This part of your Pension Plan is known as a Defined Contribution Plan and is completely separate from Part A, the Defined Benefit Plan. Under Part B, a portion of your employer’s hourly contribution is credited to your account. Except as otherwise directed by individual participants, all plan assets are invested by professional investment managers selected by the Board of Trustees. Investments include a diversified portfolio of stocks, bonds, real estate, government issues, commercial paper, and other high-quality vehicles.
Employees are entitled to participate in Defined Contribution and 401k Plan if they work under the collective bargaining agreement between the National Electrical Contractors Association, Santa Clara Valley Chapter, and other electrical contractors and the I.B.E.W. Local 332.
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).