The Steamfitters Industry Fund

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Types Of Benefits

The Security Benefit Fund provides benefits for: periods of lost wages,financial assistance benefit, housing benefit, severance benefits, scholarship benefits, term life insurance benefits and funeral and death benefits. Many of these benefits are subject to tax withholding and year end tax reporting.

A detailed description of each benefit, the documentation needed for payment, and the applicable tax reporting is explained below.

Wage Replacement Benefits

You can apply for reimbursement for periods that you may suffer a loss of wages due to unemployment, disability, workers’ compensation, or jury duty. There is one common application form to apply for these benefits.

The amount of reimbursement for periods of lost wages is equal to your wage rate for the period, less the amount of the payment you receive from any other source.

Unemployment:

As of September 10, 2006 the New York State Department of Labor began issuing unemployment benefits via a Chase Bank debit card. The State is no longer issuing checks. In the past, a member had to file a copy of an unemployment check with the Security Benefit Fund in order to receive a benefit. With the introduction of the debit care it became impossible to do so.

If you become unemployed, you must complete and have notarized the yellow-colored Application For Replacement Wages. Thereafter, each week that you remain unemployed simply call the Fund Office Help Desk at Ext.244 and report your continued unemployment. A check from your account balance will be promptly issued. .

The Fund Office will audit your unemployment requests to be sure all benefits are appropriate. We will vigorously scrutinize all contractor remittance reports and payroll audits. On a random basis, participants will be required to produce copies of their Chase Bank Debit card monthly account statements to verify unemployment and, in rare cases if deemed necessary, copies of their federal income tax filings.

The amount of reimbursement you will receive will be equal to your base wage rate for the period less the amount of your State unemployment benefits, limited to your account balance.

For Example:

If you are a journeyman steamfitter, with an account balance of $7,000 and you have a two week period of unemployment, you may be reimbursed as follows:

Two weeks base wage including vacation pay for a journeyman ($45.67 x 70 hours) $3,196.90
70 x 5= $350.00 TOTAL 3,546.90

Less: State Unemployment for 2 weeks ($810) Gross Reimbursement available from the Security Benefit Fund $2,736.90 (Subject to all applicable withholding taxes)

Again, the actual amount you are reimbursed is limited to your account balance.

If you are ineligible for unemployment benefits under State law, you should submit a copy of a statement from the State agency indicating you have exhausted or are ineligible for benefits. You would then need to submit an affidavit for each three week period that you remain unemployed. The Trustees may, at their discretion, request additional proof to substantiate any periods of unemployment for which State benefits are not being paid.

The supplementary unemployment benefits are subject to Federal, New York State and New York City tax withholding on a weekly basis. The total amount of these benefits paid to you during the calendar year will be reported to you and the tax authorities on a W-2 Form at year end.

Disability and Workers’ Compensation:

To receive either of these supplemental benefits you must complete the "Wage Replacement Application" and check the appropriate box. As in the case of unemployment, you must attach a copy of the first Disability or Workers’ Compensation check you receive to the application to document your claim.

The amount of reimbursement you will receive is equal to your wage rate for the period, less the amount you have received from the appropriate agency, not to exceed your account balance.

Please see the unemployment section for an example of how your reimbursement is calculated.

If your entitlement to benefits under any State law ceases, you may still be able to receive payment from the Fund subject to a signed affidavit. You will be asked to render proof of your continued inability to work, to the Trustees satisfaction.

While you are waiting to receive benefits from the appropriate agency, you may receive reimbursements, as in the case of unemployment, by submitting the signed affidavit and contacting the Fund Office each week.

Disability and Workers’ Compensation benefits are subject to income tax withholding for Federal, New York State and New York City taxes, as well as F.I.C.A., and will be reported on a Form W-2 at year end.

Jury Duty:

If you are called to serve jury duty, you may apply for a supplemental jury duty benefit to replace lost wages. On the "Wage Replacement Application" check the box for jury duty and submit a copy of your subpoena for jury duty service and payment by the Court.

You will be reimbursed based on a seven hour day at your wage rate for the period, for each day of jury service less the amount received from the Court and your employer. This benefit is subject to Federal, New York State, New York City, and F.I.C.A. withholding taxes, on a weekly basis, and is reported to you on Form W-2 at year end.

Severance Benefit

The severance benefit allows you to elect to withdraw a substantial amount from your Security Benefit Fund account.

You are first eligible to apply for the severance benefit after no contributions have been made to this, or any of the related Funds, for six consecutive months. You have two years from your eligibility date to apply for your severance benefit, provided you do not return to work in the industry.

The severance benefit can be paid to you in a lump sum or in equal quarterly amounts. However, no payments can be made beyond the two year application period. The amount of your total benefit will be equal to twice your earnings in the 12 months prior to your severance from the industry or the amount such earnings would have been had you worked the full year.

If you are eligible for a severance benefit and you do not apply in the two year period, your application period will expire. In order to again be eligible for the severance, you must return to work in the industry for a minimum of 750 hours. Once you’ve met this requirement, you will be eligible for the severance after two consecutive calendar quarters of no contributions as described above.

If you take your severance benefit, you may be eligible for a second severance benefit. To be eligible for a second severance benefit, you must have five calendar years in which you have worked a minimum of 750 hours in each year. You would then be eligible for a second severance under the rules described above.

The severance benefit is considered to be taxable income and is subject to all withholding taxes, including FICA, and will be reported to you and the Internal Revenue Service on Form W-2 at year end.

Funeral Benefit

Funeral expenses paid by you for a dependent for which you receive no reimbursement from any other source continue to be eligible for reimbursement. An application for a funeral benefit shall be filed along with a notarized affidavit, a copy of the death certificate in support of the claim and verification of the expense. At the end of the year in which the benefit is paid, a Form 1099-M will be sent to the you and the Internal Revenue Service.

Death Benefit

Upon your death, any balance in your account will be paid to your designated beneficiary. Your beneficiary, family member, or friend should contact the Fund Office and send in a copy of the death certificate and appropriate identification. At the end of the year in which the benefit is paid, a Form 1099-M will be sent to the beneficiary and the Internal Revenue Service. This benefit is subject to tax and may require that estimated tax payments be made.

Scholarship Benefit

The Scholarship Benefit is available for all employees spouses, children and dependents who are enrolled full-time or part time basis in an accredited educational institution. Covered expenses include tuition, room and board (on campus only), books and supplies.

Accredited educational institutions include universities, colleges, technical institutes, junior colleges, nursing, medical, dental and law schools. You have two options for payment, either a direct payment to the educational institution or you can make payment to the institution yourself and seek reimbursement. Whichever option you choose, it will be necessary to submit all receipts, invoices, canceled checks, credit card statements, etc. to substantiate the application for benefit. All information provided will be verified with the educational institution and payment could take as long as six weeks depending on the timeliness of the reply from the institution.

Federal, New York State, New York City and FICA taxes will be withheld from all benefit payments based on the information you provide on the application. This benefit will be income to you in the year issued and will be reported as such on a Form W-2 at year end.

If you file a claim for someone other than a spouse or child, the individual must be listed as your dependent with the Welfare Fund.

Term Life Insurance Benefits

This benefit is available to reimburse a member for the premium expense associated with an annual term life insurance policy. The benefit can be used for the member's policy or for that of a legal dependent.

The appropriate application must be completed and submitted with a copy of the term life insurance premium notice. The "face" value of the term life insurance policy cannot exceed $1 million.

This benefit is subject to all applicable Federal, New York State, New York City and FICA withholding taxes. This benefit will be income to you in the year the benefit check is issued and will be reported to you on Form W-2 at year end.

Financial Assistance Benefit

For any part of the month in which you are unable to work as a steamfitter, the Fund will reimburse you in an amount not to exceed your account balance for your unpaid home mortgage, co-op mortgage and maintenance fees, rent or property taxes on your primary residence for that same month.

The Fund will require a copy of an Unemployment, Disability or Workers Compensation check for a week ending period in that month in order to reimburse you for that month. For example, if your check is for the period of July 26th through August 1st (thus, the week ending period of this check is August 1st) reimbursement for financial assistance would be for the month of August even if most of the period was in July.

If you have exhausted or are ineligible for Unemployment Benefits, the Fund will require a letter from the appropriate state agency verifying your ineligibility for unemployment benefits.

Documentation supporting your financial assistance request such as an unpaid mortgage invoice, co-op fee statement, property tax bill, or rent invoice must be in the member or spouse's name only. A letter from the landlord verifying rent due (for each month you apply) when there is no written lease in effect is sufficient.

Benefit applications will be available from the Fund Office in late June. The amount of the benefit requested cannot exceed your account balance and is conditioned upon both audit verification and Trustee approval. This benefit is subject to all federal, state, city and employment withholding taxes.

Housing Benefit

This benefit can be used for certain costs associated with the purchase of a residence, for the initial costs associated with a rental and for costs to prevent foreclosure or eviction as long as the residence is your primary residence and is located within a reasonable commuting distance of the Local 638 jurisdiction. Because the Fund cannot provide post-retirement housing benefits, retired participants are excluded from this benefit at this time.

Costs or fees related to the purchase of a primary residence that are eligible under this benefit include, but not limited to, the following: loan originations, loan discounts, appraisals, credit reports, lender's inspections, mortgage insurance applications, tax services, flood checks, document preparations, title searches, title examinations, title insurance binders, attorneys, title insurance, governmental recordings, state taxes, and surveys. The initial costs related to a rental may include the first and last month's rent and broker's fees or commissions. Documentation supporting this benefit will include a signed contract of sale, mortgage application, Good Faith estimate, legal documents pertaining to the construction of a new home, copy of rental lease, foreclosure or eviction notices and/or any other documents so requested. All documents must be in the member or spouse's name only.

Claim Forms

Claim forms for the various benefits are available at the Fund Office. Please call, and the Fund Office will mail you the forms you need or go to the Forms Section of this Website.

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