Defining Role Of Third Parties In Withdrawal Liability

Law360, New York (April 20, 2012, 1:14 PM EDT) -- The Sixth Circuit Court of Appeals has held that a collective bargaining agreement (CBA) provision, which obligated a union to indemnify an employer for withdrawal liability, did not violate public policy under the Employee Retirement Income Security Act of 1974 (ERISA), as amended by the Multiemployer Pension Plan Amendments Act of 1980 (MPPAA).

This issue was undecided in the Sixth Circuit, and the decision provides some much-needed guidance for employers. Shelter Distribution Inc. v. Gen’l Drivers, Warehousemen & Helpers Local Union No. 89, No. 11-5450, Sixth...
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