What Is a Multiemployer Pension Plan?

What Is a Multiemployer Pension Plan?

A multiemployer pension plan is a collectively bargained employee benefit plan maintained by more than one employer, to which more than one employer contributes, according to the International Foundation of Employment Benefit Plans. Multiemployer pension plans benefit both employees and employers by pooling risk and allowing for economies of scale.

Multiemployer plans are usually used by firms in the same industry or labor unions, according to the International Foundation of Employment Benefit Plans. Construction, entertainment, retail and transportation are some industries that use multiemployer pension plans. Multiemployer pension plans enables worker mobility and portability of service due the scalar nature of the organization.