{"id":582,"date":"2012-06-01T08:33:49","date_gmt":"2012-06-01T14:33:49","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=582"},"modified":"2012-06-01T08:33:49","modified_gmt":"2012-06-01T14:33:49","slug":"a-quick-look-at-withdrawal-liability-for-employers-in-the-building-and-construction-industry","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/a-quick-look-at-withdrawal-liability-for-employers-in-the-building-and-construction-industry\/","title":{"rendered":"A Quick Look at Withdrawal Liability for Employers in the Building and Construction Industry"},"content":{"rendered":"

Employers who contribute to multiemployer pension funds are more and more concerned with unfunded liability and potential withdrawal liability.\u00a0 That exposure can be substantial and it is important to prepare to deal with it before taking any actions that trigger liability.\u00a0 But within the concept of withdrawal liability generally, there is a special consideration for employers in the building and construction industry generally that merits a closer.\u00a0 It provides an exception to withdrawal liability in certain circumstances involving the building and construction industry.<\/p>\n

ERISA generally provides that an employer who ceases to have a contribution obligation to a plan has a withdrawal.\u00a0 Then it has a special section that provides that in the case of (1) an employer that has an obligation to contribute under a plan for work performed in the building and construction industry, a complete withdrawal occurs\u00a0when (2) substantially all the employees with respect to whom the employer has an obligation to contribute under the plan perform work in the building and construction industry, UNLESS (3) the plan primarily covers employees in the building and construction industry, or\u00a0is amended to provide that this subsection applies to employers described in this paragraph, and then\u00a0ONLY\u00a0IF (4) the employer\u00a0continues to perform work in the jurisdiction of the collective bargaining agreement of the type for which contributions were previously required, or\u00a0resumes such work within 5 years after the date on which the obligation to contribute under the plan ceases, and does not renew the obligation at the time of the resumption.<\/p>\n

Each step is important.\u00a0 (1) are you an employer in the building and construction industry?\u00a0 The term “building and construction industry” is not defined in MPPAA but it is under 8(f) of the Taft-Hartley Act, 29 U.S.C. Sec. 158(f), which contains the same term.\u00a0 Section 8(f) is applicable to employers “engaged primarily in the building and construction industry, defined as “subsuming the provision of labor whereby materials and constituent parts may be combined on the building site to form, make or build a structure.”\u00a0 It takes a case by case review of your business, but you don’t get the exception\u00a0unless you are\u00a0in the building and construction industry.<\/p>\n

Step (2), substantially all of your employees have\u00a0to perform work in the building and construction industry.\u00a0 Not all of them, but substantially all.\u00a0\u00a0So you have to determine how many\u00a0using the same criteria to determine if the company itself is\u00a0in the industry.\u00a0 Step (3) requires you to contribute to a plan that primarily covers\u00a0employees in the industry, or has specifically been amended to state the exception applies.\u00a0 So you have to review the plan and know who it covers and what it says before knowing if you get the exception.\u00a0 Finally, step (4).\u00a0 If you don’t continue to perform covered work in the jurisdiction and don’t resume performing covered work for at least 5 years, then there is no withdrawal.<\/p>\n

So why bring it up?\u00a0 Because this 4 step analysis is something that should be done BEFORE a withdrawal occurs.\u00a0 Don’t withdraw and assume you are exempt under this exception.\u00a0 Research each step carefully to make sure the exception really applies or the results could be disastrous.\u00a0 And of curse, make sure to consult with your attorney at Fox Rothschild for assistance.<\/p>\n

via A quick look at withdrawal liability for employers in the building and construction industry – Lexology<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Employers who contribute to multiemployer pension funds are more and more concerned with unfunded liability and potential withdrawal liability.\u00a0 That exposure can be substantial and it is important to prepare to deal with it before taking any actions that trigger liability.\u00a0 But within the concept of withdrawal liability generally, there is a special consideration for… Continue reading A Quick Look at Withdrawal Liability for Employers in the Building and Construction Industry<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[14],"tags":[],"class_list":["post-582","post","type-post","status-publish","format-standard","hentry","category-construction-2","entry"],"jetpack_publicize_connections":[],"yoast_head":"\nA Quick Look at Withdrawal Liability for Employers in the Building and Construction Industry - 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