Navigating Your Retirement Options: A Comprehensive Guide for Becton Dickinson Employees on 401(k), Social Security, and Pension Choices

I am aware many of you are at a significant cross-road in life….. either voluntarily or involuntarily, may be leaving Becton Dickinson

There are several options that you may come across, along with a list of questions you may have when that time comes.

With varying topics to go over when you're retiring, communicating with an adviser who can recommend you solid advice on how to proceed for life after Becton Dickinson has many benefits. As a retiree, you will need to prepare for the collection on pension, 401K, and social security. With the guidance of a financial adviser, you will be able to understand how to choose the best route for your cash-balance pension, 401K, individual IRA, etc.

Should I keep my options open as a Becton Dickinson re-hire?
Should I leave my money in the Becton Dickinson 401K plan? Why or why not?
What are the benefits to an individual IRA?
If I roll the money over, will I need to pay taxes?
How can I get more money into a Roth IRA or at least get Roth-IRA style tax benefits?
What are some steps I can take to maximize my retirement income?
How can I stabilize my retirement income, and be sure it doesn’t run out?
Should I take my cash balance pension, or leave it in the Becton Dickinson Pension Plan? And why?
What do I need to know about Social Security?
How best can I protect my spouse but not decrease my Pension Payout via the survivor benefit?

What's tough about these is that every situation is unique and quite different. Simply put, there is no “one size fits all” plan. There is truly no way to tell if your current financial guidance is really the best. As folks pay for planning services (fees based), their willingness to seek a 2nd opinion evaporates as they have already placed an initial investment in. They won't want to spend additional money to get a 2nd opinion which will inhibit them from comparing the advice they receive.

Good planning — or any planning — will always be better than none. But, an effective plan isn’t simply developed and then placed on auto pilot. You need to continuously reassess your decisions and direction.

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This theory is particularly relevant during big “transitions” in life. These would include getting a new job, leaving a job, retiring, the death of a loved one, kids leaving home, etc.

We understand these topics can be confusing and extensive. If you currently don’t have anyone to help run down your options, tax implications, and pros and cons of either your existing strategy OR if you simply just need a “2nd opinion” on your existing plan or planner, please let me know here so that I can reach out to current clients or referrals to assist you.

Your finances will inevitably be squeezed without the certainty of a regular income and any form of financial assistance can lower stress levels. Run a cash flow projection and budget before you leave the company to determine how to leave. Get a free consultation from an adviser who have years of experience servicing Becton Dickinson employees.

The first step is to run a cash flow to determine an adequate income. The cash flow will assist you in determining how to take severance. When receiving a pension, a cash flow will determine how much money you need to make to supplement the monthly retirement annuity. Take into mind, for a lot of people, it is recommended relocating for a year or two to reach your Mod-75. For more information on the Mod-75, take a look here. One of the costliest mistakes many people make is not relocating.

After running a cash flow, begin to construct your budget. First, make a list of your major household expenses (mortgage, rent payments, utility bills, etc.). Next, jot down all of your assets and sources of income (severance pay, unemployment benefits, savings, food stamps, and so on). Lastly, adapt your budget to fit with your new circumstances.

Trim any unnecessary outgoings, develop a plan for spending less, and consider contacting creditors to refinance your mortgage or reschedule any repayment plans. (You may be able to take a mortgage “payment holiday” in the short term.)

Knowing how much time your resources will allow you for job hunting can help you to keep stress and anxiety in check. After all, having time can be the difference between rushing to take the first mediocre job you can find, and finding a satisfying job that you’ll love. With a guide of a financial advisor, see if your severance can give you extended time to look for another job.

You may also need to consider taking on temporary or freelance work to bring in short-term cash. Keep this in mind, and look into it in the first few days after your departure.

We understand that this can be an emotional time, but remember, there's always light at the end of the tunnel.

How does the Becton Dickinson and Company defined benefit plan differ from the cash balance plan in terms of eligibility and benefit calculation? Employees at Becton Dickinson and Company should be aware of how their retirement options and benefit calculations are structured, especially considering the historical context and the changes made after

Defined Benefit vs. Cash Balance Plan: The Becton Dickinson and Company defined benefit plan and cash balance plan differ significantly in terms of eligibility and benefit calculations. The defined benefit plan, which was the original format, calculates benefits based on the employee's final average pay, age, and years of service. On the other hand, the cash balance plan, introduced in 2007, provides a hypothetical account balance that grows with defined pay and interest credits. For eligibility, new hires after January 1, 2018, cannot join either plan, reflecting a closure to new entrants. Those rehired or transferred within the company after this date also cannot accrue new benefits under the cash balance plan.

This question encompasses the differences in participation rules, the implications of being hired before or after January 1, 2018, and how various employment classifications affect benefits.

Pension Benefits Calculation: Under the BD Retirement Plan, pension benefits are calculated based on 'Total Compensation,' which includes various forms of income like base salary, bonuses, and other regular compensations. The benefit is determined by 'Credited Service' and 'Vesting Service,' impacting the final benefit amount. Vesting in the plan occurs after five years of service, ensuring that employees are entitled to benefits regardless of subsequent employment duration.

In what ways are pension benefits and service calculated under the Becton Dickinson and Company BD Retirement Plan? The complexities involved in determining the pension benefit calculation are crucial for employees to understand as they plan for retirement. A discussion on how Total Compensation, Credited Service, and Vesting Service impact the final benefit amount will provide clarity to employees regarding their financial planning as they approach retirement.

Maximum Benefit Limits: Employees should be aware of IRS-imposed limits on contributions and benefits under retirement plans. For 2018, the compensation limit recognized for pension calculations was $275,000, adjusted annually for inflation. This affects the projected retirement benefits and requires employees to stay informed about annual adjustments to plan accordingly.

What specific maximum benefit limits should employees at Becton Dickinson and Company be aware of regarding their retirement plans and how do these limits adapt annually? Understanding the implications of IRS limits for defined benefit plans and cash balance plans is vital for employees at Becton Dickinson and Company. This question would delve into how annual adjustments might affect their projected retirement benefits and the importance of staying informed about these limits.

Addressing Discrepancies or Denial of Benefits: If discrepancies or wrongful denials occur concerning retirement benefits, Becton Dickinson and Company employees should contact the Plan Administrator. The process includes filing claims and understanding the rights to appeal under the Employee Retirement Income Security Act (ERISA). This structured approach helps employees rectify issues with their retirement benefits effectively.

How can Becton Dickinson and Company employees address discrepancies in their benefit calculations or if they believe they have been wrongfully denied benefits? The processes for appealing decisions made regarding retirement benefits can greatly impact an employee's financial future. This question would outline the steps employees can take, including contacting the Plan Administrator and the importance of understanding their rights under the Employee Retirement Income Security Act (ERISA).

Role of Committees in Managing the Retirement Plan: The Plan Administrative Committee and the Investment Committee play critical roles in overseeing the BD Retirement Plan. The former handles the plan's administration, ensuring compliance and managing benefit claims, while the latter focuses on the investment of plan assets. Employees can seek clarification or get involved by attending committee meetings or contacting them directly for specific inquiries.

What roles do the Plan Administrative Committee and the Investment Committee play in managing the BD Retirement Plan of Becton Dickinson and Company, and how can employees get involved or seek clarification on their plans? Employees interested in understanding the governance of their retirement plan will benefit from knowing who oversees the administration and investment of their benefits and how they can participate in discussions or seek advice.

Impact of Early Retirement: Early retirement affects the calculation of pension benefits, which are reduced based on the number of years retirement is taken before the normal retirement age. The plan allows for early retirement from age 55 with at least 10 years of service, with benefits reduced to compensate for the longer payout period.

How does the early retirement benefit impact employees at Becton Dickinson and Company, particularly in terms of eligibility and the calculation of reduced benefits? By exploring the conditions under which early retirement is permitted, along with calculations related to the reduction in benefits for taking early retirement, employees can make more informed decisions based on their personal circumstances.

Ensuring Accuracy of Retirement Benefits: To ensure accuracy in the calculation of retirement benefits, especially after changes in personal circumstances such as marital status or address, employees are encouraged to promptly update their information with HR. Regular reviews of their retirement plan statements and maintaining communication with the plan administrator are advisable practices.

What steps should employees of Becton Dickinson and Company take to ensure their retirement benefits remain accurate and up-to-date, especially after a change in personal circumstances? This question addresses the importance of regularly updating personal information and understanding the repercussions of life changes on retirement benefits, ensuring employees are proactive in managing their future.

Alternatives for Non-Eligible Employees: Employees not eligible for the BD Retirement Plan, possibly due to the timing of their hire or their role, should explore other retirement savings options like IRAs or the BD 401(k) Plan. These alternatives provide avenues for retirement savings, even for those not covered under the traditional pension plans.

What alternatives exist for Becton Dickinson and Company employees who are not eligible for the BD Retirement Plan, and how can they plan for retirement adequately? This discussion can help inform employees who may fall outside the eligibility criteria about other retirement savings options, such as Individual Retirement Accounts (IRAs) or employer-sponsored 401(k) plans.

Determining Survivors' Pensions: The survivor's pension is determined by the pre-retirement surviving spouse benefit, which generally provides a monthly benefit of 50% of the employee's pension, payable to the spouse for life after the employee's death. This emphasizes the importance of employees designating beneficiaries and understanding the impact of these decisions on their family's financial security.

In the context of the Becton Dickinson and Company BD Retirement Plan, how are survivors' pensions determined, and what options are available for employees regarding beneficiaries? Employees often overlook the significance of beneficiary designations. This question would clarify the process and options available for ensuring that survivors receive entitled benefits and the financial implications of different choices made regarding pension benefits for spouses and dependent children.

Contacting the Plan Administrator: Employees seeking more information about their retirement benefits should contact the Plan Administrator. Preparedness for such inquiries includes having detailed personal and employment information, understanding their current benefits status, and having specific questions or concerns about their plan benefits.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

Becton Dickinson announced a restructuring plan that includes significant layoffs and a shift in their global operations strategy. The company aims to streamline its operations and reduce costs amid a challenging economic environment.

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For more information you can reach the plan administrator for Becton Dickinson at 1 Becton Dr Franklin Lakes, NJ 7417; or by calling them at +1 201-847-6800.