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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
Employees born in 1960 or later will be eligible for full Social Security benefits at 67 years of age or reduced benefits at 62 years of age. Those born before 1960 will be eligible to receive full Social Security Benefits somewhat earlier than age 67, depending on their year of birth. Regardless of the age you are eligible for full Social Security benefits, the earliest retirement age for reduced benefits will be 62. 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 the age you become eligible for full Social Security benefits.
PENSION BENEFITS AS TAXABLE INCOME
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 permanently 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.
Plan distributions which are not eligible rollover distributions (described below) are subject to elective Federal tax withholding. Recipients of periodic distributions (monthly pension) may elect to have their withholding according to the tax table for their stated dependent situation, to have their withholding according to the tax table for the "standard" dependent situation, to have a specified dollar amount withheld or to have no withholding. Recipients of non-periodic distributions (lump-sum payment) will have tax withheld at a flat 10% unless they elect to have a specified dollar amount greater than 10% withheld or to have no withholding.
DIRECT ROLLOVERS OF BENEFIT PAYMENTS AND TAX WITHHOLDING REQUIREMENTS
If you receive a form of lump sum distribution from this Plan on or after January 1, 1993, which is an "eligible rollover distribution" you must request a “direct rollover” of the money to an IRA or another plan that accepts rollover or this 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. The following is a summary of the tax rules:
Generally, an "eligible rollover distribution" is any distribution of all or a portion of a lump sum distribution made to a Participant, a Participant's Surviving Spouse, or an Alternate Payee. The following distributions from the Plan are eligible rollover distributions:
You can have all or any portion of your benefit either paid as a direct rollover or paid to you. A "direct rollover" is a payment, in full or in part, of an eligible rollover distribution made by the Plan directly to an eligible retirement plan. Eligible retirement plans include other tax qualified Pension plans, tax qualified annuities, IRAs, and qualified state and local government plans which accept rollovers.
If you choose a DIRECT ROLLOVER:
Generally, you cannot roll over any distribution made: