Under ERISA Sections 3(37) and 4001(a)(3), a multiemployer plan is a collectively bargained pension plan maintained by more than one employer, typically operating within the same or related industries, together with a labor union. Because these arrangements grow out of the Labor Management Relations Act, they are widely known as “Taft-Hartley plans.” They remain one of the most distinctive structures in the American retirement landscape, pooling contributions from many participating employers under the governance of a joint board of trustees drawn from both labor and management.
The scale is significant. There are roughly 1,500 active multiemployer defined benefit pension plans in the United States, covering approximately 10.1 million participants. The majority of those workers are employed in the building and construction trades, with substantial additional representation in transportation, manufacturing, retail food, hospitality, and entertainment. For millions of skilled tradespeople whose careers move from contractor to contractor and project to project, the multiemployer model is what makes a portable, dependable pension possible.
That same structure, however, makes these plans demanding to underwrite. Multiemployer plans carry layered fiduciary responsibilities, contribution streams from dozens or even hundreds of participating employers, withdrawal-liability exposure, and the elaborate statutory protocols that govern reorganization, insolvency, and termination. The administrative complexity and the long tail of risk lead many carriers to decline this class altogether. As a practical result, a great number of trustees discover that the mandatory fidelity bond coverage their plan is legally required to carry under ERISA Section 412 can be difficult to secure.
Surety One, Inc. does provide the ERISA bond for multi-employer plans. We understand the Taft-Hartley framework, the role of the joint board of trustees, and the duties owed by every fiduciary and plan official who handles plan funds or property. We write the fidelity bond that protects participants against loss from fraud or dishonesty, and we do it without treating a multiemployer structure as a reason to walk away. Whether your plan is modest or covers tens of thousands of participants across a regional or national jurisdiction, we are prepared to respond with capacity, speed, and a clear understanding of what your trustees actually need.
ERISA-Bonds.com is THE source for ERISA fidelity coverage, regardless of how your defined benefit plan is structured. From single-employer plans to the most intricate collectively bargained arrangements, our portal is built to deliver compliant coverage that satisfies both the bonding requirement and the expectations of the Department of Labor. Trustees, administrators, and plan counsel all rely on us to move quickly when a bond is needed to keep a plan in compliance.
Visit our ERISA bond portal to begin. For direct assistance with your multiemployer ERISA bonding need, contact us at (800) 373-2804 or email Underwriting@SuretyOne.com. Our underwriting team is ready to evaluate your plan, answer your questions, and place the coverage your fiduciaries are obligated to maintain, so that you can focus on serving the participants who are counting on it. Surety One, Inc. also offers broad fiduciary liability insurance coverages for those perils that lie outside of the fidelity bond form. Follow our blog for up-to-date news on all things ERISA.
