From time to time, people ask questions about factors that affect their planning
for retirement. Here are three questions and answers to common concerns.

Q. Does an individual’s pension benefits in the Defined Benefit Pension Plan grow after terminating employment?

A. Not in the typical sense of the word, like a 401(k) or a 403(b) account can grow. Individual benefits do “grow” the longer a terminated individual defers receipt of benefits to normal retirement. For example, if an individual elects to receive benefits at age 55, those benefits will be lower than those deferred to receive at age 65. The benefit is reduced for early retirement because it will have to be spread out over a longer period of time. The longer an individual defers the receipt of benefits, the less that benefit will be impacted by early retirement factors.


Q. How can individuals enrolled in the Retirement Savings Plan find the latest information about their savings accounts?

A. The key to successful retirement investing is balance and diversification. Now it is easy to monitor and manage retirement savings accounts either by phone or online. Members of the Christian Brothers Retirement Savings Plan (CBRSP) can contact the record keeper, Vanguard, directly at 1.800.523.1188 or use the Internet as a tool to manage their account.

You can visit the Vanguard Website at www.vanguard.com or go directly to the participant sign on page by clicking on the “403(b)/401(k) Balance” link located under the Participants section on the left side of this page. From here, you can set up your account, if you haven't already done so, or log in if you've already obtained a username and password. Members can view their account balance, re-balance their investment portfolio, and learn more about saving for retirement.


Q. Does market volatility affect my benefit in the Defined Benefit Plan?

A. Defined benefit pension plan assets are invested by the plan’s investment managers with the primary objective being to provide secure retirement benefits. Positive investment performance helps defray the cost to fund the plan each year. Remember, employers assume the investment risk in a defined benefit plan. Therefore, whether plan investments perform favorably or unfavorably has no effect on an individual’s retirement benefits; employees are assured a retirement benefit.

For more information, contact Jim Ceplecha at 800.807.0100 ext. 2630 or
jim_ceplecha@cbservices.org.