Duties and Obligations of Trustees



The Trustee is a person who holds the legal title to property, which is called trust property, on behalf of another person who is called the beneficiary for certain specific trust purposes.

The sole purpose of creating a trust is to enable a Trustee to administer trust property for the benefit of a beneficiary and, as such, the trustee has a duty to account for all of his or her conduct in connection with the administration of the trust. A trust is the fiduciary relationship created between the Trustee and the beneficiary, which means that the Trustee owes a duty of "loyalty" to the beneficiary.



Board of Trustees

A designated number of Union Members are appointed or elected as Trustees of the Trust Plan usually for a specific term of office to represent the Members who participate in the health coverage provided [health, disability, etc.]. These Trustees enter into a legal relationship on behalf of the employee members of the Fund.



Third Party Administrator

Third Party Administrators are appointed and employed by a Board of Trustees who are responsible for the selection of a Fund Administrator. Canadian Benefits Consulting Group specializes in Trust Fund Administration and is the Third Party Administrator for your Fund. Canadian Benefits administers the Group Insurance Disability Income Plan including the collection of contributions, the keeping of records, the processing and control of claims, and fund auditing. Quarterly Meetings are conducted with the Board of Trustees to present the financial status of the overall Plan and to review any concerns. The Trustees of the Fund hold ultimate liability to account for the receipt, deposit and stability of the Fund.




The Funds auditor is charged with scrutinizing the financial books and records on an annual basis on behalf of the Trustees. The accountability for proper books and record keeping is ultimately on the Trustees. The Funds are audited annually and a Financial Statement produced to be distributed to each participating Member as directed by the Board of Trustees.




Contributions are collected bi-weekly by payroll deduction. The Employer forwards payment directly to Canadian Benefits Consulting Group payable to the Trust Fund. Contributions and premiums are calculated on a percentage of payroll and are determined annually. Premiums are negotiated at each annual Insurance Policy anniversary date with the underwriting Insurance Company.

Contributions are what the participating Member pays to fund the cost of premiums plus the expenses of running the Plan.

Premiums are the cost of the Insurance Policy only that must be paid to the underwriting Insurance Company.



Trust Document

Written Trust Agreement that expresses the purposes and functions of the trust and duties and obligations of the Trustees; located at the Third Party Administrator's Office.



Fiduciary Insurance

Liability Insurance has been obtained for the Trust Fund and its Trustees to insure against "technical breaches of trust".



Insurance Policy

The Policy is a contract of insurance. Benefits may only be made or paid in accordance with the eligibility requirements and the terms of the particular Insurance Policy purchased and in conjunction with the Trust Agreement. The Insurance Policy normally sets out the rules and regulations concerning the amount and timing of benefits, and the criteria for eligibility.

In the case of Short-Term Disability benefits, they are usually paid bi-weekly, and Long Term Disability Benefits monthly unless otherwise negotiated. Long-Term Disability benefits can be deposited directly into a Member's bank account.



International Foundation of Employee Benefit Plans (IF)

This is a Organization, which the Board of Trustees may join. This Foundation holds Seminars on Employee Benefits and mails out educational material to Members. As well, it can be used to obtain research material in reference to benefit plans and precedent setting decisions.





en Duties and Obligations of Trustees