Within the category of Construction Industry Multiemployer Pension Plans (MEPPs), there can be variations in plan design and structure to accommodate the specific needs of the construction workforce and employers. While the basic framework remains similar, different plans may have unique features or characteristics. Here are some types of Construction Industry MEPP Plans:
- Open-End MEPPs:
- Open-end MEPPs accept contributions from multiple employers in the construction industry, and employees can move between these employers while maintaining their participation in the plan. These plans often have flexible rules for accepting new contributing employers.
- Closed MEPPs:
- Closed MEPPs restrict participation to specific construction employers and their employees. These plans may not accept new contributing employers or employees from outside the original participating group.
- Union-Sponsored MEPPs:
- Some MEPPs are sponsored by labor unions that represent construction workers. These plans are often established through collective bargaining agreements and are designed to provide retirement security for unionized construction workers.
- Multiunion MEPPs:
- Multiunion MEPPs cater to workers who are members of different labor unions within the construction industry. These plans are designed to accommodate the diverse representation of construction workers.
- Statewide or Regional MEPPs:
- Some Construction Industry MEPPs cover workers and employers across an entire state or a specific region. These plans may have a broader geographical scope but are still focused on the construction sector.
- Craft-Specific MEPPs:
- Craft-specific MEPPs are tailored to workers in specific construction trades or crafts, such as carpenters, electricians, plumbers, or ironworkers. The benefit formulas and plan features may be customized to reflect the needs of these workers.
- Apprenticeship MEPPs:
- Some MEPPs are designed to provide retirement benefits to construction apprentices. These plans may have unique provisions to accommodate the career progression of apprentices.
- Supplemental MEPPs:
- Supplemental MEPPs are designed to complement existing retirement benefits. Construction employers and unions may establish these plans to provide additional retirement security to workers who have other primary retirement plans.
- Multiemployer Target Benefit Plans:
- These plans set target benefit levels for participants and adjust contributions based on the plan’s financial health. They aim to provide retirement income that aligns with the target benefits.
- Industry-Related MEPPs:
- Some MEPPs cover not only construction workers but also employees in related industries, such as building materials suppliers or equipment rental companies. These plans can be broader in scope.
- Prevailing Wage MEPPs:
- Prevailing wage MEPPs are often established in regions where government contracts require the payment of prevailing wages. These plans can provide retirement benefits to workers on government-funded construction projects.
- Specialized MEPPs:
- MEPPs may have specialized features, such as offering long-term disability benefits, health and welfare benefits, or providing survivor benefits tailored to the needs of construction workers and their families.
Construction Industry MEPP Plans are diverse and can take various forms to serve the unique needs of workers and employers within the construction sector. The specific design and features of these plans depend on the collective bargaining agreements, industry dynamics, and the priorities of the parties involved.