Withdrawal Liability Regulations

Withdrawal liability regulations require employers participating in multi-employer pension plans to contribute fairly and consistently. When an employer leaves or stops contributing to the plan, they may be responsible for their share of the unfunded pension liabilities—funds needed to meet future obligations—based on the length and level of their participation. These rules ensure the pension plan remains financially healthy so retirees can receive their promised benefits, and they also protect remaining contributing employers from unfairly bearing the cost of others’ withdrawals.