mal Posted October 25, 2019 Report Share 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. Link to comment Share on other sites More sharing options...
GBurns Posted October 27, 2019 Report Share 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 George D. Burns Cost Reduction Strategies Burns and Associates, Inc www.costreductionstrategies.com(under construction) www.employeebenefitsstrategies.com(under construction) Link to comment Share on other sites More sharing options...
mal Posted October 30, 2019 Author Report Share 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. Link to comment Share on other sites More sharing options...
GBurns Posted November 7, 2019 Report Share Posted November 7, 2019 mal Point me to a few? George D. Burns Cost Reduction Strategies Burns and Associates, Inc www.costreductionstrategies.com(under construction) www.employeebenefitsstrategies.com(under construction) Link to comment Share on other sites More sharing options...
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