Welcome to Empower Retirement Welcome to Empower Retirement . Danfoss USA Savings Plan . Add REC Title

  • View
    0

  • Download
    0

Embed Size (px)

Text of Welcome to Empower Retirement Welcome to Empower Retirement . Danfoss USA Savings Plan . Add REC...

  • Welcome to Empower Retirement

    Danfoss USA Savings Plan

    Add REC Title Add REC Name

  • 2

    Agenda Who is Empower Retirement?

    Transfer of your current savings plan

    Features of your plan at Empower

    Investment options

    Demonstration: empowermyretirement.com

    Contacting Empower Retirement

  • 3

    Your new service provider ― We define success as helping people like you

    work toward replacing — for life — the income they earned while working

    ― Danfoss chose Empower for their leading technology, unique user experience and service

    ― Empower currently serves more than 36,000 retirement plans with over 8 million participants

    Responsibilities ― Receiving your payroll contributions ― Tracking your account balances ― Providing ongoing communication and education ― Providing your quarterly statements ― Providing customer support

    Who is Empower Retirement?

  • 4

    Retirement plan services empowermyretirement.com

    ― State-of-the-art website ― Online account management ― Planning calculators

    844-465-4455 ― Retirement representatives available Monday – Friday 7 a.m. to 9 p.m. Central time ― 24-hour automated phone system

    owningmyretirement.com ―Microsite that includes transition information and materials

  • Transfer of your current savings plan

  • 6

    Overview Effective January 2, 2018, several Danfoss company savings plans will be combined into one Danfoss USA Savings Plan

  • 7

    Key dates – Investment Re-enrollment December 6, 2017 - December 20, 2017

    ―Investment re-enrollment window ―Log on to www.empowermyretirement.com to make investment election ―If no election is made, assets will be defaulted into T. Rowe Price target date fund based on

    your date of birth

    The following will transfer to Empower ―Contribution elections ―Loan information ―Beneficiary elections (some beneficiary election info may be complex and not transferrable)

  • 8

    How your account will transfer Unless you make an election by December 20th, your account will automatically transfer.

    If you were born: Your target date fund will be: Earlier than 12/31/1937 T. Rowe Price Retirement Balanced Trust F

    1/1/1938 - 12/31/1942 T. Rowe Price Retirement 2005 Trust F

    1/1/1943 - 12/31/1947 T. Rowe Price Retirement 2010 Trust F

    1/1/1948 - 12/31/1952 T. Rowe Price Retirement 2015 Trust F

    1/1/1953 - 12/31/1957 T. Rowe Price Retirement 2020 Trust F

    1/1/1958 - 12/31/1962 T. Rowe Price Retirement 2025 Trust F

    1/1/1963 - 12/31/1967 T. Rowe Price Retirement 2030 Trust F

    1/1/1968 - 12/31/1972 T. Rowe Price Retirement 2035 Trust F

    1/1/1973 - 12/31/1977 T. Rowe Price Retirement 2040 Trust F

    1/1/1978 - 12/31/1982 T. Rowe Price Retirement 2045 Trust F

    1/1/1983 - 12/31/1987 T. Rowe Price Retirement 2050 Trust F

    1/1/1988 - 12/31/1992 T. Rowe Price Retirement 2055 Trust F

    1/1/1993 - later T. Rowe Price Retirement 2060 Trust F

  • 9

    Key dates – Blackout

    December 20, 2017, Hago Manufacturing Co., Inc. Retirement Plan December 26, 2017, Danfoss Employee Savings and Retirement Plan December 26, 2017, Propulsys, Inc. Employee 401(k) Profit Sharing Plan December 27, 2017, Vacon, Inc. 401(k) Plan December 27, 2017, Danfoss Power Solutions Employees’ Savings Plan Beginning of blackout period

    ―Beginning at 3 p.m. Central time, on the date listed next to the name of the plan you currently have an account balance in, you will have limited (or no) access to your account until the week of January 14, 2018. During this time, you will be unable to check your overall balance, transfer or diversify your investments, obtain a loan or initiate a withdrawal from the plan.

    ―This is the last day for you to contact the prior service provider for your plan to request any account transactions, including changing your contribution rate, loans, withdrawals, etc.

    Your existing contributions are placed in the Putnam Prime Money Market for the duration of the blackout period

  • 10

    Key dates – End of transition Week of January 14, 2018

    ―Transition period ends ―Enjoy full access to your retirement account online and by phone through

    Empower Retirement ―A plan “live notice” will be mailed to your home informing you when your account access has

    been restored ―Any balance in your current 401(k) will temporarily be invested in a Money Market Fund until

    participant records are received from previous record-keepers

  • 11

    Next steps: Review your options Review your contribution and investment elections

    ―Your current contribution election will automatically transition to Empower Retirement ―Your account balance will automatically transfer to a T. Rowe Price Trust target date fund if you

    don’t make a new investment election by December 20 by going to empowermyretirement.com

    If you haven’t registered your account, register with Empower Retirement ―Week of January 14, 2018 ―Via www.empowermyretirement.com

    Have another account with Empower Retirement or need help accessing your account for the first time?

    ―Call Empower at 844-465-4455

    When you access your account the first time the week of January 14, 2018, be sure to: ―Review your contribution elections ―Elect to receive electronic communications ―Review and update your beneficiary information, if necessary ―Consider rolling over any retirement accounts from a previous employer

  • 12

    Things to know This change is designed to:

    ―Give you more ways to access and manage your account ―Improve your overall retirement planning experience

    As part of the move, great features will be available: ―Pretax, Roth, and after-tax contributions to give you more saving options ―A company contribution and match formula to supplement your personal savings ―A comprehensive investment lineup and service to enable a long-term strategy that can help

    you meet your goals

    Empower Retirement Advisory Services offered by Advised Assets Group, LLC (AAG), a registered investment adviser.

  • Features of your plan at Empower

  • 14

    Features of your Danfoss Savings Plan

    Safe Harbor nonelective contribution

    Vesting

    Your contributions Eligibility

    Loans

    Beneficiary elections

    Company contributions

    Investment options Matching contribution

    Rollovers

    Catch-up contributions

    Contribution types Withdrawals

  • 15

    Employee contributions Pretax contributions, Roth 401(k), and after-tax contributions

    ―100% of eligible compensation ―Your current savings rate on file with the previous record-keeper will transfer

    during the transition period

    Eligible compensation defined ―Base salary and/or wages paid (including any short-term disability payments) ―Annual bonus payments; remember this is a new feature and drives benefits up! great news ―Commissions paid under sales incentive plans ―Overtime pay ―Lump-sum payments made in place of an increase in the base wage rate ―Payments for time not worked pursuant to Employer policies

    Note: You can now elect a specific percentage of your bonus payment!

  • 16

    Contribution limits 2018 IRS contributions limits pretax contributions and Roth 401(k) contributions

    ―$18,500 ―$24,500 (age 50+)

    2018 415 limit (includes after-tax contributions) ―$55,000 ―$61,000 (age 50+)

  • 17

    Catch-up contributions If you are age 50 or over, you may contribute an additional $6,000 in catch-up contributions – a total of $24,500

    Your catch-up contribution elections will not transfer to Empower

    Once you reach the Pretax and/or Roth limit, your contributions will spill over to catch-up contributions until you reach the max

  • 18

    Pretax contributions: Lower your taxable income

    FOR ILLUSTRATIVE PURPOSES ONLY. *Assumes $30,000 annual salary and 15% federal, state, and local tax rate. Please note that taxes on savings are deferred until withdrawal and that pretax deferrals do not lower your income for FICA and FUTA tax withholding purposes.

    Gross pay $ 2,500

    - taxes* (375)

    NET PAY $ 2,125

    Danfoss Today Date

    Pay to You $2,125

    Two thousand one hundred twenty-five Dollars

    Memo No contributions

    Gross pay $ 2,500 - 6% pretax

    contribution (150) Taxable income $2,350 - taxes* (352) NET PAY $ 1,998

    Danfoss Today Date

    Pay to You $1,998

    One thousand nine hundred and ninety-eight Dollars

    Memo 6% pretax contribution (This is not a valid check)

  • 19

    Pretax contributions vs. Roth 401(k) contributions Gross pay $ 2,500 - 6% pretax

    contribution (150) Taxable income $2,350 - taxes* (352) NET PAY $ 1,998

    Gross pay $2,500 - taxes* (375) - 6% Roth 401(k)

    contribution (150) NET PAY $1