Buy-Up Option
The Welfare Fund offers a special provision for your added protection. During some Work Periods you employer's contributions to the Fund may not be sufficient to provide the Welfare Fund coverage you want. To assure that you and your family have the coverage you feel you need, especially during periods of low employment or disability, you may have the option to make voluntary contributions in order to Buy- Up to the Benefit Level you desire.
| The Fund Office will notify you if you become ineligible for benefits. You may have the option to pay for the Benefit Level- and coverage- you need. |
The Fund office will notify you if you are eligible to Buy- Up. If you are eligible, you may make voluntary contributions to increase your Benefit Level for any Work Period in which your employer contribution is insufficient for the Benefit Level you want.
The Buy- Up option is limited to 18 consecutive months. Once you have made voluntary contributions for 18 consecutive months your eligibility for the Buy- Up option will cease. You may be eligible to Buy- Up again once you have established P1 coverage through hours worked for a minimum of nine consecutive months.
| The Buy- Up Formula |
|
|
|
| Part 1 |
Required Work Hours for Desired Benefit Level
|
- Actual Credited Work Hours
|
= Eligibility Hours Short
|
| Part 2 |
Eligibility Hours Short
|
x $1.00
|
= Monthly Buy- Up Charge (to a maximum of $800)
|
Example
Assume you are credited with 250 Work Hours for the Work Period from October 2004 to September 2005. Therefore, from January through March 2006, you will be eligible for the P4 Benefit Level. However, assume you have the option to Buy- Up to either Benefit Level P1 or P3 and you want to Buy- Up to level P1.
Your monthly contribution of $800 (the maximum monthly Buy- Up charge, even if the charge would exceed $800) would be calculated as follows:
| Part 1 |
1,200 (Required Work Hours for Desired Benefit Level) |
- 250 (Actual Credited Work Hours) |
= 950 (Eligibility Hours Short)
|
| Part 2 |
950 |
x $1.00 |
= $800 (maximum Buy-
Up charge)
|
Benefit Level to Which You May Buy- Up
The Fund office will notify you if are eligible to Buy- Up (see Schedule of Notification and Payment Due below). Choose your Buy- Up option carefully. You may not Buy- Up more than one level above the Benefit Level for which you were last eligible, unless it is an "initial Buy- Up." Your future Buy- Up options will depend on the choice you make intially and with each subsequent Buy- Up opportunity.
|
If you are eligible for Benefit Level
|
You may be allowed
|
to Buy- Up to:
|
|
|
P1 |
P3 |
|
P3
|
x
|
|
|
P4
|
x
|
x
|
Schedule of Notification and Payment Due
Quarterly statements containing eligibility and contribution information are provided before each Benefit/Eligibility Quarter. If you are eligible for the Buy- Up option, you will receive a Buy- Up notice in the mail. You must make your payment by the indicated due date. Coverage will take effect in the corresponding Benefit/Eligibility Quarter.
| Work Period |
Quarterly Statement Mailed |
"Buy-Up" Notices in Mail |
Payment Due |
Benefit/Eligibility Quarter |
| October- September |
November 15 |
December 5
January 5
February 5
|
December 25
January 25
February 25 |
January
February
March
|
| January- December |
February 15 |
March 5
April 5
May 5 |
March 25
April 25
May 25
|
April
May
June |
| April- March |
May 15 |
June 5
July 5
August 5
|
June 25
July 25
August 25 |
July
August
September |
| July- June |
August 15 |
September 5
October 5
November 5 |
September 25
October 25
November 25 |
October
November
December |
How to Make a Payment
You must be a United States resident in order to Buy- Up. Your contribution must be paid by the due date prior to the month in which your eligibility would start. You may make your contribution by check or money order payable to the Welfare Fund. Or, you may pay in cash at Fund Office when a receipt can be provided.
Please note, if your check is returned by the bank for insufficient funds, you will be charged a service fee-- and you may lose your eligibility for the Buy- Up option if there is not enough time to resubmit your check before your payment due date.
Your Buy- Up contribution can be made only for the Benefit/Eligibility Quarter immediately following the Work Period that your employer contributions were insufficient for the Benefit Level you wanted. You may not pay in advance for future Benefit/Eligibility Quarters.
