Metz Culinary Management obtains Second Circuit victory relating to ERISA withdrawal liability
Clients Metz Culinary Management, Inc.
On January 2, 2020, the U.S. Court of Appeals for the Second Circuit ruled in favor of Jones Day's client, Metz Culinary Management, Inc., on an important issue of first impression under ERISA's withdrawal liability regime. As a matter of law, the court held that a multiemployer pension plan cannot calculate a withdrawing employer's liability based on actuarial assumptions adopted after the last day of the plan year preceding the withdrawal. This anti-retroactivity rule, the court reasoned, is consistent with legislative intent and protects employers from the risk of manipulation and abuse. Accordingly, the court vacated the contrary district court opinion and remanded for entry of judgment in favor of Metz. Jones Day argued this appeal on Metz's behalf in February 2018.
The National Retirement Fund v. Metz Culinary Management, Inc., No. 17-1211 (2d Cir.)