If a group is represented for the purpose of collective bargaining by a lodge chartered by the International Association of Machinists and Aerospace Workers (I.A.M.) and their employer is accepted, in writing, as a contributing employer by the Board of Trustees, they may participate.
Employees of the union and certain union-affiliated organizations may also participate if their employer has signed a special participation agreement.
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The IAM National 401(k) Plan is a defined contribution (DC) plan. It is administered by the IAM National 401(k) Fund Trustees. John Hancock is the plan's recordkeeper and they manage the investment products offered to participants.
The IAM National 401(k) Plan accepts employee contributions and employer contributions when required under a collective bargaining or special participation agreement.
In addition to the other benefits of the plan, it's important to understand that the IAM National 401(k) Plan has a negotiable automatic enrollment feature option.
If an agreement calls for automatic enrollment, employees have 60 days to opt out of participation, following receipt of an enrollment kit, which explains how the plan works, the benefits of participating, and the procedures for opting out. If an employee notified of automatic enrollment does not opt out within the specified time period, his employer will be notified to defer 3% of wages (or other negotiated percentage) to the plan every pay period.
The bargaining parties must sign the IAM National 401(k) Plan Standard Contract Language without alteration. If you need assistance, please contact the Fund's Education and Employer Services Department (click here) or 202-785-2658.
After negotiating to participate in the IAM National 401(k) Plan, if the group previously participated in a company-sponsored 401(k) plan and is interested in a merger or transfer of assets into the IAM National 401(k) Plan, contact the Fund’s Education and Employer Services Department.
A merger or transfer of assets is beneficial because:
- No new money will be going into the old account.
- Employees will have one place to manage both accounts.
- If the employee is still working for the employer, individual rollovers are prohibited in most cases (they are considered a distribution).
If the parties are interested in a merger or transfer of assets, the Benefit Fund Office sends a letter (PDF) to the employer outlining the documents necessary to determine if the transfer is feasible. The Benefit Fund Office studies the plan to confirm that the prior plan is qualified. The Benefit Fund Office also determines if there are any unique benefits under the old plan that are protected and must be provided under the IAM National 401(k) Plan.
Once all of the documentation is reviewed and a merger or transfer of assets is deemed feasible, a recommendation would then be made to the Board of Trustees. If accepted, an Asset Transfer Agreement would need to be agreed upon between the existing plan and the IAM National 401(k) Plan prior to the recordkeeper facilitating the transfer.
When the IAM National 401(k) Plan is being voted on for the first time during a contract ratification meeting and includes negotiated automatic enrollment, be sure to distribute the Ratification Flyer (click here to download PDF) to employees so they are pre-notified of the plan's enrollment procedures and will know to look out for the plan's enrollment kit.
John Hancock vs. the IAM National 401(k)Fund
The IAM National 401(k) Fund Trustees are the 401(k) Plan's administrator, and are responsible for setting policy and ultimate administration of the plan.
John Hancock is the plan's recordkeeper, and employees enroll, opt-out, decide on their investment elections, make investment or contribution changes, designate beneficiaries, etc., by contacting John Hancock.
To contact John Hancock, participants may call 800-294-3575.