Limitation on withdrawal liability

In the case of bona fide sale of all or substantially all of the employer’s assets in an arm’s-length transaction to an unrelated party (within the meaning of section 1384(d) of this title), the unfunded vested benefits allocable to an employer (after the application of all sections of this part having a lower number designation than this section), other than an employer undergoing reorganization under title 11 or similar provisions of State law, shall not exceed the greater of— If the liquidation or distribution value of the employer after the sale or exchange is— The portion is— Not more than $5,000,000 30 percent of the amount. More than $5,000,000, but not more than $10,000,000 $1,500,000, plus 35 percent of the amount in excess of $5,000,000. More than $10,000,000, but not more than $15,000,000 $3,250,000, plus 40 percent of the amount in excess of $10,000,000. More than $15,000,000, but not more than $17,500,000 $5,250,000, plus 45 percent of the amount in excess of $15,000,000. More than $17,500,000, but not more than $20,000,000 $6,375,000, plus 50 percent of the amount in excess of $17,500,000. More than $20,000,000, but not more than $22,500,000 $7,625,000, plus 60 percent of the amount in excess of $20,000,000. More than $22,500,000, but not more than $25,000,000 $9,125,000, plus 70 percent of the amount in excess of $22,500,000. More than $25,000,000 $10,875,000, plus 80 percent of the amount in excess of $25,000,000. In the case of an insolvent employer undergoing liquidation or dissolution, the unfunded vested benefits allocable to that employer shall not exceed an amount equal to the sum of— that portion of 50 percent of the unfunded vested benefits allocable to the employer (as determined under paragraph (1)) which does not exceed the liquidation or dissolution value of the employer determined— To the extent that the withdrawal liability of an employer is attributable to his obligation to contribute to or under a plan as an individual (whether as a sole proprietor or as a member of a partnership), property which may be exempt from the estate under section 522 of title 11 or under similar provisions of law, shall not be subject to enforcement of such liability. For purposes of this section— In the case of one or more withdrawals of an employer attributable to the same sale, liquidation, or dissolution, under regulations prescribed by the corporation—