Q. Can I contact Principal Financial Group (PFG) for an estimate of my benefits?
A. Yes. Principal Financial Group will work with you to privide estimates. Keep in mind that you will automatically receive a annual statement. Contact PFG at 1-866-240-1348.
Q. Will I have medical benefits after I retire?
A. The Company does not intend to terminate retiree medical coverage. That does not mean that the benefits offered will always remain the same, and it is important to remember that the Company always retains the right to amend or terminate retiree medical coverage at any time.
At the present time, there is a task force working to develop a new plan design for Cooper retiree medical benefits. For all of the same reasons that changes were made to benefit programs for active Cooper people, it is also important that we take a look at the retiree benefit programs currently offered to our retirees. While we cannot say at this time what any new design may look like, it is important for all Cooper people to recognize that their needs and expectations will be carefully taken into account in any new plan design, and will be considered along with other important elements such as cost, the extent of coverage, and the offering of choice to all of our retirees.
Until the new plan design is put in place, employees retiring after January 1, 2002 will be covered by the same retiree benefit program as was applicable to employees retiring prior to December 31, 2001.
Q. Will salary and bonus be used for the pay credit calculation?
A. Base Salary, bonus, commissions and overtime earnings will all be included.
Q. When can I start taking money out of my retirement plan?
A. When you terminate employment.
Q. When will interest and pay credits be added to my retirement account?
A. They will be added to your account with an effective date of December 31.
Q. If I quit sometime during the year is the interest and pay credits pro-rated to my account?
A. Yes, both interest and pay credits will be pro-rated to your account up to the effective date of your termination.
Q. At the end of the year, does the pay credit get added to my balance before or after the interest is added?
A. After the interest is added.
Q. If I leave my cash balance in the plan after I terminate my employment, will it continue to earn earnings credits?
A. Yes.
Q. Is there a Joint and Survivor benefit as part of the pension plan?
A. Yes.
Q. Why was the grandfather clause in the Retirement Plan set at 40 and 15?
A. Fifteen years service was the minimum service necessary to receive an immediate benefit under the heritage Cooper pension plan. Many companies when revising their pension plans have used age 40 as the cut off age.
Q: Why isn't there a cash-out option available for the grandfathered people?
A: The cash-out option is a feature of the new Spectrum Retirement Plan and is not available under your current pension plan. Because you have met the requirements for the grandfather provision, you will have only access to your current plan provisions.
Q: Does my credited service begin when the plans begin on Jan. 1, 2002?
A: The credited service requirement for the Investment Savings and Retirement plans are different. The credited service for the Investment Savings begins on your date of hire as long as you maintain full-time status. Credited service for the Retirement Plan begins when you became covered by a retirement benefit plan. For people covered under the previous Cooper and Standard retirement plans, that generally begins with your hire date. For people not previously covered under a retirement plan, credited service begins at the date of acquisition on either Oct. 27, 1999 (Standard) or Jan. 28, 2000 (Siebe).
Q: What are the tax consequences of taking the cash-out option?
A: If you choose to take your benefit as a lump sum, you may have your benefit paid directly to you or you can roll over all or part of the cash out to an Individual Retirement Account (IRA) or to another employer's qualified retirement plan. If you choose to receive your benefit directly, your benefit is considered as ordinary income and is subject to an automatic 20% tax withholding. The IRS also may require that you pay an additional 10% penalty tax on amounts you receive before age 59 1/2. If you choose to roll over your benefit, you will defer paying income taxes and can avoid additional tax penalties. The tax consequence of the cash-out option can be complex. You should consult a tax or financial advisor to help you make the best decision for you and your family.
Q. Are there annual updates of the retirement accounts?
A. Yes, an annual statement will be issued regarding employee account balances. We also expect to provide employees with Benefits Statements in the future.
Q. If you take the cash from your retirement account, are you still a retiree, or do you need to take the monthly benefit?
A. If you meet the age and service requirements to be able to retire, but you choose to the cash option, you will still be considered a retiree.
Q. What is the amount of penalty for retiring early at 55 or any year up to age 65?
A. If you take the monthly pension as an immediate benefit, there will be a 4/10 of 1% per month reduction between age 55 and 62 and 6/10 of 1% reduction per month between the age of 62 and 65.