401(k) Open Enrollment
Members who are eligible to contribute to the Mechanics’ Local 701 Defined Contribution 401(k) plan have received, or should be receiving shortly, a letter informing them that it is once again time for open enrollment. All eligible members are encouraged to participate in the 401(k) program as it allows our members the ability to save for their retirement on a tax deferred basis, this program makes it possible for our members to be better prepared for retirement and add another retirement tool in addition to their pension(s).
Salary deferral agreements are due back to the funds office no later than April 29, 2016. Members failing to return the salary deferral agreement in time will automatically enroll at a deferral rate of 3%unless either:
a) You previously enrolled in the plan during another open enrollment either by returning the salary deferral card or automatically enrolling, or;
b) Previously opted out of the 401(k) program during another open enrollment period, in which case you will remain opted out. (Unless you changed employers, in which case you should opt out again.)
Members who are covered under the Standard Automotive Agreement should carefully consider enrolling in the 401(k). As part of the most previous agreement, if the pension fund reaches a funding level that would result in reduced employer contribution to keep the fund sufficiently funded, the resulting savings will be split between the employer and the employee. The subsequent employee portion will be deposited into the employee’s Local 701 401(k) plan.
If you have any questions about the 401(k) Plan, Please contact the Funds Office.