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Multiemployer Plan Multiemployer Pension Plan Amendments Act (MPPAA) Employee Retirement Income Security Act (ERISA)

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

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

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

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 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

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

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

Jackson Lewis P.C.

Calculating Withdrawal Liability Using ‘Segal Blend’ Violated MPPAA, Ohio Court Rules

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

Jones Day

Private Equity Update: 1st Circuit Reverses Imposition of Pension Plan Withdrawal Liability

Jones Day on

The Multiemployer Pension Plan Amendments Act of 1980 ("MPPAA") amended the Employee Retirement Income Security Act of 1974 ("ERISA") and the Internal Revenue Code to make "trade[s] or business[es]" that are under "common...more

A&O Shearman

First Circuit Finds That Funds Were Not Liable for Portfolio Company’s Pension Fund Withdrawal Liability

A&O Shearman on

On November 22, 2019, the United States Court of Appeals for the First Circuit held that two separate private equity funds managed by the same general partner/management firm were not liable for the pension fund withdrawal...more

Seyfarth Shaw LLP

Withdrawal Liability Assessments — How To Identify Possible Default Defendants

Seyfarth Shaw LLP on

Synopsis: A recent decision by the District Court from the Southern District of New York shows why it often makes sense to consider, on a privileged basis, the universe of potential defendants to a withdrawal liability...more

Jackson Lewis P.C.

Segal Blend Litigation, Part Two: New Jersey District Court Holds That Use Of Segal Blend Did Not Violate MPPAA

Jackson Lewis P.C. on

As our earlier article reported, Judge Robert W. Sweet of the U.S. District Court for the Southern District of New York had recently held that a multiemployer pension fund’s use of the “Segal Blend” to calculate a withdrawn...more

Seyfarth Shaw LLP

Suffering From Withdrawal Following An Acquisition: Private Equity Company Liable For Successor Withdrawal Liability

Seyfarth Shaw LLP on

Given the Ninth Circuit’s recent holding that successor withdrawal liability is governed by a constructive notice standard, private equity companies and other businesses seeking to acquire other enterprises should be...more

Jackson Lewis P.C.

Constructive Notice Enough For Successor Withdrawal Liability, Ninth Circuit Holds

Jackson Lewis P.C. on

The expansion of the multiemployer pension plan successor withdrawal liability doctrine continues for asset purchasers. Establishing a constructive notice standard, the federal appellate court in San Francisco has ruled that...more

Jackson Lewis P.C.

Calculating Withdrawal Liability With ‘Segal Blend’ Violated Multiemployer Pension Plan Amendments Act, Judge Rules

Jackson Lewis P.C. on

In a decision that could have far-reaching implications for multiemployer pension plans and employers, a federal district court has held that the use of the “Segal Blend” to calculate a company’s withdrawal liability when it...more

Jackson Lewis P.C.

Multiemployer Pension Plans: Potential Successor Liability From Buyer’s Attempts To Continue Seller’s Business

Jackson Lewis P.C. on

The district court erred in finding a multiemployer pension plan did not show sufficient continuity of business operations to support imposing successor liability on an asset purchaser, the federal appeals court in Chicago...more

Bryan Cave Leighton Paisner

Investment Plus Partnership-in-Fact = Withdrawal Liability

Previously, we wrote about the First Circuit decision that a private equity fund constituted a “trade or business” under ERISA as amended by the Multeimployer Pension Plan Amendments Act (“MPPAA”). That dry description is...more

Cadwalader, Wickersham & Taft LLP

Current Structuring May Not Shield Private Equity Firms from ERISA Liabilities

On March 28, 2016, the U.S. District Court for the District of Massachusetts held that two private equity funds within Sun Capital were jointly and severally liable under the Employee Retirement Income Security Act of 1974,...more

Holland & Knight LLP

Pension Plan Withdrawal Liability Imposed on Investor Private Equity Funds

Holland & Knight LLP on

The latest decision in the series of Sun Capital cases was released on March 28, 2016, by the U.S. District Court for the District of Massachusetts. In Sun Capital Partners III, LP v. New England Teamsters & Trucking Indus....more

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

Casting a Wider Net: Court Finds Private Equity Funds Liable for ERISA Withdrawal Liability

On March 28, 2016, a district court in Massachusetts found two private equity funds (under the Sun Capital Partners, Inc. umbrella) jointly and severally liable for withdrawal liability imposed on one of its underlying...more

Latham & Watkins LLP

Sun Capital: Private Equity Funds Liable for Portfolio Company’s Withdrawal Liability

Latham & Watkins LLP on

District Court finds affiliated funds acted in de facto partnership which controlled portfolio company; Decision may be significant in making private equity acquisition structuring choices. On March 28, 2016, a Federal...more

Troutman Pepper Locke

More Worries For Private Equity Funds - Another Structuring Fix Against ERISA Withdrawal Liability Dismantled

Troutman Pepper Locke on

In a landmark benefits decision, a Federal District Court in Massachusetts held that separate private equity funds sharing a general partner are jointly and severally liable under the Employee Retirement Income Security Act...more

Proskauer Rose LLP

The ERISA Litigation Newsletter - October 2015

Proskauer Rose LLP on

Editor's Overview - This month, we review the Second Circuit's ruling in New York State Psychiatric Ass'n, Inc. v. UnitedHealth Grp. wherein the Second Circuit ruled that: (i) a provider association has associational...more

Dechert LLP

Global Private Equity Newsletter - Fall 2015 Edition: Buyer Beware – Court Lowers Hurdle to Make Claim for Withdrawal Liability...

Dechert LLP on

In Tsareff v. ManWeb Services, Inc., the U.S. Court of Appeals for the Seventh Circuit held that an asset purchaser’s pre-closing knowledge of a seller’s potential multiemployer plan withdrawal liability could be sufficient...more

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