A Union Health Fund currently offers supplemental life insurance to the participants of contributing employers. The union now wishes to obtain this supplemental life insurance through another fund however, the initial health fund will still be collecting the contributions from the employer.

Does there need to be some agreement, like a participation agreement between the health fund collecting the contributions and the employers addressing the fact that the health fund will be collecting the contributions and turning them over to the other fund for insurance?

Any help is appreciated. Thanks

Further to my previous post: Is there any violation (ERISA, Taft Hartley Act, etc.) to have this arrangement without anything in writing signed by the employers such as a participation agreement or an amendment to a CBA?

I think it would depend on the current terms of the CBA. I would imagine that the selection of an insurance carrier would be at the discretion of the board of trustees of the fund which would be comprised of both union officials and employer representatives.

In this situation, however, the contributions from the employer are being transferred
1. from the employer to the welfare fund and
2. from the welfare fund to another Fund who will then purchase insurance.

Part 2 is not provided for in the current CBA.

What is the "other fund?"