Results for Pension

Choosing a Payment Option

Before you leave the company, you decide how you want your pension benefit to be paid to you—either as a recurring monthly payment or a single lump-sum cash payment. The value of the benefit is equal under all the payment options. However, the actual amounts will differ based on the number of payments that are guaranteed, such as monthly benefits only to you or monthly benefits to you and another person.

Plan Ahead

Before making an election, you should carefully consider your benefit commencement date, early reduction factors that may apply and your distribution choice, as these may affect payment options and benefit amounts. Estimates of benefit amounts as of specific dates may be viewed on EmployeeConnect or obtained by contacting the RASC.

 Pension Payment Options
Single Life Annuity

Available to everyone

How Long Benefits Are Paid

  • A monthly benefit is paid to you for your lifetime.
  • No benefits are paid after you die.

Why Choose It

  • You want to receive the highest monthly benefit possible for your lifetime.
  • There’s no need to provide benefits to anyone else after you die.

NOTE: If you’re married when payments begin, you may be required to submit spousal consent to choose this payment option.

10-Year Certain and Life Annuity

Available to anyone who is retirement-eligible when his or her employment with Rockwell Automation ends

This is the normal or default form of payment if you’re single when you retire and you don’t choose a different payment option.

How Long Benefits Are Paid

  • A reduced monthly benefit is paid to you for your lifetime with benefit payments guaranteed for 10 years.
  • If you die before receiving payments for 10 full years, your named beneficiary will receive the same payment amount for the remaining months.
  • Payments to your beneficiary will stop after payments have been made for a total of 10 years (payments to you plus payments to your beneficiary).

Why Choose It

  • You want to receive a monthly benefit for your lifetime.
  • You want to provide a beneficiary with a limited number of payments if you were to die within 10 years of when your payments start.

NOTE: If you’re married when payments begin, you may be required to submit spousal consent to choose this payment option. This payment option is not available to employees who leave Rockwell Automation before they are eligible for early retirement.

Joint and Survivor Annuity

Available to everyone who is married

The 50% Joint and Survivor Annuity is the normal or default form of payment if you are married and you don’t choose a different payment option (with your spouse’s consent).

How Long Benefits Are Paid

  • A reduced monthly benefit is paid to you for your lifetime.
  • If you die before your spouse, he or she will receive a monthly benefit for the rest of his or her life. If your spouse dies before you, no benefits will be paid to a new beneficiary when you die. In addition, once your payments start, you cannot change your payment option—even if your spouse dies before you or you get divorced.
  • The monthly benefit amount is calculated based on your age and your spouse’s age when your benefit payment is to start, and you choose the monthly amount your spouse is to receive after you die, such as 50% or 75% of your monthly benefit. Refer to the personalized Pension Calculation Statement you will receive in your Pension Benefit Commencement Kit for the benefit amounts.

Why Choose It

  • You are married at the time you elect your benefit.
  • You want to provide ongoing monthly benefits to your spouse for his/her lifetime.
  • Your spouse will not consent to a different form of payment.
Lump-Sum Cash Payment

Available to everyone

How Long Benefits Are Paid

  • You receive a single cash payment of your entire benefit. No other benefits are payable under the Plan after you receive the payment.
  • The single cash payment is equal to the present value of your monthly payments, which are determined by the interest rates released each August and mortality table in effect at the time you receive the benefit.
  • You can defer paying taxes on your lump-sum payment by directly rolling it over to an IRA or other eligible employer’s retirement plan. If you don’t directly roll over your payment, then you have 60 days to roll it over.

NOTE: If you don’t directly roll over your lump-sum payment, the IRS requires that 20% automatically be withheld and you will have to pay additional income taxes at tax filing time if the 20% withholding amount is not enough. If you are under age 59½, early withdrawal taxes may apply. Your payment is also subject to state and local income taxes where applicable. Some states, such as Ohio, require automatic state tax withholding, and you may be required to pay additional taxes at tax filing time if the amount withheld is not enough.

Why Choose It

  • You feel comfortable investing the lump-sum value of your pension benefit so that you can provide yourself with a steady stream of lifetime income.
  • You do not want to receive monthly benefit payments for life.
  • You may have the opportunity to pass any remaining amount of your lump-sum payment to your heirs upon your death.

NOTE: If you’re married when payments begin, you may be required to submit spousal consent to choose this payment option.

Still Have Questions?

What to Do After You Leave the Company: If You Elect the Single Life Annuity, 10-Year Certain and Life Annuity or Joint and Survivor Annuity

Keep the RASC informed of any changes in your personal situation, such as your address, direct deposit or tax withholding details. If you elect the 10-Year Certain and Life Annuity and your beneficiary dies before 10 years of payments are made, you may want to update your beneficiary designations.

What to Do After You Leave the Company: If You Elect a Lump-Sum Cash Payment

Your entire pension benefit will be paid to you after you leave the company, and there is nothing further you need to do when it comes to your pension benefit, unless you move during the same year your benefit is paid to you. In that case, you will need to inform the RASC of your new address so that the appropriate tax forms may be sent to you.

Seek financial advice for retirement

You have some important choices to make before you retire. Trusted investment advisors, tax specialists or attorneys can help you make decisions that are best for you and your financial situation. To give your financial advisors a better idea of the retirement benefits you get from Rockwell Automation, it’s a good idea to share your important benefits-related documents with them, such as:

  • The Summary Plan Descriptions (SPDs) for your retirement benefits (Pension Plan, Retirement Savings Plan and Retiree Medical)
  • Your most recent benefits statements (Pension Plan benefit estimate from Your Benefits ResourcesTM through EmployeeConnect or the RASC and Retirement Savings Plan account statements from Fidelity)
  • Your beneficiary designations (from Your Benefits ResourcesTM through EmployeeConnect and Fidelity)
  • Your Guide to a Hassle-Free Retirement

You can download copies of your SPDs and Your Guide to a Hassle-Free Retirement by going to the Your Benefits ResourcesTM home page from EmployeeConnect, or you can request copies be sent to you by calling the RASC.