§1386 Adjustment for partial withdrawal; determination of amount; reduction for partial withdrawal liability; procedures applicable

Summary

Calculates how much an employer owes when it partially leaves a multiemployer pension plan. First, find the full-withdrawal liability amount as if the employer had completely left, using the date of the partial withdrawal (or, for a 70-percent contribution decline case, the last day of the first plan year in the 3-year testing period). Then multiply that amount by a fraction: 1 minus (the employer’s contribution base units for the year after the partial withdrawal divided by the 5-year average of the employer’s contribution base units from the five plan years before the withdrawal — or, for a 70-percent decline case, the five years before the start of the 3-year testing period). If the employer later has more withdrawal liability, that later amount is reduced by any earlier partial-withdrawal liability (after any abatements or reductions). The responsible agency must write rules to adjust those reductions for changes in unfunded vested benefits, changes in contribution base units after the prior year, and any other factors it finds appropriate.