Sec. 221. Provisions relating to plan mergers and consolidations
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Section 4231(c) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1411(c) ) is amended— by striking section 406(a) or section 406(b)(2) and inserting section 404, 406(a), or 406(b)(2) , and by adding at the end the following: The corporation shall prescribe safe harbor provisions whereby a merger of multiemployer plans or the transfer of assets or liabilities between multiemployer plans, where one of the plans is in critical and declining status pursuant to section 305 and one is in stable or unrestricted status pursuant to such section, shall be deemed to satisfy the requirements of this section.
Notwithstanding the preceding sentences, the implementation of such merger or transfer shall be subject to the rules of section 404. . Section 4231 of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1411 ) is amended by adding at the end the following new subsection: The corporation shall prescribe the methods and conditions under which employers contributing to plans which are in stable or unrestricted status under section 305 when such plan merges with a plan in declining status under such section will not be allocated the unfunded vested benefits of the plan in declining status (as determined immediately before the merger). .
The amendment made by this section shall apply to plan mergers after December 31, 2021.
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Sec. 221
Provisions relating to plan mergers and consolidations
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