Whitaker Construction Group Employee Health Benefit Tr

TO COLLECT AND TRACK DEPOSITS FROM THE EMPLOYER (PLAN SPONSOR) BY EMPLOYEE, FOR AMOUNTS EARNED THROUGH PREVAILING WAGE (PER CA DIR) OR CONTRIBUTIONS MADE IN ADDITION TO BY THE EMPLOYER, AND TRACK PAYMENTS MADE FROM THE EMPLOYEE BENEFIT TRUST PLAN (EBT) TO OUR EMPLOYER-DESIGNATED HEALTH AND DENTAL PLANS.

THE VAST MAJORITY OF "REVENUES AND "EXPENSES" ARE GENERATED BY THE OPERATIONS OF THE EMPLOYEE BENEFIT TRUST'S (EBT) PLAN SPONSOR (EMPLOYER). THE "REVENUE NOTED ABOVE CONSISTS OF DEPOSITS MADE BY THE EMPLOYER TO THE EBT ACCOUNT, WHICH IS TRACKED BY EMPLOYEE. THE CALCULATION OF THE AMOUNTS DEPOSITED BY THE EMPLOYER ARE BASED ON THE APPLICABLE RATES SET FORTH BY THE CALIFORNIA DEPARTMENT OF INDUSTRIAL RELATIONS (CA DIR). CA DIR RATES DEPEND ON THE CRAFT PERFORMED BY THE EMPLOYEE ON PREVAILING WAGE-BASED JOBS. CONTRACTS THAT REQUIRE PREVAILING WAGE RATES PAID TO THEIR EMPLOYEES ARE USUALLY WITH MUNICIPALITIES THAT RECEIVE THEIR PROJECT FUNDING FROM TAXPAYER DOLLARS. THE HEALTH PORTION OF THESE FRINGE BENEFITS ARE CALCULATED, ACCRUED, AND DEPOSITED TO THE EBT'S BANK ACCOUNT MONTHLY BY THE EMPLOYER (EVEN THOUGH DEPOSITS ARE ONLY REQUIRED TO BE MADE QUARTERLY). THESE INDIVIDUALLY TRACKED FUNDS ARE THEN USED TO PAY FOR THE EMPLOYEES' HEALTH AND DENTAL INSURANCE PREMIUMS. THE EMPLOYEE ALSO CONTRIBUTES AN ADDITIONAL AMOUNT BASED ON THE PERCENTAGE OF PRIVATE WAGE-BASED HOURS WORKED, DUE TO THE FACT THAT THE CA DIR SPECIFIES THAT THE PREVAILING WAGE BENEFITS EARNED CANNOT BE USED TO PAY FOR THE ENTIRE PORTION OF THE EMPLOYEES' PREMIUM, IF HE/SHE HAD PRIVATE WAGE EARNINGS IN THE SAME PERIOD. THUS, THE "EXPENSES" CONSIST OF THE HEALTH AND DENTAL INSURANCE PREMIUMS THAT ARE PAID OUT OF THE EBT.

REPORTED SEPARATELY FROM THE AMOUNTS NOTED ABOVE IN SECTION 4A, ARE AMOUNTS THAT WERE PAID BY THE EMPLOYEE TO THE EBT PLAN, TOWARDS THE EMPLOYEES' ACCOUNT, IN ORDER TO PROVIDE A SUFFICIENT BALANCE TO COVER THEIR PREMIUMS DUE. THESE DEPOSITS ARE REQUIRED BY THE EMPLOYEE AT TIMES WHEN THE EMPLOYEE HAS NOT WORKED A SUFFICIENT NUMBER OF HOURS DURING THE MONTH TO COVER HIS/HER PREMIUMS DUE. FOR INSTANCE, IF THERE IS NOT ENOUGH WORK AVAILABLE TO THE EMPLOYEE, AND THE EMPLOYEE'S EBT BALANCE CANNOT COVER THEIR HEALTH AND DENTAL INSURANCE PREMIUMS, THE EMPLOYEE MUST COVER THE BALANCE OF THEIR PREMIUMS DUE BY DEPOSITING ADDITIONAL FUNDS TO THEIR EBT ACCOUNT. BY WORKING AN AVERAGE OF 40 HOURS PER WEEK, THE EMPLOYEE IN ENSURED THAT HIS/HER PREMIUMS WILL BE COVERED BY THE AMOUNTS EARNED EITHER THROUGH THEIR PREVAILING WAGE HOURS WORKED ON PUBLIC CONTRACTS, OR FOR HOURS WORKED ON PRIVATE JOBS, WHICH THE PROPER PERCENTAGE OF THEIR PREMIUMS ARE COVERED BY THE EMPLOYER.