LUSP is a non-qualified Trust Fund, which was established in 1974. It was started for the purpose of providing a savings vehicle for Union members who joined the trust on a voluntary basis.
The fund is governed by a Board of Trustees and managed by the Chairman of the Trust and the Plan Administrator.
Contributions are made by participants in units of $7. Any multiplication of $7 is acceptable for payroll authorization without limit.
Participants may also make lump sum deposits of $500 or more without limitation.
All principal of contributions are on an after tax basis. All earnings on the contributions are tax deferred until such time as a distribution is made. In the event a participant elects to make a withdrawal, and he/she is not at least 59 1/2 years old, the 10% excise tax may apply.
Contributions and earnings are guaranteed by the funding agent, Nationwide. Neither the FDIC, nor any other federal or state agency guarantees the plan assets.
Each year, Nationwide and the Trustees reach agreement on the earnings guarantee for the coming year.
Nationwide, manages all the plans assets. They are commingled in a single fixed income group annuity investment portfolio.
Participant account records and quarterly statements are prepared and maintained by Nationwide.
Participants are permitted to take a full withdrawal at any time and a partial withdrawal once every 12 months.
A. A full distribution of the entire account. The participant is suspended from future participation for a period of six months with every complete withdrawal. A $50 fee is charged.
B. A partial distribution once in a 12-month period. Distribution must be at least $500. A maximum of 60% of the account value is allowed with each election. A $25 fee is charged
C. All appropriate tax laws apply. Currently the TEFRA regulations regarding distributions imply some mix of contributions and earnings. Earnings are subject to tax as ordinary income. All contributions are not subject to taxation.
Participants are permitted more options after separation from service.
a. Participants are not required to take a distribution from the plan after they leave employment. The 70 1/2 rule does not apply because this is an unqualified plan. They are permitted to leave their deposits for an unlimited period of time.
b. Participants may take their entire balance upon leaving employment. All tax rules apply on the taxable portion of the distribution.
c. Since this is an unqualified plan, IRA rollovers are not permitted undercurrent IRS regulations.
d. Participants may elect to purchase an annuity. They may get their own annuity or apply for one of the many products offered by Nationwide. This option includes the right to make a 1035 annuity exchange. Participants should consult with our Financial Advisor before making these decisions.
Participants may designate beneficiaries to receive their account balance in the event of the participant’s death.
Beneficiaries have the right to take the entire account subject to current tax laws on the taxable portion. They may also leave the account and just change the name on the account to their own.
Beneficiaries may also elect to take the account in the form of an annuity.
See Frequently Asked Questions for more information.
To enroll in the plan, make changes to your account or make a lump sum deposit, click on Forms.
