Frequently Asked Questions
Frequently Asked Questions
I.B.E.W. Local 340 Profit-Sharing Plan
Who pays for the Plan?
The entire cost of the Plan is paid by contributions required under a collective bargaining agreement.
When do I retire?
- Normal Retirement- Your normal retirement date will be the first of the month coinciding with or next following your 62nd birthday.
- Early Retirement- You may elect to retire as early as age 55 and receive your account balance at that time.
May I withdraw money from my account if I become disabled?
Yes. If you are permanently and totally disabled as defined in the Plan, regardless of age, you may withdraw your account balance in one of the methods allowed under the Plan provisions.
May I withdraw my funds prior to retirement?
Yes. Under certain circumstances, an individual may withdraw the accumulated funds in this Pension Plan as follows:
If an employee is not employed under covered employment for a period of twelve (12) consecutive months and the account balance is less than $10,000.00, he/she may withdraw the amount in higher individual accounts. A request for withdrawal must be in writing and approved by the Board of Trustees.
Additionally, hardship distributions are available. This Plan allows for hardship distributions to be made prior to the date the participant is otherwise eligible for early retirement. The distributions are strictly regulated by the Internal Revenue Code, are limited and must be approved by the Trustees after the application is made.
What form of payment do I have available?
- You may elect a full lump sum amount equal to the value of your basic account.
- You may choose to purchase a 50% Joint & Survivor Annuity or 100% Joint & Survivor Annuity.
- You may purchase from an insurance company a single life annuity.
- You may elect to receive your accumulated share in equal monthly installments
What Death Benefits are payable under the Plan?
- Pre-retirement death benefits: If your death occurs before your retirement, your designated beneficiary will receive a benefit equal to the value of your basic account.
- Post-retirement death benefits: If your death occurs after your retirement and you have not elected to receive your benefit in the fonn of an insured annuity, your designated beneficiary will receive an amount equal to the remaining value of your basic account. If you have elected an insured annuity, the conditions of the insured annuity contract will determine the death benefit payable.
Can I transfer my account balance to another IBEW Pension Plan?
This Plan is a signatory to the National Electrical Industry Pension Reciprocal Agreement. Pension and Profit Sharing funds are transferred according to the Reciprocal Agreement on a monthly basis.
Is interest credited to the account?
The contributions received by the Trust Fund are invested to earn additional income. Your basic account is credited annually with your proportionate share of the investment income. Your share of investment earnings each year is equal to the ratio which your account (including contributions and investment allocated in prior years) bears the total of all participant’s accounts. The larger the balance credited to your account, the greater the investment income allocated each year.
What is the future of the Plan?
It is very important that all Participants have a current Beneficiary Election on file, and that the Administration office has a current address for all Participants. A Participant Statement, which details all account activity for the Plan Year (January 1 – December 31), is mailed to Participants annually, usually in May. This is an important document that should be saved each year.
The above is a very brief highlight of Plan provisions. All questions regarding your individual account, benefit options, and application procedures should be directed to the Plan Administrative Office. Download your Summary Plan Description.