Elevator Constructors Union Local No. 1
Annuity and 401 (k) Plan
Retirement Seminar
November 5, 2015
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ELEVATOR CONSTRUCTORS UNION LOCAL NO. 1
ANNUITY AND 401 (K) PLAN
RETIREMENT SEMINAR
Presenters
National Elevator Industry Pension Plan
Rob Betts, Executive Director
Jim Govannicci, Benefit Manager Pension Plan
ECU Local No. 1 Annuity and 401(k) Plan
Joan Groarke, Fund Manager
Lucille Hart, Administrator
Vanguard (ECU Local No. 1 401(k) Plan)
Bill Gruccio
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WHERE WILL MY RETIREMENT INCOME COME FROM?
National Elevator Industry Pension Plan
ECU Local No. 1 Annuity Plan
ECU Local No. 1 401(k) Plan
Personal Savings
Real Estate
Social Security
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PENSION PLANS
ECU Local No. 1 Annuity Plan – Defined Contribution Plan
Contribution is defined in collective bargaining agreement
For example, current Annuity contribution rates for Journeypersons are:
For construction work - $8.26 per hour
For service work
- $8.11 per hour
Total of all Contributions
- Loan Balance
- Withdrawals
+/- Investment Income
- Operating Expenses
-------------------------------------= Annuity Account Balance
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PENSION PLANS CONTINUED
ECU Local No. 1 401(k) Plan – Defined Contribution Plan
Pre-tax Employee Contribution
% of Wages or Flat Dollar Amount up to Annual Statutory Limit
2012 Annual Limit
2013 Annual Limit
2014 Annual Limit
2015 Annual Limit
2016 Annual Limit
$17,000 + $5,500 Catch-up
$17,500 + $5,500 Catch-up
$17,500 + $5,500 Catch-up
$18,000 + $6,000 Catch-up
$18,000 + $6,000 Catch-up
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LOCAL 1 ANNUITY AND 401(K) PLAN
When do I begin Participation in the Plan?
For the Annuity portion, participation is automatic. You begin
participation on the first day you work for an Employer that makes
contributions to the Local 1 Fund.
For the 401(k) portion, participation is voluntary. You decide if and
when you want to participate.
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LOCAL NO. 1 ANNUITY AND 401(K) PLAN
How will I know how much is in my Annuity Account?
The Fund Office will send you a Statement each quarter.
You will also receive an Annual Statement which will show the
Investment Income and Administrative Expense for the prior
year.
Annual Statements are generally mailed at the end of May or
beginning of June, when the returns of all the Fund’s
Investment Managers have been calculated and verified.
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LOCAL NO. 1 ANNUITY AND 401(K) PLAN
When can I withdraw my Account?
 Age 65
 Leave the Industry (no contributions for 6 months)
 Retire from the NEI Pension Plan
 Declared Totally and Permanently Disabled by SSA
 Attain age 70½ - Minimum Distribution must be paid
Am I required to take my Account when I retire or leave the Industry?
No, unless you are age 70½ and then you must receive a Minimum Distribution.
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LOCAL NO. 1 ANNUITY AND 401(K) PLAN
How will my Annuity Account be Paid to Me?
1. Lump Sum Payment - Rollover over or direct payment to Participant –
Available for both Annuity Account and 401(k)
2. 10 Annual Installments – methods are different under each plan
3. Qualified Joint and Survivor Annuity (monthly benefit to Participant
with survivor benefit to spouse) – Available for Annuity Account only
4. Straight Life Annuity (monthly with no survivor benefit) – Annuity only
5. Investment Yield Only – Applies to Annuity Account only
6. Partial Lump Sum Payment with 10 annual installments
7. Up to 5% of Account Balance each year – Retirees only
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LOCAL NO. 1 ANNUITY AND 401(K) PLAN
What happens to my Annuity and 401(k) Accounts if I die?
Before you Retire:
 If married, your Spouse receives your Account unless you designated
another person and your spouse consents
 If not married, you may name anyone as Beneficiary
 Designated Beneficiary under NEI Pension Plan
 Your estate
After You Retire:
 No one, if you received a Lump Sum or Straight Life Annuity
 Spouse, if you are receiving a QJSA
 Designated Beneficiary for all other payment methods
Special Note: Qualified Domestic Relations Orders (QDRO’s)
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LOCAL NO. 1 ANNUITY AND 401(k) PLAN
When should I apply for my Account?
Rules apply Annuity Account Only
If your Application is postmarked or hand delivered to the Fund Office by
March 31, you will receive your Account in two installments in the year in
which you apply.
 80% of your Account will be paid to you as soon as it is processed, but
no earlier than 30 days after the Fund Office sends you the Application
for Distribution.
 The remaining 20% of your Account plus or minus the prior year’s Yield
and Operating Expenses will be paid to you later in the same year
(generally in June) after these numbers have been calculated and
verified.
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When should I apply for my Account?
Rules apply Annuity Account Only
If your Application is postmarked or hand delivered to the Fund Office on
or after April 1, you will receive your Account in two installments. The first
payment will be made to you in the year in which you apply, and the second
payment will be paid to you in the following year.
First Payment - 80% of your Account will be paid to you as soon as your
Application is processed, but no earlier than 30 days after the Fund
Office sends you the Application for Distribution.
Second Payment - The remaining 20% of your Account plus/minus a pro
rata share of the current year Yield and Operating expenses will be paid
in the following year (generally in June) after these numbers have been
calculated and verified.
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LOCAL NO. 1 ANNUITY AND 401(K) PLAN
Do I have to pay taxes when I receive my Annuity and 401(k) Accounts?
Yes!
 Federal, state and local taxes are due when the Account is paid to you. (The
Fund Office will withhold Federal taxes; you are responsible for payment of
state and local taxes.)
 However, if you rollover your Account(s) to a traditional IRA or other
qualified plan, no taxes are withheld at the time of the rollover. Taxes are
due when you withdraw the money from the IRA or other Plan.
 If you take a lump sum and do not roll it over or roll over only part of it, the
amount paid directly to you is subject to mandatory 20% federal income tax
withholding.
 Payments not eligible for rollover (e.g., 10 annual installments, monthly
annuity) – Mandatory 10% withheld unless you elect other amount.
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LOCAL NO. 1 ANNUITY AND 401(K) PLAN
Tax Consequences
 10% penalty for withdrawal prior to 59½ unless rolled over (exceptions include
separation from service during or after age 55 and retirement due to disability)
 Special tax treatment for individuals born before 1/1/36 (10 year average or
capital gain – see accountant)
 Spouse has same options as Employee
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LOCAL NO. 1 ANNUITY AND 401(K) PLAN
Special Features of the Annuity Plan
Loans
1. Mortgage*
2. Home Improvements and Repairs*
3. Purchase of Auto or Motorcycle (for employee transportation to/from work)*
4. Education*
5. Medical or Dental Expenses*
6. Funeral*
7. Disability ($700 per week)
8. Involuntary Unemployment ( $700 per week commencing with the 22nd day of
unemployment)
9. Disaster Recovery
* Application processing fee applies
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Special Features of the Annuity Plan
Loans (continued)

Must have Annuity Account for at least 3 years or have had an account for at
least 3 years, took the account and are back 15 months and have a balance
of $5,000 or more

Maximum loan – 50% of account, not to exceed $50,000

Must be repaid through Payroll Deduction

Interest goes back into your Annuity Account

Default – Fund Office must issue a Form1099R to you. Outstanding
Principal and Interest are considered income to you and subject to
federal, state and local taxes. (Additional penalties may apply)

If you are in default on a loan, you cannot take another loan.
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Special Features of the Annuity Plan
Special Financial Needs Withdrawals
1. Purchase of Primary Residence
2.
Medical
8. Eviction or Foreclosure
9.
Disaster Recovery
3. Education
10. Funeral
4. Disability
11. Long Term Care
5. Child Support
12. Involuntary Unemployment
6. Certain Legal Expenses
13. Adoption
7. Real Estate Tax Liability
14. Income Tax Liability
Limit of 2 withdrawals in any 12 month period
Maximum of $50,000 in withdrawals in any 12 month period
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LOCAL NO. 1 ANNUITY AND 401(K) PLAN
Write or Call the Fund Office at –
ECU LOCAL NO. 1 ANNUITY AND 401(k) PLAN
140 Sylvan Avenue, Suite 303,
Englewood Cliffs, NJ 07632
(201) 592-6800
(855) 521-6111
or
Visit our Web Site at: www.benserconj.com
and click on the Local 1 logo
 If you have questions
 To change your address or marital status
 To request a Beneficiary Designation form
 To apply for your Annuity and 401(k) withdrawals
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ELEVATOR CONSTRUCTORS UNION LOCAL No. 1
ANNUITY AND 401(k) PLAN
140 Sylvan Avenue, Suite 303,
Englewood Cliffs, NJ 07632
(201) 592-6800
(855) 521-6111
Union Trustees
Leonard Legotte
Michael Riegger
Steve Mazza
Employer Trustees
E. James Walker, Jr. (EMANY)
Andy Werkhoven
(Schindler)
Vincent Schiavone
(Kone)
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