The ERISA 4204 section comes into play when an employer ceases covered operations under a multi-employer plan or ceases to have an obligation to contribute to such operation because of a bonafide, arms-length sale of assets to an unrelated purchaser who does not recur...
When a company is sold and the former entity ceases to exist, the buyer and/or the seller can obtain a bond to cover the unfunded pension liabilities. This is required under the Employee Retirement Income Security Act (ERISA), section 4204 and is commonly referred to...
