Successor liability

Pension Benefit Guaranty Corporation 85-8 April 2, 1985 REFERENCE: [*1] 4043(b) Reportable Event. Definition of Reportable Event 4043(b)(8) Reportable Events. Mergers, Consolidations & other Transfers of Plan Assets 29 CFR 2615 Reporting & Notification Requirements for Reportable Events 4062(b) Liability of Employer in Single Employer Plans. Amount of Employer Liability 4062(e). Liability of Employer in Single Employer Plans. Closing of Facility Affecting More Than 20% of Plan Participants 4064 Liability of Employers in Multiple Employer and Multiemployer Plans OPINION: This is in response to your inquiry concerning the effect of certain provisions of the Employee Retirement Income Security Act ("ERISA") as applied to the transactions described below. As you have represented the facts, upon receipt of Internal Revenue Service approval, * * * Corporation * * * will spin-off its manufacturing subsidiaries, so that they will no longer be a part of the * * * controlled group. This will be done by creating a new corporation ("New Corporation"), which will act as a holding company for the stock of the spun-off * * * subsidiaries. * * * is a publicly owned corporation whose stock is widely held. * * * stockholders will receive shares in New Corporation equal to [*2] the number of * * * shares they own. * * * sponsors a defined benefit pension plan ("* * * Plan") for most of the salaried employees and a number of hourly employees in the controlled group comprised of * * *, its manufacturing subs idiaries, and certain other subsidiaries. * * * Plan will have approximately 2,150 participants immediately prior to the spin-o ff, and approximately 1,984 immediately after the spin-off. The employees of the spun-off subsidiaries who participated in the * * * Plan will enter the New Corporation Plan, a plan newly established by New Corporation, which will assume the accrued liability to such employees under the * * * Plan. T