401k Plans

Eligibility

You are eligible to participate in the SEIU Supplemental Retirement Savings (401(k)) Plan upon date of hire but contributions cannot begin until the payroll period coinciding with or immediately following the date you are hired as a Covered Employee.  You become a participant by enrolling in the Plan. 

Terms of Enrollment

You authorize payroll to deduct anywhere from 1% up to 25% of gross compensation for deferral into the 401k Plan.  You may not exceed the annual elective deferral limit [($18,500 for 2018)] unless you are 50 years or older and elect to make the catch-up contribution [(for 2018, up to an additional $6,000)].

Maintaining Eligibility

You continue to be a participant in the SEIU 401(k) Plan as long as you are:

• employed by SEIU or the SEIU Benefit Funds and are receiving a salary; or
• maintain an account balance over $1,000 after terminating employment.

You may increase/decrease your deferral percentage or suspend deferrals at any time.  You indicate to which investment option(s) your deferrals will be allocated—otherwise, deferrals will be allocated to the Qualified Default Investment Alternative.

Annual Compliance Testing

Annual compliance testing is mandatory because of the tax advantage of the pre-tax deferrals.  Highly Compensated Employees (HCEs) – those earning $120,000 or more – should be aware that nondiscrimination testing may result in a refund of excess deferrals, taxable for the year in which refunded.  Testing for the previous calendar year is done in the 1st quarter of the subsequent year and excess deferrals are distributed by March 15.

Annual Compliance Testing.  Annual nondiscrimination testing is mandatory because of the tax advantage of pre-tax deferrals.  The Plan must not discriminate in favor of highly compensated employees with respect to contributions, benefits, or other rights and features of the Plan.

Highly Compensated Employees (HCEs) – those earning $120,000 or more – should be aware that nondiscrimination testing may result in a refund of excess deferrals, taxable for the year in which refunded. 

Testing for the previous calendar year is done in the 1st quarter of the subsequent year and excess deferrals are distributed by March 15.  Prudential will issue a 1099-R for your tax records.

Consult with your financial advisor to determine what change(s), if any, you may want to make for the next tax year.

If you are age 50 or older (or if you will turn 50 this year), you may elect to make additional contributions over and above the current annual elective deferral limit.  Catch-up Contributions will need to be elected for each new Plan Year.

In some cases, the deferral percent will need to exceed 25% (but only for the duration of the Plan Year).  Contact your payroll officer to determine the best way to proceed.

Once your account has been established, you may roll over money to your account from another similar retirement plan.  This can be initiated online from your Prudential account. Select “Roll Money In” from the menu.

Or you can call Prudential at 1-877-778-2100 anytime Monday through Friday between 8:00 a.m. to 6:00 p.m. Eastern Standard Time and say "Consolidate" when asked how to help you.

Make sure the Plan Administrator has your Beneficiary Designation on file.  Prudential does not keep this information in their records.  You can mail or email the form to the SEIU Benefit Funds 401k Specialist.  As circumstances change, you can submit an updated designation.  Be sure to follow directions as indicated on the form.

Your survivor(s) can contact Prudential Retirement (1-877-PRU-2100) to apply for benefits.

You may be able to access money in your retirement plan account through a loan or a hardship withdrawal, but there are tax consequences.

LOANS: For an $80 application fee, the Plan permits one loan at a time, to be repaid through payroll deduction.  If the loan is not paid in full, tax consequences will apply.  The loan may be repaid in a lump sum.  For further details, access your account or call Prudential.

Participants must wait 7 days after paying off a loan before requesting a new loan.

There is a QJSA wait period on new loans; transaction will be processed no sooner than 8 days after the Date Requested.

If you terminate employment before your loan has been satisfied, you have the option of making coupon payments so that the loan does not default.  Inquire of Prudential for details.

Under certain circumstances, if you transfer to an affiliated local, you may be able to transfer your outstanding loan balance to the affiliated plan and continue making repayments.

HARDSHIP WITHDRAWALS: While employed, you may make a withdrawal request due to a financial hardship, within plan restrictions.  Consult a Prudential specialist by phone or access your account online, for more information.

If you receive a hardship distribution, you will be suspended from making before-tax contributions to the plan for a period of 6 months from the date of the distribution.

If the affiliated local participates in the SEIU Affiliates’ Supplemental Retirement Savings 401(k) Plan, you can:

• keep your SEIU Staff 401k Plan account intact, although you won’t be able to contribute and there will be a $10 quarterly account maintenance fee deducted
• take a lump sum distribution (tax penalties may apply)
• roll over to another retirement plan
• roll over to the SEIU Affiliates’ 401k Plan

   

  Check with the affiliated local employer to determine whether or not they participate in the SEIU Affiliates’ 401k Plan.

  If I transfer to an unaffiliated employer, what happens to my 401k account?

  You can:

• keep your SEIU Staff 401k Plan account intact, although you won’t be able to contribute and there will be a $10 quarterly account maintenance fee deducted
• take a lump sum distribution (tax penalties may apply)
• roll over to another retirement plan

Help us keep you “in the loop” by updating your mailing address or marital status as your conditions change.  You can update your address and phone number online, under “Personal Information.” 

(See “How do I… Change My Email Address?”.)

To update marital status, contact the SEIU Benefit Funds office.  Local Phone: 202-730-7500; Toll-Free:  1-800-458-1010.  You may need to mail or email a document for proof of status change, e.g. marriage certificate, divorce decree or death certificate.

If you prefer electronic statements and notices, enroll in e-delivery. You can do that in “Statements & Documents” under “Delivery Preference.”

Required Minimum Distributions (RMDs) generally are minimum amounts that a retirement plan account owner must withdraw annually starting with the year that he or she reaches 70 ½ years of age or, if later, the year in which he or she retires. 

You must begin withdrawing money by April 1 of the year following the year that you turn 70½. In general, your age and account value determine the amount you must withdraw.

Introducing Prudential Retirement's new companion mobile app. 
Prudential Retirement's new mobile app lets you access your workplace retirement accounts from your smartphone or tablet, wherever and whenever you want. You can view your retirement account balances, investments, performance and more.

Install the "Prudential Retirement" mobile app from the App Store on iPhone and iPad.

Also, Prudential’s mobile site is getting a new look and feel.  Prudential has updated their mobile website to match what you see on the desktop version. If you had previously saved a favorite/bookmark on your mobile device, please update your favorite/bookmark to the Prudential Retirement Site to access all the features.