5 Challenges Facing Multiemployer Benefit Plans in 2024 and How to Overcome Them

Introduction

Navigating multiemployer benefit plans in 2024 requires agility and foresight. Changing regulations, fluctuating markets, and rising healthcare costs create a dynamic landscape for trustees and administrators. Foster & Foster Actuaries and Consultants draws on decades of experience to guide organizations through these complexities, supporting robust plans and serving participant needs. This article explores today’s top challenges and outlines actionable strategies for success.

Navigating Regulatory Compliance and ERISA Updates

Regulatory requirements are evolving rapidly, with new ERISA mandates and SECURE 2.0 Act provisions affecting eligibility, contributions, and plan features. Non-compliance risks include taxes, fiduciary penalties, and the loss of participant trust. Staying current is essential for maintaining plan health and effective governance.

• Conduct quarterly trustee education sessions to stay up to date on regulatory and ERISA changes.
• Engage actuarial consulting specialists experienced in multiemployer plans to monitor federal updates and prepare necessary amendments.
• Utilize compliance support tools, such as secure portals that flag missing Form 5500 data and automate PBGC premium reminders.

Foster & Foster’s legislative monitoring delivers timely alerts and integrates regulatory changes directly into plan administration, minimizing the risk of last-minute compliance issues.

Additional best practices include:

• Assign SECURE 2.0 Act responsibilities to specific team members with clear deadlines.
• Include regulatory check-ins on every board meeting agenda.
• Perform annual mock audits using templates that reflect Department of Labor inquiries.

Balancing Pension Funding Status and Long-Term Sustainability

The Special Financial Assistance program improved the average pension funding status to 103% by the end of 2025. However, market volatility, workforce aging, and the eventual expiration of SFA funds present ongoing risks. Underfunding can increase PBGC premiums and erode participant confidence.

• Stress-test funding projections using stochastic models to evaluate thousands of market scenarios.
• Implement dynamic contribution policies that adjust rates if the funded status falls below target levels.
• Use scenario modeling to assess the effects of early retirement incentives on defined benefit plans.

Foster & Foster’s reporting aligns investment performance with liability benchmarks, providing trustees with a comprehensive view of plan health. Diversifying investments—particularly with fixed-income strategies that match benefit payment timelines—can help reduce exposure to equity market fluctuations. Transparent, timely reporting empowers boards to make informed decisions and enables proactive adjustments.

Managing Rising Healthcare Costs and Health and Welfare Plans

Healthcare costs for multiemployer plans rose nearly 6% per member in 2023, driven by specialty drug prices and inflation. Administrators must control costs while maintaining competitive coverage for diverse bargaining units.

• Conduct pharmacy benefit analyses to identify rebate leakage and optimize PBM contracts.
• Design strategic plans with tiered networks and value-based care models to guide members toward high-quality, cost-effective providers.
• Implement wellness initiatives targeting chronic disease, which have been shown to slow claims growth within 18 months.

Foster & Foster combines national benchmark data with local labor-market trends to tailor recommendations for each Taft-Hartley group, providing administrators with actionable plans.

Additional strategies include:

• Compare pharmacy cost trends to national benchmarks each quarter.
• Pilot telehealth stipends, as 37% of small U.S. companies now use alternative funding models.
• Prepare for 2026 PBM reporting requirements through early budgeting and planning.

Mitigating Withdrawal Liability and Fiduciary Risks

Withdrawal liability can impose financial burdens on remaining employers if others exit the plan. Trustees must balance their fiduciary duties of loyalty, prudence, and diversification while managing these exposures.

• Perform annual actuarial risk modeling to assess how industry shifts and wage trends affect withdrawal liability.
• Establish clear communication protocols to ensure employers understand the financial impact of exiting the plan.
• Consider alternative structures, such as new benefit tiers or pooled-employer plans, to reduce risk exposure.

Foster & Foster makes complex withdrawal liability calculations more accessible and provides fiduciary education to clarify recent legal developments, supporting confident board decisions.

Best practices also include:

• Document prudent decision-making in detailed meeting minutes.
• Rotate fiduciary training topics to address emerging risk management strategies.
• Have external counsel periodically review plan documents for protective language.

Enhancing Plan Administration and Trustee Education

Participants increasingly expect real-time access to plan information, while cyber risks demand robust security protections. Trustees face growing pressure to process data, filings, and benefit changes efficiently.

• Integrate robust systems that consolidate census, payroll, and claims data feeds to minimize errors.
• Align data management with state privacy laws and ERISA electronic disclosure requirements.
• Prioritize continuous trustee education to stay prepared for evolving retirement plan challenges.

Foster & Foster differentiates itself with a secure client portal, custom benefit calculators, and on-demand trustee training covering topics ranging from withdrawal liability to healthcare cost trends.

Recommended actions include:

• Allocate at least six continuing education hours per trustee annually.
• Pair new board members with experienced mentors to support knowledge transfer.
• Review participant feedback surveys quarterly to detect and address service gaps early.

How Foster & Foster Sets the Standard

Foster & Foster’s actuaries combine strong personal relationships with nationwide analytics, adapting models to demographic and legislative changes. High client retention rates underscore the effectiveness of this approach.

What distinguishes Foster & Foster from many consulting firms is its commitment to independence, transparency, and personalized service. Unlike firms that sell investment or insurance products, Foster & Foster operates independently, ensuring recommendations are based solely on what benefits the plan.

Clients benefit from transparent pricing, advanced modeling tools, and custom client portals designed specifically for multiemployer plans. While many firms rely on standard software, Foster & Foster develops innovative modeling and analytics that provide deeper insight into plan performance and funding risks.

Most importantly, the firm prioritizes personal attention. Every client relationship is treated with care, ensuring trustees receive responsive support and clear guidance when making complex decisions.

Trustees considering actuarial support can take several practical steps:

• Identify their plan’s primary challenges, such as funding volatility or regulatory compliance gaps.
• Request demonstrations of modeling tools and secure client portals.
• Consider phased engagements, beginning with a compliance review or funding analysis before expanding to broader consulting services.

Charting a Confident Path Forward for Multiemployer Plans

The landscape for multiemployer benefit plans in 2024 is defined by five primary challenges: regulatory complexity, pension funding, healthcare costs, withdrawal liability, and efficient administration. Each challenge is significant, but practical solutions are within reach.

Foster & Foster delivers actuarial consulting expertise for multiemployer plans through clear communication, deep technical knowledge, and innovative technology that helps keep plans compliant, well-funded, and focused on participants.

Whether you need guidance on the SECURE 2.0 Act implementation, scenario modeling, or pharmacy benefit audits, Foster & Foster helps transform pressure into progress.

Partnering for Plan Success

Meeting today’s multiemployer benefit plan challenges requires strategy, transparency, and expert support. Foster & Foster Actuaries and Consultants offers the experience and resources needed for plans to thrive in a complex environment.

For ongoing support and tailored solutions, explore our Services page today.
 
References
Multiemployer Pension Funding Study Year-end 2025 – https://www.milliman.com
5 Trends Will Shake Up the Retirement Industry in 2026 – https://worldatwork.org
Anticipating Key Employer Trends Through 2025 for 2026 – https://www.hmpgloballearningnetwork.co