Withdrawal Liability
Each Employer shall pay the Fund all amounts due as withdrawal liability resulting from a partial or complete withdrawal from the Fund in accordance with ERISA, as amended by the Multiemployer Pension Plan Amendments Act of 1980 and as it may be subsequently amended. The Trustees shall have full authority to adopt rules and regulations governing the determination and payment of withdrawal liability, consistent with the statue and any governmental regulations promulgated under it, and such rules and regulations adopted by the Trustees shall be binding on all Employers.
Withdrawal liability represents a withdrawing employer's share of the unfunded vested benefit liability ("UVB") of the Fund. The calculation of UVB is done on an annual basis and the absence of withdrawal liability for any particular plan year cannot be taken as assurance that there will be no withdrawal liability in the following plan year.
The Fund has no UVB as of March 31, 2007. This means that there is no withdrawal liability for Employers that withdraw from the Fund during the plan year April 1, 2007 - March 31, 2008. Whether there will be withdrawal liability for Employers that withdraw from the Fund during the plan year April 1, 2008 - March 31, 2009 cannot be determined until the actuarial valuation for the plan year ending March 31, 2008 is completed. The valuation is expected to be completed in October 2008.
For more information about withdrawal liability, see the attached notice to contributing employers.
|
