Supreme Court Rules Against Employers in Dispute Over Pension Plans

The new ruling clarifies the rules for companies withdrawing from underfunded union pension plans.

U.S. Supreme Court Justice Ketanji Brown Jackson poses for an official portrait in Washington on Oct. 7, 2022. Alex Wong/Getty Images

The U.S. Supreme Court has voted unanimously to allow multi-employer pension funds to charge higher so-called exit fees when companies withdraw from plans.

Justice Ketanji Brown Jackson wrote the court’s 9–0 opinion in M & K Employee Solutions LLC v. Trustees of the IAM National Pension Fund, which was issued on May 21.