Multiemployer Pension Plan Amendment Act of 1980, MPPAA, voluntary arbitration, constitutional, ERISA, liability


This student note discusses Congress's attempt to regulate group pension plans, and thus protect employees whose employers withdraw from those plans, through the Multiemployer Pension Plan Amendment Act of 1980. The author traces the history of multi-employer pension programs, including union and corporate plans, Taft-Hartley plans, and ERISA accounts, which were created through 1974 legislation (the Employee Retirement Income Security Act). The author discusses how liability arises under each type of plan when an employer decides to withdraw, juxtaposing the resulting liability with the consequences of voluntary arbitration. The author suggests an alternative, to insure the employer's removal from the pension plan in the same way other business decisions of corporate boards are insured, which the author suggests would result in a more equitable result for both the employees, and trustees or other board members who make those decisions.



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