Taft-Hartley Pension Plan
What Does Taft-Hartley Pension Plan Mean?
A Taft-Hartley pension plan is a multi-employer retirement plan created in 1947 by the Tart-Hartley Act. Employers contribute a fixed amount on behalf on their employees, who then receive a fixed amount upon retiring. This shared pension plan allows employers to split the costs and potentially create a better retirement plan for all their employees.
Insuranceopedia Explains Taft-Hartley Pension Plan
In a Tart-Hartley pension plan, an employee union negotiates the contribution amount with the employer, and a third party consisting of equal number of representatives for the employer and the employees manages and invests the contributions in the interest of the plan participants. Moreover, they decide on the particulars of the plan, such as how long employees need to work to qualify for benefits and the amount they will receive at retirement. Therefore, the employers are not responsible for any investment losses.