SIS PENSION FUND-AGE 59 ½ DISTRIBUTION NOTICE
Friday, February 10, 2023
2023 PARTICIPANT NOTICE
One-Time, Lump Sum Distribution Option for Eligible Participants At Least Age 59 ½
The Trustees of the Sprinkler Industry Supplemental Pension Fund (“SIS Pension Fund”) appreciate the many advantages a retirement plan can offer. Accordingly, they regularly review the SIS Pension Fund and evaluate new features that may be appropriate to serve your needs. As a result of this on-going review, the Trustees have extended the availability of its previously introduced one-time, age 59 ½ lump sum distribution feature (“Age 59 ½ Distribution”).
Eligibility Criteria. An Age 59 ½ Distribution is available only to Participants who have reached at least the age of 59 ½ at the time of their application. It allows eligible Participants to make a one-time withdrawal of up to thirty percent (30%) of their Individual Account, valued as of the Effective Date of benefits, in a single lump sum, to enable them to deploy such assets in furtherance of their retirement plans. In other words, you must be at least age 59 ½, no more than thirty percent (30%) of your Individual Account may be withdrawn, no more than one distribution may be made, and the distribution must be made in a single lump sum.
Application Requirement. To receive an Age 59 ½ Distribution, eligible Participants must submit an application. Application forms are available from the Fund Office. A married Participant must provide the Fund Office with his or her Spouse’s notarized, written consent to the distribution. Or, instead of providing notarized consent, a representative from the SIS Pension Fund may witness your Spouse’s consent.
Federal Tax Issues. The Age 59 ½ Distribution is an eligible rollover distribution that is subject to mandatory 20% federal income tax withholding. However, a Participant 59 ½ years of age or older should not be assessed the 10% federal income tax penalty that applies to early withdrawals. If you have questions regarding the tax consequences of this distribution, you should consult your tax advisor before you apply for the distribution.
One-Time Distribution Limit. The Age 59 ½ Distribution feature was first made available during a portion of the 2022 Plan Year. We emphasize that Participants are eligible to receive one single Age 59 ½ Distribution during their lifetime, regardless of its amount. Therefore, if you have already received an Age 59 ½ Distribution, you will not be eligible to receive another Age 59 ½ Distribution.
Conclusion. As stated above, the amount of your one-time Age 59 ½ Distribution, assuming you meet the eligibility criteria, will be an amount of your choosing up to thirty percent (30%) of your Individual Account, valued as of the Effective Date of benefits, and payable in a single lump sum.
Before you apply for an Age 59 ½ Distribution, consider when you intend to retire, how much you will need in retirement, and how much you will have in retirement. Although the SIS Pension Fund may represent only a portion of your anticipated retirement benefits, you should carefully consider your long-term financial needs before making a withdrawal from the Fund. With that in mind, the Fund makes available a retirement planning resource at no charge to Participants.
The Trustees recognize that saving for retirement is an important part of your long-term financial well-being. Accordingly, they continue to work to provide a quality retirement plan on your behalf. If you have questions regarding this notice, please contact the Fund Office.
While this notice is intended to summarize the Plan’s rules for its Age 59 ½ Distribution feature, in the event of any doubt, discrepancy, conflict, or ambiguity between this summary and the official Plan document, the official Plan document, as interpreted exclusively by the Board of Trustees, will always govern. The Trustees reserve the right to amend the Plan, including its provisions regarding the Age 59 ½ Distribution feature, at any time.
