Let’s say you are involved in one of the many apprenticeship programs in one of the trade industries so prominent in California, but you are uneasy with the administration of the finances related to your retirement plan. Or perhaps you are new to the administration team in charge of an apprenticeship program, and are unsure of your responsibilities. What are your options? Only a good labor attorney familiar with your circumstances can tell you for sure, but you should know that the federal government does have oversight of apprenticeship programs and policies.
Fitzgerald Act Guidelines
The US Department of Labor has a guardianship role for apprentices. The Fitzgerald Act was established to ensure equity when it comes to access to apprenticeship programs, as well as to provide information relating to integrated employment and training.
Some of these programs involve private sector workers who are financed through trust funds. Through the power of the Employee Retirement Income Security Act of 1974 (ERISA), the Employee Benefits Security Administration helps to oversee them, as well. Because labor/management apprenticeship committee expenses must come out of money in a separate fund according to the Labor-Management Relations Act, ERISA regulations cover collectively bargained apprenticeship programs, as well.
What is Legally Required of a Retirement Savings Plan Associated with an Apprenticeship Program?
The law provides specific expectations related these plans:
- There must be a written plan proving for a minimum of one official authorized to administer the plan;
- There must be a trust established to hold any assets associated with the plan;
- Documentation must be shared with employee participants, as well as with the government.
ERISA Standards
What does ERISA do? It determines standards of conduct for managers involved in benefit plans and assets, including several specific functions:
- Fiduciary responsibilities;
- Reporting to the government;
- Sharing information with workers who participate in those plans;
- Travel and credit card reimbursement for managers;
- Bonding to protect against fraudulent acts.
Apprenticeship Programs – What is Expected of a Fiduciary?
Clear rules guide fiduciary behaviors:
- Each action must be made exclusively in the best interests of employee participants and their beneficiaries.
- Every duty must be performed with prudence.
- All reasonable plan expenses must be paid and plans followed according to law.
- Third-party service providers should be monitored and reviewed regularly, which changes considered when necessary.
What Actions are Prohibited?
Certain transactions are not allowed, including:
- Sales, exchanges, or leases between the party in interest and the plan;
- Extending credit or loans from the plan to a party in interest;
- Providing facilities, goods, or services from the plan to a party interest.
Your Apprenticeship Program Questions Deserve Answers
As an employee involved with an apprenticeship program, you are entitled to documentation regarding finances from your employer. When those documents are lacking, it is time to contact the experienced employment law attorneys at Beck Law. If you are in Sonoma County, Mendocino County, or Lake County California, let our team explore the issues on your behalf.
Whether you are a new manager trying to determine your responsibilities or an employee who suspects wrongdoing, our knowledgeable legal team can help. Contact us today in Santa Rosa today for a confidential consultation.