The Annuity Fund of Local No. One, I.A.T.S.E. was established in 1980 to provide retirement benefits to the Local No. One membership. Under the Plan, an individual account is established for each participant, and these accounts are funded through employer contributions. Participants are able to direct how the contributions being made to their accounts are invested by choosing from a selection of available mutual fund investments. The accounts are managed for the Annuity Fund by Empower.
Using Empower’s website you have the ability to manage your annuity account. In addition to checking your account balances and performance, you can research the available investment options, and make changes to how your account balance and future contributions are invested. The site also includes tools for helping you create an investment mix that is tailored to your situation and investment goals.
To register on Empower’s website click the register button and choose I do not have a PIN. Follow the prompts to create a username and password.
You can call 1-833-569-2433 for assistance.
For information regarding distribution types and options, and other aspects of the Annuity Plan, click on the subjects listed on the left.
For information regarding the 2025 IRS limits, click here.
PLAN DOCUMENTS
Summary Plan Description
The Summary Plan Description (also called the SPD) describes the key features of the Annuity Fund benefits program. Please note that the SPD was issued in May of 2019, and any modifications by amendments and clarifications will be included below.
Plan Changes and Clarifications
03/13/2020 hardship COVID-19 30K
03/27/2020 loan def CAREs act
06/15/2020 hardship COVID-19 60K
10/01/2020 hardship COVID-19 100k
03/15/2021 coronavirus-related 40k
06/28/2021 coronavirus-related 65k
08/04/2023 adjustment to required beginning date
10/07/2024 distribution options and catchup
Summary Annual Report: This is the most recent basic financial statement sent to participants of the Annuity Fund.
ANNUITY DISTRIBUTION QUALIFYING EVENTS
You will be entitled to a distribution of all or a portion of your Annuity account balance when one of the following events occurs:
Normal Retirement
- You retire at age 60 or above, and
- You stop working completely in the trade and geographical jurisdiction of the Union.
Early Retirement
- You retire at age 55 to 59 with a 30-Year Pension, and
- You stop working completely in the trade and geographical jurisdiction of the Union.
Termination of Employment
- You no longer have any employment relationship with any contributing employer, and
- There have been no contributions made to the Plan on your behalf for 12 consecutive months.
Age 59 1/2 Partial Distribution
- You are age 59 1/2, and
- You have been a Plan participant for two or more years.
In this case, you may elect to withdraw that portion of your balance that was credited to you on or after 11/01/02 and more than two full calendar years prior to the withdrawal request. The available amount is reduced by any distributions or loans that you have taken during the previous two calendar years.
Age 60 Partial Distribution
- You are age 60 or above, and
- You have been a Plan participant for two or more years.
In this case, you may elect to withdraw that portion of your balance that was credited to you two full calendar years prior to the withdrawal request. The available amount is reduced by any distributions or loans that you have taken during the previous two calendar years.
Total and Permanent Disability
- You are totally unable, as a result of bodily injury or disease, to engage in any gainful employment, and
- Your disability has lasted at least five months and is expected to continue for at least an additional seven months.
If you are in this situation, please contact the Fund Office for information regarding disability documentation requirements.
Temporary Disability
- You are totally unable, as a result of bodily injury or disease, to engage in any gainful employment for a period of at least 45 days.
If you are in this situation, please contact the Fund Office for information regarding disability documentation requirements. If approved, the distribution amount is limited to the lesser of (i) $50,000 or (ii) 50% of your account balance, less any outstanding loans.
Qualified Birth or Adoption Distributions
You may request a Qualified Birth or Adoption Distribution from the Plan during the one-year period beginning on the date on which your child is born or the date the legal adoption is finalized. The maximum amount that may be requested is $5,000, per participant, per child. Funds available for such distribution are limited to employer contributions made to your Individual Account on or after 11/01/2002, including earnings on those contributions.
In addition, subject to IRS guidance, you are permitted to repay to the Plan all or a portion of the Qualified Birth or Adoption Distribution within the three years beginning on the day you received the Distribution, provided you are eligible to make rollover contributions to the Plan at the time of recontribution.
Caregiver Leave
- You have ceased employment for a period of 45 or more days to serve as the primary caregiver to an immediate family member (spouse, child or parent) suffering from a life threatening illness or severe disability.
If you are in this situation, please contact the Fund Office for information regarding documentation requirements. If approved, the distribution amount is limited to the lesser of (i) $50,000 or (ii) 50% of your account balance, less any outstanding loans. This distribution may not include amounts in your account prior to January 1, 2001 (including earnings on those amounts).
Hardship Distribution
To qualify for a hardship distribution, you must have worked in Covered Employment for at least two (2) years, be able to establish one of the immediate and heavy financial needs listed below, and have no other resources (including Plan loans) reasonably available to meet the need. If you satisfy these requirements, you may take a Hardship Distribution from your Annuity account of up to 125% of the amount necessary to satisfy the need (the extra 25% is to help you pay taxes and potential penalties associated with the distribution). Funds available for such distribution are limited to contributions made to your Annuity account on or after 11/01/2002, including earnings on those contributions.
You must demonstrate an immediate and heavy financial need for one of the following purposes to obtain a Hardship Distribution:
- Tax Delinquency: Payment of past due federal income taxes where the Internal Revenue Service has issued a formal notice of tax delinquency, a tax assessment or a tax lien in respect to such past due income taxes;
- Prevention of Eviction or Foreclosure: Payment to avoid your loss of the right to continue to occupy or remain in possession of your principal residence, or to prevent loss of title due to non-payment of delinquent taxes, or to prevent imminent foreclosure of an outstanding mortgage because of non-payment of one or more installments;
- Tuition and Related Educational Fees: Payment of tuition, related educational fees, or room and board expenses for the next 12 months of post-secondary education for the participant or participant’s spouse, child, or dependent; or
- Burial or Funeral Expenses: Payments for burial or funeral expenses for the participant’s deceased parent, spouse, child, dependent, or designated beneficiary at the time of death.
- Expenses and Losses Due to Disaster: Expenses and losses incurred by the participant (including loss of income) resulting from a disaster declared by the Federal Emergency Management Agency (FEMA), provided that the participant’s principal residence or principal place of employment at the time of the disaster was located in an area designated by FEMA for individual assistance with respect to the disaster.
If you are married, you will be required to obtain written consent from your Spouse. Hardship Distributions are limited to one per calendar year per participant, and you will be required to provide proof that any prior hardship distribution related to tax delinquency or eviction/foreclosure was used for the specified purpose. The minimum amount for any Hardship Distribution is $1,000.
Required Distributions
IRS regulations generally require that you begin taking a minimum distribution from your account by December 31 of the calendar year in which you turn 73 or, if later, retire. If you are required to take a distribution, the Fund Office will send you a letter letting you know how much your required distribution will be for the year.
If you die before you are required to start taking a minimum distribution, the required distribution for your beneficiary will be as follows:
- If the sole beneficiary is your spouse, distribution will begin by December 31 of the year following the year of your death, or if later, by December 31 of the year in which you would have reached age 73.
- If your spouse is not your sole beneficiary, distribution to your beneficiary(ies) will begin by December 31 of the year following the year of your death. However, for single or partial lump sum payments, or if there is no designated beneficiary as of September 30 of the year after the year of your death, the entire balance of your account must be distributed by December 31 of the year in which the fifth anniversary of your death occurs.
ANNUITY DISTRIBUTION OPTIONS
When you are able to take distributions from your Annuity account (see the Distribution Qualifying Events page), you have several options regarding how your Annuity benefit is paid to you.
Monthly Annuity Payments (Balance > $5,000)
Under this option, the entire amount of your Annuity account is used to purchase a qualified annuity from an insurance company. The amount of your monthly annuity will depend on your account balance, your age (and your spouse’s age if applicable), and factors and assumptions used by the insurance company.
If you are single, monthly Annuity payments will be paid to you for your lifetime. If you are married, unless your spouse waives this option, monthly Annuity payments will continue after your death for your spouse’s lifetime at the rate of 50% of your monthly payment. If you are married, you may also elect to take your benefit as a 75% joint and survivor Annuity. In the case of a joint and survivor Annuity, the amount of the Annuity payment will be actuarially reduced.
Please note that if you are married, an election to waive the qualified annuity benefit form will not be effective without the written consent of your spouse.
Lump Sum and Monthly Installment Payments
If your balance is under $5,000, or if you elect not to take the qualified monthly annuity benefit, you may take distributions from your account as:
- a single or partial lump sum payment,
- monthly installments, or
- a combination of lump sum and installment payments.
Survivor Benefits
If you die while receiving payments, did not elect to take a qualified annuity, and there is a remaining balance in your account, your beneficiary will receive the account balance as some combination of lump sum and/or monthly installment payments at his/her election.
If you die before commencing benefits, your spouse will automatically be your beneficiary for 50% of the value of your account, unless waived by your spouse, with the remainder payable to your designated beneficiary(ies). If your spouse waives the benefit, the balance of your account will go to your designated beneficiary(ies). If you have not yet designated a beneficiary, please fill out a Beneficiary Designation Form and return it to the Fund Office. Your beneficiary(ies) will have the option of taking their portion of the balance of your account as some combination of lump sum and/or installment payments, or using the balance to purchase a life annuity.
LOANS
The Annuity Plan allows you to borrow money from your Annuity account under some circumstances. If you wish to take a loan , you will need to log into your account at Empower’s website. You may also call Empower for assistance at 833-569-2433.
Loan Types
There are two types of loans offered:
- Personal Loans, with a term of less than five years, and
- Home loans for the purchase of a primary residence, with a term between 5 and 30 years.
Loan Limitations
- The minimum loan is $1,000.
- The maximum loan is $50,000 (reduced by the highest amount owed on any outstanding Plan loans over the preceding 12 months) or, if less, a loan amount which would bring your total outstanding loans to a maximum of 50% of the value of your Annuity account.
- No more than three loans may be outstanding at any time. You may not take a third loan if you have defaulted on either your 1st or 2nd loan.
- You may refinance any of your loans for the purpose of reducing the interest rate you are paying on a loan.. You may not refinance the amount or term of an existing loan.
- If you are married, you must receive your spouse’s written consent to take a loan.
Loan Repayment
- Loans are repaid through direct deductions from your bank account.
- Interest is charged at the prime rate quoted in the Wall Street Journal on the date your loan application or refinancing is processed.
- Loans may be prepaid in full at any time without penalty.
Defaulted Loans
A loan is “in default” when:
- a payment is missed, or
- after taking a distribution, the account balance is less than the total balance of all outstanding loans.
If you default on a loan, the total balance is subject to Federal income tax. In this case, you will receive a Form 1099-R the following January reporting the amount of the taxable income. If you are under age 59 1/2, you will also have to pay a 10% excise tax.
ANNUITY FORMS
Annuity Distribution Form – Account Balance Less than $5,000
Annuity Distribution Form – Account Balance Greater than $5,000
Physician Certification of Temporary Disability
(If Temporary disability, return this form with completed Annuity distribution application)
Annuity Distribution Form: For Beneficiary
Annuity Distribution Form: For Hardship
Annuity Distribution Form: For Qualified Birth or Adoption