Page:United States Statutes at Large Volume 94 Part 1.djvu/1294

 94 STAT. 1244 Insolvency.

PUBLIC LAW 96-364—SEPT. 26, 1980

"(1) an employer is insolvent if the liabilities of the employer, including withdrawal liability under the plan (determined without regard to subsection Q))), exceed the assets of the employer (determined as of the commencement of the liquidation or dissolution), and "(2) the liquidation or dissolution value of the employer shall be determined without regard to such withdrawal liability. "(e) In the case of one or more withdrawals of an employer attributable to the same sale, liquidation, or dissolution, under regulations prescribed by the corporation— "(1) all such withdrawals shall be treated as a single withdrawal for the purpose of applying this section, and "(2) the withdrawal liability of the employer to each plan shall be an amount which bears the same ratio to the present value of the withdrawal liability payments to all plans (after the application of the preceding provisions of this section) as the withdrawal liability of the employer to such plan (determined without regard to this section) bears to the withdrawal liability of the employer to all such plans (determined without regard to this section). "PART 2—MERGER OR TRANSFER OF PLAN ASSETS OR LIABILITIES MERGERS AND TRANSFERS BETWEEN MULTIEMPLOYER PLANS

29 USC 1411.

Conditions.

29 USC 1106. Successor plan. Ante, p. 1210.

"SEC. 4231. (a) Unless otherwise provided in regulations prescribed by the corporation, a plan sponsor may not cause a multiemployer plan to merge with one or more multiemployer plans, or engage in a transfer of assets and liabilities to or from another multiemployer plan, unless such merger or transfer satisfies the requirements of subsection (b). "(b) A merger or transfer satisfies the requirements of this section if— "(1) in accordance with regulations of the corporation, the plan sponsor of a multiemployer plan notifies the corporation of a merger with or transfer of plan assets or liabilities to another multiemployer plan at least 120 days before the effective date of the merger or transfer; "(2) no participant's or beneficiary's accrued benefit will be lower immediately after the effective date of the merger or transfer than the benefit immediately before that date; "(3) the benefits of participants and beneficiaries are not reasonably expected to be subject to suspension under section 4245; 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) 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 406(a) or section 406(b)(2) if the corporation determines that the merger or transfer otherwise satisfies the requirements of this section. "(d) A plan to which liabilities are transferred under this section is a succcssor plan for purposes of section 4022A(b)(2)(B).

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