Successor liability

The described spin-off is a reportable event and sales transaction principles apply to the spin-off and transfer transactions.

Asset purchaser assuming some pension plans not successor corporation to the seller with respect to plans left with the seller; purchaser is liable for plans it assumed; liability to PBGC is not limited by any agreement between seller and purchaser as to the amount of liability purchaser was willing to assume.

Plans found not to be successor plans where there is a clear delineation of separate plans maintained by separate employers with the phase-in of guaranteed benefits beginning at the later of the adoption date or effective date of each plan.

A plan was not a successor plan to another plan, because both plans existed during the same plan year.

Discusses successor plan requirements.

Whether an employer that purchased a division of another company and rehired its employees would be treated as a successor corporation and assume liability for existing plans.