Why would prevailing wage contractors use an ERISA Trust?
ERISA Trusts are a solution many prevailing wage contractors use to simplify compliance with provisions of the Davis-Bacon Act and Service Contract Act, requiring employers to provide ‘bona fide’ health and welfare benefits to public works employees, and ERISA’s health, welfare and pension mandates. Because some employers find compliance costs to be onerous and costly, they join Trusts which take-over responsibility for providing benefits on the employer’s behalf.
