Benefit Fund Trustees
Taft-Hartley benefit funds are cornerstones in employer-union relationships. A board of trustees, comprised equally of labor and management trustees, is responsible for the administration and oversight of pension, health and welfare, training, and other trust funds. Trustees are expected to understand and make regular decisions on plan funding, investments, schedules of benefits, participant appeals, and a variety of other issues. Trustees may also face issues such as fund mergers, benefits restructuring, and changes in fund service providers.
MGI offers employers a unique expertise in employee benefit fund matters. MGI professionals often serve directly as management appointed professional trustees on pension, health and welfare, vacation, training, and other Taft-Hartley trust funds. A professional trustee brings a level of experience and expertise to the trust that supports all trustees and fund professionals in fulfilling their duties. The professional trustee communicates information about fund business to the appointing authority (i.e. the employer or employer association) on a regular basis, typically at board of directors or membership meetings in person or via a written report. The professional trustee will alert the employer(s) about potential concerns or issues with the fund and educate them about how fund issues impact their business.
MGI also serves clients by acting as a trustee advisor to management trustees on the various issues facing the fund. The trustee advisor may attend fund meetings regularly or upon special request --the client directs the advisor's level of service. If the client desires a high level of service, the advisor might function similarly to a non-voting trustee by attending all trust meetings, actively working with the trustees on fund issues, and providing detailed reports to the appointing employer(s). If the client requires support regarding a single issue only, the advisor might consult privately with the management trustee(s) and/or the contributing employer(s) and advise them as necessary to resolve the issue.
It is possible that, in specific arrangements and with the support of the board of trustees, the fund itself could pay for the expense associated with a professional trustee or trustee advisor. To discuss these possibilities please contact Bill Grimm or John Nesse directly.