QUESTION: What is the difference between the Pre-Oct 2004 account and the Post-Oct 2004 account and how does this affect withdrawals from these accounts? 

ANSWER:  With respect to contributions made prior to October 1, 2004, plus earnings on such contributions, as long as you have not worked in Covered Employment (employment requiring employer contributions to be paid to the Central Laborers’ Annuity Fund on your behalf) for at least eight (8) consecutive months, you can withdraw that portion of your account (provided you meet all eligibility requirements).  With respect to contributions made on or after October 1, 2004, plus earnings on such contributions, as long as you have not worked in Covered Employment for at least twelve (12) consecutive months, you can withdraw that portion of your account (provided you meet all eligibility requirements).  To help isolate these portions of your account, the Pre-October 2004 and Post-October 2004 accounts were created.

QUESTION: When are annuity statements mailed?

ANSWER: Annuity statements are mailed twice a year, about 2 months after the March 31^st valuation and the September 30^th valuation.

QUESTION: How can I withdraw my annuity account?

ANSWER: There are 7 different ways you can withdraw your annuity account.

(1) You reach age 65 or retire with a pension from the Central Laborers’ Pension Plan.

(2) You become totally and permanently disabled as determined by the Trustees.

(3) You become occupationally disabled as determined by the Trustees.

(4) With respect to any contributions made on or after October 1, 2004, plus earnings on such contributions, you have not worked in Covered Employment requiring employer contributions on your behalf to this Fund for at least twelve (12) consecutive months, you are not working in Covered Employment at the time the payment of your benefit is made, and all other events, if any, have occurred which entitle you to payment of your benefit.

(5) With respect to contributions made prior to October 1, 2004, plus earnings on such contributions, you have not worked in Covered Employment requiring employer contributions on your behalf to this Fund, for at least eight (8) consecutive months, you are not working in Covered Employment at the time the payment of your benefit is made, and all other events, if any, have occurred which entitle you to payment of your benefit.

(6) You leave Covered Employment and enter the Armed Services of the United States for a period of at least 90 consecutive days and during such period you did not work in Covered Employment for which contributions are received by this Fund on your behalf.

(7) You reach age 70½, even if you are still working in Covered Employment. (Federal law requires that the distribution begin on the April 1 following the end of the year in which you reach age 70½).

QUESTION: I don’t meet any of the regular rules, is there any other way to withdraw my annuity account?

ANSWER: Yes. The Fund offers hardship withdrawals in the event an immediate and heavy financial need occurs while the participant is actively employed. Please refer to the Summary Plan Description for a description of the eligible hardship types, which are recognized as “safe harbor” events under Internal Revenue Service regulations. A participant is limited to six in-service withdrawals during his/her lifetime. The minimum amount that may be withdrawn is $1,000.00, and the maximum amount available for the hardship distribution cannot exceed 95% of the participant’s individual account balance as of the most recent valuation date before the withdrawal, or the actual amount of hardship requested, whichever is less.

QUESTION: Do I have to pay taxes on my annuity upon withdrawal?

ANSWER: Yes. Federal law requires the Fund to withhold 20% of the payment and send it to the Internal Revenue Service as income tax withholding to be credited against your taxes. If you receive the payment before age 59 ½, you may have to pay an additional 10% federal income tax. If you choose a direct rollover, your annuity payment will not be taxed. It will be taxed later when you take the money out of the IRA or a qualified retirement plan.