Products October 17, 2014

Lincoln Rolls Out Retirement Savings Education Program

October 17, 2014 (PLANSPONSOR.com) – Lincoln Financial Group is providing educational materials for plan sponsors to use in connection with National Save for Retirement Week.
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The event, which promotes retirement savings for Americans, is from October 19 through October 25 and is endorsed by Congress. Lincoln is among those in the industry encouraging employees to participate in their employer-sponsored retirement plans.

According to a recent MOOD of America study conducted by Lincoln Financial Group, most Americans are taking a careful and deliberate approach when it comes to their retirement plans. Among those who feel prepared, 77% believe they have saved enough to cover retirement expenses and 64% expect to be debt free during retirement.

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Throughout National Save for Retirement Week, Lincoln will share insights from the study. Starting Monday, Lincoln will highlight a different career stage—first job, changing or in between jobs, mid-career, career advancement, and near retirement—and suggest actions to help savers on their own road to retirement readiness.

Lincoln is also rolling out “Your Future: Worth Saving For,” a retirement education and communication program for its plan sponsors to use with participants. A suite of materials and dedicated website with interactive features and resources including a video, calculators and more, aim to promote better savings habits among plan participants.

“Whether savers are just starting out in their career, changing jobs or approaching retirement, there are actions that can help boost their retirement readiness at these career checkpoints on the road to retirement,” says Chuck Cornelio, president of retirement plan services at Lincoln Financial Group.  

Compliance October 17, 2014

PBGC to Take Over Manufacturing Firm's Retirement Plan

October 17, 2014 – (PLANSPONSOR.COM) – The Pension Benefit Guaranty Corporation (PBGC) will pay retirement benefits for more than 4,500 current and future retirees at Reichhold Inc.
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The company, which manufactures resins used for composites, plans to sell its assets in bankruptcy, and the pension plan will be abandoned as part of the process.

PBGC is stepping in to pay all pension benefits earned by the plan’s retirees up to the legal limit of about $59,320 a year for a 65-year-old. Moving forward, retirees will continue to get benefits without interruption, while future retirees can apply for benefits as soon as they are eligible. Employees and retirees who are participants in the Reichhold plan will continue to receive benefits from the company until PBGC assumes responsibility.

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The shortfall amounts to $97 million, and PBGC is expected to cover $90 million of that total. The plan is 70% funded with $228 million in assets to pay $325 million in benefit liabilities, according to PBGC estimates. 

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