§ 1369. Treatment of transactions to evade liability; effect of corporate reorganization

399 words·~2 min read·/usc/title-29/section-1369

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(a)Treatment of transactions to evade liability If a principal purpose of any person in entering into any transaction is to evade liability to which such person would be subject under this subtitle and the transaction becomes effective within five years before the termination date of the termination on which such liability would be based, then such person and the members of such person’s controlled group (determined as of the termination date) shall be subject to liability under this subtitle in connection with such termination as if such person were a contributing sponsor of the terminated plan as of the termination date. This subsection shall not cause any person to be liable under this subtitle in connection with such plan termination for any increases or improvements in the benefits provided under the plan which are adopted after the date on which the transaction referred to in the preceding sentence becomes effective.

(b)Effect of corporate reorganization For purposes of this subtitle, the following rules apply in the case of certain corporate reorganizations:

(1)Change of identity, form, etc. If a person ceases to exist by reason of a reorganization which involves a mere change in identity, form, or place of organization, however effected, a successor corporation resulting from such reorganization shall be treated as the person to whom this subtitle applies.

(2)Liquidation into parent corporation If a person ceases to exist by reason of liquidation into a parent corporation, the parent corporation shall be treated as the person to whom this subtitle applies.

(3)Merger, consolidation, or division If a person ceases to exist by reason of a merger, consolidation, or division, the successor corporation or corporations shall be treated as the person to whom this subtitle applies.

(Pub. L. 93–406, title IV, § 4069, as added Pub. L. 99–272, title XI, § 11013(a), Apr. 7, 1986, 100 Stat. 260.)

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U.S. Code

§ 1398
Withdrawal not to occur because of change in business form or suspension of contributions during labor dispute

statutes-at-large

Public Law 99–272
To provide for reconciliation pursuant to section 2 of the first concurrent resolution on the budget for fiscal year 1986 (S

Traces to 1 document

U.S. Code

Termination of single-employer plans
§ 1341

6 references not yet in our index

Pub. L. 93–406, title IV, § 4069
Pub. L. 99–272, title XI, § 11013(a)
100 Stat. 260
Pub. L. 99–272, title XI, § 11013(b)
100 Stat. 261
section 11019 of Pub. L. 99–272

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cites case law

§ 1369

Treatment of transactions to evade liability; effect of corporate reorganization

Stat.×2

U.S.C.×2

U.S.C.§ 1341

Pub. L.Pub. L. 93–406, title IV, § 4069

Pub. L.Pub. L. 99–272, title XI, § 11013(a)

Stat.100 Stat. 260

Pub. L.Pub. L. 99–272, title XI, § 11013(b)

Stat.100 Stat. 261

Cites 7 · showing 6Cited by 4 across 2 sources