|
|
|
Word
|
Definition
|
|
|
|
MEWA or "Multiple Employer Welfare Arrangement
|
[The following is from the DOL] Once it has been determined that an ERISA-covered welfare plan provides benefits to the employees of two or more employers, a determination must be made as to whether any of the exclusions from MEWA status apply to the arrangement. Pursuant to ERISA Section 3(40)(A), three types of arrangements are specifically excluded from the definition of "multiple employer welfare arrangement," even though such arrangements may provide benefits to the employees of two or more employers. Each of these types of arrangements is discussed in general terms below.
1. Plans maintained pursuant to collective bargaining agreements
Section 3(40)(A)(i) specifically excludes any plan or other arrangement that is established or maintained "under or pursuant to one or more agreements which the Secretary finds to be collective bargaining agreements."
This exception generally includes the type of plans commonly referred to as "multiemployer plans," a term which in some instances has been confused with the term "multiple employer welfare arrangements." Multiemployer plans, as distinguished from MEWAs, are established and maintained under collective bargaining agreements negotiated between unions and employers or an association of employers, and, in accordance with the Labor Management Relations Act, employer contributions to the plans are held in a trust that is jointly administered by labor trustees (appointed by the union) and management trustees (appointed by the employers or employer association).
In general, a collective bargaining agreement is an agreement or contract that is the product of good faith bargaining between bona fide employee representatives and one or more employers. Determinations as to whether a particular document is the product of good faith bargaining between bona fide employee representatives and one or more employers can be made only upon an examination of relevant facts and circumstances, taking into consideration the pertinent provisions of the National Labor Relations Act, 29 U.S.C. § 151 et seq., and the cases decided thereunder, as well as other relevant laws.
For purposes of Section 3(40), an employee benefit plan will generally be considered to be established or maintained "under or pursuant to a collective bargaining agreement" if the agreement is a bona fide collective bargaining agreement and the agreement provides, directly or indirectly, for establishment or maintenance of a plan for the benefit of employees represented by a union in the collective bargaining process.
While no one item is determinative, factors generally indicative of a bona fide collective bargaining agreement may, among others, include: the agreement provides for wages, benefits, working conditions or resolution of grievances; the agreement is executed by representatives of a labor organization/union which is either certified by the National Labor Relations Board or is elected by the majority of employee of signatory employers as the exclusive bargaining representative of the employees; neither the agreement nor of the labor organization/union was promoted by the employer(s); and the agreement is the product of good faith bargaining.
|
|
|
|
|
|
|
|
MEWA Welfare Arrangement
|
MEWA or "Multiple Employer Welfare Arrangement: The term "multiple employer welfare arrangement" means:
1. an employee welfare benefit plan (as defined below), or
2. any other arrangement (other than an employee welfare benefit plan)
• which is established or maintained for the purpose of offering or providing [welfare plan benefits]
• to the employees of two or more employers (including one or more self-employed individuals), or to their beneficiaries.
[except that such term does not include any such plan or arrangement pursuant to collective bargaining agreements, and certain limited exceptions] See full explanation here.
|
|
|
|
|
|
|
|
Multiemployer Plan
|
Multiemployer Plan: A multiemployer plan is a collectively bargained plan maintained by more than one employer, usually within the same or related industries, and a labor union. These plans are often referred to as "Taft-Hartley plans". (ERISA Secs. 3(37) and Sec. 4001(a)(3)) Multi-employer plans are excluded from the definition of MEWAs:
|