A machinists’ union pension fund seeking more than $3.7 million from three withdrawing employers scored a legal victory when a federal judge vacated arbitration rulings requiring the fund to recalculate its assessments using different interest rate assumptions.
The dispute centers on how much discretion pension fund actuaries have in setting the interest rate assumptions used to calculate how much employers owe when they leave the plan. Small changes in these assumptions—some of which attempt to forecast future investment returns—can cause large variations in an employer’s withdrawal liability assessment.
The defendant companies—Ohio Magnetics Inc., Toyota Logistics Services Inc., and Phillips Liquidating ...
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