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Bereavement Leave under VEBA?


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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. 

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I thought that SUB  Trusts  were under 501 (c)(17)  and could only pay unemployment benefits:


Whereas a 501(c)(9) cannot be used for SUB payments.


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 


George D. Burns

Cost Reduction Strategies

Burns and Associates, Inc

www.costreductionstrategies.com(under construction)

www.employeebenefitsstrategies.com(under construction)

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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. 

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