employer.

(b) Maintenance of plan of predecessor employer

For purposes of this part and part 3—

(1) in any case in which the employer maintains a plan of a predecessor employer, service

for such predecessor shall be treated as service

for the employer, and

(2) in any case in which the employer maintains a plan which is not the plan maintained

by a predecessor employer, service for such

predecessor shall, to the extent provided in

regulations prescribed by the Secretary of the

Treasury, be treated as service for the employer.

(c) Plan maintained by controlled group of corporations

For purposes of sections 1052, 1053, and 1054 of

this title, all employees of all corporations

which are members of a controlled group of corporations (within the meaning of section 1563(a)

of title 26, determined without regard to section

1563(a)(4) and (e)(3)(C) of title 26) shall be treated

as employed by a single employer. With respect

to a plan adopted by more than one such cor-