Benefits - Local 813 & 1034 Severance and Retirement Trust Fund

QUESTIONS & ANSWERS

Here are answers to some of the questions people most frequently ask about the Plan:

Q: Does the benefit from this Plan affect the amount I get from my pension plan?
A: No, the benefit you receive from this Plan is completely in addition to your pension and Social Security benefits.

Q: Our daughter and son-in-law are buying their first house. Can I borrow or withdraw money from the Plan to help them with the down payment?
A: No, this plan does not allow participant loans or withdrawals.

Q: I recently read an article in the paper about the declining value of people’s retirement accounts. The article said this was due to the recent problems in the stock market. Has my Plan benefit declined in value?
A: No, your Plan benefit has not declined in value. The article you read was probably discussing 401(k) and other “defined contribution” individual account plans under which the benefit at retirement depends on the value of assets in the account at retirement or termination. This Plan is a “defined benefit” plan under which the benefit is calculated under a stated formula; the benefit calculated under this formula will not change if Plan investments decline in value.

Q: Alright, maybe I don’t have to worry about the daily ups and downs of the stock market. But how can I be sure the assets required to fund my retirement or severance benefits will be there when it’s time for me to retire?
A: The Fund assets are protected in a number of ways. First, the assets are held in a trust that is a separate legal entity and is not part of the assets of either the Union or the employers. Second, plan assets are professionally invested by a number of Investment managers. Third, the plan is audited every year by a firm of independent certified public accountants. Fourth, the federal government requires an annual filing, the Form 5500, that is a public document detailing the financial condition of the Fund. As part of this filing the government requires disclosure of the actuarial methods used to fund Plan benefits. These methods must meet certain government standards. Finally, the Pension Benefit Guaranty Corporation (the “PBGC”), a federal agency, insures certain benefits provided by the Plan, thus guaranteeing that if the Plan had insufficient assets to pay Plan benefits, the PBGC would pay these benefits to the extent of the guarantee. There’s more information on the PBGC protection in the section called “Other Things You Should Know.”

Q: When’s the very earliest I can get my benefit?
A: In general, this will depend on your age and years of service. The normal retirement age is 62 or older. You can elect to receive a benefit at any age provided you are no longer covered under the jurisdiction of Local 813 employers and meet the eligibility requirements.

Q: I recently had an accident on the job and am out on disability. Does the plan have a disability benefit?
A: Not unless your Covered Employment ends and you otherwise qualify for a Plan benefit. The Plan does not have a disability benefit.

Q: How do I get an estimate of the current value of my benefit?
A: You are entitled to one annual estimate of benefits. Call the Fund Office to request an estimate form.

Q: How do I go about giving you a change of address?
A: Call the Fund Office to request an address change form. Address changes will not be accepted over the phone and must be submitted in writing. Change of Address Form

Q: When are benefits paid?
A: If your benefit is paid in one lump sum, payment is usually made within 90 days after your completed retirement application is received. If your benefit is paid as a monthly annuity, payment is made at the beginning of each month, allowing 90 days for administrative processing.

Q: I’ve been receiving monthly payments under the normal form for married people for a few years and got divorced a couple of months ago. Next month I’m going to get married again. I’m receiving my payments under the 50% Joint and Survivor Annuity and want to change my beneficiary so that my new spouse, not my ex-spouse, will get the benefit due when I die.
A: No, you cannot do that. Once payments start under the Joint and Survivor Annuity form of payment, you can’t change anything. Your former spouse will receive the benefit if he or she survives you. (This is one reason why you should consider consulting an attorney who can help you identify and address issues relating to benefits and other property rights at the time of your divorce.)

Q: How is the Local 813 & 1034 Severance and Retirement benefit paid?
A: You have three options:

• You can elect to receive a lifetime monthly benefit. (Click here for more details.)

• You can elect to take a lump sum payment minus the 20% federal tax withholding. However, if you receive the payment before age 59 ½ , you may have to pay an additional 10% tax.

• You can roll over all or part of the payment by paying it to your traditional IRA or to an eligible employer plan. (Click here for SPECIAL TAX NOTICE REGARDING PLAN PAYMENTS.)