The Laborers' National Health & Welfare Fund ("Fund") is a joint labor management, non-profit trust fund established to provide health and welfare benefits for employees represented for purposes of collective bargaining by the Laborers' International Union of North America (LIUNA) and its affiliated Local Unions and District Councils, particularly in the government service contract industry.
The Fund provides comprehensive hospital, medical, prescription drug, dental and other health-related benefits, as well as life and short term disability insurance coverage for eligible participants and their dependents. There are two levels of benefits provided by the Fund: Plan 1 and Plan 2. The collective bargaining parties (Union and Employer) choose Plan 1 or Plan 2 for each employee group. The employer contribution rate and benefit structure is higher for Plan 2 than for Plan 1.
Coverage by the Fund is paid for by collectively bargained employer contributions. Employers make a dollars-and-cents contribution to the Fund for each hour for which an employee covered by the collective bargaining agreement works or is paid.
The Fund is governed by a Board of Trustees composed of LIUNA and employer representatives:
Armand E. Sabitoni, Co-Chairman
Dennis L. Martire
Vincent R. Masino
Paul Fayad, Co-Chairman
Noel C. Borck
John D. O'Reilly III, Esq.
The Fund's medical benefits, prescription drug benefits, dental, short-term disability and vision care benefits are self-funded. This means that eligible benefit claims are paid directly from the Fund's assets rather than by an insurance company.
The Fund's life insurance and accidental death and dismemberment benefits are insured and provided through Union Labor Life Insurance Company.
The Fund is an employee welfare benefit plan and multiemployer plan regulated by the Employee Retirement Income Security Act ("ERISA''). It is also an employer sponsored group health plan subject to the Patient Protection and Affordable Care Act of 2010 ("ACA''). The Fund's benefit plans (Plan 1 and Plan 2) are non-grandfathered plans for purposes of the ACA.
The Fund is also tax-exempt under the Internal Revenue Code. Employer contributions are not included in their employees' taxable income, but are tax deductible by the employers.