IBEW Local 8 Retirement Plan and Trust

Announcements:

• New Pension Plan option for those age-55 and over (5/22/2008)
• You can now defer up to 15% into your 401K! (5/8/2007)
• Review Pension Plan Amendments, effective February 2007 (3/10/2007)
• View the 2006 Summary Annual Reports for the Pension Plan and 401(K) Plan .

Summary Plan Descriptions:

• Local No. 8 IBEW Retirement Plan and Trust
• IBEW Local No. 8 401(K) Plan

2010 Net Performance:

Pension Fund
January: -1.45%

2010 Year-to-Date: -1.45%
2010 Dollar Gain/Loss: -$3,284,614.93

Conservative Fund
January: -0.09%

2010 Year-to-Date: -0.09%
2010 Dollar Gain/Loss: $-8,382.35
 

Stable Value Fund
January: 0.31%

2010 Year-to-Date: 0.31%
2010 Dollar Gain/Loss: $63,087.34

2009 Net Performance:

Pension Fund
January: -4.64%
February: -5.01%
March: 4.70%
April: 4.87%
May: 4.14%
June: 0.48%
July: 3.81%

August: 2.68%
September: 2.82%
October: -1.47%
November: 2.83%
December: 1.32%

2009 Year-to-Date: 16.53%
2009 Dollar Gain/Loss: $32,566,477

Conservative Fund
January: -1.33%
February: -2.78%
March: 2.18%
April: 3.19%
May: 2.12%
June: 0.48%
July: 3.67%
August: 1.91%
September: 2.49%

October: -0.33%
November: 2.18%
December: -0.05%

2009 Year-to-Date: 13.73%
2009 Dollar Gain/Loss: $$1,062,012
 

Stable Value Fund
January: 0.25%
February: 0.24%
March: 0.20%
April: 0.03%
May: 0.38%
June: 0.34%
July: 0.28%
August: 0.31%
September: 0.32%
October: 0.34%
November: 0.34%
December: 0.30%

2009 Year-to-Date: 3.33%
2009 Dollar Gain/Loss: $700,707

2008 Net Performance:

Pension Fund
January: -3.89%
February: -2.00%
March: -0.58%
April: 3.24%
May: 0.86%
June: -5.81%
July: -0.40%
August: 0.71%
September: -6.89%
October: -11.87%
November: -3.72%
December: 3.23%

2008 Year-to-Date: -27.12%
2008 Dollar Gain/Loss: -$65,644,431

Conservative Fund
July: 0.74%
August: 0.57%
September: -5.05%
October: -5.58%
November: -0.98%

December: 4.91%

2008 Year-to-Date: -5.39%
2008 Dollar Gain/Loss: -$361,550

Stable Value Fund
January: 0.42%
February: 0.23%
March: 0.47%
April: 0.36%
May: 0.35%
June: 0.36%
July: 0.33%
August: 0.27%
September: 0.33% 

October: 0.63%
November: 0.19%
December: 0.45%

2008 Year-to-Date: 4.39%
2008 Dollar Gain/Loss: $570,713

 

The Local No. 8 IBEW Retirement Plan and Trust Fund is where most of our participants’ accounts are invested. The Board of Trustees meets on the fourth Thursday of each month to review and conduct the business of the Plan. (Regular meetings are occasionally rescheduled, and special meetings may be held from time to time.) Professional advisors and money managers are retained by the Trustees to prudently invest our pension funds. The Trustees can, and do, change investment managers who do not meet investment goals, and add investment managers who could enhance the average investment earnings of the Plan. The retirement funds were invested in a diversified asset allocation during calendar year 2006 as outlined below:

Retirement Investment Fund Balance as of December 31, 2007: $270,844,206

A participant may choose to transfer his or her account balance to the Segregated Fund. This is a one-time election, and may not be reversed. The Segregated Fund balances are invested in the IBEW-NECA Stable Value Investment Fund, whose objective is to provide a low-risk, moderate-yield investment option for members of the IBEW and NECA. This collective investment trust consists of a diversified portfolio of traditional and alternative stable value investment contracts issued by life insurance companies, banks, and other financial institutions. Characteristics of these contracts allow their value to remain relatively stable regardless of fluctuations in the equity and bond markets, except in cases of substantial credit downgrade or default.

Segregated Fund Balance as of December 31, 2007: $ 10,616,275

Frequently Asked Questions: Pension

What is the eligibility criteria to retire or to obtain my account balance?

All participants are encouraged to get advice from a financial planner before withdrawing pension funds. There are several ways a participant can become eligible to collect benefits from his/her pension account.

• Normal Retirement Benefits: After reaching the age of 60 years, a participant is entitled to the full value of his/her account. The participant must retire from the service of all electrical industry employers.
• Rule of 85 Retirement Benefits: After reaching the age of 55 years with at least 30 years of industry service, a participant is entitled to restricted payments from his/her account. The participant must retire from the service of all electrical industry employers. You must be at least age 55 and your age plus years of service must add up to 85 or more to choose this option.
• Benefits on Death: Upon the death of a participant, the full value of his/her account is assigned to the designated beneficiary on file with the Fund Office.
• Permanent and Total Disability Benefits: In the case of a permanent and total disability, the participant is entitled to the full value of his/her account. Permanent and total disability means a physical or mental condition for which the participant receives a Social Security disability award or which completely prevents the participant from performing duties as an employee and which will, on the basis of competent medical evidence, be permanent and continuous during the remainder of the participant’s life. A permanent and total disability must be certified by the Board of Trustees, which may rely on medical advice it deems to be appropriate.
• Other Termination of Employment: If no employer contributions are made on behalf of a participant for 12 consecutive months (including contributions received under a reciprocity agreement), and the participant does not engage in any electrical industry work in Local 8’s jurisdiction, he/she is entitled to receive a distribution from his/her pension account.

Please contact the Fund office to discuss your particular circumstances. Again, you are encouraged to seek financial planning advice before withdrawing funds from your account. This is YOUR pension plan, and we want our participants to have the most secure future possible.

An Application for Benefits must be completed by the participant, and approved by the Board of Trustees before any payment can be processed.

Once I retire, what are my distribution options?

Once you qualify for benefit payments, you must decide which method of payment will best provide you for your retirement. If you are married, your spouse must agree to the method of payment selected. Please contact the Fund office to make an appointment to discuss your particular circumstances. The various payment options available to you are:

• Installment Payments-Age 60+ only: You only elect how much you want to be paid monthly. Payments are taxable income for the participant, but not subject to the IRS early withdrawal penalty.
• Rule of 85 Installment Payments: This is the only payment option available to participants retiring under the Rule of 85 (at least 55, and age plus years of service equal 85 or more.) Payments are taxable income to the participant. The IRS early withdrawal penalty does not apply. Annual payment limit is 10% of your account balance. Account balance is measured as of any one of the prior 12 months. The annual limit is then divided by 12 to calculate the monthly payment amount. One additional payment is allowed each year equal to 20% of your annual limit. For example:

Account Balance = $120,000

Multiple balance by 10% = $12,000 annual limit

$12,000 divided by 12 = $1,000 monthly payments

$12,000 x 20% = $2,400 additional payment allowed per year if elected by participant

• Lump Sum and Partial Payments: You must request all or part of your account balance be paid directly to you. This type of payment is taxable income for the participant. The Fund is required by law to withhold 20% income tax in most cases. If you are under age 59 ½ at the time of payment, the Internal Revenue Service will also assess a 10% penalty for early withdrawal on your next tax return. (There are a few exceptions, check with your tax preparer or financial advisor.)
• Direct Rollovers: You may request all or part of your account balance be paid directly to an IRA or other Qualified Plan. You must provide a written statement from the receiving financial institution or qualified plan stating it will accept the direct rollover and that it is eligible, under Federal tax laws, to receive a direct rollover. This statement must accompany the Application for Benefits delivered to the Plan office for processing. Direct rollovers are not subject to the IRS early withdrawal penalty, are not considered taxable income, and no tax is withheld.
• Single Life Annuity: A Single Life Annuity is the automatic form of payment from the plan unless you are married, or you elect to waive this option. If your benefits are paid as a Single Life Annuity, your account balance will be used to purchase an annuity from an insurance company. The annuity will provide you with a fixed monthly payment for the rest of your life. Payment amounts depend on your age and life expectancy. After you die, no further payments will be made to your estate or your designated beneficiary.
• Joint and Survivor Annuity: If you are married, this is the automatic form of payment from the plan unless you and your spouse elect to waive this option. If your benefits are paid as a Joint Survivor Annuity, your account balance will be used to purchase an annuity from an insurance company. The annuity will provide you with a fixed monthly payment for life. After you die, your spouse (the person you were married to at the time payments began), will receive monthly payments for the rest of his/her life. The payment amount to the spouse is equal to 50% of your monthly payment. (If this spouse dies before you do, the amount of your payment will not change.)
• Additional Annuity Information: The monthly annuity payments that can be purchased with your account balance will depend on (a) your age, or the ages of you and your spouse, (b) the date payments commence, and (c) the current annuity rates available from an insurance company selected by the Board of Trustees. You are subject to income tax on annuity payments you receive. If you are interested in an estimate of a monthly annuity payment, please contact the Fund office.

How is the Pension Plan invested?

Assets of the Plan are invested according to the investment Policy established by the Board of Trustees. Currently, funds are invested by fourteen different Money Managers, with performance monitored by an Investment Advisor and the Board of Trustees.

How is my account balance valued?

Plan assets are valued at their fair market values as of the last day of each month. Participant accounts are adjusted for investment gains, losses, administrative expenses, etc. in proportion to their respective values immediately before the valuation date. Updated participant account balances are usually available after the 15th of the following month.

Are there any other investment options?

Participants age 55 and older may exercise a one time option to invest his/her entire account balance in a fund segregated from the general assets of the Plan. The Trustees’ investment objective for the Segregated Fund is to provide safety of principal and stability of income for participants nearing retirement age.

Segregated balances are currently invested in the IBEW-NECA Stable Value Investment Fund. The objective of this Fund is to provide a low-risk, moderate-yield investment option for the retirement plans of members of the IBEW and NECA. The Fund is managed to provide stable principal, more predictable returns, benefit payment liquidity, high credit quality, and interest rate sensitivity.

Are distributions from the Pension Plan taxable?

All payments from your pension, except Direct Rollovers, are taxable income. When you file your taxes, you must report any pension payments you receive. We will send you a Form 1099-R each January for payments you received the previous calendar year.

On your tax return, your gross pension income is added to all other forms of income you receive, such as wages (you and your spouse) and unemployment benefits. We want you to be aware that any tax we withhold from your pension payments may not completely cover your total tax liability. Also, most non-rollover payments to participants under age 59 ½ are subject to an additional 10% tax penalty.

Also, you should be aware that your pension withdrawals may be subject to state and local income taxes. We do not withhold any state or local taxes from your payments.

Can I use the money in my account to purchase a house, or for my child’s college education?

No, the Plan does not allow for borrowing or hardship withdrawals.

Additional information on these or any other subject is available by calling the Benefit Office at (419)666-4450, or by sending an e-mail to Benefits@ElectricalFunds.org .

Disclaimer