Assistance with Government Compliance
Government regulations concerning benefit funds can be complex and the Affordable Care Act (ACA) and the Pension Protection Act of 2006 (PPA) have made it more complicated. This section is intended to give you information you may need for your own compliance needs. Of course, you should always rely on your legal counsel for advice, but the 32BJ Benefit Funds wants to help if we can.
Health
Are the benefits provided by the 32BJ Health Funds ACA compliant?
All plans intended for full-time workers are generally compliant. Click on the relevant link below for more detail:
Will the 32BJ Health Fund give me information needed to do my ACA reporting such as 1095-C forms?
We are waiting for final regulations, but it is our intent to work with employers subject to the reporting requirements to facilitate reporting in January 2016 for the 2015 calendar year.
What do I do if I get a Medicare Secondary Payer recovery demand letter from CMS?
The Health Fund responds to these letters. If you receive a recovery demand letter from the Centers for Medicare & Medicaid Services (CMS) or from one of their collection firms, please forward the letter with the employee’s name and social security number to Elizabeth Mendez, Manager, Benefits Vendor Management, at the Health Fund by email to emendez@32bjfunds.com or by FAX to 212-388-3161.
Pension
32BJ members participate in a variety of Pension Funds. The following funds collect contributions through ESS and are covered by this website. Please click on the link to the pension fund to which you contribute:
This pension fund covers commercial and residential workers in New York City (Program A), Long Island (Program B) and New Jersey (Program C).
Is the 32BJ Pension Fund in the Red Zone?
Yes, it is. Under the Pension Protection Act of 2006, the Plan has been in the Red Zone (Critical Status) since the market downturn in 2008-9. The attached Critical Status Notice describes the current zone status.
Does the Pension Fund have a Rehabilitation Plan?
Yes, the trustees of the 32BJ Pension Fund adopted a Rehabilitation Plan (RP) which includes annual contribution increases. The Plan is expected to emerge into the Green Zone in 2021, ahead of schedule. Click here for the Rehabilitation Plan.
What are the notices you send me?
The 32BJ Pension Fund is required to send Contributing Employers the Annual Funding Notice and the Notice of Zone Status. These are sent together no later than 120 days after the end of the plan year, typically at the end of October. Click here for the most recent 32BJ mailing. In addition, we are required to send Contributing Employers the Multiemployer Plan Summary Report within 30 days of filing the 5500. Click here for the most recent 104(d) notice.
Am I required to pay withdrawal liability if I withdraw from the union, lose my accounts or sell my building?
You may be subject to withdrawal liability. The rules are complex; if you have questions about the Plan’s rules or if you would like an estimate of your potential withdrawal liability, contact Employer Service at 212-388-3354. There is a fee of $1,800 for an estimate.
What information do I have to report on my financial statements?
You should rely on your accountant to conform to FASB guidelines, but the 32BJ Pension Fund has prepared a FASB ASU 2011-09 to assist your accountant.
This pension fund covers residential workers in the Bronx and Westchester, commercial workers in the Hudson Valley and some service trades and country clubs.
Is the North Pension Fund in the Red Zone?
Yes, it is. Under the Pension Protection Act of 2006, the Plan has been in the Red Zone (Critical Status) since the market downturn in 2008-9. The attached notice describes the current zone status.
Does the North Pension Fund have a Rehabilitation Plan?
Yes, the trustees of the North Pension Fund adopted a Rehabilitation Plan (RP) which includes annual contribution increases. The Plan is on track to emerge into the Green Zone by January 1, 2025 as required. Click here for a copy of the RP.
What are the notices you send me?
The North Pension Fund is required to send Contributing Employers the Annual Funding Notice and the Notice of Zone Status. These are sent together no later than 120 days after the end of the plan year, typically at the end of April. Click here for the most recent 32BJ mailing. In addition, we are required to send Contributing Employers the Multiemployer Plan Summary Report within 30 days of filing the 5500. Click here for the most recent 104(d) notice.
Am I required to pay withdrawal liability if I withdraw from the union, lose my accounts or sell my building?
You may be subject to withdrawal liability. The rules are complex; if you have questions about the Plan’s rules or if you would like an estimate of your potential withdrawal liability, contact Violsa Perashi at 212-388-3785. There is a fee of $2,250 for an estimate.
What information do I have to report on my financial statements?
You should rely on your accountant to conform to FASB guidelines, but the 32BJ North Pension Fund has prepared a FASB ASU 2011-09 to assist your accountant.
This pension fund covers cleaners and other 32BJ members in the Broadway League theaters and other cultural and sports venues such as Lincoln Center, Madison Square Garden, and the stadiums.
Is the 32BJ/Broadway League Pension Fund in the Red Zone?
No, under the Pension Protection Act of 2006, the Plan is considered neither Critical nor Endangered and is thus considered in the Green Zone.
What are the notices you send me?
The 32BJ/Broadway League Pension Fund is required to send Contributing Employers the Annual Funding Notice. It is sent no later than 120 days after the end of the plan year, typically at the end of April. Click here for the most recent 32BJ mailing. In addition, we are required to send Contributing Employers the Multiemployer Plan Summary Report within 30 days of filing the 5500. Click here for the most recent 104(d) notice.
Am I required to pay withdrawal liability if I withdraw from the union, lose my accounts or sell my building?
You may be subject to withdrawal liability. The rules are complex; if you have questions about the Plan’s rules or if you would like an estimate of your potential withdrawal liability, contact Employer Service at 212-388-3354. There is a fee of $1,500 for an estimate.
This pension fund covers commercial cleaners in Connecticut and certain workers at authorities, such as the Waterbury Housing Authority.
Is the 32BJ Connecticut Pension Fund in the Red Zone?
No, under the Pension Protection Act of 2006, the Plan is considered neither Critical nor Endangered and is thus considered in the Green Zone.
What are the notices you send me?
The 32BJ Connecticut Pension Fund is required to send Contributing Employers the Annual Funding Notice. It is sent no later than 120 days after the end of the plan year, typically at the end of April. Click here for the most recent 32BJ mailing. In addition, we are required to send Contributing Employers the Multiemployer Plan Summary Report within 30 days of filing the 5500. Click here for the most recent 104(d) notice.
Am I required to pay withdrawal liability if I withdraw from the union, close my business or lose my accounts?
You may be subject to withdrawal liability. The rules are complex; if you have questions about the Plan’s rules or if you would like an estimate of your potential withdrawal liability, contact Employer Service at 212-388-3354. There is a fee of $1,800 for an estimate.
Supplemental Savings and Retirement Plan (SRSP)
Do I have to withhold 401(k) contributions from my employees’ pay?
Yes, unless your collective bargaining agreement specifically excludes 401(k) deferral, if your eligible employee gives you a deferral form. during an open enrollment period you must withhold pretax 401(k) and remit to funds as soon as possible (no later than 7 days after the date the amount is deducted from payroll).
Can employees start deferring or change deferrals at any time?
New hires can start deferring when they first become eligible (typically after 6 months of employment unless your Collective Bargaining Agreement provides otherwise). You must offer employees the opportunity to start deferring or to change the amount of deferral each December so that changes occur each January 1. In addition you may permit your eligible employees to change their deferral elections at more frequent intervals (such as weekly, monthly or quarterly) provided that all of your employees are given the same opportunity. Employees can stop deferring at any time.
Can employees defer any amount?
Your employees can defer any whole dollar amount with a $10 a week minimum up to the IRS limits.
Is there a maximum amount an employee can defer?
The IRS sets the maximum amount that can be deferred in each year. For 2015, the maximum is $18,000 for the year with an allowed “catch up contribution” of $6,000 for participants who will turn age 50 or older in 2015. Mercer will not accept amounts over the limit. Your payroll system should also be set up to stop deferrals when the limits are reached.
Am I responsible for non-discrimination testing?
The SRSP performs non-discrimination testing each year as required by law. In order for the SRSP to perform the test, you are required to send the SRSP end of year compensation data for all employees eligible for 401(k) deferrals, whether or not they actually defer. You can upload the information in the ESS system.