Needed Changes in Benefits Law or regulations covering Mergers and Acq

[BeckyMiller]

I am working to get the ERISA Advisory Council to consider the topic this year of simplifying the law governing plan mergers in acquisitions.

I would like to hear from the users on 2 matters:

1. Where does the current guidance or absence of guidance provide you or your benefit plan clients with extreme problems in accomplishing the reasonable task of sponsoring cost-effective retirement or other benefit plans in the case of a business combination or separation?

2. Do you know of any plan sponsors who would be good witnesses to this issue?

Thanks in advance.

[This message has been edited by BeckyMiller (edited 03-14-2000).]

[Linda]

The IRS supposedly already knows this and is working on it but...how about 411(d)(6)? Many plan to plan transfers do not happen because of those rules.

[Guest hank]

Becky,

Our organization frequently encounters difficulty with divestitures and the same desk rule. It's a very difficult concept to communicate to someone who is being "sold" and thinks s/he has a portable 401(k) balance. Worse, we have a pension plan which is subject to a different distribution rule in the event of a sale.

There has, of course, been legislation proposed to address the same desk rule. I don't know where it stands at the moment.