News & Analysis as of

Multiemployer Plan Withdrawal Liability

Morgan Lewis - ML Benefits

Withdrawal Liability Notice and Demand in Multiemployer Plans: Interpreting ‘As Soon as Practicable’ for Funds and Employers

A recent ruling by the US Court of Appeals for the Third Circuit serves provides a valuable reminder for multiemployer pension funds and contributing employers regarding ERISA’s withdrawal liability notice and demand...more

Tucker Arensberg, P.C.

Case Alert: Court Holds that “There is No Third Element for ERISA Successor Liability.”

Tucker Arensberg, P.C. on

Successor liability is a powerful collection tool for multiemployer plans under ERISA. It most commonly arises in the context of asset sales (although it is not limited to that situation)....more

Littler

Illinois Federal Court Holds that a Pension Rehabilitation Plan Fund Used an Improper High-Contribution Rate in Withdrawal...

Littler on

On March 29, 2024, the U.S. District Court for the Northern District of Illinois issued its decision in Central States, Southeast and Southwest Areas Pension Fund v. Event Media, Inc. In a matter of first impression for...more

Conn Maciel Carey LLP

Game Changer for Pension Withdrawal Liability: Seventh Circuit Orders Return of Withdrawal Liability Payments

Conn Maciel Carey LLP on

Last Friday, a three-judge panel of the United States Court of Appeals for the Seventh Circuit reversed a district court’s decision upholding an arbitration award requiring an employer to pay more than $2.3 million in...more

Jackson Lewis P.C.

Impact of Critical Withdrawal Liability Interest Rate Assumption on Construction Industry Employers

Jackson Lewis P.C. on

Withdrawal liability is a major concern for many employers with collectively bargained operations. While special rules applicable to the construction industry can limit the circumstances under which liability can be imposed,...more

Fisher Phillips

Teamster Pension Bailout May Not Be Remedy Employers Hoped For

Fisher Phillips on

Christmas came early this year for the beleaguered Teamsters Central States Pension Fund and its over 350,000 participants – but employers may soon realize they just received a lump of coal in their stockings. On December 8,...more

Carlton Fields

Ninth Circuit Court of Appeals Notes That Review of Arbitration Awards Under the MPPAA is “Notably Less Deferential” than under...

Carlton Fields on

The Ninth Circuit Court of Appeals recently affirmed in part and reversed in part a district court’s order confirming an arbitration award under the Multiemployer Pension Plan Amendments Act of 1980 (the “MPPAA”), noting in...more

Morrison & Foerster LLP - Left Coast Appeals

This Week At The Ninth: Declaratory Judgments and Pension Plans

This week, the Court explains the limits of the Declaratory Judgment Act and employers’ liability for withdrawal from multiemployer pension plans. The Court holds that the Declaratory Judgment Act does not authorize a...more

Groom Law Group, Chartered

PBGC Issues Proposed Regulation for Multiemployer Plan Withdrawal Liability Assumptions

On October 14, 2022 the Pension Benefit Guaranty Corporation (“PBGC”) published a proposed regulation regarding the interest rates that multiemployer pension plan actuaries use when calculating the present value of plans’...more

Seyfarth Shaw LLP

PBGC Addresses Withdrawal Liability Assumptions For First Time In New Proposed Rule

Seyfarth Shaw LLP on

Seyfarth Synopsis: On October 14, 2022, the Pension Benefit Guaranty Corporation (“PBGC”) published its proposed rule under ERISA Section 4213 (the “Proposed Rule”), which sets forth for the first time the agency’s guidance...more

Fox Rothschild LLP

PBGC Proposes Rule Change for Withdrawal Liability Discount Rates

Fox Rothschild LLP on

In an apparent effort to resolve uncertainty caused by court rulings, the Pension Benefit Guaranty Corporation has proposed that actuaries of multiemployer pension plans should be allowed to use any interest rate for...more

Jackson Lewis P.C.

Withdrawal Liability and The Building and Construction Industry Exception

Jackson Lewis P.C. on

Withdrawal liability is a statutory obligation under the Employee Retirement Income Security Act (ERISA) that any unionized employer may have to confront. Exemptions from liability include one applicable to construction...more

Fox Rothschild LLP

What Employers That Contribute to Multiemployer Plans Receiving 'Special Financial Assistance' Need to Know

Fox Rothschild LLP on

In a prior alert, we detailed how the Interim Final Rule (IFR) from the Pension Benefit Guaranty Corporation (PBGC) regarding the special financial assistance (SFA) provided under American Rescue Plan Act of 2021 (ARPA) would...more

Seyfarth Shaw LLP

Big Changes For Employers Participating in Multiemployer Plans

Seyfarth Shaw LLP on

Seyfarth Synopsis: Contributing employers to multiemployer pension plans have seen some big developments in July. The PBGC released its new Final Rule on Special Financial Assistance on July 8, 2022, which will help...more

Seyfarth Shaw LLP

PBGC Finally Publishes Final Rule On Special Financial Assistance Program

Seyfarth Shaw LLP on

Seyfarth Synopsis: On July 8, 2022, the Pension Benefit Guaranty Corporation (“PBGC”) published its final rule (“Final Rule”) on the Special Financial Assistance (“SFA”) Program established under the American Rescue Plan Act...more

Jackson Lewis P.C.

More Bad News For Employers In The PBGC Final Rule

Jackson Lewis P.C. on

The recently published final regulation implementing last year’s massive multiemployer pension plan bailout contains a very thin silver lining, but overall, more bad news for already overburdened employers....more

Jackson Lewis P.C.

Withdrawal Liability Interest Rate Must Reflect Projected Investment Return, D.C. Circuit Holds

Jackson Lewis P.C. on

Under the Employee Retirement Income Security Act (ERISA), as amended by the Multiemployer Pension Plan Amendments Act (MPPAA), a company incurs withdrawal liability when it withdraws from a multiemployer pension plan....more

Williams Mullen

[Webinar] M&A Series: Employee Benefits Considerations in Mergers and Acquisitions - June 21st, 11:00 am ET

Williams Mullen on

Employee benefits law is highly sophisticated and ever-changing. Understanding how these benefits could impact your deal is critical to ensure there are no surprises during closing and afterwards....more

Proskauer - Employee Benefits & Executive...

Ninth Circuit Agrees with Third Circuit that “Highest Contribution Rate” for Withdrawal Liability Payment Calculations Excludes...

On January 31, 2022, the Ninth Circuit affirmed the lower court’s finding that surcharges imposed by the Pension Protection Act (“PPA”) are excluded from the determination of an employer’s “highest contribution rate” for...more

Bodman

Sixth Circuit Addresses Actuarial Assumptions Regarding Withdrawal Liability

Bodman on

In Sofco Erectors, Inc. v. Trustees of the Ohio Operating Engineers Pension Fund (“Sofco”) (September, 28, 2021), the Sixth Circuit Court of Appeals issued a long awaited decision regarding the appropriateness of interest...more

Fox Rothschild LLP

Federal Appellate Ruling on the Segal Blend May Change Calculation of Pension Fund Withdrawal Liability

Fox Rothschild LLP on

In a highly anticipated and thorough opinion, the 6th Circuit Court of Appeals concluded that use of the Segal Blend by a multiemployer pension plan (MEPP) in calculating an employer’s withdrawal liability violated ERISA. ...more

Akin Gump Strauss Hauer & Feld LLP

Sixth Circuit Weighs In on Multiemployer Plan Withdrawal Liability Assumptions

On September 28, 2021, in Sofco Erectors v. Trustees of the Ohio Operating Engineers Pension Fund, No. 20-3639/3671, 2021 BL 367718 (6th Cir. Sept. 28, 2021), the 6th Circuit Court of Appeals issued the first major appeals...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Sixth Circuit Rules Interest Rate Methodology Selected by Plan Actuary in Withdrawal Liability Calculation Violates ERISA

In a rare victory for employers that participate in multiemployer pension plans, the Sixth Circuit Court of Appeals held that the interest rate memorialized in the Segal Blend actuarial assumption was inappropriate to use in...more

Tucker Arensberg, P.C.

Third Circuit Affirms $96 Million Withdrawal Liability Award Against Renco

In a major win for the Steelworkers Pension Trust (SPT), the U.S. Court of Appeals for the Third Circuit upheld an award totaling $96 million in withdrawal liability and additional statutory penalties against the Renco Group,...more

Fox Rothschild LLP

Withdrawal Liability Concerns For Employers To Multiemployer Pension Plans That Receive Special Financial Assistance

Fox Rothschild LLP on

The American Rescue Plan Act of 2021 (ARPA) provides “special financial assistance” (SFA) for certain troubled multiemployer defined benefit pension plans (MEPPs). Although ARPA outlined the big picture of how these troubled...more

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