Opinion ID: 3011172
Heading Depth: 2
Heading Rank: 2

Heading: Complete Termination of the Plan and

Text: Application of S 1344 We now turn to the application of 29 U.S.C. S 1344 to a complete termination of the Plan. Appellants assert that, 10 even if no partial termination occurred, they were entitled to share in the surplus when Conrail completely terminated the Plan in May 1997. They argue that S 1344(d) governs the distribution of residual assets when a plan is terminated and that, pursuant to its language, former employees should share in the surplus. Appellants point out that ERISA directs that a plan termination be conducted according to the procedure set forth in S 1344. Section 1103(d) provides that [u]pon termination of a pension plan . . . the assets of the plan shall be allocated in accordance with the provisions of section 1344 . . .. 29 U.S.C. S 1103(d)(1). Section 1103(d)(2) further provides that a plan's assets shall be distributed in accordance with the terms of the plan. Section 1344(d) regulates the distribution of residual assets to the employer after the satisfaction of all liabilities to plan participants. It reads in part: (1) Subject to paragraph (3), any residual assets of a single-employer plan may be distributed to the employer if-- (A) all liabilities of the plan to participants and their beneficiaries have been satisfied, (B) the distribution does not contravene any provision of law, and (C) the plan provides for such distribution in these circumstances.