Opinion ID: 571517
Heading Depth: 3
Heading Rank: 2

Heading: Withdrawal liability amount on which interest accrued.

Text: 30 Closely intertwined with the issue of the starting date of § 1132(g)(2) interest accrual is the issue of the amount of withdrawal liability on which the § 1132(g)(2) interest should be figured. The Plan argues that the amount on which § 1132(g)(2) interest accrued was the total underlying withdrawal liability principal, determined from the date of the Plan's initial demand for withdrawal liability. The Plan analogizes § 1132(g)(2) interest with interest that accrues on a loan, where interest accrues on the entire balance of the loan from the date on which the loan was made. Thus, the Plan concludes that § 1132(g)(2) interest accrued on CCC's entire withdrawal liability from the date the liability arose. 6 31 The Plan is mistaken in its analogy and argument. It is not the § 1132(g)(2) interest that is analogous to the interest on a loan. Rather, it is the interest that is calculated into the amortized withdrawal liability installment payments that is analogous to loan interest, which is similarly calculated into the amortized loan payments. Therefore, the Plan has already incorporated the interest that accrued from the date of liability into the withdrawal liability installment payments. Each installment payment reflects a portion of that interest. 7 On the other hand, § 1132(g)(2) interest is interest that accrues on delinquent contributions, and, via § 1451(b), on delinquent withdrawal liability installment payments. Thus, § 1132(g)(2) interest only accrued on each respective installment as it became due, not on CCC's entire withdrawal liability. 8 32 For this reason, as well as the reasons supporting our decision regarding the starting date of interest accrual, we hold that the § 1132(g)(2) interest accrued on each of CCC's five delinquent installments from their respective due dates. 33