Common Questions About Your Secure Retirement

There are many common questions caregivers have about the plan. Click each question to learn more.

OTHER QUESTIONS?

Call 1-866-770-1917 and select option 3 (8 a.m. to 5 p.m. Pacific time, Monday-Friday).

These FAQs highlight key terms of the plan. Details are in the plan documents. In the event of a conflict between these highlights and the plan documents, the plan documents control.

Q. How do I participate in the secure retirement plan?

A. Check www.seiu775.org/findyourcontract/ to see if your employer is included.

If your first day as a caregiver is on or after July 1, 2019, you will become a participant in the plan as of the first day of the calendar month on or following the six month anniversary of your start date. In order to qualify, you must be “active” in the Plan on the six month anniversary of your start date.

To be considered “active” you must have at least 1 qualifying hour worked on or after your six month anniversary and prior to a gap of 12 months since your last qualifying hour worked. Once we receive the information that qualifies you as a participant (typically in the month following the month in which the work occurs), you will receive a welcome letter and a copy of the Summary Plan Document. You will also gain online access to your account and will be able to specify your beneficiary at that time.

Quick Guide to Participation Date:

First Month Worked Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20
Earliest Partici-pation Date

(1st of every month)

Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21

1 You must report hour between the month of your participation date and before the first anniversary of your last qualifying hour.

Quick Guide to Service-Spanning Rule:

Last Month Worked Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20
Must Resume Service by 2 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21

2 If you haven’t yet become a participant, you will be treated as active for a period of up to 12 months following a quit, discharge or retirement provided you return to service.

Here are some common examples of how you might become a participant:

Continuous caregiving – you became a caregiver on July 5 and continue to provide care every month.

Once your January hours are reported (typically in February), you would become a participant in the plan as of Jan. 1.

Temporary break in caregiving – you became a caregiver on July 5 and provided care from July through December.  In January, your client entered the hospital, and you resumed caregiving in February.

Once your February hours are reported (typically in March) due to the service spanning rule, you would become a vested participant in the plan as of Jan. 1.

Longer break in caregiving – you became a caregiver on July 5 and provided care from July through September 30.  You then left the profession but returned to caregiving in September of the following year.

Once your September hours are reported (typically in October), you would become a vested participant in the plan as of Jan. 1 due to the service spanning rule.

Contributions are made to your account once you become a participant.

If you leave caregiving before completing a 6-month period of participation service and do not return on or before the first anniversary of your departure, you do not become a participant and no contributions will be made to an Account on your behalf.

Plan terms are detailed in the plan documents. The Summary Plan Description describes key features of the plan. In the event of a conflict between these highlights or the summary plan description, and the plan documents, the plan documents control.

Q. What obligation do I have as a participant in the Secure Retirement Plan?

A. You must keep our administrative office advised of any change of address so that we are able to contact you and you continue receiving your annual statement and summary annual report (SAR) link to SAR. You should also designate a beneficiary to receive your funds in the event you pass away before your entire account is paid out.  You may update your address and beneficiary information by visiting our secure portal at www.myplanbg.org or calling 1-866-770-1917 and select option 3 (M-F 8:00 a.m. to 5:00 p.m.).

Vesting means you have a non-forfeitable right to the amounts credited to your account. In other words, once you are vested, these funds “belong” to you.

Q. How do I become vested?

  1. If you became a participant before July 1, 2019, you become vested one of two ways:
  • You completed three years of vesting service. You earn a year of vesting service in each plan year prior to February 28, 2020 in which you worked at least 300 hours.
  • You worked at least 1 additional qualifying hour on or after July 1, 2019.

Note: If you incur a permanent break in service before you work a qualifying hour on or after July 1, 2019, you will be immediately vested in future contributions, but you will not be vested in contributions made before the permanent break. If you don’t meet the hours requirement for five plan years in a row, you will experience a “permanent break in service”. At that point, your accumulated balance will be forfeited to the plan.)  If you need help finding a new client, you may want to check out Carina.

2. If you became a participant on after July 1, 2019, you are immediately vested in contributions made to your account.

Q. What type of hours count for the 300-hours vesting requirement?

A. In addition to hours providing service to clients, training hours and paid time off (PTO) hours count toward satisfying the 300 hours requirement for a year of vesting service. This is true even though contributions are not made to the retirement plan for training hours and paid time off.

This means you may have more hours for vesting than for contributions purposes. Your Collective Bargaining Agreement determines the hours for which your employer must make a contribution to the plan.

Q. What happens if I don’t have enough hours to vest?

A. If you didn’t meet the hours requirement before July 1, 2019, and you don’t return to plan service for 5 plan years in a row, you will experience a “permanent break in service.” At that point, your accumulated balance will be forfeited to the plan. However, if you return to plan service after July 1, 2019 before you experience a permanent break in service, you will be immediately vested in all past and future contributions to your account.

Q. What obligation do I have as a vested participant in the Secure Retirement Plan?

A. You need to keep our administrative office advised of any change of address so that we are able to contact you and you continue receiving your annual statement and summary annual report. You should also designate a beneficiary to receive your benefit in the event you pass away before your entire benefit is paid out.  You may update your address and beneficiary information by visiting our secure portal at www.myplanbg.org or calling 1-866-770-1917 and select option 3 (M-F 8:00 a.m. to 5:00 p.m.).

Q. What if I leave home care work before I reach normal retirement age?

A. If you are vested, your funds are paid to you even if you leave before retirement. If your account balance is $2,400 or less, your funds will be paid after you haven’t worked for 24 consecutive calendar months. If your account balance is more than $2,400, your balance will be paid when you reach normal retirement age.

Q. What happens if I pass away before receiving my entire retirement benefit?

A. If you are vested, your funds will be paid out to your beneficiaries either as a lump sum or under the payment plan previously established for you. You should also designate a beneficiary to receive your benefit in the event you pass away before your entire benefit is paid out. You may update your address and beneficiary information by visiting our secure portal at www.myplanbg.org or calling 1-866-770-1917 and select option 3 (M-F 8:00 a.m. to 5:00 p.m.).

Q. I never named any beneficiaries, who will receive my funds if I pass away?

A. If you are vested but have not named specific beneficiaries, the plan will default to paying out your balance as follows:

  • First to your surviving spouse.
  • If there is no spouse, then to your living children (natural, adopted and step)(in equal shares).
  • If there are no children, then to your living parents (in equal shares).
  • If there are no living parents, then to your living siblings (in equal shares).

You may designate specific beneficiaries by going to www.myplanbg.org.

Q. What obligation do I have as a vested participant in the Secure Retirement Plan?

A. You must keep our administrative office advised of any change of address so that it is able to contact you and so that you continue to receive your annual statement and summary annual report.  You may update your address and beneficiary information by visiting our secure portal at www.myplanbg.org or calling 1-866-770-1917 and select option 3 (M-F 8:00 a.m. to 5:00 p.m.).

Q. How can I start receiving my retirement funds?

A. Generally, you must reach the plan’s normal retirement age (65 years or older) to access your retirement benefit.

Q. If I am at or near retirement age (65), what does the retirement plan mean for me?

A. This will depend on a variety of factors: how many hours you work, future collective bargaining agreement contribution levels, when you actually choose to retire (assuming you meet plan requirements), investment performance over time, and the terms of the Plan.

Q. How do I receive retirement payments from the retirement plan?

A. You will need to meet the following criteria to receive a retirement benefit: 1. You must be age 65 or older, and 2. You must be fully vested in the plan.

Q. How is the benefit paid to me?

A. If your account is more than $2,400, it will be paid in monthly installments. If your account is $2,400 or less, it will be paid in a single lump sum.

Q. If I am nearing retirement age, what can I do to improve my levels of retirement income?

A. You might be able to increase the number of hours/years you work to increase the amount of money contributed.

You may also want to check www.ssa.gov to understand the best strategy for your situation to maximize your Social Security benefit.

Q. Am I required to take required minimum distributions at age 70 1⁄2 if I am still working?

A. No. You can delay beginning payments until as late as April 1 of the calendar year after the year in which you stop working.

Under federal tax law, you may be subject to a 50% excise tax if you don’t begin payment of your benefit by this date.

Q. How often does my account balance change?

  1. If you are working as a caregiver, your employer will submit contributions each month based on the qualifying hours you worked during that time period.
  2. Each quarter the plan updates the value of your account as follows:
  • Your account balance as of the prior quarter.
  • Plus contributions received for hours reported that quarter.
  • Plus your pro-rata share of any investment gains or interest the plan earned.
  • Less your pro-rata share of any investment losses the plan experienced.
  • Less your pro-rata share of any expenses for that quarter.

Q. What do you mean by pro-rata?

A. Pro-rata means that you will receive a proportionate share of overall gains, losses or expenses based on the size of your account relative to the entire plan. For example, if your account balance equaled one percent of the total balance of the plan, you would be entitled to one percent of the gains and would be assessed one percent of the expenses.

Expenses

Q. Who pays for the plan’s administrative costs expenses?

A. The reasonable administrative costs of the plan are shared by all participants on a pro-rata basis.

Q. What types of things are included in the expenses?

A. The largest expense for this type of plan relates to the administration of participant accounts. A breakdown of the expenses for the plan by category can be found here:

Pie Chart

Investments

 Q. Who decides how the contributions the plan receives are invested?

A. The investments for the plan are directed by the plan Trustees. The Trustees have retained RBC (Royal Bank of Canada Brokerage) as the 3(21) investment fiduciary for the Secure Retirement Trust.

  1. RBC acts as the 3(21) investment fiduciary (a paid professional who provide investment recommendations to the plan sponsor/trustee).
  2. The Trustee retains ultimate decision-making authority for the investments and may accept or reject the recommendations.
  3. Both the Trustees and RBC share the fiduciary responsibility.

Q. What specific investments did the Trustees and RBC select?

A. As of February 28, 2018 (the latest plan year end), assets were invested using the following guidelines.

Asset Class, Min/Max Weight, Asset Class Target Weight

Q. Am I still able to contribute to an Individual Retirement Account (IRA) or another employer retirement plan while I participate in this retirement plan?

A. You should consult a tax advisor regarding your unique situation, but, in general, participating in this plan will not prevent you from making those types of contributions subject to general IRS provisions.

Q. Can I make payroll deductions to increase my contributions into the plan?

A. At this time the Secure Retirement Plan can only accept employer contributions.