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Pension Plan-Market Volatility
Local 52 Pension Plan
Information for VESTED Participants

What to do in this uncertain time.  

There is no one-size-fits-all answer for how to respond to an event such as coronavirus. If you’re a younger investor who is saving and investing for a distant goal, such as retirement, the best action to take may be no action at all. If you’ve built a portfolio that matches your time horizon and risk tolerance, and you don’t expect to need money from it anytime soon, it’s usually best to stick to the investing plan you developed when markets were calm. 

However, if you’re in a position where you must sell stocks—for instance, if you’re retired and relying on your portfolio to fund your lifestyle right now—there are steps you can take to minimize the negative impact of selling in a down market.

Meanwhile, if you’re nearing retirement, having a financial plan is more important than ever. It’s vital at this stage to understand how much risk you can stomach, both emotionally and financially, in any market environment.  That is why the Local 52 Pension Plan employs investment advisors and retirement companies to assist our Participants with making these long-term decisions.  Please read the article below from the Local 52 Plan Advisor, Greg Fiore and the attached article concerning market volatility.  We hope this will help ease some of your concerns. 

Message from Greg Fiore, Clearview Advisory (Advisor for the Local 52 Pension Plan):

“Three months ago, most of us didn’t know what a coronavirus was. Now it’s impacting all of our daily lives. That likely includes your retirement account. Like you, we don’t know what is coming next. We do know there is so much uncertainty that markets don’t know how to price in the economic impact yet. This doesn’t necessarily mean that you should sell your stock allocation and run to “cash” (what we typically refer to as money market or stable value).

The exact decrease to-date will depend on how your money is invested. While allocations in stocks may see larger drops, money invested in bonds may have less of a change in value.

While market volatility is a normal part of investing, our Clearview Advisory team knows that in significantly volatile times like this, it can be very difficult to withstand large dips in your account balance. We are investors too. It can be tempting to make changes out of fear without considering the long-term impact to your retirement savings.

How you invest your retirement savings is personal to you because each investor’s situation is unique. However, as an industry, we have agreed that there are certain stock/bond allocations that are appropriate according to an investor’s age. For example, younger employees with more time before retirement may find it appropriate to invest more heavily in stocks because over time, stocks have outperformed bonds and younger investors need their savings to keep pace with inflation. Meanwhile, a participant at age 65 will likely have a more 50/50 mix of stocks and bonds to blend growth with protection.


If you have any additional questions regarding market volatility or need investment advice, please contact Greg Fiore at 404-477-0593.

You may also contact Charles Schwab to discuss your account and receive market updates. 

Charles Schwab Customer service 1-800-724-7526 or www.workplace.schwab.com.

Important Disclosures:

The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.

 
Pension

Effective January 1, 2020, the pension contribution rate is $5.75 per hour.

Please review the Questions & Answers and Enrollment documents listed to the right for additional information.

You may access your account (make investment changes, check your balance, print statements) by contacting Charles Schwab Retirement Services.

Local 52 Pension Plan Office
PO Box 211105
Montgomery, AL 36121-1105
334-272-0240 ext. 5
Contact: Kay Pinckard

For information related to the National Pension Fund, please contact the fund office at 1-800-638-7442. The current national pension fund rate is $1.55 per hour.

The Million Dollar Question: How Do I Invest My Retirement Savings?

Trying to choose the investment options that are right for you may seem difficult. That’s why the Plan has retained the services of a registered investment consultant to assist you in making crucial investment decisions.

Please contact Greg Fiore at 1-404-477-0593, for assistance with investment and retirement options.

Pension Enrollment Information

A defined contribution pension plan is a valuable benefit program. By offering this plan, Local 52 is making a commitment to help you plan for your future.

After becoming a Vested Participant, an account is established in your name, exclusively for your benefit. Employers then make contributions to the Plan on your behalf. As a Vested Participant of the Plan, you will have 100% interest in your account.

The Plan is self-directed, so you determine how the contributions are invested and may change your investment choices any business day.

There are big tax advantages. Unlike interest earnings on a regular savings account, which are taxed annually, your investment earnings continue to grow without an annual tax bite until you withdraw your money. This is called tax-deferred compounding and over time, it can make a big difference in the amount of money you accumulate for retirement. So you can consider the contributions made to your account as a tax-deferred bonus.

The Million Dollar Question: How Do I Invest My Retirement Savings? Trying to choose the investment options that are right for you may seem difficult. That’s why the Plan has retained the services of a registered investment consultant to assist you in making crucial investment decisions. You may contact Greg Fiore at 1-404-477-0593, for assistance with investment and retirement options.

What happens if I do not submit investment selections? If you do not provide investment selections, any contributions made to your account will automatically be invested into a default account selected by the Plan Trustees. This is typically the most conservative investment option in the Plan, like a money market mutual fund, stable value investment option or an age based investment. Please contact the Plan Consultant for more information about the plan’s default option.

How can I change the investment elections for my account? You are permitted to change the asset allocation of your existing account balances and/or the investment election for future contributions at anytime. If you wish to change both the asset allocation for your existing account balance and change the investment directions for future contributions, separate requests must be submitted. Please contact Participant Services at 1-800-724-7526 or log on to workplace.schwab.com to make changes.

When am I eliglbe to withdraw funds? Under the current Plan provisions, to qualify for withdrawal, you must meet one of the following options:(1) Normal retirement age 62; (2) Early retirement age 60; (3) Early-Out Provision - age 55 with 25 years of continuous service; (4) Disability - at any age upon receipt of Social Security Disability Award Letter.; (5)Terminated participants - one year after the termination date.

 For specific questions related to the Plan, please see the Summary Plan Description or call 334-272-0240.

The Plan is intended to be an ERISA Section 404(c) plan. This simply means that you “exercise control” over some or all of the investments in your Plan account. The fiduciaries of the Plan may be relieved of liability, or responsibility, for any losses that you may experience as a direct result of your investment decisions.


 


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    April 11, 2020 (All Day)
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