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U.S. Multiemployer Pension Plan Withdrawal Liability Basics and Collectibility

When an employer stops actively participating in a multiemployer plan, the employer is said to withdraw from the plan. If the plan has an unfunded liability, the withdrawing employer may be charged for the unfunded liability that it leaves behind—the withdrawal liability.

The concepts surrounding withdrawal liability are fairly simple; however, the details and realities are complex. This plain-language explanation of withdrawal liability covers general issues, including how withdrawal liability has grown to be very large and barriers to its collection.

A new version of the report with editorial updates was published on Aug. 15, 2018.

Complete Report

U.S. Multiemployer Pension Plan Withdrawal Liability Basics and Collectibility

Thank You

The author thanks the following volunteers for their advice, insights and arm’s-length review of this study prior to publication. Any opinions expressed may not reflect their opinions or those of their employers. Any errors belong to the author alone.

Christian E. Benjaminson, FSA, EA, FCA, MAAA

James B. Dexter, FSA, EA, FCA, MAAA

Paul B. Dunlap, FSA, EA, FCA, MAAA

Questions or Comments?

If you have comments or questions, please email research@soa.org.