I'm not clear on when a partial withdrawal liability arises. I hope there's a multiemployer w/d liability expert who can help.
Assume an employer closes a plant in late 2010, so that the "3-year testing period" is 2008, 2009 & 2010, and the "high base year" is calculated based on 2003 through 2007. Because 2008 through 2010 were years with a full complement of employees, there is no 70% reduction under the partial withdrawal liability rules for as long as 2010 is part of the 3-yr. testing period.
In 2013, however, the 3-yr. testing period is 2011 through 2013 (2010 having dropped off). If each of those years--2011, 2012, & 2013--has more than a 70% reduction from the high base year (based on 2006 through 2010), does that mean that 2013 is the first partial withdrawal year, or are each of the years in the 3-yr. testing period (i.e., 2011, 2012 & 2013) partial w/d liability years, or is only the 1st year in the testing period (i.e., 2011) a partial w/d liability year?
Full Version: Partial withdrawal liability
QUOTE (Sieve @ Nov 16 2009, 01:08 PM) 
I'm not clear on when a partial withdrawal liability arises. I hope there's a multiemployer w/d liability expert who can help.
Assume an employer closes a plant in late 2010, so that the "3-year testing period" is 2008, 2009 & 2010, and the "high base year" is calculated based on 2003 through 2007. Because 2008 through 2010 were years with a full complement of employees, there is no 70% reduction under the partial withdrawal liability rules for as long as 2010 is part of the 3-yr. testing period.
In 2013, however, the 3-yr. testing period is 2011 through 2013 (2010 having dropped off). If each of those years--2011, 2012, & 2013--has more than a 70% reduction from the high base year (based on 2006 through 2010), does that mean that 2013 is the first partial withdrawal year, or are each of the years in the 3-yr. testing period (i.e., 2011, 2012 & 2013) partial w/d liability years, or is only the 1st year in the testing period (i.e., 2011) a partial w/d liability year?
Assume an employer closes a plant in late 2010, so that the "3-year testing period" is 2008, 2009 & 2010, and the "high base year" is calculated based on 2003 through 2007. Because 2008 through 2010 were years with a full complement of employees, there is no 70% reduction under the partial withdrawal liability rules for as long as 2010 is part of the 3-yr. testing period.
In 2013, however, the 3-yr. testing period is 2011 through 2013 (2010 having dropped off). If each of those years--2011, 2012, & 2013--has more than a 70% reduction from the high base year (based on 2006 through 2010), does that mean that 2013 is the first partial withdrawal year, or are each of the years in the 3-yr. testing period (i.e., 2011, 2012 & 2013) partial w/d liability years, or is only the 1st year in the testing period (i.e., 2011) a partial w/d liability year?
There would only be one partial withdrawal and it would occur on 12/31/2013/
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