Leaving Employment

what is annuity fund

Who is eligible to participate?

You are eligible to participate in the Boilermakers Local Lodge No. 5 Annuity Plan if:

· You work in a job that is covered by a collective bargaining agreement with the International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmiths, Forgers, and Helpers of America, AFL-CIO, Local Lodge No. 5 (Local 5) requiring contributions to be made to Boilermakers Local Lodge No. 5 Annuity Fund (Annuity Fund);

· You are an officer, business agent, or employee of the Union, and the Union contributes to the Annuity Fund on your behalf, as employers contribute on behalf of employees working a full workweek; or

· You are an employee of the Board of Trustees of the Boilermakers Local Lodge No. 5 Annuity, Vacation and Welfare Funds.

When am I eligible to participate?

Your participation in the Annuity Plan starts as soon as you complete at least one hour in a job:

· That is covered by a collective bargaining agreement that requires contributions to the Annuity Fund with the Boilermakers Local Lodge No. 5;

· As an employee of the Union; or

· As an employee of the Board of Trustees of the Boilermakers Local Lodge No. 5 Annuity, Vacation and Welfare Funds.

Who pays the cost of providing a benefit ?

Your employer makes contributions to your Individual Account during each Plan Year (January 1 - December 31) while the collective bargaining agreement is in effect.

Your employer(s) makes contributions to the Plan in accordance with its collective bargaining agreement with the International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmiths, Forgers, and Helpers of America, AFL-CIO, Local Lodge No. 5 or other agreement with the Board of Trustees requiring contributions.

Do I need to name a beneficiary?

You should name a beneficiary. You will need to complete a beneficiary designation form naming a beneficiary to receive the value of your Individual Account in the event of your death. You may name more than one beneficiary.

You can obtain a beneficiary designation form from the Fund Office and you must file the completed form with the Fund Office either in person or by mail. You may change your beneficiary designation at any time by completing a new beneficiary designation form, unless as explained below, you’re married or your distribution has begun.

If you are married

Your spouse (if you have been married for at least one year at the time of your death) is automatically your beneficiary until the first day of the calendar year in which you turn age 35. If your spouse consents to an additional or different beneficiary, such consent expires on the first day of the calendar year in which you turn age 35. At such time, a new spousal consent must be obtained to name an additional or different beneficiary.

On the first day of the calendar year in which you turn age 35, your spouse is automatically your beneficiary and will remain so unless your spouse consents to an additional or different beneficiary. Spousal consents, or the lack thereof, can present complicated issues in both pre-retirement and retirement situations. If you have any questions, you should contact the Fund Office.

To name an additional or different beneficiary for any portion of your Individual Account, you and your spouse must complete and sign a spousal consent form which can be obtained from the Fund Office. The completed form must then be filed with the Fund Office to be effective.

If you do not designate a beneficiary

If you are not married and you have not designated a beneficiary(ies), or your beneficiary(ies) does not survive you, the beneficiary of your Boilermakers Local Lodge No. 5 Welfare Fund life insurance coverage will receive your Annuity Plan distribution.

If you are covered by the Local Lodge No. 5 Welfare Fund and you have not designated a life insurance beneficiary, or that person has pre-deceased you, then the balance in your Individual Account will be distributed to your estate.

If you are not covered by the Local Lodge No. 5 Welfare Fund, then the balance in your Individual Account will be distributed to your estate.

An Individual Account is established in your name when contributions to the Fund are first made on your behalf.

Your employer makes contributions based upon the applicable collective bargaining agreement or other agreement setting forth the contributions to be made on your behalf. These contributions are then credited to your Individual Account.

What is vesting?

Vesting refers to your guaranteed right to receive a benefit from the Plan. You are immediately 100% vested in the money in your Individual Account.

When am I eligible for a benefit?

You are eligible to receive benefits under the Annuity Plan when you:

· Become separated from service, which means that no contributions have been made or were supposed to be made to the Fund on your behalf for six consecutive months;

· Are totally and permanently disabled (see the section called What happens if I become disabled? on page 17 for details); or

· Have shown satisfactory evidence to the Board of Trustees that you have retired and are receiving an award from the Boilermakers Blacksmiths National Pension Trust.

Your benefit payments cannot be delayed beyond April 1 of the calendar year after the calendar year in which you turn age 70½.

How will my benefit be calculated?

The amount of your benefit is valued daily based on the closing prices of the mutual fund shares in your Individual Account.

You will receive quarterly statements summarizing the investment activity in the most recent quarter and showing allocable administrative expenses deducted from that account.

When does my benefit begin?

If you are eligible to receive a benefit, you may choose to begin to have your benefit distributed to you (also known as a distribution) as early as the first day of the month after you retire, or are separated from service (if you are under age 55). To be separated from service means that no contributions have been or were supposed to be made to the Fund on your behalf for at least six months.

See “What happens if I become disabled?” on page 17 for a description of when your benefit will begin if you are totally and permanently disabled.

You are not required to take a distribution until the April 1 st following the year in which you attain age 70½. In order to obtain a benefit, you must submit a completed application for a benefit to the Fund Office.

Can I make a rollover into this Plan?

This Plan accepts rollovers of your retirement funds from certain other plans that are qualified under the Internal Revenue Code. To process a rollover to the Plan, you must complete the appropriate rollover forms, which are available from the Fund Office.

Your rollover will be put in a separate sub-account of your Individual Account, called your Rollover Account. If you have a Rollover Account:

· You will be fully vested in it; and

· You direct how the money in your Rollover Account is to be invested. You can invest it in the Putnam investment options, described on page 10. along with the balance of

your Individual Account.

Rollover eligibility

To be eligible, any rollover to this Plan must meet the following conditions:

· The rollover must be a lump sum distribution from another qualified plan which is eligible for tax-free rollover to a qualified plan;

· You can roll over only the eligible taxable portion of the distribution; and

· The rollover must meet the necessary Internal Revenue Service (IRS) requirements—for example that it is paid to this Plan within 60 days of your receipt or that the check is made payable directly to this Plan instead of you.

Previous rollovers

If you had previously rolled over your balance in any other employer’s tax-qualified plan into an Individual Retirement Account (IRA) you can roll over the funds in that IRA into this Plan if it was a separate IRA established solely for tax-qualified employer plan rollovers. You must roll over the full distribution from the IRA and must do so within 60 days of receiving the distribution from the IRA.

If the IRA contains funds (other than earnings) from any source other than rollover(s) from qualified employer plans, IRS rules say that you can’t make a further rollover to this Plan.

You can borrow from your Individual Account. You are eligible for a loan if you have had an Individual Account for a 36 consecutive month period and you have not retired.

There are rules that limit the amount you can borrow from your Individual Account:

· In general, you can borrow up to the lesser of:

¾ $50,000; or

¾ 50% of the value of your Individual Account.

· The minimum loan allowed is $2,000.

Outstanding loan balances will reduce the amount available that you can borrow.

You can only request a loan for one or more of the following reasons:

· You or one of your eligible dependents has medical expenses, resulting from a sickness or injury, which the Boilermakers National Health and Welfare Fund doesn’t cover;

· You have funeral expenses due to the death of your spouse, child, or parent;

· You, your spouse, or your dependent child has tuition and/or room and board expenses at an educational institution beyond the high school level;

· You purchase a home, condominium, or cooperative apartment, and incur down payment, contract, or title expenses (please note that a loan for this purpose will only be made once);

· You have contracted to have an addition built to your residence;

· You have been involuntarily unemployed for at least 60 consecutive days; or

· You have purchased and now own an automobile (please note that a loan for this purpose will only be granted once every three calendar years).

· Your loan will bear simple interest at the prime rate, as published in the Wall Street Journal as of the first day of the calendar year in which the loan is granted. During the course of the loan, the interest rate you will pay will be the same as the rate when your loan was first approved.

To obtain a loan application, please contact the Fund Office. Once you submit your application, the Board of Trustees will review your application and make a determination on your loan request.

What are the repayment conditions on loans?

Even though you are borrowing from your own account, you are required, by law, to repay your loan. At the very minimum, you must pay off your loan in monthly installments, and entirely repay the loan within five years from the date the loan is granted.

What if I want to pay off my loan in less than five years?

What happens if I don’t repay my loan or if I miss a loan payment?

If you miss a loan payment your loan will be considered in default. You will receive a Form 1099 and the amount of your loan may be subject to IRS penalties for early withdrawal, including a 10% excise tax on the defaulted amount. Your account will be reduced by the amount you borrowed (principal) but have not yet repaid plus accrued interest on all remaining payments.

How does a loan affect my Individual Account?

There are two things to keep in mind when you take out a loan from your Individual Account:

· When you take out a loan, the loan proceeds are paid out to you, and are no longer invested in any of the Prudential mutual funds. Your loan repayments when made, including the interest you pay, go back into your account.

· Upon your retirement, if you have not completely repaid your loan, your Individual Account balance will be reduced by any outstanding loans.

Can I choose how my Individual Account is invested ?

Yes. When you first participate, you choose how the amount in your Individual Account is invested among the Prudential Financial investment funds in increments of 5%. You can change your account investments daily.

Rapid Trading violations are subject to redemption fees of up to 2%. See each funds prospectus or call Prudential at 1-877-778-2100 for details on redemption fees associated with individual funds.

Your investment options are mutual funds, all of which purchase a variety of stocks, bonds, or money market instruments that are consistent with each mutual fund’s investment objectives.

For specific information about each Prudential investment fund, please refer to a copy of that fund’s prospectus. If you need one, please contact Prudential at 1-(877) 778-2100 or on the world wide web at www.prudential.com/online/retirement

It’s up to you to determine the “investment mix” of your Individual Account. The Fund Office cannot and will not give you investment advice. You should consult with your own financial advisor with respect to how your Individual Account is, or should be, invested.

The Boilermakers Local Lodge No. 5 Annuity Plan intends to satisfy the provisions of Internal Revenue Code section 404(c). This means that the Board of Trustees will not be held liable for any losses that your Individual Account experiences as a result of your own investment decisions.

While Internal Revenue Code section 404(c) limits the Board of Trustees’ liability for your personal investment decisions, the Board of Trustees is still responsible for prudently choosing and monitoring the Plan’s range of investment alternatives, and for administering in accordance with your own investment decisions. The Board of Trustees has the right to change, add, or delete, at any time, the investment funds that the Plan offers.

DEFAULT INVESTMENT FUND .

If you do not make investment elections for all or any part of the money in your Individual Account, any money you have not elected to otherwise invest will be invested in Manning & Napier Pro-Blend Moderate Term Fund.

What happens when I leave employment as a Local 5 Boilermaker?

If you completely withdraw from any employment covered by a collective bargaining agreement between your contributing employer(s) and Local 5, your contributing employer(s) will stop making contributions to the Annuity Fund on your behalf.

When you can receive a distribution from your Individual Account depends on certain factors (see “When does my benefit begin?” on page 7 for details). The rest of this section will explain how you access the money in your Individual Account.

Source: local5funds.org

Category: Credit

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