Thursday, May 28, 2020

Frequently Asked Questions

Health Care

Q. When do I become eligible for benefits?
A. Coverage will begin the first day of the second month following the month that the member accumulates 300 work hours within twelve consecutive months.
Example of when coverage would begin:
If the 300 qualifying hours are completed in April, coverage would begin June 1st
Please note: Motorshop and Subscription agreement members' initial eligibility is the first day of the second month of employment (They do not have to qualify with 300 hours).
Q. How do I maintain my monthly health care coverage?
A. After you meet your initial eligibility requirement of 300 hours worked in a 12 consecutive month period, you must have at least the Actual Monthly Participant Cost (AMPC) per month in your Hour Bank to maintain your benefits. Effective with January 2016 eligibility the AMPC amount is $1813.50 per month.
Also, please note that you must pay the buy up charge if you are covered under either the UHC or indemnity (Anthem Blue Cross) medical plans.
Q. What if I don’t work enough hours to gain eligibility for the month?
A. You can accumulate a Reserve Dollar Bank up to a maximum of $9,067.50 (5 months x the Actual Monthly Participant Cost) to use to maintain your coverage if your work hours fall short or you become unemployed.


Q. When could I become eligible for benefits under the Plan?
  • Normal Retirement:
    At least age 62 with 5 years of Credited Service, or age 60 with 5 years of Credited Service for hours worked (and benefits earned) prior to January 1, 2010, or Normal Retirement Age.
  • Early Retirement:
    At least age 55 with 10 years of Credited Service (excluding Credited Future Service earned as a result of work in Contiguous Noncovered Employment).
  • Rule of 90:
    At least age 55, and age and years of Credited Service total 90 when added together (for benefits earned prior to January 1, 2010).
  • Total and Permanent Disability
    Any age with 10 years of Credited Service, including at least one quarter of Credited Service as a result of actual work in Covered Employment in the three consecutive Calendar Years immediately prior to the onset of total disability, and in receipt of a Social Security Disability benefit.
Q. I would like to know what my monthly benefit would be if I choose to retire. How do I obtain this information?
A. You can contact the Pension Department by calling (888) 512-5863 and request that an estimate be mailed to you. If you are married, you will be required to submit your spouse’s information so that an estimate could be provided with the Joint & Survivor options available to you. Additionally, if you have been divorced previously, you must submit a copy of your final divorce decree to the Pension Department.
Q. How far in advance should I request an application for retirement?
A. You can request an application for retirement any time during the 180 days prior to your expected retirement date but in no event, not later than the last working day of the month prior to the month in which you want to retire with this Plan.

Money Purchase

Q. Who is eligible to become a Participant in the Plan?
A. You become a Participant upon your completion of 1 hour of employment for which contributions are required to be paid to the Plan.
You are always 100% vested in the money in your Individual Account. However, you need to meet certain eligibility requirements before you are able to access the money in your account.
Q. Are the employer’s contributions taxable to me?
A. No. The employer’s contributions are not taxable income to the individual, nor are earnings thereon, as this is tax exempt qualified Pension Trust. However, at the time you access your account and receive a distribution form the Plan, these monies become eligible income; therefore taxes are due at that time.
Q. What determines the value of the accrued benefit in my Individual account?
A. First, of course, is the amount of contributions that are paid on your behalf. This money along with the contributions in all other Individual accounts is invested under policies established by the Board of Trustees of the Fund. Any interest or dividends is added to the contributions; changes in the value of investments also result in increases or decreases in the value of each individual account. From this accumulation is deducted a uniform share of the Plan’s operating expenses. Accounts are valued on a monthly basis.


Q. When I Eligible to Participate in the Plan?
A. You are eligible to participate if you are working for a Contributing Employer who is required to make contributions to the Plan on your behalf pursuant to a collective bargaining agreement or a participation agreement between the Union and such Employer.
You become a participant in the Plan on the date a contribution is first made on your behalf to the Plan by a Contributing Employer.
Q. When May I Elect My Vacation Benefits?
A. You may claim vacation benefits for one scheduled vacation at any time throughout the year, except during the month of November, when calculations for the annual distribution are made. You may also claim vacation benefits from your account to be paid during all months other than November and December (the month of the annual distribution). After the first five (5) payments of vacation benefits within the Plan Year, you may request additional payments of vacation benefits for a reasonable administrative fee per payment, to be set from time to time by the Trustees.
In lieu of direct payments, you may authorize transfers of contributions to the Plan made on your behalf to your account in the United Workers Federal Credit Union. Forms authorizing such transfers are available at the Plan Administrative Office. Transfers of vacation benefits to your Credit Union account are not subject to administrative fees.
Q. Is there a limit to the number of withdrawals that I can make during the year?
A. Yes. The first 5 withdrawal requests are free. Starting with the 6th request, there is a $5.00 fee which will be charged per request. No withdrawals are allowed during the months of November and December. All funds left in the member's account at November Month End will be distributed during the December Annual Pay Out.