News & Analysis as of

Multiemployer Pension Plan Amendments Act (MPPAA)

Jackson Lewis P.C.

Withdrawal Liability: Third Circuit Paves New Path for Pension Funds to Collect from Affiliated Employers

Jackson Lewis P.C. on

Holding a settlement agreement was a revised withdrawal liability assessment, the U.S. Court of Appeals for the Third Circuit rejected a group of dairy companies’ petition to dismiss a pension fund’s claim to enforce a $39...more

Tucker Arensberg, P.C.

Third Circuit Validates Pension Plan’s Right to Revise Withdrawal Liability Assessment and Its Enforcement in Federal Court

Tucker Arensberg, P.C. on

In Central States, Se. & W. Areas Pension Fund v. Laguna Dairy, S. de R.L. de C.V., No. 23-3206 (3d Cir. 2025 Mar. 27, 2025), the United States Court of Appeals for the Third Circuit (“Third Circuit”) reversed the district...more

Conn Maciel Carey LLP

CMC Attorney Mark Trapp Secures Favorable Ruling in $23M Pension Dispute

Conn Maciel Carey LLP on

In 2017, Consumers partially withdrew from the Central States, Southeast and Southwest Areas Pension Fund. The fund said the company owed $11.3 million (or monthly payments of $42,200 for 20 years) for its share of the fund’s...more

Baker Donelson

Multiemployer Withdrawal Liability Can Extend Beyond the Withdrawing Employer

Baker Donelson on

A recent case from the United States Court of Appeals for the Sixth Circuit, Local No. 499, Board of Trustees of Shopmen's Pension Plan v. Art Iron, Inc., et al., 177 F. 4th 923 (6th Cir. 2024), clarifies a significant legal...more

Jackson Lewis P.C.

The End of Chevron Deference and the Anticipated Impact on Withdrawal Liability

Jackson Lewis P.C. on

The U.S. Supreme Court recently overturned the decades-old Chevron doctrine of judicial deference to a federal agency’s interpretation of an ambiguous statute. (See “Go Fish! U.S. Supreme Court Overturns ‘Chevron Deference’...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

Carlton Fields

D.C. Circuit Affirms Decision Vacating and Remanding Arbitration Decision

Carlton Fields on

The D.C. Circuit Court of Appeals recently affirmed a district court’s decision to vacate and remand an arbitration decision in a case concerning companies’ withdrawal from a retirement fund....more

Jackson Lewis P.C.

Seventh Circuit Orders Pension Fund to Return Withdrawal Liability to Employer

Jackson Lewis P.C. on

An employer can contest a withdrawal liability assessment and ultimately prevail. That is the moral of Bulk Transport Corp. v. Teamsters Union No. 142 Pension Fund, No. 23-1563 (7th Cir. Mar. 22, 2024). Withdrawal...more

Jackson Lewis P.C.

Building and Construction Industry Exemption: Tool to Contest Withdrawal Liability

Jackson Lewis P.C. on

The Multiemployer Pension Plan Amendments Act of 1974 (MPPAA) was enacted purposefully by Congress to seize moneys from contributing employers to fund multiemployer defined benefit pension funds regardless of the employers’...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

Proskauer - Employee Benefits & Executive...

District Court Denies Employer’s “Injury-In-Fact” Challenge to Withdrawal Liability

In Holland v. Murray, No. 21-cv-567, 2023 WL 2645708 (D.D.C. Mar. 27, 2023), the court held that financial support provided by Congress to a multiemployer pension plan under the Bipartisan American Miners Act (“BAMA”) did not...more

Proskauer - Employee Benefits & Executive...

District Court Holds Employer “Expelled” From Plan May Not Have Effected a “Withdrawal”

In Central States v. Wingra, No. 21-cv-3684, 2023 WL 199360 (N.D. Ill. Jan. 17, 2023), the district court held that an employer expelled from a multiemployer pension plan may not owe withdrawal liability because the permanent...more

Fox Rothschild LLP

Building and Construction Industry Exemption to Withdrawal Liability May Apply Narrowly

Fox Rothschild LLP on

A recent decision from the Southern District of New York reveals that courts may be inclined in some withdrawal liability cases to narrowly apply the building and construction industry exemption based on the nature and...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

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

Littler

D.C. Circuit Holds Withdrawal Liability Interest Rate Must Reflect Plan’s Investment Policy

Littler on

On Friday, July 8, 2022, the U.S. Court of Appeals for the D.C. Circuit issued its decision in United Mine Workers of America 1974 Pension Plan v. Energy West Mining Company, joining the Sixth Circuit in holding that the...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

McDermott Will & Emery

Weekly IRS Roundup July 4 – July 8, 2022

McDermott Will & Emery on

Presented below is our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of July 4, 2022 – July 8, 2022...more

Jackson Lewis P.C.

Third Circuit Joins Sister Circuits in ‘Employer’ Definition under Multiemployer Pension Plan Amendments Act

Jackson Lewis P.C. on

Turning an “American Dream Project” into a nightmare for a New Jersey contractor, the U.S. Court of Appeals for the Third Circuit has held that, under ERISA’s multiemployer pension plan provisions (the Multiemployer Pension...more

Jackson Lewis P.C.

Understanding the Multiemployer Pension Plan Construction Industry Exemption

Jackson Lewis P.C. on

The Multiemployer Pension Plan Amendments Act (MPPAA), the Employee Retirement Income Security Act’s (ERISA) progeny, can create significant unexpected liabilities for companies that have agreed to collective bargaining...more

Jackson Lewis P.C.

‘Segal Blend’ Withdrawal Liability Calculation Violates ERISA, Court Holds in Milestone Decision

Jackson Lewis P.C. on

The use of the “Segal Blend” to calculate a company’s withdrawal liability when it withdrew from a multiemployer pension plan violated the Employee Retirement Income Security Act (ERISA), as amended by the Multiemployer...more

Jackson Lewis P.C.

Butch Lewis Brings No Good News for Contributing Employers

Jackson Lewis P.C. on

In the clamor that surrounded the current administration’s adoption of the American Rescue Act of 2021 (ARPA), quietly tucked in as Subtitle H is the Butch Lewis Emergency Pension Plan Relief Act of 2021 (Butch Lewis). Butch...more

Jackson Lewis P.C.

Will American Rescue Plan Act Multiemployer Pension Provisions Bring Relief To Employers?

Jackson Lewis P.C. on

The American Rescue Plan Act of 2021 includes a modified version of the Butch Lewis Act, referred to as the Emergency Pension Plan Relief Act of 2021 (EPPRA), which restores to financial health more than 100 failing...more

McDermott Will & Emery

New PBGC Rule Simplifies Multiemployer Plan Withdrawal Liability Calculations

McDermott Will & Emery on

The Pension Benefit Guaranty Corporation (the PBGC) kicked off 2021 by releasing a final rule intended to streamline withdrawal liability calculations for multiemployer plans that are or were in “critical” or “endangered”...more

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