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Partition FAQs for Practitioners

Criteria for Partitions

Five statutory conditions must be satisfied for PBGC to approve a partition: 

  • The plan is in critical and declining status,
  • PBGC determines that the plan sponsor has taken (or is taking) all reasonable measures to avoid insolvency,
  • PBGC determines that a partition of the plan will reduce PBGC's expected long-term loss and is necessary for the plan to remain solvent,
  • PBGC certifies to Congress that PBGC's ability to meet existing financial assistance obligations to other plans will not be impaired by the partition, and
  • The cost of the partition is paid exclusively from PBGC's multiemployer fund.

Application and Filing Requirements

Key Terms and Definitions

Partition Orders and Post-Partition Responsibilities

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