Trent Lott: “I rise to day to introduce, along with my colleagues Senator Smith from Oregon, the multiemployer Pension Plan…”

“I rise to day to introduce, along with my colleagues Senator Smith from Oregon, the multiemployer Pension Plan Procedural Fairness Act of 2003. The purpose of this legislation is to provide a modest amount of procedural fairness with respect to claims filed against former employers under the multiemployer pension plan (MEPPA) rules. By way of background, MEPPA makes an employer that completely or partially withdraws from participation in a multiemployer pension fund liable for the employer's share of the plans' unfunded vested benefits. That liability is referred to as ``withdrawal liability'' and can be collected from any member of the controlled group of employers that included the withdrawing employer. The process of collecting withdrawal liability can become quite unfair when the pension fund attempts to assert liability against a former employer or a former member of a controlled group of employers that, as a result of a legitimate business separation, such as a sale or spin-off transaction, ceased to be associated with the withdrawing employer several years before the compete or partial withdrawal occurred.”