Title 29 — LaborRelease 119-73not60

§1058 Mergers and Consolidations of Plans or Transfers of Plan Assets

Title 29 › Chapter 18— EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM › Subchapter I— PROTECTION OF EMPLOYEE BENEFIT RIGHTS › Subtitle Subtitle B— Regulatory Provisions › Part 2— participation and vesting › § 1058

Last updated Apr 5, 2026|Official source

Summary

Pension plans may not merge with or transfer their assets or liabilities to another plan after September 2, 1974 unless no participant would lose benefits. The test compares the benefit after the change to what the person would have gotten before, each measured as if the plan had ended; the rule does not apply to people covered before or after by a multiemployer plan under subchapter III.

Full Legal Text

Title 29, §1058

Labor — Source: USLM XML via OLRC

A pension plan may not merge or consolidate with, or transfer its assets or liabilities to, any other plan after September 2, 1974, unless each participant in the plan would (if the plan then terminated) receive a benefit immediately after the merger, consolidation, or transfer which is equal to or greater than the benefit he would have been entitled to receive immediately before the merger, consolidation, or transfer (if the plan had then terminated). The preceding sentence shall not apply to any transaction to the extent that participants either before or after the transaction are covered under a multiemployer plan to which subchapter III of this chapter applies.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

1980—Pub. L. 96–364 substituted provisions respecting applicability of preceding sentence to transactions under a covered multiemployer plan to which subchapter III applies, for provisions relating to applicability of paragraph to a multiemployer plan only to extent determined by Corporation.

Statutory Notes and Related Subsidiaries

Effective Date

of 1980 AmendmentAmendment by Pub. L. 96–364 effective Sept. 26, 1980, except as specifically provided, see section 1461(e) of this title.

Reference

Citations & Metadata

Citation

29 U.S.C. § 1058

Title 29 — Labor

Last Updated

Apr 5, 2026

Release point: 119-73not60