Catch-Up Contribution, ILWU-PMA Savings 401(k) Plan |
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August 30, 2002
Dear Member:
Beginning with the first payroll period of October 2002, the ILWU-PMA Savings 401(k) Plan offers you the opportunity to make additional pre-tax elective deferrals to your plan account in the form of “catch-up contributions.” In addition to the pre-tax elective deferral annual limits*, shown below, if you are age 50 or older or if you will attain age 50 in the calendar year, you may contribute an even larger pre-tax elective deferral to your account. In the year 2002, you may defer an additional “catch-up contribution”** of $1,000 and for each year following as noted below.
To begin this “catch-up contribution”, you must be age 50 or you must attain age 50 in this calendar year. You will need to contact Fidelity Investment at 1-800-761-ILWU (4598) or go online to http://www.mysavingsatwork.com/mysavingsatwork/ and access Fidelity NetBenefits and indicate the additional pre-tax elective deferral for “catch-up contributions.” Your catch-up pre-tax elective deferral must be between $1 and $8 (whole dollars amounts only) of hourly pay and is in addition to your current pre-tax elective deferral and is deducted concurrently.
For example: If your current pre-tax elective deferral is $5 per hour and you elect a “catch-up contribution” of $5 per hour then your total deferral amount is $10 per hour until you reach the respective annual limits.
Requests to add “catch-up contribution” deferrals received on or before September 13, 2002, will be effective with the first payroll period of October 2002. Requests received thereafter will be effective within the usual administrative timeframe.
*Annual Contribution Limits – 401(k) Plan
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2002 |
$11,000 |
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2003 |
$12,000 |
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2004 |
$13,000 |
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2005 |
$14,000 |
|
2006 |
$15,000 |
**Age 50+ Catch-up Contributions Annual Limits
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2002 |
$1,000 |
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2003 |
$2,000 |
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2004 |
$3,000 |
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2005 |
$4,000 |
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2006 |
$5,000 |
After 2006, the annual contribution and the age 50+ catch contributions limits are indexed for cost-of- living adjustments in $500 increments.
If you have questions about your ILWU-PMA 401(k) Savings Plan, please contact Fidelity Investments at 1-800-761-ILWU (4598) and speak with a retirement specialist.
Sincerely,
Michael H. Wechsler
Senior Vice President and Chief Financial Officer
