Hop Energy, L.L.C. v. Local 553 Pension Fund

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HOP Energy appealed from the district court's confirmation of an arbitration award in favor of Local 553 Pension Fund. The district court held that HOP Energy was not exempt from withdrawal liability under the Multi-Employer Pension Plan Amendments Act (MPPAA), 29 U.S.C. 1381-1461, because the purchaser of HOP Energy's New York City operating division lacked an obligation to contribute "substantially the same number of contribution base units" to the pension fund post-sale by HOP Energy had contributed pre-sale. The court agreed and held that the "contribution base units" were hours of employee pay. Although the purchaser of HOP Energy's New York City operating division had an obligation to contribute to the pension fund at the same contribution base unit rate, it had no obligation to contribute substantially the same number of hours of employee pay. Therefore, HOP was not exempt from withdrawal liability. View "Hop Energy, L.L.C. v. Local 553 Pension Fund" on Justia Law