Employee Benefit Plan Lawyers Representing Clients in Cook County and Beyond
Withdrawal liability is a very important issue for businesses that contribute to a multiemployer pension plan. Employers can face substantial exposure under these laws. If your company is going out of business, or if you are reducing your staff levels, it is important to consider the potential implications. An attorney can be instrumental in helping you comply with the applicable regulations and minimize your own potential liability.
We are the law firm of Law Offices of Joseph P. Berglund, P.C., Based in Oak Brook, we represent businesses across northeast Illinois.
What is Withdrawal Liability?
Withdrawal liability is covered under the Multiemployer Pension Plan Amendments Act of 1980 (MPPAA). This law was created to prevent pension funds and other retirement plan benefits from being underfunded. After an employer stops making contributions to the plan, the MPPAA requires employers to continue funding a portion of a pension plan’s unfunded vested liabilities. Withdrawal liability can also apply when an employer significantly reduces its contribution levels. Issues of withdrawal liability can arise when an employer is going out of business or is drastically reducing its workforce.
Helping Clients Reduce Withdrawal Liability
There are a number of strategies that can blunt the impact of withdrawal liability. For example, the sale of company may not bring on withdrawal liability. Unique withdrawal liability rules apply to certain industries, including the construction industry. Specifically, if a construction company stops contributing to a plan, it is not liable for withdrawal liability unless it returns to work in the construction industry within five years. Our law firm has substantive experience representing construction companies, and we can guide our clients to develop successful strategies.
Contact the DuPage County Pension Plan Withdrawal Liability Lawyers of Law Offices of Joseph P. Berglund, P.C.
We welcome the opportunity to discuss your situation. Call toll free at 800-807-2760 to schedule a consultation. We can also be reached by e-mail.