You are eligible to receive your Annuity Plan benefit when you:
- Become totally disabled;
- Retire; or
- Have no contributions paid to the Fund on your behalf during a six-consecutive-month period.
Because the Annuity Plan is designed to provide retirement income, certain rules apply as to when you become eligible to receive the money in your account as explained in this section.
Eligibility for Payment of Benefits
If you become “totally disabled,” you will be eligible to receive a benefit from the Annuity Plan. You are considered totally disabled if you:
- Have a physical or mental condition that prohibits you from performing any employment; and
- Are eligible for a Social Security disability benefit.
The Plan will require that you provide evidence of your entitlement to a Social Security disability benefit award.
You are eligible to receive a benefit from the Annuity Plan when you retire. The normal retirement date is age 62. Payment may be deferred until no later than April 1 following the calendar year in which you reach age 70½.
If You Leave Employment Before You Retire
You are eligible to receive a benefit from the Annuity Plan if contributions have not been paid to the Fund on your behalf within a six-consecutive-month period by a contributing employer. To receive a benefit from the Annuity Plan, you need to provide proof that contributions have not been paid to the Fund on your behalf within a six-consecutive-month period and file a claim for benefits.
Payment of your benefit will generally begin as of your normal retirement date (generally age 62). However, no payment can begin before the Trustees are able to locate you, your heirs, or your legal representative.
If you are eligible to receive an early distribution from the Annuity Plan and are under age 59½ when you withdraw your account balance, your withdrawal will be subject to a 20% withholding tax and an additional early withdrawal tax penalty of 10%. Therefore, you may want to consult your tax advisor before making a withdrawal from your Annuity Plan account.
In addition to the above, if no contributions have been made on your behalf by a contributing employer for six consecutive monthsand the value of your account is $1,000 or less, the Trustees may distribute your account to you as a lump-sum payment.
A six-month break in service is a six-consecutive-month period during which no contributions have been paid to the Annuity Fund on your behalf by a contributing employer, beginning on the date you terminate employment. Any Family Medical Leave Act (FMLA) leave granted by your employer will not be counted as a break in service.
Required Beginning Date
April 1 following the calendar year in which you reach age 70½