Q. How do I take a loan?
A. Under certain circumstances you may borrow from your regular Cascade Pension Trust account. You can model and request a loan via Milliman millimanbenefits.com. A personal identification number is required, and you can request one by calling Milliman
Benefits Service Center at (866) 767-1212. You may also contact the Trust Office for assistance or to request a copy of the Participant Loan Policy.
To be eligible for a loan, your regular plan account must have a balance of at least $2,000. You do not need to be actively employed, but if you are married your spouse must consent to the loan. Only one loan is permitted at any time, the maximum term is five years and the monthly payments must be made via automatic withdrawal from a checking or savings account. The minimum amount you can borrow is $1,000 and the maximum amount is determined as the lesser of 50% of your regular Cascade account balance or $50,000, minus the highest outstanding loan balance you had in the past 12-months.
There is a one-time loan initiation fee of $85.00 and monthly maintenance fees of $3.00. These fees are deducted from your regular Cascade account. The interest rate charged on the loan is equal to the Prime Rate plus 1%, is fixed for the life of the loan, and all interest paid is credited to your account. Loans may be paid in full or in part at any time, but failure to repay a loan in accordance with the loan’s terms will result in default.
Q. What is the Retirement Process?
A. If you are 55 years of age or older, you may apply for retirement benefits from the Cascade Pension Trust. To meet your financial needs in retirement, the Trust provides flexible distribution options. To request the application packet or to discuss your benefit options, contact the Trust Office at (800) 547-4457, extension 1682.
The potential pitfalls threatening a successful retirement are many, and the biggest errors fall into both psychological and financial categories, according to major financial advisors. Here are the eight most common mistakes made in retirement.
If you are under the age of 55 and have had no covered employment in 12-months and your combined account balance is less than $10,000, you may be eligible for a distribution. Contact the Trust Office if you are interested in determining your eligibility for a distribution. Click here for a copy of the Employee Handbook, which outlines the Trust’s distribution rules in detail.
Completed applications and the required documentation must be received by the 10th of the month and approved requests received by that deadline will be processed for payment the first week of the following month. Spousal consent is required when the Joint & Survivor Annuity option is not selected. Also, incomplete applications are not accepted and will be returned to you for completion.
If you request a direct payment you will pay federal and state income taxes, and if you are under 59 ½, you may be subject to an additional IRS early withdrawal penalty. From any lump sum distribution, which is not rolled directly into another plan or IRA, 20% will be withheld for federal income tax. It is always recommended that you read the Special Tax Notice and speak with a tax advisor prior to taking any distribution. For a copy of the Special Tax Notice click here or contact the Trust Office.
Q. How Does Reciprocity Work?
A. When you travel to work outside of your home local and check in with the outside local’s office to be dispatched, that local office will notify via the ERTS (Electronic Reciprocal Transfer System) both the participating and home trust fund offices that you are to be dispatched in their jurisdiction.
The local notifies the participating funds so that they may prepare to transfer reciprocal monies received on your behalf and notifies your home funds to expect to receive the money.
In order to ensure that your contributions are reciprocated properly you must register in the ERTS system and when you travel outside of your home local’s jurisdiction be sure to check in at the local office whose jurisdiction you intend to work so that they may notify the various trust offices.
If you are not registered in the ERTS system (https://erts.ibew.com) or no longer have your PIN (personal identification number) please contact your nearest IBEW local office. They can assist you with this process