Active members in the Sailor's Union who are considering retirement soon should be giving thought to the retirement tools offered through Social Security and the SUP Welfare Plan. Combined with your benefits from the SUP Pension Plan you may tie in your Social Security benefit along with your Money Purchase Plan and 401-k plan. All of these benefits should be considered when you are trying to determine your annual retirement income.
The Welfare Notes column in March explained the annual statement mailed out by the Social Security Administration. With this statement you can compute what your Social Security income will be at the age you decide to retire. This statement will also tell you at what age you will be eligible for full retirement.
Before you retire you should contact the Welfare Plan office and discuss your Money Purchase Plan. You should explore the options available for withdrawal and distribution on these funds. The Money Purchase Plan funds may be taken in a lump sum, however, a percentage will be held back for federal taxes. Another option is a roll-over of your Money Purchase funds into an authorized IRA and draw a specified amount monthly and pay taxes only on the amount withdrawn.
Those members who participate in the 401-k plan may also use these funds in figuring your monthly retirement income. You may discuss your 401-k distribution with your financial advisor or you may contact Columbia Funds at 1-800-547-1037 for further assistance. Another benefit for being in the 401-k plan is that you may discuss your entire financial situation with Columbia Funds and use their expertise in strengthening your retirement income.
Before you retire we recommend that you contact the Welfare Plan office and discuss your retirement medical and dental programs under the Annual Allowance Benefit. The Welfare office staff can discuss, and guide you through the coverage's for you and your spouse. Medicare is another medical benefit that becomes available to retirees at age 65. Another important note, even if you do not retire at age 65, be sure to contact the Social Security Administration three months before your 65th birthday to enroll in Medicare.
Social Security questions can be answered by calling 1-800-772-1213. Social Security also has a website at here you may use the Benefit Planners to help with your financial planning. You may also subscribe to e-news for up to date news about Social Security.
If you have any questions on any of your retirement medical, Money Purchase Plan, 401-K Plan please call the Welfare Plan office for assistance.
SUP Welfare Plan
Rich Reed, Welfare Plan Representative
450 Harrison Street
San Francisco, CA 94105