Tax time is nearly here, and in March, the DC 37 Annuity Fund will be sending two mailings of significance to retirees that are IRS related.

One mailing will go to retired Annuity Fund participants who are age 69. Under IRS law, they must decide whether or not to roll their fund distribution into an IRA or a qualified retirement plan that accepts rollovers.

The mailing will include a form on which they can elect to rollover all or part of their distribution or accept payment of their distribution without rolling it over (subject to 20 percent federal income taxes).

“Retirees must make a decision and return completed forms to the Annuity Fund as soon as possible,” said Rosyln Yasser, administrator of the DC 37 Health and Security Plan. “Otherwise, the Annuity Fund will be obligated under IRS law to make a decision on their behalf.”

The Annuity Fund will also mail distribution checks to retired participants age 70 _ and over. This mandatory distribution is subject to withholding tax for calendar year 2001. In 2002, these participants will be sent a 1099 Form listing the withheld amount; the forms should be shared with their tax advisor. Participants age 70 _ and older who are still working are not required to receive their Annuity Fund distribution until they retire.

Retirees who have questions about these matters can call the Annuity Fund at (212) 815-1888.

Meanwhile, several other issues have arisen since the Annuity Fund began operation last year. Answers to the most common questions follow.

ANSWERS TO YOUR QUESTIONS

Should I call the bank where my Annuity Fund money is held for updated information?
No. The bank holds members’ accounts but has no authority to respond to inquiries.
Only the DC 37 Annuity Fund at (212) 815-1888 is authorized to answer your questions and assist you with reports on your funds.
The Annuity Fund staff is currently working with the bank to streamline procedures and speed up this reporting process.

How can I help expedite receipt of my disbursement if I leave city service?
The Fund must contact your former employer to verify that you have left city service before making a disbursement. Sometimes this can take longer than participants’ would like, especially at larger agencies. Some participants work with Fund staff to speed the process by helping obtain completed forms from their former employers.

Must I take a distribution of my annuity money if I transfer to another contributing employer or stay with my current employer in a non-DC 37 title?
In most cases, you may leave your money in the Annuity Fund, where it will continue to grow. If you are promoted to a non-represented title, your money must remain in the Fund, since that event does not qualify for distribution. However, if you transfer from a DC 37 title to a title covered by another union or another DC 37 local with its own qualified plan, you can roll over your Annuity Fund balance to your new union’s plan. Contact your new union’s fund for details on how to proceed.