Multiple employer trusts are primarily designed for which purpose?

Multiple employer trusts (METs) are primarily designed to help multiple employers pool their resources in order to provide employee benefits, particularly in the form of retirement plans or health insurance. The primary purpose of METs is indeed to allow employers to collectively offer a benefits program that might otherwise be too costly or complex to implement individually.

When multiple employers come together in a trust, they can initiate programs that enhance investment options and provide better benefits within the framework of a collective group. This group purchasing power can lead to improved offerings and potentially lower costs for both employers and their employees.

The structure of a MET supports collaborative investment strategies, ensuring that employers can provide competitive benefits and may also facilitate management efficiencies. Therefore, while personal investments, minimizing employer liabilities, and bypassing local regulations might be considerations in different contexts, the essence of multiple employer trusts lies in their ability to initiate and manage collective benefit programs effectively.