Withdrawal Liability - Lamson Dugan & Murray LLP

The Bleak Future of Multiemployer Plans

Craig Martin2019-08-14T14:40:30-05:00August 9th, 2019|Construction Contractor Advisor, Multiemployer Plans, Withdrawal Liability|

The Pension Benefit Guaranty Corporation, the federal agency that oversees multiemployer benefit plans, issued its annual Projection Report earlier this month. And, the outlook is bleak. The agency is estimating that its insurance program will be insolvent in 2025 unless Congress provides substantial funding. The PBGC oversees multiemployer plans that cover approximately 10 million employees. Of the multiemployer plans covered by the PBGC, about 58% are unionized, while the remaining [...]

Withdrawal Liability—A Big Problem for Unionized Employers

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 [...]