A multiemployer pension plan is a collectively bargained plan sponsored by more than one employer and a labor union. Like all qualified plans, they are governed by the Employee Retirement Income Security Act (ERISA), but are also subject to the Multiemployer Pension Plan Act of 1980 (MEPPA); which established the concept of “withdrawal liability” for employers who stop making contributions to the plan. These plans are managed by a joint board of union and management trustees.
Multiemployer Plans with Watkins Ross
Multiemployer plans are subject to minimum funding requirements that must be certified by an actuary each year, plus we must perform a zone certification indicating the financial health of your plan. Watkins Ross has been providing these services for over 30 years. We work on Funding Improvement Plans and Rehabilitation Plans; and also work with plans that have gone insolvent and now have payments funded by the PBGC. Your team at Watkins Ross works with you to make sure you are aware of the rules and upcoming deadlines to maintain compliance and avoid costly penalties.
Withdrawal liability (WDL) calculations are required to determine the unfunded liability when an employer stops participating in a multiemployer plan. Our team understands the different methods for calculating this liability and the ways in which it is limited. We consult with our clients wanting an estimate of the future WDL charges given different variables; such as employment levels, market returns, and liability discount rates. We also provide studies to determine the effect of changes in contributions rates or the changes in benefit multipliers.