M & K Employee Solutions, Inc. v. Trustees of IAM Nat. Pension · ¶1
Pursuant to the Employee Retirement Income Security Act of 1974 (ERISA), as amended, an employer that stops participating in an underfunded Multiemployer Pension Plan (MPP), must pay the plan “withdrawal liability,” i.e., the employer's share of the plan's unfunded vested benefits (UVBs). See 29 U. S. C. § 1391. Withdrawal liability is calculated based on the plan's UVBs “as of” the statutory measurement date—the last day of the plan year preceding the employer's withdrawal. §§ 1391(b)(2)(E)(i), (c)(2)(C)(i), (3)(A), (4)(A). Determining the value of a plan's UVBs depends upon both hard data (such as the number of benefciaries and the value of the plan's assets) and a variety of actuarial predictions about the future. One key actuarial assumption is the discount rate, which is the interest rate “used to discount future benefit payments to their present value.” 87 Fed. Reg. 62317.…Read in context ›
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