What characterizes a multiemployer plan?

• A. An plan to which more than one employer contributes and which is maintained pursuant to at least one collective bargaining agreement between at least one employee organization and more than one employer
• B. An plan maintained by a single employer
• C. A plan that covers only a single employee
• D. A plan that provides only non-medical benefits

Answer: (A)

A multiemployer plan is defined by having contributions from more than one employer and being maintained under a collective bargaining agreement that involves at least one employee organization and multiple employers. This setup is common in industries where several employers pool resources to fund benefits for workers who may move between companies within the same industry. The key elements are: multiple employers contributing to one plan, and the plan being kept in place under a bargaining agreement that includes a labor union (employee organization) and more than one employer. That distinguishes it from a single-employer plan, from a plan that covers only one employee, or from a plan that merely provides non-medical benefits.