Section 13 – VACATION PLAN BENEFIT
The Vacation Plan provides cash payments to Eligible Employees whose Collective Bargaining Agreement or Written Agreement requires contributions for Vacation Benefits. These benefits are automatically paid out 4 times each year in lieu of holidays and vacation.
Eligibility for Vacation Benefits
If you are working for an Employer covered by a Collective Bargaining Agreement or Written Agreement that requires contributions for Vacation Benefits, then you are eligible for Vacation Benefits. Vacation Benefits are payable so long as the Welfare Trust holds Vacation Plan funds contributed on your behalf.
If you die before receiving all Vacation Plan funds held for you, then the remaining funds will be paid to your first survivor according to the following list:
- your spouse
- your estate
When Benefits are Payable
Benefits are automatically sent to your address on file with the Plan, as of the beginning of each quarter, February 1, May 1, August 1, and November 1. There may be a delay of up to 10 business days from the time the Welfare Trust receives a contribution to when it credits the contribution to you.
The amount you will receive is exactly equal to the amount that your Employer contributes to the Welfare Trust for you. Please note that before depositing Vacation Plan funds with the Welfare Trust; your Employer must pay your employment and income withholding taxes. Only those amounts actually contributed to the Welfare Trust by your Employer and credited to you are included in the benefits paid each quarter. Any investment earnings will be used to pay for administrative expenses involved in maintaining the Plan.
Election to Direct Vacation Plan Contributions to Make Self-Payments for Health Coverage
You may elect, on a prospective basis on a form approved by the Administrative Office, to have monthly contributions paid on your behalf for this Vacation Plan Benefit paid instead as monthly self-payments for your continued health plan coverage under Section 1. Any such payments that are in excess of the amount needed to continue your coverage in a month will be retained in your Self-Payment Account (unless you have reached the maximum Self-Payment Account limit, in which case such funds will be retained instead as part of this Vacation Plan Benefit). Vacation Plan contributions paid as self-payments, or remitted to your Self-Payment Account, do not count toward your benefit amount for Vacation Plan benefits.
An election to direct contributions for this Vacation Plan Benefit to be paid as self-payments under Section 1 can be terminated at any time, on a prospective basis, on a form approved by the Administrative Office.