Multiemployer Pension Plans: Multiple Risks

Law360, New York (May 12, 2009, 12:00 AM EDT) -- Once, employers did not think twice about participating in multiemployer pension plans. However, as a result of a confluence of factors, including the economic recession, multiemployer pension plans are now at historic levels of underfunding.

Underfunding can create liabilities — including increased contribution obligations under the Pension Protection Act (“PPA”) and withdrawal liability under the Multiemployer Pension Plan Amendments (“MPPAA”). These liabilities can be both unanticipated and catastrophic. Thus, the need for an action plan has never been greater.

A Post-Armageddon Assessment of Funding in Multiemployer...
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