Termination of Employment

If you have terminated Covered Employment but have not reached your normal or early retirement date, you will be entitled to a distribution of your individual account, provided at least twelve consecutive months have passed since your most recent employment in covered employment or non-covered electrical employment in the six county jurisdiction of the Plan, (See Article VI, Section 1(b) of the Plan Document), or if you have been awarded a pension from the IBEW (I.O. Pension) or NEBF.

Amount You Will Get

The amount you can withdraw is the entire balance of your individual account. This reflects contributions and withdrawals since last quarter but no Investment returns.

Choosing How to Receive Your Withdrawal

If you are married, by law, the normal form of withdrawing your account balance is in the form of a "joint and 50% survivor annuity" unless you choose another option and your spouse consents to this in a notarized document. The joint and 50% survivor annuity provides you with monthly payments for your lifetime. If your spouse survives you, monthly payments will continue to your surviving spouse for your spouse's lifetime in an amount equal to 50% of the payments you were receiving. In defined contribution plans, most participants choose one of the other available options.

The optional payment forms for a married participant are:

1. payment in a single lump sum,
2. payment in annual installments over a period of at least two years but not more than five years,
3. a single life pension in the form of an annuity purchased through an insurance company.

If you are not married, distribution will be made as a single life annuity unless you elect otherwise. A single life annuity provides monthly payments for your lifetime, with no payments continuing after your death.

The optional payment forms for an unmarried participant are the single lump sum payment or the installment payments over two to five years.

Whether you are married or unmarried, election of an optional payment form must be made within 90 days before the date distribution of your account is made or begins.

If your balance is $5,000.00 or less, it will be paid in a single lump sum, and you cannot elect an optional form.

Tax Issues

Your withdrawal is normally treated as taxable income. In order to avoid a large tax liability you have the option to "roll over" your balance to a regular Individual Retirement Account (IRA). See the Special Tax Notice for more information.