Hardship Withdrawals

Under certain extreme cases of immediate and heavy financial hardship, you may be eligible to withdraw a portion of your Individual Account even though you have not separated from service with a contributing employer. There are two types of occurrences approved by the Trustees for Hardship Withdrawal:

  • An immediate and heavy financial hardship resulting from unreimbursable medical expenses incurred by you or your dependents, or
  • An immediate and heavy financial hardship that will cause you to suffer eviction from or mortgage foreclosure on your principle residence.

The Trustees urge you to use this provision only as a last resort.

The Plan is a retirement plan, and accessing money in your Individual Account prior to your retirement defeats the primary purpose of the Plan—to provide you and your family with additional financial security during your retirement years. Furthermore, a Hardship Withdrawal is fully taxable to you for the tax year you receive the Hardship Withdrawal and often is subject to additional excise taxes.

Documentation of Hardship

In order to receive a Hardship Withdrawal, you must provide a written statement specifying the nature of the immediate and heavy financial need and stating that you lack other financial resources available to you to meet the financial need.

A distribution will be considered as necessary to satisfy your immediate and heavy financial need if, among other requirements, you have obtained all distributions you could otherwise be eligible to receive under any other plan maintained by your employer other than a Hardship Withdrawal from this Plan.

The distribution is not in excess of the amount of your immediate and heavy financial need, including any amounts necessary to pay any federal, state or local income taxes or penalties reasonably anticipated to result from the distribution.

75% Joint and Survivor Annuity Option

If you are married on your effective date, and your Accumulated Share is $5,000 or more, you may reject the 50% Joint and Survivor Annuity and elect the 75% Joint and Survivor Annuity Option. This payment form provides you with an actuarially reduced monthly benefit during your lifetime and, if you die before your spouse, your surviving spouse will begin receiving a monthly benefit for his or her lifetime equal to 75% of the monthly benefit you were receiving.

Other Hardship Withdrawal Rules

The following rules also pertain to Hardship Withdrawals:

  • You must seek counseling from an independent service selected by the Trustees before your application for a Hardship Withdrawal will be processed by the Fund Office. The counseling service will verify directly to the Fund Office that you have been counseled.
  • You may not withdraw more than 75% of the balance of your Accumulated Share.
  • You may receive only one Hardship Withdrawal during any 12-month period.
  • The minimum amount of the Hardship Withdrawal is $2,000.00.
  • Your request for the Hardship Withdrawal must be made on the appropriate application form. This form may be obtained by contacting the Fund Office.
  • If you are married, your spouse must consent to the Hardship Withdrawal.
  • A Hardship Withdrawal is not an eligible Rollover Distribution.
  • You cannot pay back to the Plan any amounts your receive as a Hardship Withdrawal.

Hardship Withdrawals are payable in the form of a lump sum, and will be paid as soon as administratively practicable after approval.

Hardship Withdrawals are Taxable!

Money received as a Hardship Withdrawal will be treated as taxable income for federal tax purposes. Also, if you are not age-59½ or older, your Hardship Withdrawal may be subject to an additional 10% federal excise tax. The Plan will not deduct this amount; it will be your responsibility to pay.