The Seventh Circuit had to determine the proper application of an employer’s prior partial withdrawal liability credit when calculating the employer’s current withdrawal liability.
After examining the language, context, and structure of the relevant statutes, the Seventh Circuit concluded that the credit MPPAA Section 1386(b)(1) provides to an employer’s withdrawal liability based on a prior partial withdrawal should be applied after the employer’s withdrawal liability is calculated employing the four-step process in Section 1381(b). The employer and a union pension fund disputed how exactly that credit should be applied. An arbitrator adopted the fund’s calculation, applying the credit at step two of the process. On appeal, the district court vacated the arbitration award, accepting instead the employer’s contention that the credit should be applied at the completion of all four steps. The appeals court concluded that the more natural reading of the MPPAA favored the employer’s construction and affirmed the district court (Consumers Concrete Corp. v. Central States, Southeast and Southwest Areas Pension Fund, Nos. 25-1765 and 25-1766 (7th Cir. Sept. 17, 2026)).
Withdrawal from pension fund. In 2017, the employer, Consumers Concrete, undertook a partial withdrawal from the multiemployer pension fund. The annual payments the employer was obligated to pay as a result of the 2017 partial withdrawal are uncontested.
Then in January 2019, the employer effected a complete...
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