School Bus Company’s Pension Exit Bill Cut by Second Circuit

School bus company Mar-Can Transportation Co. on Wednesday won an appeals court order reducing the withdrawal liability it owes a Teamsters pension fund by $1.8 million.

The money a company owes its old pension fund when its workers vote to switch unions must be revised to reflect the assets and liabilities transferred to the company’s new pension fund in connection with the switch, the US Court of Appeals for the Second Circuit held.

Local 854 Pension Fund must therefore reduce Mar-Can’s bill by $1.8 million to reflect the difference between the $5.5 million in Mar-Can related liabilities and the $3.7 ...