The MPPAA was enacted to protect pension benefit plans by creating a disincentive for employers to withdraw from plans;
The liability provisions for "withdrawal" in MPPAA is also designed to protect the PBGC, as the guarantor of an underfunding liability; and
The appellants criticized the district and bankruptcy courts for taking too much time to decide how Cappy's personal bankruptcy affected the businesses, but the 7th Circuit affirmed the district court's decision, saying, "We will not permit Cappy to thwart the purpose of the MPPAA
Further, many courts in MPPAA
cases have accepted the Supreme Court's analysis in Groetzinger in distinguishing trades or businesses from investments.
Prior to enactment of the MPPAA
, Congress became concerned that a significant number of multiemployer pension plans were experiencing extreme financial hardship that would result in termination of numerous plans, forcing the PBGC to assume obligations in excess of its capacity.
New England Teamsters and Trucking Industry Pension Fund, two private equity funds are liable under the Multiemployer Pension Plan Amendments Act (MPPAA
) for the pro rata share of unfunded vested benefits owed to a multiemployer pension fund by a bankrupt company, Scott Brass Inc., that is owned by the funds.
However, the term as used in the Multiemployer Pension Plan Amendment Act of 1980 (MPPAA) has been frequently interpreted and applied by the courts.
414(c), the courts in the MPPAA cases generally have held that the term should be interpreted in light of the intentions of the Employee Retirement Income Security Act of 1974; see, e.g., Pension Benefit Guaranty Corp.
The Fund, a multiemployer pension plan governed by ERISA and the Multiemployer Pension Plan Amendment Act (MPPAA
), served notice that the Weis Company owed more than $600,000 in withdrawal liability for ceasing to contribute to the Fund.
The appellate court found there is no ambiguity in the definite article "the" used in the phrase "the highest contribution rate" in the Multiemployer Pension Plan Amendments Act of 1980 (MPPAA
As part of that consideration, Honerkamp requested, and the trustees provided, an estimate of Honerkamp's withdrawal liability under the Multiemployer Pension Plan Amendments Act of 1980 (MPPAA