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Merger of Ailing Pension Fund Into National Multiemployer Plan Arranged

Our client was the largest contributor to a multiemployer pension fund which was in severe financial distress because the trustees had invested (and lost) virtually all of the fund’s assets in local real estate projects. Rather than shut down the fund and face serious mass withdrawal liability obligations, we spearheaded a merger of the fund into a national multiemployer plan which was much better funded. In addition to saving significant amounts of withdrawal liability, we were able to persuade the Pension Benefit Guaranty Corporation to contribute over $14 million to the effort, which substantially reduced amounts needed from the contributing employers. The merger took place and our client now contributes to the national fund, which is so well funded it does not assert withdrawal liability.

Attorneys

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