mal 0 Report post Posted October 25, 2019 A "Supplemental Unemployment Benefit Plan" is organized under 501(c)(9) to provide life, sickness, accident and similar benefits. It is in the construction trades and vast majority of claims paid are due to periods of temporary unemployment. It also pays benefits in cases of death, disability, etc. Can this 501(c)(9) VEBA pay a stipend in connection with bereavement leave? This would seem to satisfy the regulations by protecting against a contingency that would interrupt a member's earning power, but I cannot find anything that answers the question one way or another. Thanks in advance. Share this post Link to post Share on other sites
GBurns 20 Report post Posted October 27, 2019 I thought that SUB Trusts were under 501 (c)(17) and could only pay unemployment benefits: https://www.irs.gov/charities-non-profits/other-non-profits/supplemental-unemployment-benefits-trust-501c17 Whereas a 501(c)(9) cannot be used for SUB payments. https://www.irs.gov/charities-non-profits/other-non-profits/voluntary-employee-beneficiary-association-501c9 To answer your question, a stipend for bereavement leave should be acceptable if it is included as a benefit under your Welfare Benefits Plan's listing of covered welfare benefits. See Treas Reg 1.162-10 https://www.govinfo.gov/content/pkg/CFR-2015-title26-vol3/pdf/CFR-2015-title26-vol3-sec1-162-10.pdf Share this post Link to post Share on other sites
mal 0 Report post Posted October 30, 2019 Most of the construction industry multi-employer "SUB" plans are organized under (c)(9) so they can provide a wider array of benefits than the (c)(17) arrangements. I just cannot find anything on bereavement leave specifically. Share this post Link to post Share on other sites
GBurns 20 Report post Posted November 7, 2019 mal Point me to a few? Share this post Link to post Share on other sites
