Controlled group withdrawal liability

[Guest smckae]

This question assumes that a "rolling five" formula is adopted for withdrawal liability from a multiemployer plan and that for the withdrawing employer, a controlled group was created by property transactions in the last year of operations. The operating entity/actual employer failed shortly afterward and is defunct. The second entity owns the land on which the operating entity conducted business, has no other assets, and never had employees.

Would it be correct to calculate any liability for the surviving entity on the basis of the contributions made during the months in which the 80/50 tests are met, and only those contributions and not others during the computation period?

[JanetM]

I toss in my two cents. The contributing employer, now defunct part of control group, would essentially have the remaining control group paying the tab. If the ER that took over the defunct business assets has no employees then there is nothing to figure in W/D calc. The sticky part is if others in the group are contributing members of the plan. If so you end up with the sins of the others to pay for.