(ERISA Sec. 4041A)

There are two types of multiemployer plan terminations – mass withdrawal and plan amendment. A mass withdrawal termination occurs when all employers withdraw or cease to be obligated to contribute to the plan. A plan amendment termination occurs when the plan adopts an amendment that provides that participants will receive no credit for service with any employer after a specified date, or an amendment that makes it no longer a covered plan.

Unlike single-employer plans, multiemployer plans continue to pay all vested benefits out of existing plan assets and withdrawal liability payments.  PBGC’s guarantee of the benefits in a terminated, multiemployer plan – payable as financial assistance to the plan – only starts if and when the plan is unable to make payments at the statutorily guaranteed level. See Insolvent plans.