Employee Contributions Elective Deferrals
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UMWA Health and Retirement Funds

Employee Contributions Elective Deferrals

Any active miner who is employed in a classified job for a participating signatory employer is eligible to join the CDSP on his first day of employment.  However, no individuals who are directly connected with the ownership, operation, or management of an employer may participate. An individual is directly involved with ownership of an employer if he has an ownership interest of 5% or more in the employer.

Eligible employees can call the Funds’ toll free number at 1-800-291-1425, option 5, or Prudential’s toll free number at 1-877-778-2100 and request an enrollment or re-enrollment package.  An eligible employee may begin participation once he executes and files a written application authorizing deductions from his wages. Prudential Retirement will notify the employer of the employee’s authorization to begin deductions.

 

Elective Deferrals Contributions
CDSP participants may contribute through payroll deductions and/or a rollover of assets from a qualified plan or Individual Retirement Account (IRA).  Rollovers must be done in a timely manner after joining the CDSP.

Each participant may authorize salary deferrals under the CDSP in an amount equal to any percentage (in multiples of 1%) of his compensation up to twenty five percent (25%) as he may choose.  Contributions for any calendar year, however, may not exceed an amount set by law, and they may also be limited by certain federal limits related to non-discrimination testing.  ** 2013 Federal 401(k) Elective Deferral limit is $17,500 **

In addition, if at the end of any calendar year an employee has not exhausted the Personal or Sick Leave Days for which he is eligible, he may, within ten (10) working days, elect to have the pay in lieu of such leave at his regular classified straight time rate placed in the CDSP, subject to the federal limits.

Catch-Up Contributions
Plan participants may elect to do Catch-Up Contributions, which are salary deferrals that employees age fifty (50) and older may make to their CDSP accounts and which exceed an otherwise statutory or Plan deferral limit.  To be eligible, the employee must reach age fifty (50) by the end of the applicable Plan year.  For example, for the year 2013, an eligible employee who will have turned age 50 by December 31, 2013 may contribute up to $5,500 more than the lesser of the statutory deferral limit of $17,500 (2013), the CDSP deferral limit of 25% of compensation or the deferral limit established through non-discrimination testing. The participant’s total deferral (including Catch-Up Contributions) cannot exceed 100% of compensation.  Catch-Up Contributions were adopted beginning with the 2002 Wage Agreements and CDSP plan documents.  The Catch-up Contribution limit may increase each year, as determined by law.  ** 2013 Federal limits is $5,500 **

** 2013 Elective Deferrals plus Catch-Up contributions total is $23,000 *

NOTE:  In order to participate in the CDSP, your employer must be signatory to the National Bituminous Coal Wage Agreement or some other wage agreement entered into between the UMWA and your employer that permits 401(k) contributions to the Plan.