Understanding Employee Benefits and key developments in the employee benefits field and items of interest to our clients. MORE

I previously blogged on a case where a purchaser who did not try to assume withdrawal liability in a purchase transaction learned that it could nevertheless be responsible for that liability as a successor employer. In another recent case, a seller who tried to structure a transaction so that the buyer assumed the withdrawal liability

Employers who participate in multiemployer pension funds know that if they withdraw from those funds they may be required to pay withdrawal liability if the plan is underfunded. Employers who sell their assets to an unrelated buyer can avoid that withdrawal liability if the buyer agrees to assume an obligation to contribute to the pension