Summary Plan Description Table of Contents
Vacation Fund Benefits and Payment of Administrative Expenses
How is the amount of money I have in the Vacation Fund determined?
When contributions are made for you by an Employer in amounts designated for your Vacation Benefit they will be credited to you. In a rare circumstance, the contributions for your benefit may be reduced to pay for the Fund’s Administrative Expenses.
How do the Trustees pay for these Administrative Expenses?
Effective June 1, 2013, Administrative Expenses are paid in three possible ways. First, effective June 1, 2013, the collective bargaining agreement and the Trustees have designated a particular portion of contributions made on your behalf as allocated exclusively to administrative expenses and not to be used for the payment of benefits, other than for the restoration of forfeited benefits. These amounts are used for the payment of Administrative Expenses prior to any allocation of expenses from other sources and will normally cover the full amount of Administrative Expenses. If the amounts of contributions allocated exclusively to administrative expenses are insufficient to pay administrative expenses, administrative expenses shall be paid from “interest” earnings received by the Fund prior to distribution of benefits to you or from forfeited benefits. The term “interest” means interest, dividends, capital gains or losses, and any other gains or losses attributable to contributions received and invested by the Trust prior to distribution of benefits. In the rare case where Administrative Expenses remain after the above sources for payment have been exhausted, the Trustees will allocate these remaining expenses among undistributed Vacation Benefits of employees on a pro rata basis. This would reduce the amount of the Vacation Benefits to be distributed to each Employee.