By Jules Levenson and Mark Casciari
Seyfarth Synopsis: The Court of Appeals for the Seventh Circuit recently held that once a multi-employer pension fund accelerates withdrawal liability periodic payments into a lump sum liability, there is no statutory mechanism to revoke that acceleration. So the Court affirmed a finding that the fund’s trustees waited…
By: Mark Casciari
Synopsis: A recent decision by the District Court from the Southern District of New York shows why it often makes sense to consider, on a privileged basis, the universe of potential defendants to a withdrawal liability assessment upon issuance of the assessment, even though many potential defendants did not receive notice of…
By: Meg Troy and Mark Casciari
Seyfarth Synopsis: The Seventh Circuit has now applied a clear error standard of review to a withdrawal liability arbitrator’s interpretation of a collective bargaining agreement, thus enhancing the role of the arbitrator in resolving withdrawal liability disputes.
On January 8, 2018, in Laborers’ Pension Fund v. W.R. Weis…
By Ron Kramer
Seyfarth Synopsis: The PBGC is seeking more information on hybrid or two-pool withdrawal liability calculation methods. This is a sign that the PBGC may be re-evaluating its role in approving hybrid proposals, although it may be too early to tell which way it will dive, especially under a Trump administration.
The Pension…
By: Ron Kramer and Nick Clements
The Ninth Circuit, in Resilient Floor Covering Pension Trust Fund Board of Trustees v. Michael’s Floor Covering, Inc., Case No. 12-17675 (9th Cir. Sept. 11, 2015), joined the Seventh Circuit in finding that an asset purchaser, if a successor, can be liable for withdrawal liability triggered as a…
By Ron Kramer and Mark Casciari
Many asset buyers believe that, as long as they do not agree to ERISA Section 4204’s sale of assets exception to withdrawal liability, they will acquire the seller’s assets free and clear of any prior contribution history and from any withdrawal liability that may trigger as a result of…
By: Ron Kramer
Don’t look now, but pension reform is back in play. The proposed “Multiemployer Pension Reform Act of 2014” (“MPRA”), 161 pages long (click here), was recently introduced in the House Rules Committee by Representatives George Miller (D-CA) and Rep. John Kline (R-MN), and may be adopted before the end of…
By: Ron Kramer
On August 14, 2014, in DiGeronimo Aggregates, LLC, Case No. 13-4389 (6th Cir. August 14, 2014), the Sixth Circuit Court of Appeals held that employers have no cause of action against multiemployer fund trustees for their negligent management of plan assets. Right or wrong, the decision is bad for employers and…
Since the passage of the Pension Protection Act in 2006, there has been an ongoing debate as to whether a surcharge imposed by a multiemployer pension plan in critical status is part of the employer’s “contribution rate” such that that extra amount — which can be 10% of an employer’s contribution —…
By: Mark Casciari and Meg Troy
There are roughly 1,500 multiemployer pension plans covering more than 10 million American workers and retirees. A March report by the U.S. Government Accountability Office revealed chronic underfunding and potential insolvency of these plans, noting that in 2011, about 40% of plans remain in critical or endangered status.
The…
