The attorneys at Virginia & Ambinder, LLP, have extensive experience in withdrawal liability matters. Under the Multiemployer Pension Plan Amendments Act of 1980 (MPPAA), an employer that withdraws from a multiemployer defined benefit pension plan is required to pay withdrawal liability equal to the employer's allocable share of the plan's unfunded vested benefits. We can help make sure that you comply with these requirements and are not violating the terms of the plan.
As soon as practicable after an employer withdraws from a plan, MPPAA requires the plan sponsor (usually a joint labor-management board of trustees) to determine the employer's withdrawal liability under one of several complex formulas. The plan sponsor must notify the employer of the amount of its withdrawal liability and the schedule of payments prescribed by law. If you have questions about how to comply with your employee benefit plan requirements, we encourage you to contact the law firm of Virginia & Ambinder, LLP, today to schedule a free consultation at our New York City or New Jersey offices.
Additional Withdrawal Liability Requirements and Concerns
Within 90 days after the employer receives the notice for payments, the employer is entitled to ask the plan sponsor to review any specific matter relating to the assessment. For example, the employer might dispute the calculation of the plan's unfunded vested benefits. You may also have questions concerning the allocation of that unfunded vested benefit amount among employers, or even whether a withdrawal has occurred. Even a defense based on a pure issue of law must generally be raised at this stage. Our lawyers can help you assess these issues and request an appropriate review.
After a reasonable review of any matter raised, the plan sponsor must notify the employer of the plan sponsor's decision and the reasons for that decision. Under MPPAA, any remaining dispute between the employer and the plan sponsor must then be resolved by arbitration. Our New York City pension plan withdrawal liability attorneys can represent you at this stage as well as counsel you about your obligations and the terms of the retirement plan at issue. Once the arbitrator issues a decision, it is subject to review by the federal courts under a standard that is less deferential to the arbitrator than the standard applied to most other types of arbitration decisions.
New Jersey and New York Employee Benefit Plan Lawyer Familiar With the Arbitration Process
The employer generally must initiate arbitration within 60 days after the earlier of
(1) the date of notification to the employer of the plan sponsor's decision on the employer's request for review, or
(2) 120 days after the date of the employer's request for review.
If the employer fails to initiate arbitration within that period, then it generally waives its right to challenge the withdrawal liability assessment in court (even if it is erroneous), and the plan sponsor can file a lawsuit to collect the assessment. Furthermore, under MPPAA's "pay now, dispute later" system, the employer generally must make interim withdrawal liability installment payments to the plan, starting no more than 60 days after the assessment, even if the employer has submitted a request for review or initiated arbitration. For the most part, the courts have strictly enforced this requirement.
Virginia & Ambinder, LLP, is highly skilled at guiding its clients through each step of this process. Whether you need guidance concerning plan liability, need arbitration representation, or are contemplating litigation because of plan requirements, we have the skill and experience to offer effective counsel.
Contact us today to discuss your needs. Our office hours are 8 a.m. to 6 p.m. weekdays. We accept weekend and late-evening appointments by prearrangement when necessary and convenient. Spanish and Polish language services are available.
