Withdrawal

Addresses the applicability of the “sale of assets exception: to the construction industry complete withdrawal rules.

Addresses the determination of an employer's withdrawal date when the employer ceases to contribute because of a strike and is covered by the labor dispute exemption until a subsequent plan year when the labor dispute exemption expires.

Addresses whether incorporation of a sole proprietorship constitutes a withdrawal from a multiemployer pension plan where the successor corporation becomes party to the collective bargaining agreement and continues to contribute to the plan on behalf of its employees for the same operations for which contributions were previously contributed by the sole proprietor.

Addresses whether a corporation that has an obligation to contribute to a multiemployer plan withdraws from the plan if the corporation's parent sells its shares.

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.

Discusses the difference between a multiemployer plan and a multiple employer plan and the termination provisions applicable to the latter.

Addresses whether an employer who contributes to a multiemployer plan withdraws from the plan as a consequence of forming a wholly owned subsidiary which assumes all of its obligations to the plan.

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.

Addresses determining the date of a construction industry employer's withdrawal from a multiemployer plan in the context of a labor dispute.

Discusses whether the sale of stock constitutes a withdrawal from a multiemployer plan and whether the sale of assets rule applies.