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December 27, 2016 | Print | Site Map | Help
 

Pension Plan

 
Taxation on Benefits

Federal Income Taxes will be automatically withheld from any benefits paid by the Plan (which exceed the no withholding limits established by the IRS) unless you elect not to have income taxes withheld. You will be given complete information and the opportunity to elect or reject withholding when you apply for benefits.

In addition, the Unemployment Compensation Amendments of 1992, requires that if you or your spouse are receiving certain types of benefits from the Plan (called “eligible rollovers”), 20% must be withheld for income tax purposes. These types of benefits include lump sums or installment payments over a period of less than 10 years. However, these types of benefits are also eligible for direct “rollover” into an Individual Retirement Account (IRA) or other tax-exempt retirement plan. If you rollover your benefits directly into an IRA or another retirement plan, the 20% withholding is not mandatory.

State Income Tax Withholding

State Income Taxes will be automatically withheld from any benefits paid by the Plan which exceed the limits established by the California Franchise Tax Board, unless you elect not to have income taxes withheld. You will be given complete information and the opportunity to elect or reject withholding when you apply for benefits.

Notice of Early Distribution Penalty

Federal law known as the “Tax Reform Act of 1986” imposes a 10% excise tax penalty upon early distributions from the Pension Plan. This amount is in addition to any ordinary income tax due. Unless a you satisfy one of the exceptions shown below, payment of your pension following a separation from service which occurs before you reach age 59 1/2 will be subject to this additional 10% tax.

  • Payment in the form of a life annuity (including a joint and survivor annuity) following separation from service;
  • Payment to a Participant who is at least age 55 made in accordance with the Plan’s early retirement provisions;
  • Payment made due to a Participant’s death or disability, or to an alternate payee as decreed by a qualified domestic relations order (commonly called a “QDRO”); or
  • Payment made to a Participant used to pay medical expenses otherwise deductible under Internal Revenue Code Section 213.

Download Tax Forms

References to specific section(s) of the Plan can be found in the Official Plan Document under Plan Documents on this website.

Contact Plan Administrator

Telephone NumberPhone:
(866) 894-3705

ContactEmail:
paintersinfo@hsba.com

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Health Services & Benefit Administrators, Inc. (HS&BA)
4160 Dublin Boulevard, Suite 400
Dublin, CA 94568-7756

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