Review critical challenges facing pension withdrawal liability.
Prior to considering a pension withdrawal, it is to the employer’s advantage to have every piece of information at their disposal. Under ERISA §101(l), a contributing employer to a multiemployer plan is permitted to request a notice of potential withdrawal liability. Upon request, the plan sponsor or administrator of a multiemployer plan must provide this notice within 180 days of request. If the plan fails to provide this information within the 180-day period, it is subject to a hefty penalty. This white paper reviews other methods to consider to reduce exposure to withdrawal lability and discusses how to resolve disputes.
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