How the Plan Works

The Annuity Fund was set up to provide a source of retirement income for eligible employees.

Getting Started

If you are eligible to participate in the Local 94 Annuity Fund, an Individual Account will be set up in your name. All required contributions made on your behalf by Contributing Employers, as well as any eligible funds rolled over from previous accounts, will be credited. John Hancock Retirement Plan Services administers your account and lets you access and manage your account through

Employer Contributions

Your account is primarily funded by employer contributions. Each month, your Contributing Employer makes contributions to your account in accordance with the terms of its agreement with Local 94.

If you have an eligible rollover paid to you from another employer’s qualified retirement plan, it may be transferred into the Local 94 Annuity Fund upon the Trustees’ approval. The Plan does not accept rollovers with after-tax contributions made to other retirement plans.


You are immediately and fully vested in your account. As a result, when you become eligible to receive benefits from the Plan, you can withdraw whatever balance remains in your account.

Investing Your Account

You invest the money in your account in order to increase your savings for retirement. There are a variety of investment selections that you can choose.

  • Diversified Portfolios—Choose one portfolio that already contains diversified investments. 
  • Mix Your Own Portfolios—You can choose to spread your money across different portfolios, including conservative or aggressive funds, or funds that include stocks, bonds or a mix of the two. You tailor your investment decisions based on your risk tolerance.

If you do not make an investment election, the default investment portfolio is the appropriate T. Rowe Target Trust (Class C), based on your date of birth.

Risk and Responsibility

Because investment returns are dependent on the performance of the stock and bond markets, you are responsible for your investment decisions.

Certain portfolios carry more risk, which can mean a greater financial reward but also a larger loss. Researching and watching your investments closely can help keep your money safe.

Free Professional Investment Advice

You have access to free investment advice from professional financial advisors to help you make better investment decisions. Note that these services offer advice only for your Annuity Fund account, but the advice will take into consideration your Plan assets as well as assets you hold outside the Plan.

Get an analysis of your finances plus guidance on how to save and invest for retirement. Contact Retire Rite by calling (888) 453-1869, Monday through Friday, 9:00 AM – 5:00 PM ET, or e-mail

Receiving Benefits

You are eligible to receive benefits from your account if:

  • You retire at or after age 55;
  • You end employment with all Contributing Employers and have no contributions for 12 consecutive months (please note that if you have not reached age 55 and choose to withdraw from your annuity fund, you may be subject to a 10% penalty and income taxes on the distribution—please consult your tax advisor); or
  • You become totally and permanently disabled.

You can elect to receive your benefits in various forms of payment, including lump-sum payments or installments. Normally these benefits are taxed as normal income subject to federal income tax withholding.

If you die before or while receiving benefits and you are still eligible for benefits, your eligible beneficiary will receive benefits in accordance with Plan rules.

To apply for benefits and name a beneficiary, find the appropriate forms at


In certain cases, you can take out a loan from your Annuity Fund account. Reasons to take out a loan include:

  • Buying or fixing a principal residence
  • Medical bills that are not reimbursed by medical insurance
  • Educational expenses (tuition) at an accredited school, including vocational school, at any level
  • Expenses incurred for the legal adoption of a child
  • Funeral expenses incurred because of the death of your Spouse or a dependent child

You are eligible to apply for a loan if you are actively employed by a Contributing Employer, and you have been so employed for at least three years. You may have only one loan outstanding at a time. An outstanding loan balance (active or defaulted) must be paid in full prior to applying for a subsequent loan (except those loans that were defaulted prior to January 1, 1996). The maximum amount of loan(s) outstanding (including defaulted loans) is the lessor of $50,000 or 50% of your account balance. 

To apply for a loan, get more information or download an application form, please visit

More Information

To get more information on how the Annuity Fund works, you can download and read the Annuity Fund Summary Plan Description (PDF), or you can contact the Fund Office or visit


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