§1411 Mergers and transfers between multiemployer plans

Summary

Plan sponsors must follow rules before merging multiemployer pension plans or moving assets or debts between them. They have to tell the corporation at least 120 days before the change. No worker’s or beneficiary’s earned benefit can be cut by the merger or transfer. The merged plan’s benefits must not be likely to face suspension under section 1426. Each affected plan must have had an actuarial valuation done in the plan year before the change using the most recent data available, or another valuation that the corporation allows. If these rules are met, the corporation will treat the merger or transfer as allowed and not a violation. A plan that takes on liabilities becomes the successor plan for purposes of section 1322a(b)(2)(B). The corporation can help plan sponsors merge plans if, after consulting the Participant and Plan Sponsor Advocate, it thinks the transaction helps participants and won’t hurt others. Help can include training, technical help, mediation, communications, and aid with other agency requests. The corporation may give financial help (as defined in section 1431) to a merged plan to avoid or delay insolvency if at least one plan is in critical and declining status, the help should lower the corporation’s long-term loss and is necessary for solvency, the corporation certifies it won’t hurt its other obligations, and the money comes only from the basic benefits fund.