Annuity
-- FAQ --
WHAT IS THE EFFECTIVE DATE OF THE ANNUITY PLAN?
The Annuity Plan became effective as of August 1, 1982. The Plan was
established by the
Board of Trustees under authority granted them by the Agreement and
Declaration of Trust
entered into on July 28, 1982.
WHO PAYS THE COST OF THE ANNUITY PLAN?
The entire cost of the Annuity Plan is paid for by employer
contributions. No employee contributions are permitted.
WHO ADMINISTERS THE ANNUITY PLAN?
The Board of Trustees, which serves without any compensation, acts
on behalf of you and your
fellow employees in managing the Annuity Trust's operations. There
is an equal number of
Union and Employer Trustees as required by the Agreement and
Declaration of Trust. The
Annuity Plan is administered in the same office as the Iron Workers
St. Louis District Council
Pension and Welfare Plans, at the address shown on page 11 of this
booklet.
We urge you to keep this booklet for future reference and to discuss
this booklet with your
family. The booklet contains information concerning important
benefits to which you and your
beneficiary may be entitled.
The Trustees will keep you advised of any changes in the Plan.
However, this can be done only
if the Fund Office has your current address on record at all times.
HOW MUCH IS THE ANNUITY BENEFIT?
The amount of the annuity benefits for each participant is the
amount in his Individual Account
at the time he qualifies for payment of the annuity. Generally, it
is the sum of all contributions
made over the years to his Individual Account, plus the investment
earnings applicable to his
Individual Account, minus a charge for administration expenses.
WHAT IS AN INDIVIDUAL ACCOUNT?
An Individual Account is the account established for each Employee
into which is deposited all
employer contributions for the participant and the amount of
investment earnings less administration expenses applicable to the Individual Account each year as
of the Valuation Date. An
Individual Account is established for you as of the first valuation
date after you have worked
with an employer contributing to this Plan for you. At that time all
contributions previously
made on your behalf are credited to your account.
WHAT IS THE VALUATION DATE?
The Valuation Date is the last business day of each fiscal year
(October 31) on which all factors
(contributions, investment income, changes in market value of
investment and administration
expenses) are calculated to arrive at the value in each Individual
Account.
HOW WILL I KNOW HOW MUCH IS IN MY INDIVIDUAL ACCOUNT?
Once a year you will receive a Status Report showing the value of
your Individual Account as
of the most recent Valuation Date. The Status Report will include
the total amount of employer
contributions received on your behalf since the last Valuation Date
plus a proportionate share of
the gross investment yield earned by the Fund since the last
Valuation Date minus a pro-rated
share of the cost of administration expenses incurred by the Plan
since the last Valuation Date.
If you do not receive an annual statement or if it is lost, you can
write the Fund Office to get
information about the amount in your Individual Account. Annual
Status Reports are expected
to be mailed not later than the end of May of each year.
HOW WILL THE ANNUITY PLAN ASSETS BE INVESTED?
The Trustees are responsible for holding and investing all Trust
Fund assets. They try to obtain the highest investment yields
consistent with safe financial management. The investment earnings that will be credited will include both Investment Income and
changes in the market value
of the Fund's total investments as of the Valuation Date. The
Trustees intend to make every
effort to invest these funds to produce favorable earnings for
participants, but the investment
results are not guaranteed. If the market value of the Fund's total
investments is lower than the
total amount in all Individual Accounts as of any Valuation Date,
the value of each Individual
Account will be reduced proportionately.
WHEN WILL I RECEIVE PAYMENTS FROM THE ANNUITY PLAN?
In general, provided that the Trustees receive a written application
for benefit payment ninety
days in advance, the amount of your Individual Account is payable
when:
1. You are absent from covered employment for twelve consecutive
calendar months
and do not return to work in covered employment before you or your
Rollover
Institution receives a benefit payment, or
2. You retire on or after age 55 and:
A. you receive a pension benefit under the Iron Workers St. Louis
District Council
Pension Plan, or
B. you receive monthly Social Security benefits.
3. You reach age 70 1/2
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5. You die prior to otherwise becoming eligible for a benefit
payment.
IF I RETURN TO WORK IN COVERED EMPLOYMENT AFTER A SEPARATION,
CAN I STILL RECEIVE A PAYMENT FROM THE ANNUITY PLAN?
No. In order to receive a payment from the Annuity Plan you must
leave covered employment
for twelve consecutive months. However, if you return to work in
covered employment after
twelve months, but before a benefit payment has been made from the
Annuity Fund, you will
not be eligible for a distribution.
The twelve month separation rule is intended to define when you
terminate employment in order to satisfy federal regulations
regarding when a distribution from the Annuity Fund is permissible. If you return to work in Covered Employment before a
benefit payment has been
made from the Annuity Fund, it is evident that you have not
terminated employment even
though you may have technically been out of covered employment for
twelve consecutive
months.
CAN I RECEIVE THE MONEY FROM MY INDIVIDUAL ACCOUNT AT THE SAME
TIME THAT I BEGIN TO RECEIVE MY PENSION?
Yes. If you are eligible for a pension from the Iron Workers St.
Louis District Council Pension
Plan, you may elect to apply for and receive your annuity benefit at
the same time and you will
receive both the amount in your Individual Account and your pension.
HOW WILL MY INDIVIDUAL ACCOUNT BE PAID?
If you are not married, then your Individual Account will be payable
as a Single-Life Annuity,
unless you elect in writing to receive your annuity benefit in the
Optional Form of Payment.
Optional Forms of Payment are explained in the next question
entitled "What is the Optional
Form of Payment?"
If you are married, then your Individual Account will be payable as
a 50% Husband and Wife
Annuity, unless you elect in writing to receive an Optional Form of
Payment with the written
consent of your spouse witnessed by a notary public.
WHAT IS THE OPTIONAL FORM OF PAYMENT?
A lump-sum payment of your Individual Account.
WHAT IF I DIE BEFORE PAYMENT OF MY INDIVIDUAL ACCOUNT BEGINS?
If you are not married, then your Individual Account will be paid to
your designated beneficiary as an Optional Form of Payment as elected by your beneficiary.
If you are married, then your Individual Account will be paid to
your spouse in the form of a
Pre-retirement Survivor Benefit unless you and your spouse elect to
waive the Pre-retirement
Survivor Benefit and designate a beneficiary who may then elect to
receive an Optional Form of
Payment. Such waiver and beneficiary designation must receive the
written consent of your
spouse witnessed by a notary public. A surviving spouse who is
entitled to a Pre-retirement
Survivor Benefit may elect to commence benefit payments at any time
up to 90 days after the
later of the date the Employee would have reached age 65 or the date
of the Employee's death.
A surviving spouse who is entitled to a Pre-retirement Survivor
Benefit may also elect within
one year of the Employee's death to receive an Optional Form of
Payment.
WHAT IS A SINGLE-LIFE ANNUITY, PRERETIREMENT SURVIVOR ANNUITY AND
50% HUSBAND AND WIFE ANNUITY?
A Single-Life Annuity is the payment of your Individual Account in
equal monthly payments
for life. A Preretirement Survivor Benefit is a Single-Life Annuity
for the life of your spouse.
A 50% Husband and Wife Annuity is paid to you and your qualified
spouse (see the question
"Who is a Qualified Spouse?" for an explanation of what a qualified
spouse is), unless you and
your qualified spouse elect to waive the Husband and Wife Annuity
and designate a beneficiary who may then elect to receive an
Optional Form of Payment. Such waiver and beneficiary designation must receive the written consent of your spouse witnessed
by a notary public. A 50%
Husband and Wife Annuity is payable in monthly installments for life
and if you die, then your
qualified spouse will receive one-half of this amount as a monthly
payment for the remainder of
your spouse's life. Payment of your Individual Account in the form
of one of these annuities is
through the purchase of an irrevocable insurance contract.
WHO IS A QUALIFIED SPOUSE?
A spouse is a qualified spouse if:
- The spouse was married to the participant on the date the
participant dies and they
had been married throughout the year before the date that the
participant's annuity
or benefit payments began or if earlier, the date of the
participant's death, or
- If the participant and spouse were divorced after being married
for at least one year
and the former spouse is required to be treated as a spouse or
former spouse under a
Qualified Domestic Relations Order, or
- The participant and the spouse were married within the year
before the date that the
participant's annuity or benefit payments began and they were
married for at least a
year before the date of the participant's death.
WHAT HAPPENS TO MY BENEFIT IF I AM DIVORCED?
That depends. If a Domestic Relations Order, "DRO" is submitted to
the Plan, the Plan
Administrator must review the DRO to determine if it is "Qualified."
It may be necessary to
delay payment of all or part of a participant's benefit while this
is done.
If the DRO is qualified, it is a Qualified Domestic Relations Order
or "QDRO".
The Plan is required by law to comply with the terms and conditions
of a qualified Domestic
Relations Order. Therefore, if a Qualified Domestic Relations Order
required payment of an
employee's benefit, or a part of that benefit, to an alternate payee
such as a former spouse or
other dependent, the Trustees must comply.
If the divorce occurs after payment of a participant's benefit in
the Husband and Wife Annuity
form has begun, the form of payment cannot be changed to a
single-life annuity or paid to
another surviving spouse.
DO I HAVE TO PAY TAX ON THE MONEY IN MY INDIVIDUAL ACCOUNT?
That depends. The money in your Individual Account is not considered
taxable income until
you receive it. When you receive the money in your Individual
Account, it must be reported as
taxable income. To actually determine what may be the best way for
you to take the money in
your Individual Account and the tax consequences of any payments you
receive, you should
discuss your particular circumstances with a competent tax advisor.
The Trustees or staff at the
Fund Office cannot help you in this matter.
Generally, all distributions, including death benefits paid to your
spouse, are eligible for tax-free
rollover except for distributions that are:
1. substantially equal periodic payments over:
a. the life (or life expectancy) of a participant, or joint lives of a
participant and beneficiary, or
b. a scheduled period of at least 10 years, or
2. mandatory distributions after age 70-1/2.
A payment that is eligible for rollover can be taken in two ways.
You can have all or any portion of your payment either (1) paid in a direct rollover or (2)
paid to you. This choice will
affect the tax you owe. Also a payment to you will be subject to 20%
withholding for federal income tax, which does not apply to a direct
rollover. A direct rollover is not subject to withholding provided that the documentation required under federal law
is supplied to the Plan. The
Plan Administrator will not make a direct rollover payment until the
required documentation is
received.
Federal law requires the Fund Office to provide you with a timely
"Special
Tax Notice Regarding Plan Payments" which describes your rights and
obligations regarding rollovers and withholding requirements.
IS THERE A TAX PENALTY IF I RECEIVE MY BENEFIT BEFORE AGE 59-1/2?
Yes. The Tax Reform Act of 1986 imposed an additional 10% tax on all
taxable amounts
received before age 59 1/2, which are not rolled over into an
Individual Retirement Account
(IRA) or another qualified plan within 60 days after receipt.
However, the 10% additional tax
does not apply to the following:
1. distributions upon retirement on or after age 55, or
2. distributions in the form of an annuity, or
3. distributions upon death or disability, or
4. distributions to the extent you have medical expenses that are
deductible (whether
or not you itemize), or
5. distributions pursuant to a Qualified Domestic Relations Order.
The timing and form of your distribution will affect the amount of
tax you pay. Therefore, you
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WHAT IF I DIE BEFORE I HAVE RECEIVED ALL OF THE BALANCE IN MY
ACCOUNT?
If you die, the balance, if any, in your Individual Account upon
your death will
be paid to your designated beneficiary in a lump sum.
If you should die and have no surviving designated beneficiary, then
the balance in your
Individual Account is payable to your spouse; or if none, in equal
shares to
your surviving children; or, if none, in equal shares to your
parents; or, if none, to
the executor or administrator of your estate.
HOW DO I ELECT AN OPTIONAL FORM OF PAYMENT OR DESIGNATE A
BENEFICIARY?
You should write the Fund Office for the appropriate form. If you
are married and wish to
waive the 50% Husband and Wife Annuity or the Preretirement Survivor
Benefit and you wish
to designate a beneficiary other than your spouse, then your spouse
must consent in writing,
witnessed by a Notary Public.
WHAT IF MY INDIVIDUAL ACCOUNT IS $3,500 OR LESS?
Regardless of the form of payment you would otherwise be eligible to
receive, the Trustees
shall pay your Individual Account in the form of a lump-sum cash
payment ifyour Individual
Account, prior to the commencement of payments is $3,500 or less.
WHAT IF I LEAVE THE INDUSTRY OR MOVE TO ANOTHER PART OF THE
COUNTRY BEFORE RETIREMENT?
You are still entitled to receive the money in your Individual
Account, but not right away. In
order to show that you have permanently separated from the coverage
of the Plan, you must not
work in employment for which contributions are required or made to
your Individual Account
for at least twelve consecutive calendar months and you must not
return to covered employment
before you or your Rollover Institution receives a benefit payment.
At the end of the twelve
month period if you have not returned to work in covered employment
before you or your
Rollover Institution receives a benefit payment, you are entitled to
receive the money in your
Individual Account as of the date and after you make proper
application.
IS THERE ANY WAY IN WHICH MY EMPLOYER CONTRIBUTIONS PAID FOR
ME CAN BE FORFEITED UNDER THE ANNUITY PLAN?
No. Contributions are always 100% vested.
HOW DO I APPLY FOR BENEFITS?
An Employee or Alternate Payee who retires, terminates from
employment or otherwise qualifies should request an application from the Fund Office ninety (90)
days prior to payment.
Payment cannot be made until an application is received at the Fund
Office and approved by the
Trustees who are responsible for making sure that all rules of the
Plan are followed. Also, depending upon special circumstances,
payment of a Participant's benefits may be delayed until
all requirements of federal laws and regulation are satisfied. That
could happen, for example,
while a QDRO review and determination is made or a direct rollover
withholding exemption is
documented.
IF MY APPLICATION IS DENIED, DO I HAVE THE RIGHT TO APPEAL?
Yes. You (or your authorized representative) must simply file a
written appeal with the Fund
Office no later than 180 days after you receive the notice of
denial. You may at this time request
a hearing from the Executive Committee of the Board of Trustees. You
also have a right to
review pertinent documents and to submit comments in writing.
The Executive Committee of the Board of Trustees will decide the
appeal within 180 days after
receipt of all pertinent evidence. The decision will be in writing
and will include the specific
basis for the decision and specific references to Plan provisions on
which the decision was
based. The decision of the Board will be final and binding on all
concerned.
IF I OWE MONEY, CAN I SIGN OVER MY RIGHTS TO MY INDIVIDUAL
ACCOUNT?
No. The Annuity Plan contains a provision forbidding any assignment,
pledging or otherwise
disposing of your annuity payments, except in accordance with a
Qualified Domestic Relations
Order.
ADDITIONAL INFORMATION
All contributions to the Annuity Plan are made by employers in
accordance with collective bar-
gaining agreements with Iron Workers' Local Unions participating in
the Iron Workers St.
Louis District Council Annuity Trust that require contributions to
be paid to the Annuity Plan at
fixed rates per hour worked.
Benefits are provided from the Annuity Plan's assets which are
accumulated under the provisions of the Trust Agreement for the purpose of providing benefits
to covered participants and
defraying reasonable administrative expenses.
If you have any questions or problems as to benefit payments, you
have, as you know, the right
to get answers from the Trustees who administer the Plan. The same
basic rights have been
incorporated in the Employee Retirement Income Security Act, which
Congress adopted in
1974, and which apply to all benefit plans. These rights are as
follows:
STATEMENT OF RIGHTS UNDER EMPLOYEE RETIREMENT INCOME SECURITY
ACT OF 1974
As a participant in the Iron Workers St. Louis District Council
Annuity Plan, you are entitled to
certain rights and protections under the Employee Retirement Income
Security Act of 1974
(ERISA). ERISA provides that all Plan Participants shall be entitled
to:
* Examine, without charge, at the Plan Administrator's Office and at
other specified
locations, such as Union halls, and worksites, where at least 50
Plan participants are customarily employed, all Plan Documents,
including collective bargaining agreements and copies of all documents filed by the Plan with the U.S.
Department of
Labor, such as detailed reports and Plan descriptions.
* Obtain copies of all Plan Documents and other Plan information
upon written request
to the Plan Administrator. The Administrator may make a reasonable
charge for the
copies.
* Receive a summary of the Plan's annual financial report. The Plan
Administrator is
required by law to furnish each participant with a copy of this
Summary Annual Report.
In addition to creating rights for Plan participants, ERISA imposes
duties upon the people who
are responsible for the operation of the employee benefit Plan. The
people who operate your
Plan, called "fiduciaries" of the plan, have a duty to do so
prudently and in the interest of you
and other Plan participants and beneficiaries. No one, including
your employer, your Union, or
any other person, may fire you or otherwise discriminate against you
in any way to prevent you
from obtaining a benefit or exercising your rights under ERISA. If
your claim for a 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 Plan 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 30 days, you may file
suit in a federal court. In
such a case, the court may require the Plan Administrator to provide
the materials and pay you
up to $100 a day until you receive the materials, unless the
materials were not sent because of
reasons beyond the control of the administrator. 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
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