We provide legal services to multiemployer plans, and Mr. Chimento also serves as fiduciary for them in certain situations. We help employers when their declining businesses are jeopardized by withdrawal liabilities. We have had success in negotiating settlements with trustees, and minimizing potential acrimony, because we understand the problem from their perspective as well as that of the employer.
The Multiemployer Pension Reform Act of 2014 (“MPRA”) contains a number of changes, designated as reforms, to the system, including its withdrawal liability calculation methodology. (See our separate guidance on MPRA.) We expect additional changes to the system in future years and will be following that closely for clients.
Representative Engagements include:
Service as special investment counsel to one of the largest multiemployer plans in New England for its purchase of partnership interests in diversified real estate portfolios, here and abroad.
Assistance to large multiemployer fund to obtain exemptions from foreign taxes.
Representation of small multiemployer funds in Massachusetts in declining industries. Drafted plans and qualified them with Internal Revenue Service.
Served as appointed trustee for a multiemployer plan for which a mass withdrawal had occurred. Negotiated settlements with remaining employer, located missing participants, and was responsible for benefit payments and 5500 reporting. Obtained close–out annuity bid and PBGC assistance to settle liabilities.
Currently serving as appointed trustee for a multiemployer plan for which a mass withdrawal has occurred and which is receiving PBGC financial assistance. Responsible for benefit payments and 5500 reporting.
Serving as appointed independent fiduciary for multiemployer plan in declining industry to evaluate withdrawal liability settlement offers of contributing employers.
Negotiation of withdrawal liability settlement for private employer whose employment cut-backs triggered partial withdrawal liability.
Assisted private company to purchase a company with a large potential withdrawal liability to a multiemployer plan. We negotiated a successful settlement on that issue, including union agreement to discontinue multiemployer participation. There was a happy ending for all parties, including employees, whose union jobs were saved.