Multiemployer Pension Plan

Definition

A pension plan maintained under collective bargaining agreements involving multiple unrelated employers, typically in a single industry. Multiple companies contribute to a shared fund that pays retirement benefits to workers. When one employer leaves, the remaining employers bear a greater share of the plan's obligations, which is why withdrawal liability exists.

Examples

• •The IAM National Pension Fund is a multiemployer plan to which multiple employers contributed on behalf of their workers represented by the International Association of Machinists.

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