Navigating the GE Pension Plan

Regular Pension:

• Type: “Qualified Pension” with protection from the Pension Benefit Guaranty Corp (PBGC). Eligibility: Those hired after 12/31/2011 were not eligible for the pension.
• Bridge Contributions: Those eligible for pension and then had it frozen received 2% “Pension Bridge” contributions into their 401(k) for 2021 and 2022.
• Status: Frozen on December 31, 2020.
• Early Retirement Factors: FRA is 60 with no reduction in benefits if hired before 1/1/2005; FRA is 65 with no reduction in benefits if hired between 1/1/2005 – 12/31/2011; SERO package allows for pension prior to 60, must be 55 with 10 years of service or 25 years PQS to qualify.

Special Early Retirement Option (SERO):

• Eligibility: Must be 55 years old with 10 years of service or 25 years of PQS to qualify.

Pension Supplement:

• Regular Supplement: $31 x Years of Pension Benefit Services.
• Special Supplement: $375 per month.
• Total Pension Supplement: Regular + Special Supplement.
• Paid until a retiree is 80% eligible for their full retirement age for Social Security.

Executive Retirement Benefit (ERB):

• Eligibility: Executive Pension for employees where income is over the annual compensation limits for the qualified pension with a payout over 10 years.
• Condition: MUST remain at GE until normal retirement age to receive.

Personal Pension Account (PPA)/Voluntary Pension Account (VPA):

• Status: Closed when the pension froze.
• PPA: Forced savings by GE – 3% of income above $100k.
• VPA: Voluntary savings elected by employee – 3% of income below $100k.
• Distribution Options PPA/VPA can be rolled over as lump sum at retirement or taken as monthly income.

Special Early Retirement Option (SERO Package):

• When considering the SERO package, it’s important to evaluate whether taking early retirement aligns with your long-term financial goals. By choosing SERO, you can retire as if you were 60 years old, which could provide financial benefits or flexibility depending on your situation. It’s important to talk to a financial advisor who can help assess whether early retirement fits into your overall financial plan.

Survivor Benefits:

• Review the options for providing benefits to your spouse or other beneficiaries after your death. These options can affect the amount of your monthly benefit, so it’s important to consider your family’s needs.

Consider Your Retirement Age:

• If possible, aim to retire at or after the plan’s normal retirement age to receive full benefits. Early retirement can result in losing out on the pension supplement.

Coordinate with Other Retirement Savings:

• Integrate your pension plan with other retirement savings accounts, such as 401(k)s and IRAs. A financial advisor can help you create a comprehensive retirement plan that includes all sources of retirement income.

Take Advantage of Survivor Benefits:

• Carefully consider the survivor benefit options available in your pension plan. While selecting a survivor benefit may reduce your monthly pension, it can provide financial security for your spouse or dependents.