In an effort to try to keep you updated on the benefits you participate in, I will occassionally add information as it comes through my office.
Effective 1/1/2014 the Annuity moved to Prudential for the full service recordkeeper versus JP Morgan.
Full-service record keeping includes:
* Handling Participant phone calls
* Processing distributions, loans, death benefits, QDRO's, military service credit, etc.
* Disburse benefits
* Processing loan payments, sending delinquency and default notices
* Issue tax forms (1099R & 1042s )
Benefits of moving to a full- service recordkeeper:
* Save the Annuity Trust approximately $800,000 annually compared to the previous co-sourcing arrangement with JP Morgan Retirement Plan Services and the Funds Office.
* Shorter processing times for distributions and loans - from 2-3 weeks to 3-4 days processing time for paperwork received in good order.
New Distribution Options ( in addition to lump sum, roll-over and life annuity purchase ):
* Partial Distributions - distribute any portion of account balance and the remainder stays in the Participant's Account.
* Installment Options - receive equal installments on a monthly, quarterly, semi-annual or annual basis over a fixed period of time ( subject to the IRS Minimum Distribution rules for Participants over age 70 1/2 ). You may change or revoke the frequency of payment or amount received at any time while you have an Account Balance.
Elimination of the Age 65 Force-Out: Participants can remain in the Plan and will not be forced to take a distribution except for Required Minimum Distributions as outlined in the Internal Revenue Code for Participants over age 70 1/2.
Changes in the Loan Program:
* Qualifaction for a Plan loan - you no longer must be a Participant for 5 years to qualify for a Loan. The new requirement is for a Participant to have a minimum Account Balance of $2000.
* Maximum loan amount - the lessor of 1) 50% ( increased from 40% ) of a Participant's Account Balance, or 2) $50,000 minus the highest outstanding balance of any Plan loan during the 12 month period preceding the new loan.
* Interest Rate- the rate will be the prime rate plus 1% as published on www.federalreserve.gov.
* New loan options - the Plan has allowed a loan for imminent foreclosure on a participant's primary residence but added the imminent loss of residence through and eviction notice for Participants that rent rather than owb their home.
* Principal Residence loans - maximum repayment period increased from 10 years to 20 years.
***** AS A REMINDER, YOU CAN GET THIS INFORMAATION ALSO BY GOING TO THE INTERNATIONAL BROTHERHOOD OF BOILERMAKERS WEBSITE AND CLICK ON BENEFITS AND THEN THE ANNUITY FUND.******
I know that many of you ask about where the investments are for the Annuity Fund, this is what was offered to me on the request:
Annuity Target Asset Allocations as a courtesy of the investment group.
6% in Global Fixed Income
10% in International Equity
20% in Large Cap Equity
3.5% in Small Cap Equity
5% in Real Estate
53% in Fixed Income
* Master Limited Partnerships