Free US Court of Appeals for the Second Circuit case summaries from Justia.
If you are unable to see this message, click here to view it in a web browser. | | US Court of Appeals for the Second Circuit January 3, 2020 |
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US Court of Appeals for the Second Circuit Opinions | The National Retirement Fund v. Metz Culinary Management, Inc. | Docket: 17-1211 Opinion Date: January 2, 2020 Judge: Ralph K. Winter, Jr. Areas of Law: Arbitration & Mediation, ERISA | Metz appealed the district court's judgment vacating an arbitration award that held that interest rate assumptions for purposes of withdrawal from a multiemployer pension plan liability are those in effect on the last day of the year preceding the employer's withdrawal. The district court held, however, that section 4213 of the Employee Retirement Income Security Act (ERISA) does not require actuaries to calculate withdrawal liability based on interest rate assumptions used prior to an employer's withdrawal from a plan, and that interest rate assumptions must be affirmatively reached and may not roll over automatically from the preceding plan year. The Second Circuit vacated the district court's judgment, holding that interest rate assumptions for withdrawal liability purposes must be determined as of the last day of the year preceding the employer's withdrawal from a multiemployer pension plan. Furthermore, absent any change to the previous plan year's assumption made by the Measurement Date, the interest rate assumption in place from the previous plan year will roll over automatically. Accordingly, the court remanded with directions to enter judgment for Metz and to remand any remaining issues to the arbitrator. | |
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