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Cash Balance Election Window

The TVARS Board today approved a July through August window during which Cash Balance employees who had less than 10 years of service as of 10/1/16 may choose to transfer their Cash Balance accounts to the 401(k). Cash Balance employees who had 10+ years of service as of 10/1/16 may switch to receiving the 401(k) only benefit going forward. They also may choose to transfer their Cash Balance account to the 401(k) if they switch to receiving the 401(k) only benefit going forward.

Please be careful and understand all that you are giving up if you make any of these elections. They are completely voluntary. No changes will be made if you do nothing. Look for a letter from Fidelity soon to explain in more detail. Two different letters will be sent. One to those who had < 10 years, and another to those who had 10+ years. If you choose to make any changes, they will become effective October 1, 2018.

I am working with the TVARS staff on a list of frequently asked questions and answers that I believe will help everyone better understand the impacts of making these choices. I will share them on my blog as soon as they are finished. Please subscribe to my blog to get automatic email notifications of future blog posts.





Comments

  1. UnknownMay 25, 2018 at 11:23 PM

    According to this article in Kiplenger... see here:

    https://www.kiplinger.com/article/retirement/T047-C000-S004-the-pros-and-cons-of-cash-balance-plans.html

    "The [cash balance] plans can be more costly to employers than 401(k) plans, in part because an actuary must certify each year that the plan is properly funded,"

    Is it possible this is ploy by TVA to avoid an annual actuary certification that the TVA plan is properly funded?

    ReplyDelete

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