Summary Plan Description
The International Union of Operating
Engineers Local 132 Annuity and Savings Fund was initially
established on June 1, 1990 with the purpose of providing Plan
participants with supplemental income after their retirement.
We are pleased to provide you with
this updated Summary Plan Description. This booklet defines and
describes the Annuity and Savings Fund benefits. This booklet
cancels and replaces all booklets and related material which you
have been previously issued.
The International Union of Operating
Engineers Local 132 Annuity and Savings Fund (“Plan”) provides
retirement benefits to participating employees who are members of
the local 132.
The Plan is an individual account
pension Plan established as a multi-employer Plan under the
collective bargaining agreement between the International Union of
Operating Engineers Local 132 (“Union”) and each Employer who has
signed such agreement. Your benefit is based solely on the amount
of money in your individual account in the Plan.
The Trustees are empowered to amend
the Plan and the benefits provided hereunder from time to time as
they in their sole discretion determine appropriate. Participants
will be advised of any material modification to the Plan by notice
forwarded to their last known address by first class mail, postage
prepaid.
The Trustees are empowered to
construe and interpret the Plan and this Summary Plan Description,
and any such construction and interpretation adopted by the Trustees
in good faith shall be binding upon the Union, Employers, Employees
and Participants.
The Plan is a multi-employer Plan
established pursuant to the collective bargaining agreement(s)
between the Union and the participating Employers. It is a flat
dollar contribution Plan not described in IRC section 412. It was
originally established June 1, 1990 and has been amended to meet
current law effective as of June 1, 2004.
If you were a Participant in the
Plan immediately prior to June, 2004, you will continue to
participate in the Plan. Otherwise, to become a participant in the
Plan you must be an “eligible employee”.
An eligible employee is defined as
an employee whose employment is governed by the terms of the
collective bargaining agreement between the Union and the adopting
employers. In addition, to being an eligible employee, you must
complete one or more hours of work under the collective bargaining
agreement.
However, if an employee is first
hired as a non collectively bargained employee but subsequently
become subject to the collective bargaining agreement and if he
completes at least 1,000 hours of work in the twelve (12)
consecutive month period commencing on his initial hire date then he
will enter the Plan retroactively back to his initial hire date.
If you are a re-employed Veteran, as
defined in Chapter 43 of Title 38 of the United States Code, your
Employer must make a contribution equal to the contribution that you
would have received had you not been in uniformed service. However,
your share of the net income (or loss) of the Trust, is ignored
during such protected period of uniformed service. For the purposes
of calculating the amount of the Employer contribution, your wages
during such period will be computed as the amount that you would
have received, but for your period of uniformed service. If your
wages for this period is not reasonably certain, then the wages that
you received for the twelve (12) month period immediately preceding
your uniformed service period will be used for the purposes of
calculating the employer contribution.
Your Employer makes a flat dollar
per hour contribution in the amount specified in the collective
bargaining agreement. This contribution is allocated to each
participant’s Account based on hours worked.
Internal Revenue Code contains
limitations on the amounts that can be contributed on behalf of each
Participant in the Plan. If the limit is inadvertently exceeded,
the excess will be reallocated in accordance with IRS rules.
Generally, these limitations will not apply to the Plan. If you
have any questions concerning the limitations, please contact the
Trust Office.
You will receive a statement of your
Account every three (3) months. This statement will indicate the
Employer contribution(s) allocated to your Account during the
reporting period as well as adjustments for any distributions, plan
expenses and earnings or losses.
You have the
opportunity to give investment instructions for the assets and the
balance in your individual account. The Fund offers a broad range
of investment alternatives from which you can select, each designed
with a specific investment objective.
In order to make informed decisions
regarding the investment alternatives, you should take the time to
review the information which is made available. You should also
determine your financial goals and risk tolerance before making any
investment decisions. Keep in mind, the fact that a particular
investment alternative is available under the Fund should not be
construed as a recommendation to invest in such option.
Should you not choose to direct how
your individual account balance is invested, your balance will then
be placed in the Trustee directed default fund, which is currently
the Federated Capital Preservation fund (or Stable Value fund).
The plan operates in accordance with
the requirements of the Employee Retirement Income Security Act of
1974 (“ERISA”) Section 404(c), which provides that the fiduciaries
of the plan may be relieved of liability for any losses which are
the direct and necessary result of investment instructions given by
the Participant or Beneficiary. The Fund is not responsible for any
losses which result from your investment instructions.
A “terminated participant” is any
person whose employment with the Employer who is signatory to the
collective bargaining agreement has been terminated, and such person
is not employed in the United States in the same industry and in a
trade, craft or job of a type covered by the Plan.
Any money contributed to your
Account by an Employer, and any earnings thereon are 100% vested at
all times.
Every terminated participant who has
attained age 65 (normal retirement age) shall, at his election, be
entitled to receive the value of his Account in the Plan.
Any Participant who has had his
Account for at least two Plan Years shall be given an option to
remove either one-half (½) or all of the Employer contributions and
earnings that have accumulated in his Account during the single Plan
Year that is two years prior to the date of the election. This
option will be given on a one time irrevocable basis at the end of
each applicable Plan Year. If the Participant elects not to remove
either one-half (½) or all of the applicable Plan Year’s
accumulations, the Participant may not elect in a subsequent Plan
Year to remove any of the amounts that he previously elected to keep
in his Participant’s Account until he becomes a Terminated
Participant, retires after attaining Normal Retirement, withdraws
union membership, or dies.
Upon becoming a Terminated
Participant, you will be given an option to receive all, or a
portion of, the benefit in your account. Alternatively, you may
also leave your account balance in the Plan until a later date.
If the death of a participant occurs
prior to receipt of his full benefit, the designated beneficiary
shall be entitled to receive 100% of the value of the deceased
participant’s Account.
If you are married, your beneficiary
shall be your spouse unless you are divorced or legally separated by
court order. Alternatively, you may name a beneficiary other than
the spouse, if the spouse waives the right to be beneficiary in
favor of another named beneficiary and such waiver is notarized or
witnessed by an authorized Plan representative. All beneficiary
designations must be in writing on the forms provided by the
Trustees. If there is no valid designation on file with the
Trustees, the beneficiary shall become one of the following in order
of priority:
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surviving spouse,
-
participant’s children
per stripes,
-
participant’s surviving
parents in equal shares,
-
participant’s estate
You will be entitled to Plan
benefits annually on June 1st, for the single plan year
which ended two years earlier and when you retire or withdraw union
membership from I.U.O.E. Local 132, AFL-CIO.
All benefit payments shall be
distributed as soon as administratively feasible.
The amount of your Plan benefit is
determined as of the last day of the Plan Year immediately prior to
the date you are paid. During the interim period between the last
days of the Plan Year immediately preceding the date you receive
your distribution and the day you receive such distribution, your
Accounts will not be adjusted for earnings or losses.
All payments will be made at your
election in one of three ways:
-
The purchase of an
annuity contract; or
-
One lump sum payment in
cash; or
-
Cash payments in
monthly, quarterly, semi-annual or annual installments over any
period not exceeding ten (10) years.
Distributions after Age 70½.
Regardless of any other rules hereunder, at any time after you
attain age 70½, if you are not a terminated participant, as defined
above, you may defer taking your distribution until you become a
terminated participant. If you are a terminated participant after
you attain age 70½, and you have elected to keep your Accounts in
the Plan, you must begin receiving minimum distributions each year
calculated in accordance with the requirements of Section 401(a)(9)
of the Internal Revenue Code and the final Treasury Regulations
thereunder.
In general, your interest in your
Accounts and the interests of other persons entitled to benefits
under the Plan may not be voluntarily or involuntarily assigned,
sold or transferred and are not subject to the claims of any
creditors.
However, the Trustees may be
required by law to recognize obligations you incur as a result of
court-ordered child support or alimony. The Trustees must honor a
qualified domestic relations order ("QDRO"), which is a decree or
order issued by a court that obligates you to pay child support or
alimony, or otherwise allocates a portion of your interest in the
Plan to your spouse, former spouse, child or other dependent. If
such an order is received by the Trustees, all or a portion of your
Accounts may be used to satisfy the obligation. The Trustees will
determine the validity of any domestic relations order it receives
in accordance with its Qualified Domestic Relations Order Policy.
No, the Plan does not permit loans.
No, the Plan does not accept
transfers or rollovers from other qualified retirement Plans.
If you receive an eligible rollover
distribution from the Plan, mandatory Federal income tax withholding
of 20% of the amount distributed applies unless you elect a "Direct
Rollover" of your distribution. A Direct Rollover is a payment by
the Plan to an eligible retirement Plan specified by you, including
an individual retirement account ("IRA"). Most distributions from
the Plan, other than those required after age 70½ and certain death
benefit distributions, are considered eligible rollover
distributions. You will be advised by the Trustees at the time of
the distribution whether it may be rolled over to another Plan or
IRA.
Your Employer's contributions to the
Plan are tax deductible to the Employer as of the date they are
contributed to the Plan. However, the amount of that contribution
that is allocated to your account is not taxable to you until you
actually receive it from the Plan. Therefore, as long as you keep
the money in the Plan, neither the amount contributed by the
Employer on your behalf, nor the earnings thereon are taxable to
you. However, you will have to pay income tax on the amount in your
Account at the time you receive the money as a distribution from the
Plan, unless you elect to directly roll it over to an IRA or a
qualified Plan.
The Trustees can’t legally give you
tax advice. Accordingly, while the above is a correct summary of
the general rules, it is necessarily incomplete. At the time you
receive a distribution you will be given a statement of the tax laws
prepared by the IRS, known as a Special Tax Notice. In addition, at
the time you elect to receive a distribution from the Plan, you
should obtain individual tax advice because the tax laws are complex
and subject to frequent change.
The Annuity and Savings Fund is
intended to provide you with a secure supplement to your
retirement. However, situations may arise when you have an
immediate and heavy financial need for money. Hardship
Distributions allow you to access your account if you have incurred
a Hardship as defined by the Plan.
When considering a hardship
withdrawal, consult your tax advisor as the rules concerning federal
income taxation of benefits are complicated. Please make sure you
understand the tax consequences before you complete a Hardship
Distribution Application.
Participants can request a hardship
distribution from the portion of their account balance that has been
in their account for more than two (2) full calendar years preceding
the calendar year of the request for the hardship distribution.
The minimum amount of money that can
be withdrawn is $500 and the maximum amount has to be equal to the
amount necessary to satisfy the hardship request. Any hardship
distribution is subject to a mandatory 20% Federal Tax Withholding
and the Participant shall be responsible to pay any applicable
penalties the IRS may assess as a result of such distribution.
All requests for hardship
distributions must be supported by any bills and other necessary
documents showing there is a hardship and the amount of money
necessary to satisfy the hardship request.
A “hardship” under this section
shall be limited to one or more of the following:
-
Unreimbursed medical
expenses incurred by the Participant, his or her spouse or
dependents;
-
Purchase of a principal
residence for the Participant;
-
Payment of tuition for
the next semester or quarter of post-secondary education for a
Participant, his or her spouse, children or dependents;
-
Expenditures to prevent
eviction from a Participant’s principal residence or foreclosure
of a mortgage on the same;
-
Funeral expenses of an
immediate family member (spouse, child or parent) of the
Participant;
-
Amounts necessary to
prevent the repossession of an automobile owned by the
Participant if the automobile is necessary for the Participant
to reach his or her place of employment;
-
Payment of self-pay
premiums and COBRA premiums under the International Union of
Operating Engineers Local 132 Health and Welfare Fund.
-
You may receive a
hardship distribution application from the Fund Office or any of
the Union Offices. You may also receive an application directly
from the Recordkeeper.
-
Your spouse must consent
in writing to a hardship distribution and such consent must be
witnessed by a notary public or the Plan Administrator.
-
Hardship distributions
are subject to income tax, and may be subject to an additional
10% early distribution penalty if you are under the age of 59½.
-
Hardship distributions
may not be rolled over to an IRA or to another employer’s
retirement plan.
The Trustees have the sole and
absolute discretion to determine whether you are eligible for a
hardship distribution, the amount of any hardship distribution,
whether the requirements for obtaining a hardship distribution have
been satisfied and any other matter with respect to hardship
distributions. The Trustees judgment in connection with hardship
distributions is final and binding on all parties.
Generally, you need not make a claim
for your benefits under the Plan. However, you and your beneficiary
must keep the Trustees advised of the addresses at which each of you
can be located. If the Trustees don’t know your location when your
benefits become payable, they will mail notification to the most
recent address in their records. The Trustees will attempt to
locate any missing Participant or beneficiary through the Social
Security Administration or such other procedure as is required under
applicable law; however, it is the obligation of the Participants,
and their beneficiaries, to provide a change of address to the
Trustees.
A Participant or other person (or an
authorized representative) may file a written claim with the
Trustees for any benefits to which they believe they are entitled.
Within ninety (90) days after the
receipt of a written claim, the Trustees will provide the claimant
with written notice of their decision on the claim. If the claim is
wholly or partially denied, the written notice of the decision will
inform the claimant of:
-
The specific reasons for
the denial;
-
The specific provisions
of the Plan upon which the denial is based;
-
Any additional material
or information necessary to perfect the claim and reasons why
such material or information is necessary; and
-
The right to request
review of the denial and how to request such review. If written
notice of the decision is not given to the claimant within
ninety (90) days, after the Trustee’s receipt of a claim, the
claim shall be deemed to be denied for purposes of the
claimant’s right to request a review of the denial.
Within sixty (60) days after the
receipt of written notice of a denial of all or a portion of a
claim, the claimant or his or her authorized representative may
request a review of the denial by filing a written request with the
Trustees. The claimant's written comments on the claim may be
submitted to the Trustees along with the review request.
Upon receipt of a request for review
of a claim denial, the Trustees shall undertake a full and fair
review of the claim denial and provide the claimant with written
notice of its decision within sixty (60) days after receipt of the
review request.
The written notice of the decision
will inform the claimant of the specific reasons for the decision
and the specific provisions of the Plan upon which the decision is
based. If written notice of the decision is not given to the
claimant within the initial period the claim shall be deemed denied
on review. Except as may be otherwise required by law, the decision
of the Trustees on review of the claim denial shall be binding on
all parties.
The Fund has the right to recovery
from any Participant, or any other individual or recipient of Plan
benefits, any payments made as a result of misrepresentation,
mistake or error, irrespective of the party causing such mistake or
error.
As a participant in the Plan you are
entitled to certain rights and protections under the ERISA. ERISA
provides that all Plan participants shall be entitled to:
-
Examine, without charge,
at the Trustees office, all Plan documents, including copies of
all documents filed by the Plan with the U.S. Department of
Labor, such as detailed annual reports and Plan descriptions.
-
Obtain copies of all
Plan documents and other Plan information upon written request
to the Trustees. The Trustees may make a reasonable charge for
the copies.
-
Receive a summary of the
Plan’s annual financial report. The Trustees are required by
law to furnish each Participant with a copy of this summary
annual report.
-
Obtain, once a year,
upon written request to the Trustees, a statement of the total
benefits accrued under the Plan. This statement is provided
free of charge.
In addition to creating rights for
participants, ERISA imposes duties upon the people who are
responsible for the operation of the Plan. The people who operate
the Plan, called "fiduciaries" of the Plan, have a duty to do so
prudently in the best interest of you and other Participants and
beneficiaries.
No employer or any other person may
not fire you or otherwise discriminate against you in any way to
prevent you from obtaining a Plan benefit or exercising your rights
under ERISA.
If your claim for a Plan benefit is
denied, in whole or in part, you must receive a written explanation
of the reason for the denial. You have the right to have the
Trustees review and reconsider your claim.
Under ERISA there are steps you can
take to enforce the above rights. For instance, if you request
materials from the Plan and do not receive them within thirty (30)
days, you may file suit in a Federal court. In such a case, the
court may require the Trustees to provide the materials and pay you
up to One Hundred and Ten Dollars ($110.00) a day until you receive
the materials, unless the materials were not sent because of reasons
beyond the control of the Trustees.
If you have a claim for benefits
which is denied or ignored, in whole or in part, you may file suit
in a state or Federal court.
If it should happen that Plan
fiduciaries misuse the Plan's money, or if you are discriminated
against for asserting your rights, you may seek assistance from the
U.S. Department of Labor or you may file suit in a Federal court.
The court will decide who should pay court costs and legal fees. If
you are successful, the court may order the person you have sued to
pay these costs and fees. If you lose, the court may order you to
pay these costs and fees if for example, it finds your claim is
frivolous.
The Trustees do not believe that it
will ever be necessary for you to file suit in connection with the
Plan. However, if you feel such action is necessary, the Plan's
agent for service of legal process is the Trustees. Legal process
may also be served on the Trustees.
If you have any questions about the
Plan, you should contact the Trustees. If you have any questions
about this statement or about your rights under ERISA, you should
contact the nearest Office of the Employee Benefits Security
Administration of the U.S. Department of Labor listed in your
telephone directory or the Division of Technical Assistance and
Inquires, Employee Benefits Security Administration, 200
Constitution Avenue N.W., Washington, D.C. 20210. You may also
obtain certain publications about your rights and responsibilities
under ERISA by calling the publications hotline of the Employee
Benefits Security Administration of the U.S. Department of Labor.
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