A “Prevailing Wage/Davis-Bacon” welfare plan is a “bona fide” fringe benefit recognized by the U.S. Department of Labor and is qualified under Internal Revenue Code Section 501(c).  These plans are subject to ERISA and receive tax advantages as a qualified welfare plan.  When paid as a benefit and not a wage, the employer reduces the payroll-associated expenses such as:

• FICA
• FUTA
• SUTA
• Medicare
• Workers’ Compensation Premiums

Savings can be in excess of 30% of the fringe benefit amount.  In addition, the plan establishes a clear audit trail if your company is asked to document its prevailing wage payments by the Department of Labor.

In our capacity as contract administrator, we provide welfare services including:

• Consulting services relating to plan design and implementation, including ERISA required participant disclosure. Design plan benefits and competitively bid your benefit package to multiple carriers.
• Actuarial review of funding alternatives and make recommendations relating to self-funding contract type, including minimum premium and retrospective refund arrangements.
• Perform escrow eligibility administration under either hour bank or dollar bank eligibility system including COBRA administration, and administration of medical reimbursement provisions.
• Process health care claims and provide statistical cost and utilization management data concerning the plan’s operation.  Negotiate managed care and provider networks, including prescription drug delivery, to help contain program costs.
• Provide assistance and guidance to employers contributing to the Trust in the form of letters of instruction.
• Discuss with and advise participants of their eligibility for benefits under the Written Plan when requested by a participant, his beneficiary, or representative.
• Provide reports to the employer monthly, and employees quarterly, of contributions made by the employer, and eligibility status of each employee.
• Prepare and distribute Summary Plan Descriptions, benefit application forms, and other Plan communications to participants and beneficiaries.  Maintain file copies of same as required with the U.S. Department of Labor or any other government agency.
• Annual Audit of Plan and completion of annual IRS filings.

Why adopt a qualified welfare plan for Prevailing Wage and Davis-Bacon fringe contributions?

• Bid Government Contracts more Competitively
• Reduce Expenses
• Recruit and Retain Top-Quality Employees
• Level Wages Between Prevailing Wage and Non-Prevailing Wage Work

ASGI has been providing consulting and administrative services for over 25 years.  Our staff has the experience and expertise to assist you in all phases of your plan.