Partial Withdrawal Liability/Transfer between 2 units

[rhb401]

Company A is the parent of Company B. Both A and B operate in similar segments of the same industry. They each have collective bargaining agreements with the same union. However, each collective bargaining agreement provides for contributions to a different pension fund. Company B wishes to transfer a substantial number of employees from its payroll to Company A's payroll where the CBA provides for substantially lower contributions to that penson fund (there's no 70% issue here). Company B will continue to be liable to make contributions under its CBA for the remaining employees. Is there a partial withdrawal under Sec 4205 (b)(2), including the PPA "contract out" amendment?

Company B is trying to shift employees from the higher contribution CBA/pension fund to the lower CBA/pension fund. Both Funds have substantial withdrawal liabilities.

Comments would be appreciated.

RHB401

[Bill Ecklund]

Company A is the parent of Company B. Both A and B operate in similar segments of the same industry. They each have collective bargaining agreements with the same union. However, each collective bargaining agreement provides for contributions to a different pension fund. Company B wishes to transfer a substantial number of employees from its payroll to Company A's payroll where the CBA provides for substantially lower contributions to that penson fund (there's no 70% issue here). Company B will continue to be liable to make contributions under its CBA for the remaining employees. Is there a partial withdrawal under Sec 4205 (b)(2), including the PPA "contract out" amendment?

Company B is trying to shift employees from the higher contribution CBA/pension fund to the lower CBA/pension fund. Both Funds have substantial withdrawal liabilities.

Comments would be appreciated.

RHB401

Assuming that there is not a 70% CBU decline, the transfer should not result in a partial withdrawal.

[Guest Brian4]

I'm not sure that the situation described would always result in no withdrawal liability. To help in considering this, a description of the differences between company A and company B, and the different collective bargaining agreements, would help.