News & Analysis as of

Withdrawal Liability

Jackson Lewis P.C.

Withdrawal Liability: Ninth Circuit Expands Definition of the “Building and Construction Industry”

Jackson Lewis P.C. on

Takeaways- • The Ninth Circuit recently adopted a broader definition of work performed in “the building and construction industry,” potentially expanding the availability of the special definition of complete withdrawal...more

Proskauer - Employee Benefits & Executive...

Seventh Circuit Holds Asset Sale Does Not Require Exclusion of Contributions from Withdrawal Liability Calculation

When an employer withdraws from a multiemployer pension plan, its maximum annual payment is based on all contributions it was required to remit to the plan. In SuperValu Inc. v. United Food and Commercial Workers Unions and...more

Proskauer - Employee Benefits & Executive...

District Court Holds Private Equity Fund, But Not Its General Partner or Management Company, Liable for Portfolio Company’s...

Under ERISA, a participating employer that withdraws from a multiemployer pension plan must pay its share of the plan’s unfunded vested benefits (i.e., its withdrawal liability). ERISA’s “controlled group” rules extend this...more

Groom Law Group, Chartered

Third Circuit Upholds PBGC Special Financial Assistance Regulations and Enforces an Employer’s Agreement Regarding Withdrawal...

On September 16, 2025, the United States Court of Appeals for the Third Circuit in In re Yellow Corp., No. 25-1421: (i) upheld regulations issued by the Pension Benefit Guaranty Corporation (“PBGC”) that partially exclude...more

Fisher Phillips

Employer Preview of Top Supreme Court Cases to Watch This Term

Fisher Phillips on

The Supreme Court kicked off a new term on October 6 and is set to decide several key cases in the coming year that could have big effects on employers for years to come. Here’s a preview of the top cases on the Court’s...more

Tucker Arensberg, P.C.

The Third Circuit’s Anti-prejudice Holding in Allied Painting is Unpersuasive, Arbitrator Jaffe Rules.

Tucker Arensberg, P.C. on

On September 2, 2025, Arbitrator Ira F. Jaffe refused to invalidate a 14-year-old withdrawal liability assessment merely because the pension fund did not issue the assessment “as soon as practicable,” as required by 29 U.S.C....more

Tucker Arensberg, P.C.

No Right to Jury Trial in ERISA Withdrawal Liability Case Involving Veil-Piercing and Evade-or-Avoid Theories, District Court...

Tucker Arensberg, P.C. on

In Board of Trustees of the PAMCAH-UA Local 675 Pension Fund v. SMAC Hawaii, Inc., 2025 U.S. Dist. LEXIS 192966 (D. Haw. Sept. 30, 2025), the pension fund sought to collect over $610,000 in ERISA withdrawal liability from...more

Proskauer - Employee Benefits & Executive...

Eleventh Circuit Holds Pension Fund Correctly Applied Partial Withdrawal Liability Credit

In Perfection Bakeries Inc. v. Retail Wholesale & Dep’t Store Int’l Union & Indus. Pension Fund, No. 23-12533, 147 F.4th 1314 (11th Cir. Aug. 1, 2025), the Eleventh Circuit affirmed that an employer’s credit for a prior...more

Ropes & Gray LLP

Applying Sun Capital: Federal Court Finds Private Equity Fund Liable for ERISA Withdrawal Liability

Ropes & Gray LLP on

On August 19, 2025, the U.S. District Court for the Western District of Missouri issued a notable opinion in Longroad Asset Management LLC v. Boilermaker-Blacksmith National Pension Trust where it addressed whether a private...more

Bodman

Sixth Circuit Rules that Pension Fund Did Not Properly Calculate Withdrawal Liability

Bodman on

When an employer has an obligation to contribute to a multiemployer pension fund, and the fund is underfunded (a deficit between assets and future projected payout obligations), an employer who ceases to have an obligation to...more

Jackson Lewis P.C.

Court Rules Pension Fund’s Position Was Not ‘So Baseless’ as to Mandate an Award of Attorneys’ Fees

Jackson Lewis P.C. on

ERISA is widely regarded as a remedial statute. As a result, employers who are pursued by multiemployer pension plans for withdrawal liability face an uphill battle when trying to recoup attorneys’ fees (often substantial)...more

Carlton Fields

Florida Appeals Court Decisions Week of July 28 - August 1, 2025

Carlton Fields on

U.S. Eleventh Circuit Court of Appeals - Pop v. LuliFama.com - class action, FDUTPA, influencers - Perfection Bakeries v. Retail Wholesale - pension fund, withdrawal liability - Bayse v. Philbin - qualified...more

Seyfarth Shaw LLP

Changing Last Year’s Assumptions This Year: Gotcha or Copacetic?

Seyfarth Shaw LLP on

Just before its summer recess, the Supreme Court agreed to review whether multiemployer pension funds can impose withdrawal liability based on actuarial assumptions adopted after the relevant plan year. The expected decision...more

Proskauer - Employee Benefits & Executive...

District Court Interprets Multiemployer Plan Fee-Shifting Provision to Encompass Attorneys’ Fees and Costs Incurred in Related...

A multiemployer plan that prevails in an action to collect delinquent contributions or withdrawal liability is statutorily entitled to recover reasonable attorneys’ fees and costs “of the action.” In International Painters &...more

Jackson Lewis P.C.

Withdrawal Liability Collection Scope Expanded

Jackson Lewis P.C. on

Takeaway Related Links Article The Third Circuit’s recent ruling enhanced a pension fund’s ability to pursue withdrawal liability collection against affiliated employers. The decision underscores the evolving nature of ERISA,...more

Proskauer - Employee Benefits & Executive...

District Court Holds Pension Fund Misapplied Prior Partial Withdrawal Liability Credit

A federal district court in Illinois became the first court to rule that an employer’s credit for a prior partial withdrawal should be applied at the end of the statute’s “waterfall” for calculating withdrawal liability. The...more

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

Proskauer - Employee Benefits & Executive...

Seventh Circuit Affirms that Employer’s Withdrawal Liability Cannot Be Based on Post-Rehabilitation Plan Contribution Increases

We recently reported on a district court decision holding that the Central States Pension Fund’s calculation of withdrawal liability should not have included contribution rate increases imposed after the Fund’s implementation...more

Littler

Seventh Circuit Places Limits on Employers’ Withdrawal Liability from Certain Multiemployer Plans

Littler on

On April 24, 2025, the Seventh Circuit upheld a Northern District of Illinois decision requiring a multiemployer pension plan to exclude the employers’ post-2014 rehabilitation plan contribution rate increases from the...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

Herbert Smith Freehills Kramer

Pension Plan Withdrawal Liability Takes Center Stage in Bankruptcy Judge's "Preliminary Observations"

A recent decision from the Bankruptcy Court for the District of Delaware in In re Yellow Corp. could have widespread implications for bankruptcy cases, including municipal bankruptcy cases. Of particular interest, the Judge...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

Proskauer - Employee Benefits & Executive...

Sixth Circuit Adopts IRS Standard to Determine Whether Activity Constitutes “Trade or Business” for Withdrawal Liability Purposes

Under 29 U.S.C. § 1301(b)(1), all “trades or businesses” under common control with an employer that has withdrawn from a multiemployer pension plan are jointly and severally liable for the employer’s withdrawal liability. ...more

Fisher Phillips

Successor Withdrawal Liability in Asset Sales: 5 Tips for Employers Before Buying the Assets of a Unionized Company

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When a New York waste operator took over a waste hauling and recycling contract for Westchester County last year, the successful acquisition of a multimillion-dollar business opportunity turned into a pension liability...more

Fisher Phillips

Bankruptcy Court Upholds PBGC Rules, Says Massive Pension Fund Bailouts Can’t Reduce Employer’s Withdrawal Liability: Your 5 Key...

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A bankruptcy court in Delaware recently upheld rules issued by the Pension Benefit Guaranty Corporation (PBGC) that severely impact how liability is calculated for employers withdrawing from multiemployer pension plans...more

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