Owner Member Participation

The National Pension Fund’s rules for contributions and pension coverage on behalf of “Owner-Members” have changed over the years.  “Owners” or “Owner-Members” under the NPF are owners, officers, or stockholders of Contributing Employers, some of whom may or must participate in NPF.  These changes are outlined in the questions and answers below.

Under what circumstances should an Employer contribute on Owners?

Whenever an Owner performs work covered under a collective bargaining agreement, the contributions due under the collective bargaining agreement (“CBA”) governing that work should be paid.  If the NPF is one of the funds in that CBA, then it should be paid.

Suppose an Owner is not performing covered work under a CBA, may the Owner still participate?

Maybe.  If the Owner is a bargaining unit “Alumnus” as described in Treasury Department Regulations, then he/she may participate.  In general, an alumnus is a person who first became covered in NPF while working under a CBA.  For example, suppose a journeyman worked under a CBA under which NPF contributions were due.  He opens his own shop and wants to continue in NPF.  He is an Alumnus, and he may continue to participate whether he continues to do covered work or not. 

Is there a set number of minimum hours for which contributions are due?

It depends.  Effective January 1, 2002, NPF does not set a minimum number of hours.  At a minimum, contributions must be paid on all hours worked or, and depending upon the language of the CBA and/or Plan Rules, all hours of pay.  NOTE HOWEVER, that many CBA’s impose minimum hours on Owner-Members (e.g. 40 hours per week).  Any Owner performing covered work or otherwise covered by a CBA should have contributions paid on the greater of the CBA minimum (if any) or actual hours worked or paid.  Furthermore, if contributions are remitted to any local benefit fund on an Owner for hours of work, contributions should be paid to the NPF, at a minimum on the same hours. 

Do any forms now have to be completed for an eligible Owner to participate in NPF?

Not any more, except as described here.  On or after January 1, 2002, an eligible Owner working under a CBA, or who is an Alumnus may participate without filing additional forms.  The NPF Owner-Member Registration Statement is no longer required for Owner-Member participation after December 31, 2001.  Note, however, that an Owner that did not work under Registration Statement before January 1, 2002, will not receive pension credit for work before January 1, 2002. In some circumstances, an Employer may be able to file a Registration Statement, which may permit an Owner for whom contributions were made before 2002, to obtain pension credit.

Where can an Employer, Employer Association or Owners get more information about participation?