---
kind: "section"
citation: "29 C.F.R. § 4211.31"
title: "29"
number: "4211.31"
heading: "Allocation of unfunded vested benefits following the merger of plans."
url: "https://uscodex.org/cfr/29/4211.31"
---

# §4211.31. Allocation of unfunded vested benefits following the merger of plans.

- (a) **General rule.** Except as provided in [paragraphs (b) through (d)](#b..d) of this section, when two or more multiemployer plans merge, the merged plan shall adopt one of the statutory allocation methods, in accordance with [subpart B](/cfr/29/subpartB.md) of this part, or one of the allocation methods prescribed in [§§ 4211.32 through 4211.35](/cfr/29/4211.32..4211.35.md), and the method adopted shall apply to all employer withdrawals occurring after the initial plan year. Alternatively, a merged plan may adopt its own allocation method in accordance with [subpart C](/cfr/29/subpartC.md) of this part. If a merged plan fails to adopt an allocation method pursuant to this subpart or subpart [B](/cfr/29/subpartB.md) or [C](/cfr/29/subpartC.md), it shall use the presumptive allocation method prescribed in [§ 4211.32](/cfr/29/4211.32.md). In addition, a merged plan may adopt any of the modifications prescribed in [§ 4211.36](/cfr/29/4211.36.md) or in [subpart B](/cfr/29/subpartB.md) of this part.
- (b) **Construction plans.** Except as provided in the next sentence, a merged plan that primarily covers employees in the building and construction industry shall use the presumptive allocation method prescribed in [§ 4211.32](/cfr/29/4211.32.md). However, the plan may, with respect to employers that are not construction industry employers within the meaning of [section 4203(b)(1)(A)](/cfr/29/4203.md?p=b-1-A) of ERISA, adopt, by amendment, one of the alternative methods prescribed in [§§ 4211.33 through 4211.35](/cfr/29/4211.33..4211.35.md) or any other allocation method. Any such amendment shall be adopted in accordance with [subpart C](/cfr/29/subpartC.md) of this part. A construction plan may, without the PBGC's approval, adopt by amendment any of the modifications set forth in [§ 4211.36](/cfr/29/4211.36.md) or any of the modifications to the statutory presumptive method set forth in [subpart B](/cfr/29/subpartB.md) of this part.
- (c) **Section 404(c) plans.** A merged plan that is a continuation of a plan described in section 404(c) of the Code shall use the rolling-5 allocation method prescribed in [§ 4211.34](/cfr/29/4211.34.md), unless the plan, by amendment, adopts an alternative method. The plan may adopt one of the statutory allocation methods or one of the allocation methods set forth in [§§ 4211.32 through 4211.35](/cfr/29/4211.32..4211.35.md) without PBGC approval; adoption of any other allocation method is subject to PBGC approval under [subpart B](/cfr/29/subpartB.md) of this plan. The plan may, without the PBGC's approval, adopt by amendment any of the modifications set forth in [§ 4211.36](/cfr/29/4211.36.md) or in [subpart B](/cfr/29/subpartB.md) of this part.
- (d) **Withdrawals before the end of the initial plan year.** For employer withdrawals after the effective date of a merger and prior to the end of the initial plan year, the amount of unfunded vested benefits allocable to a withdrawing employer shall be determined in accordance with [§ 4211.37](/cfr/29/4211.37.md).

## Notes

### Amendments

[61 FR 34097, July 1, 1996, as amended at 86 FR 1275, Jan. 8, 2021; 88 FR 76664, Nov. 7, 2023]

### Authority

Authority: 29 U.S.C. 1302(b)(3); 1391(c)(1), (c)(2)(D), (c)(5)(A), (c)(5)(B), (c)(5)(D), and (f).

### Source

Source: 61 FR 34097, July 1, 1996, unless otherwise noted.

### Amendments

[61 FR 34097, July 1, 1996, as amended at 86 FR 1275, Jan. 8, 2021; 88 FR 76664, Nov. 7, 2023]