Why is it important to be vested?

Here are two reasons why:

1. Once you are Vested you have a right to a benefit from NEAP and you cannot lose that right.

2. If you do not become Vested, the contributions made on your behalf are not credited to your individual account.

Vesting

You are considered Vested when you have worked 160 hours in covered employment during the period beginning with your first day of covered employment and ending on December 31 of the following year.

Building Your Benefit

As a participant in NEAP, you are assigned an individual account. The balance of your individual account is the total of contributions received and adjustments due to NEAP's investment performance. Your benefit amount is based upon the balance in your individual account at the time your application is approved.

Each month covered employers make contributions to NEAP on behalf of employees who are covered by either:

• A collective bargaining agreement with the International Brotherhood of Electrical Workers (IBEW) or one of its local unions, or
• A signed participation agreement with NEAP.

In addition to contributions made by your employer, NEAP may also accept other contributions in the form of rollover contributions, asset transfers and Reciprocal Transfers from other qualified plans.

Covered employers are required to contribute at least twenty-five cents (.25) per hour for each hour worked in covered employment. The collective bargaining agreement or participation agreement signed by your employer determines the amount your employer contributes to NEAP on your behalf.

All contributions to NEAP are made by covered employers. Covered employees do not themselves make contributions to NEAP. However, rollover contributions approved by NEAP may be added into the balance of your Individual Account.