Determining appropriate assumptions for calculating withdrawal liability is an important issue for multiemployer pension plans. Many plans use the Segal Blend method to select the discount rate to determine withdrawal liabilities. The pension community has been closely following a number of appeals about the use of the method. A court ruling that deemed its use by the New York Times case as improper was recently upheld. But other courts have ruled that the Segal Blend is an appropriate method. The difference in opinions of various courts keeps the door open for future challenges.
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Multiemployer Alert: Segal Blend method still in question for withdrawal liability
The Segal Blend method of determining withdrawal liabilities in multiemployer pension plans was ruled improper in a recent case with the New York Times but it has been upheld in others, leaving the issue open for future challenges.