Issues Facing Multiemployer Benefit Funds
Segal can help multiemployer funds with a variety of problems and challenges that arise in the course of managing benefit plans.
- Health care costs are going up, making it more expensive to provide health coverage for plan participants
- Multiemployer funds are having trouble supporting health benefits for retirees
- Administrative issues are eating into multiemployer fund budgets
- Multiemployer funds are getting low returns on their investments
- Multiemployer funds need to determine how new legislation and regulations will affect their plans
Issue: Health care costs are going up, making it more expensive to provide health coverage for plan participants
Trustees may consider...
- Reevaluating the plan design
- Negotiating discounts from pharmacy benefit managers (PBMs) and other vendors
- Negotiating with the insurance carrier regarding plan rates and contractual arrangements
- Identifying which conditions and participant groups are responsible for the bulk of the plan's claims, and using a disease management system to improve this group's health and reduce claims
Related Segal resources:
- Innovative Plan Design Strategy and Analysis
- Vendor Competitive Bidding and Renewal Negotiations
- Total Health Management
Issue: Multiemployer funds are having trouble supporting health benefits for retirees
Trustees may consider...
- Evaluating alternatives such as retiree self-pay policies, pre-funding retiree health benefits, health reimbursement accounts (HRAs) and other cost-saving measures
- A retiree health VEBA, which is a trust that is established to provide tax-free retiree health benefits to current and/or future retirees
- Reviewing and revising eligibility rules
- Developing new ways to coordinate coverage with Medicare, including a supplemental approach
Related Segal resources:
- Innovative Plan Design Strategy and Analysis
- Retiree Health
- Retiree Health VEBAs
- Total Health Management
- Participant Communications
Issue: Administrative issues are eating into multiemployer fund budgets
Trustees may consider...
- Searching for a third-party administrator or reevaluating the one the plan currently uses
- Holding seminars, distributing materials, or creating a website to educate participants about their benefits and reduce individual information requests
Related Segal resources:
Issue: Multiemployer funds are getting low returns on their investments
Trustees may consider...
- Reexamining the fund's investment strategy
- Searching for a new investment manager
- Launching an investment education campaign for participants if the plan has participant-directed investment accounts
Related Segal resources:
- Developing Asset Allocation and Investment Strategies*
- Selecting Investment Managers*
- Participant Communications
*These services are provided by Segal Advisors, The Segal Company's SEC-registered investment consulting affiliate
Issue: Multiemployer funds need to determine how new legislation and regulations will affect their plans
Trustees may consider...
- Conducting a compliance review to make sure the plan is in compliance with the law
- Consulting Segal's compliance publications: Capital Checkup and Compliance Alert
- Subscribing to Segal's publications for multiemployer funds to get updates on the impact of new legislation and regulations
Related Segal resources:
