2024-09-10T11:57:20-05:00 2023-12-31 910614823 SCHOEDEL & SCHOEDEL CPAS PLLC 422 W RIVERSIDE AVE STE 1420 SPOKANE WA 992010395 990 2023-01-01 208431466 Electrical Workers' VEBA Trust ELEC 5095340600 PO Box 5433 Spokane WA 99205 Travis Eri Chairman 5032629125 2024-08-23 1 1 SCOTT OPPERUD CPA P00542597 5097472158 2024-08-23 2023 2024-08-08 14:25:15Z Travis Eri PO Box 5433 Spokane WA 99205 1611297 0 X N/A X 2007 WA To provide qualified short and long term disability insurance. 8 8 0 0 0 0 0 0 1367528 1423620 0 456 0 187221 1367528 1611297 0 0 1185775 1090453 0 0 0 0 0 164363 182756 1350138 1273209 17390 338088 531009 821221 237632 189756 293377 631465 X The Trust has been established to provide employees with disability benefits as set forth in the related plan, while they are eligible to receive such benefits, and to provide such other permissible payments as may be determined from time to time. It is intended that the benefits and payments provided by the related plan and funded through the Trust be "life, sick, accident, or other benefits" as that phrase is defined in Section 501(c)(9) of the Internal Revenue Code. 0 0 This trust administers the Electrical Workers' Disability Plan (the Disability Plan). The Disability Plan is a multiemployer, defined benefit, health and welfare plan. The Disability Plan provides short and long term disability benefits to the employees of participating employers. Participants are eligible employees pursuant to collective bargaining agreements and special agreements between the employers and IBEW Locals 77, 89, 125, 483, and 659. 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 1 3 0 1 0 0 0 0 0 0 0 0 0 X 8 8 0 0 0 1 0 1 0 1 1 0 0 1 1 1 1 1 1 0 0 0 X Gallagher Benefit Services Inc 8008888322 221 N Wall Street Suite 201 Spokane WA 99201 X X Travis Eri Chairman/Employee Trustee 1.00 X X 0 0 0 Tracy Harness Vice Chair/Employer Truste 1.00 X X 0 0 0 Rex Habner Treasurer/Employee Trustee 1.00 X X 0 0 0 Paige Richards Secretary/Employer Trustee 1.00 X X 0 0 0 Leif Hasselblad Employer Trustee 1.00 X 0 0 0 Alice Phillips Employee Trustee (to 3/23/2023) 1.00 X 0 0 0 Michael Lambert Employer Trustee 1.00 X 0 0 0 Jon Flegel Employee Trustee (to 7/7/2023) 1.00 X 0 0 0 Nick Carpenter Employee Trustee (eff 7/7/2023) 1.00 X 0 0 0 Byron Allen Employee Trustee (eff 3/23/2023) 1.00 X 0 0 0 0 0 0 0 0 0 0 0 Employer contributions 525100 1423620 1423620 1423620 456 456 Other receipts 525100 187221 187221 187221 1611297 1610841 0 456 1090453 95680 20026 12202 41078 5265 8505 1273209 390050 126829 0 275456 135333 413178 5626 5758 531009 821221 12298 14656 225334 175100 237632 189756 X 0 0 0 0 293377 631465 293377 631465 531009 821221 338088 0 X 0 1 X 0 0 0 Premiums due to insurer 175100 175100 1611297 0 1611297 0 1611297 1323443 225334 225334 1098109 175100 175100 1273209 Part XII, Line 2d - Other Adjustments: Premiums due insurer at the end of the prior year 225,334. Part XII, Line 4b - Other Adjustments: Premiums due insurer at the end of the current year 175,100. Form 990, Part VI, Section A, line 5 During the Board of Trustees meeting on June 15, 2023, the Board discovered a possible discrepancy in billing rates for short term disability (STD) and long term disability (LTD) premiums paid to the insurer. Further investigation revealed that the Trust overpaid STD and LTD premiums due to a miscommunication from another plan service provider regarding the applicable rates. The overpayment totaled $351,646.14 over the period from August 2019 through January 2024 (the overpaid premiums as of December 31, 2023 totaled $289,421.86). The entire amount of the overpaid premiums of $351,656.14 was refunded by the insurer to the Trust on May 31, 2024. The Trust calculated lost earnings and interest on this amount to be $39,993.04 using the U.S. Department of Labor's VFCP calculator. In order to restore lost earnings and interest, the insurer has agreed to a discount of $0.01 per hour worked on the LTD premiums from February 1, 2024 through January 31, 2025. Premiums are calculated and paid based on hours worked by plan participants. Using 2023 hours worked as the basis for a projection, this should result in a premium offset of $44,000 (4,452,451 hours times $0.01 = $44,524.51). The total estimated discounted premiums of approximately $44,000 significantly exceeds the $39,993.04 of lost earnings and interest. To ensure the proper payment of STD and LTD premiums, and administration fees, which are all based upon hours worked by participants, corrective actions were immediately implemented. The insurer is now required to provide rate information in its quarterly report to the Board of Trustees. Additionally, a contract was executed between the broker who partners with the insurer and the Trust to outline the broker's responsibilities for the reporting of premium rates to the Board of Trustees and all service providers. The third-party administrator's invoices will likewise begin reporting more detailed premium information. Form 990, Part VI, Section A, line 7a The Trust is administered by an eight-member Board of Trustees. IBEW Locals 77, 125, 483, and 659 appoint four trustees on behalf of the represented employees. The Northwest Line Constructor's Chapter of the National Electrical Contractors Association appoints four trustees on behalf of the participating employers. Form 990, Part VI, Section B, line 11b The Trust auditor annually prepares an initial draft of the Form 990 and provides a copy of the draft via e-mail to the Trust's legal counsel and plan consultant for review. Any review comments are considered, discussed and incorporated as necessary. The Trust's auditor then presents the audited financial statements and updated draft Form 990 during a regularly scheduled Trustee meeting prior to filing the Form 990 with the IRS. During the Trustee meeting, the Trustees consider and review the Trust auditor's presentation. The Trustees may: approve for filing the Form 990 as presented; approve for filing the Form 990 with specified changes; or not approve the Form 990 for filing. Any discussions and decisions are documented in the meeting minutes. Upon confirmation that the Board of Trustees has approved the Form 990 filing, the Trust auditor files the Form 990 in accordance with IRS instructions. The plan consultant maintains final copies of the Trust's Form 990 and supporting audited financial statements in accordance with the Trust's Document Retention and Destruction Policy. Form 990, Part VI, Section B, line 12c A party in interest is under continuing obligation to disclose any financial, personal or professional interest to the Board of Trustees as soon as it is known or suspected. The interested party is given the opportunity to disclose all material facts regarding a financial, personal, or professional interest to the Trustees when considering a proposed transaction, agreement, or arrangement that may implicate that financial, personal, or professional interest. To ensure that the Trust operates in a manner consistent with its purposes and does not engage in activities that could jeopardize its tax-exempt status, periodic (at least annual) reviews are conducted. These periodic reviews include: Whether compensation arrangements and benefits are reasonable, based on competent survey information, and the result of arm's length negotiation; Whether partnerships, joint ventures, and arrangements with other organizations conform to written policies, are properly recorded, reflect reasonable investment or payments for goods and services, further the Trust's purposes, and do not result in inurement, impermissible private benefit or in an excess benefit transaction; and Whether any transaction conducted by the Trust during the review period involves or could possibly give rise to a conflict of interest. In connection with such review, each interested party will complete an annual questionnaire which will include (1) acknowledgement by such person or entity that they have read and understand the Trust's Conflict of Interest Policy and (2) disclosure of such person's or entity's knowledge regarding their or any other interested person's financial, personal, or professional interest of and any other potential or perceived conflict of interest. Form 990, Part VI, Section C, line 19 The Trust's governing documents, conflict of interest policy and Form 990 are available to the general public upon written request sent to the Trust at: Gallagher Benefit Services, Inc., 221 N Wall Street, Suite 201, Spokane, WA 99201. Form 990, Part VII, Section A, Line 1A: None of the members of the Board of Trustees are compensated by the organization. The Board of Trustees is composed of eight individuals, four of whom are representatives of participating employers and four of whom are representatives of participating local unions. The Trustees serve on a volunteer basis and receive no known specifically stated compensation from their employers or any other party for their services on the Board. The Trust does not readily have access to information related to compensation paid by other entities to the Trustees. IBEW Local Union 77 PO Box 12129 Seattle WA 98102 Local Union WA 501(c)(5) N/A 0 IBEW Local Union 89 PO Box 2349 Mount Vernon WA 98273 Local Union WA 501(c)(5) N/A 0 IBEW Local Union 125 17200 NE Sacramento Street Portland OR 97230 Local Union OR 501(c)(5) N/A 0 IBEW Local Union 483 3525 S Alder Tacoma WA 98409 Local Union WA 501(c)(5) N/A 0 IBEW Local Union 659 4480 Rogue Valley Hwy Suite 3 Central Point OR 97502 Local Union OR 501(c)(5) N/A 0 Action Construction and Maintenance Advanced Underground Utilities Aldridge Electric Inc Allteck USA LLC Anderson Line Company LLC Black & McDonald Brent Woodward Burke Electric BZR Power Division LLC C3M POWER SYSTEMS Cache Valley Electric Cannon Constructors Inc Carlson Construction Carlson's Construction Centerline Drilling Inc Christenson Electric Company Colvico Inc Cougar Construction Crux Subsurface Inc Dakota Matting & Environmental Solutions LLC DePower Inc DJs Electric E C Company Elcon Corp Electric Power Constructors Inc Electric Power Utilities Inc Emeritec Inc Evans Building & Excavating Inc Extreme Excavating Inc Full Bore Inc Geotechnical Supply Company LLC Global Electric Grand Mound Construction Co Ground Piercing Henkels & McCoy West LLC Henkels & McCoy Inc Heritage Line Construction LLC Herron Valley Inc Holmes Electric Co Intec Services Inc International Line Builders Key Line Construction Keystone Directional Boring LLC Kuenzi II Inc Lanz Industrial Welding Inc Liberty Electric LLC Loy Clark Pipeline Magnum Power LLC Mass Electric Maven Utilities LLC Michels Pacfic Energy Inc Middle Fork Construction LLC MJ Electric LLC Mountain Power Construction NW Utility Northern Environmental LLC Northwest High Voltage Services LLC NW Power Inc Olson Brothers Pro Vac Olympic Electric Oneill Electric Inc Oregon Electric Construction Inc Osmose Utilities Services P & G Power Company Palouse Power PAR Electrical Contractors PAR Western Line Contractors Potelco Inc Power City Electric Inc Power Technology Inc Power X Inc Prime Electric R-2 Contractors Inc Rawhide Excavating Inc RiverLine Power LLC Rogue Hills Excavation Rosendin Electric Salish Construction Saunders Line Construction Sturgeon Electric Co T3 Electrical & Construction LLC The Fiber Guys LLC Tice Electric Co Titan Electric Inc Titan Underground Inc Transcon Company LLC Utility Construction Inspection LLC Valley Electric Vector Services Vitro Electric LLC Wasatch Electric Company Watt Construction Services Inc Wilson Construction WINCO INC Yates Line Construction Company 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1