Author: dcwd

The Board of Trustees recently voted to modify the plan benefits by increasing the Benefit Accrual Rate to 1.75% for employer contributions for hours of service on and after April 1, 2020.  To read more about this please click here: Summary of Material Modifications to the Plan of Benefits February 2020.

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All 1099-Rs for calendar year 2019 are due by January 31 but are scheduled to be mailed on or before January 22. If you do not receive your 1099-R by February 15, 2020, please contact the Fund office. Before doing so, however, please first refer to the list below of Frequently Asked Questions relating to the 1099-R mailing, which may answer your questions.

1099-R Frequently Asked Questions:

1. When will I receive a Form 1099-R for filing taxes?

Forms 1099-R are due to be mailed by January 31^st for benefits paid during the previous calendar year. As noted above, however, we scheduled the forms to be mailed on or before January 22^nd.

2. Why did I receive a Form 1099-R?

The Central Pension Fund is required by federal law to provide a Form 1099-R to anyone who received benefits during the tax year. This information is also provided to the IRS.

3. Why have I not received my Form 1099-R?

The Central Pension Fund mails the Form 1099-R to the home address we have on file. If you recently moved or changed your address and did not inform CPF of the change, you may not receive your Form 1099-R.

4. How do I get another copy of my Form 1099-R?

The Central Pension Fund will mail you a duplicate copy of your Form 1099-R upon your written request. You can request a copy beginning February 15^th. Please submit your request in writing to the Fund office at 4115 Chesapeake St, NW, Washington, DC 20016.  Upon notification of your address change, a reprint of your Form 1099-R will be issued.

5. Why is the amount on Box 1 of Form 1099-R different than the total amount of benefit checks I received?

The amount shown in Box 1 is the gross amount of your benefit payments before any deductions were taken, including amounts withheld from your benefit checks for federal taxes. The amount may also include any other deductions (e.g., child support payments or federal income tax levies) from your pension payments during the year. These deductions are not reported on the Form 1099-R.

6. Why did I receive more than one Form 1099-R?

The Central Pension Fund must report different types of benefit payments on different Forms 1099-R. If you received more than one type of benefit payment, CPF must print a separate Form 1099-R for each benefit type. The distribution code on Box 7 of your Form 1099-R identifies the type of benefit payment you received. For example, you may have received multiple Forms 1099-R if you:

• Received your own Central Pension Fund retirement or disability benefit and also a survivor or beneficiary benefit with respect to a former CPF plan participant.
• Received a disability benefit at the beginning of the year and then switched to a retirement benefit later in the year.
• Received a survivor benefit from a former Central Pension Fund plan participant and rolled over a portion of the benefit payment into an IRA.
• Received a Survivor Benefit annuity as well as a lump sum death benefit with respect to a former Central Pension Fund plan participant.

7. What do the different Distribution Codes mean (Box 7)?

Distribution Code 2—You received retirement benefit payments before the age of 59½.

Distribution Code 3—You received disability benefit payments.

Distribution Code 4—You received a survivor benefit from a former CPF plan participant.

Distribution Code 4A—You received a lump sum death benefit from a former CPF plan participant.

Distribution Code 4G—You received a survivor benefit from a former CPF plan participant and rolled over a portion or all of the distribution into an IRA.

Distribution Code 7—You received retirement benefit payments after the age of 59½.

8. What is the Percentage of Total Distribution (Box 9a)?

If a beneficiary benefit was paid to more than one beneficiary, the percentage you received is shown in Box 9a. This amount represents the percentage of the beneficiary benefit you received of a former CPF plan participant.

9. What do I do if I receive a corrected Form 1099-R?

You may be required to re-file your income tax returns for prior tax years if you used the original Form 1099-R from the Central Pension Fund. The IRS generally allows taxpayers to file amended tax returns for up to three years after the original due date of the return.

10. If my address is incorrect on my Form 1099-R can I get a corrected form?

No. An incorrect address does not require a corrected Form 1099-R. However, if you would like to make an address change, please download the appropriate form from the website and either mail or fax it to our office.

11. I believe the amounts reported on my Central Pension Fund issued Form 1099-R are incorrect. What should I do?

Please contact the Central Pension Fund by mail at Central Pension Fund, Participant Records Department, 4115 Chesapeake St, NW, Washington, DC 20016. Be sure to include your daytime telephone number, a copy of your Form 1099-R, and the reason you believe the amounts reported are incorrect.

We will review your Form 1099-R and, if necessary, issue a corrected Form 1099-R. If we determine that the original form was correct, we will contact you and provide an explanation.

12. Does the Central Pension Fund provide tax advice, such as the amount of taxes to withhold from my monthly benefit?

No. You should seek advice from a professional tax advisor or the IRS for specific information on any tax-related issues. You can reach the IRS by calling 1-800-829-1040 or by going online to www.irs.gov .

13. How do I change my federal tax withholding?

You may change your federal tax withholding election as often as you like, provided you do so in writing by completing CPF’s Tax Withholding form or by completing IRS Form W-4P. You can access the CPF form by clicking here: CPF Tax Withholding Form or the IRS form by clicking here: Form W-4P . Your election will stay in effect until you change it or revoke it.

14. Does the Central Pension Fund withhold state or local taxes?

No. The Central Pension Fund is not required to withhold state or local taxes. If your state or local tax authority requires that you pay taxes on your CPF benefits, you may need to make payments to them directly.  If you have questions regarding state or local taxes, please contact your state or local tax authorities.

15. Is the Central Pension Fund a qualified retirement plan?

Yes. The Fund provides retirement and related benefits for eligible employees of contributing employers. It is therefore a qualified retirement plan as defined in Section 401(a) of the Internal Revenue Tax Code.

Semi-Annual Participant Statements were mailed to active and deferred vested participants on October 18, 2019.  They cover the period January 1, 2019 through June 30, 2019.  These statements provide vested participants an estimate of their retirement benefit, and provide all participants with current service amounts and details on contributions and hours received from your employer(s).  Please review your Statement carefully and notify our office in writing if you find any discrepancies or suspect there are missing contributions.

If you change your address, please be sure to contact CPF so you can continue to get your Statements and other important documents.  Thank you for trusting the Central Pension Fund with your pension.

The Central Pension Fund will mail the 2019 Annual Funding Notice (AFN) to all plan participants on Friday, May 24, 2019. Please note, this notice was sent for informational purposes only and does not require any further action be taken.

The Summary of Material Modifications (SMM) discusses recent changes in the Fund’s Fiduciaries and Directory.

The notice can be viewed on the CPF website by clicking here: 2019 Annual Funding Notice.

The Summary of Material Modifications can be viewed by clicking here: 2019 Summary of Material Modifications.

Below are some of the most common questions we get from plan participants regarding the Annual Funding Notice.

AFN Explanation

The following pages present the Central Pension Fund’s 2019 Annual Funding Notice (AFN). This notice is sent for informational purposes only and does not require any further action to be taken. Below are some of the most common questions regarding the AFN:

1. Why am I getting the Annual Funding Notice?

Federal law requires that all pension plans distribute an AFN annually, in the exact format presented.

2. What is the Annual Funding Notice?

The Annual Funding Notice includes relevant information about the Fund, and provides a summary of federal rules governing insolvent multiemployer plans and benefit payments guaranteed by the Pension Benefit Guaranty Cooperation (PBGC), a federal agency.

3. Do I need to do anything with the Notice?

You do not need to do anything with the Notice. The AFN is sent for informational purposes only.

4. Does this Notice mean that my pension benefits will be terminated or that PBGC is taking over my benefit?

No. The description of the PBGC is provided for informational purposes only.

5. I am currently receiving a monthly payment. Will my benefit amount change?

No. If you are currently receiving benefits from the Plan, those benefits will continue unchanged.

6. I am currently not receiving a benefit, will my Accrued Benefit change? Will the

method of determining my benefit at commencement date change?

No. There is no impact on your accrued benefits. The AFN is sent for informational purposes only. It does not in any way change the way your benefits accrue under the Plan.

7. What is the Pension Benefit Guaranty Corporation (PBGC)?

The PBGC is a federal corporation created by federal law in 1974. Currently, it protects the pensions of nearly 40 million American workers and retirees in over 24,000 private single-employer and multiemployer defined benefit pension plans. For more information on PBGC, please visit their website: www.pbgc.gov

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In order to improve our communications with participants, we used a third-party locator service to provide the Fund Office address information for those participants for whom we did not have valid address information. Recently, a mailing was made to those participants requesting confirmation of their current mailing address.

If you received this mailing, we request your prompt written reply, so that we may update our records and continue to provide you with important information and future notices.

Please remember to advise our office of any future changes in your contact information or marital status, so your pension records can be accurate and up to date at the time of your retirement.

The 2019 Annual Participant Statements for the period ending December 31, 2018 were mailed out on Friday, April 19th. These Statements provide an estimate of your retirement benefit, current service amounts and details on contributions and hours received from your employer. Please review your Statement carefully and notify us in writing of any suspected errors. If you do not receive your Statement by May 6th, please notify our office in writing, providing your current mailing address, as well as either your CPF ID number or the last four digits of your Social Security Number.

Finally, should you move in the future please remember to submit a change of address form to our office. For your convenience, the form can be found on our website as a fillable PDF file which can be completed online and then printed out for mailing to our office.

All 1099-Rs were mailed on January 22, 2019. If you do not receive your 1099-R by February 15, 2019, please contact the Fund office. For your reference, below is a list of the Frequently Asked Questions relating to the 1099-R mailing.

1099-R Frequently Asked Questions:

1. When will I receive a Form 1099-R for filing taxes?

Forms 1099-R are mailed by January 31^st for benefits paid during the previous year.

2. Why did I receive a Form 1099-R?

The Central Pension Fund is required by federal law to provide a Form 1099-R to anyone who received benefits during the tax year. This information is also provided to the IRS.

3. Why have I not received my Form 1099-R?

The Central Pension Fund mails Form 1099-R to the home address we have on file. If you moved or changed your address and did not inform CPF of the change you may not receive your Form 1099-R.

4. How do I get another copy of my Form 1099-R?

The Central Pension Fund will mail you a copy of your Form 1099-R upon your request. You can request a copy beginning February 15^th. Please submit your request in writing to the Fund office at 4115 Chesapeake St, NW, Washington, DC 20016.

5. Why is the amount on Box 1 of Form 1099-R different than the total amount of benefit checks I have received?

The amount shown on Box 1 is the gross amount of your benefit payments. It includes amounts withheld from your benefit checks for federal taxes. It also includes some amounts paid on your behalf directly to alternate payees such as IRS levies and child support payments.

6. Why did I receive more than one Form 1099-R?

The Central Pension Fund must report different types of benefit payments on different Forms 1099-R. If you received more than one type of benefit payment, CPF must print a separate Form 1099-R for each type. The distribution code on Box 7 of your Form 1099-R identifies the type of benefit payment you received. For example, you may have received multiple Forms 1099-R if you:

• Received your own Central Pension Fund retirement or disability benefit and a survivor or beneficiary benefit from a former CPF plan participant.
• Received a disability benefit at the beginning of the year and then switched to a retirement benefit later in the year.
• Received a survivor benefit from a former Central Pension Fund plan participant and rolled over a portion of the benefit payment into an IRA.
• Received a Survivor Benefit and a lump sum death benefit from a former Central Pension Fund plan participant.

7. What do the different Distribution Codes mean (Box 7)?

Distribution Code 2—You received retirement benefit payments before the age of 59½.

Distribution Code 3—You received disability benefit payments.

Distribution Code 4—You received a survivor benefit from a former CPF plan participant.

Distribution Code 4A—You received a lump sum death benefit from a former CPF plan participant.

Distribution Code 4G—You received a survivor benefit from a former CPF plan participant and rolled over a portion or all of the distribution into an IRA.

Distribution Code 7—You received retirement benefit payments after the age of 59½.

8. What is the Percentage of Total Distribution (Box 9a)?

If a beneficiary benefit was paid to more than one beneficiary, the percentage you received is shown in Box 9a. This amount represents the percentage of the beneficiary benefit you received of a former CPF plan participant.

9. What do I do if I receive a corrected Form 1099-R?

You may be required to re-file your income tax returns for prior tax years if you used the original Form 1099-R from Central Pension Fund. The IRS generally allows taxpayers to file amended tax returns for up to three years after the original due date of the return.

10. If my address is incorrect on my Form 1099-R can I get a corrected form?

No. An incorrect address does not require a corrected Form 1099-R. However, if you would like to make an address change, please download the appropriate form from the website and either mail or fax it to our office.

11. I believe that the amounts reported on my Central Pension Fund issued Form 1099-R are incorrect. What should I do?

Please contact Central Pension Fund by mail at Central Pension Fund, Participant Records Department, 4115 Chesapeake St, NW, Washington, DC 20016. Be sure to include your daytime telephone number, a copy of your Form 1099-R and indicate the information you believe to be incorrect.

We will review your Form 1099-R and, if necessary, issue a corrected Form 1099-R. If we determine that the original form was correct we will contact you and provide an explanation.

12. Does the Central Pension Fund provide tax advice, such as the amount of taxes to withhold from my monthly benefit?

No. You should seek advice from a professional tax advisor or contact the IRS by calling 1-800-829-1040 or going online to www.irs.gov .

13. How do I change my federal tax withholding?

You may change your federal tax withholding election as often as you like, provided you do so in writing by completing CPF’s Tax Withholding form or by completing IRS Form W-4P. You can access the CPF form by clicking here: CPF Tax Withholding Form or the IRS form by clicking here: Form W-4P . Your election will stay in effect until you change it or revoke it.

14. Does the Central Pension Fund withhold state or local taxes?

No. The Central Pension Fund is not required to withhold state or local taxes. If your state or local tax authority requires that you pay taxes on your CPF benefits, you may need to make payments to them directly.  If you have questions regarding state or local taxes contact your state or local tax authorities.

15. Is the Central Pension Fund a qualified retirement plan?

Yes. The Fund provides retirement and related benefits for eligible employees of contributing employers. It is therefore a qualified retirement plan as defined in Section 401(a) of the Internal Revenue Tax Code.

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