525120 - Health and Welfare Funds
If you're involved in managing or administering employee benefit plans or health and welfare funds, understanding NAICS code 525120 is crucial. This code specifically addresses establishments engaged in overseeing health and welfare funds, a vital part of the Finance and Insurance sector. In this blog, we’ll delve into the definition, industry relevance, business types, and size standards for NAICS code 525120 to help you navigate federal contracting, market research, or business classification with ease.
What is NAICS Code 525120?
NAICS code 525120 refers to the industry primarily focused on Health and Welfare Funds. These establishments are responsible for the management and administration of various health, welfare, and employee benefit funds that support members or beneficiaries by providing necessary benefits such as health coverage, welfare assistance, and some retirement benefits.
Key Highlights:
- This industry includes employee benefit plans (except pension)
- Covers health and welfare-related employee benefit plans
- Encompasses union health and welfare funds and similar trust funds
Sector and Industry Activities
Sector:
- Finance and Insurance
Typical Establishments under NAICS 525120:
- Employee Health Benefit Funds
- Welfare Benefit Funds
- Health and Welfare Trust Funds
These organizations help manage the collection, investment, and distribution of contributions toward healthcare and welfare benefits for employees or union members.
Size Standard & Eligibility
For businesses under NAICS code 525120, the Small Business Administration (SBA) size standard is:
| Size Standard | $40 Million (Average annual receipts) |
To qualify as a small business for government contracting and other purposes, your business must have average annual receipts of $40 million or less.
Detailed NAICS Code 525120 Information Table
| NAICS Code | Title | Description | Sector | Code Details | Size Standard |
|---|---|---|---|---|---|
| 525120 | Health and Welfare Funds | Establishments primarily engaged in managing and administering health and welfare funds, including employee benefit funds and similar funds | Finance and Insurance | Employee benefit plans (except pension), Funds, health and welfare, Health and welfare funds, Plans, health- and welfare-related employee benefit, Union health and welfare funds | $40 Million (Avg. annual receipts) |
Examples of Businesses under NAICS 525120
- Employee Health Benefit Funds – Organizations that administer health benefits exclusively for employees.
- Welfare Benefit Funds – Entities managing benefits related to welfare such as disability or unemployment assistance.
- Health and Welfare Trust Funds – Trusts that hold and administer funds supporting members’ health and welfare benefits.
These entities often work closely with unions, employers, and insurance providers to ensure proper fund management and compliance with regulatory standards.
Frequently Asked Questions (FAQ)
1. What types of funds are included under NAICS 525120?
This industry covers health, welfare, and other employee benefit funds excluding pension funds. It primarily includes funds set up for health insurance, welfare benefits, and some retirement-related benefits.
2. Is pension fund management included in this NAICS code?
No. Pension fund management is excluded. NAICS 525120 focuses on health and welfare funds rather than pension funds.
3. What is the SBA size standard for businesses in this category?
The SBA size standard for NAICS 525120 is $40 million in average annual receipts.
4. Which sector does NAICS 525120 fall under?
It falls under the Finance and Insurance sector.
5. Can unions operate health and welfare funds under this NAICS code?
Yes. Union health and welfare funds are a primary example of businesses classified under NAICS 525120.
Conclusion
Understanding NAICS code 525120 is essential for businesses and organizations engaged in managing health and welfare funds. This NAICS code not only helps classify entities within the Finance and Insurance sector accurately but also aids in determining size standards and eligibility for government programs and contracts. Whether you operate an Employee Health Benefit Fund, a Welfare Benefit Fund, or a Health and Welfare Trust Fund, aligning your business activities with NAICS 525120 ensures regulatory compliance and industry recognition.
Use this comprehensive guide as your resource to navigate the health and welfare funds industry effectively!
Keywords: NAICS 525120, Health and Welfare Funds, Employee Benefit Funds, Finance and Insurance Sector, Small Business Size Standard, Health and Welfare Trust Funds, Union Health Funds, Welfare Benefit Funds
