Local 825's Profit Sharing Fund

The Local 825 Profit Sharing Plan is a defined contribution plan.

Based on a collective bargaining agreement, your employer makes regular contributions, which are recorded to your individual account in the Fund. Your account is credited with contributions and interest earnings and charged with investment losses and expenses. When you retire, terminate your employment or die, the benefit payable is equal to your account balance at that time.

Your Profit Sharing account is managed by Empower Retirement, LLC.

Getting Started Documents Distributions from your account Borrowing from your Fund account Forms Updates Links FAQs

Getting Started

The Profit Sharing Fund is designed to provide participants with added financial security during their retirement years.

Administrative and investment services are provided by Empower Retirement. Following receipt of notice of your enrollment in the Plan from the Funds Office, Empower will send you a letter regarding registration of your account.

Choosing your investments

As a Plan participant, you can choose from among the wide variety of investment funds offered under the Plan. You can change the way future contributions are invested or transfer assets from one investment to another. These investment options may be reviewed at Empower Retirement.

If you do not make an investment selection, your contributions and account balance will be invested in the Plan's Default Fund, an age-appropriate Day One Fund. The Default Investment Fund is an equity-based investment that is subject to market ups and downs. You may direct that your contributions be transferred out of the Default Fund into another investment option offered under the Plan.

You are responsible for your investment choices

It is important to review information about each investment option under the Plan.
Spreading your money across a variety of investments, called diversification, is an important way to reduce risk in your retirement account. You can change the way future contributions are invested or transfer assets from one investment to another.

Statement summaries

On a quarterly basis you will receive a statement summarizing all activity in your account (new contributions, loans, earnings, and losses). Review your statements regularly, when you receive them.

Documents

Distributions from your account

You can receive a distribution from your Profit Sharing Fund account upon retirement, termination, disability or death. Termination occurs six consecutive months from your last day of work for an employer with a collective bargaining agreement with Local 825 requiring Profit Sharing contributions.

You or your beneficiaries may select from various payment options, including rollover, single-sum payment, installment payments, or regular annuity payments.

At time of enrollment in the Plan, you will be provided a beneficiary designation form to designate a beneficiary in the event of your death before you have started to receive payment of your account or before you have received a full distribution of your account. If you are married, your beneficiary designation is subject to spousal rights as required by law.

Borrowing from your Fund account

The Plan allows you to take a loan from your Profit Sharing Fund account for the following reasons and subject to limits on the amount you can borrow:

Medical expenses not reimbursed by insurance for you, your spouse or your child
Funeral expenses for spouse, child or parent
Costs directly related to purchase of primary residence
Post-secondary educational expenses for you, your spouse, or your children
Payments to prevent foreclosure or eviction
Financial hardship approved by the Plan on a non-discriminatory basis

Loans must be repaid. If you are not able to repay the loan, the outstanding balance must be reported to the IRS as regular income. No further loans are permitted until the balance and all accrued interest of a defaulted loan have been repaid.

Forms

Updates

Guaranteed Long-Term Fund

For participants invested in this Fund, the interest crediting rate is 3.05 effective Jul. 1, 2023.

Update Your Beneficiary Designation

It is critically important that you periodically review whether you wish to change your beneficiary designation, for example in the case of divorce or death.

Subject to spousal rights, your death benefits are payable to the beneficiary on record, regardless of divorce or what may be in your will. You can make life easier for those who survive you by keeping your beneficiary designation up to date.

Links

FAQs

Frequently Asked Questions

What type of plan is the Profit Sharing Plan?

It is a qualified defined contribution plan. A qualified plan is one that meets specific requirements of the Internal Revenue Code. Qualified plans are afforded tax advantages, for example, participants pay no tax until they retire and begin receiving benefits. Also, qualified plans contain an anti-assignment provision, which prevents benefits from being reached by creditors. In a defined contribution plan, each participant has an account; at retirement, the benefit payable is equal to his or her account.

Can I contribute toward my Profit Sharing account?

Where can I obtain detailed information on my account, transfer assets from one investment to another, change the way my future contributions are invested, obtain forms to request a loan or distribution, or obtain general information about the Plan?

How can I take money out of the Plan?

How do I obtain a loan from my account?

Contact Empower Retirement at 833-569-2433 for a loan application. Empower can e-mail, fax or mail a loan application to you. Your completed application with original signature(s), along with supporting documentation, should be mailed to the Profit Sharing Fund at 65 Springfield Avenue, Second Floor, Springfield, NJ 07081, or faxed to 973-774-1305, or e-mailed to pension@825funds.org. The Profit Sharing Fund will review your application and, if approved, authorize Empower to process a loan.

What types of loans are available?

To obtain approval for a loan, you must demonstrate that you have an "immediate and heavy financial need" due to one of the following reasons:

Illness, accident or injury to yourself or family member not reimbursed by insurance
Funeral expenses for your spouse, child or parent not covered by life insurance
Costs directly related to purchase of your primary residence (not including mortgage payments)
Tuition payments, room and board expense, and related educational fees for you, your spouse, your children or any of your dependents for post-secondary education or a school or institution for physically or mentally handicapped children
Payments needed to prevent eviction from your principal residence or to prevent foreclosure
Any other financial hardship approved by the Trustees on a nondiscriminatory basis.

Is there a limit on the amount I may borrow?

How do I obtain a distribution from the Plan?

When am I eligible to receive a distribution?