Multiple Employer Trust
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A Multiple Employer Trust (MET) is a group of ten or more employers who form a trust in order to minimize the tax implications of providing certain types of benefits for their employees, particularly life insurance. The U.S. Congress authorized the formation of METs in 1984 under Section 419(A) of the Internal Revenue Code. The rules set forth for METs are stringent and require that no single employer contribute more than 10 percent of total funding for the benefit plan purchased by the MET. In addition, the MET must be an indivisible entity, with all participating employers sharing equally in the benefits forfeited by other members of the group. The employees of each participating employer are viewed as if they worked for a single company and are subject to the same requirements
Source
Encyclopedia of Small Business
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