Announcement — I.U.O.E. Local 15 Annuity Fund Amendments — CARES Act
On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) which provides relief and allows Plans, such as the Local 15 Annuity Fund, to provide a new form of distribution to eligible participants affected by the coronavirus pandemic together with a special loan provision and a waiver of Required Minimum Distributions for 2020. The Board of Trustees has amended the Local 15 Annuity Fund’s Plan Document in accordance with the CARES Act as follows:
• In-Service Distributions - Through December 31, 2020, a participant is allowed to take a one-time distribution up to $100,000 from his/her individual annuity account as a “coronavirus-related distribution” if the participant has: (1) tested positive for COVID-19; (2) a spouse or beneficiary who tested positive for COVID-19; or (3) experienced one or more of a wide range of adverse financial consequences including being quarantined, furloughed or laid-off, having a reduction in work hours, or being unable to work due to a lack of child care as a result of the COVID-19 pandemic. You are advised that this is an in-service one-time allowed distribution and it is not a loan which would be subject to repayment with interest. The Local 15 Annuity Fund anticipates issuing 1099s at the end of the year, subject to future guidance issued on the CARES Act by the IRS. You may want to seek the advice of a professional tax advisor prior to choosing a withdrawal option. As provided for by the CARES Act, the federal government is waiving its collection of the otherwise required 10% early withdrawal penalty, and you may pay the income tax due on the distribution over 3 years as well as repay the amount of the distribution within 3 years. PLEASE CONTACT THE FUND OFFICE AT 212-255-7657 IF YOU WISH TO OBTAIN AN APPLICATION FOR AN IN-SERVICE DISTRIBUTION.
• Plan Loans - Any participant who has (1) tested positive for COVID-19; (2) a spouse or beneficiary who tested positive for COVID-19; or (3) experienced one or more of a wide range of adverse financial consequences including being quarantined, furloughed or laid-off, having a reduction in work hours, or being unable to work due to a lack of child care as a result of the COVID-19 pandemic, is now eligible to take a loan through September 23, 2020 in an amount equal to the greater of $100,000 or 100% of the participant’s nonforfeitable accrued benefit (the amount of the loan is reduced by the outstanding balance of any existing loans). In addition, any participant with a loan between March 27, 2020 and December 31, 2020 may delay for 1 year any loan repayments due during this period. PLEASE CONTACT JOHN HANCOCK RETIREMENT SERVICES AT 1-800-294-3575 TO OBTAIN A LOAN APPLICATION.
**Please Note- All other eligibility rules for Annuity loans remain in effect**
• Requirement Minimum Distribution (“RMD”) - Participants may waive the RMD they would otherwise be required to take in 2020 because they attained age 70 ½ in 2019 (unless they received a RMD in 2019) or attained age 70 ½ in earlier years. A participant must affirmatively effectuate this waiver by providing written notice to the Fund Office.
If you have any questions, please contact the Fund Office and please stay safe and well during these trying times.
The Board of Trustees
The Annuity Fund is a tax-exempt self-directed retirement fund as defined in the Employee Retirement Income Security Act of 1974 (ERISA). The annual total of contributions is limited under Internal Revenue Code rules and regulations and cannot exceed an annual set maximum. Plan participants are 100% vested in the contributions made to their account. Voluntary (after-tax) contributions may be made to a contributing participant’s account but cannot exceed 10% of the gross annual salary in the current year. Distribution is made upon retirement or one year from the date of the last stamp redemption. The Third Party Administrator of the Plan is John Hancock Retirement Plan Services. See the Summary Plan Description for additional guidelines and information.
Voluntary Contribution Form
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