Page:United States Statutes at Large Volume 94 Part 1.djvu/1293

 PUBLIC LAW 96-364—SEPT. 26, 1980

94 STAT. 1243

withdrawal liability if such rules are consistent with this Act and with such regulations as may be prescribed by the corporation. "LIMITATION ON WITHDRAWAL LIABILITY

"SEC. 4225. (a)(1) In the case of bona fide sale of all or substantially 29 USC 1405. all of the employer's assets in an arm's-length transaction to an unrelated party (within the meaning of section 4204(d)), the unfunded Ante, p. 1220. vested benefits allocable to an employer (after the application of all sections of this part having a lower number designation than this section), other than an employer undergoing reorganization under title 11, United States Code, or similar provisions of State law, shall n use loi. 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 $600,000, plus 35 percent of the amount $4,000,000. in excess of $2,000,000. More than $4,000,000, but not more than $1,300,000, plus 40 percent of the $6,000,000. amount in excess of $4,000,000. More than $6,000,000, but not more than $2,100,000, plus 45 percent of the $7,000,000. amount in excess of $6,000,000. More than $7,000,000, but not more than $2,550,000, plus 50 percent of the $8,000,000. amount in excess of $7,000,000. More than $8,000,000, but not more than $3,050,000, plus 60 percent of the $9,000,000. amount in excess of $8,000,000. More than $9,000,000, but not more than $3,650,000, plus 70 percent of the $10,000,000. 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) In the case of an insolvent employer undergoing liquidation or insolvent dissolutipn, the unfunded vested benefits allocable to that employer 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) 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, United States Code, or under similar provisions of law, shall not be subject to enforcement of such liability. "(d) For purposes of this section—

i;

�