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About the plan

Get to know the details and benefits of your plan, and explore ways to make it work harder for you.

About your account

An account is automatically established in your name when you become a participant in the plan.

How your account is funded

  • With the National Electrical 401(k) Plan, you can save and invest in a way that provides benefits for both your today and many tomorrows. The 401(k) plan is voluntary and is in addition to any other retirement benefits you may have through the IBEW and NECA, including the National Electrical Benefit Fund (NEBF) or the National Electrical Annuity Plan (NEAP).
  • You are immediately 100% vested in your account balance.

Plan highlights

This information is an overview of the plan's features. For more detailed information about your plan, review the plan’s Summary Plan Description.PDF File opens in a new window

Enrollment

If eligible, you may enroll at any time. Click here to enroll in the NEFPopens in new window or contact BeneSys at 888-292-6406. 

Your Contributions

You decide how much to contribute to your 401(k) account. Defer as little as 1% or as much as the annual IRS maximum ($19,500 in 2020).

  • If you will be at least 50 or older in 2020, you can make up to an additional $6,500 in catch-up contributions.
  • Contributions can be changed once per quarter, unless you are changing it to 0%; in which case you can change it at any time. However, if you change your contribution rate to 0%, you are not permitted to change it again until the following quarter.
  • To change your contribution rate to the Plan, contact BeneSys at 888-292-6406, or by going to www.ourbenefitoffice.com/nefp/benefits.opens in new window
  • Remember, your contributions are pre-tax, so you won’t pay current federal income taxes on them. Your money will continue to grow tax-deferred until you withdraw.
  • You may roll over money to your account, in any amount, from another similar retirement plan. Refer to the SPD for further information.

What is Vesting?

"Vesting" refers to your ownership of the money in your account. You are always 100% vested in your own contributions.

Your Investments

The NEFP provides a diverse investment lineup so that you can invest in the way that best meets your needs, with the flexibility to tailor your investment strategy as needed. To view a list of funds available through your plan, go to the investments page on this site.

Keep in mind that application of asset allocation and diversification concepts does not assure a profit or protect against loss in a declining market. You can lose money by investing in securities.

GoalMaker

Your retirement plan offers GoalMaker®, an optional easy-to-use asset allocation program that will invest your contributions in a portfolio that matches your investor style and years to retirement with a desire to protect your income in retirement. By enrolling in GoalMaker, you direct Prudential to immediately reinvest your future contributions and existing account balance (if applicable) to match this investment allocation. Click here for more information on GoalMaker.

The GoalMaker asset allocation models available in your plan have been determined by Marco Consulting, an investment advisor, investment committee or other fiduciary retained by your plan sponsor.

Marco Consulting is not affiliated with Prudential Financial or any of its companies or businesses.

Guaranteed Income for Life

IncomeFlex Target® is an investment option available through NEFP that will guarantee you a lifetime stream of income through retirement and protect you from market downturns.1

When you invest through IncomeFlex Target, your contributions will invest in a professionally created and managed fund. Just like any other investment, you can make changes to your contribution rate or fund selections at any time. Plus, you can even elect to provide guaranteed income for life for your spouse,2 if you choose.

In exchange for the fund’s added protection and benefits, in addition to the standard investment management fee, there is a 1% fee applied to invested dollars. For more information about this investment option, visit www.nefp.org or call 877-PRU-2100 (877-778-2100). Click here for more information on IncomeFlex.

Guarantees are based on the claims-paying ability of the insurance company and are subject to certain limitations, terms, and conditions.

Accessing Your Money

You may be able to access money in your retirement plan account through an in-service withdrawal.

In-service withdrawals

While employed, you may make in-service withdrawals within plan restrictions.

Withdrawals

The taxable portion of a withdrawal is taxed as ordinary income and may be subject to an additional early distribution penalty tax if you receive the withdrawal before age 59½. The total amount of the withdrawal may not be more than the amount required to meet your immediate financial need. However, you may have the option to gross-up the amount you receive to cover taxes. You may want to consult a tax professional before taking a withdrawal from the plan.

Important note!

Amounts withdrawn before age 59½ may be subject to a 10% federal income tax penalty, applicable taxes and plan restrictions. Withdrawals are generally taxed at ordinary income tax rates.

Retiring or Leaving the Plan

It's important to learn about all options regarding your account balance before you retire or separate from service. You will need to make a decision about what to do with your vested account balance when one of the following events occurs:

  • You retire from International Brotherhood of Electrical Workers at the normal retirement age of 59.
  • You become permanently disabled.
  • You die. Your beneficiary is entitled to your account balance when you die; they are responsible for all federal income tax imposed. Distribution upon death may also be subject to federal and state inheritance and estate taxes.
  • Your separation from work.

It’s important to note that distributions before 59½ may be subject to an additional early withdrawal penalty tax.

When any of the events listed above occur, you or your beneficiary will have several distribution options. It is important to understand each of the distribution options listed in your plan’s SPD before you make your decision. For assistance, please contact a Prudential representative at 1-866-963-6323.

Information regarding eligibility for distributions, once you leave covered employment, can be found in your SPD.

Your vested account balance

Impact to your money

 

$1,000 or less

Paid in lump sum, regardless of prior elections*

Greater than $1,000

Your money will continue to grow tax-deferred in your account.


*Standard 20% withheld.
Directly rolling it over

You can choose to move or roll over your money into another qualified retirement plan, a Traditional Individual Retirement Account (IRA), or Roth IRA. This allows your money to continue growing tax-deferred. This is based on our understanding of the tax law. You may wish to discuss this matter with your tax advisor. Because each situation is unique, neither we nor our representatives can provide tax or legal advice.

Having account balance paid in the form of an annuity

An annuity pays you a regular income, usually monthly. This option spreads the tax burden over a period of years.

Having account balance paid in installments

You can withdraw your account balance in a series of payments, in an amount over a period of time determined by the employer.

Lump sum

You may choose to take a full or partial lump sum distribution. A 20% federal income tax may be applied.

Benefit payment contingency

The payment of benefits is contingent upon the filing of a written application according to the procedures established by the Board of Trustees. If you have a claim for benefits or any questions about your account or rights, follow the instructions contained in your fund documents.

Learn moreGetting the most out of your retirement plan

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National Electrical 401(k) Plan Resources & Quick Actions

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