Funding Requirements for Multiemployer Plans

Abstract A multiemployer pension plan is a plan maintained pursuant to one or more collective bargaining agreements to which two or more unrelated employers must contribute. As required by the Taft-Hartley Act, these plans are administered by a board of trustees with equal representation appointed by employers and participants (typically management and unions). For fiscal year 2007, the Pension Benefit Guaranty Corporation (PBGC) insured 10 million participants in about 1,500 multiemployer defined benefit pension plans, or about 22.8 percent of all insured participants.