What does Multiemployer Pension and Benefit Plans mean? Read on to discover the definition & meaning of the term Multiemployer Pension and Benefit Plans - to help you better understand the language used in insurance policies.
Multiemployer Pension and Benefit Plans
Employee pension and welfare plans involving more than one employer. Multiemployer plans are most often set up by manufacturing firms within the same industry or governmental entities that draw their workforce from unions. From a fiduciary liability underwriting standpoint, additional risks are posed by multiemployer benefit plans compared with those generated by single-employer programs. Since multiemployer plans are usually larger and more complex than single-employer plans, claim frequency and claim severity tend to be higher, a fact reflected in higher premium rates for multiemployer plans.
We hope the you have a better understanding of the meaning of Multiemployer Pension and Benefit Plans.