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David M. PixleyBlog Posts

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‘Segal Blend’ Withdrawal Liability Calculation Violates ERISA, Court Holds in Milestone Decision

The use of the “Segal Blend” to calculate a company’s withdrawal liability when it withdrew from a multiemployer pension plan violated the Employee Retirement Income Security Act (ERISA), as amended by the Multiemployer Pension Plan Amendments Act (MPPAA), because it was not the actuary’s best estimate, the federal appeals court in Cincinnati has held in...
October 8, 2021

Pension Plan Withdrawal Liability Calculation Violates ERISA, Court Holds in Milestone Decision

The use of the “Segal Blend” to calculate a company’s withdrawal liability when it withdrew from a multiemployer pension plan violated the Employee Retirement Income Security Act, as amended by the Multiemployer Pension Plan Amendments Act, because it was not the actuary’s best estimate, the federal appeals court in Cincinnati has held in a milestone... Continue Reading
October 8, 2021

‘Segal Blend’ Withdrawal Liability Calculation Violates ERISA, Court Holds in Milestone Decision

The use of the “Segal Blend” to calculate a company’s withdrawal liability when it withdrew from a multiemployer pension plan violated the Employee Retirement Income Security Act (ERISA), as amended by the Multiemployer Pension Plan Amendments Act (MPPAA), because it was not the actuary’s best estimate, the federal appeals court in Cincinnati has held in... Continue Reading
October 8, 2021

Withdrawal Liability – Real Property Presumed a Trade or Business

An employer’s permanent cessation of contributions to a multiemployer pension plan can trigger withdrawal liability. This liability may reach affiliated trades or businesses with sufficient common ownership to be under “common control” with the employer. The affiliates would be jointly and severally liable for withdrawal liability incurred and unpaid by the withdrawing affiliate. Courts often...… Continue Reading
August 8, 2021

Successor Liability Claims Found Insufficient to Establish Federal Question Jurisdiction

As a general rule, an asset purchaser does not assume the seller’s liabilities, including its ERISA obligations. Courts, however, have formulated an exception to this general rule via the doctrine of successor liability.  Successor liability is an equitable doctrine requiring a court to “strike a proper balance between on the one hand preventing wrongdoers from... Continue Reading
July 30, 2021

PBGC Issues Interim Rule On Multiemployer Pension Bailout; Impact On Employers Unclear

On July 9, 2021, the PBGC issued its interim final rule (the “Rule”) on the process for eligible troubled Multiemployer Pension Plans (“MEPPs”) to apply for and obtain Special Financial Assistance (“SFA”) under the American Rescue Plan Act of 2021 (“ARPA”). The Rule was posted on PBGC’s website and became effective as guidance on July...… Continue Reading
July 12, 2021

Multiemployer Pension Plan Reform/Bailout May Be Greater Than Expected; Guidance Still Forthcoming

The Emergency Pension Plan Relief Act of 2021 (EPPRA), enacted as part of the American Rescue Plan Act of 2021 (ARPA), contained unprecedented financial relief for the most troubled multiemployer pension plans (MEPPs). The MEPPs community is eagerly awaiting guidance from the Pension Benefit Guaranty Corporation (PBGC) on the requirements for MEPPs to apply for the special...… Continue Reading
June 7, 2021

Will American Rescue Plan Act Multiemployer Pension Provisions Bring Relief to Employers?

The American Rescue Plan Act of 2021 includes a modified version of the Butch Lewis Act, referred to as the Emergency Pension Plan Relief Act of 2021 (EPPRA), which restores to financial health more than 100 failing multiemployer pension plans. However, the measure falls well short of any meaningful long-term funding reform.  More…… Continue Reading
March 15, 2021

Will American Rescue Plan Act Multiemployer Pension Provisions Bring Relief to Employers?

The American Rescue Plan Act of 2021 includes a modified version of the Butch Lewis Act, referred to as the Emergency Pension Plan Relief Act of 2021 (EPPRA), which restores to financial health more than 100 failing multiemployer pension plans. However, the measure falls well short of any meaningful long-term funding reform.  More Continue Reading…
March 15, 2021

What Took So Long? Democrats Quickly Introduce Pension Relief Bill

House Ways and Means Committee Chairman Richard Neal (D-Mass.) introduced the Emergency Pension Plan Relief Act of 2021 (EPPRA) on January 21, 2021. EPPRA represents the latest legislative attempt to address the well-documented multiemployer pension crisis. EPPRA is significant in that it is the first legislation introduced by Chairman Neal under the Biden administration, signaling a possible... Continue Reading…
January 24, 2021

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