[Code of Federal Regulations]
[Title 26, Volume 5]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.401(a)-12]

[Page 68]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.401(a)-12  Mergers and consolidations of plans and transfers 
of plan assets.

    A trust will not be qualified under section 401 unless the plan of 
which the trust is a part provides that in the case of any merger or 
consolidation with, or transfer of assets or liabilities to, another 
plan after September 2, 1974, each participant in the plan would receive 
a minimum benefit if the plan terminated immediately after the merger, 
consolidation, or transfer. This benefit must be equal to or greater 
than the benefit the participant would have been entitled to receive 
immediately before the merger, consolidation, or transfer if the plan in 
which he was a participant had then terminated. This section applies to 
a multiemployer plan only to the extent determined by the Pension 
Benefit Guaranty Corporation. For additional rules concerning mergers or 
consolidations of plans and transfers of plan assets, see section 414(l) 
and Sec. 1.414(l)-1.

[T.D. 7638, 44 FR 48195, Aug. 17, 1979]