Benefit Guidelines

We’ve put together these guidelines to help you determine eligibility


You are eligible for benefit coverage if you are employed under the jurisdiction of the Union as a member of the bargaining unit or working member of the firm or of the Union and if sufficient contributions have been made in your name by participating employers.

Category 1 “Bargaining Unit” Employee

A Category 1 employee works under a Collective Bargaining Agreement between an employer and I.B.E.W. Local 340. Employers who have a Labor Agreement with I.B.E.W. Local 340 will pay the hourly contribution rate stipulated in the collective Bargaining Agreement to the Trust for each hour of service you have worked. All hours, for the purpose of calculating contributions, will be treated as straight-time hours.

All employer contributions for work you have performed are credited (in dollars) to your reserve dollar bank account. This is a continuing process. You may contact the Plan Manager to determine the dollars in your reserve dollar bank account.

You and your eligible dependents will be covered on the first day of the month next following the last day of any month in which you have accumulated a reserve equal to the required charge for one month of coverage by virtue of contributions having been made and received in your name for the hours you have worked for one or more participating employers.

On the first day of the calendar month for which you are covered, the required amount for one month of coverage will be deducted from your reserve dollar bank account accumulation. The deduction covers Medical, Prescription Drug, Dental, Vision, Chemical Dependency, Member Assistance Program and Death Benefits.

You may use your reserve dollar bank account accumulation to extend certain coverages while you are unemployed or working insufficient hours to equal the monthly coverage deduction amount requirement.

To become eligible and to maintain coverage, you must accumulate a sufficient balance (in dollars) in your reserve account in any qualifying month to meet the required charge for coverage in the corresponding coverage month for one month’s coverage

Initial Eligibility – New Employees

First time employees must accumulate an initial reserve account balance equal to two months of the current monthly coverage deduction amount as established by the Board of Trustees before being eligible for benefits and monthly deduction from your reserve account can begin.

Forfeiture Of Reserve Account

If your reserve account falls below the minimum required dollars, you can requalify if you bring it back up to the minimum required dollars within twelve (12) months after your eligibility terminates. Your reserve account will then be charged the required dollars to provide you with eligibility for the second month following the month in which your reserve account reaches the required dollars. If you do not bring your reserve account back up to the required dollars within twelve (12) months after your eligibility terminates, any dollars remaining in your reserve account will be forfeited and the funds will be transferred to the unallocated reserves (general fund) of the Trust. You will have to requalify in the same manner as a new employee.

Category 2 “Non-bargaining” Employee

An employer contributing to the Trust for regular bargaining unit (“Category 1”) employees may include by executing, one month in advance of initial coverage, a “Subscription / Participation Agreement” that allows coverage for non-bargaining (“Category 2”) employees subject to the following rules:
  1. Contributing employers under a Collective Bargaining Agreement with I.B.E.W. Local 340 may elect to cover their employees not covered by the Collective Bargaining Agreement, but must cover all such employees in this Category.
  2. Employers electing to cover their non-bargaining (“Category 2”) employees must cover newly hired non-bargaining employees the first of the month following completion of 90 days of continuous full time employment. The employee must be a full-time, non-seasonal employee working at least 30 or more hours per week in a job classification not covered by the terms of the Collective Bargaining Agreement.
  3. Contributing employers not electing to cover their non-bargaining (“Category 2”) employees initially may thereafter apply on each successive anniversary date of the Plan, which is January 1st of each year, to enroll their Category 2 (non-bargaining) employees. All applications and payments must be in the Plan Manager’s Office by December 15th and thereafter the monthly charge for this group must be paid in advance each month to the Plan Manager. Acceptance of Category 2 payments is subject to Trustee audit and compliance with the foregoing.
  4. Employees in Category 2 do not have a reserve dollar bank account accumulation and are not eligible for the Disability Subsidy described in this booklet but shall be eligible for all other benefits of the Sacramento Area Electrical Workers Health and Welfare Plan including the Supplemental Retirement and Medical Expense Account.
  5. The Trustees shall establish the monthly payment required for Category 2 participants from time to time as they deem appropriate. The amount of this monthly payment may be obtained by contacting the Plan Manager’s Office. All employers electing to have Category 2 employees participate in the health and welfare plan are required to sign a “Subscription / Participation Agreement” acknowledging the above rules and agreeing to be bound by the terms of the Trust Agreement for the Sacramento Area Electrical Workers Health and Welfare Plan, and specifically to comply with Plan rules concerning compliance with payroll audits and assessment of liquidated damages and other costs if monthly contributions are not received on time.
  6. All employer contribution reports are subject to audit to verify compliance for Category 1 and Category 2 participants.

Self Payments

Any participant who loses coverage under this plan due to delinquent payment of contributions by a signatory employer shall be eligible to make self-payments to this plan for a period not to exceed six (6) months at a rate equal to that charged participants eligible to make payments pursuant to COBRA unless otherwise determined by the Board of Trustees. In the event the participant’s employer ceases being signatory to a Collective Bargaining Agreement with I.B.E.W. Local 340 and the participant continues working for the non-signatory employer, the right to self-pay under this provision shall automatically terminate.

To be eligible to make a partial self-payment, use your reserve dollar bank account to obtain benefits, or obtain a disability subsidy/waiver of health and welfare premiums, you must meet one of the following requirements:

  1. Be employed by a contributing employer who is signatory to a Collective Bargaining Agreement with I.B.E.W. Local 340 or is a party to a “Subscription / Participation Agreement.” for Category 2 – Non-bargaining employees;
  2. Be available for immediate dispatch to a contributing employer by being registered on I.B.E.W. Local 340’s out-of-work list;
  3. Be working for an employer contributing to another trust that is a party to a reciprocity agreement with the Sacramento Area Electrical Workers Health and Welfare Plan; or
  4. Be eligible to receive, currently receiving or have received an I.B.E.W. Pension, not working in the electrical industry, or disabled.