Frequently Asked Questions
FAQ: IBEW Trust Income Replacement for Long Term Disability
Simply put, its income replacement for IBEW Local Union members only, when they cannot work. Several IBEW LU's formed a Trust several years ago for income replacement for long term disability (LTD) LU members. It’s a group plan but not a bargained benefit, its purchased by the individual member and is bank draft from their personal account, or credit card and no payroll deduction, no physicals, no paperwork.
(How often do you hear about members who have been injured, on or off the job and can’t work. This plan is income replacement when you can’t work due to illness or injury.)
NO, this plan provides Long Term income replacement. Up to age 65 or normal retirement age.
This insurance plan pays the member directly, up to 60% of their income, tax free, up to age 65 (or normal retirement) for long term disability resulting from an injury, accident or illness on or off the job.
Members cannot be turned down for this insurance (if actively working at time of application) as there are no health questions, no physicals, as long as the member enrolls at their first opportunity.
Members can choose to insure any amount of income but cannot exceed 60% of their income and cannot exceed $150,000.00. (Income is based on regular hours and does not include overtime or bonuses.)
This plan is not offered by your employer. This plan is offered by your Local Union and there is no payroll deduction. You are in control of this plan and can cancel this plan at any time. (members are billed by bank draft or credit card)
All members’ premiums are the same and are pre - set according to the amount of you choose.
If a member is terminated from a job, they can continue this insurance plan for a maximum of up to 60 days after termination. However this plan remains in place if the member gets another job within 60 days. (Member is required to self-report when terminated and must terminate this plan is not employed within 60 days) Members may enroll in this plan once they are employed again.
Members may cancel the plan at any time by written notification or by not paying the required premium. (The members are not locked into the plan)
Business Managers FAQs
This IBEW insurance plan is a fully insured trust and is not available elsewhere, as it is only available via this trust. This plan provides some specific options not offered on any other plan.
This plan is available to both Inside and Outside Local Union members.
Trustees require the LU to offer the plan to all members. Not all members are required to purchase the plan but there is a member minimum of 10% of eligible required. Eligibility must be determined prior to offering the plan. The 10% of eligible rule is not a trustee rule, it’s an insurance company rule. The local union does not pay for enrollment information or enrollment procedures.
There is no cost to LU but the LU will need to provide information to make enrollment possible.
The trust will provide all enrollment communications for Local Union web page, Newsletter, Email blast, Text message, Phone message and will provide all enrollment via online, phone etc.
IBEW LU that chooses to participate will have one voting seat on the board. Most board meetings will be online/phone.
First, any new member can enroll if they do so within 60 days of their hire date.(This is the first date they begin working) Second, for those members who missed their first opportunity they can still enroll if they do so within 60 days of a new hire date. (For instance, they get laid off for more than six months, they can enroll as a new hire if they sign the application within 60 days of their new hire date and make sure the new date is on the application. Third, Reinstatement: The individual reinstatement provision is 6 months which allows someone on the plan to come back on the plan without having to satisfy the new hire waiting period of 60 days if they become eligible again within 6 months of losing eligibility. Fourth, the trust has open enrollment on occasion, which is when members who missed their first opportunity can enroll. However the open enrollment must be approved by the insurance carrier. It’s not likely the insurance carrier will approve an open enrollment every year so the next open enrollment is expected to be the Fall of 2022 but this has not been approved to date. I will let the trustees know when the next open enrollment is approved.
