Turning an “American Dream Project” into a nightmare for a New Jersey contractor, the U.S. Court of Appeals for the Third Circuit has held that, under ERISA’s multiemployer pension plan provisions (the Multiemployer Pension Plan Amendments Act of 1974 or MPPAA), a MPPAA employer includes any entity that is obligated to contribute to a plan as either a direct employer or in the interest of one.
Articles Discussing Multi-Employer Pension Plans.
Don’t White-Knuckle Withdrawal Liability
It’s no secret that the statutory deck under ERISA is stacked heavily in favor of multiemployer pension plans (MEPPs) and against employers contributing to (or withdrawing from) Taft-Hartley trust funds. For example, an employer who receives a demand to pay its alleged allocable share of a multiemployer pension plan’s unfunded
Understanding the Multiemployer Pension Plan Construction Industry Exemption
The Multiemployer Pension Plan Amendments Act (MPPAA), the Employee Retirement Income Security Act’s (ERISA) progeny, can create significant unexpected liabilities for companies that have agreed to collective bargaining agreements (CBAs) requiring participation in and contributions to multiemployer-defined benefit pension funds (often referred to as Taft-Hartley Funds). However, a special exemption is available to employers in the construction industry.
PBGC Issues Interim Rule On Multiemployer Pension Bailout; Impact On Employers Unclear
On July 9, 2021, the PBGC issued its interim final rule (the “Rule”) on the process for eligible troubled Multiemployer Pension Plans (“MEPPs”) to apply for and obtain Special Financial Assistance (“SFA”) under the American Rescue Plan Act of 2021 (“ARPA”). The Rule was posted on PBGC’s website and became
Multiemployer Pension Plan Reform/Bailout May Be Greater Than Expected; Guidance Still Forthcoming
The Emergency Pension Plan Relief Act of 2021 (EPPRA), enacted as part of the American Rescue Plan Act of 2021 (ARPA), contained unprecedented financial relief for the most troubled multiemployer pension plans (MEPPs). The MEPPs community is eagerly awaiting guidance from the Pension Benefit Guaranty Corporation (PBGC) on the requirements for MEPPs
Seriously Underfunded Multiemployer Defined Benefit Pension Plans—Relief Finally Arrives
We had pondered when this day would come. The doomsday scenario that the Pension Benefit Guaranty Corporation (PBGC) would become insolvent in five to six years is now old history. (The new estimated time of PBGC insolvency is the mid-2040s.) Plan participants, the plans, employers, unions, and the PBGC had
Will American Rescue Plan Act Multiemployer Pension Provisions Bring Relief to Employers?
The American Rescue Plan Act of 2021 includes a modified version of the Butch Lewis Act, referred to as the Emergency Pension Plan Relief Act of 2021 (EPPRA), which restores to financial health more than 100 failing multiemployer pension plans. However, the measure falls well short of any meaningful long-term funding reform.
Is Relief for the Plight of Multiemployer Pension Plans in the Works?
I – Overview of the Butch Lewis Emergency Pension Plan Relief Act
The much-heralded Butch Lewis Emergency Pension Plan Relief Act of 2021 (the “Butch Lewis Act of 2021”) is closer to becoming a reality as part of the COVID-19 relief bill, which is set for a vote in the
Congress Considers New Multiemployer Pension Reform
Without congressional intervention, about 100 multiemployer pension plans are expected to become insolvent in the next 20 years, and some much sooner. In other words, for these pension plans, their liabilities to retired employees and current employees with vested benefits far outweigh their assets and incoming contributions.
The Emergency Pension Plan Relief Act Proposes Aid to Struggling Multiemployer Pension Plans
House Education and Labor Chairman Bobby Scott (D-VA) recently introduced legislation that seeks to provide aid to multiemployer pension plans (MEPs) facing insolvency. Entitled the Emergency Pension Plan Relief Act (EPPRA), the bill would fund this directly from the U.S. Treasury.
The Emergency Pension Plan Relief Act Proposes a Bailout of Struggling Multiemployer Pension Plans
House Education and Labor Chairman Bobby Scott (D-VA) recently introduced legislation that seeks to rescue multiemployer pension plans (MEPs) facing insolvency. Entitled the Emergency Pension Plan Relief Act (EPPRA), the bill would fund this rescue directly from the U.S. Treasury.
PBGC Finalizes its Rule Simplifying the Calculation of Withdrawal Liability for Multiemployer Pension Plans
On January 8, 2021, the Pension Benefit Guaranty Corporation (PBGC) issued its final rule modifying the calculation of withdrawal liability by multiemployer pension plans. This final rule amends the agency’s regulations on allocating unfunded vested benefits to withdrawing employers (29 C.F.R. § 4211) and notice, collection, and redetermination of
Manufacturers and Multiemployer Pensions — The Importance of Monitoring Withdrawal Liability
Approximately a quarter of the workforce covered by a traditional pension plan is in a multiemployer plan, according to the U.S. Bureau of Labor Statistics. Many manufacturers that participate in such plans are unaware their largest contingent liability may stem from their allocable share of unfunded vested benefits, or withdrawal liability.
Multiemployer Plan Audits During a Pandemic — Mitigating the Employer’s Risk
A global pandemic has not stopped multiemployer plans from conducting employer payroll audits.
Will New Stimulus Bill Include Multiemployer Pension Reform?
What could be in the next stimulus bill in response to the COVID-19 pandemic? Congress reportedly is working on a bill (dubbed “Stimulus 3.5”) that includes additional funding for the Paycheck Protection Program created by the CARES Act. Will the new stimulus bill address long-awaited reforms to the multiemployer pension
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