A federal district court in Illinois became the first court to rule that an employer’s credit for a prior partial withdrawal should be applied at the end of the statute’s “waterfall” for calculating withdrawal liability. The case is Consumers Concrete Corp. v. Central States, S.E. and S.W. Areas Pension Fund, Nos. 23-cv-2695 & 23-cv-3005
multiemployer funds
Seventh Circuit Affirms that Employer’s Withdrawal Liability Cannot Be Based on Post-Rehabilitation Plan Contribution Increases
By Justin Alex & Neil V. Shah on
We recently reported on a district court decision holding that the Central States Pension Fund’s calculation of withdrawal liability should not have included contribution rate increases imposed after the Fund’s implementation of a rehabilitation plan. In Central States, S.E. & S.W. Pension Fund v. Event Media Inc., Nos. 24-1739 & 1740-42, 2025 WL 1185368…
District Court Rules Employer’s Withdrawal Liability Cannot Be Based on Post-Rehabilitation Plan Contribution Increases
By Neil V. Shah & Justin Alex on
In Central States, S.E. & S.W. Pension Fund v. McKesson Corp., No. 23-cv-16770, 2025 WL 81358 (N.D. Ill. Jan. 13, 2025), the district court affirmed that a multiemployer pension plan’s calculation of withdrawal liability should not have included contribution rate increases imposed after the plan had implemented a rehabilitation plan.
PBGC Issues Final Rule with Simplified Methods for Withdrawal Liability Calculations
By Justin Alex & Randall Bunnell on
The Pension Benefit Guaranty Corporation (“PBGC”) issued a final rule on January 7, 2021 that impacts the calculation of withdrawal liability by multiemployer pension plans in endangered or critical status. The final rule applies to withdrawals from multiemployer plans that occur in plan years beginning on or after February 8, 2021.
The final rule contains…