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.

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