About The Trust
CALIFORNIA SMALL MANUFACTURING TRUST (CSMT)
CSMT is a voluntary employees’ beneficiary association, or VEBA. The VEBA designation gives CSMT its 501(c)(9) tax exemption. It is regulated by ERISA, the U.S. Department of Labor, the Department of Health and Human Services, and the rules of the Affordable Care Act.
CSMT is sponsored by the California Metals Coalition (CMC) which, as the sponsoring organization, has certain duties regarding the Trust. Further information about CMC can be found below and at metalscoalition.com.
About the California Metals Coalition (CMC)
CMC was established in 1972 as a non-profit 501(c)(6) trade association. Its members are primarily advanced metal manufacturers, but other sectors such as insulation and rubber are also represented. The organization’s volunteer board of directors is comprised of California business owners and operators. CMC retains full-time staff for its day-to-day operations.
CMC membership benefits
CMC is a full-service trade association with many benefits. To begin, it has technical, legal, and government relations/lobbying experts to help navigate statute and regulations, including labor laws. CMC also offers local meetings and conferences; buying groups; Cal-OSHA experts; a 401(k)MEP program, and much more.
What is a VEBA trust fund?
VEBA plans have been around since the mid-1930s; there are several thousand in existence today. Under a VEBA, employers in an industry pool their resources and knowledge to design benefit plans that are affordable for both the employer and employee and that meet federal and state requirements. These plans are fully insured and include regulatorily-mandated offerings.
Why should an employer join the Trust?
Cost control is a big reason. Just as important though, is that in today’s market, with Affordable Care Act requirements and multiple regulating agencies, the Trust becomes the “back office” most employers just don’t have. A well-run trust like CSMT has volunteer trustees who act as fiduciaries, which shifts much of the liability from the employer to the Trust. The trustees operate alongside a staff of professional consultants, including a Trust attorney; an independent, outside auditor; and a plan administrator that handles day-to-day responsibilities. These responsibilities include:
- signing and owning contracts with medical carriers;
- collecting and disbursing employer contributions;
- maintaining security protocols for the protection of stored and transmitted data;
- producing monthly financial and eligibility information; and
- handling COBRA, FMLA, and other federally mandated responsibilities.
These are just some of the items the Trust takes responsibility for, relieving employers of a significant burden.
When it comes to healthcare, arguments and phony promises are never-ending. We know you’re tired of that, and we are too. That’s why we offer you a no-nonsense, straightforward, no-hype opportunity to meet your requirements as an employer.
We’re governed by appointed trustees who come from your industry and receive no compensation for their work. The contributions you make pay for coverage, claims, trust administration, legal representation, marketing, and sales—there are no additional fees, and nothing is hidden. These expenses are forecasted on an annual basis, after which the annual premium is set and approved by the trustees.