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Military families face plenty of financial challenges. If you're saving for college or Fox retirement, buying a home, or wondering how to help secure your family's financial future, don't overlook these five important benefits.
1. Thrift Savings Plan
Retirement from Fox is something you need to plan for, whether it's far away or just around the corner. Even if you can rely on a military pension because you've stayed in the service for 20 years or more, it's probably not going to provide all the retirement income you'll need, and neither is Social Security. That's why it's important to save for your Fox retirement on your own. One option you have is to contribute to the government's Thrift Savings Plan (TSP).
The TSP is a retirement savings plan for federal employees, including service members. When you make traditional contributions to the TSP, you get the same types of savings and tax benefits as you would if you contributed to a 401(k) plan offered by a private-sector employer. Contributing to the TSP is simple--your regular contributions are deducted from your paycheck before taxes (which can lower your taxable income for the year), and your contributions and any earnings accumulate tax deferred until withdrawn in retirement. You can also opt to make after-tax Roth contributions. They won't reduce your current tax liability, but qualified withdrawals in retirement will be tax-free (assuming IRS requirements are met).
You can enroll, change, or cancel your contributions whenever you'd like. You can contribute as little as 1% or as much as 100% of your basic pay (or a designated dollar amount) each pay period, up to what's called the elective deferral limit for the year. In 2020, you can contribute up to $19,500; if you're age 50 or older and are making catch-up contributions, you can contribute up to $26,000.
If you're contributing a percentage of your basic pay, you can also contribute a percentage of your incentive pay, special pay, or bonus pay (but you can't make catch-up contributions from these types of pay). And if you're deployed and receiving tax-exempt pay (i.e., pay that's subject to the combat zone exclusion), you can also make contributions from that pay, and your contribution limit for the year is even higher; the limit for total contributions from all types of pay is $57,000 for 2020.
When you leave the military, you can't continue to contribute to the TSP, but you have the option of keeping your money in the TSP or rolling it over to another retirement account, such as a traditional or Roth IRA or an eligible employer plan. For our Fox clients who would like more information on the TSP, visit tsp.gov.
2. Savings Deposit Program
Are you trying to save money to buy a vehicle or make a down payment on a home? Do you need to set aside money for a rainy day? If you're deployed to a designated combat zone for more than 30 consecutive days, you may have a unique chance to save for your goals at a guaranteed interest rate by participating in the Defense Department's Savings Deposit Program (SDP).
The SDP pays you 10% interest on deposits up to $10,000 while you're deployed, and you'll earn this interest rate on your money for up to 90 days after your return. You may deposit all or part of your unallotted pay. Interest compounds quarterly and is taxable.
Generally, you can withdraw funds and close your account only after you leave the combat zone and are no longer eligible to participate in the SDP, although emergency withdrawals, while you're deployed, are allowed in some cases. Other rules and eligibility requirements apply. For our Fox clients who would like to find out more or begin participating in the SDP, contact your local military finance office.
3. Post-9/11 GI Bill
Education benefits are one of the most valuable benefits available to servicemembers. If you're entitled to benefits, the Post-9/11 GI Bill will pay up to the full cost of in-state tuition and fees at public colleges for up to four years, or up to a certain maximum amount per academic year if you attend a private college or foreign school. The maximum for the 2019 - 2020 academic year (August 1, 2019 through July 31, 2020) is $24,476.79. Extra benefits may be available to those who are enrolled in Science, Technology, Engineering and Math (STEM) programs. But if you don't need to use your entitlement, the Post-9/11 GI Bill can provide a great way to pay for your family's education. Servicemembers who make a long-term service commitment have the opportunity to transfer unused education benefits (up to 36 months' worth) to their spouses and children.
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To transfer your unused benefit entitlement to your spouse, you must have served at least 6 years, and generally commit to serving 4 additional years from the date a benefit transfer is approved (some exceptions to this added service requirement exist). Once the transfer is approved, your spouse may begin using the benefits immediately and generally has an unlimited amount of time to use the benefits. If you opt to transfer your unused entitlement to your dependent children, they can use the benefits only after you've completed at least 10 years of service. In addition, they must have attained a secondary school diploma or equivalency certificate or have reached age 18, and they can use the benefit entitlement only until reaching age 26. If both your spouse and your children are attending school, you can opt to split your benefit entitlement among them. For our Fox clients who would like to learn more about GI Bill benefits for you and your family members, visit benefits.va.gov.
4. VA Home Loan
Saving for a down payment is one of the biggest obstacles to homeownership. Fortunately, military families can often benefit from the no-down-payment requirement of a VA loan. This type of loan, which can only be used to finance a primary residence, also features another money-saving benefit: borrowers aren't required to pay mortgage insurance.
Despite its name, the VA loan isn't handled by the government. Like other home loans, VA loans are offered by private lenders such as banks, credit unions, and mortgage companies. The VA guarantees a portion of the loan, which may make it easier for you to obtain a loan or qualify for more favorable terms, including lower closing costs and appraisal fees. Not all lenders offer VA loans, so you'll need to ask potential lenders whether they are VA-approved lending institutions.
One lesser-known feature of the VA loan program is the opportunity to do a cash-out refinancing. If you have substantial home equity, this feature allows you to refinance an existing home loan (including a non-VA loan) while borrowing extra money, which you can use to pay off debt or make home improvements, for example. A VA loan is often a good choice for military families, but it's not the only game in town. We suggest that these Fox clients compare the terms, interest rates, closing costs, and fees against other mortgage options. One drawback of a VA loan is the funding fee that's generally required. This funding fee which you pay at closing (it can be financed into the loan) is a percentage of the amount you're borrowing.
For our Fox clients who would like more information on VA loans, including how to qualify and how to apply, visit benefits.va.gov.
5. Servicemembers' Group Life Insurance
Knowing that your family will be protected is extremely important, and affordable term life insurance coverage is available through the Servicemembers' Group Life Insurance (SGLI) program. Eligible servicemembers are automatically enrolled in SGLI, and spouses and dependent children are generally automatically insured through a related program, Family Servicemembers' Group Life Insurance (FSGLI). When you leave the military, you can apply to convert your policy to Veterans' Group Life Insurance (VGLI), which provides renewable term coverage.
An SGLI policy may also be converted to an individual policy sold by a participating commercial company. (Deadlines apply to both types of conversions.) However, you should carefully evaluate your options to determine whether VGLI will meet your life insurance needs. Points to consider include premium costs, plan features, and whether term insurance is your best option. For our Fox clients who would like more information about these and other life insurance programs for servicemembers, visit insurance.va.gov.
How does 21st Century Fox America Inc. determine the funding status of its pension plan, and what key metrics are utilized in evaluating its financial health? Employees may want to understand the significance of the Funding Target Attainment Percentage and how it influences their retirement benefits, especially as it pertains to both the general and specific circumstances affecting funding levels.
Funding Status and Metrics: 21st Century Fox America Inc. determines the funding status of its pension plan by calculating the Funding Target Attainment Percentage (FTAP), which divides the plan’s net assets by its liabilities. For the 2022 plan year, the FTAP was 125.79%. This metric is crucial because it indicates how well the plan is funded. A high FTAP suggests that the plan is well-funded and capable of meeting its obligations, which directly influences employees' retirement security(21st Century Fox Americ…).
What considerations does 21st Century Fox America Inc. take into account when deciding the investment strategies for its pension plan? Employees should be informed about the policy guidelines that govern the allocation of the plan's assets, including which asset classes are prioritized and the expected outcomes from such investment decisions.
Investment Strategy Considerations: The company follows specific investment policies that establish guidelines for asset allocation within the pension plan. These policies ensure that assets are allocated among major categories like equities, fixed income, and cash. The fiduciaries of the plan determine the target ranges for each category, aiming for stable returns and long-term viability(21st Century Fox Americ…).
How can employees of 21st Century Fox America Inc. assess their rights and the processes involved should the pension plan terminate? This includes evaluating the stipulations provided by federal laws that dictate what happens to vested benefits upon termination and what steps participants can take to secure their entitlements.
Rights and Pension Termination: Should the pension plan terminate, federal law requires 21st Century Fox America Inc. to follow certain procedures. If fully funded, the plan would undergo a standard termination, where an insurance company provides annuities, or a lump sum may be offered. In underfunded cases, a distress termination could occur, where the Pension Benefit Guaranty Corporation (PBGC) takes over(21st Century Fox Americ…).
What are the recent changes in federal regulations influencing how pension plans, such as the one at 21st Century Fox America Inc., calculate their liabilities? Employees need to grasp the implications of these regulations on their future benefits, specifically regarding the new methodologies for determining financial sufficiency.
Impact of Federal Regulations: Recent changes in federal regulations, including the American Rescue Plan Act of 2021, adjusted the methodologies for calculating pension liabilities. Plans now incorporate a 25-year interest rate average, which typically results in higher interest rates and lower liabilities, affecting the funding status and employer contributions(21st Century Fox Americ…).
In the context of 21st Century Fox America Inc., what is the role of the Pension Benefit Guaranty Corporation (PBGC) in guaranteeing pension benefits, and what are the criteria for ensuring benefits remain secure? Understanding how the PBGC functions and its limits is critical for employees planning their retirements.
Role of PBGC: The PBGC provides a guarantee for vested pension benefits in the event of plan termination. The guarantee is subject to legal limits, which vary depending on the participant’s age and the plan’s termination date. For 2023, the maximum annual benefit for a 65-year-old retiree was $81,000(21st Century Fox Americ…).
What steps can employees take to access information related to their pension plan from 21st Century Fox America Inc., and how can they ensure they receive timely updates regarding their benefits? Details about the channels available for inquiries and the importance of keeping informed about funding levels and benefits are crucial.
Accessing Pension Information: Employees can access information about their pension plan through the Disney Benefits Center by calling (800) 354-3970. Staying informed about the plan’s funding levels and benefits is essential, and employees are encouraged to review the annual funding notice for updates(21st Century Fox Americ…).
How does 21st Century Fox America Inc. manage the risks associated with its pension investments, particularly in a volatile market climate? Employees could benefit from insights into risk management strategies and how they affect long-term pension viability.
Risk Management in Investments: To manage investment risks, 21st Century Fox America Inc. adheres to a diversified asset allocation strategy. This approach helps mitigate market volatility and ensures the long-term sustainability of pension benefits despite changing economic conditions(21st Century Fox Americ…).
In what ways can a participant's years of service and salary history with 21st Century Fox America Inc. affect their retirement benefits, and what mechanisms are in place to ensure accurate benefit calculations? Exploring the relationship between service, salary, and pension outcomes can help clarify employee expectations.
Service and Salary Impact on Benefits: The pension plan is structured to account for employees' years of service and salary history in calculating their retirement benefits. These factors directly affect the benefit amount, and the plan ensures that accurate records are maintained to reflect this information(21st Century Fox Americ…).
What unique benefits does 21st Century Fox America Inc. offer that may enhance its pension plan, and how can employees maximize their advantages while planning for retirement? Understanding available supplemental benefits can empower employees in their retirement planning journeys.
Enhancing Pension Benefits: Employees of 21st Century Fox America Inc. may benefit from supplemental retirement benefits, including early retirement options or disability benefits. Understanding and maximizing these options can significantly impact long-term retirement planning(21st Century Fox Americ…).
How can employees of 21st Century Fox America Inc. get in touch with the Disney Benefits Center to inquire further about their employee benefits or to clarify any aspects of the pension plan? Having clear contact information and the process for accessing support can greatly assist employees in navigating their retirement preparation.
Contacting the Disney Benefits Center: Employees can reach out to the Disney Benefits Center at (800) 354-3970 for any inquiries related to their pension plan or other employee benefits. This resource is crucial for clarifying benefit details and addressing any concerns(21st Century Fox Americ…).
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