Presentation Transcript

1. Elevator Constructors Union Local No. 1 Annuity and 401 (k) Plan Retirement Seminar October 3, 2013
2. Elevator Constructors Union Local No. 1Annuity and 401 (k) Plan Retirement Seminar Presenters National Elevator Industry Pension Plan Rob Betts, Executive Director Jim Govannicci, Benefit Manager Pension Plan ECU Local No. 1 Annuity and 401(k) Plan Rita Wisniewski, Fund Manager Lucille Hart, Administrator Vanguard (ECU Local No. 1 401(k) Plan) Amy Mulhern
3. National Elevator Industry Pension Plan ECU Local No. 1 Annuity Plan ECU Local No. 1 401(k) Plan Personal Savings Real Estate Social Security WHERE WILL MY RETIREMENT INCOME COME FROM?
4. PENSION PLANS ECU Local No. 1 Annuity Plan – Defined Contribution Plan Contribution is defined in collective bargaining agreement For example, current Annuity contribution rates for Journeypersons are: For construction work - $7.96 per hour For service work - $7.81 per hour Total of all Contributions - Loan Balance - Withdrawals +/- Investment Income - Operating Expenses-------------------------------------- = Annuity Account Balance
5. PENSION PLANS continued ECU Local No. 1 401(k) Plan – Defined Contribution Plan Pre-tax Employee Contribution % of Wages or Flat Dollar Amount up to Annual Statutory Limit 2009 Annual Limit $16,500 + $5,500 Catch-up 2010 Annual Limit $16,500 + $5,500 Catch-up 2011 Annual Limit $16,500 + $5,500 Catch-up 2012 Annual Limit $17,000 + $5,500 Catch-up 2013 Annual Limit $17,500 + $5,500 Catch-up
6. LOCAL 1 ANNUITY AND 401(K) PLAN When do I begin Participation in the Plan? For the Annuity portion, participation is automatic. You begin participation on the first day you work for an Employer that makes contributions to the Local 1 Fund. For the 401(k) portion, participation is voluntary. You decide if and when you want to participate.
7. LOCAL NO. 1 ANNUITY AND 401(k) PLAN How will I know how much is in my Annuity Account? The Fund Office will send you a Statement each quarter. You will also receive an Annual Statement which will show the Investment Income and Administrative Expense for the prior year. Annual Statements are generally mailed at the end of May or beginning of June, when the returns of all the Fund’s Investment Managers have been calculated and verified.
8. LOCAL NO. 1 ANNUITY AND 401(k) PLAN When can I withdraw my Account? Age 65 Leave the Industry (no contributions for 6 months) Retire from the NEI Pension Plan Declared Totally and Permanently Disabled by SSA Attain age 70½ - Minimum Distribution must be paid Am I required to take my Account when I retire or leave the Industry? No, unless you are age 70½ and then you must receive a Minimum Distribution.
9. LOCAL NO. 1 ANNUITY AND 401(k) PLANHow will my Annuity Account be Paid to Me? Lump Sum Payment - Rollover over or direct payment to Participant – Available for both Annuity Account and 401(k) 10 Annual Installments – methods are different under each plan Qualified Joint and Survivor Annuity (monthly benefit to Participant with survivor benefit to spouse) – Available for Annuity Account only Straight Life Annuity(monthly with no survivor benefit) – Annuity only Investment Yield Only – Applies to Annuity Account only Partial Lump Sum Payment with 10 annual installments Up to 5% of Account Balance each year – Retirees only
10. LOCAL NO. 1 ANNUITY AND 401(k) PLAN What happens to my Annuity and 401(k) Accounts if I die? Before you Retire: If married, your Spouse receives your Account unless you designated another person and your spouse consents If not married, you may name anyone as Beneficiary Designated Beneficiary under NEI Pension Plan Your estate After You Retire: No one, if you received a Lump Sum or Straight Life Annuity Spouse, if you are receiving a QJSA Designated Beneficiary for all other payment methods Special Note:Qualified Domestic Relations Orders (QDRO’s)
11. LOCAL NO. 1 ANNUITY AND 401(k) PLAN When should I apply for my Account?Rules apply Annuity Account Only If your Application is postmarked or hand delivered to the Fund Office by March 31, you will receive your Account in two installments in the year in which you apply. 80% of your Account will be paid to you as soon as it is processed, but no earlier than 30 days after the Fund Office sends you the Application for Distribution. The remaining 20% of your Account plus or minus the prior year’s Yield and Operating Expenses will be paid to you later in the same year (generally in June) after these numbers have been calculated and verified.
12. When should I apply for my Account?Rules apply Annuity Account Only If your Application is postmarked or hand delivered to the Fund Office on or after April 1, you will receive your Account in two installments. The first payment will be made to you in the year in which you apply, and the second payment will be paid to you in the following year. First Payment - 80% of your Account will be paid to you as soon as your Application is processed, but no earlier than 30 days after the Fund Office sends you the Application for Distribution. Second Payment - The remaining 20% of your Account plus/minus a pro rata share of the current year Yield and Operating expenses will be paid in the following year (generally in June) after these numbers have been calculated and verified.
13. LOCAL NO. 1 ANNUITY AND 401(k) PLAN Do I have to pay taxes when I receive my Annuity and 401(k) Accounts? Yes! Federal, state and local taxes are due when the Account is paid to you. (The Fund Office will withhold Federal taxes; you are responsible for payment of state and local taxes.) However, if you rollover your Account(s) to a traditional IRA or other qualified plan, no taxes are withheld at the time of the rollover. Taxes are due when you withdraw the money from the IRA or other Plan. If you take a lump sum and do not roll it over or roll over only part of it, the amount paid directly to you is subject to mandatory 20% federal income tax withholding. Payments not eligible for rollover (e.g., 10 annual installments, monthly annuity) – Mandatory 10% withheld unless you elect other amount.
14. LOCAL NO. 1 ANNUITY AND 401(k) PLAN Tax Consequences 10% penalty for withdrawal prior to 59½ unless rolled over (exceptions include separation from service during or after age 55 and retirement due to disability) Special tax treatment for individuals born before 1/1/36 (10 year average or capital gain – see accountant) Spouse has same options as Employee
15. LOCAL NO. 1 ANNUITY AND 401(k) PLAN Special Features of the Annuity Plan Loans Mortgage* Home Improvements and Repairs* Purchase of Auto or Motorcycle (for employee transportation to/from work)* Education* Medical or Dental Expenses* Funeral* Disability ($700 per week) Involuntary Unemployment ( $700 per week commencing with the 22nd day of unemployment) Disaster Recovery * Application processing fee applies
16. Special Features of the Annuity Plan Loans (continued) Must have Annuity Account for at least 3 years or have had an account for at least 3 years, took the account and are back 15 months and have a balance of $5,000 or more Maximum loan – 50% of account, not to exceed $50,000 Must be repaid through Payroll Deduction Interest goes back into your Annuity Account Default – Fund Office must issue a Form1099R to you. Outstanding Principal and Interest are considered income to you and subject to federal, state and local taxes. (Additional penalties may apply) If you are in default on a loan, you cannot take another loan.
17. Special features of the Annuity Plan Special Financial Needs Withdrawals Purchase of Primary Residence 8.Eviction or Foreclosure Medical 9.Disaster Recovery Education 10. Funeral Disability 11.Long term care Child Support 12.Involuntary Unemployment Certain Legal Expenses 13.Adoption Real Estate Tax Liability 14. Income Tax Liability Limit of 2 withdrawals in any 12 month period Maximum of $50,000 in withdrawals in any 12 month period
18. Write or Call the Fund Office at – ECU LOCAL NO. 1 ANNUITY AND 401(k) PLAN 140 Sylvan Avenue, Suite 303, Englewood Cliffs, NJ 07632 (201) 592-6800 (855) 521-6111 or Visit our Web Site at: www.benserconj.com and click on the Local 1 logo If you have questions To change your address or marital status To request a Beneficiary Designation form To apply for your Annuity and 401(k) withdrawals LOCAL NO. 1 ANNUITY AND 401(k) PLAN
19. ELEVATOR CONSTRUCTORS UNION LOCAL No. 1 ANNUITY AND 401(k) PLAN 140 Sylvan Avenue, Suite 303, Englewood Cliffs, NJ 07632 (201) 592-6800 (855) 521-6111 Union TrusteesEmployer Trustees Leonard Legotte E. James Walker, Jr. (EMANY) Michael Riegger Michael Shields (Schindler) Steve Mazza Vincent Schiavone (Kone)