PENSION BENEFIT GUARANTY CORPORATION i BENEFIT PROVISIONS IN MULTIEMPLOYER PLANS

Benefit Provisions in Multiemployer 

Defined Benefit Pension Plans

2016 Plan Year Reporting

October 2020
PENSION BENEFIT GUARANTY CORPORATION i BENEFIT PROVISIONS IN MULTIEMPLOYER PLANS

CONTENTS

Summary............................................................................................................................................................................... 1

Study of Results and Conclusions.................................................................................................................................... 2

Background.......................................................................................................................................................................... 3

Multiemployer Plans...................................................................................................................................................... 3

Regulatory Environment............................................................................................................................................... 3

Data Source ..................................................................................................................................................................... 3

Reporting on Multiemployer Plan Provisions................................................................................................................ 6

Benefit Accrual Formulas and General Category Distributions............................................................................. 6

Benefit Accrual Rates..................................................................................................................................................... 9

Benefit Averages Across All Plans............................................................................................................................15

Normal Retirement Provisions ..................................................................................................................................18

Early Retirement Eligibility.........................................................................................................................................21

Optional Forms of Benefit .........................................................................................................................................23

Ancillary Forms of Benefit .........................................................................................................................................25

Appendix............................................................................................................................................................................27
PENSION BENEFIT GUARANTY CORPORATION ii BENEFIT PROVISIONS IN MULTIEMPLOYER PLANS

SUMMARY OF TABLES, CHARTS AND FIGURES

FIGURES

Figure 1 - Predominant Accrual Rates for Active Participants by Industry.............................................................. 1

TABLES

Summary of Sampled Plans

Table A - Studied Multiemployer Pension Plans by 2016 Zone Status ..................................................................... 4

Table B - All Multiemployer Pension Plans by 2016 Zone Status.............................................................................. 4

Table C - Studied Multiemployer Pension Plans by Industry Classification............................................................. 5

Table D - All Multiemployer Pension Plans by Industry Classification..................................................................... 5

Survey Results

Table 1 - Plans by Type of Benefit Accrual Formula .............................................................................................................................6

Table 2 - Plans by Amount of Active Current Liability .........................................................................................................................6

Table 3 - Plans by 2016 Zone Status............................................................................................................................................................7

Table 4 - Plans by Industry Classification...................................................................................................................................................7

Table 5 – Percent of Active Participants by Amount of Active Current Liability and Type of Benefit Accrual Formula

.......................................................................................................................................................................................................................7

Table 6 – Percent of Active Participants by 2016 Zone Status and Type of Benefit Accrual Formula.................................8

Table 7 – Percent of Active Participants by Industry Classification and Type of Benefit Accrual Formula........................8

Table 8 - Benefit Accrual Rates for Plans with Dollar-Per-Year of Service Formula..................................................................9

Table 9 - Benefit Accrual Rates for Plans with Dollar-Per-Year of Service Formula by 2016 Zone Status......................10

Table 10 - Benefit Accrual Rates for Plans with Dollar-Per-Year of Service Formula by Industry Classification ..........11

Table 11 - Benefit Accrual Rates for Plans with Percent of Contribution Formula..................................................................11

Table 12 - Benefit Accrual Rates for Plans with Percent of Contribution Formula by 2016 Zone Status........................12

Table 13 - Benefit Accrual Rates for Plans with Percent of Contribution Formula by Industry Classification ...............13

Table 14 - Benefit Accrual Rates for Plans with Final Average Pay Formula .............................................................................14

Table 15 - Benefit Accrual Rates for Plans with Percent of Career Earnings Formula*..........................................................14

Table 16 - Average Estimated Monthly Benefit Accruals..................................................................................................................15

Table 17 - Average Estimated Monthly Benefit Accruals by 2016 Zone Status.........................................................................16

Table 18 - Average Estimated Monthly Benefit Accruals by Industry Classification................................................................17

Table 19 - Plan’s Normal Retirement Eligibility Requirements.......................................................................................................18

Table 20 - Normal Retirement Eligibility Requirements by 2016 Zone Status...........................................................................19

Table 21 - Active Participant Normal Retirement Eligibility Requirements by Industry Classification..............................20

Table 22 - Early Retirement Eligibility Requirements.........................................................................................................................21

Table 23 - Early Retirement Eligibility Requirements by 2016 Zone Status................................................................................22

Table 24 - Early Retirement Eligibility Requirements by Industry Classification*.....................................................................23

Table 25 - Optional Payment Forms Currently Offered....................................................................................................................23

Table 26 - Plans by Size of Active Current Liability and Optional Payment Form...................................................................24

Table 27 - Active Participants by 2016 Zone Status and Optional Payment Forms.................................................................24

Table 28 - Active Participants by Industry Classification and Optional Payment Form..........................................................24
PENSION BENEFIT GUARANTY CORPORATION iii BENEFIT PROVISIONS IN MULTIEMPLOYER PLANS

Table 29 - Types of Ancillary Benefits Offered.....................................................................................................................................25

Table 30 - Distribution of Types of Ancillary Benefits by 2016 Zone Status (Plan Weighted).............................................25

Table 31 – Distribution of Types of Ancillary Benefits by 2016 Zone Status (Participant Weighted)................................25

Table 32 – Ancillary Benefits by Industry Classification (Plan Weighted)....................................................................................26

Table 33 – Ancillary Benefits by Industry Classification (Participant Weighted)........................................................................26
PENSION BENEFIT GUARANTY CORPORATION 1 BENEFIT PROVISIONS IN MULTIEMPLOYER PLANS

SUMMARY

This supplement to PBGC’s Databook provides a detailed study of the plan provisions available to active 

workers in multiemployer defined benefit pension plans based on data compiled from Form 5500 filings for 

582 multiemployer defined benefit pension plans which, in aggregate, cover approximately 90% of the total 

universe of active workers covered by all multiemployer defined benefit plans. The plan provision data used 

was obtained from plan provision summaries prepared by plan actuaries and filed with Form 5500 as 

documentation for determining reported plan liabilities.

This study analyzes benefit provisions along three categories – by industry classification, by plan funding 

“zone status” and by amount of current liability. The primary focus is on the structure and amount of the 

plans’ main benefit accrual formula. Figure 1 below illustrates the relative level of estimated average monthly 

benefit accruals per year of service provided by all multiemployer plans studied, broken down by industry 

classification, based on the plans that with reasonably reliable information. Further details can be found in 

Table 18.

Figure 1 - Predominant Accrual Rates for Active Participants by Industry

Source: 2016 Plan Year Form 5500 filings

$95.46

$55.46

$41.41 $43.56

$81.73

$72.62

$0

$25

$50

$75

$100

$125

$150

$175

$200

$225

$250

Construction Leisure &

Hospitality

Manufacturing Retail Transportation &

Warehousing

Other Industry

Distribution of Average Monthly Benefit Accruals per Year of Service by Industry Classification

(assumes an active employee with 15-year career)

Mean (X) 

$103.10

Mean (X) 

$44.25

Mean (X) 

$44.38

Mean (X) 

$60.87

Mean (X) 

$92.45

Mean (X) 

$75.01

Boxes below represent a range covering the 25th to 75th

percentiles. Dollar amounts next to the line within the boxes 

represent the median and the X' s represent the mean.
PENSION BENEFIT GUARANTY CORPORATION 2 BENEFIT PROVISIONS IN MULTIEMPLOYER PLANS

For purposes of this study, the level of benefits was determined as of normal retirement age for a 

hypothetical participant with 15 years of service and expressed as a monthly benefit accrual per year of 

service. Please see the Appendix for details about the methodologies employed for this survey.

In addition to looking at the primary benefit formulae, this supplement also reviews the prevalence of various 

normal retirement provisions, early retirement provisions, ancillary benefits, and optional benefit payment 

forms.

STUDY RESULTS AND CONCLUSIONS

Multiemployer plans offer a wide variety of plan formulas and features. A summary of some of the significant 

findings of the multiemployer pension benefit provisions studied are:

• The most common formulas provide for a flat dollar monthly benefit for each year of credited service 

(see Table 1).

• The average monthly accrual rate for the flat dollar plans is about $102 per month per year of service 

(see Tables 9 and 10).

• The average benefit accrual rate across all plan types that were included in the study is estimated to be 

comparable to a $99 per month per year of service benefit; the median benefit across all plans is 

estimated to be $83 per year of service (see Tables 17 and 18).

• The construction industry covers by far the highest share of plans (55%) and the highest share of active 

participants (42%). See Table 4 for more details.

• Pension accruals are generally lower for Critical and Critical & Declining plans than for healthier plans 

(see Table 17). These Critical and Critical & Declining plans also have lower incidence of disability 

benefit provisions (see Tables 35 and 36).

• Accrued pension benefits are higher than average in Construction and Transportation/Warehousing 

industries and lower than average in Retail and Manufacturing industries (see Table 18).

• Normal retirement date is overwhelmingly age 65 (with or without a service requirement), although a 

significant number of Construction industry plans use age 62. Construction industry plans, along with 

Transportation and Warehousing industry plans, have the highest incidence of subsidized early 

retirement benefits. “Subsidized” is defined as a 5% per year or less benefit reduction for early 

retirement. See Tables 26 and 38, and the Appendix for details.

Please refer to the Appendix at the end of this report for details on methodologies and assumptions.
PENSION BENEFIT GUARANTY CORPORATION 3 BENEFIT PROVISIONS IN MULTIEMPLOYER PLANS

BACKGROUND

MULTIEMPLOYER PLANS

A multiemployer plan is a pension plan created through a collective bargaining agreement between employers 

and a union. The employers are typically in the same or related industries, such as transportation, 

construction, or hospitality. Each employer contributes to the plan at an agreed upon rate to fund the 

aggregate plan liabilities. This contribution rate is typically reset, as needed, during subsequent collective 

bargaining negotiations to meet the statutory minimum funding requirements or other funding objectives 

established by the plan. Contribution rates for most plans are set as a rate per hour worked or similar amount 

per measure of work inputs (e.g., shifts worked) by active participants. 

REGULATORY ENVIRONMENT

Under the Employee Retirement Income Security Act of 1974 (ERISA), multiemployer pension plans are 

regulated by three primary agencies: 

• Department of Labor (DOL),

• Department of the Treasury/Internal Revenue Service (IRS), and 

• Pension Benefit Guaranty Corporation (PBGC).

These three regulators are referred to as the ERISA agencies in this study. Under the Multiemployer Pension 

Plan Amendments Act of 1980, the PBGC’s insurance program for multiemployer plans was separated from 

the insurance program for other covered plans. As a result, PBGC operates two legally and financially 

separate insurance programs with different levels of guarantees, premiums, and regulatory requirements. 

ERISA requires plans to comply with various reporting requirements several items to the ERISA agencies 

who collect much of this information jointly, through the filing of Form 5500 and its attachments.

DATA SOURCE

Plan provision data was captured from publicly available Form 5500 filings available on 

https://www.efast.dol.gov/welcome.html.

A significant portion of all ongoing multiemployer defined benefit pension plans were analyzed, and sample

data was chosen from the list of all plans that filed their 2014 Schedule MB by the time of the selection. The 

data was sorted by each plan’s total current liability and a sample was selected that included the largest 300 

plans and a random sample of the remaining plans. The original sample data included information for 599 

multiemployer plans. Subsequently, plans that did not file a 2016 Schedule MB due to insolvency, termination 

or a merger were eliminated from the sample data. The resulting final sample data contained information for 

582 plans.

The plans selected for the study cover about 90% of both the active participant counts and the corresponding 

active participant current liabilities of the multiemployer defined benefit pension plan universe based on the 

2016 Schedule MB filings. The tables in this study are based on the data collected for the 582 sample plans, 

not on the complete multiemployer defined benefit pension plan universe. Plans with compensation-based 

accrued benefit formulas or multiple formulas with a wide range of accrual rates, depending on a participant’s 

employee group, were not included in the monthly benefit tables.
PENSION BENEFIT GUARANTY CORPORATION 4 BENEFIT PROVISIONS IN MULTIEMPLOYER PLANS

Summaries of the main statistics for the sampled pension plans versus all multiemployer pension plans is 

outlined in the Tables A through D below. The comparison of data between Tables A and B as well as Tables 

C and D shows that the studied sample is representative of the entire multiemployer pension plan universe, 

both in terms of the level of benefit accruals as well as the distribution by industry and funded status.

Note that on all Tables in this study, individual percentages may not add up to 100% due to rounding of 

individual entries.

Table A - Studied Multiemployer Pension Plans by 2016 Zone Status

2016 Zone Status

Plan Count

Active Current Liability

(millions, $)

Active Participant 

Count

(thousands)

No. % Total Amount % Total No. % Total

Critical & Declining 47 8% $25,648 7% 199 6%

Critical 108 19% 52,485 14% 624 19%

Seriously Endangered 5 1% 1,200 1% 13 1%

Endangered 66 11% 47,465 13% 359 11%

“Green” 356 61% 235,243 65% 2,065 63%

Studied Plans Total 582 100% $362,041 100% 3,260 100%

Studied Plans as a 

percentage of Total 47% 90% 87%

Table B - All Multiemployer Pension Plans by 2016 Zone Status

2016 Zone Status

Plan Count

Active Current Liability

(millions, $)

Active Participant 

Count

(thousands)

No. % Total Amount % Total No. % Total

Critical & Declining 115 9% $26,846 7% 211 6%

Critical 216 17% 57,035 14% 688 18%

Seriously Endangered 6 1% 1,263 1% 14 1%

Endangered 135 11% 55,805 13% 402 11%

“Green” 769 62% 262,941 65% 2,449 64%

All Plans Total 1,241 100% $403,890 100% 3,764 100%
PENSION BENEFIT GUARANTY CORPORATION 5 BENEFIT PROVISIONS IN MULTIEMPLOYER PLANS

Table C - Studied Multiemployer Pension Plans by Industry Classification

Industry Classification

Plan Count

Active Current Liability

(millions, $)

Active Participant 

Count

(thousands)

No. % Total Amount % Total No. % Total

Construction 323 55% $189,289 52% 1,372 42%

Leisure & Hospitality 24 4% 17,253 5% 246 7%

Manufacturing 34 6% 15,317 4% 168 5%

Retail 40 7% 22,065 6% 502 15%

Transportation & 

Warehousing 67 12% 67,761 18% 419 13%

Other Industry 94 16% 50,356 15% 553 18%

Studied Plans Total 582 100% $362,041 100% 3,260 100%

Table D - All Multiemployer Pension Plans by Industry Classification

Industry Classification

Plan Count

Active Current Liability

(millions, $)

Active Participant 

Count

(thousands)

No. % Total Amount % Total No. % Total

Construction 692 56% $218,309 54% 1,571 42%

Leisure & Hospitality 51 4% 18,385 5% 280 7%

Manufacturing 97 8% 17,215 4% 200 5%

Retail 66 5% 24,023 6% 537 14%

Transportation & 

Warehousing 125 10% 70,376 17% 441 12%

Other Industry 210 17% 55,582 14% 735 20%

All Plans Total 1,241 100% $403,890 100% 3,764 100%
PENSION BENEFIT GUARANTY CORPORATION 6 BENEFIT PROVISIONS IN MULTIEMPLOYER PLANS

REPORTING ON MULTIEMPLOYER PLAN PROVISIONS 

BENEFIT ACCRUAL FORMULAS AND GENERAL CATEGORY DISTRIBUTIONS

Benefit formulas were classified into four major types:

i. Flat dollar per year of service, 

ii. Percent of contribution (POC), 

iii. Percent of final average pay, and 

iv. Percent of career average pay.

Where a plan has more than one benefit formula, the benefit provisions of the predominant participant group

was used, if determinable. If different provisions applied to employees hired before and after a certain date, 

the set of provisions applicable to the most recent hires was recorded. Otherwise, the provisions of the first 

participant group listed in the plan provisions attachment to Schedule MB was used. Tables 1 through 7 

below summarize the types of benefit accrual formulas and current liabilities based on various categories for 

all studied plans.

Table 1 - Plans by Type of Benefit Accrual Formula

Benefit

Formula Type % of Plans

% of Active Current 

Liability

% of Active 

Participants

Flat Dollar per Year of Service 59% 46% 50%

Percent of Contributions 34% 44% 39%

Percent of Final Average Pay 5% 7% 6%

Percent of Career Average Pay 2% 3% 5%

Total 100% 100% 100%

Table 2 - Plans by Amount of Active Current Liability

Active

Current Liability % of Plans

% of Active Current 

Liability

% of Active 

Participants

Less than $100M 40% 2% 3%

Between $100M and $500M 35% 15% 15%

More than $500M 25% 83% 82%

Total 100% 100% 100%
PENSION BENEFIT GUARANTY CORPORATION 7 BENEFIT PROVISIONS IN MULTIEMPLOYER PLANS

Table 3 - Plans by 2016 Zone Status

Zone Status % of Plans

% of Active 

Current Liability

% of Active 

Participants

Critical & Declining 8% 7% 6%

Critical 19% 14% 19%

Seriously Endangered 1% < 0.5% < 0.5%

Endangered 11% 13% 11%

“Green” 61% 65% 63%

Total 100% 100% 100%

Table 4 - Plans by Industry Classification

Industry Classification % of Plans

% of Active Current 

Liability % of Active Participants

Construction 55% 52% 42%

Leisure & Hospitality 4% 5% 8%

Manufacturing 6% 4% 5%

Retail 7% 6% 15%

Transportation & 

Warehousing 12% 19% 13%

Other Industry 16% 14% 17%

Total 100% 100% 100%

Table 5 – Percent of Active Participants by Amount of Active Current Liability and Type of Benefit 

Accrual Formula

Active

Current Liability

Flat Dollar

per Year

of Service

Percent of 

Contributions

Percent of 

Final 

Average 

Pay

Percent of 

Career 

Average 

Pay

% of Active 

Participants

Less than $100M 2% 1% < 0.5% < 0.5% 3%

Between $100M and $500M 10% 5% 1% < 0.5% 15%

More than $500M 39% 33% 5% 5% 82%

% of Active Participants 50% 39% 6% 5% 100%
PENSION BENEFIT GUARANTY CORPORATION 8 BENEFIT PROVISIONS IN MULTIEMPLOYER PLANS

Table 6 – Percent of Active Participants by 2016 Zone Status and Type of Benefit Accrual Formula

2016

Zone Status

Flat Dollar 

per Year of 

Service

Percent of 

Contributions

Percent of 

Final 

Average Pay

Percent of 

Career 

Average Pay

% of Active 

Participants

Critical & Declining 2% 4% 0% 0% 6%

Critical 11% 8% < 0.5% 0% 19%

Seriously Endangered < 0.5% < 0.5% 0% 0% < 0.5%

Endangered 3% 8% < 0.5% 0% 11%

“Green” 34% 19% 6% 5% 63%

% of Active Participants 50% 39% 6% 5% 100%

Table 7 – Percent of Active Participants by Industry Classification and Type of Benefit Accrual 

Formula

Industry

Classification

Flat Dollar

per Year

of Service

Percent of 

Contributions

Percent of Final 

Average Pay

Percent of 

Career 

Average Pay

% of Active 

Participants

Construction 21% 21% < 0.5% < 0.5% 42%

Leisure & Hospitality 6% 1% < 0.5% 1% 8%

Manufacturing 4% 2% 0% 0% 5%

Retail 10% 3% < 0.5% 2% 15%

Transportation & 

Warehousing 3% 10% < 0.5% 0% 13%

Other Industry 7% 3% 5% 2% 17%

% of Active 

Participants 50% 39% 6% 5% 100%
PENSION BENEFIT GUARANTY CORPORATION 9 BENEFIT PROVISIONS IN MULTIEMPLOYER PLANS

BENEFIT ACCRUAL RATES

Tables 8 through 15 depict the average estimated monthly benefit accrual rates per year of service for a 

hypothetical active participant with 15 years of benefit service under various breakdowns for all studied plans.

Note that if a plan’s benefit accruals are frozen, the average benefit accrual rate was calculated based on the 

years that the formula was still in effect, up through January 1, 2016.

Table 8 - Benefit Accrual Rates for Plans with Dollar-Per-Year of Service Formula

Current

Monthly Benefit Accrual 

Rate

% of Subtotal Plan 

Count

% of Subtotal Active 

Current Liability

% of Subtotal Active 

Count

Less than $11.00 1% < 0.5% 5%

$11.00 - $24.99 5% 1% 3%

$25.00 - $34.99 4% 15% 30%

$35.00 - $44.99 7% 8% 16%

$45.00 - $59.99 12% 8% 9%

$60.00 - $74.99 17% 12% 11%

$75.00 - $99.99 20% 14% 8%

$100.00 - $124.99 18% 26% 12%

$125.00 - $149.99 5% 7% 4%

$150.00 - $199.99 6% 6% 2%

$200.00 - $249.99 1% 1% 1%

$250.00 or more 2% 2% 1%

Total 100% 100% 100%
PENSION BENEFIT GUARANTY CORPORATION 10 BENEFIT PROVISIONS IN MULTIEMPLOYER PLANS

Table 9 - Benefit Accrual Rates for Plans with Dollar-Per-Year of Service Formula by 2016 Zone 

Status

Current Monthly 

Benefit Accrual Rate

Critical & 

Declining Critical

Seriously 

Endangered Endangered “Green”

% of 

Subtotal 

Plan Count

Less than $11.00 0% 3% 0% 0% 2% 1%

$11.00 - $24.99 21% 9% 0% 7% 2% 5%

$25.00 - $34.99 7% 3% 0% 0% 6% 4%

$35.00 - $44.99 7% 3% 0% 3% 9% 7%

$45.00 - $59.99 14% 20% 0% 17% 9% 12%

$60.00 - $74.99 29% 23% 0% 7% 17% 17%

$75.00 - $99.99 7% 20% 0% 21% 22% 20%

$100.00 - $124.99 14% 11% 100% 28% 18% 18%

$125.00 - $149.99 0% 3% 0% 7% 6% 5%

$150.00 - $199.99 0% 6% 0% 0% 8% 6%

$200.00 - $249.99 0% 0% 0% 3% 1% 1%

$250.00 or more 0% 0% 0% 7% 2% 2%

Total 100% 100% 100% 100% 100% 100%

Plan-Weighted 

Average Accrual 

Rate

$59.04 $72.38 $102.00 $117.13 $111.06 $101.62
PENSION BENEFIT GUARANTY CORPORATION 11 BENEFIT PROVISIONS IN MULTIEMPLOYER PLANS

Table 10 - Benefit Accrual Rates for Plans with Dollar-Per-Year of Service Formula by Industry 

Classification

Current

Monthly

Benefit

Accrual Rate

ConstructionLeisure &

Hospitality

ManufacturingRetailTransportation & WarehousingOther Industry

% of 

Subtotal 

Studied

Plan Count

Less than $11.00 1% 0% 0% 0% 0% 6% 1%

$11.00 - $24.99 1% 8% 50% 10% 0% 12% 5%

$25.00 - $34.99 2% 17% 0% 10% 0% 9% 4%

$35.00 - $44.99 3% 25% 13% 0% 6% 15% 7%

$45.00 - $59.99 13% 8% 25% 40% 12% 0% 12%

$60.00 - $74.99 20% 0% 0% 30% 12% 18% 17%

$75.00 - $99.99 26% 0% 0% 10% 24% 12% 20%

$100.00 - $124.99 22% 8% 13% 0% 6% 21% 18%

$125.00 - $149.99 6% 0% 0% 0% 12% 3% 5%

$150.00 - $199.99 6% 0% 0% 0% 24% 3% 6%

$200.00 - $249.99 1% 0% 0% 0% 6% 0% 1%

$250.00 or more 0% 33% 0% 0% 0% 0% 2%

Plan-Weighted 

Average Accrual 

Rate

$87.75 $319.42 $40.08 $41.25 $101.38 $67.71 $101.62

Table 11 - Benefit Accrual Rates for Plans with Percent of Contribution Formula

Current Monthly Benefit 

Accrual Rate

% of Subtotal

Plan Count

% of Subtotal

Active Current Liability

% of Subtotal

Active Count

Less than 0.25% 1% < 0.5% < 0.5%

0.25% - 0.49% 3% 1% 1%

0.50% - 0.74% 8% 5% 5%

0.75% - 0.99% 7% 3% 2%

1.00% - 1.24% 44% 56% 52%

1.25% – 1.49% 7% 15% 14%

1.50% – 1.74% 10% 4% 5%

1.75% – 1.99% 7% 6% 10%

2.00% – 2.49% 8% 4% 4%

2.50% – 2.99% 1% < 0.5% < 0.5%

3.00% – 3.49% 4% 3% 5%

3.50% – 3.99% 0% 0% 0%

4.00% – 4.49% 1% < 0.5% < 0.5%

4.50% – 4.99% 1% 2% 2%

Total 100% 100% 100%
PENSION BENEFIT GUARANTY CORPORATION 12 BENEFIT PROVISIONS IN MULTIEMPLOYER PLANS

Table 12 - Benefit Accrual Rates for Plans with Percent of Contribution Formula by 2016 Zone 

Status

Current Monthly 

Benefit Accrual 

Rate

Critical & 

Declining Critical

Seriously 

Endangered Endangered “Green”

% of 

Subtotal 

Plan Count

Less than 0.25% 0% 0% 0% 0% 1% 1%

0.25% - 0.49% 5% 5% 0% 4% 2% 3%

0.50% - 0.74% 9% 7% 0% 23% 4% 8%

0.75% - 0.99% 9% 0% 0% 11% 9% 7%

1.00% - 1.24% 73% 55% 100% 38% 33% 44%

1.25% – 1.49% 5% 5% 0% 8% 9% 7%

1.50% – 1.74% 0% 9% 0% 0% 15% 10%

1.75% – 1.99% 0% 7% 0% 4% 9% 7%

2.00% – 2.49% 0% 9% 0% 12% 9% 8%

2.50% – 2.99% 0% 0% 0% 0% 2% 1%

3.00% – 3.49% 0% 2% 0% 0% 7% 4%

3.50% – 3.99% 0% 0% 0% 0% 0% 0%

4.00% – 4.49% 0% 0% 0% 0% 1% 1%

4.50% – 4.99% 0% 2% 0% 0% 1% 1%

Plan-Weighted 

Average Accrual 

Rate

0.95% 1.30% 1.10% 1.05% 1.47% 1.31%
PENSION BENEFIT GUARANTY CORPORATION 13 BENEFIT PROVISIONS IN MULTIEMPLOYER PLANS

Table 13 - Benefit Accrual Rates for Plans with Percent of Contribution Formula by Industry 

Classification

Current Monthly 

Benefit Accrual Rate

ConstructionLeisure & HospitalityManufacturingRetailTransportation & WarehousingOther Industry

% of 

Subtotal 

Plan Count

Less than 0.25% 1% 0% 0% 0% 0% 0% 1%

0.25% - 0.49% 2% 0% 6% 0% 5% 5% 3%

0.50% - 0.74% 10% 0% 0% 0% 14% 0% 8%

0.75% - 0.99% 8% 0% 0% 10% 0% 15% 7%

1.00% - 1.24% 40% 100% 72% 40% 48% 35% 44%

1.25% – 1.49% 6% 0% 6% 0% 14% 10% 7%

1.50% – 1.74% 13% 0% 6% 10% 5% 0% 10%

1.75% – 1.99% 6% 0% 6% 0% 0% 25% 7%

2.00% – 2.49% 8% 0% 0% 20% 14% 5% 8%

2.50% – 2.99% 2% 0% 0% 0% 0% 0% 1%

3.00% – 3.49% 4% 0% 6% 20% 0% 0% 4%

3.50% – 3.99% 0% 0% 0% 0% 0% 0% 0%

4.00% – 4.49% 1% 0% 0% 0% 0% 0% 1%

4.50% – 4.99% 1% 0% 0% 0% 0% 5% 1%

Plan-Weighted 

Average Accrual Rate 1.32% 1.00% 1.20% 1.67% 1.14% 1.42% 1.31%
PENSION BENEFIT GUARANTY CORPORATION 14 BENEFIT PROVISIONS IN MULTIEMPLOYER PLANS

Table 14 - Benefit Accrual Rates for Plans with Final Average Pay Formula

Current Annual

Benefit Accrual Rate

% of Subtotal Plan 

Count

% of Subtotal 

Active Current 

Liability

% of Subtotal 

Active Count

1-Year Pay Averaging Period 6% 3% 3%

1.50% – 1.99% 3% 2% 3%

3.00% or greater 3% 1% < 0.5%

3-Year Pay Averaging Period 26% 13% 7%

1.00% – 1.49% 3% < 0.5% < 0.5%

2.00% – 2.49% 3% 1% 1%

2.50% – 2.99% 10% 8% 4%

3.00% or greater 10% 4% 2%

5-Year Pay Averaging Period 52% 40% 27%

Less than 1.00% 3% < 0.5% < 0.5%

1.00% – 1.49% 10% 5% 4%

1.50% – 1.99% 16% 14% 13%

2.00% – 2.49% 19% 19% 10%

2.50% – 2.99% 3% 1% **

10-Year Pay Averaging Period 10% 42% 61%

1.50% – 1.99% 3% 38% 59%

2.00% – 2.49% 3% 3% 1%

2.50% – 2.99% 3% 1% 1%

Over 10 Years Pay Averaging Period 6% 2% 2%

2.00% – 2.49% 6% 2% 2%

Total 100% 100% 100%

Table 15 - Benefit Accrual Rates for Plans with Percent of Career Earnings Formula*

Current Benefit

Accrual Rate

% of Subtotal

Plan Count

% of Subtotal

Active Current Liability

% of Subtotal

Active Count

Less than 1.00% 27% 21% 47%

1.00% – 1.49% 9% 1% 1%

1.50% – 1.99% 27% 20% 14%

2.00% – 2.49% 18% 33% 18%

2.50% – 2.99% 9% 15% 4%

3.00% or greater 9% 11% 16%

Total 100% 100% 100%

* All studied multiemployer pension plans with percent-of-career-earnings benefit formula are in the “Green” zone 

for the 2016 plan year. The plan-weighted average accrual rate for these plans is 1.57% of career earnings.
PENSION BENEFIT GUARANTY CORPORATION 15 BENEFIT PROVISIONS IN MULTIEMPLOYER PLANS

BENEFIT AVERAGES ACROSS ALL PLANS

Tables 16 through 18 depict the average estimated monthly benefit accruals per year of service for a 

hypothetical active participant with 15 years of benefit service under various breakdowns for all studied plans

which were deemed to have reasonably reliable information (442 plans out of the 582 plan sample were 

deemed to meet this criteria). Note that if a plan’s benefit accruals are frozen, the average benefit accrual 

rates were calculated based on the years that the formula was still in effect, up through January 1, 2016 –

there are five such plans included here, representing about 1% of the total. The monthly estimates for plans 

with percentage of contribution formulas and pay-related formulas are based on an approximation, as 

outlined in the Appendix.

Table 16 - Average Estimated Monthly Benefit Accruals 

Average Monthly Benefit 

Accrual

% of Total

Plan Count

% of Total Active 

Current Liability

% of Total

Active Count

Less than $11.00 1% 0% 2%

$11.00 - $24.99 6% 3% 8%

$25.00 - $34.99 4% 5% 11%

$35.00 - $44.99 6% 3% 6%

$45.00 - $59.99 10% 7% 11%

$60.00 - $74.99 16% 30% 30%

$75.00 - $99.99 18% 10% 8%

$100.00 - $124.99 18% 16% 8%

$125.00 - $149.99 9% 14% 10%

$150.00 - $199.99 8% 8% 4%

$200.00 - $249.99 1% 1% <0.5%

$250.00 or more 2% 4% 2%

Total 100% 100% 100%
PENSION BENEFIT GUARANTY CORPORATION 16 BENEFIT PROVISIONS IN MULTIEMPLOYER PLANS

Table 17 - Average Estimated Monthly Benefit Accruals by 2016 Zone Status

Average Monthly 

Benefit Accrual

Critical & 

Declining Critical

Seriously 

Endangered Endangered “Green”

% of Total 

Plan Count

Less than $11.00 0% 1% 0% 0% 2% 1%

$11.00 - $24.99 19% 10% 0% 5% 3% 6%

$25.00 - $34.99 8% 4% 0% 0% 4% 4%

$35.00 - $44.99 11% 5% 0% 2% 7% 6%

$45.00 - $59.99 14% 17% 0% 11% 8% 10%

$60.00 - $74.99 31% 13% 0% 14% 16% 16%

$75.00 - $99.99 3% 17% 33% 18% 21% 18%

$100.00 - $124.99 11% 13% 33% 23% 19% 18%

$125.00 - $149.99 3% 9% 33% 11% 9% 9%

$150.00 - $199.99 0% 9% 0% 5% 9% 8%

$200.00 - $249.99 0% 1% 0% 5% 1% 1%

$250.00 or more 0% 1% 0% 7% 2% 2%

Total 100% 100% 100% 100% 100% 100%

Plan-Weighted 

Average Accrual $57.40 $85.58 $106.97 $120.16 $103.90 $98.83

Plan-Weighted 

Median Accrual $56.29 $74.50 $102.00 $100.00 $86.24 $83.33

Note that Critical and Critical & Declining plans have lower than average benefit accruals. Such plans also 

tend to have relatively high contribution rates – as such, the differential in the benefit accrual rate (relative to 

contributions) is likely larger than the numbers above suggest.

Also, as previously noted, if a plan’s benefit accruals are frozen, the average benefit accrual rate was calculated 

based on the years that the formula was still in effect, up through January 1, 2016. 
PENSION BENEFIT GUARANTY CORPORATION 17 BENEFIT PROVISIONS IN MULTIEMPLOYER PLANS

Table 18 - Average Estimated Monthly Benefit Accruals by Industry Classification

Average Monthly 

Benefit Accrual

ConstructionLeisure & HospitalityManufacturingRetailTransportation & WarehousingOther Industry

% of Total 

Plan 

Count

Less than $11.00 1% 5% 0% 0% 0% 3% 1%

$11.00 - $24.99 1% 5% 27% 32% 2% 10% 6%

$25.00 - $34.99 2% 11% 8% 14% 0% 8% 4%

$35.00 - $44.99 4% 16% 19% 5% 5% 10% 6%

$45.00 - $59.99 9% 16% 27% 23% 12% 4% 10%

$60.00 - $74.99 16% 0% 12% 14% 26% 18% 16%

$75.00 - $99.99 22% 5% 0% 9% 19% 19% 18%

$100.00 - $124.99 22% 16% 8% 5% 14% 14% 18%

$125.00 - $149.99 10% 5% 0% 0% 12% 9% 9%

$150.00 - $199.99 11% 0% 0% 0% 9% 3% 8%

$200.00 - $249.99 2% 0% 0% 0% 2% 0% 1%

$250.00 or more 2% 21% 0% 0% 0% 1% 2%

Total 100% 100% 100% 100% 100% 100% 100%

Plan-Weighted 

Average Accrual $103.10 $290.22* $44.38 $44.25 $92.45 $75.01 $98.83

Plan-Weighted 

Median Accrual $95.46 $55.46 $41.41 $42.12 $81.73 $72.62 $83.33

* The plan-weighted average for the Leisure & Hospitality industry is skewed due to very large benefits under professional sports 

teams’ plans. The plan-weighted average monthly benefit accrual for the Leisure & Hospitality industry, excluding the professional 

sports teams, is $60.87.
PENSION BENEFIT GUARANTY CORPORATION 18 BENEFIT PROVISIONS IN MULTIEMPLOYER PLANS

NORMAL RETIREMENT PROVISIONS

Tables 19 through 21 summarize normal retirement eligibility requirements by various categories for all 

studied plans.

Table 19 - Plan’s Normal Retirement Eligibility Requirements

Normal Pension Eligibility 

Requirements

(Age/Service)

% of Total

Plan Count

% of Total Active 

Current Liability

% of Total Active 

Count

Under 62/Under 5 1% < 0.5% < 0.5%

Under 62/5 5% 3% 2%

Under 62/Over 5 1% 1% 1%

62/Under 5 2% 1% < 0.5%

62/5 17% 9% 7%

62/Over 5 1% < 0.5% < 0.5%

63 - 64/5 2% 3% 2%

65/Under 5 4% 10% 9%

65/5 67% 73% 79%

65/Over 5 1% 1% < 0.5%

Over 65/5 < 0.5% < 0.5% < 0.5%

Total 100% 100% 100%
PENSION BENEFIT GUARANTY CORPORATION 19 BENEFIT PROVISIONS IN MULTIEMPLOYER PLANS

Table 20 - Normal Retirement Eligibility Requirements by 2016 Zone Status

Normal 

Retirement 

Eligibility 

Requirements

(Age/Service)

Critical & 

Declining Critical

Seriously 

Endangered Endangered “Green”

% of Active 

Participants

Under 62/Under 5 - - - 1% < 0.5% < 0.5%

Under 62/5 < 0.5% 3% - 3% 1% 2%

Under 62/Over 5 - 3% - - < 0.5% 1%

62/Under 5 - < 0.5% - < 0.5% 1% < 0.5%

62/5 1% 4% 65% 6% 7% 7%

62/Over 5 - - - < 0.5% < 0.5% < 0.5%

63 - 64/5 10% 5% - - < 0.5% 2%

65/Under 5 10% 8% 1% 1% 11% 9%

65/5 78% 76% 35% 88% 78% 79%

65/Over 5 - 1% - 1% 1% < 0.5%

Over 65/5 - - - - < 0.5% < 0.5%

Total 100% 100% 100% 100% 100% 100%
PENSION BENEFIT GUARANTY CORPORATION 20 BENEFIT PROVISIONS IN MULTIEMPLOYER PLANS

Table 21 - Active Participant Normal Retirement Eligibility Requirements by Industry Classification

Normal Retirement 

Eligibility 

Requirements

(Age/Service)

ConstructionLeisure & HospitalityManufacturingRetailTransportation & WarehousingOther Industry

% of Total 

Active 

Participants

Under 62/Under 5 <0.5% 1% - - - - <0.5%

Under 62/5 2% - <0.5% 3% 2% 1% 2%

Under 62/Over 5 <0.5% - - 3% 1% - 1%

62/Under 5 <0.5% 1% - - <0.5% 1% < 0.5%

62/5 11% <0.5% <0.5% 8% 3% 5% 7%

62/Over 5 <0.5% - - <0.5% <0.5% - <0.5%

63 - 64/5 3% - <0.5% - 5% - 2%

65/Under 5 1% 4% 1% 13% 48% 2% 9%

65/5 82% 94% 99% 73% 39% 91% 79%

65/Over 5 1% - - - 2% - <0.5%

Over 65/5 <0.5% - - - - - <0.5%

Total 100% 100% 100% 100% 100% 100% 100%
PENSION BENEFIT GUARANTY CORPORATION 21 BENEFIT PROVISIONS IN MULTIEMPLOYER PLANS

EARLY RETIREMENT ELIGIBILITY

Tables 22 through 24 summarize early retirement eligibility requirements by various categories for all studied

plans. Note that these tables include eligibility for both subsidized and unsubsidized early retirement. For 

information about subsidized early retirement benefits, see the section on Ancillary Benefits (Tables 29-33).

Table 22 - Early Retirement Eligibility Requirements

Early Pension

Eligibility Requirements

(Age/Service)

% of Total

Plan Count

% of Total Active 

Current Liability

% of Total

Active Count

Under 50/Under 5 1% <0.5% <0.5%

Under 50/5 1% 1% 1%

Under 50/Over 5 1% 1% 1%

50 - 54/Under 5 <0.5% <0.5% <0.5%

50 - 54/5 3% 2% 2%

50 - 54/Over 5 7% 8% 5%

55/Under 5 1% 2% 1%

55/5 21% 30% 39%

55/6 – 9 1% <0.5% <0.5%

55/10 37% 32% 28%

55/11 – 14 <0.5% 2% 1%

55/15 9% 7% 6%

55/Over 15 3% 4% 3%

Over 55/Under 5 <0.5% <0.5% <0.5%

Over 55/5 6% 6% 11%

Over 55/Over 5 9% 4% 3%

Total 100% 100% 100%
PENSION BENEFIT GUARANTY CORPORATION 22 BENEFIT PROVISIONS IN MULTIEMPLOYER PLANS

Table 23 - Early Retirement Eligibility Requirements by 2016 Zone Status

Early Retirement 

Eligibility 

Requirements

(Age/Service)

Critical & 

Declining Critical

Seriously 

Endangered Endangered “Green”

% of Active 

Participants

Under 50/Under 5 - - - 1% <0.5% <0.5%

Under 50/5 - - - 3% 1% 1%

Under 50/Over 5 6% - - 2% <0.5% 1%

50-54/Under 5 - - - - <0.5% <0.5%

50-54/5 <0.5% 2% - 3% 2% 2%

50-54/Over 5 32% 3% 65% 2% 3% 5%

55/Under 5 - <0.5% - 6% <0.5% 1%

55/5 10% 56% 24% 25% 39% 39%

55/Over 5 50% 35% 11% 50% 36% 38%

Over 55/Under 5 - <0.5% - - - <0.5%

Over 55/5 <0.5% 1% - 6% 16% 10%

Over 55/Over 5 2% 3% - 2% 3% 3%

Total 100% 100% 100% 100% 100% 100%
PENSION BENEFIT GUARANTY CORPORATION 23 BENEFIT PROVISIONS IN MULTIEMPLOYER PLANS

Table 24 - Early Retirement Eligibility Requirements by Industry Classification*

Early Pension 

Eligibility 

Requirements

(Age/Service)

ConstructionLeisure & HospitalityManufacturingRetailTransportation & WarehousingOther Industry

% of Total 

Active Count

Under 50/Under 5 - 2% - - - - <0.5%

Under 50/5 1% - - - 1% - 1%

Under 50/Over 5 1% - - - 3% - 1%

50-54/Under 5 ** - - - - - <0.5%

50-54/5 ** 3% - 4% 3% 3% 2%

50-54/Over 5 3% - <0.5% 7% 21% 1% 5%

55/Under 5 2% - - - - <0.5% 1%

55/5 22% 58% 68% 56% 51% 40% 39%

55/6 – 9 <0.5% - - - - <0.5% <0.5%

55/10 39% 6% 14% 24% 3% 37% 28%

55/11 – 14 1% - - - 3% - 1%

55/15 6% 1% 15% 4% 7% 5% 6%

55/Over 15 2% <0.5% - 4% 2% 11% 3%

Over 55/Under 5 - - - - <0.5% - <0.5%

Over 55/5 20% 25% 1% - 1% 1% 10%

Over 55/Over 5 3% 5% 2% 1% 5% 2% 3%

Total 100% 100% 100% 100% 100% 100% 100%

OPTIONAL FORMS OF BENEFIT

Tables 25 through 28 summarize optional payment forms under various categories for all studied plans.

Table 25 - Optional Payment Forms Currently Offered

Optional

Payment Forms

% of Total

Plan Count

% of Total Active 

Current Liability

% of Total 

Active Count

Guarantee (Certain) Period 63% 65% 57%

Full Lump Sum at Retirement 1% 1% 1%

Partial Lump Sum at Retirement 8% 11% 10%
PENSION BENEFIT GUARANTY CORPORATION 24 BENEFIT PROVISIONS IN MULTIEMPLOYER PLANS

Table 26 - Plans by Size of Active Current Liability and Optional Payment Form

Active

Current Liability

Guarantee

(Certain) Period

Full Lump Sum at 

Retirement

Partial Lump Sum 

at Retirement

Less than $100 million 59% 1% 3%

Between $100 million and $500 million 65% < 0.5% 8%

More than $500 million 67% 2% 15%

% of Plans 63% 1% 8%

Table 27 - Active Participants by 2016 Zone Status and Optional Payment Forms

2016

Zone Status 

Guarantee

(Certain) Period

Full Lump Sum

at Retirement

Partial Lump Sum

at Retirement

Critical & Declining 69% - < 0.5%

Critical 46% - 1%

Seriously Endangered 7% - 11%

Endangered 88% - 14%

“Green” 54% 1% 13%

% of Total Active Count 57% 1% 10%

Table 28 - Active Participants by Industry Classification and Optional Payment Form

Industry Classification

Guarantee

(Certain) Period

Full Lump 

Sum

at 

Retirement

Partial 

Lump Sum

at 

Retirement

Construction 68% 1% 8%

Leisure & Hospitality 22% - 21%

Manufacturing 82% - 57%

Retail 35% - -

Transportation & Warehousing 34% < 0.5% 4%

Other Industry 72% 2% 8%

% of Total Active Count 57% 1% 10%
PENSION BENEFIT GUARANTY CORPORATION 25 BENEFIT PROVISIONS IN MULTIEMPLOYER PLANS

ANCILLARY FORMS OF BENEFIT

Tables 29 through 33 summarize ancillary benefits under various categories for all studied plans.

Table 29 - Types of Ancillary Benefits Offered

Ancillary Benefits Offered

% of Total

Plan Count

% of Total Active 

Current Liability

% of Total 

Active Count

Subsidized Early Retirement 72% 82% 75%

Disability Pension 89% 95% 95%

Pre-retirement Full* Lump Sum Death Benefit 13% 15% 11%

Pre-retirement Limited Lump Sum Death Benefit 25% 30% 25%

* Full lump sum death benefit implies the single payment of all employer contributions made on participant’s behalf or

one-time actuarially equivalent cash-out of the annuity payable to beneficiary.

Table 30 - Distribution of Types of Ancillary Benefits by 2016 Zone Status (Plan Weighted)

Zone Status for 2016 

Plan Year

Subsidized 

Early 

Retirement

Disability 

Pension

Pre-retirement 

Full Lump Sum 

Death Benefit *

Pre-retirement

Limited Lump Sum

Death Benefit

Critical & Declining 47% 53% 2% 4%

Critical 61% 83% 10% 14%

Seriously Endangered 60% 100% - 40%

Endangered 77% 92% 12% 30%

“Green” 78% 94% 15% 29%

% of Total Plan Count 72% 89% 13% 25%

* Full lump sum death benefit implies the single payment of all employer contributions made on participant’s behalf or one-time 

actuarially equivalent cash-out of the annuity payable to beneficiary.

Table 31 – Distribution of Types of Ancillary Benefits by 2016 Zone Status (Participant Weighted)

Zone Status for 2016 

Plan Year

Subsidized 

Early 

Retirement

Disability 

Pension

Pre-retirement 

Full Lump Sum 

Death Benefit *

Pre-retirement 

Limited Lump Sum 

Death Benefit

Critical & Declining 75% 89% 2% 35%

Critical 43% 87% 10% 5%

Seriously Endangered 35% 100% 0% 29%

Endangered 84% 98% 26% 23%

“Green” 83% 97% 10% 30%

% of Total Active Count 75% 95% 11% 25%

* Full lump sum death benefit implies the single payment of all employer contributions made on participant’s behalf or one-time

actuarially equivalent cash-out of the annuity payable to beneficiary.
PENSION BENEFIT GUARANTY CORPORATION 26 BENEFIT PROVISIONS IN MULTIEMPLOYER PLANS

Table 32 – Ancillary Benefits by Industry Classification (Plan Weighted)

Industry

Classification

Subsidized 

Early 

Retirement

Disability 

Pension

Pre-retirement 

Full Lump Sum 

Death Benefit*

Pre-retirement 

Limited Lump 

Sum Death 

Benefit

Construction 84% 95% 20% 32%

Leisure & Hospitality 50% 79% 8% 13%

Manufacturing 47% 71% 0% 9%

Retail 50% 75% 5% 3%

Transportation & Warehousing 69% 79% 0% 18%

Other Industry 59% 89% 2% 22%

% of Total Plan Count 72% 89% 13% 25%

* Full lump sum death benefit implies the single payment of all employer contributions made on participant’s behalf or one-time 

actuarially equivalent cash-out of the annuity payable to beneficiary.

Table 33 – Ancillary Benefits by Industry Classification (Participant Weighted)

Industry

Classification

Subsidized 

Early 

Retirement

Disability 

Pension

Pre-retirement 

Full Lump Sum 

Death Benefit*

Pre-retirement 

Limited Lump 

Sum Death 

Benefit

Construction 90% 99% 25% 19%

Leisure & Hospitality 35% 95% 3% 34%

Manufacturing 80% 96% - 59%

Retail 61% 83% 2% <0.5%

Transportation & Warehousing 90% 94% - 67%

Other Industry 53% 96% 1% 16%

% of Total Active Count 75% 95% 11% 25%

* Full lump sum death benefit implies the single payment of all employer contributions made on participant’s behalf or one-time 

actuarially equivalent cash-out of the annuity payable to beneficiary.
PENSION BENEFIT GUARANTY CORPORATION 27 BENEFIT PROVISIONS IN MULTIEMPLOYER PLANS

APPENDIX

DETAILS ON METHODOLOGIES AND ASSUMPTIONS

Study Methodology and Assumptions

The benefit provisions and plan measurements used to compile the descriptive statistics shown in this study

are based on the information that was available on the DOL EFAST website in late November - early 

December 2018.

The following pension plan statistics were taken directly from the downloaded 2016 Schedule MB filings:

• Zone status,

• Amount of active current liability,

• Number of active and in-pay plan participants,

• Expected annual benefits paid to plan participants.

The downloaded data was reviewed for reasonability but was not audited.

The industry classifications were based on the code entry on the Form 5500, which describe a very wide range 

of detailed industry types – statistics for this report are consolidated and are being presented as high-level 

industry groups. These groups can be diverse in composition and this diversity may explain some of the 

variation within the group. This is particularly apparent in the Leisure and Hospitality Industry, which is very 

diverse, including sponsors ranging from operas and professional sports teams to hoteliers and food service 

workers. Plans reporting as Insurance & Employee Benefit Funds (525100) or Labor Unions and Similar 

Labor Organizations (813930) are manually researched and corrected based on the business activity of the 

largest contributing employers.

The benefit provisions listed below were taken from the attachment to the most recent Schedule MB 

available on the DOL EFAST website:

• Pension benefit accrual formula and the corresponding time periods when certain accrual rates are 

effective,

• Normal retirement age and service eligibility requirements,

• Early retirement age and service eligibility requirements,

• Early retirement subsidy,

• Disability coverage,

• Pre-retirement survivor annuity death benefit,

• Pre-retirement lump sum death benefit, and

• Optional forms of payment.
PENSION BENEFIT GUARANTY CORPORATION 28 BENEFIT PROVISIONS IN MULTIEMPLOYER PLANS

The following methods and procedures were used to assemble the data for the study and to calculate needed 

statistics:

• All benefit formulas were classified into four major types: (i) flat dollar per year of service, (ii) percent 

of contribution (POC), (iii) percent of final average pay, and (iv) percent of career average pay.

• All Accrued benefits were calculated as of December 31, 2015.

• To calculate estimated accrued benefits under POC plans, employer contribution amounts and active 

participant headcounts were taken from Schedule MB for plan years 2003 through 2015 to calculate 

per-capita contributions. Because contributions shown on the Schedule MB include withdrawal liability 

payments, which are not generally broken out on Form 5500, a generic approximation was developed 

based on available withdrawal liability data that had been collected and averaged across all plans for 

which withdrawal liability data was available. Based on this, the amount of reported contributions was

decreased by a flat 18% across all plans (except for plans in the Construction industry, where no such 

adjustment was made) to approximate the benefit-bearing portion of annual contributions. While this 

adjustment is not accurate on individual plans, it is likely to be a reasonable estimate on an aggregate 

basis. The contributions were also adjusted for any caps and supplemental contributions (amounts not 

considered for benefit accrual purposes) if clearly disclosed by the actuary in the plan provisions 

summary.

• The uniform Final Average Salary used to calculate estimated accrued benefits under final-average pay 

plans, (reflected in the results presented in this report) was $50,000. This assumption is based on the 

participant-weighted average compensation reported in the corresponding attachment to the 2016

Schedule MB by the studied final-average pay plans with active current liability of $350 million or 

greater.

• The uniform Career Average Pay per year of service used to calculate estimated accrued benefits under 

career-average pay plans, reflected in the results presented in this study, was $55,000. This assumption 

is based on the participant-weighted average compensation reported in the corresponding attachment 

to the 2016 Schedule MB by the studied career-average pay plans with active current liability of $500 

million or greater. Career-average pay plans in the study cover higher-paid populations, therefore, the 

overall assumed annual average pay per year of service in a Career Average plan is higher than the 

overall assumed final average pay.

• In this study, the estimated average benefit accruals per year of service only for a hypothetical active 

employee with 15 years of service are shown. The 15-year average (covering the period from 2001-

2015) smooths out temporary accrual rate freezes and better represents plans that change accrual rates 

periodically (up and down). The results for 20-year and 25-year career lengths are not materially 

different.

Due to coverage of numerous participant groups and complexity of benefit provisions of certain 

multiemployer pension plans, the following simplifying assumptions were made to summarize the benefit 

provisions and fit them into the format required by the study:
PENSION BENEFIT GUARANTY CORPORATION 29 BENEFIT PROVISIONS IN MULTIEMPLOYER PLANS

• The benefit provisions of the predominant participant group, if determinable, based on information 

disclosed on line 8a of the Form 5500 (pension plan features), line 13 of Schedule R (employers making 

contributions greater than 5% of total plan contributions), or attachments to Schedule MB. If different 

provisions applied to employees hired before and after a certain date, the set of provisions applicable to 

the most recent hires was recorded. Otherwise, the provisions of the first participant group listed in the 

plan provisions attachment to Schedule MB was used.

• The hypothetical employee was assumed to work 1,500 hours per year if the benefit accrual rate was 

dependent on the number of work hours.

• One pension credit was assumed to be earned by a hypothetical employee in each plan year.

• If disclosed by the plan actuary, the normal retirement age applicable to the most recent benefit 

accruals was recorded for the study. Otherwise, the age of the earliest eligibility for Normal/Regular 

Pension applicable for the most recent benefit accruals under the plan was recorded.

• If disclosed by the plan actuary, the normal retirement service was set according to the plan’s most 

recent definition of the Normal Retirement Date (NRD). Otherwise, it was set to the least number of 

years required to earn a non-forfeitable benefit under the plan.

• Early retirement eligibility applicable to the most recent benefit accruals was recorded for the study.

• When there were multiple eligibilities for early retirement (for example, 55/15 and 60/5), the provision 

with the earliest age (unless it required 30 or more years of service) was reflected.

• An early retirement reduction of 5% per year or less for ages prior to NRD was assumed to be an early 

retirement subsidy. A plan that offers an early retirement subsidy, even if only a benefit portion had the 

embedded subsidy, while the remaining accruals were reduced on an actuarial equivalent basis, was 

recorded as having a subsidy.

• If disability or other ancillary benefits used to be offered under the plan, but have been eliminated, it 

was recorded that no such benefit is provided under the plan.

• If the largest amount of lump sum death benefit offered under the plan was $5,000 or less, it was

recorded that the plan offers no lump sum death benefit.

• If the maximum amount of lump sum payable upon retirement was $5,000 or less, it was recorded that 

the plan offers no lump sum form of payment.

• If a payment form, normal or optional, was available for at least a portion of the benefit, it was

recorded that such payment option is generally offered under the plan.

• Under POC plans, if the benefit-bearing portion of employer contributions was not clearly disclosed, it 

was assumed that all employer contributions were used for benefit accrual purposes.

• Two plans that described their benefit accruals in terms of lump sum amounts to the equivalent single 

life annuity accrual rates (by dividing the lump sum accrual by 15) were classified as flat dollar per year 

of service formulas.
PENSION BENEFIT GUARANTY CORPORATION 30 BENEFIT PROVISIONS IN MULTIEMPLOYER PLANS

Constraints and Limitations

Our study assumes that each participant is subject to the plan provisions applicable to the 15-year period 

ending December 31, 2015. Grandfathered plan provisions were excluded from the study for all purposes.

Simplifying assumptions were made to summarize the benefit provisions, as described previously in this 

document; therefore, Tables 16 through 18 rely on estimated accrued plan benefits and should be used with 

caution.

No distinction was made between normal and optional payment forms when studying the plan provisions 

data. Therefore, the proportion of multiemployer plans shown in this study as offering a guarantee (certain) 

period may be understated because not all filings contain disclosure of optional payment forms.

Only five out of 582 plans selected for the study (covering about 13,000 active participants) were in seriously 

endangered status for the 2016 plan year. Any findings for this plan category should be referenced with 

reservation due to the small sample size.