Remaining Employer Liability for Withdrawal Liability Payments on Insolvent Former Contributing Employer

[Guest EMM118]

Assume that five employers are contributing to a mutiemployer plan. Employer A withdraws and it is determined that Employer' A's withdrawal liability is $1,000,000. Emplyer A is insolvent, no solvent controlled group members exist and no piercing of the corporate veil is possible. Who is on the hook for the $1,000,000? Would this amount be amortized and paid over time by the other four contributing employers? Thanks. Ed

[Bill Ecklund]

That is exactly what happens. The liability does not go away. It is reallocated to the other contributing empoyers

[JanetM]

You never want to be the last man standing.