Withdrawal Liability

Discusses and compares a seller's withdrawal liability risks and obligations pre-MPPAA and post-MPPAA, and whether an employer's failure to object to an estimate of withdrawal liability (for informational purposes) bars that employer from challenging that underlying estimate upon a subsequent actual assessment of withdrawal liability.

Addresses the definition of withdrawal for a construction industry employer.

Addresses whether a seller and purchaser can retroactively bring a sale of assets within the coverage of the law by posting an appropriate bond and by amending the sales contract.

Addresses whether certain corporate transactions would trigger withdrawals and discusses whether these corporate transactions may be disregarded under the evade or avoid provision of the law.

Addresses whether interest rate changes subsequent to the mass withdrawal valuation date may be considered in determining the reallocation liability upon a mass withdrawal. It also addresses the burden of proof a multiemployer plan must satisfy to show an amendment increasing benefits was adopted earlier than the formal date of adoption which would make payment of the benefit increase covered by the PBGC guarantee.

Pending regulations, plans have the ability to adopt reasonable rules to abate an employer’s withdrawal liability.

Addresses (1) whether transfers of contributions between multiemployer plans under a reciprocity agreement are covered by rules on transfers of assets; and (2) whether a reciprocity agreement can create withdrawal liability obligations.

Addresses whether, under the presumptive method of allocating withdrawal liability, if a plan's assets exceed its vested liabilities, the unfunded vested benefit amount is zero.

Addresses whether the rule against transactions with a principal purpose to avoid withdrawal liability can apply when a transaction meets the sale of assets exception requirements.

Addresses whether a contributing employer to a multiemployer plan withdraws by subcontracting out its work to another contributing employer such that contributions are unaffected.