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
Court Finds Union’s Withdrawal Liability Indemnification Obligation of Limited Duration
Congress enacted the withdrawal liability provisions of the Multiemployer Pension Plan Amendments Act (MPPAA) with the ultimate goal of protecting participants and beneficiaries entitled to benefits from multiemployer pension plans. Congress observed that such plans are financially burdened whenever an employer withdraws and permanently ceases to pay contributions and decided that the burden should be
The Saga Continues for Multi-Employer Pension Funds
This is another blog on our monitoring the status of defined benefit multi-employer pension funds. Since this author last wrote to you, it has been revealed that the Central States Pension Fund is scheduled to become insolvent sometime in 2025. Worse yet, it has been announced that the multi-employer fund of the Pension Benefit Guaranty
Segal Blend Litigation, Part Two: New Jersey District Court Holds That Use of Segal Blend Did Not Violate MPPAA
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District of New York had recently held that a multiemployer pension fund’s use of the “Segal Blend” to calculate a withdrawn employer’s withdrawal liability violated the provisions of the Employee Retirement Income Security Act (“ERISA”), as amended by
CONGRESS AGAIN ATTEMPTS TO ADDRESS MULTIEMPLOYER PLAN CRISIS IN BIPARTISAN BUDGET ACT
Under the Employee Retirement Income Security Act (“ERISA”), as amended by the Multiemployer Pension Plan Amendments Act (“MPPAA”), an employer that has assumed an obligation to contribute to collectively-bargained and jointly-administered defined benefit pension plans ( “multiemployer plans”) is liable for its allocable share of any underfunding upon the permanent cessation of that obligation. This
No Standing!
This is the most recent article in our series which focuses on the impact on employers of the downward spiral and death knell of the multi-employer defined benefit plan.
The Eleventh Circuit has dealt another blow to employers who contribute to multi-employer defined benefit funds.
In Westrock RKT Company v. Pace Industry Union-Management Pension Fund
The First Dinosaur Has Died
This is another article in our series which has focused on the deterioration and downward spiral of the multi-employer defined benefit pension fund.
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Death Notice Decedent: The New York Teamsters Road Carriers Local 707 Pension Fund Date of Death: March 2017 Cause of Death: The failure of successive administrations and Congresses to |
January 20, 2017; A Historical Day
This is another article in our series addressing the continued deterioration and downward spiral of multi-employer defined benefit pension funds and the resulting impact upon participants, unions and most importantly on employers.
As the American public focuses on January 20, 2017 as the beginning of the Trump administration, the day may also have historical significance
Pension Plan Suffers Cybersecurity Attack, ERISA Advisory Council Offers Cybersecurity Recommendations to DOL
It has been reported that infamous bank robber, Slick Willie Sutton, once said, “I rob banks because that’s where the money is.” Data thieves, understandably, have a similar strategy – go where the data is. The retail industry knows this as it has been a popular target for payment card data. The healthcare and certain