Union Reps
Frequently Asked Questions
What type of Plan is the Machinists Retirement and Savings Plan?
The Machinists Retirement and Savings Plan is a defined contribution Plan. Depending on the terms of the Collective Bargaining Agreement or Special Agreement, members may be allowed to make pre-tax 401(k) or after-tax Roth 401(k) contributions directly from their paychecks into the Plan. They may also receive Employer or Match contributions. In addition, all members who are allowed to participate in the Plan may make rollover contributions into the Plan.
Is there Withdrawal Liability if an Employer terminates participation in the Plan?
No. Since the Plan is not a Defined Benefit Plan, an Employer who terminates participation does not incur any Withdrawal Liability.
What are the eligibility requirements?
Members are eligible to participate immediately upon satisfying the terms of the Collective Bargaining Agreement or Special Agreement that allows for contributions to the Plan.
When can participants enroll or change their contribution amounts?
Participants may enroll or change their 401(k) contribution rate by mailing, emailing or faxing a Salary/Wage Reduction and Enrollment form to the Administration Office. Employers will be notified during Open Enrollment (the 1st day of every month) to apply the change to their next applicable payroll period.
When can participants cancel contributions?
Participants can cancel contributions at any time by mailing or faxing a Salary/Wage Reduction and Enrollment form to the Administration Office. The Employer will be notified as soon as administratively possible to stop deductions on the next applicable payroll period.
Will participants receive Employer contributions?
Participants may receive contributions from their employers if an Employer or Match contribution is negotiated in their Collective Bargaining Agreement or Special Agreement.
How are Participant accounts invested?
The Plan is a Participant directed Plan for the 401(k), Roth 401(k) and Match contributions. This means participants may choose how to invest their account(s) from a menu of investment options. If a Participant does not make an election as to how the Plan should invest their directed account, then the Plan will invest their account into the default investment, which is the Vanguard Target Date Fund appropriate for the participant’s date of birth.
The Plan is a Participant directed Plan for the Employer contributions. This means the Plan will invest Employer contribution account into the Vanguard Target Date Fund appropriate for the participant’s date of birth.
Are there any expenses for participating in this Plan?
Yes, each individual account will be charged a flat $2.50 per month in addition to a pro-rata share of the Plan operation expenses such as administration fees, legal fees, investment advisor fees and audit costs.
How can participants access their account information?
Participants will receive quarterly statements. They may also access their account through the Plan’s website www.ebmgmt.com to view their balance and change investment selections.
When may participants take distributions?
Distributions are allowed at death, permanent disability or termination of employment (with a 30 day waiting period) from all contributing Employers to the Plan. At age 55 AND termination of employment, participants may take a distribution of their entire account. Participants who are actively employed may take a distribution from their 401(k) account at age 55 and from their Match, Employer and Rollover accounts at age 60. In addition, participants may be eligible for a loan or hardship withdrawal if certain criteria are satisfied. Please contact the Administration Office for more information on distribution options.
Who can participants contact for investment advice?
Scott Capital Advisors, the Plan’s Investment Advisor, is available to give investment advice to participants. They can be reached at (503) 487-0860. Participants should mention that they are calling about the Machinists Retirement and Savings Plan.
Who can Participants, Employers or Union Representatives contact for all non-investment related questions?
EB Management Company, the Plan’s Administration Office, can be reached at: (206) 282-3205 or (800) 524-4852, Ext. 417.