Masonry Magazine September 1963 Page. 15
fit Plans
(Continued from page 12)
A number of devices can be used to communicate this information. Some of these are:
Booklets and folders
Letters
Articles in union and employer publications
Presentations at meetings of the union and employer group, which may include use of charts or slides.
Also, many boards of trustees have found that reporting performance of the plan increases the confidence that participants and employers have in it. This may be done through:
Statements of financial position
Reports concerning benefit payments
Individual reports to participants of eligibility status
Participants want to know about their plan. Employers are interested in the performance of the plan funded through negotiated contributions. Trustees are wise to give as much information as possible, in order to maintain a high degree of confidence in the management of the funds, and increase the levels of understanding and satisfaction.
ting Reserves
Trustees are involved in decision making with regard to the investment of the reserves described earlier. The trust instrument sets forth the degree of discretion that the trustees have in investing funds. Government bonds and federally-insured savings bank and savings and loan association accounts have been popular investment mediums for health and welfare plans. However, where reserves are more than adequate for short-term requirements, some have invested in corporate bonds and stocks, mutual funds, and, in a few instances, real estate.
Conforming to Legal Requirements
Different aspects of state and Federal law affect the activities of join labor-management trusts. Such diverse legal areas are involved as tax, labor, trust, contracts, and insurance.
Some of the more significant legal responsibilities of trustees are:
Applying for tax exemption
Filing annual tax reports
Filing reports with the Office of Welfare and Pension Plans of the Labor Department and, where required, state administrative agencies.
Obtaining fidelity bond arrangements as required under Federal law
Conforming decisions to requirements of plan documents and state and Federal laws and regulations
The employing of competent legal counsel will insure the performance of the legal responsibilities of the trustees.
Evaluating Performance
Accomplishing the tasks already discussed is no small achievement in itself. Yet it is only the beginning of a continuing responsibility for the performance of the plan. At periodic meetings trustees evaluate the effectiveness of the on-going administration and the experience of the plan.
A number of factors require this continuing appraisal:
Claims experience different from assumptions
Increases in medical costs
Need for changes in administrative procedures, as shown by experience
New developments in the legal, benefit-planning, and economic areas
(Continued on page 21)
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ONRY September. 1763 15