The American Rescue Plan Act of 2021 (ARPA) is the latest federal COVID-19 relief bill, which the President signed into law on Thursday, March 11, 2021. ARPA includes new COBRA continuation coverage election, notice, and subsidy requirements; pension plan funding relief; and some cost-saving benefit opportunities employees may be able to leverage. Some of these
Multi-employer pension plan
Is Relief for the Plight of Multiemployer Pension Plans in the Works?
I – Overview of the Butch Lewis Emergency Pension Plan Relief Act
The much-heralded Butch Lewis Emergency Pension Plan Relief Act of 2021 (the “Butch Lewis Act of 2021”) is closer to becoming a reality as part of the COVID-19 relief bill, which is set for a vote in the House of Representatives on February…
What Took So Long? Democrats Quickly Introduce Pension Relief Bill
House Ways and Means Committee Chairman Richard Neal (D-Mass.) introduced the Emergency Pension Plan Relief Act of 2021 (EPPRA) on January 21, 2021. EPPRA represents the latest legislative attempt to address the well-documented multiemployer pension crisis.
EPPRA is significant in that it is the first legislation introduced by Chairman Neal under the Biden administration, signaling…
Manufacturers and Multiemployer Pensions — The Importance of Monitoring Withdrawal Liability
Approximately a quarter of the workforce covered by a traditional pension plan is in a multiemployer plan, according to the U.S. Bureau of Labor Statistics. Many manufacturers that participate in such plans are unaware their largest contingent liability may stem from their allocable share of unfunded vested benefits or withdrawal liability. More info…
2nd Circuit Pension Liability Ruling Is A Big Win For Employers
As published by Law360 (January 13, 2020, 5:43 PM EST) —
Following oral arguments that were held in February 2018, in a long-anticipated decision in the National Retirement Fund v. Metz Culinary Management Inc., the U.S. Court of Appeals for the Second Circuit held that a multiemployer pension fund’s use of a lower interest rate…
Building and Construction Industry Exemption from Withdrawal Liability
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 surprise, and often expensive, obligation (the “withdrawal liability”) on employers across many industries. However, the construction industry is one of a…
PBGC Approves Revisions to AAA’s Withdrawal Liability Arbitration Rules; Employer Fees Reduced
For years, steep arbitration fees have made many employers think twice about contesting a questionable withdrawal liability determination. The Pension Benefit Guaranty Corporation’s (PBGC) approval of a lower fee schedule may ease that hurdle.
ERISA, as amended by the Multiemployer Pension Plan Amendment Act of 1980 (MPPAA), requires all disputes between an employer and a…
Republicans Propose Wholesale Reform of Multiemployer Pension Plan System
In a white paper and technical explanations, Republican Senators Charles E. Grassley (Chairman of the Senate Committee on Finance) and Lamar Alexander (Chairman of the Senate Committee on Health, Education, Labor and Pensions) have proposed reforms to the multiemployer pension plan system.
If implemented, the proposed reforms (not yet introduced as a bill) would…
Court Rejects Equitable Exception to MPPAA’s ‘Pay Now, Dispute Later’ Regime
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 employer’s attempt to recognize an equitable exception to the general “pay now, dispute later” requirement. Boilermaker-Blacksmith National Pension Trust v. PSF Industries, No. 18-2467-JWL (D.…
How Multiemployer Pension Plans Continue To Extract More From Contributing Employers Than What They Bargained For
Contributing employers to multiemployer pension plans (“MEPPs”) are commonly surprised that their obligations to such a plan can extend well beyond the contributions required under a collective bargaining agreement (“CBA”) negotiated with a union. The most significant extra-contractual obligation is withdrawal liability, a statutory exit fee imposed on employers that leave a plan that has…