controlled group
(2) Allocation of assets in plan spin-offs, etc. (A) In general In the case of a plan spin-off of a defined benefit plan, a trust which forms part of— (i) the original plan, or (ii) any plan spun off from such plan, shall not constitute a qualified trust under this section unless the applicable percentage of excess assets are allocated to each of such plans. (B) Applicable percentage For purposes of subparagraph (A), the term “applicable percentage” means, with respect to each of the plans described in clauses (i) and (ii) of subparagraph (A), the percentage determined by dividing— (i) the excess (if any) of— (I) the sum of the funding target and target normal cost determined under section 430, over (II) the amount of the assets required to be allocated to the plan after the spin-off (without regard to this paragraph), by (ii) the sum of the excess amounts determined separately under clause (i) for all such plans. (C) Excess assets For purposes of subparagraph (A), the term “excess assets” means an amount equal to the excess (if any) of— (i) the fair market value of the assets of the original plan immediately before the spin-off, over (ii) the amount of assets required to be allocated after the spin-off to all plans (determined without regard to this paragraph). (D) Certain spun-off plans not taken into account (i) In general A plan involved in a spin-off which is described in clause (ii), (iii), or (iv) shall not be taken into account for purposes of this paragraph, except that the amount determined under subparagraph (C)(ii) shall be increased by the amount of assets allocated to such plan. (ii) Plans transferred out of controlled groups A plan is described in this clause if, after such spin-off, such plan is maintained by an employer who is not a member of the same controlled group as the employer maintaining the original plan. (iii) Plans transferred out of multiple employer plans A plan as described in this clause if, after the spin-off, any employer maintaining such plan (and any member of the same controlled group as such employer) does not maintain any other plan remaining after the spin-off which is also maintained by another employer (or member of the same controlled group as such other employer) which maintained the plan in existence before the spin-off. (iv) Terminated plans A plan is described in this clause if, pursuant to the transaction involving the spin-off, the plan is terminated. (v) Controlled group For purposes of this subparagraph, the term “controlled group” means any group treated as a single employer under subsection (b), (c), (m), or (o). (E) Paragraph not to apply to multiemployer plans This paragraph does not apply to any multiemployer plan with respect to any spin-off to the extent that participants either before or after the spin-off are covered under a multiemployer plan to which title IV of the Employee Retirement Income Security Act of 1974 applies. (F) Application to similar transaction Except as provided by the Secretary, rules similar to the rules of this paragraph shall apply to transactions similar to spin-offs. (G) Special rules for bridge depository institutions For purposes of this paragraph, in the case of a bridge depository institution established under section 11(i) of the Federal Deposit Insurance Act ( 12 U.S.C. 1821(i) )— (i) such bank shall be treated as a member of any controlled group which includes any insured bank (as defined in section 3(h) of such Act ( 12 U.S.C. 1813(h) ))— (I) which maintains a defined benefit plan, (II) which is closed by the appropriate bank regulatory authorities, and (III) any asset and liabilities of which are received by the bridge depository institution, and (ii) the requirements of this paragraph shall not be treated as met with respect to such plan unless during the 180-day period beginning on the date such insured bank is closed— (I) the bridge depository institution has the right to require the plan to transfer (subject to the provisions of this paragraph) not more than 50 percent of the excess assets (as defined in subparagraph (C)) to a defined benefit plan maintained by the bridge depository institution with respect to participants or former participants (including retirees and beneficiaries) in the original plan employed by the bridge depository institution or formerly employed by the closed bank, and (II) no other merger, spin-off, termination, or similar transaction involving the portion of the excess assets described in subclause (I) may occur without the prior written consent of the bridge depository institution.