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Defined Contribution Pension & 401K Plan

Pension Description

The U.A. Local No. 467 Defined Contribution Plan is an individual account plan. The Defined Contribution Pension Plan, which is a Profit Sharing Plan, each covered employee accrues an account based on the number of Employer contributions made on his behalf.

Eligibility Requirements

All Employees who work in a position for which contributions are required to be made to this Plan are Participants in the Plan and all accounts are 100% vested. Nonetheless, it is possible that pension benefits may decrease because the value of your Individual Account depends upon the yields of the investment selected.

Establishment of A 401K Plan

Effective January 1, 2015, the Defined Contribution Plan was converted to also be a 401K Plan. You may elect to defer a percentage of your eligible compensation into the Plan. The percentage of your eligible compensation you elect will be withheld from each payroll and contributed to an Account in the Plan on your behalf. For pre-tax contributions being withheld from your compensation, the percentage you may defer is subject to an IRS annual limit of $19,000 in 2019. The amount may be increased in the future years as determined by the Secretary of the Treasury.

Age 50 and Over Catch-Up Contributions ($6,000 as January 1, 2019)

The Plan provides that Participants who will be age 50 and older by the end of the calendar year and who are making Deferral Contributions to the Plan may also defer a catch-up contribution of up to $6,000 in 2019. (that amount is also adjusted periodically by the Secretary of the Treasury).

The Defined Contribution Plan also continues rules on when you can receive a benefit as well as the benefit options upon your death. Please consult the Summary Plan Description for more specifics on these rules (or the full Plan document).

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