Ship Logo

Annuity & Savings Plan

Frequently Asked Questions


Home IVR Map About Us Forms MILA POINTS OF INTEREST
anchor bullet How do I know if I'm covered by the Plan?
anchor bullet What is employment in the industry?
anchor bullet What happens if I quit?
anchor bullet When do I "retire" for purposes of the Plan?
anchor bullet When will I have an undisputed permanent termination employment from all employers
participating in the Plan?
anchor bullet Will the Plan offer advice on how to make my investment choices?
anchor bullet Are Plan benefits paid automatically after I retire or terminate my employment?
anchor bullet If I receive my benefit before age 59 1/2, will I owe a 10% tax penalty?
anchor bullet What are my payment options?
anchor bullet Can I borrow money from the Plan?
anchor bullet Can a survivor benefit be paid to someone other than the spouse?
anchor bullet Can I make after tax contributions to the Plan?

 

How do I know if I'm covered by the Plan?

You are covered by the Plan if:

  • you are an employee of a member of the Hampton Roads Shipping Association ("Employer Association") and covered by the Collective Bargaining Agreement, or of the Employer Association, the International Longshoremen's Association and/or its locals in the Port of Hampton Roads and vicinity, or the Administrative Office of the Plan;
  • your employer is participating in the Plan;
  • you are not a leased employee or a nonresident alien employee; and
  • you are employed in the industry.

You will become a Plan participant upon filing an application with the HRSA-ILA Participant Services Office, provided that it is filed no less than 10 working days before the start of a payroll week when your participation will begin. There is no minimum required age or hours of work to be eligible to participate in the Plan. See Contributing Employers for a list of employers participating in this Plan.

What is employment in the industry?                                                     Back to Top

You are employed in the industry while you are engaged in any of the following types of employment:

  • employment by one or more present or former members of the Hampton Roads Shipping Association ("Employer Association") in the Port of Hampton Roads and vicinity under a collective bargaining agreement that calls for contributions to be made to the Plan (the "Collective Bargaining Agreements");
  • employment in the Port of Hampton Roads and vicinity by the ILA and/or its affiliated locals in the capacity of a union representative or in a non-ILA staff position;
  • employment by the Employer Association or the Administrative Office of the Plan; and
  • employment by a member of the Employer Association in any position determined by
    the Board of Trustees to have been traditionally filled by ILA labor, but not subject to the terms of a Collective Bargaining Agreement, where such employment is:
    1. in the same industry
    2. in the same geographic area covered by the Plan; and
    3. in the same trade or craft (for purposes of this provision, "industry",
      "Geographic area", and "trade or craft" shall have the same definitions as contained in Department of Labor Regulation 2530.203-3(c)(2)).

What happens if I quit?

You may request a distribution of your account balance (which may be subject to a 10%
early distribution tax, discussed on page 54 of the Annuity Summary Plan Descripion), provided that you have an "undisputed permanent termination of employment from all employers participating in the Plan". Payment of your account in this event will not be made prior to six months following the date on which the termination occurred or Permanent Termination paperwork has been submitted to the Funds office, whichever is later.

When do I "retire" for purposes of the Plan?

You retire when you terminate employment from all participating employers and retire under
the terms of the Hampton Roads Shipping Association-International Longshoremen's Association Pension Plan. Under the Pension Plan, the normal retirement age is generally age 62, however, you can retire as early as the first day of the month after your age and years of benefit service under the Pension Plan total 80. Note that you may also receive benefits under the Plan without retiring. (See Payment of Benefits, page 50 of the Annuity Summary Plan Description.

When will I have an undisputed permanent termination of employment from all employers participating in the Plan?                                                          Back to Top

An undisputed permanent termination of employment is when you terminate employment from all employers participating in the Plan and certify to the Plan Administrator that you are no longer seeking work with any participating employer, and you have no intention at that time of doing so. An undisputed permanent termination will also occur when the Employer Association certifies to the Plan Administrator that you have permanently terminated employment. A leave of absence for military service, union activity, temporary disability, or like reasons will not be deemed a permanent termination of employment. You will be eligible to take a distribution of your account balance when you have an undisputed permanent termination of employment from all employers participating in the Plan.

If you elect a distribution of your account balance upon undisputed termination of employment, but you return to employment with a participating employer before distributions to you are made, your distributions will be stopped.

Will the Plan offer advice on how to make my investment choices?

No. The Plan is a self-directed account plan. You alone are responsible for making your own investment choices; and the Board, the Plan Administrator, and the Service Company are not liable for your investment choices. The Service Company will make available to you educational material to aid in your investment selection, but you are ultimately responsible for your investment decisions. A wise investor will seek out advice on investment options from a qualified source and you are strongly encouraged to discuss your options with an investment advisor of your choice. You may also contact MassMutual by selecting the link button at the bottom of this page.

Are Plan benefits paid automatically after I retire or terminate my employment?

Generally, no. If your account balance exceeds $5,000 (or has exceeded $5,000 at the time of any prior distribution) you must fill out an application form and file it with the Administrative Office of the Plan. Benefits cannot begin (unless required by IRS rules) until an application is received, and the Board of Trustees approves your application. If you retire or have an undisputed permanent termination of employment, do not return to employment for a participating employer within one year, and your account balance is $5,000 or less; the Plan may automatically distribute your account balance in a lump sum without your consent.

If I receive my benefit before age 59 1/2, will I owe a 10% tax penalty?

If, before age 59 1/2, you retire or experience another event that allows you to receive a Plan distribution, you may apply for benefits to begin. However there are important tax consequences that you should discuss with your tax advisor. If you receive a payment before you reach age 59 1/2 and you do not roll it over into another qualified plan or an IRA, then, in addition to regular income tax, you may have to pay an extra penalty tax equal to 10% of the taxable portion of the payment. The additional 10% tax does not apply to your payment if it is;

  • paid to you because you separate from service with your employer during or after the year you reach age 55,
  • paid because you have a disability under IRS rules (the IRS rules are
    somewhat more restrictive than the Plan's disability rules),
  • paid to you as substantially equal installments over your life or life
    expectancy (or the life expectancies of you and your spouse), or
  • rolled into another qualified plan or qualified IRA.

What are my payment options?

You may select any of the following payment options:

  • lump sum,
  • annuity,
  • installments, or
  • rollover distribution.

However, if you are married and select an annuity, your annuity will be paid in the form of a 50% Joint and Survivor Annuity with your spouse as the beneficiary, unless you file a notarized spousal consent form with the Plan Administrator. See page 50 of the Annuity Summary Plan Description for a fuller discussion of your payment options.

Can I borrow money from the Plan?

No. The Plan does not provide for participant loans.

Can a survivor benefit be paid from the Plan to someone other than a spouse?

Yes. However, if you are married, a notarized spousal consent form is required in order to name a beneficiary other than your spouse.

Can I make after-tax contributions to the Plan?

Yes. After-tax contributions are permitted under the Plan, subject to the IRS limits discussed in the Summary Plan Description on page 52.

Back to Top

Caremark | CIGNA | MAP | EyeMed Vision | Aetna Dental | MassMutual

HRSA-ILA Participant Services
Phone: 757-457-7090 | 1-800-899-3090 | Fax: 757-423-1205
Interactive Voice Response (IVR) 757-423-3090