Annuity

Benefit Summaries

These summaries are consise versions of the highlights of major plan features and rules. They are meant for easy reference, particularly on a mobile device, and are not intended to be authoritative.

The Summary Plan Description (SPD) contains the full description of the Plan rules and benefits. When in doubt, consult the SPD.

  • Plan Overview

    Annuity Fund — Plan Overview

    The Local No. 701 I.B.E.W. Retirement Savings Fund (the “Retirement Savings Fund”) is a participant-directed retirement plan designed to provide a source of financial income during retirement.

    What the plan is

    Once you become a participant, the Fund establishes an individual account in your name. Employer contributions are credited to your account, and your benefit is based on the value of that account, including:

    • Employer contributions
    • Investment earnings or losses
    • Plan expenses allocated to accounts

    Because this is a participant-directed plan, you choose how Employer contributions are invested among the investment options offered by the Fund. Investment results are not guaranteed.

    Becoming a participant

    You become a participant in the Retirement Savings Fund on the first day you earn one Hour of Service in covered employment.

    Vesting

    You are always 100% vested in your individual account.

    Plan administration

    The Retirement Savings Fund is administered by the Board of Trustees, which has the exclusive authority to interpret the Plan and determine eligibility and benefits. The Trustees reserve the right to amend, modify, or discontinue the Plan as permitted by law.

    How benefits are paid (overview)

    When you become eligible for payment under the Plan, your account may generally be paid as:

    • A lump-sum payment, or
    • Equal monthly installments.
  • Contributions

    Annuity Fund — Contributions & Individual Account Overview

    Employer contributions

    Employer contributions to the Retirement Savings Fund are made on your behalf under the terms of the applicable collective bargaining agreement or participation agreement. Contributions are based on hours worked in covered employment and are paid directly to the Fund by contributing employers.

    Your individual account

    After you become a participant, the Fund maintains an individual account in your name. This account is used to track:

    • Employer contributions made on your behalf
    • Investment earnings or losses
    • Plan expenses allocated to your account

    Your account balance represents the value of your retirement benefit under the Plan.

    When contributions are credited

    Employer contributions are credited to your individual account after they are received by the Fund Office. Once credited, contributions are invested according to your current investment elections, or the Plan’s default investment if you have not made an election.

    Investment of contributions

    All Employer contributions are invested in the investment options you select from those offered by the Plan. You may change your investment elections as allowed by Plan procedures. Investment gains or losses are applied directly to your individual account.

    Account statements and access

    You receive regular account statements showing contributions, investment performance, and your account balance. You may also access your account and make investment changes through the Plan’s designated recordkeeper by phone or online.

    Ownership of contributions

    All Employer contributions credited to your individual account are fully and immediately vested. Your account balance reflects Employer contributions, adjusted for investment performance, and reduced by applicable Plan expenses.

  • Elective Deferrals (Employee Elective Deferral 401 K Contributions)

    Elective Deferrals (Employee “Elective Deferral” Contributions)

    In addition to employer contributions, the Plan allows you to make Elective Deferrals, which are amounts you authorize your employer to deduct from your paycheck and remit to the Fund for deposit into your individual Annuity account.

    Annual limits

    • Elective Deferrals may not exceed $23,500 for 2025, as indexed in future years by the IRS.
    • This is an employee contribution limit, separate from and in addition to employer-paid contributions.

    Withdrawal restrictions

    • Elective Deferrals cannot be withdrawn while you are still employed, except upon:
      • Termination of employment
      • Retirement
      • Disability
      • Death

    Account crediting & investment

    • Elective Deferrals are credited to your individual account when received by the Fund Office, then invested according to your current investment elections, or the Plan’s default investment if no election is on file.
    • Investment gains or losses apply directly to the portion of your balance that includes Elective Deferrals.

    Ownership & vesting

    • Elective Deferrals, once credited, are owned by you and tracked within your individual account alongside employer contributions, investment results, and allocated Plan expenses.
    • Unlike employer contributions, Elective Deferrals are not automatically vested by employer service—they vest according to the Plan’s vesting rules applicable to employee contributions (see the Annuity SPD “Vesting” section for specifics).
  • Loans

    Annuity Fund — Loans Overview

    Availability of loans

    The Retirement Savings Fund allows loans from your individual account, subject to the rules and limitations set out in the Plan and applicable law. Loans are optional and are not guaranteed to be available in all circumstances.

    Loan source

    Any loan you receive is made from your individual account balance. The amount you borrow reduces the balance that remains invested in your account while the loan is outstanding.

    Loan limits

    • The minimum and maximum loan amounts are set by the Plan and federal law.
    • You may not borrow more than the maximum percentage or dollar limit permitted under IRS rules.
    • Your available loan amount depends on your vested account balance and any outstanding loans.

    Repayment

    • Loans must be repaid through regular payments, generally by payroll deduction or other approved payment method.
    • Loan repayments, including principal and interest, are credited back to your individual account.
    • Loans must be repaid within the maximum repayment period specified by the Plan.

    Interest and fees

    • Loans are charged interest, which is paid back into your own account.
    • Administrative fees may apply for processing and maintaining a loan.

    Effect of default

    If you fail to repay a loan according to Plan rules:

    • The outstanding loan balance may be treated as a taxable distribution.
    • Additional taxes and penalties may apply.
    • The unpaid balance will permanently reduce your retirement account.

    Important considerations

    Loans reduce the amount of money invested for retirement and may affect long-term account growth. You should carefully consider the impact of a loan before borrowing from your Retirement Savings Fund account.

  • Withdrawal

    Annuity Fund — Withdrawals & Distributions Overview

    When withdrawals are allowed

    You may withdraw money from your individual account only when permitted by the Plan and applicable law. In general, distributions are available when you experience certain qualifying events or meet specific age or service requirements.

    Distributions after employment ends

    You may be eligible to receive a distribution from your individual account if you:

    • Stop employment or self-employment as an electrician on or after age 55 and apply for benefits, or
    • Stop employment or self-employment as an electrician in the construction industry within the Union’s geographic jurisdiction for at least 12 consecutive months, or
    • Become totally and permanently disabled, or
    • Die (benefits are paid to your beneficiary), or
    • Reach the Plan’s required minimum distribution age, even if you continue working in covered employment.

    In-service distributions

    The Plan permits in-service distributions while you are still working in covered employment, subject to Plan rules. In general:

    • You may take an in-service distribution after reaching the applicable age specified in the Plan.
    • You may not take an in-service distribution in the same calendar year in which you receive a loan from the Plan.
    • In-service distributions are subject to Plan limits, IRS rules, and required minimum distribution rules.

    In-service distributions reduce the balance of your individual account and may affect your future retirement income.

    Forms of payment

    When a withdrawal or distribution is approved, benefits are generally paid as:

    • A lump-sum payment, or
    • Equal monthly installments, as permitted by the Plan.

    Taxes and withholding

    • Most withdrawals are subject to federal income tax withholding.
    • Early withdrawals may be subject to additional IRS penalties unless an exception applies.
    • You may be able to roll over an eligible distribution to another qualified retirement plan or IRA to defer taxes.

    Important considerations

    Withdrawals permanently reduce your retirement savings. You should carefully review the tax consequences and long-term impact on your account before requesting a distribution.

  • Payment Options

    Annuity Fund — Forms of Payment Overview

    Available forms of payment

    When you become eligible to receive a distribution from your individual account, the Retirement Savings Fund offers the following forms of payment, subject to Plan rules and applicable law.

    Lump-sum payment

    A lump-sum payment pays the entire value of your individual account in a single payment. After the lump sum is paid, you will have no remaining balance in the Plan.

    • An eligible lump-sum payment may be rolled over to an IRA or another qualified retirement plan to defer federal income taxes, in accordance with IRS rules.
    • If you choose not to roll over an eligible lump-sum payment, the distribution will generally be subject to federal income tax withholding.
    • If you receive a lump-sum payment before age 59½, additional IRS early-distribution penalties may apply unless an exception applies.
    • State and local taxes may also apply, depending on your residence.

    Monthly installment payments

    You may elect to receive your account balance in equal monthly installments. Installment payments continue until your individual account balance, including investment earnings or losses and applicable Plan expenses, is exhausted.

    Required minimum distributions

    If you reach the Plan’s required minimum distribution (RMD) age, the form and timing of your payments must satisfy IRS required minimum distribution rules, even if you are still working in covered employment.

    Choosing a payment option

    Your choice of payment method affects the timing of your income and potential tax consequences. You should carefully consider your personal financial situation before selecting a form of payment.