Multiemployer

Addresses applicability to construction industry employers of the sale-of-assets limitation on withdrawal liability.

Corrects opinion letter 85-1 and addresses calculation of withdrawal liability installment payments other than on a quarterly schedule.

Addresses effects on withdrawal liability of a proposed transfer of benefit liabilities from a multiemployer plan to a single-employer plan.

Addresses whether or not an 18-month contribution holiday is a partial withdrawal.

Addresses whether the construction industry exception to withdrawal applies where a contractor terminates its CBA, its employees do not perform any more work for which the contractor was previously required to make contributions, but the contractor subcontracts for the performance of such work.

Merger/transfer rules do not apply to merger of a welfare fund and pension fund.

Discusses premium payment obligations under specific circumstances.

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. This opinion letter addresses whether the buyer may escrow a letter of credit instead of cash.

A terminated multiemployer plan cannot transfer assets and liabilities to other multiemployer plans pursuant to reciprocity agreement.

Review of rules governing plan administration after mass withdrawal; modification of withdrawal liability payment schedules; and recharacterization of contributions as withdrawal liability payments.