### Question
How is the term pension contribution rate defined?


### Answer
The term **pension contribution rate** is defined in *26 U.S.C. § 3131* as the following:

> the contribution rate that the employer is obligated to pay on behalf of its employees under the terms of a collective bargaining agreement for benefits under a defined benefit plan under such agreement, as such rate is applied to contribution base units (as defined by section 4001(a)(11) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1301(a)(11)).[1](#3131_1_target)


#### (C) Allocation rules


The amount of collectively bargained defined benefit pension plan contributions allocated to qualified sick leave wages for any calendar quarter shall be the product of—


(i) the pension contribution rate (expressed as an hourly rate), and


(ii) the number of hours for which qualified sick leave wages were provided to employees covered under the collective bargaining agreement described in subparagraph (A)(iii) during the calendar quarter

#### Citation:
  - *26 U.S.C. § 3131*
  - Heading: **Subtitle C-Employment Taxes > CHAPTER 21-FEDERAL INSURANCE CONTRIBUTIONS ACT > Subchapter D-Credits**

