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Summary Plan Description
SOCIAL SECURITY, MEDICARE, AND INCOME TAX
The pension benefit that you are eligible to receive from this Plan is paid to you in addition to any Social Security benefits you may also be entitled to receive.
SOCIAL SECURITY AND MEDICARE
Most employees will be eligible for full Social Security benefits at 65 years of age or reduced benefits at 62 years of age. For more information, call your nearest Social Security Office and ask for a current booklet which explains the benefits. You will be eligible for Medicare at 65 years of age, regardless of whether or not you have retired.
PENSION BENEFITS AS TAXABLE INCOME
In most cases, your Social Security benefits are not taxable unless your taxable household income is greater than $25,000 for an individual, or $32,000 for a married couple filing a joint return. However, benefits from the NASI Pension Fund ARE taxable. You will receive from the Fund Office each year a 1099-R form showing the benefits paid to you.
If you are totally and permanent disabled, a portion of your Disability Pension from the Plan may be excluded from taxable income, but this exclusion is reduced if family taxable income exceeds a certain dollar amount per year. You should seek professional or IRS advice on taxes if this might apply to you.
Unless you elect otherwise, taxes must now be withheld from your pension as if they were wages paid by an employer. Withholding will be based upon your instructions to the Fund. Effective January 1, 1994, if you do not provide instructions and your monthly payment exceeds $1,160 in 1994, the Fund will withhold.
In addition, if you receive a form of lump sum distribution from this Plan on or after January 1, 1993, which is eligible for a direct distribution to another qualified plan or an IRA, you must request a “direct rollover” of the money or the Plan is required to withhold 20% of your distribution. You will receive information concerning the rules for mandatory withholding and direct rollover at the time you are eligible for a distribution from the plan.