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 of and potentially confront to mitigate the serious consequences associated with a withdrawal liability assessment. Withdrawal liability is a hazard that has the ability to completely undermine the financial stability of a business.

The purpose of this article is to summarize the significance of withdrawal liability, highlight warning signs that may alert you of the possible existence of a withdrawal liability problem, and suggest some best practices to address withdrawal liability issues to safeguard your business going forward.

Originally published in Bloomberg BNA Pension & Benefits Daily, 183 PBD - September 22, 2014.