Navigating Your Retirement Options: A Comprehensive Guide for Knights of Columbus 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 Knights of Columbus

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 Knights of Columbus 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 Knights of Columbus re-hire?
Should I leave my money in the Knights of Columbus 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 Knights of Columbus 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 Knights of Columbus 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.

What are the factors that determine an employee's retirement benefits under the Christian Brothers Employee Retirement Plan, and how are these factors influenced by an employee's length of service and compensation? Understanding the nuances of these factors can help employees plan for their retirement more effectively. Additionally, how does the recent shift in tenure and wages in the industry affect the calculation of these retirement benefits for employees of the Christian Brothers organization?

Factors Determining Retirement Benefits: Under the Christian Brothers Employee Retirement Plan (CBERP), retirement benefits are determined by a combination of years of continuous service, credited past and future service, and compensation. The benefit formulas consider W-2 earnings and past service contributions if applicable. The length of service increases the number of credited years, leading to higher benefits, while higher compensation during service periods also boosts the overall calculation(Christian_Brothers_Empl…).

How does the Christian Brothers Employee Retirement Plan define "vesting" and what are the implications for employees regarding their retirement benefits as outlined in the plan? Furthermore, what strategies can employees implement to ensure they maximize their vesting and thus, their retirement fund contributions during their tenure with the Christian Brothers organization?

Vesting: Vesting refers to an employee's right to receive retirement benefits, and under CBERP, employees become vested after 4 years and 9 months of continuous service. Employees can always receive the return of their contributions plus interest, but to maximize vesting, they should maintain continuous employment for the full vesting period(Christian_Brothers_Empl…).

Can you elaborate on the "Golden Rule of 90" regarding early retirement and the criteria that must be met for employees of Christian Brothers to qualify for this benefit? How does meeting this qualification potentially affect an employee's retirement income stream and financial planning going forward?

Golden Rule of 90: The "Golden Rule of 90" allows employees to retire early without a reduction in benefits if their age and years of service sum to 90, provided they are at least 55 years old. Meeting this qualification offers employees a full retirement benefit without the reduction typically associated with early retirement(Christian_Brothers_Empl…).

What steps should Christian Brothers employees take if they become temporarily disabled and wish to initiate their retirement benefits? Additionally, what provisions does the Christian Brothers Employee Retirement Plan offer to ensure that the disability status does not adversely impact their overall retirement benefits?

Temporary Disability and Retirement Benefits: Employees who become temporarily disabled may initiate retirement benefits if they meet Social Security’s disability requirements. If qualified before July 1, 2018, employees continue to accrue benefits until normal retirement without employer contributions. Starting benefits early due to disability results in a cessation of future accruals(Christian_Brothers_Empl…).

In the context of re-employment after retirement, what specific conditions must Christian Brothers employees be aware of under the retirement plan regarding their eligibility for benefits? Furthermore, how can returning to work impact their benefits and what should they consider when making this decision?

Re-employment After Retirement: Employees who return to work for a participating employer after retirement must be cautious, as working more than the required hours will suspend their retirement benefits. This could reduce their income stream and interrupt the collection of benefits(Christian_Brothers_Empl…).

What methods does the Christian Brothers Employee Retirement Plan outline for employees to designate beneficiaries for their retirement benefits, and how do those designations change upon events like marriage or divorce? Understanding these provisions is crucial for employees to ensure their final wishes regarding benefits are honored.

Beneficiary Designations: CBERP allows employees to designate beneficiaries for their retirement benefits. These designations can be updated after major life events such as marriage or divorce. Employees should ensure that their designations reflect current relationships to ensure that their wishes are honored(Christian_Brothers_Empl…).

How can employees of Christian Brothers effectively contact the benefits department for further clarification on their retirement benefits? What information should they prepare to facilitate a productive conversation regarding the specifics of their retirement plan?

Contacting the Benefits Department: Christian Brothers employees can contact the Benefits Department at 800-807-0700 or via email at rpscustomerservice@cbservices.org. Employees should prepare personal and employment details, along with specific questions about their plan, to facilitate a productive conversation(Christian_Brothers_Empl…).

What are the available forms of benefit distribution upon retirement for employees in the Christian Brothers organization, and how does the choice between these options affect overall retirement security? Employees must weigh their options carefully to ensure they select a distribution method aligned with their financial needs.

Benefit Distribution Forms: CBERP offers several forms of benefit distribution, including life-only options and joint and survivor annuities. The choice between these options significantly affects retirement security. For example, choosing a joint and survivor annuity reduces the primary benefit but provides ongoing income for a spouse(Christian_Brothers_Empl…).

How does the Christian Brothers Employee Retirement Plan address potential changes to the plan and the rights of employees in such instances? Understanding the procedures in place for plan amendments is vital for employees to stay informed about their benefits and rights.

Plan Amendments: CBERP includes provisions for amending the plan. Employees' rights to accrued benefits are protected, meaning that any modifications will not affect benefits that have already been earned. Understanding these protections can help employees stay informed about changes(Christian_Brothers_Empl…).

Can you explain the relationship between Social Security benefits and the retirement benefits provided through the Christian Brothers Employee Retirement Plan? Specifically, how will employeesâ€™ Social Security benefits interact with their retirement funds, and what should they consider when planning for a holistic retirement income strategy?

Interaction with Social Security: CBERP retirement benefits do not reduce or integrate with Social Security benefits. Employees need to consider both sources of income separately when planning their overall retirement strategy(Christian_Brothers_Empl…).