Multiemployer Pension Security Act of 2003

This bill proposes a significant change to how "Teamster plans"—pension plans managed through collective bargaining between the International Brotherhood of Teamsters and multiple employers—are structured and funded. Under current law, these are treated as "multiemployer plans" where all participating companies share the financial risks and liabilities of the entire fund. This legislation would reclassify them so that each individual employer is treated as if they are running their own separate, single-employer pension plan for their specific employees.

For workers and retirees, the practical impact would be a shift in how their pensions are secured and insured. The bill would require the Pension Benefit Guaranty Corporation (PBGC) to provide a 100% guarantee for "transition liabilities," which covers benefits for workers whose former employers no longer contribute to the plan. While this could provide more direct accountability for individual employers, it also subjects these plans to the higher insurance premiums and stricter funding rules typically reserved for single-employer corporate pensions, and prohibits benefit increases unless the specific plan meets strict funding requirements.