Multiemployer plans

A multiemployer plan is a pension plan created through an agreement between two or more employers and a union. The employers are usually in the same or related industries, like construction or transportation. Multiemployer plans are run by a board of trustees, with an equal number of employer and union trustees.

PBGC’s Multiemployer Insurance Program covers private-sector multiemployer defined benefit plans. PBGC also runs a Single-Employer Insurance Program. The two programs differ significantly in the level of benefits guaranteed, the insurable event that triggers the guarantee, and premiums paid by insured plans. Multiemployer plans also have separate funding rules and requirements, and PBGC’s multiemployer guarantee is significantly lower than our single-employer guarantee.