LUSP provides participants the opportunity to save in a Secure Fixed Income Plan. The guaranteed interest rate is negotiated annually with the Chairman of the Trust and the Plan Administrator.
At the annual meeting in December, Nationwide agreed to pay 3.05% on deposits in the Trust, for the 2019, plan year. The decline of interest rates in the last few years has made it difficult to find yields that will support a higher rate. The Trustees feel that this rate is a superior one.
The Guaranteed Rate is the minimum that will be paid. On the average, the actual rate paid to participants exceeds the minimum guarantee. More than 3500 Union members will enjoy this tax‑deferred rate on more than $110 million in savings. This is a new milestone for the Trust.
All Union members are entitled to participate in the plan. Many members have found that saving in the Trust provides some stability in their retirement planning. Their 401‑K savings are more exposed to the wide fluctuations of the stock market. Most financial planners will agree that some stable funds are needed to guard against wide market swings.
There is a wide range of annuity products available to participants when you are ready to retire. There is never a requirement to begin taking your savings. You may withdraw your funds at anytime without any interest penalty. If you would like more information about this plan, please call us at 845-367-7625 or send us an email, general@lusptrust.org.
Sincerely,
Board of Trustees, Chairman, Richard Daly
