Types Of Benefits

The Vacation Plan provides for a semi-annual vacation payment, income allocations and death benefits.

Annual Payout

The semi-annual payouts generally takes place in April and October. The balance in each eligible participant’s account is automatically paid out. It is not necessary to file an application for this benefit. At the sole discretion of the Trustees, payments may be made more frequently.

Death Benefit

At the time of a participant’s death, the balance in the participant’s Vacation Plan account shall be paid to the person(s) designated as beneficiary(ies). In the event no beneficiary is designated, the balance shall be paid to the person or persons entitled to receive the proceeds of the individual’s Local Union 638 death benefit.

The death benefit will be processed after the Fund Office has received a certified copy of the participant’s death certificate. Contact the Fund Office if you wish to change or update your beneficiary information. Failure to do so can delay payment or result in a payment which is not what you wished.

Income Allocation

The Trustees have adopted a formula which provides that the Plan’s net assets should equal at least one-and-one-half times the Plan’s annual administrative expenses, also referred to as the reserve, before any income allocation can be made to participants. If this criteria is met, and the Trustees approve such an allocation, it will be distributed as follows:

The excess investment income, over the reserve, will be distributed to the participant’s of the Plan based on the ratio of the average balance in each participant’s account at the end of each quarter to the total average balance in all accounts.

Any income allocations posted to participant accounts will be automatically credited to your account and included in the next payout check following.