Employee Benefit Funds ($25,000) Bond - IUOE Local 825 in New Jersey

Brief Summary

The Local 825 Funds treat $25,000 as a floor, not a fixed price, and an employer carrying less bond than the Funds require is treated as delinquent. We issue the bond on the Funds' own 2025 form so it can be filed with the Funds Office in Springfield without a rewrite.

Contractors signatory to a collective bargaining agreement with International Union of Operating Engineers Local 825 must maintain a surety bond of at least $25,000 in favor of the IUOE Local 825 Employee Benefit Funds, unless the agreement provides otherwise. The bond guarantees payment of the fringe benefit contributions owed under the agreement, and the Trustees can raise the required amount to match the employer's average contributions over any three consecutive months.

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How to Apply for a Employee Benefit Funds ($25,000) Bond:

• Confirm the bond amount with the Local 825 Funds Office, since the Trustees can require more than $25,000.
• Decide whether weekly reporting and payment, which can waive the bond, works for your payroll.
• Provide the legal company name exactly as it appears on your collective bargaining agreement with Local 825.
• Complete the bond application and allow the surety to review owner and company credit.
• Have the bond issued on the IUOE Local 825 Funds bond form with notarized signatures from the surety and the employer.
• Deliver the executed bond to the Funds Office at 65 Springfield Avenue, 2nd Floor, Springfield, NJ 07081.

Detailed Information About the New Jersey Employee Benefit Funds ($25,000) Bond:

$25,000 is the minimum, not the ceiling

Section 18 of the Local 825 Funds Employer Contribution Collection Policy requires contributing employers to maintain a minimum bond of $25,000 unless the applicable collective bargaining agreement provides otherwise. The Trustees can adjust the amount upward to equal the average contributions the employer made during any consecutive three month period. An employer with a large monthly contribution can be asked for more than $25,000.

Carrying too little bond is itself a delinquency. The Fund Administrator reviews bonding compliance quarterly and starts collection procedures against employers who fall short. The Funds are entitled to liquidated damages of 20% of the difference between the bond the employer holds and the amount the policy calls for.

The weekly reporting waiver

The Funds' employer FAQ states that the bonding requirement may be waived by reporting and paying contributions weekly. An employer who wants that option submits its intent on company letterhead to the Funds Office by email, fax or mail.

What the bond guarantees

The Funds publish their own bond form. It names the International Union of Operating Engineers Local 825 Employee Benefit Funds as obligee, covering the pension, welfare, apprenticeship training, supplemental unemployment benefit, savings and profit sharing funds. The penal sum is $25,000 in the aggregate. The surety guarantees the fringe benefit contributions due at the rates set by the collective bargaining agreement, and payment is due within 30 days after the Funds give notice of a delinquency. If the employer does not file its reports, the Funds may estimate what is owed. The bond stays in force until terminated, and the surety must give the employer and the Funds at least 60 days' written notice before termination. Both the surety and the employer sign with notarized acknowledgments.

The contribution rules the bond backs

Under the Collection Policy, contributions are due by the last day of the month following the month the work was performed, unless the agreement sets a different date. Late contributions carry interest at 2% above the prime rate of the Funds' depository bank as of July 1, plus liquidated damages equal to the greater of the interest owed or 20% of the unpaid contributions. After an arbitration award, the Fund Administrator may file a claim against the employer's bond or letter of credit.

Alternatives to a surety bond

An employer that cannot obtain a bond may post a cash security deposit in the same amount, under a written escrow agreement approved by the Funds' Audit and Delinquency Committee. The Funds Office also publishes letter of credit and personal guarantee forms. Confirm with the Funds Office which form of security it will accept for your agreement before you file.

Eligibility and Requirements for a New Jersey Employee Benefit Funds ($25,000) Bond:

• Minimum bond of $25,000 unless the collective bargaining agreement provides otherwise.
• Obligee named as the International Union of Operating Engineers Local 825 Employee Benefit Funds.
• Bond amount subject to increase up to the employer's average contributions over any three consecutive months.
• At least 60 days' written notice from the surety before the bond can be terminated.
• Bond kept at the required level at all times, with quarterly compliance reviews by the Fund Administrator.

New Jersey Employee Benefit Funds ($25,000) Bond FAQs:

Official and Additional Resources for the New Jersey Employee Benefit Funds ($25,000) Bond: