Saturday, August 8, 2020

Frequently Asked Defined Contribution Questions

Q. What is the Defined Contribution Pension Fund? 
A. It is a type of pension that pays a lump sum benefit upon retirement or termination of employment. This benefit is in addition to any Defined Benefit pension you may be eligible to receive.
Q. How do I become a participant and how do I become vested? 
A. Once you have contributions paid into the Fund by a contributing employer you immediately become a participant and are 100% vested.
Q. How are the Fund's assets invested? 
A. The Trustees are responsible for selecting the appropriate investment vehicles for the investment of the Fund's assets. The Trustees retain professional investment managers to handle the actual investing of these assets.
Q. When can I receive my Defined Contribution?
A. When you begin receiving a monthly pension benefit under the Operating Engineers' Local 324 Pension Fund, OR if you stop working as an Operating  Engineer in the State of Michigan and have no contributions paid into this Fund on your behalf for 12 consecutive months, you will be eligible to receive your Defined Contribution Pension.
Q. What happens to this benefit if I should die?
A. This benefit would be paid to your beneficiary in the order listed below:

  • Surviving spouse
  • Designated beneficiary at the Pension Fund office
  • Designated beneficiary at the Health Care Plan
  • Children (in equal shares)
  • Parents (in equal shares)
  • Siblings (in equal shares)
  • Estate
Q. Can I borrow from my Defined Contribution? 
A. Yes. The Defined Contribution Fund has a loan program that will allow you to borrow up to half of your total benefit. Please call the fund office for additional information at 1-800-572-8975 or 1-248-836-2765.