Question

NECA and IBEW reached an agreement in 1946 under which electrical contractors would contribute ? of gross wages for eligible employees into a new fund called ? .

Answer 1

Answer:

Electrical contractors contributed 1% of their gross wage

The name of the new fund is the National Electrical Benefit Fund (NEBF)

Explanation:

From the inception of the National Electrical Benefit Fund, both electrical workers and contractors have desired to have a pension plan that would cater for the welfare of all its participants.

One of such pension plans for retired workers in the electrical construction industry was first made by the delegates of the Convention of the International Brotherhood of Electrical Workers (IBEW) in 1927.  By the next year, the plan was put to practise & eligibility was done based on 2 criteria: members with a minimum of 20 years of service and who had attained the age of 65. These were assured a pension of $40 per month. To finance this plan every IBEW member contributed 37 cents per month.

The IBEW upon being counselled in 1945, that the pension fund would need more funds injected into if it was to be sustained in the long-term. This led to the Brotherhood calling upon the National Electrical Contractors Association (NECA) to find an alternate & viable pension plan for retirees. NECA and the IBEW reached such an agreement & plan in 1946;  the plan reqquired that electrical contractors would place 1% of gross wages for eligible employees into a new fund – the National Electrical Benefit Fund (NEBF) which was formerly known as National Electrical Contractors Association Pension Benefit Trust Fund