A new pension model - Pensions and Investments Under the agreement, UPS will withdraw from the New England Teamsters fund, paying $1.2 billion in withdrawal liability. And, the company and fund agreed to create a new structure for future benefit accruals in which all employers that join the new fund will be liable for only their own employee pension benefits. Under the current multiemployer structure, employers share a collective liability. When participating employers face financial challenges and fail to contribute, the rest of the employers have to pick up the slack. In failing industries, a plan eventually consists of fewer and fewer employers, putting ever more funding obligations on the shoulders of stronger employers, while making the pensions of participants less secure. When a large, strong employer like UPS is participating, the plan can become increasingly dependent on that employer, which then bears an increasing burden, often paying the pensions of participants who never worked at the company. At the same time, the growing burden on the employer puts at risk the retirement security of its own employees.