Please let me know if I am wrong on this. If you leave for whatever reason before age 55 you:
Keep your 401k and can leave it with the Farm or move it.
If you are vested in the retirement plan you keep your accrued pension benefits but can not claim them until a minimum of age 55.
You lose out on any other retiree benefits including medical or life insurance.
Anything I am missing?
4 is accurate... you can pick up insurance later (either at annual enrollment or qualifying event) even if you didn't take insurance immediately (for example you were insured with spouse's policy).
3 is essentially correct except you can take withdrawals from 401k regardless of pension choice as long as you severed from sf. Move it to an ira and you lose that option (without 10% penalty) until 59.5
Read your HR manual. They grandfathered getting insurance when you retire a few years ago. I don't have as many years of service as most of you all. I fall out of the range of getting insurance at 55.
I retired almost 20 years ago, and I realize the rules have changed. Before I retired (at 55), I was carrying the insurance for me and my spouse(also a BE employee). We wanted her to carry it after my retirement (she remained an employee for a while) but we wanted to switch it back to me when she retired. The HR rep said that would be no problem, but I insisted on a written document from the HR VP. I got it and we followed through by switching it back to me when she retired. Interesting, isn't it, that I didn't trust BE that far back?
4 not accurate. If you do not take the insurance from Sf when retiring, you can’t get it from Sf later. If retiring it’s now or never.
once you are 55 (or older), you can draw pension.
if you leave prior to 55, you are quitting and thus forfeited benefits (insurance, $200 towards medicare, access to park, etc).
if u leave at 55 (or older), if you immediately draw pension, you are eligible to get the benefits, including withdrawing from 401K without penalty.
if you retire (draw pension immediately), i believe you can postpone getting the insurance until a later date (example, if you are on your spouses ins plan). not 100% sure tho on this one so validation needed
If you leave before 55 you can draw your pension when you turn 55 or later. You lose all other retiree benefits. You are not able to draw on your 401k until 59 1/2 without a 10% penalty for the most part except up to max of $10,000 for medical expense total (check with tax advisor and with HR). I was not yet 55 when I left but will be 55 next year. I am going to analyze the math of drawing on my 401k early for a few years and delaying starting my pension versus just starting my pension and not drawing on my 401k until I am 59 1/2. If you are 55 when you go, it is my understanding you have to begin drawing retirement immediately to keep your medical and other retirement benefits. Good luck and check with HR and consult experts before making decisions as different states may vary and each person’s situation is unique.
I think you are mostly correct but you have to retire from State Farm to get the medical and life insurance. You can't leave at 55 and start drawing retirement later. Could be wrong...
I’m on the Severance considerations video right now. You are correct. But I’m an impacted employee. But you are correct
Having just done this three months ago, you pretty well have it covered.