White Paper

6 Pages
  • 6 Pages

Considerations When Preparing to Withdraw From a Pension

 

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.