**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?