Important updates on Local 393 Defined Contribution Plan loans and distributions

May 4, 2020

Dear 393 Members and Contractors,

During the coronavirus pandemic, we will be providing our members with updated information to help them navigate this crisis. This will be done via email blasts and communications posted on our website ( www.ualocal393.org ). Please make sure you have all of the pertinent information we have provided by reading the communications posted on our website beginning March 16, 2020.

Below are our latest updates:

I.     In response to temporary changes made to federal laws by the Cares Act, the UA Local 393 Benefit Fund has made temporary changes to the Defined Contribution Plan Loan Program. The basic changes are:

  1. Loan payments due from March 27, 2020, until December 31, 2020, may be deferred (temporarily suspended). Below are the consequences:
    • Interest is going to continue to accrue while your loan payments are deferred; and
    • Your loan payments will be recalculated to reflect the delay in payments and the interest that accrued.
  2. Available loan amounts have been temporarily increased to the lesser of $100,000 or 100% of the account balance. Normal limits are $50,000 or 50% of account balance.
  3. Plan participants requesting a loan deferment or applying for a loan need only self-certify they meet the below criteria.

You are eligible if you:

  • Have been diagnosed with the virus by a test approved by the CDC; or
  • Have a spouse or dependent who is diagnosed with the virus by a test approved by the CDC; or
  • Experience adverse financial consequences as a result of being quarantined; being furloughed or laid off or having work hours reduced; being unable to work due to lack of child care; or closure or reduced hours of their owned or operated personal business due to the virus; or other factors as determined by the Secretary of Treasury.

II.   The UA Local 393 Benefit Fund has mailed a “Cares Act Loans FAQ” document containing information on the changes made to the loan program to members. The “Cares Act Loans FAQ” document, the “Cares Act Loan Deferment” request, and the “Cares Act Loan Application” can all be downloaded by following the procedure below:

  1. Go to the UA Local 393 Benefits website: www.ualocal393benefits.org – *A login is not required to access the documents*

  2. Click on Documents from the Home page and select Defined Contribution from the dropdown menu.

  3. Click the “Cares Act Loans FAQ” document in the “Defined Contributions Recent Mailings” folder to download it.

  4. Click the “Cares Act Loans Deferment” document in the “Defined Contributions Forms” folder to download it.

  5. Click the “Cares Act Loan Application” document in the “Defined Contributions Forms” folder to download it.

  6. The loan application and deferment request must be filled out and sent to Benesys:

    1. Email the documents to pensiondcapps@ualocal393benefits.org
    2. Fax the documents to this number: (408) 493-0232
    3. Mail the documents to this address:

      4. UA LOCAL 393 BENEFIT FUNDS
      PO BOX 2460
      SAN JOSE CA 95109-2460

  7. If you have any questions on this process, you can call Benesys Monday-Friday from 8am to 4pm at (408) 588-3751.

III.   In response to temporary changes made to federal laws by the Cares Act, the UA Local 393 Benefit Fund has made temporary changes to the Defined Contribution Plan Distribution Program. Before the Cares Act, the Federal Government required a strict set of criteria be met before a distribution was allowed. The basic changes are:

  1. Distribution amounts up to $50,000.
  2. Plan participants requesting distribution need only need self-certify they meet the below criteria:

    3.  You are eligible if you:

    • Have been diagnosed with the virus by a test approved by the CDC; or
    • Have a spouse or dependent who is diagnosed with the virus by a test approved by the CDC; or
    • Experience adverse financial consequences as a result of being quarantined; being furloughed or laid off or having work hours reduced; being unable to work due to lack of child care; or closure or reduced hours of their owned or operated personal business due to the virus; or other factors as determined by the Secretary of Treasury.
    • Additional documentation is not required.

IV. The UA Local 393 Benefit Fund has mailed a “Cares Act Distribution FAQ” document containing information on the changes made to the distribution program to members. The “Cares Act Distribution FAQ” document and the “Cares Act Distribution Application” can be downloaded by following the procedure below:

  1. Go to UA Local 393 Benefits website: www.ualocal393benefits.org – *A login is not required to access the documents*

  2. Click the “Cares Act Distributions FAQ” document in the “Defined Contributions Recent Mailings” folder to download it.

  3. Click the “Cares Act Distribution Application” document in the “Defined Contributions Forms” folder to download it.

  4. The distribution application must be filled out and sent to Benesys:

    1. Email the documents to pensiondcapps@ualocal393benefits.org
    2. Fax the documents to this number: (408) 493-0232
    3. Mail the documents to this address:

      4. UA LOCAL 393 BENEFIT FUNDS
      PO BOX 2460
      SAN JOSE CA 95109-2460

  5. If you have any questions on this process, you can call Benesys Monday-Friday from 8am to 4pm at (408) 588-3751.

Note: You must choose between taking a loan or taking a distribution. You cannot take both.

In an effort to address concerns regarding COVID-19, UA Local Union 393 will do our best to keep everyone updated.

In Solidarity,

Steve Flores
Business Manager