Trustee Services

Federal Davis-Bacon regulations state that fringe benefit contributions must be made to a trustee or to a third person irrevocably. The trustee must assume the usual fiduciary responsibilities imposed upon the trustee by applicable law. The trustee or third person must be someone who is not affiliated with the contractor or subcontractor.

Beneco Helps Contractors Meet the Trustee Requirement

All Beneco prevailing wage plans adopted by the contractor provide a corporate trustee. This meets the code of federal regulations that govern the Davis-Bacon Act. This alleviates the contractor or an individual working directly for the contractor of this fiduciary liability and mandate under ERISA.

Common Pitfalls Which Contractors Fall Into

• Contractors don't know if they are the named trustee of their current fringe benefit plans trust agreement. (Most are named trustee upon review.)
• Contractors are not aware of National Council on Compensation Insurance (NCCI) Workers compensation audits may cause their prevailing wage contributions to become subject to worker's compensation premiums.
• Contractors don't know the extent of the personal liability of being named trustee.