Companies paying into multi-employer pension plans may be facing some catch-up contributions that could create new liabilities on the balance sheet and a long list of new disclosure requirements.
Multi-employer plans are defined-benefit pension plans typically bargained through labor unions, such as the pension plan provided to Teamsters, for example. As such, multiple unrelated corporate participants might be contributing to a single plan to support the monthly retirement benefit promised to members through labor contracts. And like many long-term investment plans these days, multi-employer plans are woefully behind target.
Moody’s Investor Services recently analyzed 126 of the largest multi-employer plans, and ...