Withdrawal Liability Infinity Payer

[Brian Haynes]

We know that if a pension fund has had a mass withdrawal termination, employers must pay their withdrawal liability payments without the benefit of the 20-year cap on payments (redetermination liability). Such employers are referred to as "infinity payers" and may have to continue making payments for decades. However, it is my understanding that there is a practical limitation on the length of the infinity payments. This occurs when the pension fund no longer has any living participants and beneficiaries so that there are no longer any pension payments being made and no reason for the associated pension trust to continue. Upon such trust termination, it is my understanding that employers no longer have to continue making withdrawal liability payments. Does anyone have any authority that confirms this understanding? I am having trouble finding it athough it makes sense and several actuaries so believe. Thanks.

[My 2 cents]

I am sure that it is a great comfort to the "infinity payers" that they will be able to stop after all of the participants and beneficiaries have died! Reminds me a bit of Wagner's Flying Dutchman, condemned to sail the seas forever, longing for the end of the earth when there will be no more oceans.