Unfunded vested benefits allocable to employer in bona fide sale of assets of employer in arms-length transaction to unrelated party; maximum amount; determinative factors
If the liquidation or distribution value of the employer after the sale or exchange is— | The portion is— |
|---|---|
Not more than $5,000,000 | 30 percent of the amount. |
More than $5,000,000, but not more than $10,000,000 | $1,500,000, plus 35 percent of the amount in excess of $5,000,000. |
More than $10,000,000, but not more than $15,000,000 | $3,250,000, plus 40 percent of the amount in excess of $10,000,000. |
More than $15,000,000, but not more than $17,500,000 | $5,250,000, plus 45 percent of the amount in excess of $15,000,000. |
More than $17,500,000, but not more than $20,000,000 | $6,375,000, plus 50 percent of the amount in excess of $17,500,000. |
More than $20,000,000, but not more than $22,500,000 | $7,625,000, plus 60 percent of the amount in excess of $20,000,000. |
More than $22,500,000, but not more than $25,000,000 | $9,125,000, plus 70 percent of the amount in excess of $22,500,000. |
More than $25,000,000 | $10,875,000, plus 80 percent of the amount in excess of $25,000,000. |
Unfunded vested benefits allocable to insolvent employer undergoing liquidation or dissolution; maximum amount; determinative factors
Property not subject to enforcement of liability; precondition
section 522 of title 11To the extent that the withdrawal liability of an employer is attributable to his obligation to contribute to or under a plan as an individual (whether as a sole proprietor or as a member of a partnership), property which may be exempt from the estate under or under similar provisions of law, shall not be subject to enforcement of such liability.
Insolvency of employer; liquidation or dissolution value of employer
One or more withdrawals of employer attributable to same sale, liquidation, or dissolution
Pub. L. 93–406, title IV, § 4225Pub. L. 96–364, title I, § 104(2)94 Stat. 1243Pub. L. 109–280, title II, § 204(a)(1)120 Stat. 886(, as added , , ; amended , (2), , , 887.)
Editorial Notes
Amendments
Pub. L. 109–280, § 204(a)(2)2006—Subsec. (a)(1)(B). , amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “the unfunded vested benefits attributable to employees of the employer.”
Pub. L. 109–280, § 204(a)(1)Subsec. (a)(2). , added table and struck out former table which provided for a portion of: 30 percent of the amount if the liquidation or dissolution value of the employer after the sale or exchange is not more than $2,000,000; $600,000, plus 35 percent of the amount in excess of $2,000,000, if the employer’s liquidation or dissolution value is more than $2,000,000, but not more than $4,000,000; $1,300,000, plus 40 percent of the amount in excess of $4,000,000, if the employer’s liquidation or dissolution value is more than $4,000,000, but not more than $6,000,000; $2,100,000, plus 45 percent of the amount in excess of $6,000,000, if the employer’s liquidation or dissolution value is more than $6,000,000, but not more than $7,000,000; $2,550,000, plus 50 percent of the amount in excess of $7,000,000, if the employer’s liquidation or dissolution value is more than $7,000,000, but not more than $8,000,000; $3,050,000, plus 60 percent of the amount in excess of $8,000,000, if the employer’s liquidation or dissolution value is more than $8,000,000, but not more than $9,000,000; $3,650,000, plus 70 percent of the amount in excess of $9,000,000, if the employer’s liquidation or dissolution value is more than $9,000,000, but not more than $10,000,000; and $4,350,000, plus 80 percent of the amount in excess of $10,000,000, if the employer’s liquidation or dissolution value is more than $10,000,000.
Statutory Notes and Related Subsidiaries
Effective Date of 2006 Amendment
Pub. L. 109–280, title II, § 204(a)(3)120 Stat. 887