Multiemployer

Regards a statutory provision under which a contributing employer to a multiemployer plan does not withdraw from the plan because it ceases to exist due to a change in organizational form if there is no interruption in the employer's contributions or obligation to contribute; addresses whether that exception to withdrawal applies to an employer that sells its assets where the purchaser takes over the seller's name, plant, and employees.

Addresses bond waivers and withdrawal liability and how regulations do not apply to the liquidation bond upon seller’s liquidation.

This opinion letter declines to provide an opinion on the meaning of “substantially all” for the purposes of determining whether a substantially all mass withdrawal has occurred.

Addresses the determination of withdrawal liability and the procedure to dispute withdrawal liability.

Addresses the special partial withdrawal rule for the retail food industry, and the meaning of “retail food industry.”

Regards a statutory provision under which a contributing employer to a multiemployer plan that sells its assets to an unrelated buyer does not withdraw from the plan if (among other things) the buyer posts a bond or escrow for 5 years and the sales contract makes the seller secondarily liable if the buyer withdraws during the 5 plan years after the sale. Addresses whether that exception to withdrawal applies if the buyer initially posts a bond for only the first two years.

Addresses the method of calculating the withdrawal liability of a purchaser of the assets of an unrelated contributing employer.

The sponsor of a multiemployer plan, other than a plan that primarily covers employees in the building and construction industry, may adopt any of the statutory allocation methods and any of the modifications set forth in §§ 4211.12 and 4211.13, without PBGC’s approval. PBGC will not opine on whether such adoption is consistent with trustees’ fiduciary duties.

Addresses abatement when a contributing employer withdraws and then acquires a division of a company that contributions to the same plan.

PBGC will not insure annuities purchased by a terminated multiemployer plan and PBGC is not authorized to pay benefits when a non-insolvent multiemployer plan terminates.