namealreadyinuse Posted August 8, 2006 Share Posted August 8, 2006 Any ideas about how to address potential withdrawal liability after an employee led de-certificaiton of the union. There was no employer involvement/pressure but now no bargained employees are employed and it will be a technical withdrawal we are afraid. Any ideas/similar experiences? Link to comment Share on other sites More sharing options...
JanetM Posted August 8, 2006 Share Posted August 8, 2006 You are stuck on this one since you have permanently ceased obligation to contribute to the plan. Are you by chance in one of the groups that have some exceptions? Building and construction Trucking Household goods moving Public warehousing Retail food Certain segments of the entertainment industry JanetM CPA, MBA Link to comment Share on other sites More sharing options...
jpod Posted August 8, 2006 Share Posted August 8, 2006 namealready: I am curious and not trying to make a point, but what will be your annual w/l payment as compared to the money you'll save on contributions to the m-employer plan? Also, will you amend your own tax-qualified plans to exclude these workers or will you have a coverage problem if you don't cover them? Link to comment Share on other sites More sharing options...
namealreadyinuse Posted August 8, 2006 Author Share Posted August 8, 2006 Withdrawal looks like it will be off the charts. Payments under the CBA would definitely be preferable. Link to comment Share on other sites More sharing options...
Effen Posted August 9, 2006 Share Posted August 9, 2006 Just because your w/drawal liability will be "off the charts" doesn't mean you will ultimately pay for it. Keep in mind that your actual w/drawal payment is based on the current negotiated contribution rate and is limited to a 20-yr period. Because of these restrictions, it is fairly common that ER's ultimately ends up paying far less than their actual w/drawal liability. The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice. Link to comment Share on other sites More sharing options...
J2D2 Posted August 9, 2006 Share Posted August 9, 2006 name, I agree with the prior posts. Unfortunately, I don't think yours is an unusual situation. I've seen several circumstances where the withdrawal liability payment exceeded the employer's "regular" contributions to the multiemployer fund. Link to comment Share on other sites More sharing options...
namealreadyinuse Posted August 14, 2006 Author Share Posted August 14, 2006 The proposed assessed payment is off the charts. Anybody car to share experiences or guidelines on how negotiable these are? Link to comment Share on other sites More sharing options...
JanetM Posted August 14, 2006 Share Posted August 14, 2006 It has been my experience with sheet metal workers national pension plan they don't budge much. The various regs are found between ERISA 4203 and 4221. JanetM CPA, MBA Link to comment Share on other sites More sharing options...
Bill Ecklund Posted August 15, 2006 Share Posted August 15, 2006 The formula for calculating the payment is in the statute. It is based on the average of the CBU's over a period of time, multiplied by the highest rate in the CBA. It is intended to somewhat replicate the payment made under the CBA prior to withdrawal. It is an annual payment, but plans can adopt rules to have it paid quarterly or monthly. Link to comment Share on other sites More sharing options...
Brian Haynes Posted October 23, 2006 Share Posted October 23, 2006 When an employer is willing to pay the withdrawal liability amount in a lump-sum, I have been able to negotiate a discount between 10-15%. Link to comment Share on other sites More sharing options...
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