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Constitutional Law Keyed to Rotunda
Allied Structural Steel Co. v. Spannaus
Citation:
438 U.S. 234 (1978)Facts
In 1974, Minnesota enacted the law at question, the Private Pension Benefits Protection Act. Under the Act, a private employer of 100 employees or more who provided pension benefits under a plan meeting the qualifications of the Internal Revenue Code, was subject to a pension funding charge if he either terminated the plan or closed a Minnesota office. The Act required the employer to satisfy the deficiency by purchasing deferred annuities, payable to the employees at their normal retirement age. During 1974, the company began closing its Minnesota office and discharged 11 of its 30 Minnesota employees. However, at least nine of the discharged employees did not have any pension rights under the company’s plan but worked for it for more than 10 years. The State notified the company that it owed a pension funding charge. The company challenged.
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