Hour Bank Issues

[Guest ooota]

The health & welfare plan requires an individual to work 375 hours per quarter to be eligible for coverage the next quarter. Any excess hours are put into an hour bank. If a participant retires with 600 hrs in his hour bank, the participant will be covered for one quarter only. The remaining 225 (600 - 375) hours will be lost to the participant in that it falls below the minimum of requirement of 375 hours. Can the plan eliminate a retiree's hours in an hour bank that fall below the threshold limit of 375?

If a retiree returns to work, can the fund require the retiree to fulfill the initial eligibility requirements of the plan?

If a participant's membership in the fund has terminated and the participant elects and pays for COBRA for a full 18 months, at the end of that 18 months, can the fund set the participant's hour bank to zero and require the participant to fulfill the initial eligibility requirements of the plan?

Thanks in advance for your help.

[RTK]

I think yes in each case. Seems a little harsh though. An alternative is not to forfeit the hour bank credit for some period after last contributions made, at least for participants seeking work covered by the plan.

If the plan intends to change the hour bank rule for already credited hours, you may want to look at the amendment section for the right to make such an amendment.

[mal]

I would take a hard look at the language in

the SPD/Plan document. Assuming they

are clear on this issue, hour/dollar banks

are not vested rights. Most of our SPD's make

it crystal clear that the participant has no

vested stake in the credits and that the Trustees

may vote to eliminate the banks at any time.