Wage and Fringe Benefits ($10,000) Bond - Sheet Metal Workers International Association, Local No. 24 in Ohio
Table of Contents
Brief Summary
The $10,000 figure traces to a 2016 National Joint Adjustment Board decision for SMART Local 24's Dayton area, which told the Miami Valley parties to require each employer to post a $10,000 fringe benefit bond for both the local pension fund and welfare fund. A surety bond lets a signatory contractor meet that requirement without parking $10,000 in cash with the funds.
Employers signed to the SMART Local 24 agreement with the Sheet Metal and Roofing Contractors Association of the Miami Valley post this $10,000 fringe benefit bond to back their contributions to the Local 24 pension fund and welfare fund. It is a local fund bond. A separate guaranty bond for the national funds can also be required under Article VIII, Section 16 of the same agreement.
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How to Apply for a Wage and Fringe Benefits ($10,000) Bond:
- Confirm you are signing or working under the Miami Valley (Dayton district) Local 24 agreement.
- Get the exact obligee names for the Local 24 pension fund and welfare fund from the fund office.
- Ask whether one $10,000 bond covering both funds is accepted or a bond is needed for each fund.
- Provide the company's legal name and owner information for the surety's credit review.
- Sign the indemnity agreement and pay the premium.
- Deliver the executed bond to the fund office and keep proof of delivery.
Detailed Information About the Ohio Wage and Fringe Benefits ($10,000) Bond:
Where the $10,000 comes from
In June 2016 the National Joint Adjustment Board for the Sheet Metal Industry issued an unanimous, binding decision on the Dayton area agreement between SMART Local Union 24 and the S/M and Roofing Contractors Association of Miami Valley. It said Article VIII "shall include fringe benefit fund delinquency procedures. In addition, it shall require each employer to post a $10,000 fringe benefit bond for both the local pension fund and welfare fund."
So this bond is tied to the Dayton district agreement, not to every Local 24 contractor in Ohio. Columbus and Cincinnati area work runs under separate area agreements with their own bonding clauses.
Who it applies to
The current Miami Valley agreement runs June 1, 2024 to May 31, 2028. It covers Allen, Auglaize, Butler, Champaign, Clinton, Clark, Darke, Greene, Hardin, Logan, Mercer, Miami, Montgomery, Preble, Shelby, Van Wert, Warren and Wyandot counties in Ohio, plus Wayne and Randolph counties in Indiana.
The national fund bond is a different instrument
Article VIII, Section 16 says that if the agreement or the Local requires a guaranty or performance bond, it guarantees payments to the Sheet Metal Workers' National Pension Fund, SASMI, NEMIC, SMOHIT, ITI and the National Supplemental Savings Plan. That bond is furnished to the National Pension Fund within fifteen days of signing and stays in force until the agreement ends. Do not assume the $10,000 local bond satisfies it.
What happens without it
Addendum IV requires fund payments by the 15th of each month for the prior month's work. After 72 hours' notice of nonpayment, the union may suspend work until delinquent payments are made. Under federal law, 29 U.S.C. 1145 obligates every contributing employer to pay as the plan and agreement require, and 29 U.S.C. 1132(g)(2) lets the funds recover unpaid contributions, interest, liquidated damages and attorney fees. The bond gives the funds a source of payment when an employer falls behind.
Before you buy
Ask the Local 24 fund office whether it wants one bond naming both the pension and welfare funds or a separate bond for each, and get the exact obligee wording. The decision does not spell out the obligee wording.
Eligibility and Requirements for an Ohio Wage and Fringe Benefits ($10,000) Bond:
- Bond amount of $10,000 as set by the 2016 NJAB decision for the Dayton area.
- Coverage that backs contributions to both the local pension fund and the welfare fund.
- A separate national fund guaranty bond if the agreement or the Local requires one under Article VIII, Section 16.
- Monthly fund payments by the 15th for the prior month's work under Addendum IV.
- Bond kept in force for as long as you employ Local 24 members under the agreement.
Ohio Wage and Fringe Benefits ($10,000) Bond FAQs:
It comes from the NJAB decision for the Dayton district agreement with the Miami Valley contractors association. Central Ohio and Greater Cincinnati contractors sign separate area agreements, so check which agreement you signed.
The decision requires a $10,000 fringe benefit bond "for both the local pension fund and welfare fund." Ask the fund office whether it wants one bond naming both funds or one per fund before the bond is issued.
No. Article VIII, Section 16 covers a guaranty or performance bond for the national funds, delivered to the Sheet Metal Workers' National Pension Fund within fifteen days of signing. That is a separate requirement from this local fund bond.
Addendum IV of the Miami Valley agreement requires payment by the 15th of each month for work performed in the preceding month. After 72 hours' notice of nonpayment, work can be suspended until the delinquency is paid.
The surety prices the bond after reviewing the owner's credit and, for some applicants, company financials. You pay a premium for the bond term instead of depositing the full $10,000.
