Multiemployer Plan
What Does Multiemployer Plan Mean?
A multiemployer plan is a retirement plan typically established and maintained by multiple employers. These plans may also offer additional benefits, such as health insurance, life insurance, and other types of coverage. They allow both employers and employees to save money by pooling resources and sharing costs.
Insuranceopedia Explains Multiemployer Plan
Employees who transition from one company participating in a multiemployer plan to another company within the same plan will typically retain their coverage. Even though they no longer work for their original employer, they continue to be covered under the plan’s umbrella.
Multiemployer plans are often established by companies within the same industry. For example, several solar panel companies might collaborate to create a multiemployer plan for all their employees.
