Pension & Insurance

Pension tension: Figuring out when to lump it

More American workers are facing a critical question as they reach retirement: whether to take pension benefits as a single one-time cash payout, or as a lifetime stream of monthly payments.
Companies are increasingly giving retiring employees that choice, and pension consultants say that most retirees take the lump sum when they can. For many, however, a lump sum may not be the wisest choice. People may spend down the money or invest it poorly. And depending on their life expectancy, they may well reap a greater benefit by opting for lifetime monthly payments. more...

Finance 101
Health care Spending Account

All Cooper Tire factory employees have the opportunity to save 30-40% off their health care expenses in the coming year. These savings are possible by taking part in the Texarkana Health Care Spending Account plan. The form necessary for participation will be made available to employees before the end of the year. Last year, the enrollment form was attached to your paycheck/ pay stub during the month of December. more...

New FASB standard revamps pension accounting

By Emily Chasan

NEW YORK, Sept 29 (Reuters) - The Financial Accounting Standards Board, which sets U.S. accounting rules, on Friday issued a new standard for pension and other retiree benefit accounting that is likely to move billions in liabilities onto corporate balance sheets. more..

How much will your Pension be when you retire?

The Pension amount for Employee’s retiring on or after April 12, 2005 $54.50 Time (X) Your years and completed months of Credit Services

The Amount Retiring on or after March 2007- $55.50
The Amount Retiring on or after March 2008- $56.50
The Amount Retiring on or after March 2009- $57.50

Example of base pension Calculation

Age 65 with 20 Years of Credit Services Pension Amount = $54.50
20 Year's CS X $54.50 = $1,090 / month Base Pension

Example of early retirement- IMMEDIATE Pension Benefit

Age 57 20 Year's CS
Base Pension = $1,090 (as already shown)

Early Retirement Reduction: Retiring 5 years or 60 months before age 62

60 months X .004 = .24 reduction
.24 X $1,090 = $261.60
$1,090 - $261.60 = $828.40 Early Retirement Immediate Pension Benefit

Disability Supplement

Disability supplement (extra pay above pension amount until disability is approved by Social Security or age 62) capped at $1,000.00 per month effective 1-1-06

Sickness and Accident Benefit

The Company provides, at no cost to you, a Sickness and Accident Benefit when you are unable to work due to sickness or accident.

Eligibility

You will become eligible to receive benefits form this Plan when you have completed thirty (30) days of Continuous Service (CS), if you are actively at work on that date. Eligibility for benefits will stop should you cease employment with the Company.

Benefits

Once you are eligible for benefits, should you be unable to work due to sickness or an accident, you will be eligible to receive a benefit of three hundred eighty dollars($380.00) effective April 12, 2005; three hundred eighty-five dollars ($385.00) effective March 4, 2006; three hundred ninety dollars ($390.00) effective March 3, 2007; three hundred ninety-five dollars ($395.00) effective March 1, 2008; four hundred dollars ($400.00) effective March 7, 2009 for each week of your absence up to fifty-two (52) weeks.

• An accident or job related sickness, your benefit will start on the first day of your absence, or
• A disability resulting from outpatient surgery, your benefit will start on the day of outpatient surgery, or
• A sickness that is not job related and you are not hospitalized, your benefit will start on the eight (8th) day of your absence, or
• A sickness that is not job related and you are hospitalized, your benefit will start on the first day of your hospitalization.

Under certain conditions benefits that you receive form this Plan may be coordinated with Worker’s Compensation, and/or Social Security Benefits.

Your benefits from this Plan may be lost if you fail to complete the necessary claim form