The SMP was redesigned to better meet the needs of participants by improving the plan offerings for both the accumulation and decumulation of their retirement assets. Under the previous plan, participants had to use 100% of their assets to purchase an annuity at the time they retire to qualify for retiree healthcare or take a lump-sum distribution forfeiting retiree healthcare and requiring the participants to leave the plan at retirement. The goals of the redesign were to:
- Offer a new flexible default investment option that will allow members to remain in the plan and maintain access to retiree healthcare (if eligible) at retirement without giving up access to their entire account balance.Â
- Help members better prepare for retirement while reducing market risk and point-in-time risk by offering the option of securing guaranteed lifetime income over time through the new default investment option.Â
- Improve the investment lineup by reducing fund overlap while providing access to more functional asset classes.Â
- Streamline plan administration to improve operations and lower fees.Â
- Improve communications and enhance the overall member experience.Â