| Company Name | For plan years beginning in | Year | Month | First Segment | Second Segment | Third Segment | Plan Type |
| Rogers Corporation | All | 2025 | January | 4.74% | 5.55% | 5.92% | |
| Rogers Corporation | All | 2024 | January | 4.89% | 5.14% | 5.29% |
Lump Sum vs. Annuity
Retirees who are eligible for a pension are often offered the choice of whether to actually take the pension payments for life, or receive a lump-sum dollar amount for the “equivalent” value of the pension – with the idea that you could then take the money (rolling it over to an IRA), invest it, and generate your own cash flows by taking systematic withdrawals throughout retirement.
The upside of keeping the pension itself is that the payments are guaranteed to continue for life (at least to the extent that the pension plan itself remains in place and solvent and doesn’t default). Thus, whether you live 10, 20, or 30 (or more!) years in retirement, you don’t have to worry about the risk of outliving the money.
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By contrast, selecting the lump-sum gives you the potential to invest, earn more growth, and potentially generate even greater retirement cash flow. Secondly, if something happens to you, any unused account balance will be available to a surviving spouse or heirs. On the other hand, if you fail to invest the funds for sufficient growth, there’s a danger that the money could run out altogether, and that you may regret not having held onto the pension’s “income for life” guarantee.
Ultimately, though, whether it is really a “risk” to outlive the guaranteed lifetime payments that the pension offers, by taking a lump-sum, depends on what kind of return must be generated on that lump-sum to replicate the payments. After all, if the reality is that it would only take a return of 1% to 2% on that lump sum to create the same pension cash flows for a lifetime, there is little risk that you will outlive the lump-sum even if you withdraw from it for life(1). However, if the pension payments can only be replaced with a higher and much riskier rate of return, there’s also a greater risk those returns won’t manifest and you could run out of money.
Rising Interest Rates
In defined benefit plans, current and future retirees are offered a lump-sum payout or a lifetime monthly pension benefit. Often these plans have billions of dollars worth of unfunded pension liabilities, and in order to get the liability off the books, they pay the lump-sum.
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Depending on lifespan, the initial lump-sum is typically less money than regular pension payments over an entire retirement. However, if interest rates increase by 1% it could decrease the lump-sum offer by approximately 8-10%. Other factors such as income needs, need for survivor benefits, and tax liabilities often dictate the decision to take the lump-sum.
What type of retirement plan does Rogers Corporation offer to its employees?
Rogers Corporation offers a 401(k) retirement savings plan to its employees.
How can employees of Rogers Corporation enroll in the 401(k) plan?
Employees of Rogers Corporation can enroll in the 401(k) plan by completing the enrollment form available through the HR department or the company's benefits portal.
Does Rogers Corporation match employee contributions to the 401(k) plan?
Yes, Rogers Corporation offers a matching contribution to employee 401(k) contributions, subject to certain limits.
What is the maximum contribution limit for the Rogers Corporation 401(k) plan?
The maximum contribution limit for the Rogers Corporation 401(k) plan is in accordance with IRS guidelines, which may change annually.
When can employees of Rogers Corporation start contributing to their 401(k) plan?
Employees of Rogers Corporation can start contributing to their 401(k) plan after completing their eligibility period, which is typically outlined in the employee handbook.
Are there any fees associated with the Rogers Corporation 401(k) plan?
Yes, there may be administrative fees associated with the Rogers Corporation 401(k) plan, which are disclosed in the plan documents.
What investment options are available in the Rogers Corporation 401(k) plan?
The Rogers Corporation 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.
Can employees take loans against their 401(k) savings at Rogers Corporation?
Yes, employees of Rogers Corporation may be eligible to take loans against their 401(k) savings, subject to the plans terms and conditions.
What happens to my Rogers Corporation 401(k) if I leave the company?
If you leave Rogers Corporation, you have several options for your 401(k), including rolling it over to another retirement account, cashing it out, or leaving it in the Rogers Corporation plan if allowed.
How often can employees change their contribution amounts to the Rogers Corporation 401(k) plan?
Employees of Rogers Corporation can change their contribution amounts during designated enrollment periods or as specified in the plan guidelines.