Rev. 582
FIELD OPERATIONS HANDBOOK - 6R9/90
15fll - 15fl2
from using contributions made for nongovernmentwork to dischargeor offset their obligations on DBRA work (see FOH lSflO(b)). Note, however, that if the amount of contribution varies per employee, credit must be determined separatelyfor the amount contributed on behalf of each employee (FOH fifW4).
(c)
To illustrate the principles set out in (b), assumethat the annual wst of a pension program is Sl5,ooO. The total actual working hours @BRA and nongovernment)are 15,000. Thus $15,000/ l5,OW hours = $1.00 per hour cash equivalent. Since wnstntction workers often do not work a full year (2,OfXlhours), where the contractor msltcr annual paymentsin advanceto wver the coming year and actual hours worked will not be determinable until the close of that year, the total hours worked by the DBRA-wvered laborers, mechanicsand apprentices,if any, for the preceding calendaryear (or plan year), will be consideredas representativeof a normal work year for purposesof the above formula. Similarly, where the wmractor pays monthly health insurance premiums in advanceon a lump sum basis, the total actual hours worked in the previous month or in the same month in the previousyear may be use to determine (i.e., estimate) the hourly equivalent credit per employee during the current month. Any representativeperiod may be utilied in such cases,provided that the period selectedis reasonable. Where the cost incurred included wntriiutions for employeesother than wvered laborers, mechanics,and apprentices,the hours of such nonwvered employeesmust be included in the computation of the hourly cash equivalent or the contributions for such employeesmust be eliminated prior to determining the cash equivalent for wvered employees.
(d) In computing cash equivalents,it should be kept in mind that under certain kinds of fringe benefit plans the rate of contribution for employeesmay vary. For example, under a hospitalization plan the employer often contributes at different rates for single and family plan members. In such situations, an employer cannot take an acrossthe board averageequivalent for all employees; rather, the cash equivalent can only be credited basedon the rate of contributions for each individual employee. lSfI.2
Elitribilitv standardsfor narticibation in frinee benefit olans. Eligibility standardsare permissible in an otherwise “bona fide� fringe benefit plan under DBRA However, an employer must make paymentsor incur costs in the applicable specified amounts with respect to each individual laborer or mechanic performing wvered contract work. Employees who are acluded from a plan for whatever reasonand for whom the employer makes no contribution must be paid in cash. For example, many hospitalization plans require a waiting period of 30 days before an employee can participate in the plan. Since the employee normaliy makes no wntriiution for the employeeduring the waiting period, the employee must be paid the fringe benefit in cash or furnished other bona fide fringe benefits equal in monetary value. If the plan requires wntriiutions to be made during the eligibility waiting period, credit may be taken for such wntriiutions, since it is not required that all employeesparticinating in a bona fide fringe benefit plan be entitled to receive benefits from that plan at all times. However, credit may not be taken for wntriiutions for employeeswho by definition are not elimile to oarticinate, such as employeeswho are excludedbecauseof age or part-time employment. Similarly, employers frequently make contributions to union fringe benefit funds for employeeswho are not members of the union. If the employeecannot participate in or receive benefits from the union fund, the employee must be paid the fringe benefits in cash,even though the employer, by the terms of his union contract, may be required to contribute to the union fringe benefit fund on behalf of such employees.