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Faqs: Social Security Family Benefits for Target Employees and Retirees

Understanding Social Security can help ensure a financial future even for Target employees facing unexpected challenges in life, says Patrick Ray of The Retirement Group. 'We recommend talking with a financial advisor about your benefits to see if they fit your needs.

'Social Security benefits are very important to many Target employees and retirees,' says Michael Corgiat, a financial expert with The Retirement Group. A professional advisor can help you understand these benefits and help you protect your financial future amid life's uncertainties,' says'

In this article:

1. Social Security and Retirement Planning: Understanding how Social Security can be a supplement to income for Target employees and retirees - and why it should not be the only income in retirement.

2. Family Benefits under Social Security: Explore how spousal death, divorce, and disability affect eligibility and benefits distribution to family members.

3. Strategic Application of Benefits: Information on how to apply for Social Security benefits 'to maximize financial support for critical family events.'

Social Security benefits are very important to many Target employees and retirees,' says Michael Corgiat, a financial expert with The Retirement Group. 'Working with a professional advisor can help you understand these benefits and protect your financial future amid life's uncertainties.'

Social Security is among the most basic retirement income concepts for Target employees and retirees. Social Security is another retirement income stream. It should never be the only source of income, but it can help in times of need. A family dealing with death of a spouse, disability, divorce, or dependent children/parents should know the benefits they dispose of to ease the financial strain they may be experiencing. How does family benefit work?

You will usually get a percentage of the Social Security benefit, the entire Social Security benefit, or a family maximum. An example of how this differs is what we hear from Target employees and retirees.

Answer: That question comes from many Target employees and retirees - understandably so. Yes, spousal benefits are available to a couple who has been married one year or longer. They may collect up to 50 percent of working spouses Primary Insurance amount - Full Retirement Age if they wait until their own Full Retirement Age - or they may collect another reduced amount starting at Age 62.

Answer: Yes. If you were married to your ex-spouse for 10 or more years, they are unmarried and age 62 or older. You receive the same benefits as a current spouse.

Answer: It comes from working with a lot of Target employees and retirees about how death can affect the family financial situation. This question comes up a lot, therefore.

In the answer, there are two parts. Yes. Your unmarried dependent children under 18 years old, 19 if in a primary or secondary school, or disabled as long as disability occurred before age 22 years old are entitled to 75 percent of the PIA of the deceased parent up to a family maximum. For any child under age 16 your spouse is also entitled to 75 percent of the PIA up to a family maximum. In this situation Social Security has come in immediately to help the family with additional income.

In addition, at age 60 a widower can take Social Security from the deceased spouse. This is two years before the traditional spousal benefit. And as with any situation involving taking Social Security early, you will pay a percentage reduction of the full benefit.

Answer: It's another worry for many Target employees and retirees with children. Yes, exactly the same eligibility rules apply as if you were deceased. The only change: your children would get only 50 percent of your PIA.

Answer: Yes. Depending on the circumstances, your dependent parents may collect off your record if you are deceased and you provided more than 50 percent of their support before you died. That's the least common family benefit. 1 Remember that a family member collecting Social Security benefit off of your record will not reduce your benefit. Making applications for the benefits your family and you deserve can create significant income for your family and ease the strain a life-changing event may place on your resources.

We speak with lots of Target employees and retirees over the years and we know everyone is different. Social Security benefits are complicated but our financial advisors can help you determine when and how to apply. A nationwide group of financial advisors known as The Retirement Group.

We only plan for and design retirement portfolios for transitioning corporate employees. And each representative of The Group has been hand-picked by The Retirement Group in select cities throughout The United States. Each advisor was screened for pension expertise, financial planning experience, and portfolio construction knowledge.

TRG believes in teamwork to find solutions to our clients' problems. A conservative investment philosophy guides the Team in constructing client portfolios with laddered bonds, CDs, mutual funds, ETFs, Annuities, Stocks, and other investments. They handle Retirement, Pensions, Tax, Asset Allocation, Estate, Elder Care issues. This document uses different research tools and techniques.

All attempts to estimate future results involve assumptions and judgments and are therefore only tentative. The law, investment climate, interest rates, and personal circumstances will all change and will affect how accurate our estimations are and how appropriate our recommendations are. Such a plan requires ongoing change sensitivities as well as constant re-examination and alteration of the plan.

So, update your plan a few months before your expected retirement date and do an annual review. Nothing contained herein shall be construed as an attempt by the Retirement Group, LLC, or any of its employees to practice law or accounting. We look forward to speaking with any tax and/or legal professionals you may select regarding the implications of our recommendations.

Through your retirement years, we will continue to update you on issues affecting your retirement via our complimentary and proprietary newsletters, workshops, and periodic updates. Or call us at (800) 900-5867.

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Sources:

1. 'Benefits Planner: Retirement.' Social Security Administration, 2023, www.ssa.gov/benefits/retirement/planner/ageincrease.html . Accessed 23 Feb. 2025.

2. 'Windfall Elimination Provision (WEP) and Government Pension Offset (GPO).' Social Security Administration, 2023, www.ssa.gov/benefits/retirement/planner/wep.html . Accessed 23 Feb. 2025.

3. 'How Do I Apply for Social Security Retirement Benefits?' Social Security Administration, 24 Apr. 2024, www.ssa.gov/faqs/en/questions/KA-01891.html . Accessed 23 Feb. 2025.

4. 'Benefits Planner: Retirement | Social Security Benefits for Federal Workers.' Social Security Administration, 2023, www.ssa.gov/benefits/retirement/planner/fedgovees.html . Accessed 23 Feb. 2025.

5. 'Quick Calculator.' Social Security Administration, last modified 27 May 2014, www.ssa.gov/OACT/quickcalc/ . Accessed 23 Feb. 2025.

What are the key benefits provided by Target Corporation's Personal Pension Account and Traditional Plan for employees approaching retirement, and how do these plans ensure financial security during retirement years? Understanding the synergy between these two plans is essential for retirees, as they work together alongside Social Security and personal savings to replace a portion of an employee's paycheck after retirement.

Key Benefits of the Personal Pension Account and Traditional Plan: Target Corporation's pension plan includes two components: the Personal Pension Account and the Traditional Plan. These plans work in tandem to replace a portion of an employee's paycheck during retirement. The Personal Pension Account provides pay credits and interest that accumulate over time, while the Traditional Plan uses a final average pay formula. Together with Social Security and personal savings, these plans help ensure financial security in retirement(Target Corporation_Dece…).

How can employees elect different payment options, such as the Single Life Annuity or the Joint and Survivor Annuities, within Target Corporation's pension plans? It is crucial for employees to grasp not only the financial implications of these choices but also the necessary spousal consent required when designating a joint annuitant, particularly if the chosen joint annuitant is not the employee's spouse.

Payment Options and Spousal Consent: Employees can elect different payment options, including the Single Life Annuity, which provides the highest monthly benefit and ceases at the retiree’s death, or the Joint and Survivor Annuity, which continues payments to a surviving spouse. To elect a non-spouse as a joint annuitant, spousal consent is required, and this must be notarized to ensure compliance with plan rules(Target Corporation_Dece…).

In what circumstances might benefits not be paid under the Traditional Plan, and what steps can employees take to ensure they remain eligible for their pension benefits upon termination of employment? Target Corporation's policy outlines several scenarios where benefits could be denied, making it necessary for employees to be proactive in understanding their rights and responsibilities concerning plan participation.

Circumstances for Denial of Benefits under the Traditional Plan: Benefits under the Traditional Plan may not be paid if an employee leaves before becoming vested (less than three years of service). Employees should ensure they meet the vesting requirements and maintain eligibility by avoiding termination before they reach the minimum service period(Target Corporation_Dece…).

What procedures should employees follow to report changes in marital status, address, or beneficiaries to ensure compliance with the requirements of Target Corporation's pension plan? Employees must understand the importance of timely reporting these changes to avoid potential issues with their retirement benefits and ensure that their pension plan information remains up-to-date.

Reporting Changes in Marital Status or Beneficiaries: Employees must promptly report changes in marital status, address, or beneficiaries to Target's Benefits Center to ensure their pension records remain up-to-date. Failing to do so can lead to delays or issues in processing pension benefits(Target Corporation_Dece…).

How does Target Corporation determine the final average pay used to calculate retirement benefits under its pension plans, and what factors may affect this calculation? Employees nearing retirement should be fully informed about how their compensation is considered in determining their pension benefits, including aspects such as bonuses and overtime that may influence their final average pay calculation.

Final Average Pay Calculation: Target Corporation calculates final average pay based on the five highest years of earnings out of the last 10 years of service. This includes regular pay, overtime, bonuses, and commissions but excludes items like workers' compensation or long-term disability payments(Target Corporation_Dece…).

How can employees begin the process of rolling over their Target 401(k) accounts into the Pension Plan, and what advantages does this Pension Purchase Program offer? Understanding this rollover option is vital for maximizing retirement benefits, as it can provide employees with a stable income stream while avoiding unnecessary fees typically associated with purchasing annuities outside the plan.

Rolling Over 401(k) into the Pension Plan: Employees can roll over their 401(k) accounts into the Pension Plan using the Pension Purchase Program. This option offers several advantages, including avoiding fees associated with purchasing annuities outside the plan and receiving a stable income stream during retirement(Target Corporation_Dece…).

What are the implications of a participant's age and joint annuitant's age on the payment amounts under the various Joint and Survivor Annuity options at Target Corporation? Employees should be aware of how age differences can impact their pension payouts, as the specific percentages payable under these options may vary based on the ages of both the participant and their designated joint annuitant.

Effect of Participant and Joint Annuitant’s Age on Payments: The Joint and Survivor Annuity options are influenced by the ages of both the participant and the joint annuitant. The younger the joint annuitant, the lower the monthly payout due to actuarial adjustments. Employees should consider these factors when selecting an annuity option(Target Corporation_Dece…).

How are retirement benefits managed during potential plan terminations or amendments at Target Corporation, and what protections are in place for employees in these scenarios? Employees should be well-informed regarding their rights in the event of changes to the pension plan, including how benefits would be distributed and under what circumstances they may remain fully vested.

Plan Terminations or Amendments: In case of plan terminations or amendments, vested benefits are protected, and employees will receive their earned pension. If the plan is amended or terminated, Target ensures that vested benefits are distributed according to the plan's terms(Target Corporation_Dece…).

For employees retiring or leaving Target Corporation, what options are available with respect to unused vacation time and how might this be factored into pension calculations? Understanding how accrued time off translates into benefits could have a significant impact on an employee's financial positioning upon retirement.

Unused Vacation Time and Pension Calculations: Unused vacation time does not directly affect pension benefits but can be included in eligible earnings calculations that determine final average pay. Employees nearing retirement should consult with Target’s Benefits Center to understand how unused time may impact their overall benefits(Target Corporation_Dece…).

How can employees contact Target Corporation for assistance with their retirement benefits to address any questions or concerns they may have about their pension plans? Accessing the right resources and support is essential for employees to navigate their retirement benefits effectively. They can reach out to the Target Benefits Center at 800-828-5850 for more specific inquiries related to their personal circumstances. These questions aim to enhance employees' understanding of their retirement benefits, ensuring they are well-prepared for their transition into retirement.

Contacting Target for Pension Assistance: Employees can contact the Target Benefits Center at 800-828-5850 for assistance with their retirement and pension plans. This center provides support with any questions related to pension options, payments, and administrative requirements(Target Corporation_Dece…).

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For more information you can reach the plan administrator for Target at 10 South Dearborn Street 48th Floor Chicago, IL 60603; or by calling them at 1-800-440-0680.