1) There are strict rules as to who can contribute to a tft-Hartley Trust: – only employers who have registered in a “written instrument” that imposes the contribution base can legally contribute to a Taft Hartley plan (this letter may be a collective agreement and/or participation contract). Because many employers rate their employees in the fund, costs are shared and risks pooled. As a result, multi-employer plans can offer a competitive advantage at the same or better rate over a single employer health plan. And because many employers participate in the same fund, workers can switch from participating employers without losing coverage, although their benefit plans may vary according to the collective agreements of individual employers. As soon as employer contributions are collected by the Foundation, they become the exclusive property of the trust. They do not belong to the employer, the union or the worker. These assets, as well as any investment gains, belong to the trust itself and can only be issued in the fiduciary document and federal law. Taft-Hartley has however an exception for the contributions of an employer to a collectively negotiated benefit plan. The law stipulates that these contributions must be held in a trust and cannot be used by either the EU or the employer for non-performance-related purposes. In addition, the law also provides that employer contributions to a trust can only be paid by a “written instrument” describing the basis of the contribution.

Under Taft-Hartley, income from a union agent can only be used to pay medical bills, to finance old age or retirement, or to compensate for accidental damages. In a related clause, the exact manner in which these payments are made must be detailed and stored in a written document. Common trust plans are common when a group of employers, usually in the same sector, partners with unions with whom they have collective agreements to build trust between multiple employers. Common trust plans are common in the construction industry (Bricklayer, electrician and worker), in the retail trade (food and trade workers) and in the truck and warehouse industry (Teamsters). 2) The main source of income for a trust fund for the payment of bonuses comes from employers who, through collective bargaining, have agreed to contribute to the plan. Beeson Tayer – Bodine has represented retirement and health plans for the employment service since the Taft-Hartley Act of 1947, which jointly established trust funds. We were among the first union companies to develop a specialized practice of benefits to workers in the wake of the Employee Retirement Income Security Act of 1974 (ERISA). Today, an important part of our company`s practice is devoted to the representation of multi-employer trust funds and we represent many health and pension funds sponsored by Teamsters and other unions. Given the importance of collection and bankruptcy to our charitable fund clients, our practice includes a collection and bankruptcy specialist. When a union has a trust fund, it must strictly adhere to Taft-Hartley`s guidelines, starting with the explicit objective that the Fund should benefit its members and their families exclusively. Then, members` payments must be kept in a collection pool in a trust and not in another type of account. Under Taft-Hartley (as well as ERISA, another federal employee benefit plans law), trustees are responsible for distributing assets prudently in accordance with the purpose of the trust and trust.

This means that the directors of a taft-hartley funds usually professional employees to help them manage the trust`s investments.

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