# ASC 715-80-55: Compensation—Retirement Benefits — Multiemployer Plans — 55 Implementation Guidance and Illustrations Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/715/80/#55-implementation-guidance-and-illustrations) Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-10T01:01:39.176Z to 2026-09-10T01:01:39.176Z Record version: sha256:b95459a3f0860ee70c994f533077c66fb95ceacf5f0844307b667f40c0a681c9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 715-80-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/715/80/#55-implementation-guidance-and-illustrations) SEC content: no #### Implementation Guidance ##### [715-80-55-1](https://asc.understandingaccounting.org/asc/715/80/#715-80-55-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:01:39.176Z to 2026-09-10T01:01:39.176Z Record version: sha256:1d294c3e54d1c80f0117b3b706fc3df8b1322c3471a17562467380faadbbd2f7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Section, which is an integral part of the requirements of this Subtopic, provides general guidance related to accounting and disclosure requirements of multiemployer pension and other postretirement benefit plans. ##### [715-80-55-2](https://asc.understandingaccounting.org/asc/715/80/#715-80-55-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:01:39.176Z to 2026-09-10T01:01:39.176Z Record version: sha256:2eba398ba2e805ac240529cc057f6ee9dd61bad88f50e56cb9b8399278742f09 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An employer participates in a multiemployer defined benefit pension plan. When the employer enters the plan or improves benefits under the plan, the employer unconditionally promises to pay certain future contributions to the plan and executes an agreement that specifies the amounts of those future contributions. The amounts of those future contributions are calculated based on the plan's prior service cost associated with the participants entering the plan or the improved benefits. In return, the plan unconditionally promises to pay retirement benefits to the employer's covered participants in the plan. The existence of the executed agreement does not require that a liability be reported beyond any contributions currently due and unpaid. ##### [715-80-55-3](https://asc.understandingaccounting.org/asc/715/80/#715-80-55-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:01:39.176Z to 2026-09-10T01:01:39.176Z Record version: sha256:9e79e934b7c2cde6294d3a0103afec3061de1ac118e63e0f18ba00de09d85eb0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A [multiemployer plan](https://asc.understandingaccounting.org/glossary/m/#multiemployer-plan "A pension or postretirement benefit plan to which two or more unrelated employers contribute, usually pursuant to one or more collective-bargaining agreements. A characteristic of multiemployer plans is that assets contributed by one participating employer may be used to provide benefits to employees of other participating employers since assets contributed by an employer are not segregated in a separate account or restricted to provide benefits only to employees of that employer. A multiemployer plan is usually administered by a board of trustees composed of management and labor representatives and may also be referred to as a joint trust or union plan. Generally, many employers participate in a multiemployer plan, and an employer may participate in more than one plan. The employers participating in multiemployer plans usually have a common industry bond, but for some plans the employers are in different industries and the labor union may be their only common bond. Some multiemployer plans do not involve a union. For example, local chapters of a not-for-profit entity (NFP) may participate in a plan established by the related national organization.") shall not be considered a substantially equivalent replacement plan (a successor plan) for an employer that terminates its single-employer defined benefit pension or other postretirement plan. Acceleration of the recognition as a component of net periodic postretirement benefit cost of prior service cost included in accumulated other comprehensive income would be required. ##### [715-80-55-4](https://asc.understandingaccounting.org/asc/715/80/#715-80-55-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:01:39.176Z to 2026-09-10T01:01:39.176Z Record version: sha256:09efcf22103f6058d70a9fa21a429f449c762c1a0f7222e4ec058b9eafc313f3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The characteristics and the accounting for a multiemployer plan are sufficiently different from a single-employer plan that neither plan can be a successor plan for the other. The nature of the employer's promise is different in each plan. In a single-employer plan, the employer promises to provide defined benefits. In a multiemployer plan, the employer promises to make a defined contribution. That employees continue to render service is important only if the accounting for a defined benefit plan is being applied, which includes the deferred recognition in earnings of certain items. Because the unit of account is the individual plan, the termination of a single-employer defined benefit plan without replacing it with a successor defined benefit plan concludes the employer's ability to apply defined benefit plan accounting. Therefore, to continue to recognize the prior service cost as a component of net periodic postretirement benefit cost over future periods for the terminated plan in this situation is not appropriate. ##### [715-80-55-5](https://asc.understandingaccounting.org/asc/715/80/#715-80-55-5) Pending content: no Source downloaded (UTC): 2026-09-10T01:01:39.176Z to 2026-09-10T01:01:39.176Z Record version: sha256:d103e3cdffb5b5de22e6f3ec64259c784e502bf3fffca23962ea58c66250e0af Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An employer that has a single-employer postretirement benefit plan decides to provide health care benefits to its retirees through participation with several unrelated employers in a group postretirement health care benefit arrangement that does not result from collective bargaining. The arrangement is administered by an independent board of trustees and provides a uniform level of benefits to all retirees by utilizing group medical insurance contracts. Each participating employer is assessed an annual contribution for its share of insurance premiums, plus administrative costs, and may require its respective retirees to pay a portion of the annual assessment. Retirees whose former employer discontinues paying the annual assessment have the right to continue participation if they assume the cost of the annual premiums needed to maintain their existing benefits. The employer shall not account for this arrangement as a multiemployer plan. A characteristic of a multiemployer plan is that its obligation to retirees continues even if a former employer discontinues its participation in the plan. That characteristic is not present in the arrangement described. #### Illustrations ##### [715-80-55-6](https://asc.understandingaccounting.org/asc/715/80/#715-80-55-6) Pending content: no Source downloaded (UTC): 2026-09-10T01:01:39.176Z to 2026-09-10T01:01:39.176Z Record version: sha256:b80d1b7c9560c06cc501d3ca533ca6eac822a01c3d7ee22e92f0bd2ee9ec0fa2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates certain, but not all, of the disclosure requirements in paragraphs [715-80-50-4 through 50-9](https://asc.understandingaccounting.org/asc/715/80/#715-80-50-4) . ##### [715-80-55-7](https://asc.understandingaccounting.org/asc/715/80/#715-80-55-7) Pending content: no Source downloaded (UTC): 2026-09-10T01:01:39.176Z to 2026-09-10T01:01:39.176Z Record version: sha256:eaa03ea473a98387759c3dd580068d7dcb4510c2ca7e158cfb569c9954686241 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entity A contributes to a number of multiemployer defined benefit pension plans under the terms of collective-bargaining agreements that cover its union-represented employees. The risks of participating in these multiemployer plans are different from single-employer plans in the following aspects: 1. a Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers. 2. b If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. 3. c If Entity A chooses to stop participating in some of its multiemployer plans, Entity A may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability. ##### [715-80-55-8](https://asc.understandingaccounting.org/asc/715/80/#715-80-55-8) Pending content: no Source downloaded (UTC): 2026-09-10T01:01:39.176Z to 2026-09-10T01:01:39.176Z Record version: sha256:384a287088d0f8bedc97ef9e8e30ad6342c9d0e37b497e2305f5c4b61571844a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entitiy A's participation in these plans for the annual period ended December 31, 20X0, is outlined in the table below. The "EIN/Pension Plan Number" column provides the Employer Identification Number (EIN) and the three-digit plan number, if applicable. Unless otherwise noted, the most recent Pension Protection Act (PPA) zone status available in 20X0 and 20X9 is for the plan's year-end at December 31, 20X9, and December 31, 20X8, respectively. The zone status is based on information that Entity A received from the plan and is certified by the plan's actuary. Among other factors, plans in the red zone are generally less than 65 percent funded, plans in the yellow zone are less than 80 percent funded, and plans in the green zone are at least 80 percent funded. The "FIP/RP Status Pending/Implemented" column indicates plans for which a financial improvement plan (FIP) or a rehabilitation plan (RP) is either pending or has been implemented. The last column lists the expiration date(s) of the collective-bargaining agreement(s) to which the plans are subject. Finally, the number of employees covered by Entity A's multiemployer plans decreased by 5 percent from 20X9 to 20X0, affecting the period-to-period comparability of the contributions for years 20X9 and 20X0. The significant reduction in covered employees corresponded to a reduction in overall business. There have been no significant changes that affect the comparability of 20X8 and 20X9 contributions. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-74A4889E-1B7B-4185-BCB7-6BCC3D233761-low.gif) "Pension Fund" EIN/Pension Plan Number Pension Protection Act Zone Status FIP/RP Status Pending/ Contributions of Entity A Surcharge "Expiration Date of Collective- Bargaining Agreement" 20X0 20X9 " Implemented" 20X0 20X9 20X8 Imposed ABC Fund 34 32-1899999 Red as of 9/30/2009 Yellow as of 9/30/2008 Pending " $1,883,000 " " $2,309,000 " " $2,226,000 " Yes 12/31/20X3 ABC Fund 37 52-5599999 - 002 Green Yellow No " 3,342,000 " " 3,609,000 " " 3,586,000 " No "12/31/20X2 to 12/31/20X3" (a) ABC Fund 40 92-3499999 Yellow Yellow No " 5,798,000 " " 6,435,000 " " 6,374,000 " No 12/31/20X5 ABC Fund 43 82-4299999 Red Red Pending " 3,539,000 " " 3,234,000 " " 3,218,000 " Yes 12/31/20X4 ABC Fund 46 (b) 82-6899999 Green Green No " 778,000 " " 816,000 " " 833,000 " No 12/31/20X3 ABC Fund 49 52-6199999 Yellow Yellow No " 534,000 " " 547,000 " " 491,000 " No 12/31/20X2 ABC Fund 52 72-8599999 - 001 Red Green Implemented " 1,349,000 " " 1,134,000 " " 1,050,000 " No 12/31/20X5 ABC Fund 55 82-2999999 Green Green No " 1,224,000 " " 1,046,000 " " 1,151,000 " No 12/31/20X4 Plans for which plan financial information is not publicly available outside Entity A's financial statements ABC Fund 61 (c) N/A N/A N/A N/A " 418,000 " " 482,000 " " 491,000 " N/A 12/31/20X2 ABC Fund 73 (d) N/A N/A N/A N/A " 1,872,000 " " 1,764,000 " " 1,693,000 " N/A 12/31/20X2 Other funds " 147,000 " " 160,000 " " 169,000 " Total contributions: " $20,884,000 " " $21,536,000 " " $21,282,000 " (a) "Entity A is party to two significant collective-bargaining agreements that require contributions to ABC Fund 37. Agreements D and E expire on 12/31/20X2, and 12/31/20X3, respectively. Of the two, Agreement D is more significant because 70 percent of Entity A's employee participants in ABC Fund 37 are covered by that agreement. Agreement E also is significant because its participants are involved in multiple projects that Entity A is scheduled to start in 20X4. " (b) "ABC Fund 46 utilized the special 30-year amortization rules provided by Public Law 111-192, Section 211 to amortize its losses from 2008. The plan recertified its zone status after using the amortization provisions of that law. " (c) "Plan information for ABC Fund 61 is not publicly available. ABC Fund 61 provides fixed, monthly retirement payments on the basis of the credits earned by the participating employees. To the extent that the plan is underfunded, the future contributions to the plan may increase and may be used to fund retirement benefits for employees related to other employers who have ceased operations. Entity A could be assessed a withdrawal liability in the event that it decides to cease participating in the plan. ABC Fund 61's financial statements for the years ended June 30, 20X0 and 20X9 indicated total assets of $62,000,000 and $51,000,000, respectively; total actuarial present value of accumulated plan benefits of $120,000,000 and $110,000,000, respectively; and total contributions for all participating employers of $9,000,000 and $8,000,000, respectively. The plan's financial statements for the plan years ended June 30, 20X0 and 20X9 indicate that the plan was less than 65 percent funded in both years." (d) "Plan information for ABC Fund 73 is not publicly available. ABC Fund 73 provides fixed retirement payments on the basis of the credits earned by the participating employees. However, in the event that the plan is underfunded, the monthly benefit amount can be reduced by the trustees of the plan. Entity A is not responsible for the underfunded status of the plan because ABC Fund 73 operates in a jurisdiction that does not require withdrawing participants to pay a withdrawal liability or other penalty. Entity A is unable to provide additional quantitative information on the plan because Entity A is unable to obtain that information without undue cost and effort. The collective-bargaining agreement of ABC Fund 73 requires contributions on the basis of hours worked. The agreement also has a minimum contribution requirement of $1,000,000 each year. " Entity A was listed in its plans' Forms 5500 as providing more than 5 percent of the total contributions for the following plans and plan years: - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-3406A0A0-CD12-41A6-9B1E-AC5F00048321-low.gif) Fund "Year Contributions to Plan Exceeded More Than 5 Percent of Total Contributions (as of December 31 of the Plan's Year-End)" ABC Fund 34 20X9 and 2008 ABC Fund 43 20X8 ABC Fund 52 20X8 ABC Fund 61 20X9 At the date the financial statements were issued, Forms 5500 were not available for the plan years ending in 20X0.