Issue 6, 2006

BAC SAVE 401(k) Plan – Retire with Financial Security and Peace of Mind

As people continue to live longer, their cost of living after retirement becomes higher. With this increase, individuals are realizing that if they wish to retire at a decent age – and enjoy their golden years – they need to start supplementing their pension incomes.

For this reason, the BAC SAVE 401(k) Plan was created.  Designed to increase BAC members’ retirement income by providing an important supplement to their defined benefit pension plans, the BAC SAVE 401(k) Plan has acquired over $2 million in assets since its inception in January 1998.

Members whose Locals negotiate participation in BAC SAVE in their collective bargaining agreements have the option of designating a portion of their pre-tax wages to be invested in the 401(k); as little as 25 cents to as much as $6.25 per hour, as long as total contributions do not exceed $15,500 annually (the maximum contribution per year specified by the IRS for 2007). This is different from the pension or annuity plans where employers contribute the same amount for all employees covered by the collective bargaining agreement, and all members covered by the agreement must participate in the plan.

These BAC SAVE contributions are not taxed, reducing the amount members owe the IRS, and their investments accumulate tax deferred until retirement. Moreover, BAC SAVE’s administrative expenses are much lower than those charged by other 401(k) plans.

To aid participants with their investments, BAC SAVE offers 12 investment options, including four “lifestyle” funds designed to fit different age and retirement objectives. They vary from a conservative “Stable Value Fund” to a more aggressive “Large Company Growth Fund.” The Plan also allows for hardship withdrawals, as defined by the IRS. Major life events, such as the purchase of a primary residence, tuition assistance, excessive medical expenses, eviction/foreclosure prevention, or funeral expenses, are a few examples of hardship withdrawals. If a member chooses to withdraw funds, however, the amount withdrawn will be taxed and subject to IRS penalties.

These BAC SAVE contributions are not taxed, reducing the amount members owe the IRS, and their investments accumulate tax deferred until retirement. Moreover, BAC SAVE’s administrative expenses are much lower than those charged by other 401(k) plans. The record keeping fee for internet and 800# service along with quarterly statements is $4.19.

For more information on the BAC SAVE 401(k) Plan, call 1-888-880-8BAC or visit the International Pension Fund’s website at www.ipfweb.org.