News & Analysis as of

Multiemployer Pension Plan Amendments Act (MPPAA) Employee Benefits Withdrawal Liability

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

Ninth Circuit Court of Appeals Notes That Review of Arbitration Awards Under the MPPAA is “Notably Less Deferential” than under...

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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

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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

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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

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.

Building And Construction Industry Exemption From Withdrawal Liability

Jackson Lewis P.C. on

Since its passage late in 1980, the Multiemployer Pension Plan Amendments Act (MPPAA) has proven to be a hindrance to the profitable operations of employers that contribute to multiemployer pension funds by imposing a...more

Jackson Lewis P.C.

Court Rejects Equitable Exception To MPPAA’s ‘Pay Now, Dispute Later’ Regime

Jackson Lewis P.C. on

A withdrawing employer must make withdrawal liability installment payments during the pendency of an arbitration proceeding contesting the existence of withdrawal liability, a federal court has affirmed, rejecting the...more

Proskauer Rose LLP

ERISA Newsletter - Third Quarter 2019

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In this edition of our Newsletter, we take a look at a pair of cases that, while unrelated, together remind us of the importance of having clear plan rules in place that reflect the plan sponsor’s intention. The first article...more

Seyfarth Shaw LLP

Withdrawal Liability Assessments — How To Identify Possible Default Defendants

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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

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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

Fisher Phillips

Troubling Court Decision Sends Withdrawal Liability Warning To Employers

Fisher Phillips on

A federal appeals court has handed multiemployer pension plans a blank check to assess increased withdrawal liability against employers exiting a plan. The 11th Circuit Court of Appeals’ recent decision in Westrock RKT...more

FordHarrison

Multiemployer Pension Plans: Section 1405 – Limitation on Withdrawal Liability

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In a recent decision involving a withdrawal liability assessment by a multiemployer pension plan, an arbitrator reduced the assessment by approximately 50 percent and ruled in favor of the employer on several significant...more

K&L Gates LLP

Massachusetts Court Finds Private Equity Funds Liable for Portfolio Company’s Pension Obligations

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In a decision that will have significant repercussions for private equity sponsors and their portfolio companies, the United States District Court for the District of Massachusetts has found a private equity sponsor liable...more

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