Textile Workers Pension Fund v. STANDARD DYE ETC.
The Textile Workers Pension Fund, a multiemployer pension plan, sued Standard Dye & Finishing Co. Inc. for withdrawal liability under the Multiemployer Pension Plan Amendments Act of 1980 (MPPAA). The Company ceased operations in June 1980, relying on the pre-MPPAA ERISA provisions that limited its liability. However, the MPPAA, enacted in September 1980, retroactively applied its stricter withdrawal liability rules to April 1980, leading to an assessment of nearly $1,000,000 against the Company. The Company moved for summary judgment, arguing that the retroactive application violated its Fifth Amendment due process rights. The Court denied the motion, finding that Congress acted rationally in making the MPPAA retroactive to address the serious financial risks posed by mass employer withdrawals from multiemployer pension plans.