Retirement Seminar
Today’s topics
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5 simple financial strategies.
Preparing for retirement.
Plan considerations when you retire.
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Leave the money in your Plan account.
Withdraw your account.
Taxes.
Direct rollovers.
Distribution options.
Loans.
Beneficiary information.
Accessing your account.
Benefit statement.
Questions and answers.
Strategy #1
Do a reality check on your spending
Track your cash and credit spending for a month
or two (or three):
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Using an online budgeting program or personal financial software.
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By collecting all your receipts – including ATM/debit slips –
in a large envelope.
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To see how much you spend on nonessential or impulse items.
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So you’ll be better able to strategize on which expenses you can
cut back on.
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Strategy #2
Take control of your credit
Eliminate or reduce your credit card debt by:
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Paying off highest-interest cards first.
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When a card is paid in full, applying its monthly payment to the
balance with the next highest interest rate.
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Alternate method, is known as debt snowball. Pay off the smallest
balance first, ordering your debt, smallest to largest.
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Canceling cards with annual fees, or seeing if they are able
to eliminate the annual fee (do so carefully, as canceling cards
can impact your credit score).
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Paying balances in full each month.
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Paying cash when possible.
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Strategy #2 (cont.)
Take control of your credit
Keep your credit healthy.
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Request a free annual credit report from Experian, Equifax,
and TransUnion.
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Review credit report for any mistakes and correct any
mistakes found.
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Prevent identity theft and review credit card charges
frequently to ensure no foreign charges have occurred.
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Strategy #3
Formalize your financial goals
Writing down your savings goals can help you:
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Resist the urge to splurge by understanding
the future payoff.
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Save with greater discipline and enthusiasm.
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Actually achieve those goals instead of hoping
they’ll happen “somehow.”
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Strategy #4
Plan for unexpected surprises
An emergency fund:
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Generally should cover 6–8 months of living expenses.
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Consists of cash for quick access  typically in a bank or money
market account.
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Can provide some protection from unforeseen medical bills.
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Can take time to build, so keep at it.
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Strategy #5
Accelerate your mortgage payments
By paying a little extra on your mortgage
each month, you can:
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Pay off your mortgage in significantly less time.
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Give less of your money to your mortgage company and
keep more for yourself.
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Make mortgage payments every two weeks.
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Refinance to a lower interest rate.
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Preparing for retirement – understand
the risks
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Longevity.
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Rising prices.
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Social Security.
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Plan considerations when you retire
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Leave the money in your Plan account:
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Balances greater than $1,000 can remain in the Plan.
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Tax-deferred compounding continues.
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No taxes or IRS penalties.
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Consistent service experience.
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No action required on your part.
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Plan considerations when you retire
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Withdrawing your Plan account:
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If you retire at or after age 55, or after becoming totally
disabled, you are eligible to withdraw your Plan balance
upon retirement.
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Your “required distribution date” for all purposes of the
Plan is the 1st of April following the calendar year in which
you reach age 70½, or your retirement date.
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There are optional forms of benefit payments.
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Plan considerations when you retire
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Taxes:
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Once you receive benefits from the Plan, those benefits are
normally considered taxable income. A member will receive
a 1099 Form for each year they receive any distribution
from their Plan account.
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Distributions are taxable because the employer
contributions and interest earned before distribution were
not taxed as personal income to you when they were
credited to your account. Upon withdrawal, distributions are
normally considered taxable.
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Plan considerations when you retire
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Direct rollovers:
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Your account balance will
be “rolled over” to another
employer’s qualified retirement
plan or a tax-deferred IRA with a
bank or other financial institution
of your choice.
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No taxes are withheld on
a direct rollover.
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Plan considerations when you retire
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Lump-sum distributions:
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Your account balance, less an automatic 20% mandatory
federal withholding tax.
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You will receive a 1099, and these monies are normally
considered taxable for income tax purposes.
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Plan considerations when you retire
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Installment distributions:
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Monthly, quarterly, annually.
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Over 10, 15, or 20 years.
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You will receive a 1099 each year, and these
monies are normally considered taxable for income
tax purposes.
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Plan considerations when you retire
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NEW Partial Distribution Option – July 1, 2014
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Limit of 1 distribution per lifetime
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Minimum amount of $5,000
Plan considerations when you retire
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Qualified annuity distributions:
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If you are married, a monthly payment for your lifetime
and upon your death, a monthly payment during your
spouse’s lifetime.
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If you are not married, a monthly payment for
your lifetime.
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The entire amount of your account will be used
to purchase from an insurance company a
nonforfeitable and nontransferable “qualified annuity.”
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Plan considerations when you retire
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Other key points about distributions:
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A member who chooses installments may change that
option and take a lump-sum distribution at any time.
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Installment payments are not considered an eligible
rollover distribution.
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At the time of selecting a distribution option, a member
may opt for a direct rollover for part of the account
balance and take the remainder as a lump-sum
distribution.
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Plan considerations when you retire
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Early withdrawal penalty:
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If you withdraw your account prior to reaching age
55 and are not disabled, you may be liable for a 10%
early withdrawal penalty imposed by the IRS.
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If your spouse, as a retired or disabled retiree’s
beneficiary, receives the remainder of your account
prior to becoming age 55, he or she will not typically
be charged the 10% penalty.
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Plan considerations when you retire
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Loans:
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Retired members are not eligible to take a loan from
their Plan account.
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Only currently employed participants are eligible for
loans.
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Plan considerations when you retire
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Beneficiary:
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Unless you designate another individual with your
spouse’s written and notarized consent, your spouse
will automatically be your beneficiary for 100% of the
value of your account.
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If you wish to designate another beneficiary for any
portion of your account, your spouse must consent, in
writing (notarized), to waive her/his right to this benefit.
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Plan considerations when you retire
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Beneficiaries:
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Multiple beneficiaries can be selected. You may
select a primary beneficiary, secondary beneficiary,
and a tertiary (third in line) beneficiary.
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Contact Mercer at 1-877-864-6644 or access the
website by logging on to www.ibenefitcenter.com.
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Plan considerations when you retire
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Deceased primary and contingent
beneficiaries:
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In the event your spouse and/or other named
beneficiaries are deceased, your account balance
will be payable to your estate.
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Accessing your account
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ibenefitcenter.com, available 24 hours a day,
7 days a week.
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Automated phone service, by calling 1-877-8646644, available 24 hours a day, 7 days a week.
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Mercer representatives, available by calling
1-877-864-6644 between 8 am and
10 pm ET, any business day.
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Benefit Statement
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2014 Benefit Statement was mailed to
your home at the end of April.
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Similar to prior statement sent last year.
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Shows your:
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Plan balance.
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Personalized rate of return.
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Projected monthly Social Security benefit.
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Projected monthly pension benefit.
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Total hypothetical monthly benefit.
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Questions and answers
If you have any further questions, please feel free to call
Mercer at 1-877-864-6644, between 8 am and 10 pm ET,
any business day.
Or, you may call the Fund Office at 1-212-459-8948.
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Final word
This presentation summarizes the Plan’s key features.
The formal terms are set forth in the official Plan
documents and are not changed or interpreted by this
presentation. The official Plan documents will govern in all
cases.
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The information contained in this document is not intended by Mercer to be used,
and it cannot be used, for the purpose of avoiding penalties under the Internal
Revenue Code that may be imposed on the taxpayer.
Before investing, carefully consider the investment options’ or funds’
investment objectives, risks, charges, and expenses. Call 1-877-864-6644
or visit www.ibenefitcenter.com for an offering statement or prospectus
and, if available, a summary prospectus containing this and other
information. Read them carefully.
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