Limiting Collection Of Withdrawal Liability Against PE Funds
April 16, 2013, 12:37 PM EDT
Law360, New York (April 16, 2013, 12:37 PM EDT) -- In Sun Capital Partners III LP v. New England Teamsters and Trucking Industry Pension Fund (D. Mass. Oct. 18, 2012), a federal district court in Massachusetts concluded that a private equity fund was not a “trade or business” subject to the imposition of withdrawal liability and thus was not responsible for paying the withdrawal liability owed by one of its portfolio companies that had completely withdrawn from a multiemployer pension fund.
In so holding, the court rejected a Pension Benefit Guaranty Corporation Appeals Board opinion letter...