- It could guarantee the severance benefit to the displaced worker
- It could provide a stronger guarantee than the company could provide
- It could smooth out the severance benefit, i.e., no lump sum payment but payments made on a pay period basis
- It could extend the benefit period
- It could provide a tax advantage to the benefits
- It could help access "working fringe benefits"
- It could provide ancillary benefits, e.g., "service severance"