§1390 Nonapplicability of withdrawal liability for certain temporary contribution obligation periods; exception

Summary

An employer does not have to pay withdrawal liability when it leaves a multiemployer pension plan if four things are true. The employer first had to put money into the plan after September 26, 1980. The employer only had to contribute for no more than the smaller of six straight plan years before leaving or the plan’s vesting period. Each year the employer’s required contribution was under 2% of that year’s total employer contributions. The employer has never used this rule before for that plan. The plan itself must also agree. The plan must be changed to say this rule applies. The plan must apply the tax-code reduction in section 411(a)(3)(E) for that employer’s workers. And in the year before the employer first had to contribute, the plan’s assets must have been at least eight times the benefit payments that year.