Understanding The Upgraded Pension Plan

Upgrades to the Maryland Backstretch Pension Plan that are designed to provide participants with greater flexibility and more investment options were explained in detail during an Oct. 22 webinar hosted by John Hancock financial advisers.

The new program, which is available through the John Hancock website and app, provides more functionality to users. It essentially gives members the ability, if they choose, to control their investments.

The following are some of the important takeaways from the webinar.

—The Backstretch Pension Plan remains the same with the exception of the online access and upgrades. Members will still be required to sign up for the plan each year in the spring using the online form provided by the MTHA. Benefits still will become available when the employee reaches the age of 65, or age 55 with 25 years of service.

—Pollard Associates, which oversees the plan, will remain in that capacity. Allison Bach, who works with the MTHA on the plan, will still be available to members. Members of the plan are not required to set up a John Hancock account.

—At the outset, all members will be assigned to a “Qualified Default Investment Alternative” (QDIA) based on their age—a target date tailored to their retirement age. They have the option to remain in that program if they choose.

—Disbursements can now be handled online or through the app. Pollard will still handle disbursements for those who choose that route.

—The Backstretch Pension Plan is currently funded through a $1 million contribution approved by the MTHA Board of Directors. As has been the case, members will not be permitted to make their own contributions to the plan.

—The investment offerings through John Hancock include the aforementioned target-date funds, aggressive growth funds, growth funds,  growth and income funds, income funds, and conservative funds. Those who set up a John Hancock account will have 24-hour access to review and track various funds and make any changes when they wish.

—Members’ beneficiary information can be managed through the John Hancock account. If married, a member’s spouse must be the primary beneficiary unless the spouse signs a notarized document. That was the case before the addition of the upgrades.

“Its a great plan,” said Tripp Shrives, Managing Director and Investment Officer for The Monument Group at Wells Fargo Advisors. “It gives access to information in a timely manner.”

The John Hancock web portal is myplan.johnhancock.com. The John Hancock Retirement app can be downloaded from the Apple App Store or Google Play. 

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