A client has negotiated with the union representing its employees to withdraw from a multiemployer plan. The new labor contract is effective 1/1/09, so presumably that is the effective date of the withdrawal. Is there any particular form of notice the employer needs to provide to the plan, or will a letter suffice? Any timing requirements? The employees know about the withdrawal because they voted to approve the new contract, but is the employer required to send them a formal notice?

Anything else the employer needs to do apart from budgeting for withdrawal liability payments?

If they have already notified the MEP and they have bargained with employees nothing else needs to be done IMHO. Now they can just wait for the sticker shock to set in when they get the w/d amount from the union.

It probably will make a substantial difference if the employer withdraws on 12/31/08 instead of 1/1/09. If the withdrawal date is 1/1/09, the WL will be calculated as of 12/31/08 (assuming the plan is a calendar year plan). This will include all the investment losses experienced in 2008. If the employer were to withdraw as of 12/30/08, for example, the WL will be calcualted as of 12/31/07.