Guest Posted November 28, 2000 Posted November 28, 2000 Can a company merge an underfunded DB plan with a related (same sponsor) overfunded plan to eliminate the underfunding? The underfunded plan has already been granted a waiver of the minimum funding standard.
david rigby Posted November 28, 2000 Posted November 28, 2000 Might have a problem if either one is union-negotiated, but this is probably a viable technique. If you have an outstanding waiver of minimum funding standards, you might need to run this by the IRS. But remember 411(d)(6). Make sure the merger does not "injure" the participants in the overfunded plan. I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
Kirk Maldonado Posted November 29, 2000 Posted November 29, 2000 I don't think it is a 411(d)(6) issue. I think it is a 414(l) issue. Kirk Maldonado
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