Thursday, May 28, 2020

Frequently Asked Money Purchase Plan Questions

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 daily basis.
Q. May I withdraw my funds prior to retirement?
A. A Participant who stops working under a Collective Bargaining Agreement for reasons other than death, retirement, or permanent disability, is entitled to receive a lump sum of the balance of the account if you have completely withdrawn from any employment or self-payment in the Electrical Industry in the United States and from any work for any Contributing Employer in any capacity for a period of nine (9) consecutive months, have had no Employer Contributions made to your Individual Account for a period of at least twelve (12) consecutive months and your account balance is less than $10,000.00. In addition, you must submit a written statement to the Trust that you do not intend to return to any employment in the Electrical Construction Industry.
Q. When do I retire?
  • Normal Retirement Age - Your normal retirement date will be the first day of the month coinciding with or following your 65th birthday after you have ceased working in covered employment. The benefit payable to you is your account balance.
  • Early Retirement Age – Your Early retirement date will be the first day of the month coinciding with or following your 55th birthday after you have ceased working in the electrical industry. The benefit payable to you is your account balance.
  • Related Plan – You become eligible to receive your account balance if you are retired from the IBEW Local 595 Pension Plan, the National Electrical Pension Plan or any other retirement plan maintained by an IBEW Local Union.
  • Disability - You may retire at any time if you are found totally and permanently disabled and have been awarded Social Security Disability Benefits.
Q. May I borrow against my pension Plan?
A. Loans are available to any Plan Participant Alternative Payee or Beneficiary if your account balance is greater than $5,000 and your individual account has not been withdrawn or terminated. If you are married, your spouse must consent to the loan in writing, witnessed by a Plan representative or notary public.
Your loan may not be approved if:
  • you have defaulted on a loan from the Plan (with limited exceptions described on page 16);
  • there is a reasonable possibility you will not repay the loan;
  • the purpose of the loan is to transfer the proceeds to another party that would normally be a prohibited transaction under the Plan;
  • you do not submit additional requested information in a timely manner;
  • you do not follow the Plan's loan procedures; or
  • you are going through a divorce where a QDRO is not established.

No loans are permitted from the Defined Benefit Pension Plan.
Q. Where do I send my loan payments for the Money Purchase Pension Plan?

If your loan originated prior to January 1, 2016 or if your loan originated prior to December 1, 2018 AND you did not elect to have loan payments automatically made through ACH with Fidelity Investments, you will send your loan payments to:

IBEW Local 595 Trust Funds

PO Box 8252 

Pasadena, CA 91109-8252 

If your loan originated after December 1, 2018, you are required to provide Fidelity Investments with ACH information so that loan repayments can be made automatically. 

Q. What is the application procedure for payment of my accrued benefit?
A. When you are ready to retire and access the funds in your individual account, you may contact the Administration office for an application for benefits. All applications must be in writing and filed with the fund office at least 30 days before payment of your accrued benefit is to be made.
Q. What is the exact amount of money I would get when I am eligible for benefits?
A. Due to the fluctuation in the amount of the yield on investments as wells as the fluctuating value of stocks or bonds or other investment assets, the exact amount you will receive in the future when you are eligible for benefits cannot be determined now. However, the amount you will receive will be calculated as follows: the sum of all contributions received on your behalf, plus all actual investments earnings, minus changes in the value of the Plan’s investments, minus your share of the Plan’s operating expenses.
Q. May I assign my benefits under the Plan?
A. No, you may not assign your benefits unless required by law under a Qualified Domestic Relations Order (QDRO).
Q. Can I transfer my account balance to other pension plans?
A. The Plan allows some interfund transfers of account balances with other cooperating plans with which this Plan has a reciprocal agreement for the purpose of consolidating accounts. The Plan also permits roll-in transfers, in the form of a transfer of the entire balance of a Participant's account from a qualified defined benefit or defined contribution pension plan. This may save you administrative expense if you have multiple accounts. You can contact the Fund Manager for more information about interfund transfers.
Q. Is there a procedure to follow if an application is denied?

If you disagree with a denial, you may ask the Trustees to review their decision. Your appeal petition must be in writing and submitted within 60 days after the date the decision is issued. The appeal should be sent to the Fund Manager. In your written appeal, you should state clearly the reasons why your claim should not be denied and should include supporting documentation. Please refer to your Summary Plan Document for complete claim and appeals procedures.  

Q. How can I determine how much is in my individual account?

You may access your account online at or you can call Fidelity at (866) 848-6466.