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Multiemployer Benefit Plans/Withdrawal Liability

Assisting Employers That Participate in Multiemployer/Taft-Hartley Plans

Employee Benefits Law Group can guide employers in multiemployer/Taft-Hartley plans to help protect them from withdrawal liability and ensure they are complying with ERISA.

We'll help you identify the pitfalls of withdrawal liability and provide sound solutions.

Understanding and Minimizing Your Withdrawal Liability Exposure

ERISA’s "withdrawal liability" provisions impose financial liability on employers that withdraw from an underfunded multiemployer pension plan. Much of the legal advice given in connection with withdrawal liability involves how to structure and document various business transactions to avoid, minimize or shift withdrawal liability. When it comes to withdrawal liability, it's not just knowing that it will be triggered, but who will be responsible to pay for it. Employee Benefits Law Group can help:

    • Determine if there has been, or will be, a withdrawal or partial withdrawal in connection with a business transaction.
    • Analyze which business entities will or will not be responsible to pay withdrawal liability.
    • Determine if there will be withdrawal liability for the employer in the context of the sale of the business.
    • Determine if withdrawal liability can be avoided through use of the "sale of assets" exception and how to structure a transaction so that it will apply.
    • Comprehensively review and give advice on provisions of asset sale agreements that could have a bearing on the parties' responsibility for withdrawal liability.
    • Show you how to:
        • Transfer the plan's liabilities with respect to covered employees to a new single-employer defined benefit pension plan.
        • Negotiate with the multiemployer plan to transfer some of the plan's assets to the new single-employer plan to fund the transferred liabilities.
        • Negotiate for zero withdrawal liability for the withdrawing employer if a transfer occurred.
        • Replace the defined benefit pension plan with a defined contribution plan for future benefits.

"My job as a TPA is to come in after the decisions are made and make everything work. I never worry about plans designed by Employee Benefits Law Group."

– Beth Harrington, President & Founder, Benefit Resources, Inc.