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New Reciprocal Transfer System Goes On-Line

August 29, 2001

The IBEW is initiating a new and streamlined IBEW-NECA Electronic Reciprocal Transfer System (ERTS).  Now in the final stages of development, the Internet-based system is expected to be up and running on-line by January 1, 2002.

Construction branch locals and rank-and-file members who work as travelers will soon be able to enjoy the advantages of the new system which is designed to expedite the transfer of pension and health and welfare payments to the home funds of members who travel to find employment through other IBEW locals with jobs to fill.

In late July, the Reciprocal Administrator advised all parties to both the Pension and Health and Welfare Reciprocal Agreements of the development of a web-based private network to eventually replace the paper system we currently use under these Agreements.

A prototype of the ERTS system will be available for demonstration at the Electrical Industry Expo held prior to the 36th IBEW International Convention in San Francisco, said Reciprocal Administrator James F. Combs, of the IBEW. The expo runs from September 7-9, and the convention from September 10-14.  IBEW International President Edwin D. Hill will formally announce the introduction of the system at the convention.

Check Out the Demo at the Convention

Interested parties are invited to stop by a demonstration booth at the expo to see how the new system works and offer their feedback. ERTS has been developed by Crunchy Technologies, which will sponsor the booth.

I encourage those attending the convention to please stop by the Crunchy Technologies Booth #728 to give us input on the system, said Combs. After the expo closes, the booth will be moved to the convention lobby area and will be available throughout the convention. While development of the ERTS system will be about 80 percent complete by the time of the convention, we will still be able to make minor changes based on the feedback, said Combs.

ERTS Easier for Participants:

The new on-line system will be much easier for participants. Travelers can fill out the form one time electronically and then simply update the listing on-line as necessary all through a link on the IBEW web site home page. By contrast, the old paper system for reciprocal transfers has to go through many hands and involves a time consuming multi-step process.

There will be links in the ERTS system to funds around the United States and Canada that are on-line.

Changes Under the New System:

ERTS will feature several changes from the current paper process and will help insure both the accuracy and timeliness of information and the transfer of money from fund to fund, said Combs. He listed four changes under the new system as follows:

1. Individual plan participants will be required to register with ERTS in order to utilize the system.  The initial registration process must be done in person (with positive identification required) at a construction local union or fund office that is a participant to the Reciprocal Agreements. After the initial registration, plan participants will receive a log-on and password that will allow them to log on to the system from any web connection and modify their registration profile as necessary.
2. Participating fund offices and their related local unions will have secure connections via the Internet to this site.
3. The system will provide for a private communications network between the funds and the local unions as well as the Reciprocal Administrators office.
4. The transfer of money from fund to fund will not take place across the ERTS System, but ERTS will provide a link that will allow funds to communicate either to their bank or a third-party automated clearinghouse (ACH) vendor, which will provide for the expedited and secure transmission of money from fund to fund.

Since the concept of an on-line reciprocal transfer system was first discussed at the IBEW-NECA Employee Benefits Conference in November 2000, several of the reciprocal funds have participated in roundtable discussions on development of the system.

To plan for implementation of the system, surveys have gone out to participating business managers and plan administrators to determine Internet connection capability and the ACH compliance of fund banks. Response to the surveys has been excellent, said Combs, and those who have not yet responded are encouraged to do so as soon as possible.

I want to again emphasize that this is a private network on the web which can only be accessed by a log-on and password, said Combs. All transactions to that site from fund offices or local unions will be encrypted for security of personal information.