Tax Law Defined® Blog

Showing 6 posts by Michael T. Bindner.

Request Annual Estimate of Multiemployer Pension Plan Withdrawal Liability

An employer which participates in an underfunded multiemployer pension plan should request an estimate of withdrawal liability on an annual basis so it is aware of the amount of any potential withdrawal liability. Read More ›

SURPRISE! You may be liable for union pension plan withdrawal liability

SURPRISE! You may be liable for union pension plan withdrawal liability

When a participating employer stops contributing to, or no longer has an obligation under a collective bargaining agreement (CBA) to contribute to, an underfunded multiemployer (union) pension plan, the employer may be liable for “withdrawal liability” even though it always paid its required annual contributions to the pension plan. Read More ›

17 Ways to Avoid or Reduce Multiemployer Pension Plan Withdrawal Liability

17 Ways to Avoid or Reduce Multiemployer Pension Plan Withdrawal Liability

A multiemployer/union benefit plan is a plan that two or more employers contribute to under the terms of one or more collective bargaining agreements ("CBAs"). Multiemployer pension plans are governed by the Employee Retirement Income Security Act of 1974 (ERISA), as are most other employer retirement plans, but multiemployer plans are also subject to special rules added to ERISA in the Multiemployer Pension Plan Amendments Act of 1980 (MPPAA). MPPAA imposes an exit penalty, referred to as “withdrawal liability,” on employers who withdraw from an underfunded plan. The plan must allocate a portion of the unfunded vested benefits in the plan to a participating employer when it withdraws from the plan, and the withdrawing employer must pay this withdrawal liability. Read More ›

Union Pension Plan Participation Can Create Massive Unexpected Liabilities

Union Pension Plan Participation Can Create Massive Unexpected LiabilitiesWhen a participating employer stops contributing to, or stops having a bargaining agreement obligation to contribute to, a multiemployer (union) pension plan that is underfunded, the employer may be subject to what ERISA refers to as “withdrawal liability” regardless of whether the employer always paid its required contributions to the plan. Withdrawal liability can be triggered when an employer has a significant union workforce reduction (a “partial withdrawal”), a complete union workforce reduction, or when there is a withdrawal of all employers from the plan.   Read More ›

ACA Nondiscrimination Casts Wide Net, But Portion Has Been Enjoined

ACA Nondiscrimination Casts Wide Net, But Portion Has Been Enjoined

The Department of Health and Human Services (HHS) released final regulations on Section 1557 of the Affordable Care Act (ACA) in May 2016. Section 1557 prohibits discrimination on the basis of race, color, national origin, sex, age, or disability by any entity that operates a health program or activity, any part of which receives federal financial assistance. This includes entities which provide, administer, or assist in obtaining health-related services or health-related insurance coverage. Read More ›

New Federal Law Confirms Public Safety Officers’ Benefits

New Federal Law Confirms Public Safety Officers’ Benefits

Federal tax law has recently been amended to confirm that certain payments to or on behalf of a public safety officer who is disabled or dies from an injury sustained in the line of duty are nontaxable. On May 22, 2015, President Obama signed this legislation which was passed unanimously by Congress and is entitled the Don’t Tax Our Fallen Public Safety Heroes Act (the “Heroes Act”). Read More ›

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Attorney Spotlight

Carl C. Lammers is a member of FBT, counseling employers on the design and administration of employee benefit plans, including defined contribution and defined benefit pension plans, ESOPs, and health and welfare benefit plans.

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