IBEW Local Unions Savings & Security Plan
The IBEW Local Unions Savings & Security Plan is a Qualified Retirement Plan first adopted by AT&T in 1979 and by the Bell regional companies in 1984. The plan is exclusively available to IBEW members and staff who work for employers that have adopted the Plan. It’s versatile design allows the IBEW Local Savings & Security Plan to function as a 401(k) plan for accumulating retirement assets, and also as a vehicle for lump sum pension and 401(k) rollovers at retirement.
IBEW Locals from Maine to Hawaii use the IBEW Local Unions Savings & Security Plan as the 401(k) plan for Local Union officers and staff. IBEW Local Unions have also negotiated with employers to offer the Plan to members.
IBEW members who work for Verizon and AT&T (and their successors) can take advantage of the Plan’s features and benefits by rolling over their lump sum pension and 401(k) at retirement. In-service rollovers from company 401(k) plans may also be available.
Some of the Plan’s Features and Benefits include:
Retire at Age 55
If you retire at age 55 or older, you can withdraw your money from the Plan with no IRS restrictions or penalties. This feature is not available in a broker IRA in which you must be 59 1/2 before you can withdraw money without penalty or restrictions.
Lower Fees
We select only no-load investments so you will never pay a sales charge or withdrawal fee. The Plan gives you access to lower-cost institutional share classes as well as Vanguard’s AdmiralTM Shares. To see the impact of higher fees over time, see Why Expenses Matter.
Diversified Investment Options
As independent investment advisors, we are free to select investments objectively based on their merits. We select funds that cover various asset classes to enable participants to own a diversified portfolio of investments.
Stable Value Fund
The Plan offers the benefit of a Stable Value Fund that provides the higher yield of a bond fund with the reduced risk of a money market fund, combining the advantages of both. A Stable Value Fund seeks to preserve your principal investment and generate a stable rate of return making it an ideal choice for a retirement account. Most broker IRA accounts offer fixed income products that either include a money market fund, which usually doesn’t provide a substantial return on your investments, or a bond fund, which can be volatile and fluctuate in value.
Borrow From Your Plan
If you ever need to borrow money for any reason, you can take a tax-fee loan from your Plan account, without IRS penalty. This valuable feature is not available in Broker IRAs.
Experience With IBEW Members and Their Retirement Needs
Scarborough’s long-standing history of working with IBEW members has given us the expertise regarding their retirement needs. We offer retirement planning workshops and personalized retirement planning services.
For more information, please contact Scarborough at (800) 223-7608.
An investment in the Stable Value Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any federal agency. Stable Value Fund benefits are subject to the claims paying ability of the underlying assets and wrap providers of the Stable Value Fund and while the portfolio seeks to provide a stable unit price, it is possible to lose money.