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Contact Numbers: FUNDS' Call Center (800) 291-1425 Provider Services (888) 865-5290 Administration (202) 521-2200 © Copyright 2007 UMWA H & R Funds All rights Reserved		Cash Deferred Savings Plan of 1988 Frequently Asked Questions  A.   About the plan Plan name Plan sponsor and address Funds' Call Center Toll Free Number CDSP Web Site Plan year Type of plan B.   How and when was the plan created? C. Who is eligible to join this plan? D.   How do I join the plan? E. How do I contribute to the plan? F. Are there limits on how much I may contribute to the plan? G. What are Catch-Up Contributions? H. What is the Average Deferral Percentage (ADP) Test? I. May I change my contribution rate, suspend or discontinue contributions to the CDSP after I have become a participant? J. How is my money invested? K. May I change my investment choices or reallocate my savings among the investment choices after I have become a participant? L. How do I know how much money I have in my plan account? M. Who pays the expenses of administering the plan? N. How are gains / losses allocated to participants' accounts? O. May I withdraw my contributions while I am still working? P. When may I have the proceeds of my account? Q. How are my benefits payable? R. If I do not qualify for a Benefit Distribution, how else may I withdraw money from my CDSP account? S. What do I do if my Hardship Withdrawal is denied? T. What are the tax consequences of withdrawing proceeds from my account? U. Does the plan have a loan provision? V. What happens if my employment is terminated or I go to work for an employer who does not participate in the plan? W. What happens if I take a non-classified position with my employer? X. What happens when I die? Y. Am I required to make withdrawals from my account at any time? Z. What information must I provide the CDSP? AA. Can my rights to the value of my account be transferred? BB. Can the plan be amended or discontinued? CC. Statement of ERISA rights A. About the plan Plan Name United Mine Workers of America Cash Deferred Savings Plan of 1988 (" CDSP ") Plan Sponsor and Address Board of Trustees UMWA Cash Deferred Savings Plan of 1988 2121 K Street, NW, Suite 350 Washington , D.C. 20037 Funds' Call Center Toll Free Number 1-800-291-1425 Press Option 4 for CDSP Forms Press Option 5 for all other CDSP questions (other than forms) CDSP Web Site Click here Plan Year January 1 through December 31 Type of plan 401(k) Plan B.   How and when was the plan created? The CDSP came about as a result of the National Bituminous Coal Wage Agreement of 1988, which was negotiated between the UMWA and the Bituminous Coal Operators' Association, Inc. The plan became effective on May 1,1988 , and the first contributions were received in August 1988. C.   Who is eligible to join this plan? Any active miner who is employed in a classified job for a participating signatory employer is eligible to join the plan on his first day of employment. However, no individuals who are directly connected with the ownership, operation, or management of an employer may participate . An individual is directly involved with the ownership of an employer if he has an ownership interest of 5% or more in the employer. NOTE:  In order to participate in the CDSP , your employer must be signatory to the National Bituminous Coal Wage Agreement, or some other wage agreement entered into between the UMWA and your employer that permits 401(k) contributions to the Plan. D.   How do I join the plan? Eligible employees can call the Funds' Call Center toll free number at 1-800-291-1425 and request an enrollment or re-enrollment package or access all forms through the CDSP 401(k) Forms: (click here). An eligible employee may begin participation once he executes and files a written application authorizing deductions from his wages. Processing of applications takes approximately four (4) weeks . The CDSP will notify the employer of the employee's authorization to begin deductions. Forms Required: Enrollment and Beneficiary Designation or Re-Enrollment and Beneficiary Designation E.   How do I contribute to the plan? Plan participants may contribute through payroll deductions and/or a rollover of assets from a qualified employer plan or Individual Retirement Account (IRA). Rollovers must be done within three (3) months of joining the Plan. Employers will transfer the contributions to the CDSP . In addition, if at the end of any calendar year, an employee has not exhausted the personal or sick leave days for which he is eligible, he may, within ten (10) working days, elect to have the pay in lieu of such leave at his regular classified straight time rate placed in the Plan. Forms Required: Enrollment and Beneficiary Designation or Re-Enrollment and Beneficiary Designation or Application to Contribute Pay in Lieu of Unused Personal or Sick Leave Days F.   Are there limits on how much I may contribute to the plan? Each participant may authorize salary deferrals under the Plan in an amount equal to any percentage (in multiples of 1%) of his compensation up to twenty five percent (25%) as he may choose. Contributions for any calendar year, however, may not exceed the statutory limit of $7,000, multiplied by the adjustment factor. Contributions may also be limited by certain federal limits related to non-discrimination testing. See question H. For plan year 2007, the adjustment factor requires the contribution limit for each participant to be $15,500, plus $5,000 if an employee is eligible to make Catch-Up Contributions. Form Required: Application to Change Elections Percentage for Future Contributions G.   What are Catch-Up Contributions? Catch-Up Contributions are salary deferrals that employees age fifty (50) and older may make to their CDSP accounts, which exceed an otherwise statutory or Plan deferral limit. To be eligible, the employee must reach age fifty (50) by the end of the applicable Plan year. For example, for the year 2006, an eligible employee who will have turned age 50 by December 31, 2006 may contribute up to $3,000 more than the lesser of the statutory deferral limit of $15,000, the CDSP deferral limit of 25% of compensation or the deferral limit established through non-discrimination testing. The participant's total deferral (including Catch-Up Contributions) cannot exceed 100% of compensation. Catch-Up Contributions were adopted in the 2002 Wage Agreement and CDSP plan documents. The Catch-Up Contribution limits will increase each year in $1,000 increments through 2006. Form Required: Application for Additional Catch-Up Contributions H.   What is the Average Deferral Percentage (ADP) Test? IRS regulations require that the CDSP perform an annual "average deferral percentage" (ADP) non-discrimination test to determine any additional limits placed on contributions made by highly compensated employees. Each company makes the determination of whether an employee is "highly compensated" by referring to IRS regulations. Additional information about these regulations is available from the plan administrator. Because of this test, it is possible that a highly compensated participant may receive a refund of a portion of his contributions. Notification that a participant has been determined to be a highly compensated employee for the immediately prior calendar year, along with any required refund of prior year contributions, will be sent to affected participants by March 15. I.  May I change my contribution rate, suspend or discontinue contributions to the CDSP after I have become a participant? You may change the amount of your 401(k) contributions on January 1, April 1, July 1, or October 1 of each year by giving the CDSP thirty (30) days advance written notice. You may voluntarily suspend your 401(k) contributions at any time by giving the CDSP written notice. You may resume contributions to the plan as of any January 1, April 1, July 1, or October 1 coincident with or next following the passage of three months after the effective date of your voluntary suspension by giving the CDSP thirty (30) days advance written notice. Forms Required: Application to Change Election Percentage for Future Contributions or Application to Suspend Contributions J.   How is my money invested? All contributions will be invested in one or more of the six (6) available investment options. They currently include: Calvert Social Investment Fund Money Market Portfolio UMWA JPMorgan Stagle Value Fund Vanguard Government National Mortgage Association (GNMA) UMWA 401(k) Balanced Fund Barclays Global Investors (BGI) S&P 500 Equity Index Fund Fidelity Equity-Income Fund It is up to you to select the fund or funds in which your contributions will be invested. You may direct all your contributions into one option or allocate them among funds in multiples of 5%. K.   May I change my investment choices or reallocate my savings among the investment choices after I have become a participant? You may change the way in which past or future contributions are invested as of the first day of each calendar quarter by submitting the proper form thirty (30) day in advance . Amounts may be transferred between funds in multiples of 5% also as of the first day of each calendar quarter. RESTRICTIONS:   Your investments may not be transferred between the Calvert Money Market Portfolio, the UMWA JPMorgan Stable Value Funds, or the Vanguard GNMA Fund. Direct transfer to the Calvert Money Market Portfolio, the UMWA JPMorgan Stable Value Funds, or the Vanguard GNMA Fund may only be made from the UMWA 401(k) Balanced Funds, the Barclays Global Investors or the Fidelity Equity-Income Fund. Form Required: Application to Change Investment Option for Future and or Past Contributions L.   How do I know how much money I have in my plan account? Each participant has an individual account. This account consists of all of your 401(k) contributions, transfers-in, plus earnings on your investments. Investment losses, transfers-out and any withdrawals or distributions made by or to you are subtracted from your account. You will receive a quarterly statement that details your individual account approximately four (4) weeks after the end of each quarter. You may also call the Funds' Call Center toll free number at 1-800-291-1425 (Option 5) during business hours (Monday through Friday, 9:00 am - 4:45 pm eastern standard time) to obtain your balance. M.   Who pays the expenses of administering the plan? Administrative costs of up to an annual maximum of $300,000 are paid by the employers. If costs exceed this amount, participants will be charged for the additional amounts. N.   How are gains / losses allocated to participants' accounts? Income earned or losses incurred by the different investment funds are credited to participants who are participating in those funds each quarter in proportion to the amounts each participant has invested in each specific fund. A participant's share of a fund's gains or losses for a quarter is based on the participant's account balance or balance in a particular fund at the end of the quarter, excluding contributions made during that quarter. O.   May I withdraw my contributions while I am still working? Normally, you may not withdraw money from your account while you are working for a signatory employer because the plan is designed for long-term saving. However, you may request a withdrawal if you have a financial emergency that creates an immediate and heavy financial need and the withdrawal is necessary to satisfy the financial need. See question R. P.   When may I have the proceeds of my account? You may receive the funds in your account under the following circumstances:   If the UMWA 1974 Pension Trust has approved you for retirement, normal (age 62), early (age 55), or disability as defined by the UMWA 1974 Pension Plan;   If the UMWA 1974 Pension Trust has not yet approved you for retirement, but you have received a completed certificate of retirement form from your employer;   If your employer has terminated you (lay-off) and you are not receiving any benefits from your employer (i.e., health insurance, sickness & accident, or workmen's compensation). However, you are not eligible for a withdrawal if you leave one signatory employer and go to work for another signatory employer; in this case you may complete a new enrollment form if you wish to continue payroll deductions;   If you quit and you are no longer working for a signatory employer, and you are not receiving any benefits from your employer (i.e., health insurance, sickness & accident, or workmen's compensation);   If you have a severe financial hardship as outlined in Question R ( note - in this case, you may withdraw your contributions, but not the earnings on those contributions);   If you die, your beneficiary or beneficiaries will be eligible for a distribution. You must apply in writing to the CDSP to receive payment. A completed "Application for Benefit Distributions" must be received in the CDSP office no later than the last day of the quarter (i.e., March 31; June 30; September 30; and December 31) to be processed at the end of each quarter after gains / losses are posted to your account . It takes approximately four (4) weeks to process an application after the quarter ends. IMPORTANT:   If you are currently working in a classified job for a signatory employer, regardless of your age, you may not close your CDSP account. Form Required: Application for Benefit Distribution Q.   How are my benefits payable? When you retire on normal retirement, deferred retirement, early retirement, or on a disability pension, you may elect that your account be paid to you in a lump sum or in installments for 120 months (10 years). If you elect installment payments, you may select any beneficiary to receive any remaining payments after your death, subject to the rules discussed in Question X. The amount of your distribution will be based on your account balance as of the end of the calendar quarter coincident with or subsequent to the filing of your application. R.   If I do not qualify for a Benefit Distribution, how else may I withdraw money from my CDSP account? If you do not qualify for a Benefit Distribution, the only other way to withdraw money from your CDSP account is through a Hardship Withdrawal. According to current IRS regulations, the following situations qualify as a hardship if an employee has no other source of funds: •  Un-reimbursed medical expenses incurred by a participant or dependant; •  Tuition, room and board for post-secondary education for the next two semesters (book, fees, and travel expenses are not covered ) of a participant or dependant; •  Down payment and/or closing costs needed for the purchase of one's principal residence; and •  Prevention of foreclosure or eviction from one's principle residence (behind at least two (2) months on mortgage or rent payment). For all other situations, the Hardship Withdrawal Committee shall determine whether an immediate and heavy financial need exists based on all relevant facts and circumstances submitted. IRS regulations state that your distribution cannot be in excess of the amount of the immediate need. You do not qualify for a Hardship Withdrawal if you can meet the financial need through: •  Suspending contributions to the CDSP; •  Reimbursement by insurance; •  Liquidation of assets (i.e., withdrawing money from bank account); or •  Borrowing from commercial sources at reasonable commercial terms (i.e., obtaining a student or personal bank loan). You are not eligible for a Hardship Withdrawal if you are retired, or if you are no longer working and your eligibility for health, sickness & accident, or workmen's compensation benefits has been terminated. IMPORTANT:   Hardship withdrawals are not allowed for the purpose of "paying-off" any current monthly installment debt. The Plan limits participants to one (1) hardship withdrawal per calendar quarter. You must provide copies of all appropriate documentation to substantiate amount being requested (i.e., un-reimbursed medical expenses from hospital or doctor, tuition/room/board bill from post-secondary education, sales contract for the purchase of principal residence (include current rental agreement; bank pre-approval letter; closing cost and date; and/or good faith estimate), notice from your mortgage lender or landlord indicating months and amounts in arrears). This information is needed by the Hardship Withdrawal Committee to determine if you have a financial emergency creating an immediate and heavy financial need. Completed "Hardship Withdrawal Application" with supporting documentation (i.e., income & expense worksheet and copies of bills) must be received in the CDSP office no later than the Friday before the last Thursday of every month. Hardship applications are reviewed by the Hardship Committee the last Thursday of every month. Checks for approved hardships will be processed / mailed the last Friday of every month. If your hardship withdrawal is approved , the CDSP will send you a check with a cover letter explaining your benefit. If your hardship withdrawal is denied , the CDSP will send you a letter explaining the reason for the denial. See question S. Form Required: Hardship Withdrawal S.   What do I do if my Hardship Withdrawal is denied? If your Hardship Withdrawal is denied, a letter is sent to you explaining the reason for the denial. You have a right to appeal the decision. Your appeal must be in writing and received within 60 days of receipt of the denial notice and mailed to UMWA CDSP , 2121 K Street, NW, Suite 350 , Washington , DC 20037 . All appeals should state the reason for your request and include any additional documentation or information you would like the CDSP to consider. This information should include any documentation that shows you have a financial emergency that has created an immediate and heavy financial need. On appeal, you will receive a full and fair review of your claim. The CDSP will consider all information submitted by you in support of your claim. You will be notified of the CDSP 's decision not later than 60 days after receipt of your request for review, unless, because of special circumstances, the CDSP needs additional time. If the denial of your claim is upheld, the CDSP will give you written notice of the denial and will explain any further rights you may have regarding your claim. T.   What are the tax consequences of withdrawing proceeds from my account? Contributions you make to the plan from your pay are not taxed at that time. Income earned on those contributions is also not taxed as earned. However, when you withdraw any amounts from the plan at any time, all amounts withdrawn are subject to federal, state, and any applicable local income taxes. Any early withdrawal of contributions or earnings generally is also subject to a penalty tax of 10% in addition to all regular income taxes. Early withdrawals are withdrawals prior to the date the participant reaches 59½ years of age and include hardship withdrawals or withdrawals upon termination of employment. Withdrawals related to normal early retirement (age 55 or older), separation from service after age 55, part of a series of equal payments, or death benefit, are not subject to the penalty. Furthermore, any withdrawals that are deposited into another qualifying tax-deferred savings plan, IRA, etc., (a "rollover") within sixty days of the withdrawal are not subject to any taxes at that time, as long as the rollover complies with provisions of the Internal Revenue Code. You should contact your accountant or tax advisor if you have any other questions regarding the tax consequences of a withdrawal. U.   Does the plan have a loan provision? The CDSP does not have a loan provision. V.   What happens if my employment is terminated or I go to work for an employer who does not participate in the plan? If you leave your employment voluntarily or involuntarily before retirement and you are not receiving or eligible to receive any benefits from your employer (i.e., health insurance, sickness & accident, or workmen's compensation), you will be entitled to receive 100% of the amount in your account. The portion of your account to which you are entitled upon leaving the employer is called your vested interest. In this plan you are always 100% vested in your account. Your vested interest belongs to you no matter what; it never can be taken away from you even if you quit or are fired. If you are no longer employed by a participating employer and you are not receiving or eligible to receive any benefits from your employer (i.e., health insurance, sickness & accident, or workmen's compensation), you may, but are not required to receive a distribution of your account balance. W.   What happens if I take a non-classified position with my employer? If you take a non-classified job with your employer you will become ineligible to participate in the plan and your contributions to the plan will cease as of the date that your non-classified employment begins. The amounts in your account will be held for your benefit until a distribution is otherwise required under the plan. You may be able to roll the assets in your account over into another defined contribution plan maintained by your employer, if the employer's plan accepts such transfers. X.   What happens when I die? When you die, the balance in your account will be distributed to your beneficiary. You may designate in writing any beneficiary and contingent beneficiary. You may change this designation at any time by a written instruction to the CDSP. If you are married, your spouse will automatically be your beneficiary , unless your spouse consents in writing to the designation of another beneficiary and that consent is witnessed by a plan representative or notary and filed with the CDSP. If you die without a designated beneficiary, and have no surviving spouse, your natural and adopted children will be your beneficiaries. If you had no children, your account will be distributed to your father or mother or both. If they are not living, your account will be distributed to your estate. Upon your death, your beneficiary may receive the balance in your account in a lump sum as soon as possible. If the beneficiary prefers, the account may be paid in installments over certain periods of time specified in the plan. Forms Required: Application for Benefit Distribution or Application to Change Beneficiary Designation Y.   Am I required to make withdrawals from my account at any time? In accordance with the provision of the IRS and the CDSP , qualified participants reaching the age of 70½ in the calendar year must take a minimum required distribution from their account by April 1 , with distributions for succeeding years due not later than December 31. You have the option to receive the first distribution within the calendar year you reach the age of 70½ (by December 31) or no later than April 1 of the next year. If you elect to wait until the following year, you will receive two distributions: the first distribution for the calendar year you reached the age of 70½ (no later than April 1), and the second distribution (and every year thereafter), no later than December 31. IMPORTANT: Failure to comply with these distribution requirements may result in a 50% excise tax on the amount not distributed. Z.   What information must I provide the CDSP? An important part of the plan's overall administration is record keeping. You will be required to furnish information to the CDSP so that accurate and timely records may be maintained on your behalf (i.e., change of address or telephone). Much of this information will be requested when you enter the plan as a participant. You are urged to comply promptly with requests by the CDSP for information pertinent to the plan. This information assists the CDSP in making proper and timely distributions to you or your beneficiaries. Another important responsibility of each participant is the designation of a beneficiary. Your beneficiary is the person or entity, which receives the value due from the plan in the event of your death. To specify your beneficiary, you must fill out a form when you enter the plan. The CDSP keeps all beneficiary designation forms on file. You may change your beneficiary at any time by providing written notice and, in fact, you are advised to review your beneficiary designation periodically and update it, if necessary. The CDSP may from time to time request that you review and update your beneficiary designation. If you are married, your spouse will automatically be your beneficiary unless he or she consents to your designation of another beneficiary. Such consent must be on a special form, which may be obtained from the CDSP. Contact the CDSP for further information. Forms Required: Application to Change Beneficiary Designation or Applications to Change Home Address AA. Can my rights to the value of my account be transferred? Generally, your rights to your retirement benefit cannot be transferred to anyone else. However, your right to a portion or all of your retirement benefit may be assigned to a spouse, former spouse, child, or other dependent pursuant to a "qualified domestic relations order" (QDRO) by a court that is considering issues of separation, divorce, property settlement, alimony, or child support. You will be notified if such an order is filed with the CDSP. BB. Can the plan be amended or discontinued? Yes, the UMWA and the employers may agree to amend the provisions of the plan. They may also discontinue the plan. If the plan is discontinued, you will remain entitled to receive all of the funds held in your account. The Pension Benefit Guaranty Corporation (PBGC) does not insure your account in this plan because this is a defined contribution pension plan and not a defined benefit plan, which promises you a guaranteed benefit at retirement. However, no employer is able to take assets out of the plan upon plan termination or amendment. Upon plan termination, the CDSP may determine the timing and manner of distribution of your account balance. They may decide to distribute all accounts following termination, or to make distributions only upon each participant's retirement, separation from service, or death as the plan provided before termination. CC.   Statement of ERISA rights As a participant in this plan, you are entitled to certain rights and protections under the Employee Retirement Income Security Act of 1974 (ERISA). ERISA provides that all plan participants shall be entitled to: (a) Examine, without charge, at the plan sponsor's office, all plan documents and copies of all documents filed by the plan with the U.S. Department of Labor, such as detailed annual reports and plan descriptions; (b) Obtain copies of all plan documents and other plan information upon written request to the plan administrator. The plan administrator may make a reasonable charge for the copies; (c) Receive a summary of the Plan's annual financial report. The plan administrator is required by law to furnish each participant with a copy of this summary annual report; and (d) Obtain a statement telling you whether you have a right to receive a benefit at normal retirement age and if so, what your benefits would be at normal retirement age if you stop working under the plan now. If you do not have a right to a benefit, the statement will tell you how many more years you have to work to get a right to benefit. This statement must be requested in writing and is not required to be given more than once a year. The plan must provide the statement free of charge. In addition to creating rights for plan participants, ERISA imposes duties upon the people who are responsible for the operation of the employee benefit plan. The plan administrator, the trustees and the employer have a duty to operate the plan prudently and in the interest of you and other plan participants and beneficiaries. No one, including the employer or any other person may fire you or otherwise discriminate against you in any way to prevent you from obtaining a benefit or exercising your rights under ERISA. If your claim for a benefit is denied in whole or in part you must have written explanation of the reason for the denial. You have the right to have the plan administrator review and reconsider your claim. Under ERISA, there are steps you can take to enforce the above rights. If those rights have been violated you may seek assistance from the U.S. Department of Labor, or you may file suit in a state or federal court. If you have any questions about your plan, you should contact the plan administrator. If you have any questions about this statement or about your rights under ERISA, you should contact the Pension and Welfare Benefits Administration in the U.S. Department of Labor located at 200 Constitution Avenue, NW , Washington , D.C. 20216.	Drop Down Menu CDSP 401K Participants CDSP Upload CDSP Forms CDSP 1988 Medical Provider Pension Forms Pharmacy Program Resoultion of Dispute UMWA H & R Funds 2121 K. Street N.W., Washington DC, 20037 (202) 521-2200
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