$0.48 401K Contribution

Tech Illinois mandatory $0.48 contribution

To All Tech Illinois Contractors:

Please note that the $0.48 mandatory contribution has ended as of 7/30/2014. These funds must now be moved the the members wages. Please click on the link below for more information.

More Info > August 2014 Wage Package

The wage and benefit package for Technical Engineers in Illinois includes a $0.48 mandatory contribution to the Plumbers’ Retirement Savings Fund, Local 130, U.A. (the “401(k) Plan”) effective June 1, 2012. This is a three cent ($0.03) increase from $0.45 for the the prior wage package which expired May 31, 2012. Notwithstanding the terms and conditions of the wage and benefit package, to maintain favorable tax treatment the 401(k) Plan must comply with the rules established by the Internal Revenue Service for retirement plans.

Under current IRS Tax Code, only employee contributions can be made to a 401(K) Plan through a payroll deduction. Thus, to comply with the IRS rules, the compensation of an eligible employee should be increased by $0.48 per hour and then deduct the $0.48 (pre-tax) from the employee’s income as a contribution to the 401(k) Plan.

All signatory contractors are required to ensure that all 401(K) participant contributions are remitted correctly. Also please note all contractors are required to submit a current 401(K)/Savings Election Form signed by the Local 130 employee.

The IRS safe harbor rules also provide that a participant who has taken a hardship withdrawal from a 401(k) plan cannot contribute to the plan for six (6) months following the withdrawal. If an employee is not eligible to contribute to the 401(k) Plan due to the IRS’ rules related to hardship withdrawals, the $0.48 should be added to compensation and then deducted from the employee’s taxable income as an after-tax contribution to the Savings Plan. You will receive a written notice from the 401(k) Plan when an employee receives a hardship withdrawal. The notice will include the date of the hardship withdrawal and indicate the period during which the employee cannot contribute to the 401(k) Plan.

If you have further questions, please feel free to contact the Plumbers’ Local 130 Benefit Funds data Center at 312-421-1010.

Sincerely,
Terry J. Musto
Fund Administrator

UPCOMING EVENTS:

Tech Engineers
Union Meeting

Thursday, Oct 9th, 7:00pm

Chicago Plumbers Hall

Political Action Task
Force Saturdays

Saturday, Oct 18th, 8:00am

Saturday, Oct 25th, 8:00am

Saturday, Nov 1st, 8:00am

The meetings will be held in multiple locations; Chicago, Joliet, Volo and Aurora. Please click the link below for more details.

P.A.T.F Saturdays

Plumbers
Union Meeting

Tuesday, Oct 21st, 7:00pm

Local 130 Political Rally.
Bring your family and friends. Refreshments will be available.

Local 130 Political Rally

Chicago Plumbers Hall

21st Annual
Football Raffle

Sunday, Oct 26th, 11:00am

Annual Football Raffle

Chicago Plumbers Hall