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Central States, Southeast & Southwest Areas Pension Fund Et Al. v. Central Transport, Inc., Et Al.

• 1984 • 472 U.S. 559 • Burger Court
In the case of Central States, Southeast & Southwest Areas Pension Fund et al. v. Central Transport, Inc., et al., 1984, the U.S Supreme Court was tasked with interpreting provisions of the Multiemployer Pension Plan Amendments Act (MPPAA) of 1980 in relation to an employer's withdrawal liability from a multiemployer pension plan. The court ruled that employers who withdraw from such plans are liable for their proportionate share of any underfunding and must pay this amount over time as per...Open Case
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Chief Burger Court
Term: 1984
Docket: 82-2157
472 U.S. 559
105 S. Ct. 2833
86 L. Ed. 2d 447
1985 U.S. LEXIS 114
Argued: Nov 27, 1984

Central States, Southeast & Southwest Areas Pension Fund Et Al. v. Central Transport, Inc., Et Al.

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Opinion Summary
AI Abstract

In the case of Central States, Southeast & Southwest Areas Pension Fund et al. v. Central Transport, Inc., et al., 1984, the U.S Supreme Court was tasked with interpreting provisions of the Multiemployer Pension Plan Amendments Act (MPPAA) of 1980 in relation to an employer's withdrawal liability from a multiemployer pension plan. The court ruled that employers who withdraw from such plans are liable for their proportionate share of any underfunding and must pay this amount over time as per MPPAA guidelines. This decision upheld Congress' intent to protect employees' pension benefits while ensuring financial stability for ongoing multiemployer plans by preventing withdrawing employers from leaving behind unfunded liabilities.

Dissent Summary
AI Abstract

In the dissenting opinion for Central States, Southeast & Southwest Areas Pension Fund et al. v. Central Transport, Inc., et al., Justice White argued that the majority's interpretation of ERISA (Employee Retirement Income Security Act) was incorrect and overly broad. He contended that Congress did not intend to impose liability on employers for withdrawal from a multiemployer pension plan unless there was an actual diminution in plan assets resulting from their withdrawal. The majority’s decision would lead to unjust results by imposing substantial liabilities on withdrawing employers even when no harm has been done to the pension fund or its participants and beneficiaries due to their departure. Furthermore, he disagreed with the majority's view that any reduction in future contributions constitutes a 'withdrawal' under ERISA; instead, he believed this should only apply if it leads directly to financial instability or insolvency of the fund.

Opinion written by Justice TMarshall
Decided: Jun 19, 1985
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Argued: Oct 05, 2026
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