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MAJOR COLLECTIVE BARGAINING AGREEMENTS ADMINISTRATION OF NEGOTIATED PENSION, HEALTH, AND INSURANCE PLANS Bulletin 1425-12 ^ May 1970 ST ST [ % p-r U .S. D E P A R T M E N T O F L A B O R B U R E A U OF LA BO R ST A T IS T IC S M AJO R C O L L E C T IV E B A R G A IN IN G AG REEM ENTS ADMINISTRATION OF NEGOTIATED PENSION, HEALTH, AND INSURANCE PLANS Bulletin 1425-12 May 1970 U.S. DEPARTMENT OF LABOR George P. Shultz, Secretary B U R E A U OF L A B O R S T A T IS T IC S Geoffrey H. Moore, Commissioner For sale by the Superintendent of Documents, U.S. Government Printing Office Washington, D.C. 20402 - Price 60 cents Preface This is the 12th in a se rie s of studies designed to su rvey the entire scope of the co llectiv e bargaining a g re e m ent. P reviou s publications in this se rie s are listed on the last page o f this bulletin. This study is con cern ed with the adm inistration of c o lle c tiv e ly bargained single and m ultiem ployer pension, health, and insurance plans. It is based on a sam ple of m a jor c o lle ctiv e bargaining agreem ents in the United States and the plan docum ents associated with the agreem ents studied. The data and con clu sion s, th erefore, do not r e fle ct p r a c tic e s in sm a ller co lle ctiv e bargaining agreem ents. A ll o f the agreem ents used are a part of the curren t file m aintained by the Bureau of Labor Statistics fo r public and governm ent use in a ccordan ce with section 211 of the L abor-M anagem ent Relations Act of 1947. The docum ents exam ined w ere either part of the B ureau’ s contract file or w ere those filed separately by plan adm inistrators with the L abor-M anagem ent S e rv ices Adm inistration in the De partm ent o f L abor. The clau ses quoted in this rep ort and identified in the appendix are not intended as m odel or recom m ended cla u se s. The cla ssifica tio n and interpretation of clauses re fle cts the understanding of outsiders and not n e ce s s a rily that of the parties who negotiated them. This bulletin was prep ared in the B ureau’ s O ffice of W ages and Industrial Relations by Dorothy R. Kittner and H arry E. D avis, a ssisted by M ajella A. L eary under the su p ervision of Donald M. Landay, Chief, D ivision of G eneral C om pensation Structures. iii Contents Page Chapter I. In tro d u ctio n --------------------------------------------------------------------------------------------------------Scope of s t u d y ------------------------------------------------------------------------------------------------------------------- 1 4 Chapter II. S in g le-em p loy er pension plans adm inistered The em p loy er-a p p oin ted b o a r d ---------------------------------------------------------------------------------------- 7 The chairm an and s e c r e t a r y --------------------------------------------------------------------------------------C le r ic a l and tech n ica l a ssistan ce ------------------------------------------------------------------------------ 7 8 Union represen ta tion ---------------------------------------------------------------------------P ro ced u re fo r final determ ination of pension c l a i m s ----------------------------------------------D isability cla im s _______________________________________________________________ -___— Tim e lim it s ---------------------------------------------------------------------------------------------------------------------Finality of d e c is io n s ___________________________________________________________________ R eports to the union o r join t union-m anagem ent com m ittee 9 10 11 12 12 12 Chapter III. S in g le-em p loy er pension plans adm inistered by a joint b o a r d ____________________________________________________ Lim itations on the authority of the joint b o a r d ____________ Ju risd iction and authority o f the joint board ______________ Size and com position o f the join t b o a r d ____________________ The im partial chairm an o r um pire --------------------------------The c h a ir m a n ----------------------------------------------------------------------The s e c r e t a r y ----------------------------------------------------------------------C le r ic a l and tech n ical a s s is t a n c e ------------------------------------B onding______________________________________________________ M eetings ____________________________________________________ Voting and quorum re q u ire m e n ts_________________________ Com pensation and expenses _______________________________ R e co rd s _____________________________________________________ P ro ce d u re s fo r final determ ination of pension c la im s _____ D isability c la im s ___________________________________________ Finality o f d e c is io n s _______________________________________ 24 24 25 26 26 27 28 29 30 31 32 Chapter IV. A dm inistrative p roced u res in m ultiem ployer health and insurance p l a n s _______________________________________________________________ Establishm ent o f the health and insurance p r o g r a m __________________________________ C om position of the b o a r d __________________________________________________ O ffice rs of the b o a r d -------------------------------------------------------------------------------------------------------Selection of o f f i c e r s --------------------------------------------------------------------------------------------------------M eeting of the board of t r u s t e e s ______________________________________________ -________ Q u oru m -------------------------------------------------------------------------------------------------------------------------------Voting rules and p r o c e d u r e s -------------------------------------------------------------------------------------------A r b it r a t io n -------------------------------------------------------------------------------------------------------------------------Functions and duties o f the a d m in is tr a to r-------------------------------------------------------------------- 33 33 34 36 36 37 37 38 39 40 Amendment of p r o g r a m _____________________________________________________ v 14 15 17 20 22 40 Contents— Continued Page Chapter IV. Administrative procedures in multiemployer health and insurance plans— Continued Joint administration with other plans----------------------------Plan termination — -----------------------------------------------------------Administration-------------------------------------------------------------------Financial administration-------------------------------------------------Collection of contributions_______________________________ Medium of funding-------------------------------------------------------------A udit_______________________________________________________ Payment of tru stee s---------------------------------------------------------- 47 Appendix. Index to clauses cited ---- 41 41 42 42 42 43 44 44 45 45 vi Major Collective Bargaining Agreements Administration of Negotiated Pension, Health, and Insurance Plans Chapter I. Introduction Managing a pension plan or a health and insurance plan, and administrating its operations and finances involves day-to-day administrative matters such as main taining employee records and handling benefit applications and appeals. It involves also more specialized functions like determining procedures, rules, and regulations* Similarly, the management of a plan's resources involves functions ranging from the routine processing of contributions to the selection of appropriate investments. Although most of these functions must be performed in the management of all plans, responsibility for their performance does not always reside with the same party. Union participation varies from a "hands off" approach to the sharing of some or all administrative functions, and, in rare cases, to virtually complete control. The scope of the parties' participation also depends on the extent to which they have delegated plan administration to insurers and prepayment organizations such as Blue C ross. A review of how employers and unions have shared the responsibility of managing negotiated plans shows that current practices have been shaped by the early development of unilateral plans, the later development of negotiated plans— particu larly multiemployer plans— and by Federal legislation. Early employee benefit plans were outside the scope of collective bargaining, and thus, responsibility for their management rested with the employer or union responsible for initiating them. Most early plans were unilaterally established by employers and administered exclusively by them. By the beginning of World War II, some unions had established multi employer plans financed entirely by employer contributions and administered exclu sively by the unions. Multiemployer pension plan operation under exclusive control of unions sub sequently aroused the concern of Congress when certain abuses were revealed. The Congress, therefore, included section 302 in the Labor-Management Relations (TaftHartley) Act of 1947, requiring joint employer-union management of trust funds* Trust funds established prior to January 1, 1946, were exempted, but a few old plans also switched to joint administration to forestall possible criticism. Equal representation on the joint boards of multiemployer plans has not, how ever, always led to equal participation in the managerial functions. Employer rep resentatives frequently have entrusted most management decisions to the union rep resentatives. This was done willingly in some situations and under pressure in others. 1 Moreover, employer representatives on these joint boards frequently are in terested mainly in warding off union demands for increased benefits which would re quire increased employer contributions. Many of them feel that protecting the work ers' rights to benefits is the responsibility of the union representatives. Thus, the boards, which generally determine all of the provisions of the plan (including benefit levels and eligibility and participation requirements), largely are involved in an extension of the collective bargaining process. I See, for example, Ralph C. and Estelle D. James, Hoff a and the Teamsters: ton, N.J. Van Nostrand, 1965. 1 A Study of Union Power, Prince 2 Since passage o f the T a ft-H a rtley A ct, C on gress has shown a continuing in te re st in the operation of em ployee benefit plans. The W elfare and Pension Plans D isclo su re A c t, enacted in 1958, re q u ires public d isclo su re of plan p rov ision s and fin a n ces, including "p a r ty -a t-in te r e s t" tran saction s of both single em ployer (unilat e ra l and negotiated) and m u ltiem p loyer plans. To protect w o r k e rs ’ in terest in their pension plan, the W elfare D isclo su re A ct a lso req u ires the bonding o f a ll in divid uals (a d m in istra tors, o ffic e r s , and em ployees) who handle m oney or other plan p ro p erty. In 1962, the act was am ended to make sp ecified o ffe n se s, including b rib e ry and k ick b a ck s, em bezzlem en t and theft, and fa lse statem ents, crim in a l offen ses under F ed e ra l law. Single em ployer plans w ere not affected by section 302 of the T aft-H artley A ct. H ow ever, that they w ere within the scope of c o lle ctiv e bargaining was m ade cle a r by two National L abor R elations B oard d ecision s upheld by the Supreme Court in the late 1940*s. 2 Although many plans have been negotiated since then, em p loy ers f r e quently have sole resp on sib ility fo r their m anagem ent. Am ong the rea son s fo r this a re: (1) Many unions have, as in others m a tters, left the initial d ecision to m an agem ent but retained th eir right to appeal d ecision s through the grievan ce p roced u re; (2) many unions lack exp ertise in plan m anagem ent; and (3) many com panies view plan m anagem ent as a p reroga tive o f the em p loy er, pa rticu la rly since they have assum ed the resp on sib ility o f providing sp ecified benefits without reg a rd to co st. None o f the international unions has b ecom e involved in a ll asp ects of the m anagem ent o f single em ployer plans. The Auto W ork ers (UAW) is the only union found in this study o f large plans that has equal representation on joint u n ion -em ployer boa rd s handling the d a y -to -d a y a sp ects of sin g le-em p loy er plan m anagem ent. A l though som e unions are in terested in having pension funds invested to benefit w ork e rs b e fo re as w ell as after retirem en t, for exam ple, through loans and investm ents in rental housing fo r plan m e m b e r s, only those with m u ltiem p loyer plans have a v o ice in setting investm ent p o licy . The r o le s o f plan a d m in istra tors are affected by the plan's fidu cial a rra n g e m en ts. A lm o st a ll health and insurance plans and m ost pension plans, e sp ecia lly sm all plans, are funded through an insurance com pany or a prepaym ent o rg a n iz a tion such as Blue C r o s s . On the other hand, tru stees (often third parties) are resp on sib le fo r the fin an cial m anagem ent of m ost large pension plans, including n early a ll of those analyzed in this re p o rt. 3 If benefits are in su red, the c a r r ie r determ in es the co st o f the plan (usually subject to dividends determ ined by investm ent and cla im s e x p e rie n ce ). It a lso in vests the plan’ s m on ies and either handles a ll cla im s or p r e s c r ib e s or a pproves p ro ce d u re s , ru le s, and regulations established by the e m ployer or joint b oa rd. The em ployer or joint board keeps the r e c o r d s n e ce ssa ry to determ ine an individual’ s elig ib ility fo r benefits and their amount. To facilitate cla im s paym ents, e sp e cia lly by prepaym ent plans, duplicate r e c o r d s m ay be kept by the plan. If a funded pension plan is noninsured (com m only ca lled a "tru steed " or "s e lf-in s u r e d pla n "), the financial m anagem ent is , with few ex cep tion s, handled by a bank or trust com pany (co rp o ra te tru stee). The em p loyer or joint board gen erally appoints a co rp o ra te tru stee and signs a trust agreem ent which outlines investm ent p olicy and the duties and re sp o n sib ilitie s of the corp ora te tru stee. S om etim es, e s p ecia lly under m u ltiem p loyer plans, investm ents are selected by the em ployer or by the joint board, with the advice o f a bank (that is , the corp ora te trustee) or an in vestm ent a d v iso r. The nonfinancial adm inistrative functions are p erform ed by the em p loyer or join t b oa rd , as in the ca se of insured plans. 2 Inland Steel Co. v. NLRB, 170 Federal Reports 2d series 247 (1948), 251 (1949). Cross and Co. v. NLRB (U. S. Ct. of App. (1st), 1949). 3 Where pensions for large groups are provided through insurers, they are nearly always provided through "Deposit Administration" contracts which mostly operate in the same manner as trust agreements with corporate trustees, that is, except for providing life annuities for retired employees and furnishing actuarial services. Under such contracts insurance companies only provide the investment services and benefit payment services commonly furnished noninsured plans by banks and trust companies. 3 The table su m m arizes how the resp on sibility fo r each of the m a jor functions of plan m anagem ent usually is handled. It shows that em p loy ers are alm ost in v a r ia b ly the key party in managing a sin g le -e m p loy er pension plan, and joint boards are the key party in managing m u ltiem p loyer plans. H ow ever, w here plan benefits are provided through an insurance com pany or prepaym ent organization, they a lso p e r form many o f the d a y -to -d a y functions. A m a jo r d ifferen ce between insured and se lf-in su re d pension plans a ris e s in handling g rie v a n ce s. Plans with insured benefits m ay perm it w ork ers to challenge factual data (fo r exam ple, data on credited se rv ice or earnings) submitted to the in surance c a r r ie r by the em ployer in connection with a sp e cific cla im , but the in su r e r s 1 d e cisio n is oth erw ise final and binding. The in s u r e r 's d ecision s are not sub je c t to the grievan ce m ach in ery in the c o lle ctiv e bargaining agreem ent; to do oth er w ise would subject to c o lle ctiv e bargaining the expert judgment of a neutral party, fo r which part of the prem ium is paid. If the plan is se lf-in su re d , prov ision s for handling g riev a n ces are ex p licit in all join tly adm inistered plans and in som e ad m in istered by the e m p loy er. H ow ever, where the plan doesn*t have grievance p r o v is io n s , one m ay p ro p e rly in fer that the regular grievance proced u re in the c o l le c tive bargaining agreem ent is applicable. Parties Responsible for Performing Administrative Functions of Negotiated Pension, Health, and Insurance Plans Administrative function Single employer plan Multiemployer plan Employer Joint board Collectively bargained Insurer or based on recommendation of e mploy er - appointed actuary Collectively bargained Collection of contributions from Worker Employer Employer Not applicable Joint board through employer Joint board Disposition of contributions Employer Joint board Determination of benefits Collectively bargained Joint board Determinations of procedures, rules, and regulations Employer and insurer Joint board and/or insurer Maintenance of records Employer and insurer Receiving and approving benefit applications Employer and insurer Joint board and/or insurer Joint board or insurer Payment of benefit Communicating with workers Employer-appointed corporate trustee or insurer Employer-appointed corporate trustee or insurer Employer; corporate trustee; and/or insurer Employer and/or union Joint board, or by its appointee: corporate trustee or insurer Insurer or corporate trustee appointed by joint board Joint board; corporate trustee; and/or insurer Joint board Affording dissatisfied workers a hearing and review Employer, insurer and/or special appeals machinery Joint board and/or insurer Determination of medium of funding Determination o f contributions by Worker Employer Financial management of plan Periodic reporting to parties Collectively bargained NOTE: Joint board refers to a board on which employer and union representatives have equal representation. Insurer includes insurance companies, prepayment plans, that is, Blue Cross and Blue Shield, and deliverers of service, that is, group practice plans. 4 Scope o f Study This study is con cern ed with negotiated pension, health, and insurance plans in m a jor agreem en ts, 4 It involves an analysis of plan p rov ision s that designate the party o r parties resp on sib le for the p erform an ce o f the various adm inistrative fu n c tions. This study is based on a 2 5 -p ercen t sam ple of the B ureau’ s file of all a g re e ments of this s iz e , exclu sive o f governm ent, ra ilroa d , and airline agreem en ts. 5 M ost w ork ers em ployed b y m a jo r com panies under the term s o f union agreem ents are c o v ered by both types o f plans. B ecau se the adm inistrative m ach in ery is affected by the type of bargaining unit, the m anagem ent o f single em p loyer and m u ltiem p loyer plans is d iscu ssed separately. As noted, unions r a r e ly have a v o ice in the financial managem ent of sin g le -e m p lo y e r plans. Consequently, this aspect of plan m anagem ent is only included in the analysis o f m u ltiem p loyer plans. A major agreement is one that covers 1,000 workers or more. During the course of this study, a few of the situations declined in employment to less than 1,000. These, however, were kept in the study. 5 To assure representation of each industry, the sample of 475 agreements were selected by taking every fourth agreement from a list of agreements arranged by Standard Industrial Classification industry groups. Some contracts, particularly those which provide for participation in multiemployer plans, do not provide the details of the agreed upon pension or health and insurance plan but indicate only that a plan exists. The adminis tration of such plans, as well as the level of benefits, are described in separate documents. In general, when such a contract was included in the sample, the plan documents examined were those filed by the plan administrators with the Department of Labor’ s Office of Labor-Management and Welfare-Pension Reports. Chapter II. Single-Employer Pension Solely Plans Administered by the Employer The re sp o n sib ility fo r adm inistering m ost sin g le -e m p lo y e r pension plans rests en tirely with the em p lo y e r. Some agreem ents include a clause stating sim ply and d ire ctly that only the com pany has this resp on sib ility. 1 (1) . . . the company shall have the sole responsibility for the administration of the pension plan, in accord ance with its provisions. (2) The administration of the * . . retirement program . . . shall continue to rest with the company. O cca sio n a lly , a departm ent o f the com pany is designated to p e rfo rm to -d a y adm inistrative duties such as p ro ce ss in g applications. (3) som e of the day- The personnel department of the company shall act promptly upon applications for benefits . . . Other cla u ses p e rm it the d ir e c to r s o f the com pany to designate an em ployee to handle som e, if not all, o f the adm inistrative duties. (4) The board o f directors may appoint a pension administrator (who must be in the regular service o f the com pany) to perform such administrative and ministerial functions with respect to the plan as the board o f direc tors from time to time prescribes. M ost frequently, h ow ever, sin g le -e m p lo y e r plans are adm inistered by a m anagement appointed com m ittee o r b oa rd . 1 2 (5) The administration o f the pension benefits shall be in charge o f a board, which shall consist of such mem bers from management, have such authority and perform such duties, as may be determined from time to time by the company. Who appoints the b oa rd m em b ers is not always indicated. e v e r, requ ire the company*s d ir e c to r s to do so. (6) Many agreem ents, how The administration o f this plan shall be in charge o f a pension board to be appointed by the board o f direc tors o f the company. The benefits provided under a pension plan a re, with few ex cep tion s, paid by a fund estab lish ed by the e m p loy er, by an insurance c a r r ie r , or by both the fund and a c a r r ie r . Selecting the m eans of providing the ben efits, that is , selecting the m edium o f funding, is usually outside the ju risd iction o f the individual or board r e spon sible fo r the adm inistration of the plan. This is the resp on sib ility o f the c o m pany and is stated in all but a few plans. Some plans require the establishm ent of a trust fund. (7) To carry out the provisions o f the plan, the company shall enter into a trust indenture with a person or per sons or corporation, as trustee, which trust indenture shall become a part o f the plan and under which the trustee shall receive the contributions o f the company and deposit them in the fund to be either (a) held, invested, reinvested and distributed by such trustee, or (b) paid over to an insurance company under the terms o f an insurance company contract, or (c) used partially under (a) and partially under (b) as the com pany shall elect. The company reserves, in its sole discretion, the right to determine and change the method o f funding and the time o f making and the amount of its contributions and all matters relating to the financing o f the plan. 1 Hereafter, in the text of this report, the term "board" is used regardless of the terminology (board or com mittee) used in the agreement or plan. 2 The clauses cited come from both general collective bargaining agreements and separate (supplemental) pension agreements. These agreements are identified in the appendix. 5 6 O th e r p r o g r a m s p e r m i t th e e m p lo y e r to d e c id e w h e th e r th e p la n is to be fu n d e d , an d h o w . (8) . . . the company may but shall not be required to establish or cause to be established a pension trust or trusts. The company is free to determine the manner and means o f making provision for funding, if any, and paying the pension benefits set forth in this agreement. B ecause an em ployer m ay use se v e ra l different insurance c a r r ie r s or trustees du r ing the life of the plan, usually no organization is m entioned in the pension plan. H ow ever, a few agreem ents nam ed the insurance c a r r ie r cu rren tly being used. (9) The plan provides for funded retirement benefits insured by the . . . /Insurance company name/ and is ad ministered by the company. The grievan ce p roced u re established by som e plans for handling individual pension disputes m ay be used to settle a disagreem ent between the em ployer and the union pertaining to the selection of a particular insurance c a r r ie r or tru stee. (10) . . . any dispute between the company and any local union concerning the responsibility or recognized good standing o f any insurance company or trustee with which any funds contributed by employees are deposited or o f any insurance company from which any annuities are purchased with such employee contributions shall be subject to the grievance procedure . . . In som e c a s e s , the union’ s right "to g rie v e " also m ay stem from its in terest in protectin g benefits pu rch ased with em ployee contributions. The adm inistrator of a pension plan gen erally is resp on sible for its efficien t operation . He estab lish es the ru les and regulations accordin g to plan p rov ision s, and interprets and applies the p rov ision s in determ ining the elig ib ility o f a w ork er for benefit paym ents and the amount o f the payment. He also m ay have to determ ine the amount that has been contributed into the pension fund on behalf of each w ork er and the value o f each w o r k e r's benefit. The preparation o f reports on the operation of the plan is a lso his resp on sib ility. Many agreem ents do not include much detail on the resp on sib ilities of the ad m in istra tor. A greem ents requiring the establishm ent of an adm inistrative board or the appointment o f an individual to adm inister the plan, gen erally d e scrib e the ad m in is tr a to r ’ s duties and resp on sib ility in g reater detail than those which sim ply make the com pany resp on sib le fo r the adm inistration of the plan. An exam ple of the latter fo llo w s : (11) Administration o f the plan shall be the sole responsibility o f the company, and shall, among other things include (a) authorization of payment of such retirement income or other benefits as are provided for under the plan, (b) establishment and enforcement o f such rules and regulations as it shall deem necessary or pro per for the effective administration o f the plan; provided that such rules and regulations shall not be incon sistent with other provisions o f the plan, and (c) resolution o f any other administrative questions that may arise in connection with the operation o f the plan. The duties o f the adm in istrator, as defined in plans adm inistered by an e m p loy er-a p p oin ted individual or b oa rd , vary in scope from those which relate s o le ly to e lig ib ility and ben efit payment determ inations to those which also relate to actu aria l determ inations. The follow ing clause illu strates the amount of detail that m ight be included in these agreem en ts: (12) The administrator shall administer this plan in accordance with applicable provisions thereof and his au thority with regard to interpretation o f said provisions shall be final and binding on the parties hereto . . . . . . The administrator shall have such powers only as are specifically provided herein, including the fol lowing: (a) To prescribe procedure to be followed by employees in filing applications for benefits, and for fur nishing o f evidence necessary to establish employees' rights to such benefits; (b) To make determinations as to the rights established by the plan o f any employee applying for or receiving benefits because of retirement or permanent and total disability, and to afford any such employee dissatisfied with any such determination the right to a hearing thereon before the admini strator; 7 (c) To develop procedures for the establishment of credited service, as prescribed by the plan, o f em ployees, and after affording employees an opportunity to make objections with respect thereto, to establish such credited service conclusively in advance o f retirement; (d) To obtain from the company, from the union, from the trustee, the actuary and from the employ ees such information as shall be necessary for proper administration o f the benefit provisions o f the plan; (e) To prepare an annual statement o f the aggregate assets, receipts, and disbursements o f the fund and a report on the funding status of the plan. Such annual report shall be prepared as quickly as prac ticable after January 1 of each year and shall be made available to the union and to such agencies o f Federal, State or local governments as may be now subsequently required; (f) To authorize the trustee to pay benefits from the trust fund in accordance with the plan and to es tablish necessary procedures therefor; (g) To approve and distribute in such manner as the administrator determines appropriate, information explaining the plan; and (h) To furnish the company and the union upon requests, such reports as are reasonable and appropriate. The E m ployer-A ppoin ted B oard S ize . The size o f the b oa rd is often not sp ecified . It m ay be as large o r as sm all as m anagem ent deem s n e ce ssa ry . Some plans, h ow ever, stipulate the m inimum num ber o f board m e m b e rs, the m axim um num ber, the m inimum and m aximum num b e r , or the exact num ber. (13) The administration of this plan shall be in the charge o f a pension board, which shall consist o f three or more persons from the management o f the company to be appointed annually by the board o f directors of the company . . . (14) The general administration o f the plan and the responsibility for carrying out the provisions hereof, shall be placed in an administrative pension committee consisting o f not more than 12 members . . . (7) The general administration o f the plan and the responsibility for carrying out its provisions shall be vested in a pension committee o f from three to five persons . . . Any one or more o f the members o f such com mittee may be officers or directors o f the company and need not be employees entitled to benefits under the plan . . . (15) The administration o f the pension benefits shall be in charge o f a board, which shall consist o f three mem bers from the company . . . As illu strated in the above cla u se s, individuals appointed to the board m ay be em ployees o f the com pany, o ffic e r s , o r d ir e c to r s . Some plans require a sp ecified number o f o ffic e r s . (16) The administration o f the plan shall be by a pension board o f five officers and/or employees o f the com pany, not less than three o f whom shall be officers. Only ra re ly are designated o ffic e r s req u ired to serve on the board. (17) The board shall choose annually five persons who together with the president o f the company shall act and be known as the service annuity committee. Other plans perm it the appointment of individuals who are not em ployees of the com pany. (18) The company may, however, delegate any or all o f its administrative powers, duties and discretions under the plan to such persons as may be appointed by the company, and no additional compensation will be paid to them for services in such capacities, if such persons are employees o f the company. The Chairm an and S e cre ta ry . Although a board m em ber always serv es as the b o a rd ’ s chairm an, som e plans do not indicate whether he is elected or appointed. Many, h ow ever, req u ired that the board e le ct its chairm an. (19) The retirement committee . . . shall appoint from among its members a chairman and a secretary . . . 8 In a few , an o ffic e r of the com pany is designated. (17) The president o f the company shall ex-officio be chairman o f the committee, and the committee shall se lect a secretary . . . Som etim es the se c r e ta r y as w e ll as the chairm an m ust be a m em b er o f the board as requ ired, fo r exam ple, in clause 19 (page 7). Often the se cre ta ry need not be a board m em b er or an em ployee elig ible fo r pension benefits. (20) The retirement board shall elect . . . tirement board. . . . a secretary . . . who may, but need not be, a member of the re (7) The committee . . . shall appoint as secretary a person who may, but need not, be a member o f the committee or eligible for benefits under the plan. The follow ing clause designates an em ployee in the company*s industrial r e lations departm ent as s e c r e ta r y o f the board. Unlike m ost s e c r e ta r ie s , this one p e rfo rm s the duties n orm a lly p e rfo rm e d by an adm inistrator. (21) The secretary o f the pension board shall be charged with responsibility for the efficient operation of the pension plan and shall have the following duties and powers: 1. To establish rules and procedures . . . 2. To receive and act upon applications from individual employees for pensions; 3. To find the facts and determine the rights o f any employee, or retired employee, under the plan; 4. To prepare and furnish to the pension board an annual report with respect to the operation o f the pension plan; and 5. To furnish, when called upon by the pension board, such additional information as may be required by it so that the pension board may be informed on the operation of the pension plan. C le r ic a l and T echnical A ss is ta n c e . As provided in clause 19 (page 7) and in the follow in g cla u se, the o ffice staff usually is appointed by the board. (22) It /the com m ittee/ shall be empowered to employ a secretary and such other assistants as may be required in the administration of the plan. S erv ices of an actuary are requ ired by all funded plans. 3 tain them from their in su re rs; noninsured plans retain consulting under noninsured trustee plans, se le ction of the actuary is often o f the tru stees, under som e plans it is the resp on sib ility of the Insured plans o b actu aries. Although the resp on sibility em p loy er. (23) . . . The committee shall avail itself, as necessary, o f the services o f the actuary, accountants and counsel selected by the board o f directors. (24) . . . the actuary designated by the retirement board shall make annual actuarial valuations . . . Com pensation and E x p en ses. Many agreem ents do not indicate if board m e m b e rs are paid fo r their s e r v ic e s , probably because they are regu lar em p loy ees, o f fic e r s , or d ire cto rs o f the com pany. H ow ever, som e plans sp e cifica lly requ ire them to serv e without com pensation; others only prohibit their being paid by the fund. (19) Members o f the retirement committee shall serve without compensation, but they shall be entitled to reim bursement from the company for any expense reasonably incurred by them in the performance o f their duties. (12) The plan shall be administered by an individual . . . appointed by the company who shall serve without compensation from the fund . . . ^ Actuarial services always are used to maintain a financially sound plan and to determine required contributions to the fund. All tax qualified plans are required to make actuarial evaluations at periodic intervals. 9 O cca sion a lly , the d ir e c to r s o f the com pany determ ine the com pensation of board m e m b e rs. In som e ca se s they are paid by the com pany; in oth ers, by the fund. (7) The board o f directors shall at its sole discretion determine compensation, if any for the services o f the members o f the committee. Such compensation shall be paid by the company. (25) The members o f the corporate employee benefit committee may receive from the fund such reasonable re muneration for their services as the board o f directors o f the company may from time to time determine. The adm inistrative expenses o f the plan usually are paid by the com pany. This is ex p licitly stated in m any plans in clau ses sim ila r to the follow ing: (26) The company shall pay all administrative expenses o f the plan. Under som e plans, the com pany is resp on sible fo r paym ent o f expenses not paid by the fund. (27) Any fees and expenses o f administration o f the fund and other expenses incident to the operation and man agement o f the plan may be paid by the company unless paid from the fund, except that any and all such expenses incurred after the termination o f this agreement shall be paid from the fund. Under o th ers, the fund m ust pay the expenses not paid by the com pany. (25) All expenses incurred by the corporate employee benefit committee in the administration o f the plan or otherwise, including compensation o f such officers, actuary, counsel, agents or agencies as the corporate employee benefit committee may appoint or employ, shall be paid from the fund to the extent that the same are not paid by the company. Union R epresen tation . Plans ra re ly ca lled fo r union represen ta tives to serv e on the adm inistrative board. W here this o ccu rre d , either the union representative o r the entire board had p rim a rily nonadm inistrative re sp o n sib ilitie s . F o r exam ple, the fir s t clau se below perm itted the union represen tative to participate only when the com m ittee was handling a w o r k e r's g rievan ce. The second clause lim ited the duties o f the board to review ing factual data which a w ork er had questioned. Under the latter plan, the se cre ta ry o f the board, a m anagem ent represen tative, establish ed ru les and p ro ce d u re s and re ce iv e d and acted upon w o r k e r s ' applications fo r pension ben efits. (28) The membership o f the committee shall consist o f . . . One grievance member, appointed by the union or unions involved, for the specific purpose o f represent ing an employee or employees directly involved in a specific grievance to be heard by the committee, to be a member o f the committee during its consideration o f such grievance. (21) The pension board shall have the following duties and powers: To review any questions raised by an employee, or a retired employee concerning his rights under the plan with respect to: His age; date of the beginning o f his continuous service; the number o f years o f his continuous service; the amount to be deducted from the amount o f any pension which he is entitled to under the plan; the amount o f his pension;. . . O cca sion a lly , plans not requiring the establishm ent of an adm inistrative board perm itted the com pany to delegate certain resp on sib ilities to com m ittees o r to share its re sp o n sib ilitie s with the union. (29) The company shall be responsible for general administration . . . . . . The company shall have all such powers as may be necessary to carry out the provisions o f the plan except as the powers and duties o f the company may be modified by any agreement with a collective bar gaining agent. 10 This type o f clause presu m ably p erm its the establishm ent of a join t board of c o m pany and union re p resen ta tiv es, as establish ed by plans d e s crib e d in chapter III. Under e m p lo y e r-a d m in iste re d plans, it is cu stom ary, though not requ ired, to notify the union of the individual appointed as adm inistrator. The few that requ ired it e x p re ss e d it as fo llo w s : (12) The company shall promptly notify the union in writing of the appointment o f the administrator o f the plan and shall promptly notify the union in writing in the event such appointment is rescinded and some other administrator is appointed. A few agreem ents ex p licitly requ ire advance d isclo su re to the union o f d e term inations by the a dm in istrator, and that the union be given an opportunity to d is cu ss them with him . (17) There shall be advance disclosure to the union, and an opportunity for discussion, o f all administrative de terminations with respect to eligibility for retirement and amounts and continued payment o f service annu ities o f employes within the bargaining units o f the company, that are contemplated under and in accord ance with the amended service annuity system. Discretionary determinations made in such administration in good faith shall be conclusive. P ro ce d u re fo r F inal D eterm ination o f P ension C la im s. Many e m p lo y e radm in istered pension plans include a clause em phasizing the finality o f the b o a rd 's or a d m in istra to r's d e cisio n . Under these plans the board o r adm inistrator is not requ ired to give a hearing to a d issa tisfie d w ork er. (30) The administration o f this plan is vested in the board o f benefits and pensions . . . and its decision in all matters involving the interpretation and application o f this plan shall be final. (7) . . . the committee's determination o f all questions arising under the plan shall be binding upon all em ployees, pensioners, disability pensioners or others concerned. All matters falling outside o f the scope o f the powers and duties o f the committee, and not_otherwise provided for in the plan or in the trust agree ment, shall be referred to the board /o f directors/ which shall have the power to act thereon. Under a few e m p lo y e r-a d m in iste red pension plans providing fo r an equal num b er o f com pany and union represen ta tives to review w o r k e r's com plain ts, disputes that cannot be settled by a m a jo rity of the m em b ers are decided by a p erson se lected by the board. (21) In the event a dispute arises that cannot be settled by the pension board, a majority o f the board will choose some individual to sit with the board and decide the issue. In a few plans, the sole duty of the union representative is to rep resen t aggrieved w ork ers b e fo re the b oa rd . (28) One grievance member, appointed by the union or unions involved, for the specific purpose o f representing an employe or employes directly involved in a specific grievance to be heard by the committee, to be a member o f the committee during its consideration o f such grievance. Under som e a greem en ts, the em ployee has the right to question the a ccu ra cy of the data supplied to the adm inistrator by the com pany on the findings o f the phy sicia n who exam ined him . These plans m ay include a cla u se, sim ila r to the fo llo w ing, in which a m eeting of com pany and union represen ta tives is the final step in the grievan ce p ro ce d u re . 1 (1) However, notwithstanding section 19J of the pension plan /regarding a worker's right to file written claim for correction o f statement furnished him by company/, a.n employee who files a claim for correction o f any statement furnished to him pursuant to section 19E /concerning statement furnished worker by company regarding pension earned during year and credited service7, . . . and who is not willing to accept a de cision o f the company after the company's review o f such claim, or who is not willing to accept a deci sion as to his eligibility for disability pension, may, within 90 days after he is informed o f such decision, request the union to represent him in discussing the matter further with the company. In that event, a committee o f three members appointed by the union and a committee o f three members appointed by the company's headquarters will meet for the purpose o f further reviewing the matter. The company's records or the decision regarding eligibility for disability pension, as either modified or maintained without change after the review o f such two committees, shall be final and conclusive and shall not be subject to further review. 11 At tim es, agreem ents r e fe r to the settlem ent of pension disputes but fa il to sp ell out p roced u re s or m ach in ery. (31) Representatives designated by the company and the union shall, through the proper processes o f collective bargaining, endeavor in mutual good faith to resolve any disagreement as to the rights o f any applicant for a pension hereunder. M ore often, how ever, plans sp e c ific a lly designate the m ach in ery fo r the settlem ent of disputes arisin g out o f pension determ inations. Under m ost of these, the grievance m achin ery estab lish ed Under the co lle ctiv e bargaining agreem ent is used. (32) It is agreed that the grievance procedure established in the contract between the company and the union will be used if any differences arise between the company and any employee represented by the union or any former employee on pension represented by the union, as to the application o f the plan to said em ployee or said pensioner. Any problems arising under the retirement plan shall be handled by the local company management with the union, as above outlined. To expedite m a tters, som e agreem ents bypass the e a rly steps of the grievance p r o cedu re, since the o ffic e r s involved at that stage, usually forem an and shop stew ards, have little or no resp on sib ility fo r the operation of the pension plan. (33) Any dispute arising hereunder shall be considered to be a grievance subject to the grievance procedure . • . except that the consideration o f any such dispute shall originate with the final step in the local grievance procedure in effect at the local plant of the company where such dispute arises. U sually, as in the ca se o f g rie v a n ce s, d ifferen ces that cannot be re so lv e d by n ego tiation at the final step in the p roced u re are settled by arbitration. (34) If any difference shall arise between the company or the board and any employee who shall be an appli cant for a pension as to such employee's right to a pension or the amount o f his pension and agreement cannot be reached between the board and a representative of the International Union, such question shall be referred to an impartial umpire to be selected by the board and by the union. O cca sion a lly , the appeals p roced u re for a pension grievance s p e c ific a lly excludes arbitration. (35) Nothing herein shall be construed to subject the plan or its administration to the arbitration . . . o f this agreement, but such matters may be subject to the grievance procedures o f this agreement . • • (36) The provisions o f this article shall be subject to the grievance procedure o f the contract, excluding arbi tration . . . D isability C la im s. With few exception s, plans with grievan ce p roced u res fo r pension disagreem en ts have sp e cia l m ach inery for challenging m ed ica l opinions used to determ ine a w o r k e r's e lig ib ility fo r a disability pension or in determ ining whether a w ork er should be continued on the disability pension r o lls . This p roced u re usually ca lls fo r p h ysical exam ination o f the aggrieved w ork er by two physicians— one appointed by the em ployer and one appointed by the union or em ployee. If these two cannot agree, they subm it the question to a third physician fo r a final and binding d ecision . (13) If any difference shall arise between the company and any employee as to whether such employee is or continues permanently disabled, such difference shall be resolved as follows: The employee shall be examined by a physician appointed for the purpose, and compensated by the com pany, and by a physician appointed for the purpose, and compensated by the employee. If they shall disagree concerning whether the employee is permanently disabled, that question shall be submitted to a third physician selected by such two physicians. The medical opinion o f the third physician, after exam ination o f the employee and consultation with the other two physicians, shall decide such question. 12 Under such agreem ents questions con cerning perm anence and totality of d isab ilities are handled by ph ysician s; questions con cerning whether the disability was due to an unavoidable cause o r was s e lf-in flic te d usually are handled a ccord in g to the p roced u re p re s cr ib e d fo r nondisability disputes. The follow ing cla u se, fo r exam ple, sp e cifie s the sam e p roced u re fo r such disputes as the agreem ent req u ires fo r all disputes, except fo r those relating to the m ed ica l aspects of a disability. (37) If any difference shall arise between the company or the board and any employee who shall be an appli cant for a pension as to: The number of years of continuous service of such applicant; or The age of such applicant; or The average monthly compensation used for pension calculation under paragraph . . . or Whether an applicant, who shall have been determined to be permanently incapacitated and who shall have at least 15 years of such continuous service but shall not have attained the age of 65 years, shall have become so permanently incapacitated through some unavoidable cause; and agreement cannot be reached between the board and a representative of the union, such question shall be referred to an arbitrator to be selected by the board and by the union. Under a few plans, w ork er. Although m ost o f and perm anent d isa b ilitie s, a w ork er due to a ch ron ic (38) only disab ility determ inations can be appealed by the these lim it the appeals to determ inations involving total a few perm it appeal of the e m p lo y e r's d ecision to re tire ph ysical ailm ent. If, during the term o f this agreement, any difference shall arise between the company and a pensioner retired by the company on a normal pension . . . as a result of a medical examination . . . or between the company and any applicant for a disability pension as to whether he shall have become totally and permanently incapacitated, such difference shall be resolved as follows: . . . T im e L im its . A greem ents seldom im pose tim e lim its on the handling of pen sion g rie v a n ce s. H ow ever, som e do requ ire that g riev an ces involving certain issu es be in itially presen ted to the em ployer within a sp ecified p eriod . (39) . . . the company shall not be required to recognize any difference between the company and any employee regarding his age, number o f years o f continuous service or average earnings unless the employee notifies the company in writing o f such difference and the nature thereof within 30 days after advice from the company as to the facts shown by its records with respect to such matter. F inality o f D e c is io n s . P en sion griev a n ces, like other g riev a n ces, usually are settled outside o f cou rts o f law. H ow ever, agreem ents ra re ly prohibit legal action. In the absence o f arbitration , a few include a clause recogn izin g the right of a w ork er to take such action. (36) The provisions o f this article shall be subject to the grievance procedure o f the contract, excluding arbitra tion, without prejudice to an individual agents* legal rights, including the right to action at law or equity for the enforcement o f his rights to the benefits provided under the insurance and retirement programs. R eports to the Union or Joint U nion-M anagem ent C om m ittee. As a rule, union o ffic e r s and em ployees are entitled to r e ce iv e p eriod ic rep orts con cern in g the o p eration and adm inistration o f the pension plan. (40) The pension fund shall be audited annually by a qualified firm of public accountants selected by the company, and a report based on such annual audit shall be published by the company in at least one newspaper of general circulation in each city in which the company has a plant in which employees covered by this plan work, and concurrently with release to the newspapers, a copy of said report shall be furnished to the union. Additional information as to pension fund. The company agrees to arrange to have the administrator furnish the following additional items of infor mation to the union: Information designated as annual shall be furnished (1) to the district director at Canton, Ohio in five copies (2) effective as o f December 31 of the years in which this agreement is in effect and (3) within 120 days from the 31st day o f December of the years in which this agreement is in effect. Information designated as current shall be supplied to the local union president o f the local union covering the bargaining unit in which the employee was working who has filed the application for a pension. Such information shall be submitted within 5 days following the date o f the denial o f such an application. 13 Annual information. a. Name of trustee. b. Actuarial assumptions being used as to (1) interest rate (2) mortality tables used for retirement and disability pensions (3) setback for female employees (4) net actuarial functions not loaded (5) factor used by actuary for employees over 65 who are separated without pension. c. Average number of employees in each unit covered by the plan. d. List (1) (2) (3) (4) (5) (6) (7) (8) e. Financial information. (1) Assets o f fund at beginning o f year. (2) Receipts. Company contributions during year broken down for past service and current service. (3) Net amount o f income for year. (4) Net amount o f disbursements by each type of pension. (5) Assets o f fund at end of year. o f pensions which became effective during preceding year showing: Serial number, badge number, name, and address o f recipient. Sex. Date of birth. Date hired. Date pension began. Accredited service. Total earnings in last 260 bi-weekly pay periods. Total amount o f original pension or lump sum pension payment as the case may be less amount o f social security deduction if any. Current information. Denial cases showing applications filed by employees and denials of applications by administrator. (13) The pension board shall prepare, or cause to be prepared, an annual report within a reasonable period of time after the end of each calendar year after the effective date setting forth in reasonable summary the operation o f the plan for such year. Copies of such report shall be made available for examination by all employees and their recognized collective bargaining representatives in the offices o f all plant managers and personnel directors. (10) The international union shall be furnished with such pertinent information as it may reasonably request, from time to time, concerning the operation and administration of the retirement program insofar as it affects employees or pensioners. The president of any local union shall be furnished with such pertinent informa tion as he may reasonably request concerning the application o f the employee benefit programs to any em ployee, including any employee who has retired during the life o f this agreement in the appropriate bargain ing unit. Under som e plans this right was waived. (41) The federation agrees that by furnishing it with the information listed . . . the company will fully comply with any statutory or other obligation to supply the federation with information concerning the operation of the pension plan, and the federation hereby expressly waives any right to receive further information con cerning the operation of the pension plan for any purpose whatsoever. Other agreem ents ca ll fo r a joint union-m anagem ent board to re ce iv e plan re p o rts. In addition to the rep o rts that the com pany is required to subm it, the board usually can request extra inform ation needed to evaluate the plan*s operation. (8) The company and the union shall establish a joint committee on pensions consisting o f not more than 10 members, one-half o f whom shall be designated by the company and one-half o f whom shall be desig nated by the union. . . . such committee shall be furnished annually a report regarding the operation o f the pension benefits insofar as it affects employees as provided in this agreement. From time to time such committee shall be furnished such additional information as shall be reasonably required for the purpose o f enabling it to be properly informed concerning the operation o f the pension benefits insofar as they affect the employees. Some plans, which did not estab lish a joint board to exam ine the operation of the plan, requ ired the com pany to m eet with union represen tatives fo r that purpose. (42) The company agrees that once a year upon the request of the union, it will meet with representatives of the union . . . and with a representative or representatives o f the pension trustee, to discuss and examine the ope rations o f the pension plan. Chapter III. Single-Employer Administered Pension Plans by a Joint Board Many sin g le -e m p lo y e r agreem ents provide fo r join t em ployer-u n ion ad m in is tration o f the pension plan in sofar as it co v e re d w ork ers in the bargaining unit. M ost o f the plans, which usually are com pany wide o r multiplant in scop e, make the c o m pany resp on sib le fo r the gen eral adm inistration of the plan. H ow ever, joint boards to adm in ister the plan as it applies to w ork ers in the bargaining unit often are p r o vided in am endm ents to the b a sic plans. (43) The company shall be responsible for the general administration o f the amended plan and for carrying out the provisions thereof. The company may, from time to time, establish rules for the administration o f the amended plan. The company may, however, delegate any or all o f its administrative powers, duties and discretions to such persons or committee or committees as may be appointed by the company or pursuant to the terms o f any applicable collective bargaining agreement. Any decisions made by any persons, com mittee or committees appointed pursuant to the preceding sentence, to the extent that such decisions are within the powers, duties and discretions delegated, shall be binding on the company. The amended plan shall be administered, as hereinafter set forth, by the board of administration as it ap plies to employees covered by this agreement. Other com panywide plans provide for the establishm ent of two joint a d m in is trative b oa rd s— one fo r w ork ers in the bargaining unit and one for those outside the unit, as in the follow ing exam ples: (44) Employees in the bargaining unit: There shall be established a joint board o f administration consisting o f six members, three o f whom shall be appointed by the company . . . and three o f whom shall be appointed by the union . . . which board shall administer the benefit structure of the plan to the extent provided by the plan . . . There shall be established local pension committees, each consisting o f four members, two o f whom shall be appointed by the company . . . and two of whom shall be appointed by the union. . . . Each local pension committee shall meet and conduct its business subject to rules prescribed by the joint board of administration . . . Out-of-unit hourly rated employees: There shall be established a joint board o f administration consisting o f six members, three . . . shall be representatives o f the company and three . . . shall be representatives o f the employees, one from the engineering division, one from the manufacturing division and one from any o f the other divisions o f the company. Said board shall administer the benefit structure o f the plan to the extent provided in the plan. (45) The term "board o f administration" shall mean such administrative committees as may be agreed upon be tween an employer and the representatives of the employees o f such employer. Each administrative com mittee created for purposes o f this plan by agreement between an employer and the representative or rep resentatives o f each group of employees covered by the plan shall act only with respect to employees in and employees retiring from such group. Any group of employees to whom this plan is applicable who are not represented by a union may cause representatives to be elected from such group for the purpose o f es tablishing, by agreement with their employer, an administrative committee with respect to the employees in and employees retiring from such group. In_the event an administrative committee for any group of employees is not selected as provided above, [the company/ may perform the functions o f the board o f ad ministration with respect to employees in and employees retiring from such group until such time as an ad ministrative committee for such group o f employees is selected as provided above. It m ay be im p licit, as in the fir s t clause cited above, that until a board is form ed to rep resen t nonbargaining-unit w ork ers, m anagem ent represen ta tives w ill serv e as the board— a point exp licitly stated in the last clause. L e ss frequently, the only p rov ision s on plan adm inistration found in sin g le em ployer agreem ents and in the applicable pension plans requ ire the plan to be a d m in istered by a join t em ployer-u n ion board. 14 15 This section o f the report is based solely on agreem ents which requ ire joint adm inistration o f the pension plan. 1 Lim itations on the A uthority o f the Joint Board The ju risd ictio n o f join t adm inistrative boards o f sin g le-em p loy er pension plans is not as broad as the ju risd ictio n of joint boards adm inistering m ultiem ployer plans. F o r exam ple, none of the fo r m e r agreem ents g ives the board the pow er to determ ine types o r levels of benefits or to amend plan p rov ision s. This is ex plicitly stated in many agreem en ts. (46) The board shall have no power to add to or subtract from or to modify any o f the terms of this agreement or o f the plan nor to change or add to any benefit provided by said agreement or by the plan nor to waive or fail to apply any requirement or eligibility for a benefit under said agreement or the plan. A ls o , unlike join t boards adm inistering m ultiem ployer plans, the boards ad m inisterin g sin g le -e m p lo y e r plans do not determ ine if the plan is to be insured or self-in su re d . This is either agreed to by the parties at the time the pension plan is negotiated or left to the d iscre tio n of the em ployer. (47) The company shall execute a trust agreement with a trustee or trustees selected by the company, or shall enter into a contract, or contracts with one or more insurance companies selected by the company, or both. The company will determine the form and terms of any such trust agreement or insurance contract and may, by agreement with the appropriate trustee or insurance company, modify any such instruments from time to time, or remove or replace any trustee or insurance company. In addition, the em p loy er, with few exception s, se le cts the insurance c a r r ie r , the corp o ra te tru stee, o r both. Only an occa sion a l agreem ent perm its the union to participate in the selection of the co rp ora te trustee or requ ires the join t board to s e lect him . *2 (46) The company shall execute a trust agreement with a trustee or trustees selected by the company and the union to manage and operate the trust fund and to receive, hold and disburse such payments . . . (48) All o f the funds of the plan shall be held by a trustee appointed by the retirement board, in trust under a trust agreement adopted, or as amended, by the retirement board for use in providing the benefits o f the plan and paying its expenses . . . In the few agreem ents which req u ire the union or the join t board to participate in the selection of the tru stee, the com pany and the union share the right to determ ine the term s and fo rm s of the trust agreem ent. (46) The company and the union shall have the right to, and will, determine the form and terms of any such trust agreement, which shall not be inconsistent with the provisions of the plan or the agreement of which it is a part; may modify any such trust agreement from time to time to accomplish the purposes o f this plan, may remove any trustee, and select any successor trustee. A sm all num ber of agreem ents im ply that the corp ora te trustee was at least approved by the union. Some go further. The clause cited below , fo r exam ple, states that the com pany and the union have entered into an agreem ent with a d esig nated co rp ora te trustee. (49) The company and the union have entered into an agreement o f trust with the /trust company/, . . . Copies o f the trust agreem ent or insurance agreem ent signed by the em ployer are usually available to the union and the board. Many agreem ents include a clause requiring the em ployer to furnish the board with a copy. Unless specifically stated, this report does not differentiate between statements in the basic collective bargaining agreement, the supplemental pension agreement, or the complete text of the plan which is incorporated by reference in the agreement. Clauses are cited from any one of the three sources. 2 No clause requiring the joint board to select the insurance carrier was found in the sample of agreements examined. 16 (47) The company will provide the board with . . . a copy o f the trust agreement or insurance contract. The standard o f conduct expected of the trustee usually is defined in the trust agreem ent rather than in the co lle ctiv e bargaining agreem ent or in the pension plan. Seldom a re the union and the joint board participants in the selection of the corp ora te trustee o r parties to the agreem ent with the corp ora te tru stee, and they seldom have a right to approve or disapprove the tru st agreem ent. They ra re ly have a v o ice in the investm ent o f the m on ies in the fund established under the plan fo r the payment of ben efits. Clauses giving the joint board or the union an active v o ice in in vest ment p o lic y w ere found only in those agreem ents which perm itted the board o r union to participate in the selection of the trustee or to be a party to or approve the trust agreem en t. F o r exam ple: (50) . . . With respect to the investment and reinvestment o f the trust funds, the administration board may (1) direct the trustee to purchase or sell such individual stocks or securities as the board may deem advis able, or (2) prescribe the limits within which the trustee shall exercise its discretion in the purchase and sale o f common stock, preferred stock, bonds or any other type of stock or securities. The board shall ex ercise the judgment and care which men of prudence, discretion and intelligence exercise in the manage ment o f their own affairs, not for speculation but in regard to the permanent disposition o f their funds, and shall, in so doing, consider the probable income as well as the probable safety o f the principal entrusted to the board. Many a greem en ts, how ever, requ ire that the union a n d /o r the board be given p erio d ic rep orts cov erin g financial and related aspects of the plan. These reports m ay stim ulate sp e c ific financial recom m endations fro m the union to the com pany at the tim e the pension agreem ent or trust agreem ent is being renegotiated. (51) The corporation will cause the board of administration to be furnished annually with a statement, certified by a qualified actuary, that the amount of the assets o f the pension fund is not less than the amount then required . . . to be in such peiiSion fund on the basis o f the normal cost and the initial and supplementary past service cost o f pensions and on the basis of funding being used for the cost o f supplemental allowances under this pension plan. (47) Information to be provided by the company. The company will provide the board with the following information with respect to the operation of the plan: . . . An annual report of the receipts and disbursements o f the trustee or trustees o f the pension fund. Commencing with the calendar year ending December 31, 1964, the company shall cause to be furnished to the board annually a complete actuarial report, prepared by the actuary, in respect of each year's val uation o f the plan (with respect to benefits payable . • . except as otherwise provided below), includ ing the following: The amount o f the normal cost and prior service contribution; A statement of the method and of the assumptions, such as the interest rate, mortality rates, with drawal rates, and retirement ages adopted for the valuation o f the benefits payable . . . and adopted for the funding of the benefits . . . The actuarial liability, as of the end of each calendar year, separately for retired employes and other persons receiving benefits under the plan, nonretired employes, former employes, and the total; The amount o f assets used in the actuarial valuation; The amount, as o f the end o f each calendar year, o f the unfunded actuarial liability; and The contribution made during the year toward the cost of supplemental allowance . . . the amount o f supplemental allowances paid during the year and the cumulative balance o f such contributions less payments. A copy o f the trust agreement or insurance contract. Information annually as to age, sex and service o f employes of the company as a whole in the United States and as to the number of pensioners and amount o f pensions by age groups, as the board may reasonably require, but in no event shall the company be required to furnish the board with any data not furnished by the company to the actuary. 17 A greem en ts r a r e ly include a cla u se, such as the one cited below , in w hich the union a g re e s not to question the selection of the trustee o r his investm ent p olicy. (52) The union hereby agrees that until on or after October 1, 1975, the union will not attempt to negotiate or raise any dispute with respect to the selection o f the trustee or its investment policy. The joint board does not n orm ally determ ine the amount the em ployer m ust contribute to the pension plan. O cca sion a lly, this is determ ined, as in m ultiem ployer plans, at the time the pension agreem ent is negotiated. U sually, it is based on the recom m endations o f a qu alified actuary se le cte d by the em p loyer. H ow ever, as illu s trated by the follow ing cla u se, som e agreem ents perm it union m em b ers of the board to challenge the a ctu a ry ’ s determ inations and establish m achinery to re so lv e d is a g re e m ents. (52) In the event that the union designated members of the joint pension board shall disagree with the determi nation o f the actuary as to the level of contributions required to be made by the employer . . . the union designated members o f the board shall have the right to demand a meeting with the actuary o f the pension plan for the purpose of resolving any disputed matters in connection therewith. In the event that the re spective parties are unable to resolve the disputed matters, such matters shall be finally resolved by arbitra tion in the following manner: From among the Fellows o f the Society of Actuaries, there shall be selected by the parties an impartial ar bitrator who shall determine by arbitration an acceptable level of contributions required to be made by the employer in any one fiscal year to cover the cost o f benefits accrued and currently accruing under the pen sion plan and the liquidation o f accrued liability for past service. In the event that the parties fail within 10 days after written demand for arbitration hereunder, to select an actuary who qualifies under the above provisions, then the impartial arbitrator shall be selected by the superintendent of the Department o f Insur ance o f the State of New York from among the Fellows of the Society o f Actuaries. The decision of the impartial arbitrator shall be final and binding. . . . Ju risdiction and A uthority o f the Joint B oard A greem ents usually define c le a rly the authority and the ju risd iction o f the board. In addition to being resp on sib le fo r the interpretation and application of plan p ro v isio n s, boards a lso have the authority to develop and im plem ent p roced u res, ru les, and regulations. H ow ever, they do not ordin arily becom e involved in the in i tial processin g of pension applications. The board review s the facts and m akes the final determ ination o f the benefits to be paid. In som e c a s e s , h ow ever, the b o a rd ’ s duties a re not d e s crib e d in detail. exam ple: (53) F or All functions in connection with the administration of the plan shall be vested in a joint pension com mittee . . . The pension committee shall from time to time cause checks to be drawn by the trustee . . . The employer payroll department shall aid and assist the pension committee without cost in carrying out its duties . . . The pension committee shall adopt rules and regulations appropriate to the performance of its duties here under not inconsistent with the terms of the plan . . . P resu m ably under such agreem en ts, the board, by im plication , is resp on sible fo r all the duties involved in the operation o f the plan, including determ ining proced u res and ru les, accepting and p ro ce ssin g pension applications, determ ining benefit paym ents, and authorizing paym ents. Not a ll agreem ents sp ecify that the board m ay re ce iv e a s sistance fro m the com pany, although it usually is perm itted. M ost agreem ents lim it the b o a rd ’ s duties, resp o n sib ilitie s, and authority to those sp e c ific a lly listed. The pension application is filed with the com pany, which m akes the initial determ ination as to the w o rk e r’ s elig ib ility fo r retirem ent benefits. Its determ ination, together with supporting data and the w o r k e rs 's application, then is submitted to the board which m akes the final determ ination and authorizes the trustee 18 or in su rer to make the appropriate pension payment. This p roced u re is ex p licitly or im p licitly indicated by many agreem en ts, as illu strated by the follow ing cla u ses. (54) The company shall . . . accept and process all applications for pension payments. Any information or data necessary to the pension board . . . for reviewing the administration o f this pen sion plan shall be made available by the company to the pension board. (47) . . . if an employe desires to retire pursuant to any provision of the plan he shall make written applica tion to the company on forms prescribed for this purpose. Such application shall state the employee's reason for requesting retirement and the date upon which the proposed retirement is to become effective . . . The company shall furnish a secretary to the board . . . It will be the function o f the secretary to: Receive, on behalf o f the board, pension, supplemental allowance, and survivor benefit applications, notices o f retirement, disputed cases and appeals, and to present such data to the board, together with any additional necessary information. . . . (55) Upon receipt o f an application for a pension benefit (normal, early, disability, or vested deferred) filed by an employee and in all cases o f automatic retirement, the company after securing appropriate information and reports with respect to social security and other benefits involved in the computation o f pension or dis ability benefits under the agreement, will prepare the appropriate authorization for the monthly pension ben efit payment. All copies (3) will be forwarded to the board o f administration through the industrial relations division for review and approval. Copies will be furnished to the employee, the company, and the trustee or insurance company. Under som e com panywide plans, an application in itially is submitted to and r e view ed by a join t plant com m ittee. (51) An employee or former employee desiring to apply for a pension or a supplemental allowance under this pension plan must make an application in writing. . . . The application must be filed with a committee consisting o f the chairman o f the plant shop committee (or any member o f the plant shop committee o f the local union of that plant appointed by the local union and the international union) and the labor relations supervisor (or the plant manager or his representative). . . . If the committee approves the application, they shall transmit the application with the recommendation to the board o f administration. If the com mittee fails to agree, they shall transmit the application with a report in writing by the members o f the committee. Other agreem en ts requ ire pension applications to be submitted d ire ctly to the board fo r p ro ce ss in g . (46) No eligible employee shall be entitled to receive any pension under the plan unless he shall make and file with the board written application therefor. Even though som e agreem ents perm it the application a d d ressed to the board to be a c cepted by the com pany, the com pany m ust give it to the board fo r p ro ce ss in g , as in the follow ing exam ple: (49) . . . The company shall also accept all written communications from participating employees or their bene ficiaries addressed to the committee and submit such communications to the committee for processing . . . R eg a rd less of who initially p r o c e s s e s the pension application, final determ in a tion always is m ade by the joint board. Once it has approved the pension application, the board o r its represen ta tive, usually the se cre ta ry , m ust either authorize the co rp ora te trustee o r insurance com pany to make the benefit payments o r d ire ct the com pany to authorize them to do so. An exam ple o f a clause cov erin g benefit pay-> ment authorization is cited below . (47) It will be the function o f the secretary to: Authorize the trustee to make, adjust, or suspend pension, sup plemental allowance, and survivor benefit payments as directed by the board. The trustee r a r e ly m ay make the payment without authorization from the com pany or the board. A few agreem en ts, how ever, perm it this to be done under certain conditions— for exam ple, when an a rb itra tor determ ines the amount of the pension payment and the join t board does not prom ptly submit to the trustee an authorization fo r payment. 19 (56) Where the arbitrator's award determines the amount o f the pension benefits to be awarded an employee, in the event that the board of administration shall not promptly execute an authorization to the trustee to make payment pursuant to the arbitrator's award, the original or a certified copy o f the arbitrator's award shall constitute authority to the trustee to make payment in accord therewith. One im portant function of joint adm inistrative boards is to establish the p r o cedure to settle a w o r k e r s ’ s com plaint. The cause of the w o r k e r ’ s dissa tisfa ction may relate to the determ ination of one of the fa cto rs relating to his pension e lig ib il ity (for exam ple, y ea rs o f cred ited s e r v ic e , age, and earnings) or to the b o a rd ’ s final determ ination. The board m ay, th e re fo re , grant a hearing to d issa tisfied w ork ers. 3 In m ultiplant com pa n ies, the board m ay establish p roced u res fo r settling disputes at the plant le v e l. (57) Except as otherwise provided in this plan, the powers o f the pension board shall be limited to matters in volving employees represented by the union and shall consist o f the following: . . . to make findings of facts and determinations as to the rights o f any employee applying for pension benefits, and to afford any such individual dissatisfied with such finding or determination the right to a hearing thereon. (47) It shall be the function o f the board to: cations for pension. Establish appropriate procedures for reviewing and approving appli Establish local procedures for the disposition o f disputes arising with respect to an applicant's length o f cred ited pension service, his age, or the amount or effective date o f pension, supplemental allowance, or sur vivor benefit payments. In som e agreem en ts joint boards serv e solely as rev iew boa rd s, approving or disapproving com pany action and affording hearings to d issa tisfied w ork ers. (54) The pension board shall have the following duties and responsibilities insofar as they affect those employees in the bargaining unit: Review and/or act upon disagreements arising under section 5, article II /section relating to credited servicej" and section 5, article III /section relating to retirement on or after age 68/ hereof. Review and/or act on disagreements with determinations made by the company as to amounts o f pensions, within the limits herein provided, or method o f payment to the party entitled to receive the same. Review and act upon any disagreements with determinations made by the company as to the correct age o f the employee arising under any provision o f the plan. Within the restrictions herein provided to make findings o f fact and determinations as to the rights o f any employee applying for retirement benefits, and to afford any such individual dissatisfied with any such finding or determination the right to a hearing thereon. Frequently, the authority o f subordinate plant pension com m ittees established under com panywide or m ulti plant pension plans a lso is defined in agreem en ts. (58) Each committee shall have the following duties and powers with respect only to employes and retired em ployes at the company's works for which the committee is established: To furnish the board with suggestions and advice concerning rules and procedures. To find the facts and determine the rights o f any employe, retired employe, or surviving spouse under the plan, and to afford such employe, retired employe or surviving spouse, or the company, if dissatis fied with any such finding of fact or determination, the right to a hearing; and promptly to certify to the board its findings and determination, or a report o f disagreement, as the case may be. To furnish the board with suggestions and advice concerning procedure for determining past service and future service and to determine, in the manner prescribed by the board, questions presented to it re garding these determinations. To assist in the preparation and distribution o f information and reports. To make recommendations to the board with respect to payment o f small benefit amounts, payment to incompetents and nonalienation of pensions and survivor benefits. 3 The adjustment of disputes is discussed on pp. 39-40. 20 Often, h ow ever, agreem en ts sim ply indicate that the plant com m ittee w ill p e rfo rm du ties assign ed to it by the join t board. (44) There shall be established local pension committees, each consisting o f four members, two of whom shall be appointed by the company (herein referred to as the company members), and two o f whom shall be ap pointed by the union (herein referred to as the union members). Each local pension committee shall meet and conduct its business subject to rules prescribed by the joint board o f administration, and the members thereof shall be appointed and removed in the manner prescribed • . . with respect to members o f the joint board o f administration. A local pension committee shall be established and shall meet and conduct its business in the vicinity of each o f the company's divisions, and shall be concerned exclusively with the ad ministration o f the retirement benefits o f employees and former employees o f such division. The powers o f the local pension committee shall consist o f such powers o f the joint board o f administration as may from time to time be delegated to them by the board. Any dispute which is not resolved by a local pension committee shall be resolved by the board. Although the join t adm in istrative board cannot amend, m odify, or re v is e the pension plan, the board or any m em b er m ay subm it recom m endations to com pany or union n eg otia tors. This is im p licit in a ll agreem en ts; it is , h ow ever, e x p licitly stated in m any, as illu strated by the follow ing clau se: (59) The members o f the committee; either ments to the plan from time to time. mendations. The adoption o f any such tiative, o f the employer and the union jointly or singly, may make recommendations on proposed amend The impartial persons . . . shall not participate in such recom recommended amendments shall be in the province, and at the ini in the normal process o f collective bargaining. Size and C om position of the Joint B oard A greem en ts stipulating a join t board always sp ecify the num ber o f union and em p loy er represen ta tives to se rv e on the board. U sually, the em ployer and the union have an equal num ber o f rep resen ta tiv es, but to a ssu re representation o f all im p o r tant in terest g rou p s, the union o cca sio n a lly has a g rea ter num ber. H ow ever, the voting strength o f both parties are equalized by voting rules d es crib e d below . (53) All functions in connection with the administration o f the plan shall be vested in a joint pension committee, which is hereby established, o f six members, three of whom are to be appointed and certified to the union and the trustee by the employer, and the other three of_whom are to be appointed and certified to the em ployer and the trustee by the administrative officer o f /the union/. (57) . . . there shall be established a pension board o f six members, two o f whom shall be appointed by the company, two o f whom shall be appointed by the New Hampshire Shoe Workers Union (of Nashua), and two o f whom shall be appointed by the New Hampshire Shoe Workers Union o f Manchester, which board shall have, with respect to employees represented by the union and included under this plan, the powers enumerated . . . The total num ber of board m em b ers v aried som ewhat, but four or six are m ost frequent. It r a re ly co n sists of only two m em b ers, one representative of each party. S om etim es, the agreem en ts sp ecify that m anagem ent represen tatives m ust be o ffic e r s o r em ployees o f the com pany. (60) The administration o f the plan will be in charge o f the pension committee . . . consisting o f a represent ative appointed from among its members by each o f the collective bargaining units . . . and a like number o f representatives appointed by the company from among its officers . . . Although agreem en ts usually do not indicate the em ploym ent or occupational status o f union rep resen ta tiv es, a lim ited num ber indicated whom the union m ay or must appoint. F o r exam ple, som e agreem ents perm it an international union’ s r e p resentative to be on the board, w hereas others requ ire it. (54) There shall be established a pension board consisting o f six members, three o f whom shall be appointed by the company (hereinafter referred to as the company members), and three o f whom shall be appointed by the union— one o f whom may be a representative o f the international union (hereinafter referred to as the union members). The union and the company in addition to regular members o f the board, may each ap point one alternate. The union members (other than a representative o f the international union) and the union alternate member shall be employees o f the company. 21 (61) There shall be established an eligibility committee . . . The union members shall be as follows: Two from local 201 and one from the parent international union so that all parties to the contract are repre sented . . . In som e c a s e s , as illu stra ted above, the union m em b ers, except fo r the international union represen ta tive, m ust be em ployees of the com pany and presum ably cov ered by the plan. Some s p e cifica lly requ ire all union represen tatives to be appointed fro m among em ployees in the bargaining unit. (62) A joint company-union pension board . . . shall be established, consisting of six members • • . three o f whom shall be appointed by the union from among the employees in the bargaining unit represented by the union. . . . A few agreem ents stipulate that neither the com pany nor the union representative can be a plan participant. (49) To further administration o f this plan, a pension committee (herein sometimes referred to as the '’committee") shall be created consisting o f two members. Of these, one shall be nominated by the company and the other by the union. Both members of the committee shall have alternates who shall be appointed in the same manner. In no event shall either member o f the committee or his alternate be an employee covered by this plan. E lig ib ility requirem ents other than em ploym ent or occupational status ra re ly are found in agreem en ts. O cca sion a lly a s e r v ice requirem ent is sp ecified . F or e x am ple, one plan re q u ire s both com pany and union rep resen ta tiv es, except fo r the in ternational union rep resen ta tiv e, to have 5 y ea rs of cred ited se rv ice with the c o m pany. If there are no lo n g -s e r v ic e qualified em ployees to serv e on the board, this qualification is w aived. (54) The members and the alternate members o f the board appointed by the company and the members and alter nate members of the board appointed by the union other than the representative o f the international union, shall each be employees o f the company with at least 5 years o f continuous service with the company. Ex ception may be made if either the company or the union does not have qualified persons to serve on the board with the company . . . A s p rev iou sly m entioned, a com panywide multiplant pension plan frequently p r o vid es, in addition to the join t board of adm inistration, plant pension com m ittees which ass is t the join t board in perform in g its duties. G en erally, neither the com pany nor the union represen ta tives m ay se rv e on both the join t board and the join t plant c o m m ittee. O cca sion a lly , h ow ever, the joint board includes union m em bers from each plant com m ittee. (63) There shall be established a board o f administration and for each individual unit, as designated herein, a pension committee consisting o f three company members and three union members. One each o f the com pany and the union members shall be designated as a board o f administration member. The board members o f the pension committees, together with one additional member appointed by the in ternational union and one additional member appointed by the corporation shall constitute the board o f ad ministration. In som e m ultiplant agreem en ts, the international union or a designated o ffic e r appoints the union represen ta tive to the board. (51) There shall be established a board o f administration consisting of six members, . . . three o f whom shall be appointed by the international union, United Automobile Aerospace and Agricultural Implement Workers o f America (UAW) (hereinafter referred to as the union members) . . . (64) There shall be established a board o f administration consisting o f six members, three o f whom shall be ap pointed by the company (hereinafter referred to as the company members), and three o f whom shall be ap pointed by the national director o f the union (hereinafter referred to as the union members), which board shall administer the benefit structure of the plan. In addition to appointing regu lar board m em b ers, each party usually appoints one or m o re alternates who attend m eetings that regular m em bers cannot attend. A s 22 sp e cifie d in the follow ing cla u se, the alternate m em ber m ust m eet the elig ib ility r e quirem ents o f a regu lar m em b er. When attending a m eeting, he has the voting rights of the regu la r m em b er. (54) The union and the company, in addition to the regular members of the board, may each appoint one (1) al ternate. The union members (other than a representative o f the international union) and the union alternate member shall be employees of the company. . . . The company alternate member may act in the absence o f one o f the regular company members, and the union alternate member may act in the absence o f one of the regular union members. Under som e agreem ents regular and alternate m em bers a re appointed at the same tim e, as provided in the clau se cited above. Under other agreem en ts, they m ay be appointed when needed. (45) If a member of the board shall be absent or incapacitated at a time when a meeting o f the board is deemed necessary or desirable, the employer or the union, whichever shall have appointed such member, shall ap point an alternate who shall attend such meeting in the place of such member and shall be deemed a member for the purposes of such meeting. U sually, the term o f o ffice fo r represen tatives on the join t board is indefinite, as illu strated by the follow ing clause: (60) The administration of the plan will be in charge o f the pension committee . . . each member shall serve until his successor shall have been appointed. They can, h ow ever, resign or be rem oved fro m the b oa rd by the party appointing them. (54) Either the company or the union at any time may remove a member appointed by it, and may appoint a member to fill any vacancy among the members appointed by it. (45) A member may resign at any time by written notice filed with the secretary o f the board. An employer member o f the board may be removed at any time by the employer and a union member o f the board may be removed at any time by the union. A union member shall cease to be a member if and when he ceases to be an employee (as defined in the plan) who is represented by the union. W here board m em b ers se rv e fo r a certain num ber o f y e a rs, their term of o ffice is often equal to the term of the b a sic agreem ent; in oth ers, it is fo r a shorter duration. (53) Appointments of the pension committee and the sub-committee are to be made for a period o f 2 years. Reappointments are to be made at the end of each 2-year period. Another provided 1 -year term s under a 3-y e a r agreem ent. (65) The general administration o f the plan shall be placed in the pension plan committee. The committee shall consist o f three members appointed by the president o f the company and three members appointed by the ex ecutive committee o f the . . . union annually in the month o f April, to serve during the ensuing plan year commencing May 1 and until their successors are duly appointed. Vacancies shall be filled by the agency which appointed the member o f the committee whose place is vacant. Although the term o f o ffice fo r each board m em ber is usually the sam e, in som e in sta n ces, m em b ers in itially appointed se rv e staggered term s. (52) Each party shall designate members for initial terms of 1, 2, and 3 years respectively, and thereafter for terms o f 3 years. Each party will be obligated to fill any vacancy among its designated members within 30 days. The Im partial Chairman o r U m pire. Many agreem ents requ ired that an im partial person be appointed to serv e as perm anent chairm an of the board. As d istin guished fro m an a rb itra tor selected to rule on disputes, he m ay participate in the a d m inistration of the plan. N onetheless, his m ost im portant function is the role of im partial u m pire, breaking a tie vote or rendering a d e cisio n when the board m e m b ers are unable to a g ree. (66) The impartial chairman . . . will vote only in case o f a failure of the corporation and union by vote through their representatives on the board to agree upon a matter which is properly before the board . . . The im partial ch a irm a n 's p resen ce at a m eeting usually may not be counted in d e te r mining whether there is a qqjbrum. 23 (67) . . . To constitute a quorum for the transaction o f business, the presence o f four members o f the board shall be required . . . The impartial chairman will not be counted for the purpose o f a quorum . . . He som etim es is prohibited fro m voting on issu es involving recom m endations fo r changes in plan p ro v isio n s, a m atter left en tirely to the d iscretion of the negotiating parties. (59) The members o f the committee, either jointly or singly, may make recommendations on proposed amend ments to the plan from time to time. The impartial persons . . . shall not participate in such recommen dations. Under som e a greem en ts, the chairm an is selected by the com pany and the union. Under oth ers, he is ch osen by the m em b ers of the board. (66) The corporation and the union shall mutually agree upon and select an impartial chairman, who shall serve until requested in writing to resign by three board members. (62) The members o f the central board, by unanimous vote, shall appoint an impartial umpire who shall act as a member and chairman o f the board . . . Under the follow ing p ro v isio n , the chairm an of the appeals (grievan ce) board, established under the b a sic c o lle ctiv e bargaining agreem ent, also m ay serv e as the im partial chairm an. (51) . . . the corporation members and union members may by agreement request the impartial chairman o f the appeal board to serve as the impartial chairman of the board o f administration. Perm anent im partial chairm en or um pires usually are appointed fo r an indef inite p eriod , subject to rem ov a l by a certain num ber o f board m em b ers (clause 51, above). Some a greem en ts, h ow ever, lim it their term of o ffice to a certain period but perm it them to be reappointed. (68) An impartial chairman may be selected by mutual agreement o f the company and union members. He shall serve as such for a period of 1 year following his selection unless requested to resign by four members o f the board. He shall continue to serve as such from year to year unless at the expiration o f any year he shall have been requested to resign by three members o f the board, in which event his successor may be selected as hereinabove provided. W here the agreem en t does not provide fo r a perm anent chairm an, the board may s e le ct a neutral on an ad hoc basis who casts the deciding vote. (60) In the event o f a tie vote on any matter properly before the pension committee, the members o f the pension committee shall name a disinterested person to cast the deciding vote. In som e a greem en ts, the chairm anship is rotated between com pany and union re p re se n tatives. (54) The union and the company shall alternate the chairmanship unless otherwise agreed on. Few agreem ents requ ire the appointment o f a v ice -ch a irm a n . Those that do, how ever, prohibited both the chairm an and the v ice -ch a irm a n to be o f the same party, as illu strated in clau se 45 (page 24). Many agreem ents provide fo r the selection o f an im partial um pire or arb itra tor to decide disputes arisin g out o f board operations. In these in stan ces, the im partial um pire functions as an a rb itra to r, sim ila r in m ost resp ects to arb itra tors acting on grievan ce disputes. (54) The company and the union agree that a single impartial umpire will be appointed to serve on a year-toyear basis for the term o f this pension agreement, for the purpose o f arbitrating and determining disputes properly referred to him thereunder. He shall be agreed upon by the company and the union, and shall be removable at the end of each yearly period upon either party serving 30 days' prior notice on the other party o f its desire to terminate the services of the impartial umpire. In the event they are unable to agree upon such impartial umpire the party desiring the arbitration shall notify the director o f the Federal Media tion and Conciliation Service who shall name an impartial umpire in accordance with the procedure o f the U. S. Conciliation Service. Impartial umpire so appointed shall serve only for the purpose of determining the specific issue sub mitted to him. Issues resolved by the vote of the impartial umpire shall be binding and conclusive upon all parties hereto. 24 (44) In the event the board o f administration cannot resolve the dispute, then an impartial chairman shall be se lected by mutual ?greement o f the company and union members o f the board. The impartial chairman shall vote only in the event o f a failure o f the board o f administration to resolve the difference. W here the im partial um pire is not designated by nam e, he m ay be selected fro m among a panel o f a rb itra to rs, as in the follow ing agreem ent. (56) A list o f five arbitrators will be agreed upon by the parties for the term o f this agreement one of whom will be selected by mutual agreement at the time o f an arbitration. Any two members o f the board shall be en titled to remove the name o f an arbitrator from the above list o f five arbitrators by written notice filed 10 days in advance with the board. In such event, the board shall promptly agree upon a replacement for the arbitrator whose name shall have been so removed from the list o f arbitrators. . . . In other a g reem en ts, the se le ctio n is left to an outside agency, A rbitra tion A ss o cia tio n , while a few a re silent on this m atter. (57) such as the A m erica n . . . If the pension board cannot come to a decision on any issue, the issue shall be submitted to arbitra tion before a group consisting o f the pension board (each member having the votes specified . . . ) and an impartial umpire who shall have one vote, to be chosen under the rules o f the American Arbitration Associ ation or as otherwise mutually agreed. A majority vote o f the arbitration group shall be binding on all parties. In ca se o f a deadlock ov e r the appointment of an a rb itra tor, the selection a lso m ay be m ade by the F ed era l M ediation and C onciliation S e rv ice, a d istrict cou rt, o r by the perm anent a rb itra tor serving under the b a sic co lle ctiv e bargaining agreem ent. (50) Manner o f acting in the event of deadlock. In the event o f a deadlock o f the board in any matter pertaining to the administration of the plan, the board shall agree on an impartial umpire to decide such dispute, and in the event o f failure to agree upon such an umpire within a reasonable time, an impartial umpire to decide such dispute shall be appointed by the District Court o f the United States for the Eastern District o f Wisconsin. (49) . . . Should the committee fail to agree upon and select such neutral person within 2 weeks of its inability to obtain a unanimous vote, then a neutral person shall be appointed by the Director of the Federal Media tion and Conciliation Service, or its duly authorized representative, upon request of either member o f the committee. (62) In the event that the members of the board are unable to agree upon a chairman, or a replacement of a chairman, . • . the arbitrator provided for under the terms of the existing labor agreement between the parties shall serve as board chairman. B efore the board subm its a dispute to an a rb itra to r, som e agreem ents perm it the com pany and the international union represen tatives who are not board m em bers to attempt a settlem ent. (54) Before any issue shall go to arbitration as provided herein, the international union office shall be notified. The representative o f the international union may then meet with the director o f industrial relations, or a duly authorized representative, and attempt to settle this issue. In the event same is not settled within 30 days, either party may refer the issue to the impartial umpire for final determination. The Chairm an. Instead o f a neutral, m any boards s e le ct one of their m e m b e rs as chairm an. In that ca se , he has all the rights and p riv ile g e s , including v o t ing righ ts, o f the other m e m b e rs. (54) The board shall elect one of its members as chairman who shall serve for a period o f 1 year and who shall have the right to vote on all questions presented to the board. (45) The board shall appoint annually from among its membership a chairman and a vice-chairman, one of whom shall be a union member and the other o f whom shall be an employer member, and shall appoint a secretary. In a few ca se s the com pany or its chairm an. (69) represen ta tives designates one o f the latter as The corporation members shall appoint from their number a person to act as chairman who shall serve at the pleasure o f the corporation members. The S e cre ta ry . Frequently, agreem ents include a clause pertaining to the s e l e c tion o f the s e c r e ta r y o f the join t board. Some requ ire him to be a m em b er o f the board; others perm it the board to em ploy som eone to fill the position. 25 (56) The company and the union shall designate one of their appointees to act as chief representative for the purpose o f receiving forms, notices, and other information required under the plan from the secretary who shall be a company member o f the board o f administration, and delivery o f any such form, notice or other information to such chief representative shall constitute delivery to both appointees o f the company or the union, as the case may be. The company and the union shall notify each other in writing as to the selec tion o f the chief representative. (60) The pension committee may appoint a secretary who may, but need not, be a member o f the pension com mittee, and may avail themselves o f such agents and such clerical and other services and such counsel, ac countants and actuaries as may be made available to them by the company for the purpose o f administering the plan. Some agreem en ts p roh ib it a ^*Lan participant from serving as se cre ta ry . (54) The board shall also elect a secretary who may or may not be a member o f the board but who shall be an employee o f the company outside the pension group. Others requ ire the com pany to furnish a se cre ta ry to the board. (47) The company shall furnish a secretary to the board. the secretary have any right to vote. Such secretary shall not be a board member, nor will O ccasion a lly , agreem en ts designate a m anagement or union representative as s e c r e tary or s e c r e ta r y -tr e a s u r e r , and a representative of the other party as chairm an. (50) The officers of the board shall consist o f a chairman who shall be an employee member and a secretarytreasurer who shall be an employer member. . . . If the s e cre ta ry is a board m em b er, he has all the rights and p riv ileg es of the other m e m b e rs. On the other hand, if he is not a board m em b er, he does not have any voting rights. D espite this, his position is often an im portant one b ecau se, under many a greem en ts, he is resp on sib le for the initial p rocessin g of benefit ap p li cation s, fo r recom m ending their approval or disapproval to the board, and fo r related adm inistrative m a tters. (62) The duties of the secretary shall include the following: To receive on behalf of, and at the next regular meeting to distribute to the members of the board, the information to be furnished to the board by the company as hereinafter provided. To receive on behalf of, and at the next regular meeting to distribute to the members o f the board, hibit P-S, notice of Deferred Vested Pension Benefit, o f any employee who has vested pension benefit rights. ex To receive on behalf o f any notice by the a copy of, and at the next regular meeting to company to an employee o f his normal distribute to or postponed To receive on behalf o f the board any pension applications concerning any member(s) represented by the union for review and disposition at the next regular board meeting. the members o f the board, retirement date. of thebargaining unit To receive and present to the board at the next regular meeting, employee requests for review which are ap pealed to the board for final determination, as herein provided. To secure additional information requested by the board for the review and disposition o f cases presented to it. To notify employees and authorize the trustee to make pension payments in the detailed amounts as directed by the board. To take the official minutes and keep all official board records, such minutes being subject to approval by the members o f the board, sufficient copies o f which will be furnished to the members o f the board. "Suf ficient" shall mean six copies for the three members appointed by each party. To notify the members, prior to any monthly meeting date, when there is business to board. be considered by the To notify the chairman, at the direction o f the board, o f any meeting at which a tie vote is to be resolved. To perform such other incidental duties as the board, within its powers, directs. C le rica l and T ech n ica l A ss is ta n c e . The joint board usually arran ges fo r what ev er c le r ic a l a ssista n ce or other types o f assistance it deem s n e ce s s a ry . U sually, this a ssista n ce is furnished by the em ployer. 20 (51) The board o f administration shall . . . arrange with the corporation for office space, equipment and cler ical and other assistance as may be reasonably necessary for performing the duties o f the board, which the corporation will furnish and for which it shall be reasonably compensated from the pension fund, with due regard to economical administration o f the plan. Some agreem en ts ex p licitly give the b oa rd the right to em ploy an actuary, ney, and other a d v ise rs. (49) an a ttor The committee shall appoint an actuary to serve as its technical advisor in the operation o f the plan . . . It may appoint such agents, advisors or nominees or employ such counsel as it may deem necessary for the administration o f this plan. Such appointees need not be members o f the committee. (70) As o f November 4th, 1960, and thereafter once every 3 years, the board o f administration shall select an actuary having on its staff a member qualified by Fellowship in the Society o f Actuaries to make an actu arial revaluation o f the pension plan. The actuary shall submit to the board o f administration, the com pany and the union, a report on the operation o f the pension plan in relation to estimated costs. Other agreem en ts indicate that b oa rd m em b ers representing the union a re entitled to cou n sel fro m o ffic e r s of the union. (45) The union members o f the board shall be entitled to counsel from officers o f the union. Still others sp e c ific a lly perm it the attendance o f com pany and union a d v isers at board m eetin gs. (55) Either company or the union members may have present at any meeting o f the board nonmember advisers (not over two) who may participate in such meetings without vote, but in such cases, the other members o f the board shall be advised o f the names o f such advisers at least 3 days in advance. Bonding. B ecause board m em b ers and their staff ra re ly , if e v e r, handle funds set aside fo r the payment o f b en efits, bonding of these individuals seldom is re fe rre d to in a g reem en ts, except to indicate that it is not requ ired. (48) No member o f the retirement board shall receive any compensation for his services as such, and no bond or other security shall be required o f him in such capacity in any jurisdiction. Under a few agreem en ts requiring bonding, the em ployer or the fund m ust pay the p rem iu m .4 (60) The members o f the pension committee shall serve without bond unless the company shall require otherwise, in which event the company shall pay the premium thereon. (50) The administration board shall provide for fidelity bonds, the cost of which shall be paid out o f trust funds, in such amounts as they may determine, for all persons who shall be authorized to withdraw moneys from the trusts. M eetin gs. P ro ce d u re to be follow ed by the board in transacting board business is not p r e s cr ib e d in the a greem en ts. The frequency of board m eetings usually is left to the d iscre tio n o f the board. (48) The retirement board shall hold meetings upon such notice, at such place or places, and at such time or times as it may from time to time determine. Many agreem ents (46) req u ire the boa rd to m eet at lea st once a month. The board shall meet once each month, or more often if mutually agreed upon by the board, for the trans action o f necessary business. Som e perm it the board to m eet even though there is no o fficia l bu sin ess to transact. (62) Although there is no official business to be considered, a regular monthly meeting of the board can still be held, or a special meeting o f the board may be called by unanimous vote o f the members. On the other hand, a lim ited num ber o f a g reem en ts, while perm itting the board to m eet whenever n e c e s s a r y , prohibit it fr o m m eeting m ore than once a month. 4 Where bonding is required pursuant to the requirements of the Welfare and Pension Plans Disclosure Act, the cost would ordinarily be paid by the pension fund or the employer. 27 (54) The board shall meet at such time and for such periods for the transaction o f necessary business as may be mutually agreed upon by the members, but not more frequently than once each month. The board shall meet at reasonable times upon the signed request o f three members filed with the secretary o f the board. Few agreem ents indicate the day o f the month on which the board m ust m eet. Even in these, the board has the option o f agreeing to m eet on another day, as illustrated in the follow in g cla u se: (47) The board shall meet on the third Monday o f each month, unless otherwise agreed by the board, in the city o f Chicago at quarters to be furnished by the company. Infrequently, agreem ents r e s tr ic t the duration of the m eetings. (43) The company and union representatives on the board shall meet once a month for a period not to exceed 1 day, unless a meeting is called by mutual agreement o f a majority of the company and union represent atives on the board and it is agreed that such meetings will be limited to those matters that require extra ordinary meetings of such board. An occa sio n a l agreem ent w ill requ ire the board to tain tim e during the y ea r. Other m eetings m ust be ever it is deem ed n e c e ssa ry by som e of the board In addition, som e agreem ents perm it the board to below : (50) have an annual m eeting at a c e r held at sp ecified tim es or when m em b ers or o ffic e r s of the board. act without a m eeting, as illustrated The regular annual meeting o f the board shall be held during the month o f January o f each year at a date fixed by the board. The chairman, the secretary-treasurer, or any two members may call a meeting at any time by giving at least 5 days’ notice o f the time and place thereof to each board member. Such notices may be delivered in person, by mail or by telegram. Meetings may also be held at any time with out notice if all the board members consent thereto. In the event the members concur in writing upon any proposition, no meeting thereon need be held. The administration board shall keep true and accurate minutes o f all their transactions at meetings. Action taken by the administration board on any proposition, without a meeting, shall also be entered into said rec ords and minutes. (53) Action o f the pension committee shall be by affirmative vote o f not less than four /o f the six/ members at a proper meeting o f the committee or the pension committee may act by the written consent of not less than four members although not formally convened. Voting and Q uorum R equ irem en ts. M ost agreem ents sp ecify the quorum r e quired to transact board b u sin ess. With few ex cep tion s, an equal num ber of com pany and union-appointed m em b ers has to be present. (50) A quorum o f the board for the transaction of business, except as otherwise specifically provided herein, shall consist of at least two employer members and two employee members. A few agreem en ts, h ow ever, m ittee be present. (59) sim ply requ ire that a m a jority of m em bers o f the c o m A majority o f the committee shall constitute a quorum for the transaction of business, and all action by the committee shall be upon the vote o f at least four [ o i the six/ members. Voting at m eetings held by boards operating under such a rule m ay be overw helm ingly in favor o f either the com pany o r the union, depending on the num ber o f m em b ers of each party presen t. To prevent this the boards usually follow ru les equalizing the voting strength of both sides o r in a few instances, allow the m em b ers present to vote the p rox ies o f absent m e m b e rs. Voting ru les frequently a re designed to give com pany and union represen ta tives on the joint board equal voting strength, even though the num ber o f represen tatives each party has on the board or in attendance at a m eeting m ay d iffer. Under som e agreem ents, each party has a single vote (unit rule) or the total votes assigned each party m ay be divided proportion ately among the m em bers present. 28 (56) . . . At all meetings of the board, the members present appointed by the company shall have, in the ag gregate, a total o f one vote to be cast as a block vote on behalf o f the company and the members present appointed by the union shall have, in the aggregate, a total o f one vote to be cast as a block vote on be half of the union. (44) At all meetings of the board, the company members shall have a total o f three votes and the union mem bers shall have a total of three votes, the vote o f any absent member being divided equally between the members present appointed by the same party. Equal voting strength a lso m ay be achieved by giving each representative the num ber of votes in v e rse ly proportionate to the num ber of m em bers o f his party on the board. If, as in the follow ing exam ple, there are twice as many union re p re sentatives as m anagem ent rep resen ta tiv es, each o f the fo rm e r m ay be given one vote and each of the latter two votes. (57) A quorum shall consist o f one member appointed by each union and one member appointed by the company. Each member appointed by the union shall have one vote, and each member appointed by the company shall have two votes. Ptoxy votes may be cast for those not in attendance. Decisions of the pension board shall be by a majority of the votes cast. Under m ost agreem ents boa rd d ecision s are made by the m a jority presen t and voting. By con tra st, in agreem ents requiring b lock or unit voting, each p a rty 's d e cisio n is determ ined by the m a jo rity o f its m em b ers. This is a lso true o f a few agreem en ts under which each side has an equal num ber of votes, but decision s are based on a con cu rren t vote by a m a jority of the m em b ers representing each party. The follow ing cla u se, fo r exam ple, is taken from a plan with a six -m e m b e r board: (65) All resolutions or other actions taken by the committee snail oe by concurrent vote o f at least four o f its members, two o f whom shall be company appointees and two o f whom shall be union appointees. In con tracts not providing fo r alternates, the vote of an absent m em ber usually is divided am ong presen t m em b ers of his party. (51) At all meetings of the board the corporation members shall have a total o f three votes and the union mem bers shall have a total o f three votes; the votes o f any absent member being divided equally between the members present, appointed by the same party. Decisions of the board shall be by a majority of the votes cast. An o cca sio n a l agreem ent perm its an absent m em ber to vote by proxy. (57) Each member appointed by the union shall have one vote, and each member appointed by the company shall have two votes. Proxy votes may be cast for those not in attendance . . . Com pensation and E xpen ses. With few exception s, board m em bers serve with out com pensation fro m the pension fund. (58) The company and union members shall serve without compensation from the pension fund. The company and the unions each shall be responsible for the fees and expenses o f any physician, expert or advisor se lected by their members. Fees and expenses o f physicians, experts or advisors selected by the board or a committee shall be paid out o f the pension fund. A greem en ts som etim es req u ire that union m em b ers of the board, who lose w orktim e to attend board m eetin gs, be com pensated by the com pany at their regular rate o f pay. (54) The company agrees to pay to each of its employees who are members o f the board representing the union for time lost from regular company employment while engaged in meetings of the pension board 100 percent of his average hourly earnings. (43) For their service on the board the union representatives shall receive from the company such compensation as they would have received during their regular day's work at their occupational step rates. Some plans lim it the num ber of hours fo r which m em bers w ill be com pensated by the com pany. 29 (6 2 ) The company shall compensate each union appointee for work time lost in any regular meeting o f the local board, as herein provided, up to but not in excess of 2 hours per month, and, in the event o f a special meeting requested by the company members, the company shall compensate each union appointee for work time lost in such special meeting, as herein provided, up to but not in excess of 2 hours per month, in each case computed on the same basis as pay for steward grievance time. On the other hand, a few agreem ents explicitly stated that neither the com pany nor the fund would pay union m em b ers fo r serving as board m em b ers. (71) All company and union members shall be regularly employed by the company. No compensation for the time spent in performing their duties as members o f the board shall be paid from the trust fund, and under no circumstances shall the company be obligated to pay lor the time so spent by the union members. F ees and expenses of the im partial chairm an g en erally are shared equally by the com pany and the union. (72) The fees and expenses o f the impartial chairman will be paid one-half by the company and one-half by the union . . . Under a few agreem ents com pensation fo r the im partial chairm an depends on the status o f the w ork er. In the ca se s involving active w ork ers, the com pany pays half and the union pays half; fo r re tire d w o rk ers, the fund pays the fu ll amount of the chairm an 's rem uneration. (58) The company and the unions shall share equally the fees and expenses o f the impartial chairman in cases involving employes. The fees and expenses of the impartial chairman in cases involving retired employes shall be paid out o f the pension fund. Som etim es the fund pays a ll fees and expenses of the im partial chairm an. (46) The fees and expenses o f the impartial chairman will be paid out of the trust fund. In a few in stan ces, the com pany has the option of paying the chairm an 's fee or having the fund pay it. (71) The expenses and fees o f the impartial chairman approved by the board may be paid directly by the com pany or upon its option and direction by the trustee from the trust fund. M ost plans prohibit payment by the fund fo r sa la ries of individual board m em b ers. (55) The compensation and expenses o f the company members will be paid by the company, and the compen sation and expenses o f the union members will be paid by the union, and no part o f such compensation or expenses will be paid from any fund established for the purpose o f financing benefits under this agreement. E xpenses of plans with join t boards frequently are paid by the corp ora te trustee from the trust fund, as illu strated by the follow ing clause: (64) The board shall have such powers as are necessary for proper administration o f the plan . . . . . . and to authorize payment by the trustee from the pension fund o f expenses necessary for the proper administration of the plan. In a few a greem en ts, h ow ever, the com pany pays the expenses of the board. (52) . . . The employer also agrees to pay the expenses of the pension plan. (65) The members o f the committee shall serve without compensation and its necessary expenses shall be paid by the company. R ecords. The joint board usually must keep re co rd s of its m eetings and a c tivities. This is ex p licitly requ ired by som e agreem ents. (45) The board shall cause records to be kept o f all its meetings and actions, the method o f keeping and the custody of such records to be determined by the board from time to time. 30 H ow ever, keeping r e c o r d s pertaining to the operation o f the plan, including data r e quired in its adm inistration, is usually the resp on sib ility of the com pany. (52) The employer shall, at its own expense, maintain all records in connection with the administration o f pen sion plan and trust fund and such records shall not be destroyed without the prior consent of the joint pension board. Such records shall be available to the joint pension board and, at such time as the employer ceases to perform its function as provided above, such records shall be turned over to the joint pension board who shall thereafter maintain them and any cost incurred in so doing shall be a charge against the trust fund. (49) The company shall keep all records and compile all data with reference to or required under the plan. Such records and data shall be submitted to either member o f the committee upon request. The committee shall have the right at all times to call for additional information concerning any or all ap plications forwarded to the committee and to examine all records or data pertaining to the plan. This requ irem en t is im p licit in other agreem ents under which the com pany is to sub m it to the board p e rio d ica l rep orts concerning the operation of the plan, and what ev er data the board needs to act on benefit applications. O cca sion a lly, how ever, operation of the plan. (65) the board a lso maintains the r e c o r d s pertaining to the The committee shall cause to be maintained accounts and records reflecting the administration of the plan, and such accounts and records shall be subject to audit at the close of each plan year by the company or by qualified accountants appointed by the committee. P ro ce d u re s fo r Final D eterm ination of P ension Claim s The decision s of jointly adm inistered boards usually can be appealed by d iss a t is fie d w o rk e rs. In m ost a greem en ts, h ow ever, the use o f the grievan ce p roced u re e s tablished in the b a sic c o lle ctiv e bargaining agreem ent is ruled out; instead, the boards usually a re requ ired to develop a separate review proced u re. (72) As soon as possible after the effective date o f this agreement, the union and company members o f the board shall work out matters such as but not limited to: (1) The procedures for reviewing applications for pensions; (2) the handling o f complaints regarding the determination of age, service credits, and computation of bene fits; (3) procedures for making appeals to the board; (4) means o f verifying, in disputed cases, service credits to which an employee is entitled under the plan; (5) how disputes over total and permanent disability claims will be handled; (6) how benefit payments will be authorized by the board. All such matters shall be consist ent with all other provisions o f the plan and this agreement. The working out o f the procedures outlined in this section shall be the responsibility o f the company and union members of the board, and the impartial chairman shall have no power to decide any question with respect thereto. In som e a greem en ts, the scop e of the review p roced u re is d e scrib e d in detail: (44) If any difference shall properly arise under the terms of this plan concerning a participant about (a) the age o f the participant, (b) the date of the beginning o f his credited service, (c) the amount o f his credited serv ice, (d) the amount o f the deductions from his pension, or (e) the amount o f pension to which he claims to be entitled, the participant shall prepare a written statement which he shall sign in duplicate of all facts and circumstances concerning the matter and submit it to the board o f administration with a request for settlement o f the difference. The decision o f the majority o f the board shall be binding on the company, the union and the participant involved. (73) The union and company members of the board shall, from time to time, work out such matters as: (1) The procedures for reviewing applications for pensions; (2) the handling o f complaints regarding the determination o f age, service credits and computations of benefits; (3) procedures for making appeals to the board; (4) means o f verifying service credits to which employees are entitled under the plan; (5) methods o f furnishing informa tion to employees regarding past and future service credits; (6) how disputes over total and permanent disabil ity claims will be handled, including disputes, if any, with respect to whether a disabled pensioner engages in gainful employment; . . . (74) If any dispute should arise concerning an employee or a pensioner with respect to: (a) (b) (c) (d) The number of years o f his credited service; His age; The amount o f monthly benefit payable to him; or His inability to perform work assigned to him . . . such dispute may be referred to the board by the employee or pensioner, or by the union on his behalf. 31 Some agreem ents perm it certain pension disputes to be brought under the grievance proced ure of the c o lle ctiv e bargaining agreem ent. (65) The committee shall have the exclusive right to determine any question arising in connection with the interpretation, application, or administration o f the plan; and its decision or action in respect thereof shall be conclusive and binding upon any and all participants, employees, and pensioners: Provided, however, that in respect of the specific matters of service, accredited service, and normal annual earnings any union em ployee shall have the right to have the question determined under the grievance procedure provisions o f the appropriate union agreement and a nonunion employee shall have the right to have the question determined by the appeal board under its established procedure. Any such determination shall supersede the decision of the committee in regard to the matter so brought into question. D isability C la im s. M ost agreem ents require the board to get the advice of a physician b efore deciding a cla im fo r permanent and total disability benefits. (75) The board o f administration shall have the following powers and duties: . . . To make determinations as to the rights o f any employees, including all questions o f . . . existence o f total and permanent disability . . . An employee shall be deemed to be totally and permanently disabled when the employee is found by the board of administration on the basis of a report by a physician appointed by the board of administration to be wholly and permanently prevented from engaging in any occupation or employment for wage or profit as a result of injury or disease, either occupational or nonoccupational in cause . . . Others go further by stating that the physician appointed by the board determ ines whether the w orker is perm anently and totally disabled or that his opinion is binding on the board. (63) In any case where the board is required to make a determination with respect to the total and permanent disability o f any employee applying for, or o f any retired employee during total disability retirement, the employee first shall be required to submit to an examination by a competent physician or physicians se lected by the corporation and the report of such examination shall be filed with the board. The board shall appoint a second physician or physicians to make such further examination as may seem desirable to deter mine his physicial or mental condition, and the opinion of such physician or physicians shall decide the question and be binding upon the board, which shall thereupon make its findings in accordance with such opinion. An employee or retired employee who shall refuse to submit to any physical examination properly requested under the pension agreement, shall not be placed or continued on total and permanent disability retirement. (47) Since the question whether an employe is totally and permanently disabled is not made subject to arbitration nor to determination by the board, no arbitrator or the board shall undertake to make a determinationregard ing the same. Such question shall be determined in the manner hereinafter set forth. Should disagreement arise as to whether an employe is totally and permanently disabled and should the disa greement not be resolved on the basis o f the examination o f the physician appointed by the company, the board shall appoint a physician or a clinic to examine the employe and render a decisive medical opinion concerning the totality and permanence o f disability involved. Such physician shall be a member o f the Medical Society nearest the employe’s place of employment. The fees and expenses o f such physician or clinic shall be borne equally by the company and the union. Should it be the judgment of such physician or clinic that at the time o f making his examination it was too early to determine definitely whether the disability is total and permanent, the decision shall be postponed until the physician or clinic considers that sufficient time has elapsed to make such definite determination. (58) An employe shall be deemed to be permanently and totally disabled only if the board shall determine, on the basis o f the report o f the appropriate committee and on the basis o f medical evidence that: 1. He has been totally disabled by bodily injury or illness so as to be prevented there-by from engaging in any occupation or employment for remuneration or profit for the company and 2. Such disability will be permanent and continuous throughout the remainder o f his life. An employe applying for a disability retirement pension shall be required by the appropriate committee to submit to an examination or examinations, by a competent physician or physicians selected by the committee, as may be necessary to determine (1) whether the ‘‘employe is permanently and totally disabled, and (2) the date such disability, if any, commenced. Any two members o f t! committee may require the employe^fo submit to an examination by a physician of their choice, who shall c o n s u l t w i t h the physician or physicians appointed by the committee before the committee takes final action. The committee shall promptly submit to the board a report of its recommendation or disagreement, as the case may be, such report to include in full the reports o f the examining physician or physicians. On the basis o f such reports, the board shall make its determination; provided, however, that it may direct the committee to procure, at a time specified, such further medical examination of the employe “as in its judg ment the circumstances of the case may require. 32 Finality of D e c isio n s. D ecision s of the join t board o r o f the im partial c h a ir man or um pire a re final and binding; they are not subject to challenge by the c o m pany or the union. (43) Decisions o f the board shall be by a majority o f the votes cast, shall not be subject to review by the com pany or the union and shall be conclusive and binding on all employees. Finality o f board d ecision s is em phasized further in a few agreem ents by a union pledge to discou rage legal action s. (66) There shall be no appeal from any ruling by the board which is within its authority. Each such ruling shall be final and binding on the union and its members, the employee or employees involved and on the corpo ration. The union will discourage any attempt o f its members and will not encourage or cooperate with any o f its members, in any appeal to any court or administrative board or agency from a ruling o f the board o f ad ministration. Chapter IV. Administrative Procedures in Multiemployer Health and Insurance Plans About 85 percen t of the m u ltiem p loyer co lle ctiv e bargaining agreem ents studied sp ecified that the health and w elfa re program be adm inistered join tly by the com pany and union. The high p rop ortion of m u ltiem ployer program s that are jointly adm inistered can be attributed to subsection 302(c)(5)(B) of the L abor-M anagem ent R elations (T a ftHartley) A ct, 1947, which req u ires equal union and em ployer representation in the m anagem ent of a health, w elfare, or pension program if an em ployer contributes to a trust fund establish ed after January 1, 1946; those established b efore then are exempt fro m this subsection of the act. T h e re fo re , som e plans (14 in the sam ple, ch iefly in the apparel industry) that w ere in existence b efore that date continue to be adm inistered s o le ly b y the union. Thirteen other m u ltiem ployer agreem ents requ ired the em ployer to provide a health and w elfa re plan fo r eligible em p loy ees, but allow each em ployer to estab lish and adm inister his own plan. G en erally, the joint board has v e ry broad pow ers, including the determ ination of the types and amounts of health and w elfare benefits the fund w ill provide elig ible em p loy ees; the selection of the m edium fo r funding; the designation of funding m ethods; and the resp on sib ility fo r d a y -to -d a y adm inistration. In addition, the board often can negotiate r e c ip r o c a l agreem ents with other funds to perm it em ployees to m ove fro m its ju risd ictio n to that of another fund, and v ice v e r s a , without lo ss of cov era g e. These r e c ip r o c a l agreem ents are p a rticu la rly im portant in industries with high turnover rates such as con stru ction and m otor transportation. The adm inistration of m u ltiem ployer benefit plans req u ires form a l ru les of p r o ced u re, p a rticu la rly since the funds are the resp on sib ility of groups whose in terests often d iffe r. M o re o v e r, p ro ced u res fo r the settlem ent of disputes between m em bers of the board by neutrals are requ ired by the Labor-M anagem ent R elations A ct (LM RA). The com p osition , p ow ers, and functions of the board of tru ste e s, as provided in the c o lle ctiv e bargaining agreem en ts and the trust agreem en ts, are d escrib ed in this chapter. F ir s t, cla u ses establishing the program under the co lle ctiv e bargaining agreem ent and specifyin g the type of adm inistration are con sid ered . Next, the c o m position of b oa rd s, m ethods of selection and rem oval of m em b ers of the board, and voting ru les are exam ined. This is follow ed by illustrative cla u ses showing the m eth ods used to select an arb itra tor when m em b ers of the board are deadlocked. E stablish m en t of the Health and Insurance P ro g ra m The amount of em ployer contributions and type of adm inistration are sp ecified in the co lle c tiv e bargaining agreem en t. G enerally, the agreem ent stipulates that the e m p lo y e r's contribution w ill be paid into a trust fund to be adm inistered by the board of tru stees a ccord in g to the trust agreem ent. (76) . . . The employer shall contribute $25 per month on each employee to the retail clerks union and em ployers health and welfare trust . . . Such contributions to be used to provide health and welfare benefits as determined by the trustees as pro vided in the retail clerks union and employers health and welfare trust agreement. These agreem en ts are usually an im p licit or exp licit part of the co lle ctiv e bargaining agreem ent. One agreem ent m ade this explicit in the follow ing w ords: (77) The welfare fund shall be administered pursuant to an agreement and declaration o f trust administered jointly by an equal number of representatives of the employers and employees, which agreement and dec laration o f trust shall conform to all requirements o f law. A copy o f the agreement and declaration o f trust, together with any amendments thereto, shall be considered as part of this agreement as though set forth here at length. 33 34 A few m u ltiem p loyer agreem en ts that do not stipulate the establishm ent o f a tru st fund requ ire the em p loy ers to provide sp ecified health and w elfare benefits through an insurance c a r r ie r . In such c a s e s , the selection of the c a r r ie r and other adm inistrative functions is the resp on sib ility of the em p loy ers. (78) The association shall secure for and on behalf o f the employers, a group policy o f insurance which shall provide health and welfare benefits for all employees under this contract, and for their eligible dependents, as set forth in the sections below. (79) The association and its member shoe companies will wholly and solely activate and pay for the insurance and hospitalization benefits and will solely administer same in conjunction with the insurance company underwriting the insurance and hospitalization benefits mentioned in section 1 of this article. C om position of the B oard Joint boards usually have an equal num ber of union and em p loy er tru stees, T here a re usually 4 to 12 tru ste e s, but the num ber m ay range fro m 2 to 20 or m ore. (80) The trustees o f said insurance fund shall be two persons designated by the wrecking contractors association o f the City o f New York, In c., and two persons designated by the union. (81) The trustees o f this trust who shall administer this trust and the fund created pursuant hereto shall be eight in number; four of the trustees shall be selected from representatives o f the employer trustors and four shall be se lected from representatives o f the trustors who are labor organizations. M em bersh ip usually is not lim ited to a sp ecified term ; tru stees serv e until rem ov ed by the party that appointed them or until they leave o ffic e . (82) Each trustee shall serve until his death, resignation or removal from office. A trustee may resign at any time by serving written notice o f such resignation upon the chairman and cochairman o f the board o f trustees, and upon the employers and the union, at least 30 days prior to the date on which such resignation is to be effective. Any employer trustee may be removed from office at any time, for any reason, by an instrument in writing signed by the employers, and served on the trustee, the chairman and cochairman o f the board o f trustees and the union. Any employee trustee may be removed from office at any time, for any rea son, by an instrument in writing signed by the executive officer o f the union, bearing the union seal and served on the trustee, the chairman and cochairman o f the board o f trustees and the employers. Under a few p rog ra m s em ployer tru stees serve at the pleasure of the e m p loyer group, but union tru stees serv e a sp ecified p eriod . In the follow ing exam ple, theem ployee tru ste e s ' te rm s of o ffice a re staggered probably because the union wanted to maintain continuity on the b oard, although the em ployer tru stees serv e fo r indefinite te rm s. (83) Each employer trustee shall serve as such trustee until he shall die, become incapable o f acting hereunder, resign or be removed as herein provided. The initial employee trustees shall serve the following terms: . . . until March 31, 1952; . . . until March 31, 1953; . . . until March 31, 1954. Thereafter, each successor employee trustee shall serve for a term of 3 years. A successor trustee appointed to succeed an employee trustee or successor employee trustee be fore the expiration o f his term shall be appointed for the balance o f the unexpired term o f said trustee. Each employee trustee shall continue to serve after the expiration o f his term until his successor shall be duly appointed and shall accept his trust hereunder in the event such successor shall not have been duly appointed and have accepted this trust on the expiration o f his term. There shall be no prohibition of the reappointment o f an employee trustee on the expiration o f his term. U sually, a tru stee can be rem oved at anytim e by the party that appointed him . (81) Any trustee may be removed at any time by the party by whom he was designated, effective upon the giving o f written notice by such party to the board. A trustee may resign at any time upon giving similar written notice. If, h ow ever, he has com m itted a b rea ch of tru st, he cou ld, in som e plans, be rem oved by legal action initiated by the board as w ell as by the appointing party. 35 (83) A trustee may be removed for violation o f his fiduciary obligations under this declaration o f trust, or other good legal grounds by action in a court o f appropriate jurisdiction initiated by any two trustees or by the party which appointed said trustee. A few plans have sp e c ific attendance requ irem en ts; a trustee who v iola tes them m ay fo r fe it his o ffic e , (84) In the event any trustee hereunder shall fail to attend at least two successive meetings of the board o f trustees, such trustee shall thereby automatically forfeit his office and he shall be replaced and his successor appointed forthwith in the manner hereinafter provided, by the party that originally appointed him. O rdin a rily, the appointment of s u c c e s s o r tru stees is the p rerog a tive of the party that named the origin a l tru stee, (85) In the event o f termination o f service as hereinbefore provided for, resignation, death, disqualification, inability or refusal to act o f any o f the original trustees or the successor o f any such trustee, a successor in trust shall be appointed by the party originally selecting the trustee who has ceased to act for any o f said reasons. In addition to the regu lar p ro ce d u res fo r replacin g tru ste e s , a few program s have alternate m ethods o f appointment to be used in case of delay or neglect in fillin g board v a ca n cie s. Som e plans, fo r exam ple, perm itted any two tru stees to petition the cou rts to fill o ffic e s that have rem ained vacant fo r a sp ecified p eriod , (83) In the event o f the failure o f any party to appoint a successor trustee to fill a vacancy trustee, which such party has the power to fill, for a period of 30 days, any two trustees court o f appropriate jurisdiction for an order requiring such party to appoint a successor and, in the event o f a failure o f said party to comply with such order, may petition a priate jurisdiction for the appointment o f a successor trustee to fill such vacancy. in the office of may petition a trustee forthwith, court o f appro Other plans stipulated that a vacancy or va ca n cies on the board of tru stees would not a ffect the pow er o f the rem aining tru stees to adm inister the a ffa irs of the trust, (85) No vacancy or vacancies in the board o f trustees shall impair the power o f the remaining trustees, acting in the manner provided by this agreement, to administer the affairs o f the trust notwithstanding the exist ence o f such vacancy or vacancies. Under union adm in istered plans, changes among the union’ s o ffic e r s frequently are re fle cte d in the com p osition o f the board of tru stees. (86) Whenever a vacancy among the elected officers and G. E. B. members o f the upholsterers' international union including the president emeritus shall have been filled in accordance with the general laws o f the upholsterers' international union, the new officer or G. E. B. member or president emeritus shall auto matically hold a corresponding position on the board o f trustees as set forth on the foregoing sections o f this article. Union m anaged health and w elfa re plans a lso are adm in istered by a board of tru stees con sistin g en tirely o f union m e m b ers and gen erally including one union o ffice r o r m o re . (86) The fund shall be governed by a board o f trustees (hereinafter designated as the "Trustees"), composed of the elected members of the general executive board including the president emeritus, o f the upholsterers' * international union (hereinafter designated as the "G. E. B."). (87) The fund shall be administered by a committee known as the health and welfare fund committee (herein after referred to as the "Committee"), which shall consist o f six members, to wit, the manager o f the union; two members of the union elected by the general membership of the union at the general election for officers o f the union and whose term o f office shall be for the same period as the elected officers o f the union; and three persons who shall be elected by the executive board o f the union from among its own members to serve for the same period. Under som e agreem en ts w here the em ployer contributes to a union adm inistered health and w elfa re fund establish ed b e fo re 1946, the effective date of the LM RA, the e m ployer is not resp on sib le fo r any a sp ects of adm inistration o f the fund or o f providing benefits to elig ib le em p loy ees. 36 (87) Each member of the association ^employer/ shall pay weekly to the union a sum equivalent to six and onehalf percent of the gross payroll of all its workers covered by this agreement. . . . . . . The fund shall be maintained and administered by the union in accordance with the by-laws and rules and regulations adopted by the union for said purposes, or as same may be amended. O ffice rs o f the B oard Although m ost plans do not enum erate the sp e cific pow ers and duties of the b o a r d 's o ffic e r s , they presum ably give the chairm an the right to ca ll and preside ov er m eetin gs; the v ic e chairm an would act as a replacem ent fo r the chairm an, when needed; the se cre ta ry would have the duties of keeping the r e c o r d s of m eetin gs; and the tre a su re r would be resp on sib le fo r the plan's fin an ces. O cca sion ally the agreem ent enum erates the duties of the b o a rd 's o ffic e r s . (88) The chairman shall be the chief executive officer o f the carpenters' union welfare fund; he shall preside at all meeting o f the trustees and in the interval between trustees' meeting shall have general supervision and control over the business o f the fund. He shall require the administrator and employees o f the fund to keep proper books o f account containing a complete record o f all its transactions and shall perform such other duties as the trustees may direct. He shall appoint such temporary and permanent committees from among the trustees and alternate trustees as he shall deem appropriate or as shalL be directed by the trust ees, but the persons to serve on any such committee shall be designated by the chairman. The vice chairman shall have all o f the powers and duties o f the chairman in the latter's absence or inability to act. The secretary shall supervise the keeping o f the minutes o f the meeting o f the trustees, as well as all records o f all minutes, proceedings and actions o f the trustees, and the giving o f notices required by the agreement and declaration o f trust and these regulations. He shall perform such other duties as may be assigned to him by the trustees. The assistant secretary shall have all of the powers and duties o f the secretary in the latter's absence or inability to act. S election o f O ffice rs Although boards gen erally se le ct their own o ffic e r s , plans com m only stip ulate that certa in position s cannot be filled by m em b ers of the same party. F or exam ple, if the chairm an is fro m the union group of tru stees, the v ice chairm an or another o ffic e r m ust be fro m the em ployer group. O ccasion ally the tru stees could se le c t, by m a jority vote, a chairm an from either party. Failing to do so, coch a irm en are designated, one by each group. (89) The trustees shall select, by a majority vote, a chairman. Upon failure o f any trustee to receive a majority vote as chairman, cochairmen shall be selected, one by the employer trustees and one by the union trustees. Many plans a lso requ ire that the positions alternate between the different p a rtie s. Although annual changes are m ost com m on, m o re frequent changes m ay be req u ired . (83) The trustees shall select one of their number who shall act as chairman of the trustees for a term of 6 months, commencing on April 1 of each year, and one of their number who shall act as cochairman of the trustees for the same period of time, provided, that if the chairman shall be an employer trustee, the cochairman shall be an employee trustee, and if the chairman shall be an employee trustee, the c o chairman shall be an employer trustee and provided, further, that at the end of the 6-month term of the chairman, the cochairman shall become chairman of the trustees for a term of 6 months, and the chair man of the trustees shall become the cochairman of the trustees for the same term of 6 months. The trustees shall select one of their number who shall serve as secretary-treasurer of the trustees and of the trust estate for a period of 1 year, commencing April 1 in each year. When the chairm anship and cochairm anship alternate, plans frequently perm it the s e c r e ta r y -tr e a s u r e r to com e from either group. 37 (90) During the month of July in each year, the trustees shall select from among the trustees a chair man and a cochairman o f the trustees, to serve for a term o f one year commencing July fifteenth in each said year. In even-numbered years the chairman shall be selected from among the union trustees and the cochairman from among the employer trustees, and in odd-numbered years the chairman shall be selected from among the employer trustees and the cochairman from among the union trustees. The trustees may from time to time designate one o f their number to act as secretary-treasurer o f the trustees and o f the trust estate. H ow ever, the chairm an and the s e c re ta ry -tre a s u re r m o re frequently m ust com e fro m different p a rties. (91) When the chairman is elected from the employer trustees, the secretary-treasurer shall be selected from the union trustees and vice versa. Under other plans the o ffic e r s m ay be selected without reg a rd to affiliation , although it is often cu stom ary to select them from different groups. (92) The officers o f the board o f trustees shall consist o f a chairman and a secretary-treasurer, the officers to be elected by the board o f trustees for a period o f 1 year. A few plans provide fo r selectin g additional o ffic e r s . (88) The officers o f the fund shall consist o f a chairman, a vice chairman, a secretary, an assistant secretary, and such additional and assistant officers as the trustees may from time to time deem advisable. M eeting o f the B oard of T ru stees * Regular m eetings of the board gen erally are requ ired by the trust a g r e e m ent. In addition, sp ecia l m eetings usually can be ca lled at any tim e by the chairm an, the coch airm a n , another o ffic e r , or by a sp ecified number of tru stees. (93) Meetings of the trustees shall be held at least once a month and at such other times and at such place or places as may be agreed upon by the chairman and secretary and may be called by the chairman or sec retary upon 5 days' notice if all the trustees consent thereto. W here regular board m eetings are held once a y ea r, other m eetings u su ally held as requ ired. (94) Special meetings may be called by the chairman or the secretary-treasurer or at the request o f any two trustees upon 7 days' written notice to all members o f the board o f trustees. . . . (84) A meeting o f the board o f trustees shall be held each year and the trustees shall hold such other meetings from time to time as may be required. On the other hand, w here regu lar board m eetings occu r once a m onth, there m ay be no prov ision fo r callin g sp ecia l m eetin gs. Some trust agreem ents perm it the board to determ ine the tim e and place fo r regular m eetings and allow designated o ffic e r s or * num ber o f tru stees to ca 11 ^ ^ c i a l m eetin gs. (82) The board o f trustees shall determine the time and place for regular periodic meetings o f the board. Either the chairman or the cochairman, or any four members o f the board, may call a special meeting o f the board by giving written notice to all other trustees o f the time and place o f such meeting at least 5 days before the date set for the meeting. . . . Any meeting at which all trustees are present, or concerning which all trustees have waived notice in writing, shall be a valid meeting without the giving o f any notice. Quorum V irtually a ll o f the join tly adm in istered health and w elfare p rog ra m s r e quired a quorum fo r the tran saction o f bu sin ess by the board of tru stees. A quorum usually is defined as the p resen ce of a sp ecified num ber o f tru stees or their altern ates. F o r exam ple, one plan with four board m em b ers req u ires that at least one m em b er o f each party be present. (92) A quorum o f the trustees shall consist of at least two trustees, provided, that in the taking ol any vote or action by the board o f trustees, the quorum consists o f an equal number o f representatives o f the union and the employers. 38 Another plan with eight board m em b ers req u ires the attendance of three out of four m em b ers fro m each party. (91) Six trustees shall constitute a quorum for a meeting of the trustees, provided three are union trustees and three are employer trustees. Some plans, h ow ever, sim ply requ ire a m a jority of the board. Others p e r m it b oards to m eet in the absence of a quorum but requ ire that their actions be sub sequently ra tified by the absent m e m b e rs. (95) . . . To constitute a quorum at any meeting there shall be present at least one trustee representing the con tributors /em ployers/ and one union trustee; provided, further, that in the event no quorum is present at any meeting, any action taken at said meeting may be ratified in writing by all the absent trustees, in which case the action of the trustees shall be as valid as though a quorum were present at such meeting. Voting R ules and P ro ce d u re s Voting ru les and p ro ced u res to be follow ed by the board, although differing in d eta ils, usually are ex p ressed in te rm s of either a m a jority rule or a unit rule. The fo r m e r was defined as a m a jo rity of the entire board; as a m a jority of the board attending the m eeting; o r , le ss frequently, as a m a jority of those voting. The p a rtie s, n ev e rth e le ss, frequently w ere given equal voting pow er, re g a rd le ss of the num ber o f tru stees actually present at the m eeting. W here a m a jo rity vote of a ll m e m b ers of the board is requ ired , there is often a p roced u re fo r casting the v otes of absent m em b ers. (82) The board shall not take any action or make any decision on any matter coming before it or presented to it for consideration or exercise any power or right given or reserved to it or conferred upon it by this trust agreement except upon the vote o f a majority o f all fourteen o f the trustees at a meeting o f the board duly and regularly called or except by the signed concurrence o f all fourteen trustees without a meeting, as provided in section 5 o f this article. In the event of the absence o f any employer trustee from a meeting o f the board, the employer trustees present at such meeting may vote on behalf o f such absent trustee and if such employer trustees cannot all agree as to how the vote of such absent employer trustee shall be cast then it shall be cast as the majority of them shall determine or, in the absence o f such majority determination, it shall be cast as the employer trustee, chairman or cochairman of the board shall determine. In the event o f the absence o f any employee trustee from a meeting o f the board, the employee trustees present at such meeting may vote on behalf o f such absent trustee pur suant to the same method and in the same manner as above provided for employer trustees to cast the vote o f any absent employer trustee. If a m a jo rity vote of tru stees present at a m eeting is requ ired , absent tru stees often m ay submit their v otes in w riting. (85) The decisions o f a quorum of the trustees shall be determined by majority vote o f the trustees present at the meeting. The vote o f the trustees may be cast by them in person at a meeting or may be evidenced by written instruments signed by them or telegrams from them. In addition to a m a jority vote of the tru stees, a m inim um number of votes som etim es is requ ired. (94) All decisions and determinations shall be by majority vote, and a majority shall, in all cases, consist of not less than four trustees. A vote of the majority of trustees shall govern and be binding upon any issue. Under the unit rule of voting, the vote of each group is decided by the m a jo r ity of its m e m b e rs and one vote is cast on each issu e . This proced ure d is c o u r ages the use of undue p ressu re to influence an individual tru s te e 's vote. (93) For any action taken by the trustees, the three trustees appointed by the union shall have one vote between them, and the three trustees appointed by the companies . . . shall have one vote between them. The m a jo rity rule F or exam ple, a m a jority lowing illu stra tion , taken tru stees fro m each group, (90) m ay be m odified to achieve the resu lts of the unit ru le. of v otes fro m each group m ay be requ ired. In the f o l fro m a trust agreem ent providing fo r a board with three two votes fro m each group make up a m a jority of that group. Decisions of the trustees shall be made by the concurring vote of at least two trustees from each group of trustees. 39 A rbitration Unlike single em ployer plans, n early all jointly adm inistered m ultiem ployer plans have separate m ach in ery fo r settling disputes or breaking deadlocks between the union and em ployer tru ste e s. When the board is deadlocked, the dispute is sub mitted d ire ctly to arbitration , 1 In addition, som e plans provide that either party m ay request arbitration if a quorum is not present at a sp ecified number of con secutive m eetin gs. C ollectiv e bargaining agreem ents often state that the regular grievance m a chinery is not available, (81) . , . Any dispute arising in the administration of said fund shall not be deemed to be a dispute hereunder and shall not be subject matter of the grievance procedures . . . When an arb itra tor is needed, he is selected by the board. H ow ever, if the board is unable to agree on an a rb itra to r, virtually all plans provide that an outside agency appoint one. A U .S . D istrict Court, fo r exam ple, might be requested to s e lect him , as provided in the LM RA, One plan paraphrased the act, thus: (96) In the event a disagreement shall arise resulting in a deadlock among the trustees over the administration o f the fund, the dispute shall be referred for decision to an impartial chairman selected by agreement be tween the employer trustees and the union trustees. The decision o f the impartial chairman shall be final and binding on the trustees. In the event the union trustees and the employer trustees cannot agree on an impartial chairman within a reasonable time either the union trustees or the employer trustees may petition the United States District Court for Hawaii to appoint such an umpire. A few plans designate a m unicipal officia l(90) In the event of a deadlock between the trustees, the question shall be decided by a person designated by the then Mayor of the City of New York. Others sp ecify that a governm ent labor co n cilia tor or the A m erica n A rbitration A ssocia tion be asked to name an a rb itra tor. (94) In the event a majority o f the trustees cannot agree on any given issue, any two trustees shall, upon 5 days’ notice to the other trustees thereupon be entitled to call upon the Minnestoa State Labor Conciliator to appoint an impartial person as neutral trustee to deliberate with the trustees and to vote upon the disputed issue. Any decision so made by a majority o f the trustees (including such impartial person) shall be final and binding on the parties. (97) In the event o f a deadlock between the trustees, the question shall be decided by a person designated by the American Arbitration Association. Under som e plans the tru stees select a permanent im partial trustee who v otes only to break dead lock s. If he is unable to act, the board would select an ad hoc a rb itra to r, or failing that, either group could petition the U .S . D istrict Court to appoint one. (85) After the appointment of the /union/ council and £amployer7 association trustees, they may select a person to act as impartial trustee who shall accept this agreement in writing before engaging in the performance of his duties as trustee. Preferably the impartial trustee shall not be directly affiliated with the building in dustry or be a member of any union. . . • /H e / shall not vote except in case of deadlock between coun cil and association trustees. In the event that the trustees shall be unable to appoint an impartial trustee, or in the event that the designated impartial trustee is unable to act and a deadlock develops between the council and association trustees, the trustees shall appoint a neutral person empowered to break such dead lock within a reasonable length of time, failing which, an impartial umpire to decide such dispute, shall, on petition of either the council or the association trustees, be appointed by the District Court of the United States in Chicago, as provided by law. 1 Section 302(c)(5)(B) of the Labor-Management Relations Act, 1947, requires that if employer and employee trustees deadlock on the administration of the trust fund, and there are no neutral persons empowered to break the dead lock, the agreement must provide that the Mtwo groups shall agree on impartial umpire to decide such a dispute. ” It goes on to say that if they are unable to agree on an impartial umpire, he shall be appointed by the appropriate U. S. District Court on the petition of either group. 40 Although the arbitration p ro ce d u res of m ost jointly adm inistered health and w elfa re progra m s are separate fro m those in the co lle ctiv e bargaining agreem ent, a few p rog ra m s use the arbitration p ro ce d u res of the co lle ctiv e bargaining agreem ent, (98) Upon failure to reach such vote,£i.e., reach agreement/ . . . the trustees shall refer the matter to arbitration under arbitration clause of the articles of agreement then in effect between the union and the employers. Functions and Duties of the A dm in istrator The adm inistrative the initial d e cisio n of the p ro ce d u re s to be follow ed v isio n s fo r routine tasks em p loy ees. functions and duties of the board of tru stees range from types and amounts of benefits the plan w ill provide to the in the event the program is term inated. They include p r o such as recordk eepin g and the paying of benefits to eligible In many plans certain duties are delegated to a paid adm inistrator or to an individual tru stee resp on sib le to the board. Some p rog ram s delegate sp e cific duties such as recordk eepin g and p ro ce ssin g cla im s to a se rv ice agency or an insurance com pany. Under som e p rogra m s an executive com m ittee of the board is appointed to adm in ister the trust between m eetin gs of the board. N everth eless, the ultim ate r e spon sibility fo r a ll adm inistrative functions rested with the board of tru stees. (84) The chairman of the board shall annually appoint an executive committee of the board of trustees to consist of any two trustees, provided one shall be selected from the trustees appointed by the em ployers and one shall be selected from the trustees appointed by the local union, and which com mittee shall hold office for a period of 1 year and until their successors shall be appointed and qualified. Said executive committee shall have power in the interim between meetings of the board of trustees to act in the name of and on behalf of the trustees in all administrative matters concerning the trust and fund and on all discretionary matters concerning the trust and fund, sub ject to ratification of such acts, by the majority of the trustees at the next meeting thereof. Type o f Benefit The board usually selects the benefit package, and the co lle ctiv e bargaining agreem ent only stipulates the amount of the contribution; som etim es the co lle ctiv e bargaining agreem ent sp e cifie s the benefits to be provided. (99) With this fund the publishers will purchase group insurance coverage providing the following benefits to the extent possible and practical: Life insurance for employee; accidental death and dismemberment benefits for employee; hospitalization for employee, spouse and children; surgical benefits for em ployee, spouse and children; and sickness and accident benefits for employee. M ore often, a ll a sp ects of the benefits to be provided are determ ined by the board. (91) The benefits to be provided by such fund shall be one or more, the number and kind o f which is left to the determination o f the trustees, of health, welfare, death or related benefits, and in accordance with the collective bargaining agreements between the associations and contributing employers and the unions. Am endm ent o f P rog ra m The boards of tru stees of m ost m ultiem ployer health and w elfare plans are authorized to amend the program at th eir d iscretion . This right, which usually is stated in the fo rm a l trust indenture, frequently is re s tricte d to revisin g the types and amounts of benefits provided; em ployees elig ibility fo r ben efits; p roced u res; and so forth. Although the board usually is em pow ered to amend the plan at any tim e, som e plans im pose certain re s tr ic tio n s . (81) To adopt a plan for the provision o f welfare benefits, and to amend, alter or otherwise change said plan from time to time. 41 Joint A dm inistration With Other Plans Some trust agreem en ts allow their tru stees to join other funds in the p r o c u r e ment of insurance p o lic ie s . They a lso perm it the tru stees to establish a cen tral adm inistrative o ffice in cooperation with other plans. (95) . . . the trustees may join with the trustees o f other trust funds having generally similar trust agree ments and health and welfare insurance programs in contracting for benefits or in the procurement of blanket coverage insurance policies for such benefits, and may maintain jointly with the trustees o f said other trust funds a centralized administrative office; subject, however, to the provision that the trust agreements o f such other trust funds shall provide for identical eligibility requirements and iden tical contributions as provided in this trust agreement, and that the beneficiaries o f each o f said other trust funds shall be covered by the same blanket coverage insurance policy or policies for payment o f benefits that covers the beneficiaries o f this trust fund for payment o f benefits; subject further, that separate records and accounts shall be maintained and kept reflecting the financial results and condi tion o f each trust fund, separate records shall be maintained o f the minutes o f trustees' meetings and other records relating to the trustees o f each o f said trust funds, and that each o f said trust funds shall remain and be autonomous; and, provided further, that no action, resolution or other matter taken by the trustees, whether collectively or individually, o f any o f said other trust funds, or all or any num ber o f said funds, shall be binding on the trustees o f this fund unless the trustees o f this fund shall ex pressly join therein by the appropriate exercise o f the power and authority o f the trustees hereof as specifically expressed in this trust agreement. In som e ca se s plans seek such coordination to m in im ize the duplication of contributions and benefits as w ell as to reduce adm inistrative c o s ts . (82) The board o f trustees may, by unanimous vote, coordinate its activities in the administration o f the fund and the health and welfare plan with the administrative activities o f the boards o f trustees o f other trust funds and health and welfare plans established or to be established for building tradesmen in California to such extent as may be necessary or desirable to minimize costs, eliminate unnecessary bookkeeping and other expenses for the individual employers and avoid or eliminate duplicating employer contributions or insurance coverage with relation to the same employee. Under som e trust agreem en ts tru stees m ay enter into r e c ip r o c ity a g r e e m ents with other plans so that th eir m e m b ers could m ove among plans without losing their elig ib ility fo r health and w elfare benefits. (100) The trustees shall have the power to enter into reciprocity agreements with any other fund or funds, wherein it is agreed between such funds that the accrued eligibility o f employees transferring from one fund to the other is given full faith and credit between such funds. The employee's benefits, if any, shall be determined in accordance with the eligibility requirements o f the fund which the employee is working under at the time any claim accrues. (101) The trustees, acting by vote or by written instrument, in accordance with the provisions o f this agreement, shall be empowered to contract with trustees o f other trust funds having jurisdiction of other geographic areas subject to the application o f similar trust funds which provide employee ben efits. Such agreements between trustees o f this fund and trustees of similar funds shall be reciprocal in nature, and shall be on such terms and conditions and shall provide for such procedural matters as in the discretion o f the trustees o f this fund are applicable. In such agreements, provision shall be made to continue eligibility of covered employees when employment is within more than one geo graphic area, and one or more areas are covered by welfare funds. Such reciprocal agreements shall also provide for the transfer of contributions or the payment of contributions covering the employment in each respective area. Plan Term ination S p ecific p ro ce d u re s to be follow ed in the event the plan is term inated are found in a ll m u ltiem p loyer health and w elfare p rog ra m s. Follow ing the cessa tion of con tribu tion s, som e boards are to apply existing funds to the purposes sp ecified in the agreem ent until they are exhausted. The trust then is term inated. (97) In the event that the obligation of the employers to make employer contributions shall terminate or upon any liquidation of the trust estates, the trustees shall continue to apply the trust estates to the purposes specified . . . of this agreement and none other, and upon the disbursement of the entire trust estates, these trusts shall terminate. (102) . . . if for any reason this trust should be terminated, any and all monies remaining in the fund after the payment o f all unpaid insurance premiums and other expenses and obligations o f the trust, shall be paid or used for the continuance of one or more o f the benefits of the character hereinbefore specified, until such monies have been exhausted. 42 If the parties a g re e , tru stees m ay tra n sfer the rem aining funds to another trust providing sim ila r ben efits, (103) In any event, upon termination the trustees may, with the consent o f the majority o f the unions and the majority o f the employers, transfer the group insurance policy and the balance, if any, of the assets o f the trust fund remaining in the hands o f the trustees, or any portion thereof, to the trustees o f any fund established for the purpose o f providing substantially the same or greater group insurance coverage than that contemplated by the plan or plans. In other plans the tru stees a re given broad latitude to m eet the ob je ctiv e s of plan, (104) In the event this trust is terminated, the trustees are authorized and empowered to dispose o f the funds remaining in their hands in accordance with any plan conforming to the purposes o f the statute and the objectives o f this agreement. . . . A dm in istration S p e cific p ro v isio n s fo r d a y -to -d a y adm inistrative duties, such as r e c o r d keeping and the p ro ce ss in g and paying of em ployee benefit c la im s , g en erally are not found in the co lle c tiv e bargaining agreem ent or in the trust agreem ent. In stead, the board is em pow ered to h ire legal, adm in istrative, and c le r ic a l a s sistants, as re q u ire d , to adm inister the fund. (96) To provide for the payment of all reasonable and necessary expenses o f collecting the employer contri butions and administering the affairs o f the trust fund, including all expenses which may be incurred in connection with the establishment o f said trust and fund, the employment o f such administrative, legal, expert, consultant, and clerical assistance, the leasing o f such premises and the purchase or leasing o f such materials, supplies or equipment as the trustees, in their discretion, find necessary or appropriate in the performance o f their duties. F in an cial A dm in istration The board o f tru stees is invariably resp on sib le fo r the financial m an agem ent o f trust funds. They have to c o lle c t contributions, select an in su r ance c a r r ie r , m ake investm ents, and pay benefits. Although these duties m ay b e, and frequently a r e , delegated to a corp ora te trustee or an insurance c o m pany, the resp on sib ility fo r them re sts with the board. C ollection o f Contributions P ro v isio n s fo r the co lle ctio n of contributions always are included in the co lle c tiv e bargaining agreem ent o r trust indenture. E m ployer contributions usually are requ ired shortly after the end of the month or pay period . If they a re tardy, the board or union can com p el payment by court action or eco n o m ic sanctions. C ollectiv e agreem en ts often subject delin quent em p lo y e rs to fin es and union m e m b ers to the rem ov a l fro m their jo b s . (105) Employers shall prepare and send monthly reports with payments in full to the health and welfare, and pension fund office. Payment shall be made to the funds by the 15th o f the following month. A reg istered notice, copy to the employers' association, shall be sent to employers failing to make payments within this 15-day period. If payments are not received within 10 days o f receipt o f this notice, the em ployer will be deemed to have violated the agreement and no union journeyman painter shall be al lowed to work for this employer until payments are brought up to date. Som e c o lle ctiv e a greem en ts a lso req u ire delinquent em p loy ers to pay the co s ts o f litigation. (106) Payment shall be made to the welfare fund office not later than 60 days following the month in which the work was performed but in no event later than 20 days following the end o f the calendar quarter. Should payment be made later than 60 days following the month in winch work was performed or 20 days following the end o f the calendar quarter, the contractor agrees to add 10 percent to the amount due as penalty. If it becomes necessary for the fund office to file suit against the contractor for delinquent payment o f welfare fund money due, the contractor agrees to pay, in addition to the 10 percent penalty mentioned above, all litigation costs, including a reasonable attorney fee, which attorney fee shall not exceed $250 in any one suit. 43 Others s p e c ific a lly give the union the right to ca ll a strike against delinquent em p loy ers. (107) The prohibition against strikes in article XXX o f this agreement shall not be applicable if employer, after reasonable written notice (which shall not be more than 30 days in any case), shall have failed to pay contributions to the health and welfare plan or the pension plan on or before the 20th day o f the second calendar month with respect to which such contributions became payable. (80) Failure on the part o f an employer to make payments as hereinabove provided, for the preceding, week after 3 days' written notice by registered mail from the union, shall be deemed a breach o f this agreement, and the union may order a stoppage o f work on the employer's job without resort to the arbitrable provisions o f this agreement, upon the continuation o f said default beyond the time set forth in said 3-day notice. On or shall, which ments after the third day set forth in the notice above referred to, a proper official o f the union, on the employer's request, grant additional reasonable time not to exceed 1 day, within to make the required payments, and thereafter may order a stoppage o f work if such pay are not made, and all time lost by the workers shall be paid by the employer. The provisions hereof shall survive the expiration o f this agreement. To m in im ize delinquencies the tru stees m ay requ ire d ep osits. (81) The trustees may in their exclusive discretion require a good faith deposit in the amount of not more than $500 from an employer where the trustees find that such employer is composed o f one or more persons, firms or corporations who were or are principals or stockholders in any other employer which owes an indebtedness to the fund on account o f unpaid contributions or liquidated damages, or which at any time had a record o f delinquency within the meaning o f section G o f this article. M edium of Funding With few ex cep tion s, the board of tru stees d ecid es how the benefits are funded. The board* s authority to provide benefits on either an insured or s e lfinsured b a sis often is e x p re sse d as fo llo w s : (85) Provisions for rendering such benefits above described and other related welfare purposes shall be made from time to time by the trustees, either on an insured or self-insured basis, and such pay ments and provisions, limitations and conditions for benefits shall be scheduled and prescribed as the trustees shall determine from time to time. (96) The benefits may be provided by contract with service plans, by purchase o f insurance policies, or directly from the fund. Other plans req u ired that benefits be provided through an insurance c a r r ie r or prepaym ent organization. (84) The trust and the fund are created for the purpose o f providing and maintaining through policies issued by duly qualified insurance carriers. In addition the b oards frequently are resp on sib le fo r selecting the in su rer. (102) To procure a policy or policies o f hospital medical or group life insurance for the employees as au thorized and permitted by the insurance code o f the State o f California, and to do any and all acts and things necessary or advisable to effectuate such insurance plan for the benefit o f such employees. In som e c a s e s the union se le cts the in su rer and the tru stees paid prem ium s from the tru st fund. In the follow ing clause the union a lso se le cts the group insurance p o licy , including the types and amounts of benefits. (80) To pay or provide for the payment o f premiums on such policies o f group life insurance, group ac cident and health insurance for medical and surgical care and hospitalization for members o f the union, their wives and their children under 18 years o f age, as the union may select. . . . Others req u ired the board to submit the p rop osed insurance con tracts fo r union approval. (108) The forms and type o f insurance as may be selected by the trustees shall be submitted to the union for its preference. 44 Inve stments The board of tru stees w as, of c o u rs e , resp on sib le fo r investm ents. This inclu des both investm ent p olicy and the selection of s p e cific investm ents. These functions could be delegated, but the tru stees still are resp on sible fo r o v e ra ll p olicy. (109) In their discretion appoint a bank or trust company whose capital is not less than $2,500,000, to be designated as the "Corporate Trustee," and to enter into and execute a trust agreement with such bank or trust company to provide for the investment and reinvestment o f the trust fund, with such other provisions incorporated therein as may be deemed desirable in the trustees' sole discretion for the proper management o f the health and welfare fund, and upon such execution to convey and transfer to the corporate trustee any part o f the health and welfare fund, and without limit with respect to the powers which the trustees may grant to the corporate trustee in such agreement. The trustees shall be forever released from any responsibility or liability with respect to any funds which they may convey to the "Corporate Trustee". Som e agreem en ts requ ire the tru stees to use the judgem ent and ca re of a "prudent" man. (103) . . . in acquiring, investing, reinvesting, exchanging and selling and managing the property o f the trust fund, the trustees shall exercise the judgment and care under the circumstances then prevailing, which men o f prudence, discretion and intelligence exercise in the management o f their own affairs, not in re gard to speculation, but in regard to the permanent disposition o f their funds, considering the probable income as well as the probable safety o f their capital. M ore frequ en tly, the boards* the tru st. (97) authority was re s tricte d by the term s of The trustees shall deposit all monies received by them for the purpose o f providing social insurance in such bank or banks as they may designate for that purpose, and may invest and reinvest a sum not ex ceeding one percentum o f such funds as they do not require for current expenditure in bonds or other obligations o f a foreign sovereign government selected by the trustees, and may invest and reinvest the balance o f such funds as they do not require for current expenditure in the following types o f securities: (1) Bonds which are legal for the investment of trust funds under the laws o f the State o f New York. (2) Common stocks, listed on a stock exchange, under supervision or regulation by the Securities and Exchange Commission, and preferred stocks to the extent that, immediately after their purchase, the inventory value o f all common and preferred stocks held will not exceed 35percent of the inventory value o f the assests o f the fund. (3) Bonds and mortgages and notes and mortgages issued by the federal housing commissioner or guaran teed under Title III of the servicemen's readjustment act o f 1944, whether or not the same may be legal investments for New York trustees. Some plans can invest only in bonds, in life insurance con tra cts, or U. S. Governm ent obligation s. (85) The trustees shall have the power to invest and reinvest the trust fund in any bonds or fixed income obligations o f the United States Government, any state government, any municipality, any governmental corporation or any private corporation, and may sell or otherwise dispose o f such bonds or fixed income obligations at any time and from time to time as they see fit; provided, however, the trustees may, in their discretion, invest the trust fund or any part thereof in life insurance contracts issued by legal reserve life insurance companies authorized to do business in the State of Illinois as may be selected by the trust ees for the purpose o f providing for all or any part of the benefits payable under this trust. (92) To invest and reinvest funds o f the trust in bonds or obligations o f the United States Government, and to sell or otherwise dispose of such bonds or obligations at any time and from time to time as the trustees may see fit. Bonding Since both the L abor-M anagem ent Reporting A ct of 1959 and the 1962 am endm ents to the W elfare and P ension Plan D isclo su re A ct requ ire the bonding o f any union o r w elfa re plan o ffic e r s and em ployees that handle the m oney o r p rop erty o f these plans, all o f the trust indentures exam ined had bonding p ro v isio n s. T y p ica l exam ples o f bonding p rov ision s are as follow s: 45 (110) The trustees shall, by resolution duly adopted, provide for fidelity bonds with such companies and in such amounts as they may determine, for trustees or other persons who shall be authorized to receive or withdraw funds from the trust estate. (92) The trustees may, by resolution duly adopted, provide for fidelity bonds with such companies and in such amounts as they may determine, for trustees or other persons who shall be authorized to receive or withdraw fluids from the trust estate. Audit Annual audits a re requ ired by the trust agreem en ts. 2 C opies are furnished to the signatory p a rtie s, and a copy is available at the o ffice of the trust fo r in spection by in terested p erson s. (81) The bond shall cause an annual audit to be made o f the fund by a certified public accountant. Copies o f said audit shall be furnished to the parties, and a copy shall be available at the prin cipal office o f the trust for inspection by interested persons. Under som e plans a copy of the audit is available at the fund o ffice and other p la ces that are designated by the board. (111) An annual audit o f each fund shall be made by accountants designated by the board o f trustees. A statement o f the results o f such audit shall be made available for inspection by interested persons at the principal office o f the fund and at such other places as may be designated by the board o f trustees. Others provide that a copy o f the audit be given to each tru stee, to the parties to the a greem en t, and a copy m ade available at the fund o ffice . (85) The trustees shall procure an audit o f the books of the trust by a certified public accountant not less frequently than once each year and a copy of each such audit shall be furnished to each trustee, the association, and the council, and a copy o f such audit shall be kept available for inspection by au thorized persons during business hours at the office o f the trustees. Payment of T ru stees T ru stees usually serv e without com pensation. (95) The trustees, and each o f them, shall serve without compensation o f any kind or nature whatsoever from the trust fund for the time during which they may be required to perform their duties. Others are not paid fo r their s e r v ice s but are reim bu rsed fo r their expenses. (112) The trustees shall receive no compensation for their services hereunder, but they shall be reimbursed for all reasonable and necessary expenses which they may incur in the performance o f their duties. In lieu o f said expenses, the trustees may each receive the sum o f $20 for attendance at a duly called meeting. In a few plans, the tru stees are allow ed to set the com pensation they w ill re c e iv e fo r the p erform a n ce of their duties. 3 (80) The trustees o f the insurance fund shall be paid a reasonable compensation as fixed by the board from time to time, for each day necessarily engaged in the work o f the trust fund, and the trust indenture, in this regard, is hereby deemed accordingly amended. Section 302(c) (5) (b) of the Labor •'Management Relations Act, 1947, requires an annual audit of health and welfare trust funds subject to the provisions of the act. The act also requires that the results of the audit be available for inspection at the principal office of the trust fund. The Welfare and Pension Plans Disclosure Act specifies for plans with over 25 participants, the information that must be included in an annual financial report, and the publication requirements. 3 Payments to trustees who are full-time union officials would be contrary to AFL-CIO policy as expressed in paragraph 1 of "Ethical Practices Code II" which states: "1. No union official who already receives full-tim e pay from his union shall re ceive fees or salaries of any kind from a fund established for the provision of a health, welfare, or retirement program. . . . " (AFL-CIO Codes of Ethical Practices, AFL-CIO Publication No. 50, 1958, (p. 23). Appendix. Index to Clauses Cited E ffective dates are shown because many pension or trust agreem ents have no expiration date. W here amendm ents are quoted, their effective dates are shown. A ll unions are a ffili ated with the A F L -C IO except those follow ed by (In d .). Clause number 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 E m ployer and union W estinghouse E le c tr ic C orp. , Standard C on trol D ivision E le c tr ic a l W ork ers (IBEW) Hughes T o o l C o . , Oil T ool D ivision Steelw orkers (USA) M otor W heel C orp. A llie d Industrial W ork ers (AIW) H oneywell, Inc. Utility W ork ers (UWU). The D uriron Co. , Inc. S teelw ork ers (USA) Com bustion Engineering, Inc. B oilerm a k ers (BBF) B risto l M anufacturing C orp. Rubber W ork ers (URW) True T em per C orp. Steelw ork ers (USA) I - T - E C ircu it B reaker Co. E le c tr ic a l Switchgear Union (Ind.) The B. F. G oodrich Co. Rubber W ork ers (URW) M orse Chain Co. , Subsidiary of B org -W a rn er C orp. M achinists (IAM) A m erica n M etal C lim ax Co. , C lim ax Molybdenum Co. D ivision O il, C hem ical and A tom ic W orkers (OCAW) G eneral T ire and Rubber Co. Rubber W ork ers (URW) Olin M athieson C hem ical C orp. M achinists (IAM) G ra b ler M arufacturing Co. Steelw ork ers (USA) K elly-S p rin gfield T ire Co. , Subsidiary of G oodyear T ire and Rubber Co. Rubber W ork ers (URW) Com m onwealth Edison Co. E le c tr ic a l W ork ers (IBEW) H am ilton Manufacturing Co. C arpenters (CJA) W eyerhaeuser Co. , P aper D ivision P a p erm a kers and P a p erw ork ers (UPP) 47 P ension or trust agreem ents effective date C ollective bargaining agreem ent expiration date N ov. 1, 1969 Sept. 15, 1967 Sept. 1, 1964 A p r. 4, 1962 Sept. 1, 1963 Aug. 10, 1964 July 1, 1963 O ct. 11, 1962 Feb. 6, 1970 July 15, 1967 Sept. 22, 1965 N ov. 1, 1958 Aug. 1, 1967 Jan. 31, 1965 Jan. 1, 1964 July 24, 1967 Jan. 1, 1964 D ec. 31, 1951 Aug. 1, 1963 48 Clause num ber 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 E m ployer and union Cincinnati Gas and E le ctric Co. Independent U tilities (In d .) B org -W a rn er C orp. , Y ork D ivision, Ice M achinery Independent E m ployees A sso cia tio n (in d .) New England Telephone and T elegraph Co. New England F ederation o f Telephone T ra ffic W ork ers (Ind.) P otlach F o r e s ts , Inc. W oodw orkers (IWA) G e o r g ia -P a c ific P aper C orp. P ap erm a kers and P a p erw ork ers (UPP) P h ilip M o r r is , Inc. T o b a cco W ork ers (TWIU) K elly -S p rin g field T ire Co. , Subsidiary of G oodyear T ire and Rubber Co. Rubber W ork ers (URW) M otor W heel C orp. A llie d Industrial W ork ers (AIW) W iscon sin E le ctric P ow er Co. O ffice, Sales and T ech n ica l E m ployees (ind. ) North A m erica n R ock w ell C orp. , A e ro sp a ce and System s Group Auto W ork ers (UAW). (Ind. ) E .I. du Pont de N em ours and Co. C hem ical W ork ers A sso cia tion (in d .) A tlantic Steel Co. Steelw orkers (USA) T ennessee C opper Co. , D ivision of Tennessee C orp. C hem ical W ork ers (ICW) John M o r r e ll and Co. Packinghouse W orkers (UPWA) D uriron Co. Steelw ork ers (USA) W estern E le c tr ic Co. , Inc. C om m unications W ork ers (CWA) M etropolitan L ife Insurance Co. Insurance W ork ers (IWIU) International H arvester Co. , W iscon sin Steel W orks. P r o g r e s s iv e Steel W ork ers (ind.) Continental Can Co. , P a p erb oa rd and K raft P aper D ivision P a p erm a kers and P a p erw ork ers (UPP) Pulp and Sulphite W ork ers (PSPMW) W eyerh aeu ser Co. , W ood P rodu cts D ivision W oodw orkers (IWA) Tim ken R o lle r Bearing Co. Steelw ork ers (USA) We sting house E le ctric C orp. F ederation of We sting house Independent Salaried Unions (In d .) P ension o r trust agreem ents effective date C ollectiv e bargaining agreem ent expiration date Jan. 1, 1962 N ov. 11, 1964 A p r. 1, 1967 June 1, 1962 Jan. 1, 1959 J a n .1, 1966 July 24, 1967 Sept. 1, 1964 Jan. 1, 1962 N ov. 1, 1968 D ec. 21, 1964 D ec. 31, 1965 Sept. 15, 1969 Jan. 1, 1965 Sept. 1, 1963 Sept. 28, 1971 A p r. 30, 1968 Jan. 27, 1964 June 30, 1965 June 1, 1969 Sept. 19, 1965 O ct. 17, 1966 49 Clause number 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 E m ployer and union W est V irgin ia Pulp and P aper Co. P ap erm a kers and P a p erw ork ers (UPP) A m erica n Seating Co. Auto W ork ers (UAW) (in d .) M artin -M a rietta C orp. , M artin Co. D ivision Auto W ork ers (UAW) (Ind.) C levite C orp. , C leveland Graphite B ronze D ivision M echanics Educational S ociety (in d .) M cln e m e y Spring and W ire Co. Auto W ork ers (UAW) (in d .) International H arvester Co. Auto W ork ers (UAW) (in d.) Alabam a Dry D ock and Shipbuilding Co. M arine and Shipbuilding W ork ers (IUMSW) X e ro x C orp. Clothing W ork ers (ACWA) Milwaukee and Suburban T ran sp ort Corp. Am algam ated T ran sit (ATU) C h ry sler Corp. Auto W ork ers (UAW) (In d .) M ergenthaler Linotype Co. D ivision of E ltra Corp. Auto W ork ers (UAW) (Ind.) and other participating unions G eneral R e fra cto rie s Co. Mine W o rk e r s -D is tr ic t 50 (In d .) M oh asco Industries, Inc. T extile W ork ers (TWUA) Maytag Co. Auto W ork ers (UAW) (Ind.) F afnir Bearing Co. Auto W ork ers (UAW) (Ind.) J. F. M cElw ain Co. New H am pshire Shoe W ork ers (of Nashua) (ind. ) New H am pshire Shoe W orkers of M anchester (in d.) A llis C halm ers M anufacturing Co. Auto W ork ers (UAW) (In d .) Johnson and Johnson Textile W ork ers (TWUA) The Trane Co. M achinists (IAM) Beaunit C orp. T extile W ork ers (UTWA) D eere and Co. Auto W ork ers (UAW) (Ind.) Dana C orp. Auto W ork ers (UAW) (Ind.) F ord M otor Co. Auto W ork ers (UAW) (Ind.) L eeds and N orthrup Co. Auto W ork ers (UAW) (Ind.) P ension o r trust agreem ents effective date C ollective bargaining agreem ent expiration date N ov. 17, 1964 July 1, 1964 Jan. 1, 1964 Jan. 1, 1966 F eb. 5, 1968 F eb. 6, 1968 M ar. 2, 1962 D ec. 22, 1964 Jan. 1, 1958 Sept. 22, 1964 F eb. 8, 1965 F eb. 14, 1971 Oct. 31, 1969 Jan. 1, 1951 N ov. 7, 1967 M ar. 15, 1967 A p r. 30, 1965 N ov. 16, 1964 N ov. 1, 1969 Jan. 1, 1962 N ov. 21, 1964 D ec. 28, 1967 D ec. 1, 1967 O ct. 25, 1967 D ec. 2 i, 1964 80 Clause num ber 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 E m ployer and union G eneral M otors Corp. E le c tr ic a l W ork ers (IUE) C am pbell, Wyant and Cannon Foundry C o . , D ivision o f T extron, Inc. Auto W ork ers (UAW) (In d.) TRW , Inc., M ichigan D ivision Auto W ork ers (UAW) (Ind.) A m e rica n Enka C orp. T extile W ork ers (TWUA) W eyenberg Shoe Manufacturing Co. Boot and Shoe W ork ers (BSW) Champion Spark Plug Co. Auto W ork ers (UAW) (in d.) A rm ou r and Co. Packinghouse W ork ers (UPWA) 1 C lark Equipment Co. Auto W ork ers (UAW) (in d.) M a ss e y -F e rg u so n Inc. Auto W ork ers (UAW) (Ind.) In terco, Inc. B oot and Shoe W ork ers (BSW) K rog er Co. , Houston D ivision R etail C lerks (RCIA) Dayton A rea C onstruction Industry A ssocia tion C arpenters (CJA) Franklin A sso cia tio n of C hicago B ookbinders (IBB) A ss o cia te d Shoe Industries of Southeastern M ass. , Inc. Shoe and A llie d C raftsm en (BSAC) (In d .) W recking C on tra ctors' A sso cia tio n of the City of New Y ork L a b o re rs (LIUNA) A ss o cia te d G eneral C on tractors of A m e rica , A rizon a Chapter and four others Southern A rizon a Building and C onstruction T ra des Council A ss o cia te d G eneral C on tractors o f A m e rica , N orthern and Central C aliforn ia Chapter C arpenters (CJA) H artford G en eral C on tractors A ssocia tion C arpenters (CJA) A ss o cia te d G en eral C on tractors of A m e rica , In c. , Oklahoma Chapter, B uilders D ivision C arpenters (CJA) B u ilders A sso cia tio n of Chicago C arpenters (CJA) P ictu re F ram e Manufacturing Com panies U ph olsterers (UIU) P le a te rs, Stitchers and E m b ro id e rers A ssocia tion L a d ie s1 G arm ent W ork ers (ILGWU) P en sion o r trust agreem ents effective date D ec. 19, 1967 A p r. 1, 1965 Jan. 1, 1965 O ct. 16, 1964 M ar. 20, 1967 July 23, 1965 M ar. 13, 1967 A p r. 16, 1965 M ar. 1, 1964 O ct. 1, 1957 F eb. 1, 1969 A p r. 30, 1968 June 6, 1970 D ec. 31, 1968 June 30, 1969 June 1, 1959 M a r .4, 1953 June 1967 A p r. 23, 1965 N ov. 7, 1952 Jan. 1, 1959 2 Jan. 1, 19 682 F eb. 28, 1970 * The Packinghouse merged with Meat Cutters subsequent to the preparation of this bulletin. 2 Bylaws and regulations. C ollectiv e bargaining agreem ent expiration date 51 Clause num ber 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 E m ployer and union A ss o cia te d G eneral C on tra ctors o f A m e rica , I n c . , B altim ore B uilders Chapter C arpenters (CJA) A ss o cia te d R etail B ak ers o f G reater Chicago B akery and C on fectionery W ork ers (BCW) (In d .) Sheet M etal C on tra ctors A sso cia tion of New Y ork City, Inc. Sheet M etal W ork ers (SMW) D etroit A sso cia tio n o f Plum bing C on tractors and M echanical C on tra ctors A sso cia tio n of D etroit P lu m bers (P P F ) Chicago D ry C leaners A sso cia tio n Laundry, D ry Cleaning and Dye House W ork ers (LWIU) (Ind.) G la ss, Glazing and M ir r o r C on tractors of L os A n geles and V icin ity P ain ters (BPDP) Painting and D ecorating C on tractors of A m e rica , M innesota C ouncil, M inneapolis Chapter, Inc. C arpenters (CJA) Illin ois A sso cia tio n o f B rew eries T ea m sters (IBT) (In d .) V ariou s H otels, Hawaii H otel and Restaurant E m ployees (HREU) A ss o cia tio n o f M aster P ain ters and D ecora tors of the City o f New Y ork P ain ters (BDDP) A ss o cia te d M ilk D e a le rs, Inc. T ea m sters (IBT) (ind. ) B oston D aily N ew spapers T ypograph ical Union (ITU) St. P aul O n-Sale Liquor D ealers H otel and Restaurant E m ployees (HREU) E astern New Y ork C onstruction E m p loy ers, Inc. L a b o re rs (LIUNA) A lam eda County M ilk D ea lers A sso cia tio n and Bay D istrict Ice C ream M anufacturers A sso cia tio n T ea m sters (IBT) (In d .) W estern W ashington D airy T ru st T ea m sters (IBT) (In d .) Southwest O perators A sso cia tio n T ea m sters (IBT) (in d .) Painting and D ecorating E m ployers of Boston P ain ters (BPDP) H eavy C on stru ctors A sso cia tio n o f the G rea ter Kansas City A rea L a b o re rs (LIUNA) D airy Industry, Pennsylvania, New J e rs e y , and D elaw are T ea m sters (IBT) (In d .) P en sion o r trust agreem ents effectiv e date C ollectiv e bargaining agreem ent expiration date Sept. 2, 1965 D ec. 31, I960 Aug. 1, 1968 O ct. 20, 1958 June 13, 1955 July 1, 1952 May 1, 1961 Sept. 13, 1957 D ec. 15, 1964 Jan. 9, 1962 D ec. 31, 1958 D ec. 31, 1969 O ct. 19, 1965 M ar. 2, I960 May 1, 1954 O ct. 17, 1962 M ar. 19, 1957 June 30, 1969 Aug. 1, 1969 Sept. 30, 1968 52 C la u se num ber 108 109 110 111 112 E m p loyer and union M otion P icture S ervice Industry (New Y ork City) Stage E m p loy ees (IATSE) W e st V irgin ia F reigh t Council T e a m s te r s (IBT) (ind. ) A sso c ita te d R etail B ak ers of G re a te r Chicago Bakery and C onfectionery W o rk e rs (BCW ) (In d .) K a n sas City G arm en t M anu factu rers A sso c ia tio n L a d ie s 1 G arm en t W o r k e r s (ILGWU) New England Road B u ilders A sso cia tio n , Inc. Operating E n gin eers (IUOE) P en sion or tru st a greem en ts effective date C o llectiv e bargaining agreem en t expiration date O ct. 1, 1971 June 2 3, I960 D e c. 31, 1960 M ay M ay 3, 1951 1, 1969 The Bulletin 1425 series on major collective bargaining agreements is available from the Superintendent of Documents, U. S. Government Printing Office, Washington, D. C ., 20402, or from the BLS Regional Offices* Bulletin number 1425-1 Title Price Major Collective Bargaining Agreements: Grievance Procedures 45 cents 1425-2 Severance Pay and Layoff Benefit Plans 60 cents 1425-3 Supplemental Unemployment Benefit Plans and Wage-Employment Guarantees 70 cents 1425-4 Deferred Wage Increase and Escalator Clauses 40 cents 1425-5 Management Rights and Union-Management Cooperation 60 cents 1425-6 Arbitration Procedures $1.00 1425-7 Training and Retraining Provisions 50 cents 1425-8 Subcontracting 55 cents 1425-9 Paid Vacation and Holiday Provisions $1.25 1425-10 Fiant Movement, Transfer, and Relocation Allowances $1.25 ☆ U .S. GOVERNMENT PRINTING OFFICE : 1970 O - 382-633 B U R E A U O F L A B O R S T A T IS T IC S R E G IO N A L O F F IC E S Region I Region II 341 Ninth Ave. 1603-B Federal Building Government Center New York, N. Y. 10001 Phone: 971-5405 (Area Code 212) Boston, Mass. 02203 Phone: 223-6762 (Area Code 617) Region III 406 Penn Square Building 1317 Filbert St. Philadelphia, Pa. 19107 Phone: 597-7796 (Area Code 215) R egion IV Suite 540 1371 Peachtree St. NE. Atlanta, Ga. 30309 Phone: 526-5418 (Area Code 404) Region V Region VI 219 South Dearborn St. 337 M ayflower Building Chicago, 111. 60604 411 North Akard St. Phone: 353-7230 (Area Code 312) * Dallas, Tex. 75201 Phone: 749-3516 (Area Code 214) Regions VII and VIII Federal O ffice Building 911 Walnut S t ., 10th Floor Kansas City, Mo. 64106 Phone: 374-2481 (Area Code 816) Regions IX and X 450 Golden Gate Ave. Box 36017 San Francisco, Calif. 94102 Phone: 556-4678 (Area Code 415) * Regions VII and VIII w ill be serviced by Kansas City. ** Regions IX and X w ill be serviced by San Francisco.
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