ERISA 4221)(e)

[austin3515]

Got a client who is considering trying to get the employees out of the union pension plan. He asked for an estimate of withdrawal liaiblity and the response was that "they don;t have a withdrawal policy at this time." So essentially, they left the door open on them.

The Plan also does include a past service credit (they adopted maybe 6 or 7 years ago), which I would think would trigger a withdrawal liability at this stage for sure. Is there any way to compel them to provide a more concrete estimate?

[Guest Smash]

It is possible that the Plan has sufficient assets to cover the vested benefits and would not have withdrawal liability - there are a few well funded plans out there. A plan is required by law to provide an estimate of the prior year's withdrawal liability under ERISA 101 (but they can charge for the estimate). They are also required to provide a bunch of additional information like valuation reports. Some information can be obtained on the DOL website for free.