Plan Provisions Relating to the Assessment of
Withdrawal Liability Against Employers
The following excerpt from the Fund’s Pension
Plan refers and relates to the assessment of withdrawal liability against an
employer that withdraws, voluntarily or involuntarily, from participation in the
The Trustees of the Trust Fund have adopted the following
rules to govern the calculation and collection of withdrawal liability under the
Multiemployer Pension Plan Amendments Act of 1980 ("MPPAA"), a statutory
amendment to the Employee Retirement Income Security Act of 1974 ("ERISA").
These rules shall be interpreted consistently with all applicable laws and
policies under ERISA. The statutory provisions, and accompanying regulation, of
MPPAA are incorporated herein by reference.
Section A. Method for Computing Withdrawal Liability:
Withdrawal Liability will be calculated under the Presumptive Method, set
forth in ERISA § 4211 (b).
Section B. Determination of When Contributions are Made:
Contributions shall be considered paid in the year in which they accrue,
provided that they are paid by May31 of the following year. Contributions made
to the Fund after the May 31 cut-off date will be considered paid in the year
in which they are received by the Fund.
Section C. Actuarial Assumptions:
In accordance with the advice of the Trust Fund's enrolled actuary, the
actuarial assumptions used in calculating withdrawal liability shall be the same
actuarial assumptions used in determining the Trust Fund's minimum funding
standards under the Internal Revenue Code.
Section D. Payment of Withdrawal Liability:
An employer which is assessed withdrawal liability shall have the following
options for satisfaction of the debt:
a. to pay the entire withdrawal liability immediately in
b. to pay the withdrawal liability in annual installments,
determined under ERISA § 4219, provided that each installment is fully paid at
the beginning of the year for which the installment is due; or
c. to pay the entire sum in quarterly installments
determined by the Administrator in accordance with ERISA § 4219.
The Administrator shall have authority to make reasonable
changes in any payment schedule promulgated under the Rule, provided that the
modified schedule secures for the Trust Fund all rights guaranteed by ERISA.
Section E. Review of Withdrawal Liability:
An employer which is assessed withdrawal liability may seek review through
the following procedures. The time limits for invoking these procedures are set
forth in ERISA §§ 4219 and 4221.
a. Request for Review
Pursuant to ERISA § 4219(B)(2)(A), an employer may:
(1) request the Trust Fund to review any specific matter
relating to determination of the withdrawal liability or the payment
(2) identify any inaccuracy in the assessment; and/or
(3) furnish any additional relevant information.
Any such Request for Review shall be made in writing,
addressed to the Administrator, and shall identify the specific matter which
the employer challenges or questions.
The Administrator shall make a preliminary examination of
each Request For Review. The Administrator shall then either issue a ruling on
the Request for Review or refer the matter to the Trustees for a final ruling.
If the matter is submitted to the Trustees, each Trustee may be consulted and
vote individually if the Administrator determines that a formal meeting is not
An employer which wishes to submit any disputes concerning withdrawal
liability to arbitration under ERISA § 4221 shall do so under the auspices of
the Philadelphia Regional Office of the American Arbitration Association
("AAA"). The employer must initiate the arbitration proceeding in accordance
with the AAA rules and simultaneously serve upon the Administrator written
notice of the initiation of arbitration and the issues that shall be
The employer shall pay the filing fee necessary to initiate
the arbitration. Unless the Administrator expressly agrees otherwise in
writing, all arbitration hearings will be held in Philadelphia, Pennsylvania.
As provided by ERISA §§ 4201 and 4301, any party to an arbitration under
ERISA § 4221 may file suit in United States District Court to enforce, vacate,
or modify the arbitration award.
Section F. Remedies:
In litigation, the Trust Fund shall be entitled to all remedies permitted by
law. Liquidated damages shall be 20% (or such higher percentage as may be
permitted under federal or state law) of the amount owed by the employer, unless
the Trust Fund is entitled to a greater sum by a doubling of the interest.
Section G. Free Look:
Pursuant to ERISA Section 4210, 29 U.S.C Section 1390, an employer who
withdraws form the Plan in a complete or partial withdrawal is not liable to the
Plan if the employer:
(a) first had an obligation to contribute to the Plan after
September 26, 1980; and
(b) had an obligation to contribute to the Plan for no more than five
consecutive plan years preceding the date on which the employer withdraws; and
(c) was required to make contributions to the Plan for each such plan year in
an amount equal to less than two percent of the sum of all employer
contributions made to the Plan for each such year as reported on the Form 5500
filed by the Plan for each such plan year; and
(d) has never avoided withdrawal liability because of the application of this
Section G of Article IX.
Section H. Construction Industry Exemption:
The Construction Industry Exemption authorized by Section 4203(b)(1)(B)(ii)
of the Employee Retirement Income Security Act of 1974, as amended, 29 U.S.C. §
1383(b)(1)(B)(ii), shall apply to all withdrawals that occur after September 12,