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netbenefits

If you are thinking about retirement in the near future, the first thing that you should do is to start your planning as early as possible. NETBENEFITS is a good place to start, and the people there can help you do this. Give them a call at:

1-800-872-3777

PARK 500 HR DEPARTMENT

You may also have a few questions that you want to ask the Human Resources Department of Park 500. This is the number to help you get started.

1-804-751-2056

IMPORTANT RETIREMENT WEB SITES

Social Security Online
The IRS
VA Dept. of Taxation
AARP
RetireNet
FirstGov for Seniors

INTERESTING RETIREMENT WEB SITES

Wired Seniors
Retirement & Elder Care
AgeNet
ElderPage
The Retire Early Site (Good Info)
Senior Citizens League

READING MATERIAL

IRAs, 401(k)s & Other Retirement Plans:
Taking Your Money Out

by Twila Slesnick, PhD, Enrolled Agent &
Attorney John C. Suttle, CPA

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health and medicine

RXList
Find information about the prescriptions you are taking
 

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PubMed
Find medical information about different conditions and diseases.
 

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Dept. of Health and Human Services
Find various types of health information

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The Vitamins and Nutrition Center
Information on vitamins, the latest research on vitamins, information on multivitamins, and tips for proper supplementation with vitamins.

something to think about...

For many "Baby Boomers" that are around 50 years of age, their retirement future may not be a pretty picture.

Over the next 20 years, 76 million Americans born between 1946 and 1964 will hit the half-century mark. For most, that means facing up to the hard questions of how, or even if, they will be able to afford retirement. With Social Security rapidly becoming an uncertainty, the lifestyle of retirement is no longer golfing, fishing and travel.

The latest census figures indicate that only one in every ten Americans today is financially prepared to retire when they reach age 65. Retirees will need roughly 70-75 percent of their current annual income just to maintain their existing standard of living when they retire. Unfortunately, most Americans are likely spend more time planning for their vacations than planning for retirement.

Here are a few facts about the average person that retires:

• 50 percent of Americans will retire with only their Social Security checks as their only source of retirement income. Unless they return to work, this will only amount to an annual income of around $10,000 a year.
• In December 2001, the average Social Security check was only $874 per month.
• In the year 2001, a little more than 50 percent of Americans retired with less than $10,000 in their total savings hoping that it can supplement their Social Security checks.
• Only 3 percent of all new retirees are actually financially independent to the point where they never have to work again.

These statistics may not be pleasant reading for any person who is around 50. If nothing else, this information should serve as a wake-up call for many people who need to seriously reevaluate their retirement planning.
 

something else to think about...

In this next example, let's exclude for the moment you will be getting a PM pension or any social security when you retire. Let's just concentrate on your available 401k funds and/or your life savings.

For every $6,000 that you need during your retirement, you will need $100,000 that is earning 6% interest a year. In other words, let's say that you have $100,000 that is earning 6% interest. You will only earn roughly $6,000 a year from that savings investment.

Here's an example:
Let's say that you need $60,000 a year to survive, you will need $1,000,000 in your 401k or savings that is earning 6% a year. If that account is only earning about 2%, this figure could drop to $20,000.

Some people might say either of those amounts are enough to live on, but with the current rate of inflation being somewhere between 2% to 4%, a person that retires at age 60 earning those amounts within their accounts a year may need at least double that amount to have the same spending power in twenty years.

social security benefits

How should I prepare for retirement?
(Information obtained from the Social Security site)

The three major elements of your retirement portfolio are benefits from pensions, savings and investments, and Social Security benefits.

Generally, you should apply for retirement benefits three months before you want your benefits to begin. You can apply for retirement benefits online, but not for Medicare. To apply for retirement benefits, just connect to the Internet Retirement Insurance Benefits application and follow the instructions. To apply for Medicare, call or visit your local Social Security office.

Or you can make an appointment for your application to be taken over the telephone or in person at a convenient Social Security office.

To find out more information about Retirement and other Social Security issues, visit the Social Security site.

important retirement information

15 MINUTES TO SEE IF YOUR DPS PLAN WILL PROVIDE ENOUGH FOR YOUR RETIREMENT

We now have a valuable employee benefit that can help us plan for retirement, and you should have received an Altria postcard describing it in general. This benefit comes in the form of expert investment advice from Financial Engines, and is available 24 hours a day.

First time users will need to:

1. Go to http://www.financialengines.com/ and click START HERE.
2. Select "Sponsored by a company or organization," and click NEXT.
3. Enter "mo" in the Sponsor field.
4. Enter your Social Security number (no dashes) in the Temporary ID field and click NEXT.

Call the Altria Group Benefits Center at 1-800-872-3777 for help if electing to implement recommendations through NetBenefits or over the phone.

retirement questions

When can I retire?

Currently, there are three different ways that BCTGM workers can retire with Philip Morris.

1. You can retire on the first of any month after the age of 60 with at least five years of service.
2. You can retire on the first of any month at any age, but after thirty years of service.  NOTE: Under this scenario, you will still receive your full benefits.
3. You may also retire early on the first of any month after the age of 55 with less than 30 years, but with reduced benefits.
NOTE: Your benefit level will be reduced by 0.5 % for each month (equals 6% per year) that you retire early from your the thirty year mark.

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How do I apply for retirement?

Applying is simple.

About 90 days before you plan to retire, call 1-800-872-3777 and ask for a Statement of Estimated Benefits and a Retirement Kit.

The Statement of Estimated Benefits will tell you what your benefit level will be when you retire, and the Retirement Kit has all of the necessary forms you will need to fill out before your retirement can begin.

You will also need to supply copies of you and your spouse's birth certificates, as well as your marriage certificate.

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When will I start receiving my benefits?

You should receive your first retirement check on the 1st day of the month after the month that you retire.

The Company must receive all of your completed paperwork by the 1st of the month that you retire, or your first payment will be delayed for an additional month.

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What if I pass away before I have a chance to retire, will my spouse be able to get any of my retirement pension?

If you have your thiry years in with the company, your spouse will get half of your pension payments at the date that you would have reached 62 years of age.

For example, if you past away at the age of 53, with thirty years of continous service, your spouse would not be able to start collecting half of the pension until nine years later. At that nine year period, that would have been the date when you would have reached the retirement age of 62.

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Where can I get summary of my retirement plan?

You can get a Summary Plan Description by calling 1-888-447-2060