Takeaway
- The Third Circuit recently expanded the ability of multiemployer pension plans to collect withdrawal liability from affiliated employers, highlighting the need for employers to engage counsel with specialized expertise in this complex and dynamic area of law.
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The Third Circuit’s recent ruling enhanced a pension fund’s ability to pursue withdrawal liability collection against affiliated employers. The decision underscores the evolving nature of ERISA, its remedial purpose, and the challenges facing employers with multiemployer pension obligations.
Under ERISA, withdrawal liability assessments that are not timely contested become due and owing, permitting the fund to pursue collection against any affiliated employer. Here, the court held that a settlement agreement resolving the initial withdrawal liability assessment was itself a revised withdrawal liability assessment. When the “revised” assessment was (not surprisingly) not challenged in arbitration, the fund was permitted to pursue collection of the amounts due under the settlement agreement against affiliates not party to the agreement. This interpretation opens new avenues for pension funds to pursue claims against affiliated employers, emphasizing the broad and protective stance courts often take towards pension plan participants to the detriment of employers.
To delve deeper into the specifics of this ruling and its broader implications, read the full article on our website. It provides a comprehensive analysis of the case, the court’s reasoning, and practical takeaways for employers and practitioners alike. Don’t miss out on this essential update in employee benefits law.
