Election to require local administration of plan providing health, welfare, pension or other similar benefits to members of labor organizations.
1. The Legislature hereby declares that:
(a) Employees who are members of labor organizations are entitled to reasonable assurances that money they contribute for plans which provide health, welfare, pension or other similar benefits is being used for the intended purpose.
(b) Local labor organizations cannot control the use of money contributed for such plans if the plans are managed and operated in another state for labor organizations of which the local organization is an affiliate.
(c) A local labor organization should be entitled to require local administration of such plans if the organization so elects.
2. Nothing in this section:
(a) Relates to any plan for providing the benefits described in paragraph (a) of subsection 1. This section relates only to the determination by a local labor organization to establish a locally administered plan for its members.
(b) Purports to impair any obligation under an existing contract.
3. A labor organization whose members are employed in this state may elect to require administration in this state of any plan for providing health, welfare, pension or other similar benefits for its members. If such a plan is being administered on behalf of an organization of which the local labor organization is an affiliate, the local organization may elect to discontinue its members’ contributions to the plan and establish a separate plan for its members which is administered by a trustee in this state.
Last modified: February 25, 2006