29 U.S.C. § 1369 - U.S. Code - Unannotated Title 29. Labor § 1369. Treatment of transactions to evade liability; effect of corporate reorganization

(a)Treatment of transactions to evade liability

If a principal purpose of any person in entering into any transaction is to evade liability to which such person would be subject under this subtitle and the transaction becomes effective within five years before the termination date of the termination on which such liability would be based, then such person and the members of such person's controlled group (determined as of the termination date) shall be subject to liability under this subtitle in connection with such termination as if such person were a contributing sponsor of the terminated plan as of the termination date. This subsection shall not cause any person to be liable under this subtitle in connection with such plan termination for any increases or improvements in the benefits provided under the plan which are adopted after the date on which the transaction referred to in the preceding sentence becomes effective.

(b)Effect of corporate reorganization

For purposes of this subtitle, the following rules apply in the case of certain corporate reorganizations: