Withdrawal Liability—A Big Problem for Unionized Employers
Employers that are subject to a collective bargaining unit often are required to make contributions to a defined benefit pension plan sponsored by a union. If the employer and the union part ways, the employer may be subject to withdrawal liability--even if the company has made all of its pension contributions. And, this liability can cripple a company. This is a BIG Problem The underfunded status of multiemployer pension plans [...]