We have a client who is a large steel mill - Company A. They currently have approx. 15 companies, which all but one is in .....................................

[Guest jhilliard]

company A 401(k). The company (Company B) that is not in the plan has been excluded and has their own plan. Company B is a union shop.

We found out today that company B is going into union negotiations and they wanted to know if there was a way for them to pull out of the (global) union plan and "roll" those proceeds into the company A plan.

The way I see it there is not a distributable event, so what transaction allows this to take place (if indeed it can)?

I am not sure what other specifics to furnish so I will watch the post and answer questions as they arise.

Thanks to all who have or will help me on this one!

Jim

[mbozek]

How about a trustee to trustee transfer because of a spinoff of assets if the union will allow the spinoff of assets from its plan? Need to check with labor counsel to see if this is doable.

[GBurns]

I would have thought that the plan would be subject to the CBA. Unless the CBA allows for a change, no changes can usually be made without at least agreement by the Union.

[Guest jhilliard]

Thanks for the replies. I am not sure what the Union will have to say about this. As for the CBA I think they have some wiggle room there.

I will let you know what happens.

Thanks, as always you guys (and gals) come through!

[david rigby]

Yeah, what GBurns said.

IMHO, it would be surprising if the Union agrees to a spinoff, but go ahead and ask.