Page:United States Statutes at Large Volume 90 Part 1.djvu/417

 PUBLIC LAW 9 4 - 2 6 7 — A P R. 15, 1976

90 STAT. 367

means of terminating the parent-subsidiary or controlled group relationship of the employer corporation with the parent corporation or controlled group, or " ( i i) A payment of the balance to the credit of an employee of a corporation (hereinafter referred to as the acquiring corporation) in connection with the sale or other transfer to the acquiring corporation of all or substantially all of the assets used by the previous employer of the employee (hereinafter referred to as the selling corporation) in a trade or business conducted by the selling corporation, shall be treated as a payment or distribution on account of the the termination of the plan with respect to such employee if the employees of the employer corporation or the acquiring corporation (whichever applies) are not active participants in such plan a t the time of such payment or distribution. For purposes of this subparagraph, in no event shall a payment or distribution be deemed to be in accordance with a sale or other transfer of assets, or a liquidation, sale, or other means of terminating such parent-subsidiary or controlled group relationship, if such payment or distribution is made later than the end of the second calendar year after the calendar year in which occurs such sale or other transfer of assets, or such liquidation, sale, or other means of term i n a t i n g such parent-subsidiary or controlled group relationship.". (c)

CONFORMING AMENDMENTS. —

(1) Section 401(a) of such Code (relating to requirements for qualification) is amended by a d d i n g after paragraph (19) the following: " (20) A t r u s t forming part of a pension plan shall not be treated as failing to constitute a qualified trust under this section merely because the pension plan of which such t r u s t is a part makes a payment or distribution described in section 402(a)(5)(A)(i) or 403 (a)(4)(A)(i). This paragraph shall not apply to a defined benefit plan unless the employer maintaining such plan files a notice with the Pension Benefit G u a r a n t y Corporation (at the time and in the manner prescribed by the Pension Benefit G u a r a n t y Corporation) notifying the Corporation of such payment or distribution and the Corporation has approved such payment or distribution or, within 90 days after the date on which such notice was filed, has failed to disapprove such payment or distribution.". (2) The last sentence of section 401(a) of such Code is amended by striking out " and ( 1 9) " and inserting in lieu thereof " (19), and (20)". (3) Section 404(a)(2) of such Code (relating to employee annuities) is amended by striking out " and ( 1 9) " and inserting in lieu thereof ", (19), and (20)". (4) Section 805(d)(1)(C) of such Code (relating to pension plan reserves) is amended by striking out " and ( 1 9) " and inserting in lieu thereof " (19), and ( 2 0) ". (d)

TRANSITIONAL RULES. —

(1) IN GENERAL. (A)

PERIOD FOR ROLLOVER CONTRIBUTION.—In the case of a

payment described in section 4 0 2 (a)(5)(A) (other than a payment described in section 402(a)(5)(A) as in effect on the day before the date of the enactment of this Act) or section 4 0 3 (a)(4)(A) (other than a payment described in

89-194 O—78—pt. 1

27

Qualification requirements. 26 USC 401.

Ante, p. 365. Ante, p. 366.

26 USC 404. 26 USC 805. 26 USC 402 note.

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