Presentation on theme: "Elevator Constructors Union Local No. 1"— Presentation transcript:
1 Elevator Constructors Union Local No. 1 Annuity and 401 (k) PlanRetirement SeminarOctober 3, 2013
2 National Elevator Industry Pension Plan Elevator Constructors Union Local No. 1 Annuity and 401 (k) Plan Retirement SeminarPresentersNational Elevator Industry Pension PlanRob Betts, Executive DirectorJim Govannicci, Benefit Manager Pension PlanECU Local No. 1 Annuity and 401(k) PlanRita Wisniewski, Fund ManagerLucille Hart, AdministratorVanguard (ECU Local No (k) Plan)Amy Mulhern
3 WHERE WILL MY RETIREMENT INCOME COME FROM? National Elevator Industry Pension PlanECU Local No. 1 Annuity PlanECU Local No (k) PlanPersonal SavingsReal EstateSocial Security
4 ECU Local No. 1 Annuity Plan – Defined Contribution Plan PENSION PLANSECU Local No. 1 Annuity Plan – Defined Contribution PlanContribution is defined in collective bargaining agreementFor example, current Annuity contribution rates for Journeypersons are:For construction work - $7.96 per hourFor service work $7.81 per hourTotal of all Contributions- Loan Balance- Withdrawals+/- Investment Income- Operating Expenses= Annuity Account Balance
5 PENSION PLANS continued ECU Local No (k) Plan – Defined Contribution PlanPre-tax Employee Contribution% of Wages or Flat Dollar Amount up to Annual Statutory Limit2009 Annual Limit $16,500 + $5,500 Catch-up2010 Annual Limit $16,500 + $5,500 Catch-up2011 Annual Limit $16,500 + $5,500 Catch-up2012 Annual Limit $17,000 + $5,500 Catch-up2013 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 theInvestment Income and Administrative Expense for the prioryear.Annual Statements are generally mailed at the end of May orbeginning of June, when the returns of all the Fund’sInvestment Managers have been calculated and verified.
8 LOCAL NO. 1 ANNUITY AND 401(k) PLAN When can I withdraw my Account?Age 65Leave the Industry (no contributions for 6 months)Retire from the NEI Pension PlanDeclared Totally and Permanently Disabled by SSAAttain age 70½ - Minimum Distribution must be paidAm 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) PLAN How 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 planQualified Joint and Survivor Annuity (monthly benefit to Participant with survivor benefit to spouse) – Available for Annuity Account onlyStraight Life Annuity (monthly with no survivor benefit) – Annuity onlyInvestment Yield Only – Applies to Annuity Account onlyPartial Lump Sum Payment with 10 annual installmentsUp 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 consentsIf not married, you may name anyone as BeneficiaryDesignated Beneficiary under NEI Pension PlanYour estateAfter You Retire:No one, if you received a Lump Sum or Straight Life AnnuitySpouse, if you are receiving a QJSADesignated Beneficiary for all other payment methodsSpecial Note: Qualified Domestic Relations Orders (QDRO’s)
11 When should I apply for my Account? Rules apply Annuity Account Only LOCAL NO. 1 ANNUITY AND 401(k) PLANWhen should I apply for my Account? Rules apply Annuity Account OnlyIf 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 Consequences10% 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 PlanLoansMortgage*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 atleast 3 years, took the account and are back 15 months and have a balanceof $5,000 or moreMaximum loan – 50% of account, not to exceed $50,000Must be repaid through Payroll DeductionInterest goes back into your Annuity AccountDefault – 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.
17 Special features of the Annuity Plan Special Financial Needs WithdrawalsPurchase of Primary Residence 8. Eviction or ForeclosureMedical Disaster RecoveryEducation FuneralDisability Long term careChild Support Involuntary UnemploymentCertain Legal Expenses AdoptionReal Estate Tax Liability Income Tax LiabilityLimit of 2 withdrawals in any 12 month periodMaximum of $50,000 in withdrawals in any 12 month period
18 LOCAL NO. 1 ANNUITY AND 401(k) PLAN Write or Call the Fund Office at –ECU LOCAL NO. 1 ANNUITY AND 401(k) PLAN140 Sylvan Avenue, Suite 303,Englewood Cliffs, NJ 07632(201) (855)orVisit our Web Site at:and click on the Local 1 logoIf you have questionsTo change your address or marital statusTo request a Beneficiary Designation formTo apply for your Annuity and 401(k) withdrawals
19 ELEVATOR CONSTRUCTORS UNION LOCAL No. 1 ANNUITY AND 401(k) PLAN140 Sylvan Avenue, Suite 303,Englewood Cliffs, NJ 07632(201) (855)Union Trustees Employer TrusteesLeonard Legotte E. James Walker, Jr (EMANY)Michael Riegger Michael Shields (Schindler)Steve Mazza Vincent Schiavone (Kone)