Court rejects challenge to pension plan’s rate of interest on unpaid contributions
December 29, 2017
In a matter of first impression, the District Court for the Middle District of Tennessee rejected an employer’s challenge to the interest rate applied by a multiemployer pension plan to overdue contributions and withdrawal liability payments.
Interpreting and applying the relevant PBGC regulation, the Court held that the PACE Industry Union-Management Pension Fund’s 12% rate reflects prevailing market rates for comparable obligations, as the regulation requires. Bredhoff & Kaiser represents the Fund in its lawsuit against O.E. Clark Paper Box Co. PACE Industry Union-Management Pension Fund v. O.E. Clark Paper Box Co., No. 3-15-0163, 2017 WL 6729356 (M.D. Tenn. Dec. 29, 2017).