Trust Performance

At the December meeting of the Chairman of the Trust and the Plan Administrator, Nationwide Insurance company agreed to pay 3.65% on deposits in the Trust for the plan year 2014.

The decline of interest rates in the last few years has made it difficult to find yields that will support a higher rate. The Trustees feel that this rate is a superior one. In the last years, the guaranteed rate has declined with the decline in rates, but has been a little more stable. The guaranteed rate is the minimum that will be paid. The forecast is for a decline in Fed Funds rates and yields on Treasuries in 2013. As you can see, the actual rate paid to participants exceeded the minimum guarantee on average over the range.

More than 3000 members of CWA and the NEA Federal Credit Union will enjoy this tax‑deferred rate on more than $95 million in savings. This is a new milestone for the Trust.

All members of CWA are entitled to participate in the plan. However, all employers may not be a participating employer and payroll deductions may not be available. Lump sum contribution is a method that is available to all CWA members and retirees regardless of employer participation. The minimum lump sum contribution is $500. If membership in NEA Federal Credit Union is available, it may be possible to save in the plan through the Credit Union. You should call the plan administrator for more details.

Many members have found that saving in the Trust provides some stability in their retirement planning. Their 401‑K savings are more exposed to the wide fluctuations of the stock market. Most financial planners will agree that some stable funds are needed to guard against wide market swings.

The funding agent for the Trust is Nationwide. The Nationwide guarantee principal and interest. The FDIC or any other federal agency does not underwrite the Trust.

Fund
YEAR
GTD
Rate
Rate
Paid
2004 5.25 5.25
2005 4.9 4.9
2006 4.9 4.9
20072008

2009

2010

2011

2012

2013

4.654.50

4.40

4.00

3.75

3.65

3.65

4.654.61

4.45

4.19

4.07

3.65

3.65

Average 6.18

Source: Nationwide

LUSP wishes to welcome the members of NEA, FCU into its field of membership.

For more than 30 years, LUSP has been serving the membership of participating CWA locals with one of the finest long term savings plans to help them prepare for their retirement. There is currently more than $95 million in assets invested for the benefit of our participants.  Recently, the Board of Trustees voted to affiliate with NEA and to offer their members the opportunity to plan for their long term future needs. Many members of NEA are already familiar with LUSP. But, for those of you who may not know about the plan, I would like to introduce you to it.

LUSP provides participants the opportunity to save in a secure fixed income plan at a rate which is negotiated annually for the coming year. Contributions can be made periodically through a direct deposit method offered by most employers. Contributions may also be made on a lump sum basis (minimum $500 no maximum). You can use either method, or both.  Taxes on earnings are deferred until withdrawn. Contributions to the plan are not tax deductible. Rollovers from or to IRA’s and other qualified retirement plans are not allowed.

Nationwide Insurance guarantees the interest and principal of the participant’s account. Neither the FDIC, NCUA nor any other federal agency guarantees the Fund.

In the past 26 years, the Trust has earned an average of 6.18%. Steady growth without wide market fluctuations is the goal of the Trust Fund.

There is a wide range of annuity products available to participants when you are ready to retire. There is never a requirement to begin taking your savings. You may withdraw your funds at anytime without any interest penalty.

If you would like more information about this plan, please visit our website at www.lusptrust.org, or call us at 845-735-1818.

Sincerely,

Richard Daly
Chairman, Board of Trustees