Benefits and Advantages of a Benefit Fund

Given the same benefit dollars, Funds virtually always provide the members a superior benefit program when compared to employer operated benefit programs. The primary purpose of a Fund is to make the most out of every available dollar. Fund trustees, having a vested interest in their benefits, usually do a far better job of shopping for benefits and negotiating with insurance carriers. Funds eventually self-fund many of the benefits, thereby removing the cost of risk from providing benefits.

Trustees have the power to change benefits without having to wait for the union contract to expire. This flexibility allows a Fund to tailor its program to the needs of the Fund’s beneficiaries and is one of the main advantages of operating a Fund.

In addition to economic rewards, a Fund will also provide the union with a number of organizational benefits. The Fund is a product of the local’s negotiating efforts, and the benefits actually come from the union, through the union’s Fund. This allows for greater recognition of the union & the programs and services it provides to members.