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Sixth Circuit Denies Equitable Relief for Employer Liability Upon Union-Mandated Withdrawals from Multiemployer Plan (PDF)
U.S. Court of Appeals for the Sixth Circuit
Feb. 5, 2016
"The withdrawal assessment exceeds half of Rubber Associates' annual sales in 2009, 2010, and 2011 ... The parties agree that a complete withdrawal has happened in this case, and that ERISA and the MPPAA require a contributing employer to pay withdrawal liability upon its exit from a multiemployer pension plan. The parties disagree, however, on whether we should create federal common law under ERISA to carve out special liability rules for contributing employers which are forced out of pension funds due to union-mandated withdrawal.... Allowing employers to reduce or eliminate their withdrawal liability even when faced with a union-mandated withdrawal is not essential to the promotion of fundamental ERISA policies." [United Food and Commercial Workers Union-Employer Pension Fund v. Rubber Assoc., Inc., No. 15-3434 (6th Cir. Feb. 4, 2016)]
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