Impact of Default Schedule under a Rehab Plan on Withdrawal Liability Calculation

[Guest sprybe]

Has anyone encountered this or have any thoughts about how to handle? A participating employer in a multiemployer pension plan in critical status was briefly subject to the default schedule under the rehabilitation plan before withdrawing. Does the default schedule (which required a very high contribution rate) count when considering the "highest contribution rate at which the employer had an obligation to contribute under the plan" when calculating the amount of withdrawal liability under ERISA Section 4219? I can find no real guidance on this point, other than some secondary sources that indicate it is an open issue.

Any thoughts or ideas are greatly appreciated. Thanks!

[Effen]

I moved this to the multiemployer board thinking you might get better responses.

I don't think you will find any formal guidance as the withdrawal guidance has not been updated for PPA. My thought is that it would be considered in the calculation of the w/drawal payment.

[Peter Gulia]

sprybe, if you think that there's a plausible argument for why the contribution rate obliged under the rehabilitation schedule should not count in computing the withdrawal liability, consider asking the PBGC for an opinion letter.