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John Hancock Retirement Planning Services is the record keeper for the Supplement Retirement Plan. Distribution applications must be requested directly from John Hancock. Visit www.mylife.jhrps.com or call 855-312-CRCC (2722) to request an application. Para informacion en espanol, llame al 888-440-0022.

Can I Receive My Account Balance Before Retirement or Terminating Employment?
Yes, in limited circumstances. The Supplemental Retirement Plan is intended to provide you with benefits during your retirement. Therefore, you have very limited access to your account balance until then. The following three sections provide information on the different types of distributions you may receive while employed. 

1.)    Hardship Distributions
You may take a Hardship Distribution from the Plan twice within a rolling 12 month period. (Foreclosure and tuition hardships may be made more than twice in a rolling 12 months, provided certain conditions are met). You may take a Hardship Distribution from the Supplemental Retirement Plan for the following reasons:

  • Expenses for medical care (that are not covered by insurance) that are less than two years old for you, your spouse, or your dependents,
  • Costs directly related to the purchase of your principal residence (excluding mortgage payments),
  • Payments of tuition, related education fees, and room and board expenses for the next twelve months of post-secondary education for you, your spouse, or your dependents,
  • Payments necessary to prevent eviction from your principal residence,
  • Payments necessary to prevent foreclosure on your principal residence, or
  • Costs relating to funeral or burial expenses for a parent, spouse, child or eligible dependent.
You may withdraw only the amount necessary to satisfy the immediate hardship need (including amounts necessary to pay any federal, state, or local income taxes or penalties reasonably anticipated to result from the distribution). The minimum amount of a Hardship Distribution is $1,000 or your total Supplemental Retirement Plan account balance, whichever is less.  If you are applying for a Hardship Distribution and you do not supply the information necessary to support your hardship distribution request (listed on the distribution form), the Fund Office will deny your application.
2.)    Age 59 ½ or Older Distributions
If you are age 59-1/2 or older, you may take an In-service Distribution of up to 100% of your account balance (or you may designate a lesser) amount once every rolling twelve months.
3.)     Younger Than Age 59 ½ Distributions
Once every rolling twelve months, you may take an In-Service Distribution of all or any portion of your account except employer contributions made to your account during the 24 months preceding the date of distribution. 
Example #1:
Your application is received in the Fund Office on April 1, 2016:
Balance as of April 1, 2016                       $10,000.00
Subtract employer contributions during
the prior 24 months                                -  $7,000.00
Amount Eligible for Distribution          $ 3,000.00 
The Supplemental Retirement Plan is intended to help you be financially prepared for your retirement years. Accordingly, the rules governing In-service Distributions are restrictive and conservative. Because the amount of any previous distribution(s) reduces the amount available for this type of distribution, you may not qualify for this type of distribution. 
Example #2:
Balance as of April 1, 2016                         $6,000.00
Subtract employer contributions during
the prior 24 months                                -  $7,000.00

  Amount Eligible for Distribution               zero

If I Am No Longer Working, When Will My Account Balance Be Paid to Me?
When you stop working, your balance in the Supplemental Retirement Plan will be available to be paid to you when you reach a “Settlement Date,” which means you either:
  • qualify for and begin receiving benefits from the Chicago Regional Council of Carpenters Pension Plan, the Chicago Regional Council of Carpenters Millmen Pension Plan or another similar industry pension fund; or
  • fail to receive a Plan contribution for 24 consecutive calendar months; or
  • fail to receive a Plan contribution for 12 consecutive calendar months and have an account balance of $5,000 or less; or
  • reach Normal Retirement Age (age 60).
What if I become disabled?
If the Trustees determine that you have become totally and permanently disabled, you are eligible to receive a distribution from the Plan. The Plan defines a disability as a condition, based on medical evidence, where:
  • you are unable to engage in any gainful activity due to a physical or mental impairment;
  • your physical or mental impairment is expected to result in death, or has lasted or is anticipated to last for a continuous period of not less than 12 months.
You may request a distribution application due to disability and a Medical Examination Report Form from the Plan’s recordkeeper, John Hancock.

Complete the application and have your physician complete the Medical Examination Report Form as proof of your disability. If you qualify for disability benefits from the Social Security Administration under Title II of the Social Security Act, you may provide that award letter as proof of your disability in place of the Medical Examination Report Form.
 
How Will My Account Balance Be Paid?
When you become eligible to receive payment of your account balance as outlined above, you may choose to have it paid to you: 
  • one lump sum; you may elect to receive this payment in a:

        -    direct rollover to another qualified retirement plan or an IRA;
        -    check payable to you; or
        -    combination of the above, provided the direct rollover portion is at                            least $500;

  • a series of equal monthly, quarterly, semi-annual or annual installments; or

  • a series of equal monthly, quarterly, semi-annual or annual installments over a certain period, but in no event longer than the joint and last survivor expectancy of you and a beneficiary.

Once you start installment payments you are able to change them once in a rolling 12 month period. Also, the Plan does not allow for installment payments if your total account balance is $1,000 or less.
 
  • In addition to other lump sum distribution options described above, you may elect to take a partial lump sum distribution once during a rolling 12-month period for any percentage up to 100% of your account balance or for a specified dollar amount up to your total account balance.  You may take a second distribution during the same rolling 12-month period provided the second distribution is for the full amount of your remaining account balance. 
What Do I Have to do to Receive My Account Balance?
To request an application, visit www.mylife.jhrps.com or call John Hancock at 855-312-CRCC (855-312-2722).
Once your completed application is received in the Fund Office, approximately 7-10 business days are required for processing.
What Happens to My Account Balance If I Die?
Upon your death, your account balance will be paid to your designated beneficiary. (If you are married when you die, your spouse will be your beneficiary, unless you have designated another beneficiary, with your spouse’s consent.) You may designate a beneficiary by completing an Supplemental Retirement Plan Beneficiary Designation form. Click here to download the form.
What Happens to My Account Balance If I Die Without a Beneficiary?
If you die without a valid designation of beneficiary on file, your benefit shall be paid to:
  • your surviving spouse
  • if none, then your surviving children including adopted children, in equal shares
  • if none, then to your surviving parents, in equal shares
  • if none, then to your estate.
What happens if I do not request a distribution?
If you are still employed at age 70½, your Plan account must be distributed beginning no later than the April 1st following the year in which you terminate employment. If you have terminated employment, you may not elect to defer benefit payments past the April 1st following the calendar year in which you reach age 70½.
Unless you elect to defer distributions, the Plan Administrator will automatically direct the recordkeeper to distribute your Plan account no more than 60 days after the close of the Plan year in which the later of the following occurs:
  • you reach normal retirement age (age 60),
  • your 10th anniversary of participation in the Plan, or
  • your employment with your employer terminates.

If you do not request a distribution by completing and submitting a Distribution Form, the Plan Administrator will treat you as having made a decision to defer payment of your Plan account.

What is a direct rollover?
A direct rollover is a payment of your account to your IRA or to another employer’s retirement plan that accepts your rollover. A direct rollover also may be made to a Roth IRA. Certain distributions cannot be paid in the form of a rollover, such as hardship distributions and required minimum distributions after age 70½.

Can I roll my distribution over tax-free to an IRA or other qualified plan?
You may directly roll over eligible distributions to an IRA or another qualified plan in two ways. You can have your payment either paid as a direct rollover or paid directly to you. Your choice will affect the tax you may owe. In either case, the rollover amount must equal at least $500.

To help you determine the best way for you to receive payment of your account and understand the tax consequences of the benefits you receive, you should consult a qualified tax advisor.

What if I want to directly roll over my distribution?
If you, your surviving spouse beneficiary (for a death benefit distribution) or your former spouse who is an alternate payee under a qualified domestic relations order (QDRO) choose a direct rollover, your payment can be made directly to:

  • an individual retirement account (IRA) under Internal Revenue Code Section 408(a);
  • a Roth IRA;
  • an individual retirement annuity under Internal Revenue Code Section 408(b);
  • an Internal Revenue Code Section 403(a) annuity plan;
  • an Internal Revenue Code Section 403(b) tax-sheltered annuity contract;
  • another employer’s plan qualified under Internal Revenue Code Section 401(a) that accepts your rollover; or
  • an eligible Internal Revenue Code Section 457(b) plan maintained by governmental employer.

However, beginning in the year you reach age 70½, you cannot roll over a certain portion of your payment because it is a required minimum payment that must be paid directly to you.

Additionally, death benefit distributions to non-spouse beneficiaries may be rolled over only to an “inherited IRA.”

Will taxes be withheld if I elect a direct rollover?
No. Your payment will be made directly to your IRA or, if you choose, to another employer’s retirement plan that accepts your rollover. If you do so properly, then the tax impact of your direct rollover is that:

  • your payment will be taxed later when you receive a distribution from your non-Roth IRA or other employer’s retirement plan. You may avoid a 20 percent withholding tax and additional 10 percent penalty tax (if applicable) by rolling over the taxable portion of your distribution directly to an eligible retirement plan that accepts rollovers.
  • your payment will not be taxed in the year the distribution is made and no income tax will be withheld, unless the direct rollover is to a Roth IRA.

However, you will be taxed later when you take a distribution from the IRA or the employer’s retirement plan.

What are the tax consequences for a direct distribution that qualifies for rollover?
If you choose to have your distribution paid directly to you:

  • you will receive only 80 percent of the payment, because Federal law requires that the Plan withhold 20 percent of the payment and send it to the Internal Revenue Service as income tax withholding to be credited against your taxes;
  • your payment will be taxed to you in the year distribution is made unless you roll it over to a non-Roth IRA. If you receive a payment before age 59½, you also may have to pay an additional 10 percent federal excise tax for early withdrawal (plus any applicable state penalty tax for an early withdrawal). If you terminate employment during or after the calendar year in which you reach age 55, you may receive payment without the additional 10% federal excise tax;
  • you may roll over the distribution by paying it within 60 days of receiving the payment to your IRA or to another qualified retirement plan that accepts your rollover, and the amount will not be not be taxed until you take it out of the IRA or other qualified retirement plan; or if you want to roll over 100 percent of the payment to an IRA or another employer’s retirement plan that accepts your rollover, you must find other money to replace the 20 percent that was withheld (if you roll over only the 80 percent that you received, you will be taxed on the 20 percent that was withheld and is not rolled over).

Federal law requires the Fund Office to provide you with a “Special Tax Notice Regarding Plan Payments” if you apply for a distribution that can be rolled over. This notice describes your rights and obligations regarding rollovers and withholding requirements. John Hancock, the Plan’s recordkeeper, will send you this notice along with the Distribution Form.

How do I find out more about tax consequences for distributions?
To determine what may be the best way for you to take a distribution from your Plan account (lump sum, installment payments or rollover) and the tax consequences of any payments you receive, you should discuss your particular circumstances with your tax advisor. The Trustees or the Fund Office staff can only inform you of your options and the Plan provisions; they cannot help you make decisions regarding your account.

 

 
 
 

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