Elevator Constructors Union Local No. 1 Annuity and 401 (k) Plan...

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Elevator Constructors Union Local No. 1

Annuity and 401 (k) Plan

Retirement Seminar

November 9, 2016

ELEVATOR CONSTRUCTORS UNION LOCAL NO. 1

ANNUITY AND 401 (K) PLAN

RETIREMENT SEMINAR

Presenters

National Elevator Industry Pension PlanRob Betts, Executive Director

Jim Govannicci, Benefit Manager Pension Plan

ECU Local No. 1 Annuity and 401(k) PlanJoan Groarke, Fund ManagerLucille Hart, Administrator

Paul Romano, Client Services Manager

Vanguard (ECU Local No. 1 401(k) Plan)Amy Todd

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WHERE WILL MY RETIREMENT INCOME COME FROM?

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National Elevator Industry Pension Plan

ECU Local No. 1 Annuity Plan

ECU Local No. 1 401(k) Plan

Personal Savings

Real Estate

Social Security

PENSION PLANS

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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 - $8.51 per hour

For service work - $8.36 per hour

Total of all Contributions

- Loan Balance

- Withdrawals

+/- Investment Income

- Operating Expenses

--------------------------------------

= Annuity Account Balance

PENSION PLANS CONTINUED

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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

2013 Annual Limit $17,500 + $5,500 Catch-up





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.

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LOCAL NO. 1 ANNUITY AND 401(K) PLAN

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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.


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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.

LOCAL NO. 1 ANNUITY AND 401(K) PLANHow will my Annuity Account be Paid to Me?

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1. Lump Sum Payment - Rollover over or direct payment to Participant –

Available for both Annuity Account and 401(k)

2. 10 Annual Installments – methods are different under each plan

3. Qualified Joint and Survivor Annuity (monthly benefit to Participant

with survivor benefit to spouse) – Available for Annuity Account only

4. Straight Life Annuity (monthly with no survivor benefit) – Annuity only

5. Investment Yield Only – Applies to Annuity Account only

6. Partial Lump Sum Payment with 10 annual installments

7. Up to 5% of Account Balance each year – Retirees only


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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)

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.

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LOCAL NO. 1 ANNUITY AND 401(k) PLAN

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.

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When should I apply for my Account?

Rules apply Annuity Account Only


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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.

Do I have to pay taxes when I receive my Annuity and 401(k) Accounts?


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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


Special Features of the Annuity Plan

Loans

1. Mortgage*

2. Home Improvements and Repairs*

3. Purchase of Auto or Motorcycle (for employee transportation to/from work)*

4. Education*

5. Medical or Dental Expenses*

6. Funeral*

7. Disability ($700 per week)

8. Involuntary Unemployment ( $700 per week commencing with the 22nd day of unemployment)

9. Disaster Recovery

* Application processing fee applies

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Loans (continued)

Must have Annuity Account for at least 3 years or have had an account for atleast 3 years, took the account and are back 15 months and have a balanceof $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. OutstandingPrincipal and Interest are considered income to you and subject tofederal, state and local taxes. (Additional penalties may apply)

If you are in default on a loan, you cannot take another loan.

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1. Purchase of Primary Residence 8. Eviction or Foreclosure

2. Medical 9. Disaster Recovery

3. Education 10. Funeral

4. Disability 11. Long Term Care

5. Child Support 12. Involuntary Unemployment

6. Certain Legal Expenses 13. Adoption

7. 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

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Special Financial Needs Withdrawals


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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: https://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

https://www.benserconj.com/

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 Trustees Employer Trustees

Leonard Legotte Rick Amarosa (EMANY)

Michael Riegger Andy Werkhoven (Schindler)

Steve Mazza Vincent Schiavone (Kone)

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Elevator Constructors Union Local No. 1 Annuity and 401 (k) Plan...

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