multiemployer plan

pension

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Last updated

July 1, 2026

Quick Summary

A multiemployer pension plan is a type of defined benefit pension plan that involves multiple employers. These plans are designed to provide a regular income to retirees throughout their retirement years. Funds are set aside by the employers and invested to meet future obligations.

While the number of defined benefit plans has decreased, they remain common in unionized workforces and public sector employment. The Employee Retirement Income Security Act (ERISA) of 1974 established standards for funding private sector pension plans and created the Pension Benefit Guaranty Corporation (PBGC) to protect participants' benefits if a plan fails.123

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pension
In plans known as multiemployer plans, various employers contribute to one central trust fund administered by a joint board of trustees. Such plans are particularly common in the Netherlands and France and in industries in the United States.
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In plans known as multiemployer plans, various employers contribute to one central trust fund administered by a joint board of trustees. Such plans are particularly common in the Netherlands and France and in industries in the United States.
Read More