Insolvent Multiemployer Welfare Fund - ESRP requirements

Hello,

Does anyone know whether the contributing employers of a multiemployer welfare plan are still responsible for an ESRP if they are unable to provide benefits to their full-time ees and dependents?  Would the fund/contributing employers still be required to provide coverage or face penalties?  I took a look at IRM 5.9.4.1 which discusses bankruptcy and insolvency and ERSP assessments, but only when a 226-J letter has been issues either pre- or post-petition in bankruptcy.  Does anyone know of any other regulations or guidance exists that discusses this topic?  My initial thought is that generally an employer, including a multiemployer, is not required to offer coverage.  However, if the multiemployer is an ALE and does not offer coverage to its full-time employees and their dependents, then the employer will be subject to an ESRP.  According to the IRM, the ESRP excise tax can be included as either a pre- or post-petition, depending on when the ESRP assessment is made. However, the IRM does not discuss whether a multiemployer's insolvency absolves the employers from offering the requisite coverage to its FTEs.  Thanks in advance.

jireh87, that's a really good question. I am unaware of any exception to the ESRP for bankruptcy. Just to be clear, you are talking about a multiemployer plan one or more of the contributing sponsors to which is/are in bankruptcy, right? You're not saying the plan itself is in bankruptcy? (I assume the former, but your question is not entirely clear on this, because I tend to think of plans as being "multiemployer," not employers as being "multiemployer.") And is the plan a MEWA?