IUE-CWA 401(k) Plan Highlights

The following are some highlights and frequently asked questions about the IUE-CWA 401(k) Plan. For more details, please contact the plan office.

For information about including the 401(k) Plan in your collective bargaining agreement, contact Director Mike Lostutter at mike@iuepension.org or 973.893.0333.

For assistance with your 401(k) account, contact Ken Crandall, Administrator at ken@iuepension.org or 973.893.0333.

Why do we need a 401(k) Plan?

The purpose of the IUE-CWA 401(k) Plan is to allow members to save money for retirement on a tax-deferred basis.
The IUE-CWA 401(k) Plan was designed as a supplement to a traditional defined benefit pension plan or as a primary retirement savings plan.

Who is eligible to participate

Any bargaining unit of the IUE-CWA, the CWA, or any of its affiliates that can successfully negotiate the IUE-CWA 401(k) plan into their collective bargaining agreement is eligible to participate.
Non-represented employees of an employer who participates in the IUE-CWA 401(k) Plan may also participate upon agreement of the parties to the collective bargaining agreement.

How are contributions made?

All contributions made to the Plan are tax deferred. They may be made on the basis of: percent of pay, dollars per week, or cents per hour (as negotiated by the parties).
The employer agrees to withhold the amount set by the employee from each pay-period. These amounts are remitted to the Plan each pay-period.
Contributing "pre-tax" allows employees to cut the federal and state income taxes they pay each pay-period because their taxable income is lowered. Social Security tax, however, is not affected.
Taxes are not paid on these contributions until they are withdrawn from the Plan.

How is the Plan flexible?

There are 5 plan versions:

1. The employer makes no contributions. Employee contributions are voluntary.
2. The employer makes contributions at an established rate or rates, and employees can voluntarily supplement these contributions.
3. The employer matches a set portion of all employee contributions. Employee contributions are voluntary.
4. The employer matches a set portion of all employee contributions. Employee contributions are mandatory.
5. The employer makes 100% of the contributions to the Plan. Employees cannot make contributions.

How do we participate?

The only requirements for negotiating the Plan into a collective bargaining agreement are:
The text and provisions of the Memorandum of Agreement (MOA) supplied by the IUE-CWA 401(k) Plan. It may not be altered in any way and must be signed by both parties in addition to the collective bargaining agreement.
The Plan was designed to be flexible for the participants and employers with 5 different Plan versions to choose from and other built-in features. The IUE-CWA 401(k) Plan administers a single plan with multiple employers. This arrangement provides economy of scale, however, precludes agreements or arrangements contrary to the Plan's provisions.

How do we enroll?

A representative from the Plan office may be able to attend negotiations or speak directly with the company and union to answer any questions about the Plan.
For employees to enroll, the MOA requires:
The company will allow an initial education and enrollment meeting(s) for 1 hour (employer paid) during which all eligible employees will attend.
The education and enrollment meeting conducted by a 401(k) Plan representative will provide employees the necessary information to enroll and participate in the Plan.

When is the money vested?

Because the Employee contributions come directly from their gross pay, they are immediately 100% vested.
Participants are also immediately 100% vested in the contributions made by their employer.

When do I get my money?

Participants may take a distribution of their IUE-CWA 401(k) account for the following reasons only:

1.Departure from the employer for any reason.
2. Death (beneficiary will receive account balance).
3. Disability (with Social Security Disability award).
4. Retirement (as early as age 55).
5. Hardship withdrawals as defined by the Plan.

6. General Purpose and Primary Residence Loans.

7. Age 59 1/2 Withdrawals

When a participant qualifies for one of the above distributions and has not reached 59 1/2 years old, the IRS imposes a 10% tax penalty in addition to regular income taxes.

What are the Employer's Responsibilities?

The employer must forward all contributions to the IUE-CWA 401(k) Plan within 7 days of the end of each pay-period.
The employer will forward a list of names and addresses for each employee eligible for the Plan to the Plan office once per calendar year, as requested.
The employer will keep a supply of Change forms, Enrollment kits, and any other information forwarded by the Plan office. They must be readily available for all eligible employees and new hires.
The employer will provide each new hire an Enrollment kit; and if the employer will be making contributions for the employees, the employer will obtain a completed Enrollment form and forward it to the 401(k) Plan office.
The employer will provide, upon request of the Plan, any information necessary so that the Plan can conduct discrimination testing to comply with the Internal Revenue Code.

What are the Administrator's Responsibilities?

The IUE-CWA 401(k) Plan office will:

Provide on-site enrollment and educational services. Meeting dates and time will be agreed upon after the Memorandum of Agreement is received by the office. These meetings will take place as soon as possible after the execution date of the Agreement.
Provide statements of account to each participant no less than quarterly. Each statement will include all contributions, earnings, and losses in each of the investment elections and fees paid.
Maintain the Plan in a tax qualified status.
Prepare and file all required government filings.
Respond to participant inquiries.
Communicate on a regular basis with participants.

The IUE-CWA Pension Fund Trustees:

May amend, from time to time, the Agreement and Declaration of Trust.
May, at any time, have an audit made of the employer's payroll, wage records, and other relevant financial records of the employer.

What is the cost?

An annual fee of $15 and 0.005% (5 basis points or $0.50 per $1,000) of the participant's account balances quarterly (Feb., May, Aug., Nov.). These fees are paid by the participant, unless the employer agrees to cover the costs as part of the collective bargaining agreement.
There is no other fee charged by the Plan to the employer for administration or investment in the Plan.

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IUE-CWA Pension Fund
1460 Broad Street
Bloomfield, NJ 07003
973.893.0333 / 973.893.8225 fax

This page was last modified: 02/04/2008