The Pitney Bowes Retirement Plan is a defined benefit pension plan that was established by Pitney Bowes Inc., a leading global provider of innovative solutions for commerce, to provide retirement benefits to its eligible employees. The plan is designed to help employees achieve financial security in their retirement years by providing a predictable income stream based on their salary and years of service with the company.
Overview of the Pitney Bowes Retirement Plan
The Pitney Bowes Retirement Plan is a traditional pension plan that uses a formula to calculate the benefit amount based on an employee’s final average pay and years of service. The plan is funded by Pitney Bowes, and the company bears the investment risk. The plan’s assets are managed by professional investment managers to ensure that the plan remains adequately funded to meet its future obligations. The plan’s funding status is regularly reviewed and updated to ensure that it remains on track to meet its long-term obligations. The plan is also subject to the rules and regulations of the Employee Retirement Income Security Act of 1974 (ERISA), which provides certain protections for plan participants and beneficiaries.
Eligibility and Participation
Eligibility to participate in the Pitney Bowes Retirement Plan is generally limited to regular full-time and part-time employees of Pitney Bowes who have completed a specified period of service, typically one year. Employees who are eligible to participate in the plan are automatically enrolled, and they begin to accrue benefits as soon as they become eligible. The plan’s eligibility rules and participation requirements are outlined in the plan’s summary plan description (SPD), which is provided to all eligible employees.
The plan's benefits are based on an employee's final average pay, which is typically defined as the average of the employee's highest consecutive 60 months of pay. The plan's benefit formula takes into account an employee's years of service, with longer-serving employees generally eligible for higher benefits. The plan's benefit formula is designed to provide a predictable income stream in retirement, and it is based on the employee's final average pay and years of service.
| Years of Service | Benefit Formula |
|---|---|
| Less than 10 years | 1% of final average pay per year of service |
| 10-19 years | 1.25% of final average pay per year of service |
| 20-29 years | 1.5% of final average pay per year of service |
| 30 or more years | 1.75% of final average pay per year of service |
Plan Administration and Governance
The Pitney Bowes Retirement Plan is administered by the Pitney Bowes Benefits Administration Committee, which is responsible for overseeing the plan’s day-to-day operations and making decisions about plan governance. The committee is composed of senior executives and benefits professionals who have expertise in plan administration and governance. The committee is responsible for ensuring that the plan is operated in accordance with ERISA and other applicable laws and regulations.
The plan's assets are managed by professional investment managers who have expertise in managing retirement plan assets. The investment managers are responsible for developing and implementing the plan's investment strategy, which is designed to ensure that the plan remains adequately funded to meet its future obligations. The plan's investment strategy is regularly reviewed and updated to ensure that it remains aligned with the plan's funding objectives.
Plan Funding and Expenses
The Pitney Bowes Retirement Plan is funded by Pitney Bowes, and the company bears the investment risk. The plan’s funding status is regularly reviewed and updated to ensure that it remains on track to meet its long-term obligations. The plan’s funding status is disclosed in the plan’s annual funding notice, which is provided to all plan participants and beneficiaries.
The plan's expenses are paid by Pitney Bowes, and they include investment management fees, administrative fees, and other expenses related to plan operations. The plan's expenses are regularly reviewed and updated to ensure that they remain reasonable and in line with industry benchmarks.
How do I become eligible to participate in the Pitney Bowes Retirement Plan?
+To become eligible to participate in the Pitney Bowes Retirement Plan, you must be a regular full-time or part-time employee of Pitney Bowes and have completed a specified period of service, typically one year. You will be automatically enrolled in the plan once you become eligible.
How are the plan’s benefits calculated?
+The plan’s benefits are calculated based on an employee’s final average pay and years of service. The plan’s benefit formula takes into account an employee’s years of service, with longer-serving employees generally eligible for higher benefits.
Who administers the Pitney Bowes Retirement Plan?
+The Pitney Bowes Retirement Plan is administered by the Pitney Bowes Benefits Administration Committee, which is responsible for overseeing the plan’s day-to-day operations and making decisions about plan governance.
