We are reaching out to our valued clients to advise them of several retirement plan issues you may or may not be aware of…
All Dow/Corteva employees will need to check their 401K contribution amounts
All Corteva employees will need to check their 401K contribution amounts with both Fidelity and the current Merrill Lynch 401K to be sure they have not exceeded the current year limits. The reason for this is due to the Dow/Corteva change and the ERISA plan moving to Merrill Lynch. Our understanding is the two plans did not communicate so the Merrill Lynch plan does not know how much was allocated to the old Fidelity plan. We also understand Corteva payroll will allow an employee to max out their contributions with Merrill Lynch and not incorporate previous Fidelity contributions (January thru April). This is what created the potential for excess contributions to the company plan.
To avoid the excess contribution, please review your 401K contributions with both custodians and be sure you will not be over the annual ERISA plan limits. For tax year 2019, the limits are $19K for individuals under age 50 and $25K for individuals 50 and older. IF there is an excess contribution, you will need to contact the custodian to determine their course of action to advise of remedy.
GE pension plan changes
GE recently announced that it is taking three actions related to its U.S. retirement benefits as part of its strategic priority to improve its financial position. See press release below.
Headlines and Resources
U.S. DuPont pension plan participants who are term vested eligible and who will be transitioning from heritage DuPont
Info from www.dupontbenefits.com
Ed Breen, Chief Executive Officer, DowDuPont, announced that the heritage U.S. DuPont pension obligations will be assumed fully by Corteva Agriscience at the time of the transition to New DuPont and Corteva Agriscience.
The June 1, 2019, transition will impact New DuPont employees as follows:
• Since New DuPont will no longer be a participating employer in the Pension Plan, New DuPont employees who participate in the Plan and meet the Plan commencement requirements in terms of age and service will be eligible to commence pension benefits as of June 1, 2019.
• For employees who participate in the Plan, future service with New DuPont will not be recognized in determining eligibility for pension benefits as of June 1, 2019.
Click here to view this pdf.
Pension Participants Claim ERISA Breaches in Dow DuPont Pension Transfer
Article from www.plansponsor.com
A new Employee Retirement Income Security Act (ERISA) lawsuit filed in the U.S. District Court for the Northern District of California calls into question actions taken by pension plan fiduciaries during and after the 2017 merger of Dow Chemical Co. and E.I. du Pont de Nemours and Co.
As noted in the complaint, with this merger, the combined entity, known as DowDuPont, became the largest chemical conglomerate in the world. According to the plaintiff, the two historical companies had intended and planned from the beginning to separate into three wholly independent companies and move the DuPont Pension and Retirement Plan to one of the newly formed companies, known as Corteva Agriscience.
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GE Announces U.S. Pension Plan Actions
Article from GE Reports
October 7, 2019, BOSTON — GE (NYSE:GE) announced today that it is taking three actions related to its U.S. retirement benefits as part of its strategic priority to improve its financial position:
1. Freezing the U.S. GE Pension Plan for approximately 20,000 employees with salaried benefits, and U.S. Supplementary Pension benefits for approximately 700 employees.
2. Pre-funding approximately $4-5 billion of estimated minimum ERISA funding requirements for 2021 and 2022.
3. Offering a limited time lump-sum payment option to ~100,000 eligible former employees who have not started their monthly U.S. GE Pension Plan payments
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