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Contributions to the Fund by employers are required under the terms of their respective collective bargaining agreements.

Employer contributions are remitted to the Fund to support all benefit programs and to satisfy the administrative expenses of the Fund.

The Fund recognizes that where the domestic partner is not a dependent of the participant, the value of the domestic partner’s health coverage is income and wages to the employee participant.The Fund’s documents have been amended to provide that domestic partner coverage includes payment of the employer and employee portions of the FICA tax and the payment of the FUTA tax on the coverage. Thus, the Fund includes as part of the value of the coverage for tax purposes an amount equal to the gross-up.The Fund will “gross up” the value of the coverage in conformity with Rev. The Fund uses, as the value of the domestic partner coverage, the projected fair market value of the Fund’s health care coverage, as determined on an annual basis for purposes of determining the rates charged for COBRA coverage under section 4980B(f).Employers also report an employee’s termination of employment to the Fund.The Fund conducts audits of the employers to verify that contributions are made in accordance with the terms of the respective collective bargaining agreements.

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