Q. Who makes contributions?
A. Under the terms of the collective bargaining agreement
between the Union and the employers, and the Annuity Plan itself, the
employers make contributions to the Annuity Fund on your behalf. The
amount of contribution is specified in the collective bargaining
agreement and can change from time to time.
Q. Who is in the Annuity Plan?
A. Individuals who are working as an Operating Engineer under
a collective bargaining agreement between their employer and the Union
participate in the Annuity Plan through contributions made on their
behalf by their contributing employer.
Q. What's new about the Annuity Plan?
A. The acquisition of CIGNA Corporation's retirement
operations by Prudential Financial in the spring of 2004 combined two
leading retirement services providers, creating a Top 10 provider with
more products and services available to you than ever before.
Q. What investment options have the Trustees selected?
A. After careful consideration, the Trustees have chosen a
variety of investments to suit individual needs. There are options
available for conservative, moderate or aggressive portfolios.
Additional information can be obtained by calling Prudential's
Interactive Voice Response service 877-PRU-2100 (877-778-2100) or
through Prudential Retirement's 's web site:
www.prudential.com/online/retirement
Q. When can I take advantage of some of the investment options?
A. Before you can use the Prudential retirement tools, which
are available 24 hours a day, 7 days a week, you will need to register
your account and create a new Personal Identification Number (PIN).
Register online at www.prudential.com/online/retirement. Just click
"First Time Logging In?" and enter your Social Security number as your
account number. You can also register by calling 877-PRU-2100
(877-778-2100). If you call to register you will be asked to enter your
account number, which is your Social Security number. Then simply
follow the prompts to establish your PIN.
Q. How may I invest my contributions?
A. You can choose how you want to invest both your current
account balance and future contributions by selecting from any of the
investment options offered in the Plan. You may put all of your money
into one account, or you can choose to have a stated percentage of your
contributions placed into each of several investments funds, in
multiples of 1%.
You need to be sure to tell Prudential how you want your
contributions invested. If you do not direct the investment of your
account, all contributions will be invested in the Local 542 Core
Balanced Fund, until you direct a change.
Q. Will I receive statements of my account?
A. Shortly after the close of each calendar quarter, you will
receive a financial statement from Prudential Financial which will show
your account balance, current investment elections, contributions and
investment earnings (or losses) allocated to your account during the
quarter, and the investment performance for each of the funds available
in the Plan.
Q. May I make a withdrawal from my account?
A. You may apply for one in-service withdrawal every two
years. If you are married at the time of such withdrawal, your spouse
must sign a form provided by Prudential attesting that the withdrawal
may reduce or entirely eliminate the amount to which you may someday be
entitled to receive from the Annuity Plan. Your spouse's signature must
be witnessed by a Notary Public in order for the request to be
considered.
If you are under age 59 1/2, the following provisions apply to in-service withdrawals:
- If you have had an Account for at least four years or more, you may
withdraw up to 50% of your account balance contributions and any
earnings on such contributions.
- If you have had an account for less than four years, you may withdraw the lesser of:
- Your account balance and earnings on such contributions, minus
Employer contributions made to your account during the last two years,
or
- 50% of your Account Balance and earnings on such contributions.
Any time after attaining age 59 1/2, a participant may apply for a
withdrawal of all or a portion of his Account. Such withdrawal
shall be subject to the following conditions:
A Member may make only one age 59 1/2 withdrawal in any 12-month period.
Hardship Withdrawals are contingent upon the Member demonstrating an
"Immediate and Heavy Financial Need". You may apply for a hardship
withdrawal for the amount necessary to satisfy your particular hardship
need, up to 100% of the employer contributions in your Account.
Applications for hardship withdrawals are subject to the approval of
the Trustees, for the following circumstances:
- unreimbursed medical expenses incurred by you, your spouse, or your legal dependents
- payment of tuition for the next year of post-secondary education for you, your spouse, or your legal dependents.
- purchase (excluding mortgage payments) of your principal residence; or
- the need to prevent eviction from your principal residence or foreclosure on the mortgage of your principal residence.
- Funeral Expenses for immediate family members.
Please note: all withdrawals are subject to the Internal Revenue
Code and IRS regulations regarding distributions, income and excise
taxes.
Q. When am I eligible to receive benefits or payments from my account?
A. In order to begin collecting benefits from the Plan, you
need to submit a written application. When you are ready to apply, you
may call Prudential Financial and applications will be forwarded to
your home.
You are eligible to apply for benefits from the Plan under any of the following conditions:
- Retirement
- Disability - payable if you become totally and permanently disabled and have been awarded a Social Security Disability Pension
- Termination - when no employer contributions have been made for
eighteen (18) consecutive months and you leave the industry permanently
- Death - payable to your spouse or beneficiary upon your death
Q. In what form are benefits paid?
A. Once you meet the eligibility requirements for either the
retirement, disability, or severance benefit described above, your
benefits are payable in accordance with the provisions contained in
your SPD.
If a Member separated from service and currently has a vested
account balance over the plan's cash-out threshold ($5000), Prudential
will notify these Members of the time limit in place to make a
distribution election. If an election is not made within the allotted
time, the account will remain in the plan.
If a Member does not have a vested account balance greater than the
$5000 threshold, Prudential will notify these Members of the time limit
to make a distribution election. If an election is not made within the
allotted time, a lump-sum cash payment will be made to the member.
Note: All payments will be subject to the Internal Revenue Code and
IRS regulations regarding distributions, income & excise taxes.
Q. What happens to my money upon my death?
A. If you die before you begin to receive payment of your
account, the accumulated balance in your account will pass to your
designated beneficiary(ies).
Q. How can I change my beneficiary designation?
A. If you wish to change your beneficiary designation, please contact the Fund Office to request a new form.
