Employer Withdrawal Liability

An employer who totally or partially withdraws from a multiemployer plan is liable for their share of the plan’s unfunded vested benefits. Since the plan maintains responsibility to pay future pensions of employees with vested benefits, withdrawal liabilities are intended to make up the departing employer’s funding shortfall.

Lindabury’s Employee Benefits group assists Boards of Trustees of multiemployer defined benefit plans draft and enforce uniform rules and procedures regarding withdrawal liability policies. We work with Trustees to monitor employer contributions, responding to information requests from employers and determine withdrawal liability assessments and payment schedules including the collection of liquidated damages, interest and collection costs. We represent funds in both arbitration and litigation proceedings against employers who have not satisfied their withdrawal liability obligations.