Plan Termination Choices

    Make your election by July 1

    A team of Financial Advisors from NFP is also available to walk you through your options and help determine which choice may be best for you.

    Sample Company's decision to terminate the Plan gives you the opportunity to receive your pension benefit now, even if the Plan would not normally allow for your benefit to start immediately. Everything you need is in your Election Kit. If you don’t make an election and submit any required documentation by July 1, 2025, you’ll default to Choice 3. Your Election Kit outlines the choices available to you, which include:

     

    If you don’t elect a lump sum during this election period, responsibility for paying your pension benefit will transfer to an insurance company.

    What choices are available?

    Choice 1—Take a Single Lump Sum Payment

    You may elect to receive your Plan benefit as a single lump sum payment. If you do, you’ll receive your lump sum payment in August 2025 and no future benefits will be payable from the Plan.


    Under Choice 1, you have the option to: roll over your lump sum payment to an IRA or another qualified plan; receive a cash payment of your lump sum amount, subject to taxation and withholding; or do both by rolling over a portion of your lump sum payment and taking the rest as cash.

    Ready to elect? Click or scan to watch this helpful video on how to elect Choice 1.

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    Choice 2— Begin Monthly Pension Payments

    You may elect to receive your benefit as a series of monthly payments beginning August 2025 – even if you haven’t met the Plan’s retirement eligibility requirements. Payment options vary. Review your Election Kit for the payment options available to you.

    Ready to elect? Click or scan to watch this helpful video on how to elect Choice 2.

    DFIN Choice2

    Choice 3— Wait to Take Your Pension Payment

    You may choose to wait to receive your benefit until you meet the Plan’s retirement eligibility requirements. When you’re ready to start your benefit, you’ll contact the insurance company and choose from any of the payment options available under the Plan. Note that a lump sum payment may not be available if you choose to wait to take your benefit.

    Ready to elect? Click or scan to watch this helpful video on how to elect Choice 3.

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    Questions?

    NFP is here to help!

    If you have questions about this opportunity, call the Sample Company    Plan Liquidation Center toll-free at 1-800-555-5555. Representatives are available between 9 a.m. and 5 p.m., Central time, Monday through Friday, excluding holidays. Personal advice will not be provided.

    Schedule a meeting with an NFP Financial Advisor to discuss your options and receive guidance on which choice may be best for you. Click HERE to schedule your meeting or contact us at NFPFinancialEducation@nfp.com.

    Tips

    1: Note the Deadline
    You have a limited amount of time to make your election. Your election must be submitted by July 1, 2025. If you are mailing in your election, it must be postmarked by this date.


    Caution! Do not wait until the last minute to make your election. Depending on your choice, you may need to make additional decisions, gather requested documents (such as birth and marriage certificates), set up an account to receive a rollover payment, or have a notary witness your spouse’s consent to your election. Please allow time for these additional steps.


    2: Discuss your Options with Others
    You may want to get input from others to decide which option is right for you before making your decision. Plus, if you choose to take a single lump sum payment, you may want to talk to a financial advisor who can help you understand how to invest it or roll it over so it will be available when you need it in retirement. Protect yourself. Make sure you speak with a financial advisor that you trust.


    3: Plan for Taxes
    You need to consider how and when your benefit will be taxed. In general:

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    These rules are complex. For more details, including considerations for withholding, see the Special Tax Notice included in your Election Kit. You may also want to consult with a tax advisor.


    4: Consider a Rollover
    If you take your benefit as a single lump sum payment, you may want to roll over all or part of your payment. If so, you need to decide where to send your benefit—and set up an account if you don’t have one already—before you return your paperwork. Please find out the requirements your IRA or retirement plan provider has for the rollover, such as the exact financial institution name and account number. A check will be sent to you made out to your rollover account. You will need to forward it after you receive it.

     

    5: Double Check your Election Form
    To avoid having your election rejected, make sure you:


    • Complete each section and provide any required information, such as proof of birth or marriage
    • Sign and date the election form
    • If you are married and it’s required, have your spouse’s signature notarized after you make your election


    You should keep a copy of your election form for your records.

    FINDING A NOTARY

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      Plan Termination Choices

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