Real estate owners or buyers in the market to purchase a real estate property, or to provide mortgage financing for a real estate property that has a unionized workforce at the property, should heed the Supreme Court's recent decision in M&K Employee Solutions, LLC v. Trustees of the IAM National Pension Fund, 608 U.S. __ (2026), and should identify pension exposure early in any transaction or operational change involving union labor. The case concerns "withdrawal liability," which is the amount an employer may owe to an underfunded multiemployer pension plan (Multiemployer Plan) covering union employees when the employer "withdraws" from the Multiemployer Plan. The Supreme Court's decision permits a Multiemployer Plan to change assumptions used in calculating withdrawal liability in a manner that can cause prior estimates of that liability to be understated.
Generally, a withdrawal occurs when an employer ceases to have an obligation to contribute to a Multiemployer Plan. Thus,… Read the complete article here...
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