New Flier Helps Employees Evaluate RS Plan Decisions
A new flier, “The Answers You Need: Weighing Your RS Plan Payment Options” can help you answer employees’ questions about factors they should consider before requesting Retirement Security (RS) Plan benefits.
As your employees review their 2014 RS Plan annual statements, they may have questions about how RS Plan benefits are calculated and why estimated benefit amounts may change from year to year. This flier answers those questions, and it also reminds prospective retirees to consider their broader financial picture before making final retirement decisions.
This chart, included in “RS Plan: 2014 PBGC, GATT and PPA Rates Issued” in the December 18, 2013 issue of I&FS Weekly, displays the interest rates affecting RS Plan lump sum payments in 2014:
| Rate | 2013 | 2014 |
| PBGC | 0.75% | 1.75% |
| GATT | 2.80% | 3.80% |
| PPA Segment 1 (payment in first 5 years) |
0.97% | 1.19% |
| PPA Segment 2 (payment in next 15 years) |
3.50% | 4.53% |
| PPA Segment 3 (payment out further than 20 years) |
4.60% | 5.66% |
The December 18 article also explains in greater detail what the different rates are based on, and how they might affect RS Plan lump sums.
A similar flier, “The Answers You Need: Lump Sum Estimates,” was provided in the October 16, 2013, issue of I&FS Weekly. That flier was designed specifically to help prospective retirees in late 2013 to understand the impact of interest rates changes on lump sum values between 2013 and 2014. In addition, the featured story in the winter/spring 2014 issue of Financial Power, “Four Things to Consider Before Taking a Lump Sum”, offered participants an in-depth look at important factors in determining how and when to take distributions from their RS Plan benefit.
However, “Weighing Your RS Plan Payment Options” can be distributed anytime to employees who are beginning to consider when to retire and how to receive their RS Plan benefit. The flier also directs participants with questions to contact their benefits administrator for a benefit projection to get the most accurate estimate available, along with all the payout options available to them.
Employees who would like more specific help or guidance making retirement benefit decisions can call the Personal Investment & Retirement Consulting team at 1.866.673.2299 (option 5, then 2).