Agent Pension Plan Information for Former Allstate ...

1 32 Exclusivefocus Spring 2013 For the most part, Allstate stopped hiring employee agents in 1990. Then in the year 2000, the company terminated all its remaining employee Agent contracts, except for those located in certain jurisdictions, such as the state of New the time, the company had 6,171 employee agents who were affected by the Preparing for the Future initiative, wherein agents were allowed to continue their careers only if they agreed to be-come independent contractors and suf-fer the loss of their employee benefits. Most of those affected were over the age of forty. Of the 6,171 affected agents, 3,772 converted to the EA agreement and con-tinued their agency relationship; 2,399 selected another option, and parted ways with the company .

2 Virtually all 6,171 employee agents were vested in the All-state Agent Pension fund at the time their employment contract was severed, and many of those are now approaching retirement age. Vesting in the Pension plan required a minimum of five years as an employee of Allstate . Employment at Sears prior to 1995 could also be counted towards vest-ing eligibility for Sears employees who left and became Allstate agents. Vested Former employee agents who were not yet 65 when employment ended became terminated deferred vested Participants. Who is eligible to withdraw benefits under the plan ?Normal retirement age is 65. Agents hired before 1989 are eligible to receive early retirement benefits payable at age 63.

3 In addition, agents with 20-plus years of continuous employment can re-ceive early retirement benefits at age 55. Early retirement benefits paid prior to age 65 are calculated at a reduced amount based on your actual Allstate Exclusive Agent in-dependent contractors can take their retirement benefits as soon as they are eligible based on age and years of em-ployment. In other words, you may col-lect your benefit while still under con-tract as an EA independent contractor deferred vested benefit is payable as an annuity. While several annuity pay-out options are available, it is important to note that monthly payout amounts are frozen and will not change as the participant ages.

4 Currently, a lump-sum payout option is still available, but the plan is under no obligation to continue it. The lump sum is calculated by apply-ing a conversion factor which includes interest rate and mortality assumptions to the straight life annuity benefit. Consequently, the benefit amount un-der the lump sum option may increase or decrease depending on the prevailing assumptions in effect at the time a lump sum is requested. The Pension Protection Act (PPA) of 2006 changed the interest rate used to calculate lump-sum payouts of the Agents Pension plan from the 30-year Treasury Bond Rate to a corporate bond segmented yield curve. As a result, there is no longer a single interest rate used for lump-sum payments.

5 As a general rule, if the aver-age interest rates decrease, the lump sum equivalent increases, and vice you receive your Pension benefit in a lump sum, you can roll it into an IRA Agent Pension plan Information for Former Allstate Employee Agents By Nancy FishfeatureSpring 2013 Exclusivefocus 33 to maintain the tax deferred status. This must be a direct transfer or the Agents Pension plan will withhold 20% of the payout for income tax purposes. Social Security offsetAgents who became participants in the plan prior to Dec 31, 1988 should be aware that pre-1989 benefits contain a Social Security offset which is calculated based on estimated compensation earned from 1951 through 1988.

6 You have the option of having your actual compensation from 1951 through 1988 as recorded by the Social Security Administration used in the calculation instead of your estimated compensation. Using your actual compensation in the calculation of your Pension benefit may produce a higher Pension benefit. More importantly, using your actual prior com-pensation will never result in lowering the Pension benefit you are entitled to receive and will not affect the Social Se-curity benefit you are eligible to can obtain your actual 1951 through 1988 earnings history by re-RHINOTEKP roviding Premium Imaging Supplies for Over 28 Years!Great Savings - Group Buying DiscountsGuaranteed Quality - Higher Page YieldsFree Shipping - 30 Day Net TermsHelp the Environment - Save the RhinoPart NumberProduct DescriptionNAPAA PriceNA13MS-Q5927 ARHINOTEK CERTIFIED PRE-OWNED HP LaserJet 1320 with 13 Month Warranty $255 QH-1320 RHINOTEK Compatible HP Laserjet Black Toner Cartridge - 7000 yield$72 RHINOTEK is a preferred NAPAA supplier for ink and toner provide our customers with value every step of the way!

7 A vast selection of 6500 compatible and OEM imaging supplies. Over 28 years as an industry leader of premium inkjet and toner supplies. High-quality output, vivid colors and exceptional yields. Compelling price to performance value. A knowledgeable sales team focused on your growth through savingsTRYING TO SAVE MONEY BY MAKING WISE PURCHASING DECISIONS?Rhintotek Computer Products, Inc. 2301 E. Del Amo Blvd., Carson, CA 90220 (800) 695-RHINO ! 2()./4%+ .%7 ,)&% 02).4%2 AND 02%-)5- 4/.%2 #!242)$'% )3 9/52 "%34 3/,54)/. Call your representative today at (800) 695-RHINO for special NAPAA pricing on all Rhinotek branded ink, toner and maintenance kits. 'RQ W IRUJHW WR DVN DERXW RXU FRPSOHWH OLQH RI &HUWL HG 3UH 2 ZQHG 1HZ /LIH 3 ULQWHUV questing your Social Security State-ment from the Social Security website at or by contacting your local Social Security office.

8 The in-formation is free of charge. Remember to request your Social Security Statement, not your Detailed Earnings Informa-tion. Then you must forward your compen-sation history to the Allstate Benefits Center before requesting the distribution of your Pension . The Allstate Benefits Center must receive your compensa-tion history no later than four months from your Payment Start BenefitIf you die as a terminated deferred vested participant, a death benefit will be payable to your spouse or other des-ignated beneficiary. Participants should be sure all beneficiary Information is up to date. Estimated Death Benefit Amount Your estimated death benefit amount stated as a lump sum form of payment is payable if you die before commenc-ing payment of the plan benefit.

9 You can access your estimated death benefit amount calculated as of the prior year-end by calling the Allstate Benefits Center at 888-255-7772, where you will be connected to an automated system. Following the prompts, select the Re-tirement and Investments option and then the Pension option. You will then be connected with a benefits representa-tive who will assist you with your request. The value of your estimated death benefit could increase or decrease from time to time because the interest rate the plan uses to calculate lump-sum benefits fluctuates over agents can learn more about retirement benefits at the Your Benefits Resources website at or by calling the All-state Benefits Center at By creating a log-in, agents can view the Sum-mary plan Description, project retirement benefits, compare the payout options, and start the Pension payment process.

10 Ef