Trust Description

LUSP is a non-qualified trust fund, which began in 1975. It was started for the purpose of providing a savings vehicle for CWA members who joined the trust on a voluntary basis.

The fund is governed by a Board of Trustees and managed by the Chairman of the Trust and the Plan Administrator. The place of business is located at 35 Bardonia Road Bardonia, NY 10954.

The original funding agent for the trust was Mutual Benefit Life Insurance Company. The current funding agent is Nationwide.

Contributions are made by participants in units of $7. Any multiplication of $7 is acceptable for payroll authorization without limit.

Participants may also make lump sum deposits of $500 or more without limitation.

All principal of contributions are on an after tax basis. All earnings on the contributions are tax deferred until such time as a distribution is made. In the event a participant elects to make a withdrawal, and he/she is not at least 59 1/2 years old, the 10% excise tax may apply.

Contributions and earnings are guaranteed by the funding agent, Nationwide. Neither the FDIC, nor any other federal agency guarantees the plan assets.

Each year, Nationwide and the Trustees reach agreement on the earnings guarantee for the coming year.

All plan assets are commingled in a single fixed income investment portfolio managed by Nationwide.

Participant account records are maintained by Nationwide, and quarterly statements are prepared by them.

Participants are permitted to take a full withdrawal at any time and a partial withdrawal once every 12 months.

A.   A full distribution of the entire account. The participant is suspended from future participation for a period of 6 months with every withdrawal.

B.   A partial distribution once in a 12-month period. Distribution must be at least $500. A maximum of 60% of the account value is allowed with each election.

C.   All appropriate tax laws apply. Currently the TEFRA regulations regarding distributions imply some mix of contributions and earnings. Earnings are subject to tax as ordinary income.

Participants are permitted more options after separation from service.

a. Participants are not required to take a distribution from the plan after they leave employment. The 70 1/2% rule does not apply because this is an unqualified plan. They are permitted to leave their deposits for an unlimited period of time.

b. Participants may take their entire balance upon leaving employment. All tax rules apply on the taxable portion of the distribution.

c. Since this is an unqualified plan, IRA rollovers are not permitted undercurrent IRS regulations.

d. Participants may elect to purchase an annuity. They may get their own annuity or apply for one of the products offered by Nationwide. This option includes the right to make a 1035 annuity exchange.

Participant may designate a beneficiary to receive their account balance in the event of the participants death. In the event that the participant is married, any beneficiary other than a spouse would require spousal consent.

Beneficiaries have the right to take the entire account subject to current tax laws on the taxable portion. They may also leave the account and just change the name on the account to their own.

Beneficiaries may also elect to take the account in the form of an annuity.

See Frequently Asked Questions for more information.

To join the plan or make changes, lump sums, or deposits, click on Print Forms.

Very truly yours,

Richard Daly
Chairman/Trustee