UA Local 447 Pipe Trades Trust Funds

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Section III. Payment Of Retirement Benefits

When you retire, you may choose the form in which your benefits will be paid. You are not allowed to change the form of payment after you have begun receiving benefits. The payment forms available are:

Lump sum payment equal to the entire value of your benefit account.
Equal monthly payments until your account balance runs out. You select the amount of the monthly payment. Your monthly payments must equal or exceed the minimum amount required by law.
Partial lump sum followed by equal monthly payments until your account balance runs out. You select the amount of the partial lump sum and the amount of the monthly payment. Only one (1) partial lump sum is permitted. Your monthly payments must equal or exceed the minimum amount required by law.
Monthly pension for your lifetime. If you choose this form, the Plan will purchase a commercial annuity from a life insurance company or other financial institution on your behalf. The amount of the annuity will depend on current interest rates and your life expectancy. The amount of monthly payment will be disclosed before you elect this method.
If you are married, a 50% joint and survivor annuity. This form provides a reduced monthly pension for your lifetime and after your death a monthly payment to your spouse equal to ½ the monthly amount paid to you. If you choose this form the Plan will purchase a commercial annuity from a life insurance company or other financial institution. The monthly amounts will vary depending on current interest rates and the age of you and your spouse, but will be the actuarial equivalent of a pension payable for your lifetime only.

If you are receiving your benefits under 2 or 3 above, you may elect to receive your remaining account balance in a lump sum at any time after benefits have commenced.

If you are married and you do not wish to receive the 50% joint and survivor annuity, you may select another form of benefit with your spouse's consent. This consent must be in writing, witnessed by a notary public and obtained within ninety (90) days of your annuity start date.

If you elect a lump sum or partial lump sum form of payment, you may direct the Plan to pay all or any part of your benefit directly to an Individual Retirement Account or to another tax-qualified pension plan. The amount rolled over to an IRA or another plan will not be subject to income taxes until you withdraw it.

After July 1, 1998, you may elect to have your benefits in the U.A. Local No. 447 Pension Plan increased by the actuarial equivalent of a rollover contribution or elective transfer of funds from your account in this Plan. The amount of such rollover or transfer cannot be less than $10,000 and, if you are married, such a rollover or transfer, like any distribution that is not in the form of a joint and survivor annuity, requires your spouse's written consent.

Any lump sum or partial lump sum amount that is not rolled over is subject to mandatory 20% withholding for federal income tax.