At TAC, we believe our employees deserve tangible rewards for their work. That’s why in 1976, we instituted the TAC Retirement Plan, which allows eligible employees to share in company profits. The plan not only provides employees with the funds they need for a secure retirement- it also builds increased interest in the successful operation of the company. This reflects the strong faith we have in our employees’ business decisions. After all, no one knows TAC better than the people who represent it every day.
Who is eligible?
Employees become eligible for participation in the TAC Retirement Plan on either October 1 or April 1, whichever comes first, following one year of service and after reaching age 21. Employees must work at least 1000 hours during the first 12 months of employment or during any plan year after commencement of employment to be credited with a year of service.
How much is contributed into the plan?
Contributions to the plan are made annually and are completely at the discretion of the company. Since the plan’s inception, TAC has contributed 10% of each eligible employee’s annual salary to the plan. Voluntary contributions by employees are not allowed.
When am I eligible to receive proceeds from the plan?
Employees are eligible to receive contributions made to the plan in their name upon reaching retirement age (65 years of age).
What if I leave the company before reaching age 65?
If you leave the company prior to reaching age 65 and have completed at least two years of service, a percentage of your account is non-forfeitable according to the following vesting schedule:
|YEARS OF SERVICE||VESTING PERCENTAGE|
|0 – 1||0%|
If you have not completed at least two years of service with the company, all contributions made to the plan in your name are automatically forfeited. Exceptions to the vesting schedule are made for anyone having to quit work due to total disability or if you die before reaching retirement age. Refer to the Retirement Plan documents for more information about this or call the Human Resources Department.
How do I know the status of my retirement account?
Toward the end of December, participants will receive a written statement from the plan administrator showing the value of your account and the balance contributed to it as of the last day of the plan year. You will also be provided with an annual report summary showing the investment performance of the plan.
How are benefits paid?
There are several different options, depending upon the amount to be distributed. If less than $5,000, benefits are paid in a lump sum payment. If the amount is over $5,000, you may choose a lump sum payment, periodic monthly payments or a direct rollover to an eligible retirement account or IRA.
Retirement Trust Example
To give you an example of how your retirement plan at TAC can accumulate, we offer the following example for demonstration purposes only. While the assumptions made to develop this example are reasonable, this is in no way a guarantee.
This example is based upon the following assumptions:
- Length of employment: 30 years
- Type of employee: Full-time
- Starting salary: $10.00 per hour
- Annual pay increase 4%
- Annual plan distribution: 10% of salary
- Annual rate of interest on investment balance: 10%
This table is for illustrative purposes only and is based upon the assumptions outlined above. Contribution levels and investment returns are calculated using an average of the previous ten years’ (1992-2001) actual percentages. Future contribution levels and investment returns are not guaranteed. Contributions to the plan are at the sole discretion of the company and investment returns can vary widely depending upon the performance of the plan’s investments and market conditions.
When it comes to the impact of a TAC retirement plan, no one tells it better than our own employees!
I feel that our retirement plan is the best benefit our company has to offer. Unlike 401 (k) plans that require YOU to make deposits, our plan has the company making the deposits. Our company is planning and paying for OUR retirement!
12-year TAC employee
I’m so thankful for the TAC retirement fund. My husband worked for Truman Arnold Companies for many years. You know, I couldn’t make it without that extra money. Social Security just isn’t enough.
Wife of a retired TAC employee