Can Fund pay full value of PrevailingWage package as "lost wage compensation"?

[mal]

Under ERISA 408©(2) funds are permitted to

pay "reasonable compensation" to trustees who suffer

a loss in wages while attending meetings, conferences,

etc.

My understanding of this section of ERISA as well

as the regulations is that the plan may compensate

the trustee for the full value of his missed time...both

wages AND benefits.

Assuming the fund does not directly contribute

to the applicable fringe benefit plans,

is it "reasonable" to pay the trustee the full value of the

wage and benefit package? Keep in mind that

the plan can document the Davis-Bacon rates through

the DOL or applicable state agencies.

[GBurns]

Is this a Trustee of the Fund or a trustee of the Plan?

A Trustee is not necessarily an employee of an involved employer (Plan Sponsor), the Plan or the Fund. A trustee does not have wages but might have a loss of income. Only employees have wages. If the Trustee also happens to be an employee you still have 2 separate issues.

If it is allowed by the PD etc to reimburse Trustees for loss of income and expenses etc then you have to verify the loss etc by whatever means possible and a certified payroll would be a good source. An employee's wages is not limited to either the DBRA or other PW rates, it is only a minimum rate.

In any case it should be stated in the PD as to who is responsible for these expenses. It might be the Plan Sponsor or Plan Administrator and not the Plan or Fund, terms which you use interchangeably.

[mal]

These trustees are union members who

are not receiving full time pay from the

plan, the union or any contributing employer.

They spend 98% of their time working with

their tools. Thus, when they attend a fund

meeting, they lose wages and all fringes.