How Your Individual Account Plan Works

Contributions to the Individual Account Plan

Contributions are made to the Plan on your behalf under the terms of the collective bargaining agreement between Local 26 and signatory employers or pursuant to a written agreement established between the Trustees and certain other employers. The amount of the contribution is specified in the collective bargaining agreement or other written agreement applicable to you. These contribution amounts can change from time to time.

As an employee, you are not permitted to make contributions to the Plan. Contributions may also be made on your behalf through reciprocity payments from other pension plans that participate in the Electrical Industry Pension Reciprocal Agreement. In the event you work in a jurisdiction outside Local 26 and have contributions made on your behalf to a pension plan participating in the Electrical Industry Pension Reciprocal Agreement, that pension plan may make reciprocal payments to this Plan. To be eligible, you must enter into a Reciprocal Payment Allocation Election Agreement. You may obtain a copy of this agreement from Local 26 or the Fund Office. If you have any questions regarding this opportunity for an election, please contact the Fund Office or Local 26.

While the Plan does not accept employee contributions, the Plan does accept rollovers of eligible rollover distributions from any tax-qualified plans or IRAs sponsored by your former employers.

How Money In Your Account Can Grow

All contributions made to the Plan on your behalf are placed in a trust fund established to hold the funds for the benefit of all Participants. The Trustees of the Plan will establish and maintain an Individual Account for each Participant. Your Individual Account will be used to track your share in the total trust fund.

The money in your Individual Account is invested according to the investment options you choose. Depending on how well your investments perform, the money in your Individual Account can grow, tax-deferred, until you withdraw your balance (called your Accumulated Share) when you stop working.


What is a collective bargaining agreement?

A collective bargaining agreement is a written agreement between the union and employers that requires employers to make contributions to the Individual Account Plan on behalf of their employees. You can review a copy of a collective bargaining agreement at the Fund Office or you may make a written request to the Fund Office for a copy.

Life Events

For information about what happens to your Individual Account Plan benefit when you experience a life event such as marriage, divorce, retirement or death, refer to the chapter called "Life Events" beginning here.