Withdrawal Liability

News & Analysis as of

Employee Benefits Developments - November 2014

Health Care Cost Consideration May Support Age Discrimination Claim. Recently, the U.S. Court of Appeals for the Eighth Circuit overturned a lower court’s summary judgment ruling against a plaintiff’s age discrimination...more

For Some CalPERS Employers, Withdrawing from CalPERS is Not Feasible, So Why Not Look at Alternatives?

An article published in Thursday’s edition of The Bond Buyer highlights a rising concern of counties, cities and special districts that provide retirement benefits to their employees through the CalPERS pension plan: That,...more

Withdrawal Liability - A Concealed but Potentially Devastating Assessment

During the past several years a hidden liability has been lurking in the shadows. This hidden threat is known as withdrawal liability and is a critical issue that any employer with a unionized workforce needs to be cognizant...more

Litigation Alert: Trust/Owner Not 'Trade or Business' for Withdrawal Liability Purposes

Pacific Coast Shipyards Pension Fund v. Nautical Engineering, Inc. - On January 13, 2014, the U.S. District Court for the Northern District of California (the "District Court") granted a motion to dismiss, holding that...more

Employer Wins Bankruptcy Discharge of Withdrawal Liability

The Ninth Circuit Court of Appeals recently ruled that employers may discharge multiemployer trust withdrawal liability in bankruptcy. Employers required to contribute to multi-employer pension trusts face growing withdrawal...more

Ninth Circuit Allows Bankruptcy Discharge of ERISA Withdrawal Liability

The Ninth Circuit recently held that an employer who failed to pay $170,045 in withdrawal liability could discharge the liability in bankruptcy. Carpenters Pension Trust Fund v. Moxley, No. 11-16133 (9th Cir. August 20,...more

Private Equity Fund May Be Liable for Portfolio Company Withdrawal Liability

In Sun Capital Partners III, LP v. New England Teamsters and Trucking Industry Pension Fund, the First Circuit Court of Appeals held that an investment fund managed by private equity firm Sun Capital Advisors, Inc. (“Sun...more

Private Equity Fund May Be “Trade or Business” Under ERISA

First Circuit holds that an investment fund may be responsible for controlled group pension liabilities of portfolio companies. On July 24, the U.S. Court of Appeals for the First Circuit issued a significant decision...more

What Is A Trade Or Business And Why Does It Matter – Part 3

I blogged last year about a couple of decisions in which courts concluded that various related companies were part of a controlled group of trades or businesses and therefore liable for the withdrawal liability of one of the...more

A Warning Shot for Private Equity Funds: First Circuit Court of Appeals Holds Fund Engaged in a "Trade or Business" for Purposes...

Under Title IV of the Employee Retirement Income Security Act (ERISA), withdrawal liability upon cessation of participation in a multiemployer pension plan and termination liability upon the involuntary or distressed...more

Equitable Exception To Excuse Interim Withdrawal Liability Payments Rejected

A federal district court in New Jersey recently declined to apply an equitable exception to excuse an employer’s failure to pay interim withdrawal liability payments while it challenged the demand for withdrawal liability....more

Is the First Circuit Egregiously Aggregating? Sun Capital Partners Case Holds That a Private Equity Fund Could Have ERISA...

The recent decision by the U.S. Court of Appeals for the First Circuit in the Sun Capital Partners case may be of concern to private equity funds and other investment funds that acquire or invest in portfolio companies with...more

First Circuit Holds that Private Equity Fund May be Liable for Portfolio Company’s Multiemployer Plan Withdrawal Liability

In a decision (Sun Capital)with important implications for private equity sponsors, the U.S. Court of Appeals for the First Circuit has concluded that a private equity fund can be held liable for ERISA liabilities incurred by...more

First Circuit Finds Private Equity Partnerships Can be Liable for Employer's Withdrawal Liability

On July 24, 2013, the U.S. Court of Appeals for the First Circuit reversed a Massachusetts district court in a widely-watched case addressing whether private equity partnerships are "trades or businesses" for purposes of...more

Company Owners Can Be Personally Responsible For Contributions To Multiemployer Plans

I have blogged in the past about the reach of obligations to multiemployer plans and how other businesses owned by a participating employer can be held responsible for withdrawal liability based upon the common ownership. If...more

Another Business Owner Caught By Withdrawal Liability

I have blogged before [May 16, 2012, November 21, 2012, April 23, 2012, May 15, 2012, September 5, 2012] about the liability that can be imposed on businesses whose union employees participate in a multiemployer pension plan...more

District Court Limits the Collection of Withdrawal Liability Against Private Equity Funds

In Sun Capital Partners III, LP v. New England Teamsters and Trucking Industry Pension Fund, 2012 WL 5197117 (D. Mass. Oct. 18, 2012), a federal district court in Massachusetts concluded that a private equity fund was not a...more

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