Often called MEPs, Multiple Employer Plans are a type of retirement account in which more than one employer contributes. They are a type of collective bargaining agreement. Most often, they involve unions that are part of the same international or domestic union. This type of plan is not uncommon and offers key benefits to all involved in it?
Who Benefits from a Multiple Employer Plan?
In this type of plan, employees benefit first. It provides employees with ample security. That’s because the risk associated with this type of retirement account is spread over a large group of people. In addition, if a worker moves from one job to the next, but stays within the same field and works in the same union, it is very easy for this type of retirement plan to transfer from one job to the next.
Employers also benefit from a multiple employer plan. This type of plan helps employers to easily provide for retirements to their workforce. Much of the cost is spread out, making this an economical benefit to those employers.
When Is This Type of Plan Used?
Many industries can learn about using the multiple employer plan. These types of plans are often found in industries that have collective bargaining agreements, such as unions. This includes industries such as construction, retail, service industries such as lodging, health care, communications, mining, and transportation. Because of their flexibility, they can work well across many industries.
For employers looking for an affordable way to meet the specific goals of their employees in retirement planning, MEPs simply make sense. Though they are not readily available to all employers and industries, they are very commonly used in industries with unions. For this reason, many employers should take a closer look at them.
