Christine L. Newhall

Senior Vice President

American Arbitration Association

One Center Plaza, Suite 300

Boston, MA 02108

NewhallC@adr.org

November 20, 2015

Sent via electronic mail: Perlin.Bruce@PBGC.gov

Bruce Perlin

Pension Benefit Guaranty Fund

1200 K Street NW

Washington, DC 20005

Dear Bruce, 

The American Arbitration Association (AAA) is hereby submitting its formal request for PBGC approval 

regarding the AAA February 2013 fee schedule for the administration of the Multiemployer Pension Plan 

Arbitration Rules (MEPPA) cases. Enclosed for your review is the AAA’s application addressing the 

requirements in accordance with 29 C.F.R.4221.14.

Thank you for considering the AAA’s application and I look forward to hearing from you about next 

steps in this process. If you have any questions, please feel free to contact me. 

Sincerely,

Christine L. Newhall

Senior Vice President

American Arbitration Association

617 695 6015

Enclosures: 

2013 Fee Schedule

Application for Approved Arbitration Procedures
4221.14 PBGC – approved arbitration procedures

(c) Procedure for approval of alternative procedures. The PBGC may approve arbitration procedures on 

its own initiative by publishing an appropriate notice in the Federal Register. The sponsor of an 

arbitration procedure may request PBGC approval of its procedures by submitting an application to the 

PBGC. The application shall include:

(1) A copy of the procedures for which approval is sought:

Attached is a copy of the AAA February 1, 2013 Fee Schedule for the Multiemployer Pension 

Plan Arbitration Rules for Withdrawal Liability Disputes.

(2) A description of the history, structure and membership of the organization that sponsors the 

procedures:

The American Arbitration Association (AAA), is a not-for-profit organization with offices throughout the 

U.S. as well as abroad. AAA has a long history and experience in the field of alternative dispute 

resolution, providing services to individuals and organizations who wish to resolve conflicts out of court. 

The AAA is named in 40 federal statutes and regulations, as well as over 300 state statutes and 

regulations. The AAA is not a membership organization.

The AAA role in the dispute resolution process is to administer cases, from filing to closing. The AAA 

provides administrative services in the U.S., as well as abroad through its International Centre for 

Dispute Resolution (ICDR). The AAA's and ICDR's administrative services include assisting in the 

appointment of mediators and arbitrators, setting hearings, and providing users with information on 

dispute resolution options, including settlement through mediation. Ultimately, the AAA aims to move 

cases through arbitration or mediation in a fair and impartial manner until completion.

Additional AAA services include the design and development of alternative dispute resolution (ADR) 

systems for corporations, unions, government agencies, law firms, and the courts. The Association also 

provides elections services as well as education, training, and publications for those seeking a broader or 

deeper understanding of alternative dispute resolution. 

(3) A discussion of the reasons why, in the sponsoring organization’s opinion, the procedures 

satisfy the criteria for approval set forth in this section.

The American Arbitration Association (AAA) has been administering the cases that fall under the 

Multiemployer Pension Plan Arbitration Rules for Withdrawal Liability Disputes for thirty four (34) years. 

The rules that have been previously approved by the PBGC are effective June 1, 1981 and revised 

effective September 1, 1986. The AAA’s 1986 MEPPA Rules did not change; the only update made was 

to increase the administrative fees for handling MEPPA arbitrations from the 1986 fee schedule to the 

2013 fee schedule. 
The AAA has provided quality administration on this caseload and based on parties and arbitrator 

feedback, the AAA’s service is valued and should continue to be available. However, as a not-for profit 

organization that receives funding only through the administrative fees earned on cases, we need to 

ensure that the costs associated with the administration of a particular caseload do not vastly exceed 

the fees earned. 

The fee increase implemented by the AAA was necessary because of the substantial administrative costs 

and staffing associated with these complex arbitrations. In particular, MEPPA arbitrations are similar to 

many of the large complex arbitrations administered by the AAA. They tend to be highly contentious, 

involve large dollar amounts, the parties engage in voluminous discovery, and there can be multiple 

preliminary calls as well as multiple days of evidentiary hearings, can be pending for long periods of 

time, involve bifurcated issues and extensive briefing. 

The AAA also found it necessary to implement a substantially heightened arbitrator disclosure 

requirements based on the nature of the MEPPA cases. All of these factors were considered when 

reviewing the fee schedule and a determination was made to change the fees from the 1986 $650.00 

fee to the 2013 fee schedule. The 1986 fee schedule provided the AAA discretion to set the fee where 

the net amount in dispute was in excess of $5 million. Given this level of discretion provided in the 1986 

fee schedule, the AAA did set administrative fees equivalent to those reflected in the 2013 fee schedule 

for cases with claims in excess of $5 million. In addition, the 2013 fee schedule is the same schedule the 

AAA has applied to other arbitrations caseloads that are similarly complex. 

(d) Criteria for approval of alternative procedures. The PBGC shall approve an application if it 

determines that the proposed procedures will be substantially fair to all parties involved in the 

arbitration of a withdrawal liability dispute and that the sponsoring organization is neutral and able to 

carry out is role under the procedures. The PBGC may request comments on the application by 

publishing an appropriate notice in the Federal Register. Notice of the PBGC’s decision on the 

application shall be published in the Federal Register. Unless the notice of approval specifies otherwise, 

approval will remain effective until revoked by the PBGC through a Federal Register notice.

The American Arbitration Association was founded in 1926, following enactment of the Federal 

Arbitration Act, with the specific goal of helping to implement arbitration as an out-of-court solution to 

resolving disputes. This legal framework was passed by Congress and signed by President Calvin 

Coolidge. The AAA's staff members and neutrals continue to live out the principles on which the 

Association was founded.

The AAA's official mission statement and vision statement are based on three core values: integrity, 

conflict management, and service. We have a long term working relationship with the Arbitrators on the 

MEPPA Panel. In addition to managing this panel, the AAA recruits Arbitrators who meet the criteria 

established for admission to this panel. The AAA has long held its mediators and arbitrators to strict 

codes of ethics and model standards of conduct to ensure fairness and impartiality in conflict 

management. To further ensure the AAA's integrity, however, the Association also developed Standards 

of Ethics and Business Conduct for its staff, as well as a general Statement of Ethical Principles to expand 

on its core values as an organization.
Finally, the AAA -- as a not-for-profit organization -- has a core dedication to service, and particularly 

education, in the field of alternative dispute resolution.

For these reasons, we are seeking the PBGC’s approval in support of the AAA’s 2013 Fee Schedule.

Thank you for considering our request. If any additional information is needed, please do not hesitate 

to contact the American Arbitration Association. We look forward to hearing from you about the next 

steps.
Administrative Fee Schedule – Revised Effective February 1, 2013

(i) Standard Fee Schedule 

An Initial Filing Fee is payable in full by a filing party when a claim, counterclaim, or additional 

claim is filed. A Final Fee will be incurred for all cases that proceed to their first hearing. This 

fee will be payable in advance at the time that the first hearing is scheduled. This fee will be 

refunded at the conclusion of the case if no hearings have occurred. However, if the Association 

is not notified at least 24 hours before the time of the scheduled hearing, the Final Fee will 

remain due and will not be refunded. 

These fees will be billed in accordance with the following schedule: 

Amount of Claim Initial Filing Fee Final Fee

Above $0 to $10,000 $775 $200

Above $10,000 to $75,000 $975 $300

Above $75,000 to $150,000 $1,850 $750

Above $150,000 to $300,000 $2,800 $1,250

Above $300,000 to $500,000 $4,350 $1,750

Above $500,000 to $1,000,000 $6,200 $2,500

Above $1,000,000 to $5,000,000 $8,200 $3,250

Above $5,000,000 to $10,000,000 $10,200 $4,000

Above $10,000,000 Base fee of $12,800 plus 

.01% of the amount 

above $10,000,000

Fee Capped at $65,000

$6,000

Nonmonetary Claims1 $3,350 $1,250

Deficient Claim Filing Fee2 $350

Additional Services3 

1

This fee is applicable when a claim or counterclaim is not for a monetary amount. Where a 

monetary claim amount is not known, parties will be required to state a range of claims or be 

subject to a filing fee of $10,200. 

2

The Deficient Claim Filing Fee shall not be charged in cases filed by a consumer in an 

arbitration governed by the Supplementary Procedures for the Resolution of Consumer-Related 

Disputes, or in cases filed by an Employee who is submitting their dispute to arbitration 

pursuant to an employer promulgated plan. 
3

The AAA may assess additional fees where procedures or services outside the Rules sections are 

required under the parties' agreement or by stipulation. 

Fees are subject to increase if the amount of a claim or counterclaim is modified after the initial 

filing date. Fees are subject to decrease if the amount of a claim or counterclaim is modified 

before the first hearing. 

The minimum fees for any case having three or more arbitrators are $2,800 for the Initial Filing 

Fee, plus a $1,250 Final Fee. Expedited Procedures are applied in any case where no disclosed 

claim or counterclaim exceeds $75,000, exclusive of interest and arbitration costs. 

Parties on cases filed under either the Flexible Fee Schedule or the Standard Fee Schedule that 

are held in abeyance for one year will be assessed an annual abeyance fee of $300. If a party 

refuses to pay the assessed fee, the other party or parties may pay the entire fee on behalf of all 

parties, otherwise the matter will be administratively closed. 

For more information, please contact your local AAA office, case management center, or our 

Customer Service desk at 1-800-778-7879. 

(ii) Refund Schedule for Standard Fee Schedule 

The AAA offers a refund schedule on filing fees connected with the Standard Fee Scedule. For 

cases with claims up to $75,000, a minimum filing fee of $350 will not be refunded. For all other 

cases, a minimum fee of $600 will not be refunded. Subject to the minimum fee requirements, 

refunds will be calculated as follows: 

> 100% of the filing fee, above the minimum fee, will be refunded if the case is settled or 

withdrawn within five calendar days of filing. 

> 50% of the filing fee will be refunded if the case is settled or withdrawn between six and 30 

calendar days of filing.

> 25% of the filing fee will be refunded if the case is settled or withdrawn between 31 and 60 

calendar days of filing. 

No refund will be made once an arbitrator has been appointed (this includes one arbitrator on a 

three-arbitrator panel). No refunds will be granted on awarded cases. 

Note: The date of receipt of the demand for arbitration with the AAA will be used to calculate 

refunds of filing fees for both claims and counterclaims. 

(iii) Flexible Fee Schedule 

A non-refundable Initial Filing Fee is payable in full by a filing party when a claim, 

counterclaim, or additional claim is filed. Upon receipt of the Demand for Arbitration, the AAA 

will promptly initiate the case and notify all parties as well as establish the due date for filing of 
an Answer, which may include a Counterclaim. In order to proceed with the further 

administration of the arbitration and appointment of the arbitrator(s), the appropriate, nonrefundable Proceed Fee outlined below must be paid. 

If a Proceed Fee is not submitted within ninety (90) days of the filing of the Claimant's Demand 

for Arbitration, the Association will administratively close the file and notify all parties. 

No refunds or refund schedule will apply to the Filing or Proceed Fees once received. 

The Flexible Fee Schedule below also may be utilized for the filing of counterclaims. However, 

as with the Claimant's claim, the counterclaim will not be presented to the arbitrator until the 

Proceed Fee is paid. 

A Final Fee will be incurred for all claims and/or counterclaims that proceed to their first 

hearing. This fee will be payable in advance when the first hearing is scheduled, but will be 

refunded at the conclusion of the case if no hearings have occurred. However, if the Association 

is not notified of a cancellation at least 24 hours before the time of the scheduled hearing, the 

Final Fee will remain due and will not be refunded. 

All fees will be billed in accordance with the following schedule: 

Amount of Claim Initial Filing Fee Proceed Fee Final Fee

Above $0 to $10,000 $400 $475 $200

Above $10,000 to 

$75,000

$625 $500 $300

Above $75,000 to 

$150,000

$850 $1250 $750

Above $150,000 to 

$300,000

$1,000 $2125 $1,250

Above $300,000 to 

$500,000

$1,500 $3,400 $1,750

Above $500,000 to 

$1,000,000

$2,500 $4,500 $2,500

Above $1,000,000 to 

$5,000,000

$2,500 $6,700 $3,250

Above $5,000,000 to 

$10,000,000

$3,500 $8,200 $4,000

Above $10,000,000 $4,500 $10,300 plus .01% of 

claim amount over 

$10,000,000 up to 

$65,000

$6,000

Nonmonetary1 $2,000 $2,000 $1,250
Deficient Claim Filing 

Fee

$350

Additional Services2 

1

This fee is applicable when a claim or counterclaim is not for a monetary amount. Where a 

monetary claim amount is not known, parties will be required to state a range of claims or be 

subject to a filing fee of $3,500 and a proceed fee of $8,200.

2

The AAA reserves the right to assess additional administrative fees for services performed by 

the AAA beyond those provided for in these Rules and which may be required by the parties' 

agreement or stipulation.

For more information, please contact your local AAA office, case management center, or our 

Customer Service desk at 1-800-778-7879. All fees are subject to increase if the amount of a 

claim or counterclaim is modified after the initial filing date. Fees are subject to decrease if the 

amount of a claim or counterclaim is modified before the first hearing. 

The minimum fees for any case having three or more arbitrators are $1,000 for the Initial Filing 

Fee; $2,125 for the Proceed Fee; and $1,250 for the Final Fee. 

Under the Flexible Fee Schedule, a party's obligation to pay the Proceed Fee shall remain in 

effect regardless of any agreement of the parties to stay, postpone, or otherwise modify the 

arbitration proceedings. Parties that, through mutual agreement, have held their case in abeyance 

for one year will be assessed an annual abeyance fee of $300. If a party refuses to pay the 

assessed fee, the other party or parties may pay the entire fee on behalf of all parties, otherwise 

the matter will be closed. 

Note: The date of receipt by the AAA of the demand for arbitration will be used to calculate the 

ninety (90) day time limit for payment of the Proceed Fee. 

There is no Refund Schedule in the Flexible Fee Schedule. 

©2013 American Arbitration Association, Inc. All rights reserved. These rules are the 

copyrighted property of the American Arbitration Association (AAA) and are intended to be 

used in conjunction with the AAA's administrative services. Any unauthorized use or 

modification of these rules may violate copyright laws and other applicable laws. Please contact 

800.778.7879 or websitemail@adr.org for additional information.