What Private Equity Managers Need to Know to Limit Their ERISA Obligations for Portfolio Company Pension Plans

If a private equity (PE) fund owns 80 percent or more of a portfolio company (subsidiary) that sponsors a defined benefit pension plan or contributes to a multiemployer (union) pension plan, the PE fund and its other 80 percent or more portfolio companies may be jointly and severally liable for the subsidiary’s Employee Retirement Income Security Act pension liabilities.

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