Annuity Fund

QUESTIONS AND ANSWERS

1. Am I eligible for coverage under this Plan?

There are two period of eligibility for coverage under the Plan. You are eligible to participate in the period for which you meet all the criteria. If you meet the criteria for both periods, you are eligible for coverage in both periods.

1. To be eligible to participate in the Plan under the prior Collective Bargaining Agreement (“Prior Agreement”), you must have met all of the following criteria:

– You must have been employed on June 1, 1999 in a “covered title.” A covered title is a title represented by the Union for which a contribution was required to be made to the Fund under the terms of the Collective Bargaining Agreement.

– You must have been in active pay status on June 1, 1999.

– You must have been in active pay status either in a covered title or a “non-covered title” during all or part of the period June 1, 1996 through May 31, 1997. A non-covered title is a title covered by an agreement where the certified bargaining agent has waived the provisions of an Annuity fund and elected instead to utilize the contributions to provide alternative benefits in lieu of the Annuity Fund.

If you were not employed on June 1, 1999 in a covered title, you are not eligible to receive any benefits under the provisions of the Prior Agreement.

1. To be eligible to participate in the Plan under the Collective Bargaining Agreement entered into for the period April 1, 2000 to June 30, 2002, you must have been employed on or after June 30, 2002 in a “covered title” or be in active pay status in a “non-covered title”;

1. However, to be eligible to participate in the Plan under the 2005-2008 agreement, you must be actively employed on or after

March 2, 2008 in a “covered title”.

2. What happens to my Individual Account if I should die?

As a member of the Annuity Fund, you were provided with an official “Designation of Beneficiary for Pre-Retirement Lump Sum Death Benefit” form on which you designate the person who is to receive your account value in case of death.  Upon your death, this designated beneficiary is notified automatically that he or she is the designated beneficiary and is furnished the necessary forms to apply for the deceased Member’s Individual Account balance.

NOTE:

It is recommended that you periodically check your beneficiary forms on file at the Fund Office.  Always make certain that you have kept this beneficiary form up to date.  Every Member should make certain at frequent intervals that he or she has the proper beneficiary designation on file at the Fund Office.

3. Who makes contributions to this Fund?

In accordance with the provisions of the Prior Agreement, the City of New York made a one-time contribution, based upon the number of days worked.

Under the Current Agreement, the City of New York will make a recurring contribution, based on the number of days worked, to a maximum of $724 per year. Contributions will be paid at the rate of $2.78 for each day worked.

4. May a Member make voluntary contributions to the Fund?

No. You are not required nor are you allowed to make contributions to the Fund.

5. How is each individual Member’s Account maintained?

The City of New York’s contribution under the Prior Agreement was credited to the account of each Member then eligible to participate.  Under the terms of the Current Agreement, the City of New York will credit an annual contribution to the account of each Member eligible to participate. This recurring contribution will be credited to each new Member’s account and added to the existing account established for Members under the Prior Agreement. The monies so contributed are invested and every three months a valuation made of investment earnings.  The investment earnings, or losses, and pro-rated administrative expenses are then allocated to each Member’s account. Twice each year the Member will receive a summary statement showing the value of his or her account for the six-month periods ending June 30th and December 31st.  The Plan quarterly valuation dates are March 31, June 30, September 30, and December 31.

6. May a Member withdraw all or part of his/her account at any time while an active member?

No. The Member may withdraw from his/her account only after termination of employment in a covered title represented by Social Service Employees Union Local 371 as its bargaining agent.

7. What are a Member’s benefit rights?

A Member is 100% vested in his/her account at all times.

8. When are payments made?

Benefits will be paid as soon as administratively feasible following your retirement, death, or termination of employment.  However, you or your beneficiary must file an application to receive your benefits.

9. How will benefits be paid?

All benefits will be paid in a lump sum.

10. When will I be terminated from this Plan other than for the reason of my death?

You will be terminated from this Plan upon your retirement, resignation or dismissal.

11. How much will the benefit be when a Member terminates?

You will receive 100% of the total value of your account as of the most recent valuation date preceding the distribution of your benefits. The Member will have a fairly good idea as to what the amount will be by referring to the semi-annual statements received by such Member.  The other factors to be considered are investment earnings or losses, pro-rated administrative expenses, as well as contributions made to the Fund by the City of New York, if any, from the date of the last statement to the date of withdrawal.

12. How do you apply for benefits?

You are required to file the prescribed withdrawal application when you wish to withdraw your account.  The Plan Administrator will furnish you with the necessary forms, income tax withholding requirements and instructions.

13. Can the plan be terminated?

The Plan is operated for the exclusive benefit of its Members. Should the Plan ever be amended or terminated, Members will be advised accordingly.  The Trustees may amend the Plan at any time, subject to the terms of the Trust Document, Plan Rules and Regulations and collective bargaining agreement.

14. What is the plan’s benefit claim procedure?

The Trustees will endeavor to administer the Plan fairly and consistently and to pay all benefits to which Members or Beneficiaries are properly entitled.  However, failure to execute any required forms or to furnish information requested by the Trustees within a reasonable period of time may result in delayed benefit payments.

All claims for unpaid benefits should be made in writing to the Trustees.  If a claim is wholly or partially denied, you will receive a written notice from the Trustees within 60 days indicating the reason for the denial, the plan provisions pertinent to the denial, and a request for whatever additional information may be necessary to consider the claim further.

After receipt of a notice denying a claim for benefits, you or your authorized representative may review pertinent documents, submit comments on issues involved and request in writing that the Trustees review its action. Your written request for review must be received by the Trustees no later than 180 days following your receipt of the denial of your claim for benefits.  The Trustees will re-examine your claim and issue a final decision within 60 days after the receipt of your appeal, unless special circumstances require a reasonable extension of the 60-day period.

15. What is a Qualified Domestic Relations Order (QDRO)?

A Qualified Domestic Relations Order (QDRO) is a judgment, decree or order that:

1. sets a required level of child support, alimony payment or marital property rights to the dependent of a plan participant to be financed through the participant’s benefit,

1. is made pursuant to a state domestic relations law, including a community property law, and

1. meets certain other legal and administrative requirements.

The Plan Administrator will promptly notify you and any other alternate payee of the receipt of an order and the fact that the order is being examined to determine whether it qualifies as a QDRO. Then, within a reasonable period of time, the Plan Administrator will notify you and any alternate payee of the determination. All determinations are subject to claim review.

16. What are the tax effects of my benefit?

The following is only a general description of the income tax implications of benefit distributions under this plan.  The laws are complex and subject to frequent change.

You should not rely on this information and should consult the Internal Revenue Service or your tax advisor when considering a distribution under the plan to determine the most appropriate tax planning under your circumstances.

Your contributions and all investment earnings on the accumulating funds are currently income tax free while held on your behalf.

Income taxes will be payable when these funds are actually distributed to you in the future.  Such taxes may be less if distribution is deferred until your retirement when your total taxable income is generally reduced.

Required Minimum Payments

Beginning when you reach age 70 ½ or retire, whichever is later, a certain portion of your payments cannot be rolled over because it is a “required minimum payment” that must be paid to you.

Rollovers

The Internal Revenue Code permits you to avoid current taxation on any portion of the taxable amount of an eligible distribution by rolling over that portion into another qualified employer retirement plan that accepts rollover contributions or into a traditional individual retirement arrangement (IRA) but not a ROTH IRA, a SIMPLE IRA, or a Coverdell Education Savings Account.

If your account balance is $200 or more and you make a rollover election and provide the required information, the Trustees will directly roll over all or a portion of your account balance either to:

(1) the trustee of a traditional Individual Retirement Account (“IRA”), or

(2) the trustee of another employer’s qualified plan that accepts such rollovers, and,

if applicable, distribute the remaining amount directly to you.

Amounts rolled over directly to either of the trustees mentioned in (1) or (2) above will not be subject to federal income tax in the year of distribution nor to federal income tax withholding.  If you choose to receive a portion of your account in cash while requesting the Trustees to directly roll over the remainder, the amount you elect to have rolled over must equal not less than $500.

However, please note that federal law requires that the Trustees withhold for federal income tax 20% of the amount of a distribution which is actually received by you.  In addition, the amount which is not rolled over into an IRA or another qualified plan is subject to federal income tax in the year in which the distribution is received and, if you are subject to the 10% early distribution penalty (described below), it will apply to the amount of the distribution that you actually receive.

If you elect to have all or a portion of your account distributed to you in cash, you may within 60 days of receiving that distribution roll over into a traditional IRA or another employer’s qualified plan that accepts such rollovers:

(1) all or a portion of the amount received and, thus avoid federal income tax on the portion rolled over in the year in which the distribution was received and, if otherwise applicable, also avoid the 10% early distribution penalty on the amount rolled over; or

(2) all of the amount received plus an additional amount from your own funds, up to, but not exceeding, the 20% that was withheld for federal income tax and, thus, avoid federal income tax (but not the withholding requirement) on the amount rolled over in the year in which the distribution was received and, if otherwise applicable, also avoid the 10% early distribution penalty on the amount that was rolled over.

There are specific and technical qualifications and requirements set forth in the Internal Revenue Code that must be satisfied in order for your plan distribution to be eligible to be rolled over.  If interested, you may obtain additional information on the establishment and maintenance of an IRA from the nearest Internal Revenue Service District Director’s office.

Transitional Rule

If you had attained age 60 by January 1, 1986, if your distribution qualifies under Section 402(e) of the Internal Revenue Code as a lump sum distribution, and if no part of your distribution is rolled over, you may be able to elect to have your distribution taxed under the pre-1986 law’s 10-year averaging rules at 1986 tax rates.

10-year averaging may not be elected unless you had participated in the plan making this distribution for any part of at least five years.

Early Distribution Penalty

Distributions from the plan prior to age 59-1/2 are subject to a 10% income tax to the extent the distribution is includable income (amounts in excess of after-tax contributions which are not rolled over to an IRA or other qualified plan).

Distributions are exempt from the tax if paid on account of (a) death, (b) disability, or (c) termination of employment after age 55.  Exemptions are also permitted for annuity distributions, payments to alternate payees under qualified domestic relations orders and amounts not in excess of certain deductible medical expenses.

The plan must be operated for the exclusive benefit of its members.  If the plan and trust are terminated, benefits will be payable under the terms of the plan and will include a lump sum distribution option to all members.  Should the plan ever be amended or terminated, members will be advised accordingly.

Basic Documents

The website highlights the plan and answers many of the questions members are likely to ask.  Although every effort has been made to describe the essential provisions of the Plan as accurately as possible, the requirements for participation and the benefits payable will be determined strictly in accordance with the Agreement and Declaration of Trust and Plan Rules and Regulations, which are available at the Fund Office.

Trustees

The Board of Trustees is composed of seven (7) persons appointed by the Union.

The Trustees may act as agents to receive service of legal process

Plan Administration

The Trustees have appointed Denise L. Barr as Plan Administrator and Iris B. Clark as Associate Administrator.