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Unisys Corporation Employees Should be Aware that the Student Loan Payment Pause was Extended Through January 2022

How Unisys Corporation employees can benefit from the extended federal student loan payment pause: This paper aims to provide a framework for Unisys Corporation employees to determine how this temporary relief can most benefit their financial situation,' suggests Tyson Mavar, a representative from The Retirement Group, a division of Wealth Enhancement Group.

Wesley Boudreaux of The Retirement Group, a division of Wealth Enhancement Group, suggests that Unisys Corporation employees should take advantage of the additional student loan payment freeze to review their financial situation and possibly readjust their financial future during the period of no payments.

In this article, we will cover:

The extension of the federal student loan payment pauses: A discussion of the history and future of the payment moratorium, including the last extension date set by the U.S. Department of Education.

The effects on the financial domain for Unisys Corporation employees: How the payment pause affects both personal and Parent PLUS Loans, important for financial planning especially for those nearing retirement.

Is there a possibility of student loan forgiveness? What is happening with student loans now and what may happen after the pause – and what borrowers should think about.

As a Unisys Corporation employee, you or many in your area may have expected to begin student loan payments (for yourself or your children) this coming month. The U.S. Department of Education announced on August 6, 2021, that it extended the suspension of federal student loan payments to January 31, 2022. At the time of this writing, the payment moratorium that is currently in effect for millions of federal student loan borrowers was set to expire on September 30, 2021.

The Department noted that this would be the final extension. In his statement, Miguel Cardona, the U.S. Secretary of Education.

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How many payments pauses have there been?

This means that many Unisys Corporation employees' children may need to track student payment pauses if they attend college. Federal student loan repayment has been paused four times since the beginning of the coronavirus pandemic. Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March 2020 for six months (through September 2020). The second and third payment pauses were extended through January 2021 and September 2021, respectively, by presidential executive order. The fourth and final extension has been until January 31, 2022. Therefore, the repayment of federal student loans will begin on February 1, 2022.

Unisys Corporation employees nearing retirement should be aware that the extended student loan payment pause applies not only to their potential loans but also to Parent PLUS Loans. Parent PLUS Loans are federal loans that parents can take out to help pay for their children's education. The extension offers help for borrowers and parents who may have been expecting loan repayment. It is important for Unisys Corporation employees to understand this aspect of the extension because it can impact their financial planning and potential expenses in the coming months.

As the end of the pause approaches, the Department of Education will begin notifying borrowers about this final extension and will disseminate resources and information on how to plan for repayment.

Does interest continue to accrue during the moratorium period?

This means that Unisys Corporation employees should know that there is no accrual of interest during the moratorium period. In other words, the interest rate is zero percent.

Can borrowers make payments if they want to during this time?

Consider, if you are a Unisys Corporation employee, how borrowers can elect to continue making their monthly student loan payments during the moratorium period. The entire amount of a borrower's payment is applied to the principal. During this period, borrowers may also choose to make partial payments.

Do private student loans qualify for the payment pause?

In addition, Unisys Corporation employees should remember that private student loans are not included. Only federal government-held student loans are eligible. This includes Department of Education-held Federal Direct Loans (including PLUS Loans), Federal Perkins Loans, and Federal Family Education Loan (FFEL) Program loans.

Is student loan forgiveness likely when the payment pause ends?

The answer is most likely not. The Biden administration has not taken any steps in this direction and has given no indication that it will do so. While some legislators have expressed support for forgiving a certain amount of federal student loan debt per borrower, the Biden administration has not taken any steps in this direction and has given no indication that it will do so. When the delay expires on January 31, 2022, borrowers must be prepared to begin repaying their loans. The consumer should contact their loan servicer to inquire about requesting an individual deferment or forbearance in the event of continued financial hardship.

The extension of the student loan payment pause for Unisys Corporation employees can be likened to a temporary suspension of toll fees on a bridge. You are a commuter who frequently uses a toll bridge on your way to work. One day, the bridge authority decides to suspend all toll fees for the next few months.

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Therefore, you can save a lot of money during this period and use the money elsewhere. In the same way, Unisys Corporation employees, who may have been expecting to start making student loan payments, have an extra period in which they can suspend those payments. This pause gives them a financial relief, enabling them to worry less about other important aspects of their financial planning, like retirement. Just as the toll fees will eventually resume, student loan payments will also resume after the extended pause.

Sources:

At the Request of President Biden, Acting Secretary of Education Will Extend Pause on Federal Student Loan Payments. U.S. Department of Education, 21 Jan. 2021, www.ed.gov/news/press-releases/biden-administration-extends-student-loan-pause-until-january-31-2022 .
Biden, Joseph R. Jr. 'Statement on Extending the Pause on Federal Student Loan Repayment.' Government Printing Office, 6 Aug. 2021, www.govinfo.gov/content/pkg/DCPD-202100643/pdf/DCPD-202100643.pdf .
Biden Administration Extends Student Loan Pause Until January 31, 2022. U.S. Department of Education, 6 Aug. 2021, www.ed.gov/news/press-releases/biden-administration-extends-student-loan-pause-until-january-31-2022 .
Li, Jason, et al. 'Economic Implications of Extending the Federal Student Loan Payment Pause.' Brookings Institution, Sept. 2021, www.brookings.edu/analysis/economic-implications-of-extending-student-loan-pause/ .
Horowitz, Juliana Menasce, and Ruth Igielnik. 'Survey: Challenges of Student Loan Repayment.' Pew Research Center, Oct. 2021, www.pewresearch.org/fact-tank/2021/10/student-loan-repayment-challenges .

What specific retirement options are available to employees of Unisys, and how do these options vary in terms of financial benefits, including considerations for early retirement vs. normal retirement age? In the context of the Unisys Pension Plan, what implications do these options have on long-term financial planning for employees at Unisys?

Retirement Options at Unisys: The Unisys Pension Plan provides options for normal, early, and unreduced retirement. Normal retirement is at age 65, and early retirement is available between ages 55 and 65, though benefits may be reduced for early retirement. Employees with at least 20 years of vesting service can retire without reductions from age 62. These options influence long-term financial planning as choosing early retirement may result in reduced benefits due to longer payout periods(Unisys_Corporation_Summ…).

How are pay credits calculated under the Unisys Pension Plan, and what factors might influence an employee's monthly pay credit pertaining to their Retirement Accumulation Account? Moreover, what are the potential impacts on retirement benefits if employees experience changes in their eligible pay during employment at Unisys?

Pay Credits Calculation: Pay credits under the Unisys Pension Plan were calculated at 4% of an employee’s eligible monthly pay from January 1, 2003, through December 31, 2006. Interest credits continue to accrue after this period until benefits are distributed. Changes in an employee’s eligible pay during employment will affect the total pay credits, thus impacting their retirement accumulation account(Unisys_Corporation_Summ…).

Can you explain the differences between credited service, eligibility service, and vesting service as defined by Unisys? What importance do these distinctions have on an employee's ability to access their retirement benefits, and how does each type of service contribute to the overall calculation of an employee's pension under the Unisys plan?

Service Types at Unisys: Credited service refers to the period used to calculate pension benefits, vesting service determines eligibility for receiving benefits, and eligibility service is the time required to become a participant in the plan. These distinctions are critical because credited service directly affects the benefit calculation, while vesting and eligibility service ensure employees qualify for benefits(Unisys_Corporation_Summ…).

What steps must Unisys employees take to initiate their pension benefits, and what specific information will they need to provide during the application process to ensure a smooth transition into retirement? Additionally, how does Unisys support employees in navigating this process, and what potential delays should employees be aware of?

Initiating Pension Benefits: To initiate pension benefits, employees must contact the Unisys Benefits Service Center and apply for their benefits. They must provide personal and employment details, including retirement age and chosen payout method (lump sum or annuity). Unisys supports employees through this process via their benefits service center, but delays can occur due to incomplete information or processing times(Unisys_Corporation_Summ…).

In what ways does the Unisys Pension Plan ensure protection for employees' benefits under federal law, particularly through the Pension Benefit Guaranty Corporation (PBGC)? How does this insurance work in practice, and what types of benefits are specifically covered or not covered by the PBGC for Unisys employees?

PBGC Insurance: Unisys Pension Plan benefits are protected under the Pension Benefit Guaranty Corporation (PBGC), ensuring employees receive guaranteed benefits even if the plan is terminated. However, certain benefits, such as non-qualified plans or supplemental executive retirement plans, may not be covered under PBGC(Unisys_Corporation_Summ…).

How might changes or amendments to the Unisys Pension Plan affect existing and future employees? In particular, what provisions does Unisys have in place to communicate significant changes in the plan to its employees, and what rights do employees have under ERISA if they disagree with these changes?

Impact of Plan Amendments: Any amendments to the Unisys Pension Plan could affect both existing and future employees. Unisys communicates significant changes through written notifications. Employees have rights under ERISA, including the right to challenge plan changes if they disagree with amendments that negatively affect their benefits(Unisys_Corporation_Summ…).

What considerations should employees of Unisys keep in mind regarding their benefits if they are nearing retirement age? Additionally, how can employees effectively prepare for potential changes to their health or work circumstances that could impact their retirement planning, given the options provided by Unisys?

Retirement Preparation: Employees nearing retirement should consider the timing of benefit elections, such as early or normal retirement. Preparing for potential health changes or shifts in work circumstances is essential, as these factors may alter retirement needs and benefit choices under the Unisys Pension Plan(Unisys_Corporation_Summ…).

What are the options available for Unisys employees who wish to designate beneficiaries for their retirement benefits, and how do these designations affect benefit distributions? Specifically, what criteria must be met for naming a contingent annuitant, and what restrictions might apply under the Unisys plan?

Beneficiary Designation: Unisys employees can designate beneficiaries for their retirement benefits. If a spouse is not the beneficiary, spousal consent may be required. A contingent annuitant can also be designated under certain restrictions, affecting the distribution of retirement benefits based on Unisys’ rules(Unisys_Corporation_Summ…).

How does the Unisys Benefits Service Center operate, and what resources are available for employees seeking information about their pension plans or retirement benefits? What are the best practices for contacting the Unisys Benefits Service Center to ensure that employees receive timely and accurate answers to their inquiries?

Unisys Benefits Service Center: The Unisys Benefits Service Center provides employees with resources for pension inquiries and applications. Best practices for contacting them include preparing all necessary personal and employment details to ensure timely and accurate responses(Unisys_Corporation_Summ…).

What are the most important elements of the Unisys Pension Plan that employees should review before retirement, and how can employees leverage the information provided in the summary plan description to optimize their retirement income? What role does employee education play in enhancing knowledge about these elements and ensuring informed decision-making about retirement benefits at Unisys?

Critical Pension Plan Elements: Employees should review their Retirement Accumulation Account, service years, and payout options before retirement. The summary plan description is a valuable resource for understanding how to maximize retirement income, and Unisys offers educational tools to help employees make informed decisions(Unisys_Corporation_Summ…).