Overfunded DB seeks Underfunded DB for possible LTR

[Flyboyjohn]

I know a sale of an overfunded DB plan can be problematic but does anybody have an underfunded plan (preferably in Virginia or mid-Atlantic)that would like to talk?

Are there still "brokers" out there trying to do these deals?

Thanks

[Effen]

I believe the IRS killed these unless the mergers are for some other bonifide business reasons. I could find some cites and court cases if you need them.

I don't think anyone is still out shopping these mergers anymore.

[Peter Gulia]

Are we talking about a merger of the plans only, or also a merger of the business organizations that maintain the plans?

If it's about buying a business organization, isn't it possible that the proper business purpose doesn't necessarily relate to the nature of any acquired business? For example, employees of BNSF Railway, Dairy Queen, FlightSafety International, Fruit of the Loom, Government Employees Insurance Company, Helzberg Diamonds, Lubrizol, and NetJets all are employees of ONE employer.

If one were seeking to explain why a merger of business organizations is invalid as a sham, what facts would one look for?

[Guest Dave Peckham]

Hi Effen,

I, too, am considering a "strategic sale for overfunded plan." Could you please point me to the cites and court cases you mentioned?

[Effen]

Take a look at RR 2008-45.

Sorry, but I couldn't find the names of the court cases. I will keep digging and see if I can find the correspondence.