Types Of Benefits
The Security Benefit Fund provides benefits for: periods of lost wages,financial assistance benefit, housing benefit, severance benefits, scholarship benefits, term life insurance benefits and funeral and death benefits. Many of these benefits are subject to tax withholding and year end tax reporting.
A detailed description of each benefit, the documentation needed for payment, and the applicable tax reporting is explained below.
Student Loan Repayment Benefit
The Student Loan Repayment Benefit covers all employees, spouses and children who are responsible for the re-payment of student loans to pay for enrollment in an accredited university, college, technical institute, junior college, nursing, medical, dental, or law school, and similar institutions as determined by the Trustees.
Covered expenses under this section include, but are not limited to loan principal, interest charges, late fees, and legal counsel fees.
The employee must apply for each student loan repayment they are requesting reimbursement for; provided, however, that multiple payments towards the same loan, or group of loans with the same provider or servicer, may be consolidated into a single application.
Your application must include proof of payment from the Lending Agency and must state the name of the student. In addition, other supporting documentation such as receipts, invoices, canceled checks, credit card statements, may be requested by the Trustees as proof of payment of covered expenses.
Just like every other benefit offered under the Plan, the Board of Trustees reserves the right to request additional documentation or evidence to determine whether you are entitled to this benefit.
Wage Replacement Benefits
You can apply for reimbursement for periods that you may suffer a loss of wages due to unemployment, disability, workers’ compensation, or jury duty, job shut-down, military service and inpatient substance abuse.
The amount of reimbursement for periods of lost wages is equal to your wage rate for the period, less the amount of the payment you receive from any other source.
Unemployment
The New York State Department of Labor (NYSDOL) issues unemployment benefits via a Chase Bank debit card or directly into your personal checking account. Should you become unemployed, you must complete the “Application For Replacement Wages for unemployment only” and a copy of the “Official Record of Benefit Payment History” (ORBPH) issued by (NYSDOL) indicating the week you were unemployed. You must be receiving NYSDOL Unemployment Insurance benefits and present the ORBPH before the Fund Benefits will be issued. Thereafter, each week that you remain unemployed you must submit your updated ORBPH showing the updated week. Only one application must be submitted for each continuous period of unemployment which cannot exceed a 12 month period.
There are three (3) limited cases where you are not eligible for NYSDOL Unemployment Insurance benefits, but you may apply for replacement wages: 1. Your waiting period. 2. You did not work sufficiently to establish eligibility with the NYSDOL. 3. You exceeded the 26 weeks of unemployment benefits allowed by the NYSDOL in any one benefit year. You can apply for replacement wages upon presentation of your proof on ineligibility from the NYSDOL along with any other documentation the trustees may require.
The amount of reimbursement you will receive will be equal to your base wage rate plus your vacation wage contribution rate for the period less the amount of your state unemployment benefits, limited to your account balance.
The supplementary unemployment benefits are subject to Federal, New York State and New York City tax withholding on a weekly basis. The total amount of these benefits paid to you during the calendar year will be reported to you and the tax authorities on Form W-2 at year end.
Example: Journeyman steamfitter with an account balance of $7,000 and you have a one-week period of unemployment, you may be reimbursed as follows:
One week of base wage + vacation wage contribution rate for a journeyman steamfitter
($59.05 + $7.00) x 40 hours $2,792
Less state unemployment for 1 week (504)**
Gross reimbursement $2,288
This benefit is subject to Federal, New York State and local taxes.
**Please note this amount is provided as an example only. You must file a New York State Unemployment Insurance claim to find our if you are eligible and learn your actual benefit amount.
Disability and Workers’ Compensation
To receive either of these supplemental benefits you must complete the "Workers' Compensation, Disability or Jury Duty Only" application and check the appropriate box. As in the case of unemployment, you must attach a copy of the first Disability or Workers’ Compensation check you receive to the application to document your claim.
The amount of reimbursement you will receive is equal to your wage rate for the period, less the amount you have received from the appropriate agency, not to exceed your account balance.
Please see the unemployment section for an example of how your reimbursement is calculated.
If your entitlement to benefits under any State law ceases, you may still be able to receive payment from the Fund subject to a signed affidavit. You will be asked to render proof of your continued inability to work, to the Trustees satisfaction.
While you are waiting to receive benefits from the appropriate agency, you may receive reimbursements, as in the case of unemployment, by submitting the signed affidavit and contacting the Fund Office each week.
Disability and Workers’ Compensation benefits are subject to income tax withholding for Federal, New York State and New York City taxes, as well as F.I.C.A., and will be reported on a Form W-2 at year end.
Jury Duty:
If you are called to serve jury duty, you may apply for a supplemental jury duty benefit to replace lost wages. On the "Workers' Compensation, Disability or Jury Duty Only" application and check the box for jury duty and submit a copy of your subpoena for jury duty service and payment by the Court.
You will be reimbursed based on a seven hour day at your wage rate for the period, for each day of jury service less the amount received from the Court and your employer. This benefit is subject to Federal, New York State, New York City, and F.I.C.A. withholding taxes, on a weekly basis, and is reported to you on Form W-2 at year end.
Child Care Service Benefit
The “Child Care Service Benefit” is available for Qualifying Dependents up to the age of twelve (12) who are enrolled in a certified childcare service. A certified childcare service provider may include a daycare center, after-school program, nursery school, pre-school, special needs program, child day camp, child sleepaway camp, or other certified childcare service that provides supervision and care of a child. An “Application for Child Care Service Benefit” must be completed. You must submit an itemized invoice, which includes the dependent name, description of services, time period, itemization of charges, and the provider's name and address. You are responsible to pay for the childcare services yourself and will be reimbursed from the Fund. Therefore, you must also include proof of your payment (canceled check, credit card statement, etc.).
This benefit is subject to Federal, New York State, New York City, and FICA taxes and will reported on Form W-2 at year end.
Severance Benefit
The severance benefit allows you to elect to withdraw a substantial amount from your Security Benefit Fund account.
You are first eligible to apply for the severance benefit after no contributions have been made to this, or any of the related Funds, for six consecutive months. You have two years from your eligibility date to apply for your severance benefit, provided you do not return to work in the industry.
The severance benefit will be paid to you in a lump sum amount. However, no payments can be made beyond the two year application period. The amount of your total benefit will be equal to twice your earnings in the 12 months prior to your severance from the industry or the amount such earnings would have been had you worked the full year.
If you are eligible for a severance benefit and you do not apply in the two year period, your application period will expire. In order to again be eligible for the severance, you must return to work in the industry for a minimum of 750 hours. Once you’ve met this requirement, you will be eligible for the severance after two consecutive calendar quarters of no contributions as described above.
If you take your severance benefit, you may be eligible for a second severance benefit. To be eligible for a second severance benefit, you must have five calendar years in which you have worked a minimum of 750 hours in each year. You would then be eligible for a second severance under the rules described above.
The severance benefit is considered to be taxable income and is subject to all withholding taxes, including FICA, and will be reported to you and the Internal Revenue Service on Form W-2 at year end.
Funeral Benefit
Funeral expenses paid by you for a dependent for which you receive no reimbursement from any other source continue to be eligible for reimbursement. An application for a funeral benefit shall be filed along with a notarized affidavit, a copy of the death certificate in support of the claim and verification of the expense. At the end of the year in which the benefit is paid, a Form 1099-M will be sent to you and the Internal Revenue Service.
Death Benefit
Upon your death, any balance in your account will be paid to your designated beneficiary. Your beneficiary, family member, or friend should contact the Fund Office and send in a copy of the death certificate and appropriate identification. At the end of the year in which the benefit is paid, a Form 1099-M will be sent to the beneficiary and the Internal Revenue Service. This benefit is subject to tax and may require that estimated tax payments be made.
Scholarship Benefit
The Scholarship Benefit is available for you, your spouse, children, and other legal dependents who are enrolled full or part time in an accredited educational institution.
An “Application for Scholarship Benefit” must be completed. You must attach all itemized invoices, receipts, cancelled checks, credit card statements, etc. to substantiate your claim. If your application includes an off-campus college housing claim please include proof of attendance, copy of the lease, proof of rent payment and an on-campus room fee schedule. Reimbursement can only be up to the on-campus fee amount.
Accredited educational institutions include universities, colleges, technical institutes, junior colleges, nursing, medical, dental and law schools. Covered expenses include tuition, room and board, off-campus housing, books, laptop computers and other appropriate supplies. Reimbursement for the academic costs associated with inter-session classes for matriculating full time students are also covered.
The Security Benefit Fund is NOT permitted to reimburse any cost covered by a student loan of any type. If the information that you have submitted indicates that a loan is in force we will deduct the loan amount from the total amount due and issue a benefit reimbursement to you for the difference.
In a hardship case, the Fund will allow for the processing of an application (with all necessary documentation) prior to ta participant’s actual payment to the accredited educational institution. Immediately thereafter, the participant must submit proof of payment (cancelled check, credit card statement, etc.). A Participant will have 30 days from the date of the disbursement to submit the proof of payment documentation. Failure to submit proof of payment within the 30 days will cause the Scholarship Benefit application to be deemed fraudulent in accordance with the rules and regulations of the Fund.
Federal, New York State, New York City and FICA taxes will be withheld from all benefit payments based on the information you provide on the application. This benefit will be income to you, is subject to all applicable withholding taxes and is reported to you and the tax authorities on a Form W-2 at year end.
Term Life Insurance Benefits
This benefit is available to reimburse a member for the premium expense associated with an annual term life insurance policy. The benefit can be used for the member's policy or for that of a legal dependent.
The appropriate application must be completed and submitted with a copy of the term life insurance premium notice. The "face" value of the term life insurance policy cannot exceed $1 million.
This benefit is subject to all applicable Federal, New York State, New York City and FICA withholding taxes. This benefit will be income to you in the year the benefit check is issued and will be reported to you on Form W-2 at year end.
Financial Assistance Benefit
For any part of the month in which you are unable to work as a steamfitter, the Fund will reimburse you in an amount not to exceed your account balance for your unpaid home mortgage, co-op mortgage and maintenance fees, rent or property taxes on your primary residence for that same month.
The Fund will require a copy of an Unemployment, Disability or Workers Compensation check for a week ending period in that month in order to reimburse you for that month. For example, if your check is for the period of July 26th through August 1st (thus, the week ending period of this check is August 1st) reimbursement for financial assistance would be for the month of August even if most of the period was in July.
If you have exhausted or are ineligible for Unemployment Benefits, the Fund will require a letter from the appropriate state agency verifying your ineligibility for unemployment benefits.
Documentation supporting your financial assistance request such as an unpaid mortgage invoice, co-op fee statement, property tax bill, or rent invoice must be in the member or spouse's name only. A letter from the landlord verifying rent due (for each month you apply) when there is no written lease in effect is sufficient.
Benefit applications will be available from the Fund Office in late June. The amount of the benefit requested cannot exceed your account balance and is conditioned upon both audit verification and Trustee approval. This benefit is subject to all federal, state, city and employment withholding taxes.
Housing Benefit
This benefit can be used for certain costs associated with the purchase of a residence, for the initial costs associated with a rental and for costs to prevent foreclosures or eviction as long as the residence is your primary residence and is located within 150 miles of the Fund Office. An “Application for Acquisition or Retention of a Residence or Rental Unit (Active Participant Only)” must be completed. Retired participants are excluded from this benefit as the Fund cannot provide post-retirement housing benefits. Return to Work participants are excluded from the benefit so far as costs associated with the purchase of a residence as well as closing costs, but may apply for benefits for the prevention of eviction or foreclosure.
Costs or fees related to the purchase of a primary residence that are eligible under this benefit include, but are not limited to, the following: loan originations, loan discounts, appraisals, credit reports, lender’s inspections, mortgage insurance applications, tax services, flood checks, document preparations, title searches, title examinations, title insurance binders, attorneys, title insurance, governmental recordings, state taxes, and surveys. The initial costs related to a rental may include the first and last month’s rent, security deposits, and broker’s fees or commissions.
Documentation supporting closing cost or fees will include a signed contract of sale, mortgage application, Good Faith estimate, legal documents pertaining to the construction of a new home, copy of rental lease, or a letter from the real estate company detailing the lease arrangements, foreclosure or eviction notices and/or any other documents so requested. All documents must be in the participant or spouse’s name only.
When applying for initial rental costs you must submit a lease with a future effective date. The Security Benefit Fund may not process the claim for initial costs associated with a rental as a reimbursement once these costs have already been paid. Therefore, if you are leasing an apartment effective March 1st, your application and supporting documentation must be submitted prior to March 1st. If the application and documentation is submitted after March 1st, the application will be denied. You may only utilize the initial costs associated with a rental benefit on one occasion during a calendar year.
If you apply for a “prevention of eviction from or foreclosure on your principal residence” you will only be allowed to be paid twice per calendar year from the Security Benefit Fund or the Supplemental Retirement Plan or a combination of the two plans. You will be required to document proof of residence and that you are at least 3 months behind in your rent, mortgage payments, or property taxes. A current bank statement or notice of default mortgage letter is required documentation for a foreclosure. A current notice of petition of nonpayment of rent or landlord’s attorney letter is required for documenting potential eviction.
The amount of the benefit requested cannot exceed your account balance and is conditioned upon both audit verification and Trustee approval. This benefit is subject to all applicable withholding taxes and is reported to you and the tax authorities on Form W-2 at year end.
Claim Forms
Claim forms for the various benefits are available in the forms section of this website.
