The Próspera Labor Benefit Fund (LBF) is a trust account created and funded by the employer for the benefit of each qualifying employee. You can think of this account as a kind of retirement account. The fund must be maintained by a financial institution that complies with the Próspera Industrial Regulation Statute. You can find available financial institutions here.
The fund is structured as a trust account where the employer is the settlor and trustee, the complying financial institution is the non-fiduciary administrative custodian, and the employee is the beneficiary.
The employer must contribute to the fund on a quarterly basis (no later than 7 days after the last day of a quarter) using one of the structures below:
10% of the gross compensation paid for work performed in Próspera in the immediately preceding quarter provided the employee has signed a written acknowledgment waiving their rights to customary benefits, such as the "13th and 14th month salary".
25% of the gross compensation paid for work performed in Próspera in the immediately preceding quarter if the Employee did not previously sign a written acknowledgment waiving their rights to customary benefits, such as the "13th and 14th month salary".
For more details on how the contribution percentage is calculated see: Key Terms for Employment
Additional contributions to the Labor Benefit Fund, or contributions for non-qualifying employees, can be negotiated between employer and employee. The employee may also contribute funds directly, subject to any terms and conditions established by the employer.
If available, up to 90% of the Labor Benefit Fund can be invested.
Subject to any plan agreements, employees can request disbursement from their respective Labor Benefit Fund for any of the following qualifying events:
Upon reaching the age of 62.
Upon becoming permanently disabled.
As needed to pay bona fide medical bills for the Employee or the Employee’s immediate family evidenced by commercially reasonable documentation, provided that at least 50% of the amount of historical aggregate contributions remain held in trust.
As needed to pay the costs of education for the Employee or the Employee’s immediate family evidenced by commercially reasonable documentation, provided that at least 50% of the amount of historical aggregate contributions remain held in trust
As needed to pay for shelter of the Employee or the Employee’s immediate family evidenced by commercially reasonable documentation, provided that at least 50% of the amount of historical aggregate contributions remain held in trust.
As needed to pay for insurance premiums for coverage relating to general liability, legal representation, medical care or disability, provided that at least 50% of the amount of historical aggregate contributions remain held in trust.
As needed to pay for fees charged for access to justice by the Próspera default Arbitration Service Provider or Próspera Court, provided that at least 50% of the amount of historical aggregate contributions remain held in trust.
As needed to pay for attorneys’ fees and litigation expenses relating to matters pending before the Próspera default Arbitration Service Provider or Próspera Court, provided that at least 50% of the amount of historical aggregate contributions remain held in trust.
For loans or in cases of hardship as determined in the reasonable discretion of the Employer, which may be further defined in a plan agreement, provided that at least 50% of the amount of historical aggregate contributions remain held in trust.
To pay customary “13th and 14th month” compensation, vacation, or holiday pay provided that the Employee previously did not sign a written acknowledgment waiving their rights to customary benefits, such as the "13th and 14th month salary".
Plan Agreement
The employer, as trustee, may establish a more detailed Plan Agreement, including vesting terms, with each qualifying employee to govern the administration of that Employee’s Próspera Labor Benefit Fund, with which the complying financial institution shall comply. However, a Plan Agreement may not contain terms that require an employee to forfeit either:
The employer’s minimum contribution to that employee’s Próspera Labor Benefit Fund except for good cause consisting of proof of Tortious Conduct by Employee that injured the Employer; or
Any contribution to that Employee’s respective Próspera Labor Benefit Fund that has been made by any person other than the Employer.
Annual Report
The employer is required to furnish the General Service Provider (GSP) with an annual report on the aggregate amount paid towards the Próspera Labor Benefit and cooperate with all reasonable requests from the GSP for substantiation. This information may be shared with the Próspera Technical Secretary in its capacity as Labor Relations Inspector.
Disbursement Process
The employer is responsible, as trustee, to review disbursement requests and ensure they meet the requirements of a qualifying event and are compliant with the Plan Agreement. This includes collecting and storing any supporting documents or commercially viable evidence associated with the disbursement request.
Once sufficient evidence has been collected, a disbursement direction should be submitted to the custodian of the Labor Benefit Fund which will include the amount, purpose of funds, employee & employer information, balance before disbursement, and aggregate contributions.
The custodian will review and disburse the funds according to the disbursement direction.
Requirements to be a Labor Benefit Fund Custodian
The requirements to be a Próspera Labor Benefit Fund custodian, as stated in the Próspera Labor Statute, include being a "Complying Financial Institution". A Complying Financial Institution is any financial institution that complies with the Próspera Industrial Regulation Statute, and which is designated as non-fiduciary administrative custodian for a trust account established for the purpose of maintaining the Próspera Labor Benefit Fund by the respective Employer as the settlor and trustee of the fund. An Employer can simultaneously serve as a Próspera Labor Benefit Fund custodian if it also qualifies as a Complying Financial Institution; although the various capacities in which an Employer must serve could create a greater risk of legal jeopardy.