IUOE Benefit Funds of Eastern PA and DE

Delinquency

All remittance reports and contributions are due no later than the 25th day of the month following the month for which they are attributable. A required contribution will be considered delinquent if not received in the Funds office by the 25th.

Interest Rate

If a delinquent contribution is not paid by the last day of the month in which it is due, interest shall start to accrue on the delinquent amounts at the rate of 10% per annum from the 1st day of the next month.

Written Notice

If delinquent contributions are not paid by the end of the month in which they are due, the Trustees, through the Joint Funds Office, will send written notice to the delinquent employer advising the employer that its contributions to the Plan are delinquent and that it is subject to interest on the delinquent contributions at the rate of 10% per annum and to sue for collection thereof.

Referral To Counsel

If delinquent contributions and interest are not received within 60 days of the date of the written reminder notice, the matter shall be referred to Counsel of the Joint Funds with instructions to proceed to collect same, unless prior arrangements for collection of contributions and interest has been agreed to by the Collection Manager, with the approval of Joint Funds Counsel. If the matter is referred to Counsel for collection, Counsel will send written notice to the delinquent employer of the Joint Funds’ intent to sue.

Litigation

Should a lawsuit be filed, the delinquent employer will be liable to the Joint Funds for the principal amount due plus interest at the rate indicated above, plus 10% liquidated damages, plus counsel fees and costs of the litigation plus audit fees, if necessary. Should the employer, after written notice is received from the Joint Funds’ Counsel, then  remit the contributions before a complaint is filed, it will nevertheless be liable for 10% per annum interest and Joint Funds’ Counsel fees and costs of litigation.

Delinquency Found By Fund Audit

Upon completion of the audit, the Trustees, through the Joint Funds Office, will send written audit notice to the delinquent employer of the delinquent amount plus the interest charges in the amount of 10% per annum.

The delinquent employer shall be notified that if such delinquent contributions and interest are not paid within thirty (30) days after the date of the written audit notice, the matter will be referred to Counsel for the Joint Funds with instructions to proceed to collect the delinquent amount plus the 10% interest plus liquidated damages of 10%.

Underreporting

If the audit reveals an underreporting of funds by 10% or more for the period encompassed by the audit, the audited employer shall be required to pay the Joint Funds ‘ cost of auditing, irrespective of whether suit is filed.

Withholding of Employees

Should an employer continue delinquent in its reports and payments as above mentioned, the Union will have the right to withhold employees covered by the Collective Bargaining Agreement from the employer, and the employer will, nevertheless, be obliged to continue the employees’ wages at the guaranteed rate until such time as delinquent reports and payments have been made in accordance with the Collective Bargaining Agreement, provided, however, that

• No employees shall be withheld from an employer where the employer has posted a bond and/or cash to secure its obligations to make reports and payments to the Joint Funds as above mentioned; provided that the amount of the bond so posted and/or cash deposited as security is sufficient to satisfy all debts, arrearages, delinquencies due the Joint Funds.
• No employees shall be withheld from an employer until:
  • the Office of the Joint Funds has first communicated with employer apprising it of the delinquency or arrearage, and
  • in the event that the said employer fails to satisfy all if its obligations to the Joint Funds after receiving notification from the Office of the Joint Funds the Collection Manager shall contact the employer and make arrangements for the immediate payment of all monies due the Joint Funds.
  • in the event the employer shall not have satisfied its obligation, debts, arrearages or delinquencies to the Joint Funds after having been contact by the Collection Manager, the Union shall have the right to withhold its employees as described above.

Posting Bond

In addition to the preceding, the Trustees and/or the Administrator of the Joint Funds reserve the right to require a delinquent employer to post a bond in the amount of $25,000 and/or make its contributions on a weekly basis.