interest on delinquent contributions

[Guest JD698]

Can the parties to a collectively bargained agreement waive interest on delinquent payments in a pre court settlement?

Any help would be appreciated.

[KJohnson]

First, it is usually the trustee of a multiemployer fund that are due the contributions and so the trustees must choose whether or not to waive interest in a settlement. Actions by the parties to the CBA may not bind the trustees.

Prohibited Transaction Exemption 76-1 sets forth the criteria for multiemployer trustees to follow on if and when they will waive interest.

If these are elective deferral contributions in a 401(k) plan then there would be additional issues about restoring account balances. I am not sure if DOL has spoken to how delinquent elective deferrals to a multiemployer 401(k) plan intereact with prohibited transaction 76-1.

[Guest JD698]

I want to clarify my posting of 11/22/02. The delinquent contributions are those that were to be made by employers to a self-insured health fund.