Month: June 2026

**Penske Wins Pension Withdrawal Fight on Appeal**

The Seventh Circuit ruled that Penske Truck Leasing does not owe withdrawal liability to the Central States pension fund after a 2018 asset sale. The court affirmed the lower court’s decision that the transaction qualified for an exemption, ending the fund’s attempt to collect millions in pension obligations.

Penske sold certain trucking assets to another company in 2018. Central States claimed the deal triggered “withdrawal liability” — a large payment required when an employer leaves a multiemployer pension plan. Penske argued the sale met a narrow statutory safe harbor that shields companies from liability when operations continue without a break in contributions. The fund countered that the exemption did not apply because the buyer was not a contributing employer at the exact moment of transfer.

The Seventh Circuit sided with Penske. It held that the statute focuses on whether covered work continues, not on technical timing details. The court rejected the fund’s narrow reading, finding it would undermine the exemption’s purpose. For trucking and logistics companies that frequently buy or sell terminals and fleets, the ruling clarifies when pension obligations travel with the assets and when they stay behind.

The decision reduces uncertainty for carriers navigating asset sales and multiemployer pension plans.

https://www.courtlistener.com/opinion/10866289/penske-truck-leasing-lp-v-central-states-southeast-and-southwest-areas/

How might this ruling change how your company structures future asset sales?

**Seventh Circuit Sides with Pension Fund in Penske Dispute**

The Seventh Circuit upheld a district court decision rejecting Penske Truck Leasing’s attempt to escape withdrawal liability to a union pension plan. The appeals court ruled that the trucking company must continue making payments under the Central States pension fund’s calculation, rejecting arguments that the fund’s methods were arbitrary.

The dispute began when Penske withdrew from the Central States Southeast and Southwest Areas Pension Plan, triggering withdrawal liability under federal law. Penske challenged the fund’s assessment, claiming the trustees used improper assumptions and failed to follow required procedures. The district court sided with the pension fund on most issues, and the Seventh Circuit affirmed that ruling in full.

The court held that pension plans have wide discretion in setting withdrawal liability as long as their methods are reasonable and consistent with ERISA. It found no evidence that Central States acted arbitrarily or violated the statute. The decision strengthens pension funds’ ability to collect from trucking and logistics companies that exit multiemployer plans.

For fleet operators and lessors, the ruling signals that challenges to withdrawal calculations face a high bar and that courts will defer to trustees’ actuarial choices.

**Bottom Line:** Penske must pay the assessed withdrawal liability.

https://www.courtlistener.com/opinion/10866290/penske-truck-leasing-lp-v-central-states-southeast-and-southwest-areas/

How might this affect your company’s future decisions on union pension participation?