Premier Concrete recently added a Supplemental Unemployment Benefit Plan to its already robust and growing list of employee benefits. Under the new SUB plan, Premier Concrete employees working on prevailing wage jobs—public or government contacts—qualify for this employee-funded savings account that provides supplemental pay during unemployment.
What is a SUB Plan?
According to SHRM, a Supplemental Unemployment Benefit Plan is a tax exempt, Section 501(c) (17) plan or trust established to provide pay to workers laid off due to a reduction in force or plant closing that supplements state unemployment insurance benefits.
The plan’s structure combines state unemployment benefits with supplemental unemployment to equal a laid off worker’s total wages prior to layoff. For instance, if the state unemployment benefit rate is $300 and the worker’s previous weekly pay was $600, the SUB would fund the trust with an additional $300 to ensure the worker receives full pay during layoff.
Breaking it Down
Prevailing wage jobs are compensated with a base salary plus fringe benefits. Employers may pay these fringe benefits in any way they choose (e.g., 401k, cash). Previously, Premier allocated fringe benefits to prevailing wage workers’ 401k account. These employees now have the option to allocate fringe benefits toward their SUB plan to ensure short-term financial security during an unexpected reduction in workforce due to specific projects and contracts ending or unfortunate weather.
SUB plans were initially introduced in the 1950s by unions of cyclical industries that frequently experience layoffs, such as the automotive and metal industries. This addition by Premier Concrete is progressive for the construction industry—there are only a handful of other companies providing this benefit in the state of Maryland.
“We recognize our employees as our greatest asset and highly value fair compensation,” said Premier Concrete Vice President Steve Workmeister. “Construction is a transient industry where our workload is affected by a variety of factors, thus impacting our workforce. Over the last year, we have been searching for a solution to provide employees with as much financial security as possible, should an unexpected need for layoffs occur. We are a family-owned business with family values and will continue to ensure we can support our dedicated and skilled employees as they support themselves and their families.”
In addition to the SUB Plan, Premier Concrete employees are entitled to 401k benefits, medical/dental/vision insurance, short-term disability, and vacation and holiday pay. To learn more about Premier Concrete career opportunities, visit www.premierconcrete.biz/careers/.