Reciprocity Update

Last year, according to the January 2004 General Membership Survey, members traveled for work an average of just under five weeks. The International Reciprocal Agreements were developed to make sure that those members who travel benefit from the health and welfare and pension benefits they earn along the way. Today, 112 BAC health and welfare funds and 152 pension funds are signed to these Agreements.

To take advantage of these agreements, however, your home Local benefit funds and the funds in the Local where you travel to work must both be signed to the International Reciprocal Agreements. Here’s how they work:

Both the International Reciprocal Agreements for pension and health and welfare funds are ‘money follows the member’ type agreements. Under the Pension Reciprocal Agreement an amount equal to the entire pension contribution you earn will be transferred back to your home Local. Under the Health and Welfare Agreement an amount equal to the amount earned or your Local contribution rate (whichever is less) will be transferred to your home Local fund unless both funds are signed to Appendix 1. Those funds signed to Appendix 1 have agreed to transfer the entire health and welfare contribution earned to the member’s home fund.

To take advantage of the reciprocal agreements you must sign an “Authorization and Release Form” (available online from the Clearinghouse at www.ipfihf.org or from your Local.) Once this form is signed and received by a participating fund, reciprocity is activated, and your fund contributions will start being transferred on the first day of the month in which the form is completed and received. This transfer will continue monthly until no contributions have been received on your behalf for a period of one year, or until you sign a “Request for Cessation of Transfer” form.

You can get answers to all your reciprocity questions by contacting the BAC Reciprocal Clearinghouse at:

Phone: 888-880-8BAC
Fax: 202-628-4824
Email: reciprocityclearinghouse@ipfihg.org
Mail: BAC Reciprocal Clearinghouse
Suite 709
1776 Eye Street, NW
Washington, DC 20006