NEW TAX LAW TO SPUR GROUP LEGAL-SERVICE PLANS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP87-00868R000100030038-2
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 22, 2016
• Document Release Date: August 20, 2009
• Sequence Number: 38
• Publication Date: January 15, 1977
• Content Type: OPEN SOURCE

Approved For Release 2009/08/20: CIA-RDP87-00868R000100030038-2
r"Potential Value ;, i :.. :v .~ .?
Because of ` the variation in kinds } Benefits to Lawyers
of plans., a ,,t icai one 'is' difficult Most plans,` particularly the corn
A-to,describe One of the-rnost ambitious pang and ;union-run one3, are ('closed'
is -.run:. by the Teamsters Union in=;:panel",plans; In. which 1' member,must~
rAlaskg' Members pay 1 cents` per goy to a staff 'lawyer or one selected'i
working hour-; anfl are [eligible for In _ advance by ;the plan In closed-
almost any ;legal ?'service:.'you can. panel pperati'ons, the plan's organizers_
1lmagine? rom''the cradle t#-the grave, nFcan ? bargain's with'. lawyers or` heed
land: beyond,' , says. the ABA' official' schedules below, the ,going iate.,in the .
1Hm_ says.;the ,potential value of :legal ,community '',(usually' $40 -$60 an' hour
services under tithe - Teamsters in plant din' big cities) -Participating lawy-ers~
cou d run to `,$20,000 for the member'benefit through increased volume of
{`and s or each of his dependents.'---- ,, work and more economical operation;
rof.
#their-'office -."because of thee-steady`
Under most, company, or union ? s
flow, o similar kinds of work In"open .
;plans;".worker's are' f
assessed-` between t
5 and 7 cents an hour. ;Coverage panel plans, a member : can xchoose
Vis less""extensive_''than; in the, Team his own lawyer, with the plan usual
sters -plan' Most pians ' have limited yam ang~ set amuntfor services;
,or no, coverage for' criminal' matters, ',regardless of what the lawyer Y. may
contingent fee' cases (such :as_ suing charge
for damages ,for ari? njury),' a 'mom Group -legal plans .,offering limited J
ber's outside ,business, operations, or coverage,-were first set, up in, 1899, ]
legal- conflicts between ? employe and' but the' Shreveport plan' six years ago
.management.: But the 'legal needs of was the",first' to offer `sizable benefits
the average. American-wills, divorces,` and stay in operation? The` plans were
traffic problems, 'landlord-tenant dif- given::a =boost in.1973 , when an amend
ferences,'" income taxes-. usually- are ment to the Taft-Hartley Act author-.'
included. ized? company contributions 'for group
;'. Legal-service plans 'also emphasize legal-service plans arranged under col
preventive .law. The plans seek to. edu lective bargaining. Another hindrance.
cafe npembers - to recognize 'potentiaf to. : fhe'., plans - was removed' in '1975;
"I problems and to take': steps to when the ABA -ended' its opposition' to
avoid them. There's some indication closed-panel plans.
~4hat_, plan., members do act to avoid The . final obstacle was the -lack of
such problems. A study of,_the . first tax-exempt status for the.. plans. That
substantial legal-service plan; an ABA-' was. knocked down by the tax act last
sponsored plan set:-up by a construe- year;; "Lots of unions have held back
lion union.'in;`Shreveport, La.-, showed on seeking. the plans as fringe bene-1
that inembers'wentto lawyers twice, as fits'because of the tax problem," says
often after, joining the plan as_ before. ? the ABA official. "Now they ,ll be. A few plans also, offer,, counseling by' pushing for them. - There's ?no ques- i
social workers. tion but there will be a big expansion ;
in the number of plans this- year and
.in years to come.". ,
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Approved For Release 2009/08/20: CIA-RDP87-00868R000100030038-2