FAQs

 

If you have additional questions regarding the retirement process contact Farm Credit Foundation's Benefits Department at 1-800-892-7924.

401(k)

Pension

Retiree Medical

Other Benefits

 

 

401(k)

 


What are my 401(k) distribution options?

Typically, you have four options:

  • You can defer distribution until age 70½. At age 70½, you must begin required minimum distributions according to current IRS regulations. Based on the current IRS life expectancy tables, you must withdraw approximately 1/17th of your account balance at age 70½ if you are single and 1/27th if you are married.

  • You can take your entire account balance in a lump sum. If you roll over to an IRA or another employer’s qualified plan, taxation is deferred.

  • You can elect fixed dollar installments. For example, you can elect $1,000/month and John Hancock Retirement Plan Services will continue to make these monthly payments until your account balance is exhausted, or until you request to change the amount or suspend the payments. Changes can be made quarterly.

  • You can elect variable installments (monthly, quarterly, semi-annually or annually) for up to a 20-year period.  For example, if you elect quarterly installments over a 20-year period, your first payment would be 1/80th; your second payment would be 1/79th and so on. Your 80th payment would be your remaining account balance.

 

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Do I have online access to my 401(k) account after I retire?

You continue to have access to your account through MyLifeNow at mylife.jhrps.com or by calling the Participant Service Center at 1-800-294-3575.

 

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Can I make changes to my 401(k) account after I retire?

You may continue to make (daily) investment changes for your account and can make distribution elections as described in the previous question. The only thing that changes when you retire is that you can no longer make contributions to your 401(k) account.

 

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What about distributions and withdrawals at age 59½?

In-service withdrawals from your 401(k) are available at age 59½. Request the Age 59½ Withdrawal Form from John Hancock through mylife.jhrps.com. The money is eligible to be rolled over to an IRA or taken as cash minus taxes.

 

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Do I have to withdraw my money from my account when I retire?

No, you can leave the money in your account. There are no additional fees just because you are retired.

 

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What are the transactional fees for a total distribution, partial distribution, or installments with my 401(k) account?

There are no transaction fees or charges for distributions as a retired participant.

 

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Pension

 


When am I eligible to retire?

Typically, you can retire as early as age 55 with at least five years of service and begin your pension payment immediately. Please see the Summary of Plan Provisions for the pension plan in which you participate for more information.

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How can I get an estimate of my pension benefit?

You can run a pension estimate(s) using the Benefit Estimate Calculator available at mylife.jhrps.com based on any retirement age(s)/date(s) and salary/incentive assumptions of your choice. Here are specific instructions for using the Benefit Estimate Calculator:

  • Log into your retirement plan account on mylife.jhrps.com.
  • From  the Multi-plan View drop down menu on your personalized welcome screen, select the retirement plan in which you participate.
  • Click on the DB Calculator tab.
  • Follow the prompts to enter assumptions for retirement date/age and base/variable pay.

You will need your User ID/Social Security number and your Personal Identification Number/Password to access your retirement (or 401(k) account) at mylife.jhrps.com.  If you have forgotten you password, or have not established a User ID and PIN/Password to access your accounts on mylife.jhrps.com, click on the applicable link (“Forgot …” or “Establish …”) on the mylife.jhrps.com login screen. If you need any assistance in accessing our account, contact a Participant Services Representative at John Hancock at 1-800-294-3575. When the voice response system prompts you to enter your SSN/UserID, say “Operator” and you will be transferred to a representative.

 

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What is an annuity payment?

Annuity payments are monthly fixed payments for the rest of your life. Depending on the option chosen, if you were to die before your spouse, a fixed payment could also be paid monthly for the rest of your spouse's life.

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If I take a lump sum, can I roll it over to my 401(k) account?

If a lump sum option is elected within 90 days of retiring, the money is eligible to be rolled over into your 401(k).  If a lump sum option is elected after the 90 days, the money is eligible to be rolled over into an IRA.


 

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What are my pension payment options?

Generally, you can elect a lump sum or annuity payments for your pension benefit. The specific forms of payment depend on the defined benefit plan in which you participate and your marital status. Please see the Summary of Plan Provisions for the defined benefit plan in which you participate for more information.

 

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When do I receive my pension payment?

Your pension payment is made on the first of each month. Typically, pension payments are only for full months of retirement. This means that regardless of when in the month you retire your first payment is due the first business day of the following month. Your first payment may be made a couple of weeks into the first month because John Hancock runs a “true-up” calculation after receiving your actual earnings and service (including any unused sick leave hours, if applicable) based on your final pay check.

 

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What happens to my pension if I die prior to retiring/starting the benefit?  Will my spouse receive a benefit?

If you are covered under a "Final Average Pay formula" and depending on how long you were married, then your surviving spouse will be eligible for a lifetime monthly annuity.  When the annuity begins depends on the defined benefit plan in which you participate. If you are covered under a “Cash Balance formula,” then your account balance would be payable to whomever you have designated as a beneficiary, or according to the plan default beneficiaries. Please see the Summary of Plan Provisions for the defined benefit plan in which you participate for more information. 

 

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What happens to my sick hours when I retire?

If you are enrolled in a Defined Benefit pension plan using the Final Average Pay formula your sick hours are converted to extra years of service and become part of your pension calculation (added to your pension benefit).

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Does my pension benefit affect or offset my Social Security benefit?

Your pension benefit will not affect the amount of your Social Security benefit.

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Will I be taxed on my pension benefit? If so, how much?  Do I have to withhold taxes from my pension check?

You will receive a 1099-R each year because your pension benefit is taxable.  Please consult a tax advisor because states tax pension benefits differently.  Your federal taxes will depend on what other income you have in retirement.

If you decide to elect or change your pension tax withholding election, request the Tax Withholding Form (W-4P) from the John Hancock website, mylife.jhrps.com, complete the form and return to John Hancock for processing. NOTE: To request state withholdings use the W-4P form and write “State of XX” on the form and send to John Hancock.

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Are there cost of living adjustments to pension payments? How often does my pension benefit increase?

There is no provision in the defined benefit pension plan for cost of living adjustments.

 

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Will I receive a pension benefit with my previous Farm Credit employer outside of Farm Credit Foundations at the same time I start my pension with my current employer?

You will need to contact your previous Farm Credit employer to start your pension benefit if not administered by Farm Credit Foundations.


 

 

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Is there a way for me to see my pension payments online?

On mylife.jhrps.com, select your pension plan from the Multi-plan drop down menu then click Activity History from the list of topics from the menu list and select Distributions. Click on the Check/ACH # in blue to bring up the Transaction Detail of your payment for the month selected.


 

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Retiree Medical

 

  
If I am over 65 and my spouse is under 65, can we both be covered under the retiree medical plan?

If your spouse is on your medical plan when you turn 65, then you spouse can remain in the early retiree plan with single coverage until he or she turns 65 at which time he or she transitions to Medicare and the Medicare Supplement Plan.

 

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What will my medical premiums be when I retire?

View retiree medical rates.

 

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What are my medical plan options when I retire? Will I be able to choose my plan?

  • If you are under age 65, you have to remain in the same medical plan you elected as an employee for the remainder of that calendar year.  Each year you will be able to change your plan during Annual Enrollment.
  • If you are age 65 or older, you are eligible for the AARP supplement medical coverage through United HealthCare.  You will also need to choose a Medicare Part D Prescription Drug plan.

 

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Can I have my medical premiums deducted from my pension check?

Farm Credit Foundations will request you complete an Authorization for Direct Debit form so premium payments can be deducted from your banking account on the 15th of each month while you are enrolled in the under age 65 medical plan. Medicare premiums are typically deducted from your social security payments.

 

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When my under age 65 retiree medical coverage ends at age 65, can I continue my prescription drug coverage with Caremark?

You are not eligible to continue your prescription drug coverage with Caremark after you turn 65 and are on Medicare. You must enroll in a Medicare Part D Prescription Drug plan.

 

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If I die while still working for Farm Credit, will my family have access to medical coverage?  If so, for how long?

  • If you have met the retiree eligibility criteria (minimum age 55 with a minimum 10 years of service), your spouse and any eligible dependents will be able to enroll in retiree medical.  Your spouse will be eligible to remain in a retiree medical plan until he or she turns 65.  Dental and vision can be continued on a month-by-month basis for up to 36 months.
  • If you have not met the retiree eligibility criteria (minimum age 55 with a minimum 10 years of service), your family will be eligible for up to 36 months of continuation coverage at the full cost of the medical/dental/ vision plan(s)


 

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Other Benefits

 


Are either dental or vision coverage available after retirement?

You can continue dental and/or vision for up to 18 months after you retire. After the 18 months, there is no conversion or portability on either plan.

 

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What happens to my Life Insurance plans when I retire?

  • Basic and/or Optional Basic Life and AD&D
    • You have the option to continue your Basic and/or Optional Basic Life coverage for 18 months at the current group rate. At the end of the 18th month continuation period, you can port your policy with Minnesota Life. To obtain the current portability rates, contact Minnesota Life at 1-800-843-8358.
  • Group Universal Life (GUL)
    • You will be contacted by Minnesota Life within six to eight weeks after you retire about continuing your GUL and paying the premiums directly to Minnesota Life.  They will contact your spouse separately if you have spouse GUL.
    • You have the option to continue your GUL coverage for 18 months at the current age banded rates. At the end of the 18th month continuation period, you can port your policy with Minnesota Life. To obtain the current portability rates, contact Minnesota Life at 1-800-843-8358.
  • Voluntary AD&D
    • This coverage ends when you retire and cannot be continued.
  • Long Term Disability
    • This coverage ends when you retire and cannot be continued

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What happens to my Tax Advantage accounts (FSA, Health Savings Account) when I retire?

  • Health Savings Account
    • You may elect to continue to contribute to your Health Savings Account (HSA) as long as you are enrolled in a high deductible health plan (Consumer Choice PPO) until the earlier of age 65 or you elect Medicare coverage.  HSA contributions are sent directly to PayFlex and taxes will be adjusted on an “above-the-line” basis when you file your income tax. You are eligible to receive reimbursement from your HSA for expenses incurred both before and after your retirement date. For more information regarding Health Savings Accounts visit www.irs.gov (Publication 969 and 502).
  • Healthcare Spending Account and Limited Purpose FSA account:
    • You have 90 days from your retirement date to submit claims for eligible expenses incurred while you were active.
    • You can continue these plans through the end of the calendar year in which you retire. You can submit claims for eligible expenses incurred during the calendar year through March 31 of the next year.
  • Dependent Care Account
    • You can continue to submit claims through the end of the calendar year in which you retire for eligible expenses incurred during that calendar year.

 

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