Can you provide any information about Withdrawal liability and Exit Contributions?
Withdrawal liability is a share of unfunded vested benefits which can be imposed upon an Employer that stops contributing to NPF. Special rules apply for Employers in the building and construction industry. If a building and construction industry employer ceases contributions to NPF (say it goes non union, or the local union and Employer negotiates NPF out of the collective bargaining agreement), then it will face liability. If it simply shuts down, there is no liability. A nonconstruction employer can face liability regardless of the reason its ceases contributing to the NPF. An Exit Contribution can be assessed against any Employer that stops contributing to the NPF, but for a variety of reasons does not owe withdrawal liability. The Exit Contribution is equal to the last three years of contributions.