What is a Taft-Hartley Fund?
A Taft-Hartley fund is a multiemployer benefit plan created through collective bargaining between a union and two or more employers, run by a joint board of trustees with equal union and employer representation, that provides health, welfare, or pension benefits to union members.
Taft-Hartley funds, also called multiemployer plans, cover workers in industries where people move between employers, such as construction, entertainment, hospitality, and transportation. Because the fund is shared by many employers, members keep their coverage as they move from job to job within the union. Health and welfare funds and pension funds are the two main types, and both are governed by ERISA.
How a Taft-Hartley Fund Works
- A collective bargaining agreement sets the contribution each employer pays, usually per hour worked.
- Contributing employers send the fund regular remittance reports listing members and hours.
- The fund office or contract administrator applies eligibility rules, such as an hour bank, to decide who is covered.
- Eligibility then goes out to the fund's carriers, pharmacy benefit manager, networks, and other vendors.
The Data Challenge for Funds
A fund sits between many contributing employers and many vendors. Inbound, remittance reports arrive from each employer in a different layout, from payroll exports to spreadsheets. Outbound, the fund owes an eligibility file to every carrier and point solution it offers, each in that vendor's format. Funds also need to see claims and enrollment across all their carriers, which no single carrier can provide.
Taft-Hartley Funds and Integrate.io
Integrate.io brings employer and carrier files into the fund's systems and sends eligibility to every vendor, without custom code for each connection. See data integration for Taft-Hartley funds.
FAQ
Frequently asked questions
Clear answers to the questions teams ask when evaluating Integrate.io.
Why is it called a Taft-Hartley fund?
The name comes from the Labor Management Relations Act of 1947, known as the Taft-Hartley Act. Section 302 of the Act allows employers to pay into a union-related benefit fund only if the fund is held in trust and managed by trustees representing labor and management equally.
How do members qualify for coverage in a Taft-Hartley health fund?
Eligibility usually depends on hours worked for contributing employers. Employers report hours and contributions to the fund, often monthly, and the fund applies its rules, such as an hour bank, to decide who is covered in the coming period.
Who administers a Taft-Hartley fund?
Some funds run their own fund office with in-house staff. Others hire a third-party contract administrator. Either way, the administrator collects employer contribution reports, determines eligibility, and coordinates with carriers, pharmacy benefit managers, and other vendors.
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