Withdrawal Liability

Addresses which of two limitations on withdrawal liability applies—one applicable to a dissolving or liquidating employer, the other applicable to an employer that sold its assets to an unrelated party—when an employer satisfies the prerequisites for both.

Addresses whether immediate payment of the outstanding amount of an employer's withdrawal liability can be required if any installment is not paid during the withdrawal liability dispute resolution process and before the arbitrator's final decision. PBGC adopted a rule addressing the issue. (See 29 CFR part 4219, Subpt C.)

Addresses a question as to what constitutes a facility for purposes of determining what CBUs get excluded due to a pre-1980 closure of a facility.

Addresses mass withdrawal generally, the effect of a "substantially all" mass withdrawal on the de minimis reduction and 20-year cap, and the meanings of "substantially all" and "agreement or arrangement".

Addresses whether a withdrawal would take place if a corporation transfers all of its assets to one of its divisions and whether a withdrawal occurs in the event of a stock sale if contributions to the plan continue.

Addresses the meaning of the term "the unfunded vested benefits attributable to employees of the employer" for purposes of the cap on the unfunded vested benefits attributable to employees of an employer that sold substantially all of its assets to an unrelated buyer.

Addresses whether the construction industry exception to withdrawal applies where a contractor's CBA expires, 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.

Addresses the bond / escrow requirements of section 4204 of ERISA which, if satisfied along with the other 4204 requirements, mean that a sale of assets by a contributing employer will not constitute a withdrawal from a multiemployer plan.

Addresses the procedure to follow when parties to a dispute over withdrawal liability do not agree on the selection of an arbitrator. PBGC adopted a rule addressing the issue. (See 29 CFR § 4221.4.)

Addresses whether an employer that has withdrawn from a multiemployer plan may be relieved of withdrawal liability by a subsequent sale of assets.