In short
A multiemployer plan is a pension or other benefit plan to which two or more unrelated employers contribute, usually under collective bargaining agreements. Each employer accounts for it like a defined contribution plan.
Key takeaways
- Expense is the contribution required for the period.
- Employers disclose their significant plans, including their funded status and any withdrawal liability risk.
- Leaving an underfunded plan can trigger a withdrawal liability.
Where it's tested
BAR: Employee Benefit Plan Accounting — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
A defined benefit plan has plan assets with a fair value of $8,000,000 and a projected benefit obligation of $9,500,000. How is this reported on the balance sheet?