Merger

Pension Benefit Guaranty Corporation 75-7 May 9, 1975 RE FERENCE: [*1] 2 08 Mergers, Consolidations and other Transfers of Plan Assets101 5(l). (IRC § 414) Definitions and Special Rules. Mergers, Consolidations and Other Transfers of Plan Assets404 3(b)(8) Reportable Events. Mergers, Consolidations & other Transfers of Plan Assets OP INION: Th is is in res ponse to your letter to us concerning the merger of the * * * and * * * into the * * * This will also serveto co nfirm your recent telephone conversation with * * * of our office. The merg er of a single em ployer plan into a multiemployer plan does not require the approval of the Pension BenefitGu aranty Corporat ion ("PB GC"), though it is a report able event under Section 4043(b)(8) of the Act. It is so, as youhave been informed, that it is the posit ion of the PBGC that until the PBGC issues regulations relating to Section 208and Section 1015 of the Act, the constrai nts of those sections do not apply to the merg er of a single em ployer plan intoa multie mployer plan. However, I cal l your attention to the fact that Section 208 is in Title I of the Ac t, which is the responsibil ity of theDepartment of Labor to administer and its coun terpart, Section 1015, is in Title II of the Act, which is the responsibility[*2] of th e Internal Revenue Service to administer. Accordingly , any doubts you may hve relating to their portions ofthe Ac t should be addressed to them. Your lett er states that the * * * Fund is sponsored by the * * *, is a multiem ployer plan to which the Act refers inSecti on 208 and is contemplating a merg er with the * * * Pension Fund. As you can see f rom the above, that merger maymay be accompl ished without regard to the substantive limitation contained in Section 208. You have the obligati on,however, to notify this Corporation of the merger within 30 days after it has occurred. See Section 4043(b)(8) of theAct. W e trust this answers your inquir

Pension Benefit Guaranty Corporation 76-24 Februa ry 14, 1976 RE FERENCE: [*1] 2 08 Mergers, Consolidations and other Transfers of Plan Assets404 3(b)(8) Reportable Events. Mergers, Consolidations & other Transfers of Plan Assets OP INION: This is in r esponse to your recen t inquiry concerning the pension benefits of * * * which inq uiry was forwarded tothis Co rporation on * * * by the Labor-Management Services Administration of the Department of Labor. * * * i s a participant of the * * * Salari ed Pension Plan (hereinafter "Company Plan"), a single employer plan, which is awaiting merger into the (he reinafter "Union Plan"), a multiemployer plan. The delay in * * * pension benefits iscaused by the fact that the i nsurance comp any which administers the funds of the Company Plan will not transfer thosefunds to the Union Plan without the approval by this Corporation of the merger. Secti on 208 of t he Employee Retirement Income Security Act of 1974 (here inafter "Act") provides in pertinent part that two pension plans may not merge unles s each participant would be entitled to a pension benefit after merger equalor great er in value t han before the merger. The Act fu rther provides that the above requirement applies to multiemployerplans only to the extent determined by this [*2] Corporation. It is this Corporation's position that until it issues regulations relating to Act § 208, t he constraints of that sectiondo not apply to the merger of a single employer plan int o a multiemployer plan. Therefore, the proposed merger heredoe s not require the prior approval of this Corporation. If thi s Corporation had been previously advi sed of the proposed merger, the relevant parties would have beeninf ormed that approval by thi s Corporation was not necessary and the delay in the proposed merger could have been avoide d. Ho wever, the records of this Corporation indicate that it received no communicatio