Top Pension Questions for Snap-on Employees
These are the most frequently asked questions for Snap-on employees from our weekly webinars.
1. Question:
What are the key eligibility criteria for participating in the Snap-on Incorporated Retirement Plan for Hourly Employees, and how do these criteria differ based on the date of hire for associates at Snap-on Incorporated?
Answer:
Eligibility Criteria: To participate in the Snap-on Incorporated Retirement Plan for Hourly Employees, an individual must have been a full-time hourly associate employed at the Milwaukee, Wisconsin facility before January 1, 2009, and a member of the Teamsters Local No. 200 collective bargaining unit. Associates hired or rehired on or after January 1, 2009, are not eligible for this plan. Part-time hourly associates become participants on their first employment anniversary.
2. Question:
In what ways can Snap-on Incorporated associates enhance their retirement benefits, particularly considering the balance between the various retirement income sources such as the Company’s retirement plan, Social Security, and personal savings?
Answer:
Enhancing Retirement Benefits: Snap-on Incorporated associates can increase their retirement benefits by combining contributions from the company’s retirement plan with personal savings and Social Security. Strategic planning involves considering the timing of benefits commencement, choosing the right distribution options, and maintaining a diversified investment portfolio outside the company-sponsored plans.
3. Question:
How does the Snap-on Incorporated Retirement Plan determine the monthly pension benefits for retirees, particularly focusing on the formula that involves years of credited service and the specified benefit levels?
Answer:
Determination of Monthly Pension Benefits: The monthly pension benefits under the Snap-on plan are determined by a formula that multiplies the years of credited service by a specified benefit level (a flat dollar amount). For example, as of January 1, 2011, the benefit rate was $29.00 times the number of years of credited service.
4. Question:
What options are available to Snap-on Incorporated employees for beginning to receive their pension benefits, and how can these options impact their overall retirement income?
Answer:
Pension Commencement Options: Employees can start receiving pension benefits under several conditions, such as normal retirement at age 65, early retirement (age 50 or 55 with 15 years of vesting service depending on the hiring date), or deferred retirement beyond age 65. Each option impacts the overall retirement income differently due to adjustments in benefit calculations for early or deferred commencements.
5. Question:
How does the Snap-on Incorporated Retirement Plan account for potential early retirement, and what implications does early retirement have on the amount of monthly pension benefits received by retirees?
Answer:
Early Retirement Implications: Early retirement options allow for pension commencement before the normal retirement age, albeit with reduced benefits. The reduction is calculated to be actuarially equivalent to what would have been received if pension payments started at age 65, adjusting for the longer expected payment period.
6. Question:
In the event of the death of an employee before retirement, how does Snap-on Incorporated handle survivor benefits for spouses or beneficiaries, and what steps must be taken to confirm these benefits are in place?
Answer:
Survivor Benefits: If an employee dies before retirement, survivor benefits are available for spouses or beneficiaries, provided the employee was vested. The benefits payable depend on whether the employee was married and the timing relative to retirement eligibility.
7. Question:
What are the various forms of payment available for retirees under the Snap-on Incorporated Retirement Plan, and what factors should an employee consider when choosing between these payment options?
Answer:
Payment Forms for Retirees: Retirees have various payment options, including life annuities with guaranteed payment periods or joint and survivor annuities that provide continued income to a spouse after the retiree’s death. The choice impacts the monthly payment amounts and the continuity of income for beneficiaries.
8. Question:
How does Snap-on Incorporated's defined benefit plan address disability pensions, and what specific qualifications must an employee meet to access these benefits through the Company?
Answer:
Disability Pensions: The plan provides disability pensions for employees who become permanently and totally disabled, provided they have completed at least 10 years of vesting service. The disability pension is calculated similarly to early retirement but without the early commencement reduction.
9. Question:
In cases where an employee seeks to transfer employment within Snap-on Incorporated or to a subsidiary, how does this impact their credited service and eligibility under the Retirement Plan?
Answer:
Impact of Employment Transfers: Transferring employment within Snap-on or to its subsidiaries can affect credited service and eligibility for the retirement plan, especially if the subsidiary is not a participating employer or if the transfer involves a change in retirement plan coverage
10. Question:
How can employees at Snap-on Incorporated contact the Pension Helpline for assistance with their retirement benefits, and what information should they have ready when reaching out to help with a smooth inquiry process?
Answer:
Contacting Pension Helpline: Employees can contact the Snap-on Pension Helpline for assistance with their retirement benefits. It’s recommended to call the helpline up to 90 days before the planned start of benefit payments to facilitate the process. The helpline number is 1-866-237-8524, and employees should select the “pension” option.