Terms of Participation
For employers and Locals subject to collective bargaining, IAFF MERP terms of participation are made mandatory pursuant to the Memorandum of Understanding/Collective Bargaining Agreement between the employer and the Local. Required MOU/CBA provisions include:
- Defined Eligible Class of employees participating (no employee in the Defined Class is permitted to opt-out of participation or receive any portion of contributions in cash).
- Source(s) and amount(s) of contributions (e.g., employee and/or employer contributions, leave transfers, etc.)
- Employer commitment to withhold, transfer, and report contributions to the Trust.
Note regarding Janus decision: Employees opting out of union membership, but who are still bound by the terms of the MOU/CBA, must mandatorily participate in IAFF MERP if they would otherwise be included in the Defined Class of participating employees.
IAFF MERP will assist with development of approved bargaining language. Trust legal counsel will review and approve all bargaining language for IRS compliance prior to adoption and commencement of contributions to the Trust.
PROMOTING EMPLOYEES. Employees promoting out of the Local and into another bargaining unit (e.g., a management unit) may continue contributions to IAFF MERP pursuant to the terms of the MOU/CBA applicable to that unit. If the management unit MOU/CBA does not contain IAFF MERP provisions, contributions must cease.
Employees promoting out of the Local to a non-represented classification may only make contributions to IAFF MERP subject to a Resolution adopted by the employer’s governing body, making contributions mandatory. IAFF MERP will assist with the development of such a Resolution.
Non-Bargaining Considerations
For Locals without collective bargaining, IAFF MERP contributions can be made pre-tax or post-tax. Contributions can be employer-funded or employee-funded but must be restricted to dues-paying members of the IAFF Local. Non-Association members must be excluded from participating.
PRE-TAX CONTRIBUTIONS require:
- Special Agreement in place between the Trust, the Employer, and the Local
- The Special Agreement must make contributions mandatory on behalf of all Local members within the Defined Class.
IAFF MERP will assist with the development of an approved Special Agreement. Trust legal counsel will review and approve the Special Agreement for IRS compliance prior to adoption and commencement of contributions to the Trust.
POST-TAX CONTRIBUTIONS are permissible, and no Special Agreement is needed with the Employer. However, a Joinder Agreement is req