Our multiemployer pension plan example offers several lessons including this: It is not enough for an employer in a multiemployer pension plan to abide by its contractual obligations. It must closely monitor potential withdrawal liability from year-to-year. (Photo: Shutterstock)

Your client, the ABC Bolt and Washer Company, for decades has manufactured widgets from a plant in New Jersey owned by a real estate limited liability company (LLC) under common ownership. Each and every month, ABC dutifully contributes to a multiemployer defined benefit pension plan (the “MEPP Fund”) for its unionized workforce.

Times are tough, though, and ABC's sole shareholders Messrs. Abbott and Costello have decided to shut its doors and lay off its three remaining union member employees.

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