Benefits of a Multiemployer Trust for Employers

One of the main benefits of an MET for employers is that the risk associated with the plan is pooled. This is beneficial because a single employer is never wholly responsible for the investment if the plan’s investments begin to do poorly.

Other Benefits

Lower Costs for the Employers

The costs for employers are reduced because of the centralized administration increasing benefits. Because resources are pooled, this lowers the risk on each individual employer, too.

Better administration: Administration and operation functions are allocated to people or entities that have specialized experience with that specific function. Administrative costs are reduced for the company.

Better access to investment advising: Employers have easier access to consulting and investment advisers because they’re part of a larger entity.

Tax Benefits

MET employer contributions are tax deductible. This lowers the total taxable income of the business, allowing the employer to pay less in taxes while also contributing to their employees’ well-being.

Employees Are the Main Beneficiaries

Because their employers take on the risk of the plans, the employee’s benefits associated with the plan are more secure. MEPs allow employees to move to different employers within the industry and still keep the same benefits. Employees don’t have to worry about waiting for benefits to begin if they switch from one employer within the same industry to another. The benefits transfer as soon as they begin their new job, eliminating gaps in plans such as health insurance coverage.

Employees Are Able to Be Mobile

They are able to temporarily work in the jurisdiction of another employer while still earning the credit for their work. This is particularly beneficial for certain industries, such as construction, where there may not be immediate work available in the home location of an employer and they need to look elsewhere.

Flexible Plan Designs

The access to the multiemployer coverage options are one of the main benefits MEPs offer employees. MEPs give employees life insurance, occupational illness coverage, child care, healthcare benefits, accident coverage, training and education, pooled vacation and severance benefits, housing assistance and legal services. In addition, when multiple employers contribute to the plan, rates tend to drop and coverage tends to improve for employees.