Edison Pension Trust

Transcription

1 Edison Pension Trust Ryan Stephens, Senior Vice President The William C. Earhart Company Inc. Your contact Donna or (503)

2 Board Of Trustees Plan Sponsor/ Governing Body Union Representatives and Employer Representatives are the Trustees Plan Professionals Actuary, Attorney, Administrator, Auditor, Investment Manager, Investment Consultant, etc Who makes the Rules? Board of Trustees with guidance from Plan Professionals

3 Defined Benefit Plan Employer Contribution per Hour- as part of wage package in CBA Requires Vesting for benefit Eligibility based on Hours Pays a Monthly Lifetime Benefit once vested Benefit amount based on contributions to the Plan X Accrual Rate/Factor Plan Year is Calendar Year January - December

4 Vested Benefits (1970 & 2011 Plan) 5 Years Credited Service= 100%Vested Under 5 = 0% Vested 100% Vested = Benefit Eligibility 10 years Credited Service for Early Retirement (w/reductions) Forfeiture of Benefit w/ Permanent Break in Service (5 year break prior to Vesting)

5 Vested Benefits (Cont.) Yearly Credit- 1000hrs or more = 1 year(s) Credited Service Reciprocal Credit Partial credit- Under 300 = 0 year(s) hours = partial credit. Example 300 hrs = 30% 400hrs = 40% 500hrs = 50% 600hrs = 60% etc..

6 Types of Retirement Early Retirement Normal Retirement Disability Retirement Death Benefits- pre & post retirement

7 Benefit Accrual (1970) Contributions through 12/2000 at 4.5% Example- $5000contribs = $225 Accrual Contributions from 1/2001 through 4/2003 at 4.1% Example- $5000contribs = $205 Accrual Accrual Factor of 2.5% for Contributions 5/2003 and through 12/31/2006 Example- $5000contribs = $125 Accrual Accrual Factor of 2.0% for Contributions 1/2007 through 12/08 Example- $5000contribs = $100 Accrual Accrual Factor of 1.0% for Contributions 1/2009 forward Example- $5000contribs = $50 Accrual

8 Benefit Accrual- example (1970) Hours $10,000 Contributions = $ Hours $10,000 Contributions = $ Hours $10,000 Contributions = $ Hours $10,000 Contributions = $ Hours $10,000 Contributions = $ Hours $10,000 Contributions = $ Hours $10,000 Contributions = $ Hours $10,000 Contributions = $ Hours $10,800 Contributions = $ Hours $12,400 Contributions = $ 124 Normal Monthly Benefit =$1,382 at age 65 *It takes around 6.25 years in retirement benefits to be paid the amount of principle contribution to the Plan.

9 Benefit Accrual (2011 Plan) Accrual Factor of 1.0% for Contributions 1/2011 forward Example- $5000contribs = $50 Accrual Accrual Factor increase with Years of Service - Years 5 thru 10 at 1.066% Years of Continuous Credited Service at End of Year Benefit Percentage Factor Applied for the Year Up to % % % % % More than %

10 Benefit Accrual- example (2011) Hours $10,800 Contributions = $ Hours $12,400 Contributions = $ Hours $12,400 Contributions = $ Hours $12,400 Contributions = $ Hours $12,400 Contributions = $ Hours $13,000 Contributions = $ Hours $13,000 Contributions = $ Hours $13,000 Contributions = $ Hours $13,000 Contributions = $ Hours $13,000 Contributions = $ Normal Monthly Benefit =$1, at age 65 * Takes approximately 8 years in retirement to be paid all principle contributions made to the Plan. Average payout to Edison Retirees is just over 17.5 years for age 65 Retiree and 25.5 years at 55.

11 Benefit Reduction for Early Retirement (Active) (1970) From age 62 back to 55 at.25% per month or 3.0% per year Example- 79% of full benefit at age 55, 82% at age 56, with 100% of benefits at age 62. No Reduction at age 60 with over 25 years of combined credited and supportive service Example- 79% of full benefit at age 55, 91% at age 59, with 100% of benefits at age 60 or older.

12 Benefit Reduction for Early Retirement (Inactive)(1970) From age 65 back to 55 at.25% per month or 3.0% per year Example- 70% of full benefit at age 55, 73% at age 56, with 100% of benefits at age 65. New Reduction Factor for Inactive participantsfor benefits accrued after 12/03 Example % of full benefit at age 55, 75.9% at age 62, with 100% of benefits at age 65.

13 Benefit Reduction (2011 Plan) for Early Retirement Reduction Factor for Inactive participantsfor benefits accrued after 7/ % of full benefit at age 55, 75.9% at age 62, with 100% of benefits at age 65. Example - $1,000 benefits at age 65 would be reduced to $ per month if retired at age 55 If retired at age 62, that benefit would be $ per month.

14 Benefit Options at Retirement (1970 &2011) 50% or 75% or 100% Joint and Surviving Spousal benefit or other non-spouse beneficiary J&S option (50%, 75% or 100% J&S) J&S option w/ pop-up provision (50%, 75% or 100% J&S) Life Annuity benefit options 60 Month Certain and Life Annuity (normal form) 120 Month Certain and Life Annuity Straight Life Annuity

15 Working After Retirement Normal Suspension of Benefits- 55 thru 64 Limited Provision for Retirees from Aug Dec 2013 (must meet rule of 80 or age 62 w/ >25,000 hours) Electrical Instructor Electrical Inspector After Age 65

16 Pension Funding Zone Status- Green, Yellow ( Endangered) Red (Critical) Limited Pension Relief Election Contributions and Investment Income How to stay in the Green Zone?

17 ANNUAL STATEMENTS Review each year Confirm Hours Confirm Contributions

18 Work Up and Approval *Recommended to Start process 90 days prior to retirement date by requesting application packet and return 60 days prior to retirement date. Get Application Approved By Review Committee Final Hours Confirmed All Benefit Forms Complete Adjust for Final Contributions Work up and Pay Benefits

19 Miscellaneous Taxable income Estimates can be done Written notification Address Beneficiary Designation Name Changes Misc. QUESTIONS???