UWUA National Health & Welfare Fund
What is the Fund and What Does it Do?
The UWUA National Health & Welfare Fund is a multiemployer plan established under the authority of the federal Taft-Hartley Act and the Employee Retirement Income Security Act (ERISA). It is open to UWUA bargaining groups and to other bargaining groups that participate in joint bargaining with UWUA units. The Fund was established in 2003 to provide a way for bargaining groups to accumulate funding for health benefits in a trust that is jointly-controlled by labor and employer representatives. The Fund is governed by a Board of Trustees, which consists of an equal number of employer union representatives. The Trustees have a legal responsibility to establish and maintain benefit plans, manage these plans, and prudently invest Fund assets.
IS EXPENSIVE. . . .
. . .But the UWUA has
a plan to make
The Utility Workers Union of America has created a program to offer a supplemental health care plan for workers that is also financially reasonable for employers.
The UWUA Health Reimbursement Arrangement Plan (HRA) is funded with employer contributions and allocated to individual accounts without a “use it or lose it” restriction.
How It Works
- The HRA is used to reimburse medical expenses such as deductibles, co-payments, Medicare premiums and medical expenses that are tax-deductible but not covered by a medical plan or other pre-tax plan.
- The HRAs may only be used for medical reimbursement and are funded by the employer.
- Groups have flexibility to choose either an Active HRA or a Retirement HRA.
- Unused accounts may be carried forward even after termination of employment for up to three years without forfeiture; may be carried forward after retirement indefinitely until no balance remains; and include survivor rights in the event of pre-retirement or post-retirement death.
- The HRA does not depend on the design of an existing base medical plan.
- All investment income, forfeitures, and operating fees are allocated to the account balances.
- The Plan is run by the UWUA Health and Welfare Fund, which is governed by an equal number of UWUA and employer representatives.
The Employer Is Responsible For:
- Paying a modest start-up fee.
- Making contributions to fund the account balances.
The employer and the UWUA together are responsible for:
- Negotiating either an Active HRA, which can be used while active and can be carried over into retirement, or a Retirement HRA, in which an employer contributes while an employee is active but may only be used in retirement.
- Signing a Participation Agreement with the Fund which must be approved by the Fund’s Board of Trustees.
The UWUA Health and Welfare Fund is Responsible For:
- Administering the Plan.
- Managing Instruments.
With the Plan, Workers Will Be:
- Able to cover many out-of-pocket tax-deductible health care expenses not covered by other health plans they may have.
- Able to carry their balances into future years, to use when most needed.
The UWUA Health Reimbursement Arrangement Plan provides more opportunity for employees to get the health care coverage they deserve while making this financially possible for employers.
Today, health care coverage has become one of the most difficult issues to negotate at the bargaining table.
Utility Workers Union
National Health & Welfare fund
Utility Workers’ Union of America
Fringe Benefit Funds
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