---
kind: "section"
citation: "29 C.F.R. § 4231.3"
title: "29"
number: "4231.3"
heading: "Requirements for mergers and transfers."
url: "https://uscodex.org/cfr/29/4231.3"
---

# §4231.3. Requirements for mergers and transfers.

- (a) **General requirements.** A plan sponsor may not cause a multiemployer plan to merge with one or more multiemployer plans or transfer assets or liabilities to or from another multiemployer plan unless the merger or transfer satisfies all of the following requirements:
  - (1) No participant's or beneficiary's accrued benefit is lower immediately after the effective date of the merger or transfer than the benefit immediately before that date (except as provided under [§ 4231.4(b)](/cfr/29/4231.4.md?p=b)).
  - (2) Actuarial valuations of the plans that existed before the merger or transfer have been performed in accordance with [§ 4231.5](/cfr/29/4231.5.md).
  - (3) **For each plan that exists after the transaction, an enrolled actuary—**
    - (i) Determines that the plan meets the applicable plan solvency requirement set forth in [§ 4231.6](/cfr/29/4231.6.md); or
    - (ii) Otherwise demonstrates that benefits under the plan are not reasonably expected to be subject to suspension under [section 4245](/cfr/29/4245.md) of ERISA.
  - (4) The plan sponsor notifies PBGC of the merger or transfer in accordance with §§ [4231.8](/cfr/29/4231.8.md) and [4231.9](/cfr/29/4231.9.md).
- (b) **Compliance determination.** If a plan sponsor requests a determination that a merger or transfer that may otherwise be prohibited by section [406(a)](/cfr/29/406.md?p=a) or [(b)(2)](/cfr/29/406.md?p=b-2) of ERISA satisfies the requirements of [section 4231](/cfr/29/4231.md) of ERISA, the plan sponsor must submit the information described in [§ 4231.10](/cfr/29/4231.10.md) in addition to the information required by [§ 4231.9](/cfr/29/4231.9.md). PBGC may request additional information if necessary to determine whether a merger or transfer complies with the requirements of [section 4231](/cfr/29/4231.md) and [subpart A](/cfr/29/subpartA.md) of this part. Plan sponsors are not required to request a compliance determination. Under [section 4231(c)](/cfr/29/4231.md?p=c) of ERISA, if PBGC determines that the merger or transfer complies with [section 4231](/cfr/29/4231.md) of ERISA and [subpart A](/cfr/29/subpartA.md) of this part, the merger or transfer will not constitute a violation of the prohibited transaction provisions of section [406(a)](/cfr/29/406.md?p=a) and [(b)(2)](/cfr/29/406.md?p=b-2) of ERISA.
- (c) **Certified change in bargaining representative.** Transfers of assets and liabilities pursuant to a change of collective bargaining representative certified under the Labor-Management Relations Act of 1947 or the Railway Labor Act, as amended, are governed by [section 4235](/cfr/29/4235.md) of ERISA. Plan sponsors involved in such transfers are not required to comply with [subpart A](/cfr/29/subpartA.md) of this part. However, under [section 4235(f)(1)](/cfr/29/4235.md?p=f-1) of ERISA, the plan sponsors of the plans involved in the transfer may agree to a transfer that complies with sections [4231](/cfr/29/4231.md) and [4234](/cfr/29/4234.md) of ERISA. Plan sponsors that elect to comply with sections [4231](/cfr/29/4231.md) and [4234](/cfr/29/4234.md) of ERISA must comply with the rules in [subpart A](/cfr/29/subpartA.md) of this part.
- (d) **Informal consultation.** A plan sponsor may contact PBGC on an informal basis to discuss a potential merger or transfer.

## Notes

### Authority

Authority: 29 U.S.C. 1302(b)(3)

### Source

Source: 83 FR 46653, Sept. 14, 2018, unless otherwise noted.