A multiemployer plan is a type of employee benefit plan that involves multiple employers contributing to the same fund. These plans are established through collective bargaining agreements between employers and labor organizations. They are designed to provide retirement benefits to employees who work for different employers within the same industry or sector.
Multiemployer plans are primarily used in the context of employee benefits and labor law. They are common in industries such as construction, transportation, and hospitality, where employees may work for various employers but often share similar job roles and benefits. Legal practitioners may encounter multiemployer plans in matters related to pension rights, labor negotiations, and compliance with federal regulations.
Here are a couple of examples of abatement:
Example 1: A group of construction companies forms a multiemployer plan to provide retirement benefits for their workers. Each company contributes a set amount per employee to the plan.
Example 2: A union representing hotel workers negotiates a multiemployer plan with several hotels in a city, allowing employees to receive retirement benefits regardless of which hotel they work for. (hypothetical example)
The primary statute governing multiemployer plans is the Employee Retirement Income Security Act (ERISA) of 1974. This law sets standards for pension plans in private industry and establishes protections for plan participants.
| Term | Definition | Key Differences |
|---|---|---|
| Single-employer plan | A retirement plan established by one employer for its employees. | Involves only one employer, unlike multiemployer plans which involve multiple employers. |
| Defined benefit plan | A retirement plan that promises a specified monthly benefit at retirement. | Can be either single-employer or multiemployer; multiemployer plans can also be defined contribution plans. |
If you are an employee participating in a multiemployer plan, review your plan documents to understand your benefits and rights. If you are an employer considering joining a multiemployer plan, consult with a legal professional or a benefits consultant to ensure compliance with applicable laws. You can also explore US Legal Forms for templates and resources to help navigate these issues.
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