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Asset sale after a mass withdrawal

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There is a PBGC letter that the 30% cap on asset sales of small companies does not apply if the asset sale occurred after a mass withdrawal.

I wish I had saved it, but did not. Can anyone point me to a link to that PBGC opinion, or anything else relevant. After a mass withdrawal, and without that 30% exception, it seems that the entire value of a small company could be forfeited.


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  • Lois Baker changed the title to Asset sale after a mass withdrawal

You are probably thinking of PBGC Op. Ltr. 88-5, which states that the cap applies after a mass withdrawal only to employers that withdrew before the mass withdrawal. If their initial liability was limited by the cap, they are not subject to redetermination or reallocation liability. If, however, the employer sells its assets after the mass withdrawal, there is no cap, because the asset sale wasn't the event that caused the withdrawal.

Tom Veal



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