Brief Case
Pension Resource

29 C.F.R. § 4231.7

De minimis mergers and transfers.
CFR 1997 annual edition (revised as of 1997-07-01) · superseded Jul 1, 1998
PrintCompare datesAsk AI about this sectionOfficial source ↗
Back to current
Historical text in effect Jul 1, 1997 through Jun 30, 1998. View current · Compare with current
(a) Special plan solvency rule. In order to determine whether a de minimis merger or transfer satisfies the plan solvency requirement in § 4231.6(b), the plan assets, expected contributions and expected benefits may be determined without regard to any de minimis mergers or transfers that have occurred since the last valuation performed to establish charges and credits to the minimum funding standard account under section 412(b) of the Code.
(b) De minimis merger defined. A merger is de minimis if the present value of accrued benefits (whether or not vested) of one plan is less than 3 percent of the fair market value of the other plan's assets.
(c) De minimis transfer defined. A transfer of assets or liabilities is de minimis if—
(1) The fair market value of the assets transferred, if any, is less than 3 percent of the fair market value of all the assets of the transferor plan; and
(2) The present value of the accrued benefits transferred (whether or not vested) is less than 3 percent of the fair market value of all the assets of the transferee plan.
(d) Value of assets and benefits. For purposes of paragraphs (b) and (c) of this section, the value of plan assets and accrued benefits may be determined as of any date prior to the proposed effective date of the merger or transfer, but not earlier than the date of the most recent valuation performed for purposes of section 412(b) of the Code.
(e) Aggregation required. In determining whether a merger or transfer is de minimis, the assets and accrued benefits transferred in previous de minimis mergers and transfers within the same plan year shall be aggregated as described in paragraphs (e)(1) and (e)(2) of this section. For the purposes of those paragraphs, the value of plan assets may be determined as of the date during the plan year on which the total value of the plan's assets is the highest.
(1) A merger is not de minimis if the total present value of accrued benefits merged into a plan, when aggregated with all prior de minimis mergers of and transfers to that plan effective within the same plan year, equals or exceeds 3 percent of the value of the plan's assets.
(2) A transfer is not de minimis if, when aggregated with all previous mergers and transfers effective within the same plan year—
(i) The value of all assets transferred from the plan equals or exceeds 3 percent of the value of the plan's assets; or
(ii) The present value of all accrued benefits transferred to the plan equals or exceeds 3 percent of the plan's assets.
29 C.F.R. § 4231.7 — De minimis mergers and transfers. · CFR 1997 annual edition (revised as of 1997-07-01) · https://pensionresource.website/EAMain?content=EAMain.Law&id=cfr29-4231.7&asof=1997-07-01 · printed Oct 16, 2026
On this page
  • (a) Special plan solvency rule.
  • (b) De minimis merger defined.
  • (c) De minimis transfer defined.
  • (d) Value of assets and benefits.
  • (e) Aggregation required.
Implements
ERISA § 4231 (29 U.S.C. § 1411) Mergers and transfers between multiemployer plans
Cited by (code & regs)
Guidance addressing this section

No documents are primarily about this section.

Also cited in 2 other documents
PBGC
Final Rules
  • 83 FR 46642 Sep 14, 2018 — Mergers and Transfers Between Multiemployer Plans (b)(c)
Proposed Rules
  • 81 FR 36229Proposed Jun 6, 2016 — Mergers and Transfers Between Multiemployer Plans Comments due Aug 5, 2016 (b)(c)

No court rulings in the library cite this provision yet.

No private letter rulings in the library cite this provision yet.

Each row is a version of the text as published by the official source. Code dates are the edition/release point that first reflected the change; regulation dates are eCFR effective dates. The library checks the official sources automatically, so new versions appear here on their own; “run” opens the sync that recorded a version.

EffectiveThroughSourceAmended by
Jul 1, 1997Jun 30, 1998CFR 1997 annual edition (revised as of 1997-07-01) run 127View
Jul 1, 1998Oct 14, 2018eCFR amendment effective 2017-01-01 run 26View · Redline (sign in)
Oct 15, 2018currenteCFR editorial change effective 2018-10-15 run 2View · Redline (sign in)
Provision-level history (blame)