Wide | Narrow

San Diego Electrical Annuity Plan

Attention: open in a new window. PDFPrint

Benefits Under the Plan

Loan Policy. Loans can be taken from the plan for any reason. The minimum loan amount is $1,000; the maximum loan amount is the lesser of ½ of the balance of your account as of the last valuation date or $50,000. There is a $25 fee for processing a loan.

  • A participant may only have one loan outstanding at a time;
  • The interest rate shall be the prime rate plus 1% (determined at the time the loan is taken); and,
  • Repayment shall be monthly over a period of not more than 5 years, unless the loans is being used for the purchase of a home.

Application for Loan

Distribution Policy

Distributions from your account are not permitted before age 59½, except in the event of: (a) death; (b) disability; (c) termination of employment; or (d) retirement at 55 or older. Your contributions and investment earnings are available for distribution following termination of employment and filing an application. If you are younger than 55 at the time of distribution, a 10% excise tax penalty may apply depending on the form in which your account balance is paid to you.

You may choose to have your distribution made in the form of a ROLLOVER. A rollover is a payment of your benefits to your individual retirement arrangement (IRA) or to another qualified plan. If you choose a direct rollover, your payment will not be taxed in the current year and no income tax will be withheld. Your payment will be taxed later, when you take it out of the IRA or qualified plan.

Application for Distribution

Hardship Distributions

You may be eligible for a hardship distribution if the withdrawal is to pay for medical bills, prevent the foreclosure of or purchase of a primary residence, or to pay for college tuition. Under a hardship distribution, you may withdraw no more than one-half of your vested account, only to the extent and in the amount necessary to relieve the hardship. If a hardship withdrawal as defined above is made, all voluntary employee contributions to the Plan, will be suspended for six months after receipt of the hardship distribution. You should contact the Plan Administrator to discuss a hardship distribution prior to applying.

Special Tax Notice

These legally required notices contain important information about benefits payable from your Plan. The notices are general in nature, and some of the notices may not apply to your Plan or the type of distribution you have requested from your Plan.

Download the Special Tax Notice (Form MEGA).