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Private Equity in Resolute Forest Products 401(k) Plans: What Employees Should Know

Healthcare Provider Update: Resolute Forest Products offers health insurance benefits that include enhanced dental and vision coverage, life insurance, and long-term disability. Recent union agreements have increased benefit amounts and added vacation time. Employees also have access to a benefits portal for managing coverage and making changes during open enrollment 8. Healthcare costs in the United States are projected to continue rising through 2026, with insurers proposing significant premium increases for Affordable Care Act (ACA) plans. A recent analysis found that ACA insurers are seeking a median premium increase of 15% for 2026, marking the largest hike since 2018. This surge is attributed to factors such as the anticipated expiration of enhanced premium tax credits, rising medical costsincluding expensive medications and increased hospital staysand a shift in the risk pool towards higher-cost enrollees. Without the renewal of enhanced subsidies, out-of-pocket premiums for ACA marketplace enrollees could increase by more than 75% on average. Click here to learn more

'Resolute Forest Products employees should carefully weigh transparency, costs, and flexibility when evaluating new 401(k) options, as thoughtful planning today can make a meaningful difference in retirement outcomes.' — Michael Corgiat, a representative of The Retirement Group, a division of Wealth Enhancement.

'Resolute Forest Products employees navigating evolving 401(k) choices should focus on understanding fees, liquidity, and long-term impact to help align their retirement strategies with their personal goals.' — Brent Wolf, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article, we will discuss:

The opportunities and risks of private equity’s entry into 401(k) retirement plans.
The impact of fees, transparency, and liquidity on long-term retirement outcomes.
Key considerations Resolute Forest Products employees should weigh before adding private equity to their portfolios.

For several years, private equity firms have been seeking access to corporate retirement plans, which could affect the investment choices available in 401(k) accounts. Traditionally, these alternative investments have been limited to wealthy and institutional investors, who provide private equity firms with funds they can use to buy equity stakes in unlisted private companies. Under the Employee Retirement Income Security Act (ERISA), however, private equity funds have been excluded from most workplace retirement plans due to their high fees, limited liquidity, and opaque reporting requirements. ¹

New federal guidelines may be shifting this landscape. In an Executive Order issued in August 2025, the Trump administration supported access to alternative assets for 401(k) investors. ² While these changes may broaden diversification opportunities, they also raise questions about appropriateness, costs, and transparency for Resolute Forest Products employees planning their retirement. 'It's a historic change in access, but it's also a time that calls for caution,' said Neva Bradley of Wealth Enhancement. Although private equity may offer diversification benefits, a higher risk profile and less transparent pricing require careful consideration.

Juggling Promise and Risk

Private equity funds have historically delivered strong long-term returns, ³ but more recent conditions have narrowed the edge over traditional stock indexes. ⁴ Rising interest rates and volatile markets have made performance less consistent, which is an important factor for Resolute Forest Products workers evaluating retirement strategies. While opportunities for gains remain, the trade-off in volatility cannot be ignored.

Fee structures complicate matters further. Compared to low-cost index funds, private equity investments involve multiple layers of expenses. According to Bradley, 'the fee structures and volatility can significantly reduce those gains over time.' Resolute Forest Products employees should note that these fees can be ten times higher than standard 401(k) options, ⁵ which can diminish long-term compounding.

Challenges of Transparency

One of the largest differences between mutual funds and private equity is reporting. Mutual funds tend to publish daily prices and transparent performance updates, while private equity reports are typically quarterly and valuations are often based on estimates. ¹ This lack of standard benchmarks can make it difficult for even seasoned investors to evaluate performance consistently. For Resolute Forest Products participants, this means private equity may feel less straightforward than traditional investment choices.

The Cost Aspect

Private equity is also known for its high fees. Typical structures include a 1% to 2% annual management charge plus performance-based incentives, compared to about 0.25% for many mutual funds. ¹ Over decades, these higher costs compound, especially for retirement accounts where long-term growth is important. As Bradley points out, 'those costs compound over decades,' underscoring the need to weigh fees against potential returns.

Important Things to Consider for Retirement Planning

For Resolute Forest Products employees who may encounter private equity options in their 401(k), here are some key considerations:

Liquidity: Investments are often locked in for years with limited access.
Costs: Carefully review and compare fee structures.
Timeline: Private equity may lack the flexibility needed closer to retirement.
Diversification: If included, it should represent only a small portion of the portfolio.

Bradley summarized, 'Private equity is not a panacea, but it can contribute to complex portfolios.' Resolute Forest Products participants should evaluate transparency, fees, and personal risk tolerance before making decisions.

One notable development is that target-date funds that include private equity and private credit holdings have been shown to potentially boost retirement income by 5% to 15% over 40 years, ⁶ provided top-tier managers are selected. For Resolute Forest Products employees, this underscores both the opportunity and the complexity of integrating private equity into a long-term plan.

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Articles you may find interesting:

Sources:

1. Investopedia. ' Private Equity is Coming for Your 401(k): How to Protect Yourself ,' by Daniel Liberto. 17 Jan. 2025.

2. The White House, Presidential Actions. ' Democratizing Access to Alternative Assets for 401(k) Investors ,' Executive Orders. 7 Aug. 2025.

3. Institutional Investor. ' Why Private Equity Wins ,' by Dawson Partners. 24 Mar. 2025.

4. Morningstar. ' How Attractive Is Private Equity? ' by Jack Shannon. 11 June 2025.

5. Investopedia. ' Private Equity Explained With Examples and Ways To Invest ,' by James Chen. 2 Sep. 2025.

6. BlackRock Advisor Center. ' How private markets could improve retirement outcomes ,' by BlackRock Retirement Perspectives. 26 Jun. 2025.

How does the Pulp and Paper Industry Pension Plan interact with other retirement savings options that employees may have? Employees at the Pulp and Paper Industry are encouraged to understand the implications of their pension benefits when considering their overall retirement strategy. Given the complexity of retirement planning, how should one factor in the Pulp and Paper Industry Pension Plan alongside personal savings, employer-matched contributions, and other investment accounts?

Pension Plan Interaction with Other Retirement Savings: Employees in the Pulp and Paper Industry should consider the Pension Plan as a foundational part of their overall retirement strategy. When planning for retirement, it's crucial to balance the pension benefits alongside personal savings, employer-matched contributions, and other investment accounts such as RRSPs or TFSAs. The Pension Plan, contributing a stable retirement income, can complement more flexible savings vehicles that provide additional liquidity and growth potential, especially considering tax implications and withdrawal strategies for an efficient retirement portfolio.

What are the key factors that determine the monthly pension payment upon retirement for employees in the Pulp and Paper Industry? Understanding the formula that calculates the pension benefits based on earnings, years of service, and the applicable rates is crucial for employees planning their retirement. Can you elaborate on how these elements work together to produce an individual's retirement income?

Key Factors Determining Pension Payments: The monthly pension payment for employees in the Pulp and Paper Industry is primarily calculated based on credited service, eligible earnings, and the applicable pension benefit rate. The formula integrates years of service with the employee's average earnings and the benefit accrual rate of 1.55%. This means the longer the employee's service and the higher their eligible earnings, the larger the pension payout. The calculation is also influenced by early retirement reductions or post-65 service, ensuring that employees' retirement income reflects their contribution history(Pulp_and_Paper_Industry…).

In what circumstances can employees of the Pulp and Paper Industry expect a reduction in their pension benefits, and what specific actions can be taken to mitigate this reduction? An in-depth examination of early retirement options, the choices available at different ages, and the financial implications is vital for long-term planning. What steps should an employee take before deciding to retire early?

Circumstances Affecting Pension Reductions: Employees of the Pulp and Paper Industry may face pension reductions if they retire before the age of 65. Early retirement between 55 and 65 incurs a reduction in pension benefits, ranging from 3% to 18%, depending on the age of retirement. To mitigate this reduction, employees can consider working longer or maximizing other retirement savings before electing early retirement. It's essential to review the pension reduction tables and consult the Plan Administrator to understand the financial implications of early retirement(Pulp_and_Paper_Industry…).

How are employee contributions structured under the Pulp and Paper Industry Pension Plan, and what is the impact of these contributions on overall retirement savings? Employees need to understand how their contributions, along with the employer's match, affect their future pension benefits. Could you detail the contribution rates and how they relate to the final pension payout?

Employee Contributions and Pension Benefits: Employees contribute 8% of their earnings to the Plan, while employers contribute 10%. These contributions directly impact the pension benefits, with higher contributions resulting in more substantial retirement payouts. Contributions stop once 2080 hours are paid within a plan year. Understanding how both employee and employer contributions accumulate is crucial for estimating future benefits and integrating them into overall retirement savings(Pulp_and_Paper_Industry…).

What is the process for employees of the Pulp and Paper Industry who experience a significant life event, such as marriage breakdown or disability, to adjust their pension plan? Employees need to be aware of the rights and options available to adjust their benefits in light of personal circumstances. What documentation is needed, and how does the process work?

Adjusting Pension Plan for Life Events: Significant life events such as marriage breakdown or disability allow employees to adjust their pension benefits. In the event of a marriage breakdown, 50% of the pension earned during the marriage may be split with the spouse, and specific forms and legal agreements are required for this process. Disability provisions may allow the employee to continue earning credited service without contributing. Employees should submit medical evidence or legal documents as necessary to the Plan Administrator to process adjustments(Pulp_and_Paper_Industry…).

How can employees in the Pulp and Paper Industry ensure that their personal information remains secure while accessing their pension benefits? Given the sensitive nature of financial information, it is crucial for employees to understand the privacy measures in place. What steps are taken to protect personal data, and what should employees do if they have concerns regarding their privacy?

Securing Personal Information: The Pulp and Paper Industry Pension Plan takes employee privacy seriously by using appropriate safeguards to protect personal information. Data is only shared with pension professionals for plan administration purposes. Employees can access their personal information and correct inaccuracies by contacting the Plan Administrator. If employees have concerns about data security, they should report them immediately to ensure their privacy is maintained(Pulp_and_Paper_Industry…).

What resources are available for employees of the Pulp and Paper Industry to access more detailed information about their pension benefit calculations and options? Seeking information through the right channels is essential for making informed decisions about retirement planning. Can you provide an overview of the tools and resources available to employees for understanding their benefit entitlements?

Resources for Pension Information: Employees have access to a variety of resources to help them understand their pension benefits. These include the Plan’s official web portal, personalized pension statements, and direct assistance from the Plan Administrator. For more detailed information, employees can consult their collective agreement and Plan documents, or they may contact the Administrator for personalized pension projections and guidance(Pulp_and_Paper_Industry…).

In terms of the Pulp and Paper Industry's collective agreements with the Public and Private Workers of Canada (PPWC) or Unifor, how do those agreements affect pension benefits? Understanding these agreements is critical for employees as they directly influence the terms of the pension plan. Can you explain how these agreements shape the benefits structure and payout options?

Impact of Collective Agreements: Collective agreements between the Pulp and Paper Industry and unions like PPWC or Unifor directly influence pension plan provisions. These agreements determine contribution rates, eligibility, and benefit structures. Changes in collective agreements may lead to adjustments in pension benefits, so employees should stay informed about any updates to their collective agreement terms(Pulp_and_Paper_Industry…).

What implications does the Pulp and Paper Industry Pension Plan have for employeesâ€™ beneficiaries, and what should employees know about designating a beneficiary? It is imperative for individuals to understand the importance of beneficiary designations. What processes should employees follow to ensure that their beneficiaries are appropriately designated and informed?

Pension Plan for Beneficiaries: Employees must ensure they appropriately designate a beneficiary for their pension benefits. In the event of death before retirement, the spouse or designated beneficiary will receive the pension benefits. If no beneficiary is designated, benefits are paid to the estate. Employees should complete and update their beneficiary designation form regularly to reflect their wishes and avoid legal complications(Pulp_and_Paper_Industry…).

How can an employee in the Pulp and Paper Industry contact the Plan Administrator for assistance regarding their pension benefits? Knowing the proper contact information and support channels is essential for employees navigating their retirement benefits. What are the best ways to reach out for help, and what types of inquiries can the Plan Administrator assist with?

Contacting the Plan Administrator: Employees can contact the Plan Administrator, LifeWorks, for assistance with their pension benefits. They can reach out by phone, email, or mail for inquiries about retirement estimates, pension adjustments, or general benefit calculations. The Administrator provides essential support for processing retirement, termination, and death benefits(Pulp_and_Paper_Industry…).