The Way The 401(k) Plan Works!
The UAW Local 2179 Pension Plan is a 401K profit sharing plan. There are two parts of this Plan
- Your employer has agreed to make annual contributions to the Plan on your behalf
- You have the option of making pre-tax contributions (tax deferrals) to the plan.
Contributions made by the employer will be credited to the individual accounts of the employees who are eligible participant in the plan for the year the contribution is made. Any salary deferrals you elect to make to the plan will also be allocated to your account.
If you are now a participant, of later become a participant, an account will be set up in your name.
The amounts contributed to your individual account will be invested and any gain or loss from plan investments is credited to, or charged against your individual account. Forfeitures are used to offset the Plan’s administrative expenses. Any expenses in excess or forfeitures are subtracted from participants’ accounts on a prorated basis. After you terminate your service with the employer, the vested (or non-forfeitable) percentage of the account credited to you will be distributed. (The time of distribution of benefits may occur a number of years after termination of employment.
- If you are a participant or become a participant, the benefits you will ultimately receive under the plan will depend primarily upon.
- The amount of employer contributions credited to your account in the plan.
- The amount of compensation you elect to defer and have contributed to the planThe return of investments under the plan.
- The versted (or non-forfeitable) percentage of your account when you terminate.
You may have heard or read that the Pension Benefits Guaranty Corporation guarantees certain benefits under pension plans; however, a 401K profit sharing plan is one of the types of plans whose benefits are not permitted to be guaranteed by the Pension Benefits Guaranty Corporation.