SECTION 3. APPLICATION

The IRS will not issue letter rulings on whether an employer reversion from a qualified plan occurs for purposes of § 4980(c)(2) in connection with a spinoff/termination transaction that involves excess assets. For this purpose, a “spinoff/termination transaction that involves excess assets” means a transaction in which: (1) less than 100 percent of the assets of a defined benefit plan are spun off to another defined benefit plan sponsored or maintained by the same employer (or any entity that would be considered to be in a group of employers treated as a single employer with the employer under § 414(b), (c), (m), or (o)); (2) the defined benefit plan receiving the assets that have been spun off is terminated

within a short period of time after receiving those assets; and (3) assets remain in the trust of the terminated defined benefit plan after all benefits are distributed to or on behalf of all participants and their beneficiaries.