ERISA Controlled Group Evade or Avoid Rules (ERISA 4069)
ERISA 4069, providing in clause (a) as follows:
4069's Legislative History
-- suggests that "the focus of the statute was on 'essentially fraudulent maneuvers lacking in economic substance' by employer-sellers, and not by outside investors" (quoting from Sun Capital, 2012 D.MA, aff'd on other grounds 2013):
Cuyamaca Meats, Inc. v. San Diego & Imperial Counties Butchers' & Food Employers' Pension Trust Fund, 827 F.2d 491, 499 (9th Cir. 1987) (quoting 126 Cong. Reg. 23038 (1980) (statement of Rep. Frank Thompson)).
Structuring to Stay Below 80%
2013.July.24 1st Circuit's Sun Capital Decision approves Advance Planning. The 1st Circuit’s decision held that Sun Capital’s PE funds could not be held liable for withdrawal liability under ERISA’s “evade or avoid” provision, but see decision on remand for the careful planning needed. See Sun Capital Case.
2012.Oct.18 MA District Court Rejects Evade or Avoid Liability for Fund Structuring. Here are insightful points from the lower court's Sun Capital decision:
Disposition Transactions to get below 80%
Copyright © Joseph Poerio. All rights reserved.