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TABLE OF CONTENTS |
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1.4 Self-Payment When Employer Is Delinquent or Is Not Obligated to Pay Required Current Contribution Rate |
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A. Participants Eligible To Self-Pay
A Participant may maintain continued eligibility by timely paying monthly self-payments if a contributing employer either: (i) is obligated to pay the required current contribution which is set by the Trustees, and is delinquent in paying the contribution; or (ii) is obligated to contribute to the Fund, but is obligated to pay less than the required current contribution.
B. Amount Of Self-Payment
In the case of an employer who is obligated to pay the required current contribution and is delinquent in the payment of contributions, the self-payment must be for the required current contribution based on the actual hours worked. In the case of an employer who is not obligated to pay the required current contribution, the self-payment must be for the difference between the required current contribution and the amount that the employer has actually paid to the Welfare Fund.
C. Premium grace periods
To be timely, the self-payment must be received at the Fund Office within 45 days after coverage is initially terminated because of the employer’s failure to pay the required current contribution. Thereafter, the self-payment must be received at the Fund Office within 30 days from the beginning of the each month of coverage. See Part XI for the definition of Contribution Hour and Section 1.1.7 on termination of eligibility. In the event that the Welfare Fund collects contributions from the employer, Employees who have made self-payments will receive a corresponding refund from the Welfare Fund. In addition, Employees who have not made self-payments will receive an appropriate credit of Contribution Hours.
D. 18 Month Maximum Period For Self-Payments
Participants will be limited to a maximum period of 18 consecutive months to make self-payments under this Section. If a delinquent employer is obligated to pay the required current contribution and later becomes current, a Participant will be given a new 18 month self pay period if the employer subsequently becomes delinquent again.
E. Termination of right to self-pay under this Section
The right of a Participant to self-pay under this Section will terminate on the earlier of: (i) the date that the Participant’s employer is no longer obligated to contribute to the Welfare Fund on behalf of the Participant; (ii) the date that an applicable premium grace period expires without the Welfare Fund receiving a required self payment from the Participant; or (iii) the date that the continuous 18 month period for self payment expires.
F. Examples
Please note that the amounts shown below are for illustration purposes only and do not reflect the Fund’s actual contribution rates.
Example 1: Employee Smith’s employer is delinquent for contributions owed for hours worked in May 2006, but is current for all months before May. The May 2006 contribution owed by the employer for Smith is $600. For Contribution Hours to be credited, the Welfare Fund must receive actual and full payment of the required current contribution from the Employer. Under Section 1.1.7, coverage is terminated at the end of the first month after any month that a Participant fails to earn 70 Contribution Hours. In this example, coverage will terminate on June 30, 2006. The employees of this employer have an initial premium grace period of 45 days, until August 14, 2006, to make the initial self-payment of $600. Smith makes the initial self-payment by August 14. Upon receipt of the self-payment, the Welfare Fund will restore Smith’s coverage for the month of July 2006. The self-payment to restore coverage for August 2006 coverage is due within 30 days after July 31 (August 30, 2006). Each month thereafter is subject to the same 30-day premium grace period. If the Welfare Fund later collects the May and June 2006 contributions from the Employer, Smith will receive a refund of his July and August self-payments.
Example 2: Same facts as Example 1 except the Fund receives Smith’s initial self-payment for July coverage on August 20, 2006, after the expiration of the 45-day initial premium grace period. The Fund Office will return Smith’s payment to him. Smith will not be permitted to self-pay for July 2006 or subsequent months because he missed the initial premium grace period. If the Welfare Fund collects the May 2006 contribution from Smith’s employer, Smith will be credited for Contribution Hours for May and will have his coverage restored for July. If the Employer later becomes current and again becomes delinquent, Smith will be given a new initial 45 day self pay grace period.
Example 3: Starting in May 2006, employee Jones’ employer is obligated to pay an employer contribution of $560 per month under its collective bargaining agreement. The required current contribution set by the Trustees is $600. The difference between the May 2006 contribution paid by the employer ($560) and the required current contribution set by the Trustees ($600) is $40. For Contribution Hours to be credited, the Welfare Fund must receive actual and full payment of the required current contribution from the employer. Under Section 1.1.7, coverage is terminated at the end of the first month after any month that a Participant fails to earn 70 Contribution Hours. In this example, coverage will terminate on June 30, 2001 because the entire required current contribution has not been received from the employer. The Participants employed by this employer have an initial premium grace period of 45 days, until August 14, 2006, to make the initial self-payment of $40. Smith makes the initial self-payment by August 14. Upon receipt of the self-payment, the Welfare Fund will restore Smith’s coverage for the month of July 2006. The self-payment to restore coverage for August 2006 coverage is due within 30 days after July 31 (August 30, 2006). Each month thereafter is subject to the same 30-day premium grace period.
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TABLE OF CONTENTS |
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St. Louis Graphic Arts Joint Health & Welfare Fund
14323 South Outer Forty Rd. - Suite S106
Chesterfield, Missouri 63017 |
Fund Office: (314) 878-1579
twesthues@slgahw.org
Fax: (314) 275-2640 |
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