Withdrawal Liability—A Big Problem for Unionized Employers

2019-03-27T13:57:48-06:00March 28th, 2019|Collective Bargaining Agreement, Construction Contractor Advisor, Withdrawal Liability|

Employers that are subject to a collective bargaining unit often are required to make contributions to a defined benefit pension plan sponsored by a union.  If the employer and the union part ways, the employer may be subject to withdrawal liability--even if the company has made all of its pension contributions.  And, this liability can cripple a company. This is a BIG Problem The underfunded status of multiemployer pension plans [...]