Page:United States Statutes at Large Volume 94 Part 1.djvu/1298

 94 STAT. 1248

Employer's withdrawal liability amount, reduction. Ante, p. 1217.

Escrow payments.

PUBLIC LAW 96-364—SEPT. 26, 1980

"(i) fails to file such an appeal, or "(ii) the corporation, pursuant to such an appeal, fails to find that the new plan would suffer substantial financial harm as a result of the transfer described in the notice under paragraph (2)(B) within 180 days after the date on which the appeal is filed, then the plan sponsor of the old plan shall transfer the appropriate amount of assets and liabilities to the new plan. "(c) If the plan sponsor of the old plan transfers the appropriate amount of assets and liabilities under this section to the new plan, then the amount of the employer's withdrawal liability (as determined under section 4201(b) without regard to such transfer and this section) with respect to the old plan shall be reduced by the amount by which— "(1) the value of the unfunded vested benefits allocable to the employer which were transferred by the plan sponsor of the old plan to the new plan, exceeds "(2) the value of the assets transferred, "(d) In any case in which there is a complete or partial withdrawal described in subsection (a), if— "(1) the new plan files an appeal with the corporation under subsection (b)(3), and "(2) the employer is required by section 4219 to begin making payments of withdrawal liability before the earlier of— "(A) the date on which the corporation finds that the new plan would not suffer substantial financial harm as a result of the transfer, or "(B) the last day of the 180-day period beginning on the date on which the new plan files its appeal, then the employer shall make such payments into an escrow held by a bank or similar financial institution satisfactory to the old plan. If the transfer is made, the amounts paid into the escrow shall be returned to the employer. If the transfer is not made, the amounts paid into the escrow shall be paid to the old plan and credited against the employer's withdrawal liability. "(e)(1) Notwithstanding subsection (b), the plan sponsor shall not transfer any assets to the new plan if— "(A) the old plan is in reorganization (within the meaning of section 4241(a)), or "(B) the transfer of assets would cause the old plan to go into reorganization (within the meaning of section 4241(a)). "(2) In any case in which a transfer of assets from the old plan to the new plan is prohibited by paragraph (1), the plan sponsor of the old plan shall transfer— "(A) all nonforfeitable benefits described in subsection (b)(2), if the value of such benefits does not exceed the withdrawal liability of the employer with respect to such withdrawal, or "(B) such nonforfeitable benefits having a value equal to the withdrawal liability of the employer, if the value of such benefits exceeds the withdrawal liability of the employer. "(f)(1) Notwithstanding subsections Ob) and (e), the plan sponsors of the old plan and the new plan may agree to a transfer of assets and liabilities that complies with sections 4231 and 4234, rather than this section, except that the employer's liability with respect to the withdrawal from the old plan shall be reduced under subsection (c) as if assets and liabilities had been transferred in accordance with this section.

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