M & K Employee Solutions, Inc. v. Trustees of IAM Nat. Pension · ¶12

An employer that stops participating in an underfunded Multiemployer Pension Plan must pay the plan “withdrawal liability”—i. e., its share of the plan's unfunded vested benefits. Calculating the unfunded vested benefits is a complicated endeavor because the plan's actuary must predict the value of the plan's future assets and obligations. To do so, the actuary makes certain assumptions about, for example, retirees' life expectancies and the anticipated growth rate of the plan's investments. By statute, an employer's withdrawal liability is based on the value of the plan's unfunded vested benefits “as of” the last day of the plan year preceding the employer's withdrawal, also known as the measurement date. 29 U. S. C. § 1391.

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