Fund Counsel signing participation agreementand becoming eligible for health benefits?

[mal]

I recently heard of an instance in which fund

counsel for a health and welfare plan signed

a participation agreement and brought his office

into the plan. Many multi-employer plans include

non-bargained employees, but I have never

heard this extend to service providers.

Is this permissable? What issues are raised?

[Bill Ecklund]

This can be done, provided the trust agreement allows it. Issues raised are: (1) possible breach of fiduciary duty by trustees in allowing this to happen even if the trust agreement allows it on the theory that it still must be in the best intertest of the plan and its particpants. (2) Possible prohibited transacation ( transaction between the plan and party in interest) Need to satisfy either PTE 76-1 or ERISA 408. (3) possible ethical issues under code of professional responsibility. I have seen other cases of service providers being covered by a mulitemployer health and welfare fund, although not very often and I haven't seen one involving a law firm.