Withdrawal Liability

Addresses whether an employer may contractually modify its statutory withdrawal liability obligation to a multiemployer plan by assuming "additional liability", and the limitations of such a modification.

Addresses trustees’ ability to adopt alternative withdrawal liability rules under ERISA sections 4219 and 4224 that modify an employer's withdrawal liability payment terms to take into account an employer's financial condition.

Addresses (1) the calculation of annual withdrawal liability payments where an employer contributes to a multiemployer plan under multiple collective bargaining agreements requiring different contribution rates (the "contract-by-contract" approach); (2) using the contract-by-contract approach to calculate an employer's required contribution rate following plan termination by amendment; (3) whether alternate interest rates may be used to calculate the value of benefits under the plan following a mass withdrawal; (4) the correction of prior errors in valuation when calculating withdrawal liability.

This opinion letter addresses whether an QPSAs and other benefits are nonforfeitable after termination of a multiemployer plan such that they should be considered in determining withdrawal liability.

Addresses calculation of withdrawal liability for a "joint employer” that is no longer required to contribute.

Addresses the definition of employer in the context of building cleaners at an office building.

Addresses the definition of the term "building and construction industry" for purposes of the construction industry exception to withdrawal.

Addresses the definition of the term "building and construction industry" for purposes of the construction industry exception to withdrawal.

Addresses the definition of the term “assets” for the purpose of the sale-of-assets exception to withdrawal.

Provides that PBGC approval is not required for a multiemployer plan to adopt a different statutory allocation method for unfunded vested benefits. However, PBGC approval is required for the adoption of an alternative allocation method (i.e. any method other than the four statutory methods).