multiemployer pension and welfare plan resources

[Guest kurt johansen]

Can anyone recommend some good resources that deal specifically with fiduciary issues within multiemployer plans? I have been asked to do research on a number of fiduciary issues including reciprocity agreements, settlement of contribution liability, etc.

[KJohnson]

International Foundation has several books on multiemployer plan issues. You can get to their website by clicking on their banner in benfitslink. They also have a "collections" conference once a year and you might be able to get that material. They also sometimes have reciprocity presentations at their annual meeting.

Reciprocity--There really is not that much out there. The hot issue several years back was whether DC to DB reciprocity could be a forfeiture or cutback. Multi DC Plans typically have immediate vesting while DB Plans typically have five year cliff(or up until recently 10 year cliff). So if DC reciprocates to DB is there a cutback or forfeiture. However "money-follows-the-man" reciprocity agreements typically provide that the "away fund" is merely a conduit to the "home fund" so the DC plan can argue that no benefit was ever accrued.

I think there was one Asbestos Workers case out of D.C. District Court in the early 80's adressing some fiduciary issues in reciprocity collections (later vacated on other grounds by the D.C. Circuit). This is a tricky issue on whether Home Fund or Away Fund has the fiduciary obligation (or a combination of both). Most reciprocity agreements are silent on this issue.

PBGC does have a letter on reciprocity and withdrawal liability.

As to delinquencies look at PTE 76-1--this is still the definitive statement on Trustee obligations. There are a couple of follow up DOL opinion letters (one on allocating delinquencies among a family of funds).

[This message has been edited by KJohnson (edited 10-22-1999).]