September 19, 2017
NEW PROCEDURE FOR
CHANGING EMPLOYEES’ DEFERRAL PERCENTAGES
Starting January 1, 2018, your employees must follow a new procedure to change their elective contribution rates to the 401(k) Plan.
Beginning that date, employees will give you signed Deferral Authorizations stating their new contribution percentages. A sample Deferral Authorization is attached. Zenith American Solutions will no longer notify you when employees change their contribution percentages. As before, your company must change the employee’s contribution percentage as soon as it is administratively feasible. Changes in deferral percentages can be made no more than once per calendar quarter. A completed Deferral Authorization is the only document that can be used to authorize or change an employee’s deferral percentage.
If a current employee does not give you a signed Deferral Authorization, you must continue to deduct the same percentage contribution as you deducted before January 1, 2018. If a new employee fails to give you a signed Deferral Authorization, you must not deduct any contributions from the employee’s wages; the employee’s deferral percentage is considered 0%.
Starting January 1, your employees are the only persons responsible to give you signed Deferral Authorizations. It is not your responsibility to find out an employee’s deferral percentage from Zenith, Principal, IATSE Local 33, or any other source.
An employee’s contribution election will remain in effect until his or her employment ends, or until the employee provides you with a new Deferral Authorization (which can be done only once in any calendar quarter). The employee is not required to fill out any other deferred salary agreement form or wage deduction authorization. You must rely on this authorization as the employee’s authorization to deduct the percentage stated in the Deferral Authorization and to remit the amount deducted to the Plan.
- The new procedure will be the only way to change contribution percentages beginning January 1. The old form will no longer be used.
- An employee cannot modify the Deferral Authorization by, for example, erasing the deferral percentage printed on the document and writing in a new one. You cannot honor a Deferral Authorization that appears to have been altered in any way. The only handwriting on the document should be the employee’s signature.
- As noted above, employees may change their deferral percentages no more often than once per calendar quarter.
Please call Ann Winfrey at the Trust Office if you have any questions. She can be reached at (626) 732-2633.
Board of Trustees
IATSE Local 33 Section 401(k) Plan