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Multiemployer Insurance Program Fact Sheet

What is a Multiemployer Plan?

  • A collectively bargained pension arrangement involving unrelated employers, usually in a common industry, such as construction, trucking, textiles, or coal mining
  • Different from single-employer plans. Single-employer plans may be sponsored by either:
    • one employer, pursuant or not pursuant to a collective bargaining agreement, or
    • several unrelated employers, but not pursuant to a collective bargaining agreement
  • Many multiemployer plans determine the participant's benefit on a flat dollar amount for each year of service

How is the Multiemployer Program Funded?

  • The program is funded and maintained separately from PBGC's other insurance program, which covers only single-employer plans
  • For 2014, each multiemployer plan pays an annual insurance premium of $12 per participant to PBGC
  • PBGC provides financial assistance to plans that are unable to pay basic PBGC-guaranteed benefits when due
  • Before a plan receives financial assistance from PBGC, it must suspend payment of all benefits in excess of the guarantee level
  • PBGC receives no assets from failed multiemployer plans

What Are the Guarantee Limits?

  • The guarantee limit for someone with 30 years of service is $12,870

Plans Assisted:

  • Since 1980: PBGC has provided financial assistance to 81 multiemployer plans
  • During 2013: 44 plans received assistance

Financial Picture:

  • Until 2003: PBGC's multiemployer insurance program had shown growing financial strength since 1980
  • Since 2003: The program has reported a deficit every year
  • End of FY 2013:
    • The program's deficit stood at $8.3 billion
    • The program had assets of $1.7 billion and total liabilities of $10.0 billion