Glossary Term
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Definition
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Accrued Benefit
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The pension benefit that you earn based on a formula using your base pay, age, and years of service.
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Annual Cash Award
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The annual cash award is a component of variable compensation, which is paid annually in cash. All associates are eligible to receive annual cash awards, at the discretion of the Company.
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Anticipated Annual Pay Rate Increase
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The average annual increase you expect to receive during the remainder of your career. You have the option of using estimated future pay increases from 0% to 12% to project your pay used to calculate your future estimated pension benefit.
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Base Annual Pay
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For the Basic Life and AD&D insurance plans, base annual salary means your annual rate of earnings. It does not include lump sum merit increases, incentive compensation, commissions, night shift bonuses, overtime, other bonuses, or other compensation.
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Base Salary
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A fixed amount of pay provided to an associate for performing a specific job. Base salaries are determined by several factors, including the size, scope and responsibilities, skills and experience within each job, in comparison to salaries of similar position both internally and externally in the marketplace and, generally, an individual’s performance.
Salary increases are determined based on individual performance, as well as internal and external competitiveness. Salary increases are generally done as part of the annual year-end process (effective as of March 1); in the case of a promotion or a job re-evaluation, they may also occur at any time during the year.
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Base Pay
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Base pay refers to your regular wages of salary, excluding bonuses, overtime, and housing allowances.
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Beneficiary Date of Birth
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Your beneficiary is the person who (depending on your election) may receive a portion of your retirement benefit after your death. Your beneficiary birth date is needed to calculate the benefit you will receive under the joint and contingent benefit options. A joint and contingent annuity provides for a lifetime benefit continuing to your beneficiary after your death. Married participants electing someone other than their spouse as beneficiary must obtain spousal consent.
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Benefit Service
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The years of service with the Company used in determining your accrued benefit.
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Commencement Age
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The age you start collecting your monthly pension. Monthly benefit payments are made at the beginning of each month and begin on the first day of the month following the month you attain your retirement age. For example, if you turn 65 (and that is the retirement age you selected) on June 25, your first payment will be July 1.
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Commencement Date
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The date you start collecting your monthly pension. Monthly benefit payments are made at the beginning of each month and begin on the first day of the month following the month of your retirement date. For example, if you retire June 25, your first payment will be July 1.
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Credited Service
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The years of service used in determine your accrued benefit up to a maximum of 40 years. If your employment began as a result of an acquisition rules may apply to your credited service.
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Deductible Income
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Deductible income is other income that you earn or receive or are eligible to receive because of your disability. It reduces your disability benefit.
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Early Retirement Age
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You qualify for early retirement any time after: 1) age 55, if you have completed ten years of Vesting Service; or 2) age 62, if you have completed at least 5 years of Vesting Service.
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Eligible Earnings
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Eligible earnings includes your base salary, shift differential pay, and the first $300,000 earned in commissions (bonuses/incentive earnings are not included) up to the IRS limit of $345,000 for qualified plans for 2024. This holds true for non-qualified plans as well, except without the IRS limit of $345,000.
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Final Average Pay
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Final Average Pay means your average monthly compensation, received while you are a participant in the Plan, during the highest 120 consecutive bi-weekly pay periods. In the event you are employed less than 120 consecutive bi-weekly pay periods, the computation is based on your last completed number of consecutive bi-weekly pay periods. If you have a break in service, your earnings prior to the break may be combined with your earnings after rehire in order to compute your Final Average Pay.
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Five Year Certain & Life Annuity
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This benefit pays you a monthly annuity for your lifetime. If you should die before receiving 60 monthly payments, the payments will continue to your pension beneficiary until the equivalent of 60 total payments has been made.
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Inflation
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Essentially, inflation is the rate at which the general level of prices for goods and services in an economy is rising, and, subsequently, purchasing power is falling. In the U.S. economy, inflation is usually measured by the Consumer Price Index (CPI) or Producer Price Index (PPI). Over time, as the cost of goods and services increases, the value of a dollar falls because a person is able to by less goods and services with that dollar as prices for those items rises. Therefore, you want your investments to grow at least as fast as inflation so that you can buy the same goods in the future that you can buy with the dollars you have today.
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Joint and Survivor Annuity
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This benefit pays you a monthly annuity for your lifetime. Upon your death, your pension beneficiary is entitled to receive a choice of 100%, 66 2/3 %, or 50% of the monthly annuity for their lifetime.
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Life Annuity
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This benefit pays you a monthly annuity for your lifetime. It ends upon your death.
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Long-Term Award
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A long-term award is a component of variable compensation that is granted in the form of units under the Long-Term Performance Plan (LTPP). LTPP eligibility is determined by the amount of your total compensation during the year-end compensation cycle. Long-term awards are designed to foster organization-wide focus and support the organization’s goals and strategic plans. Awards are denominated in performance units, which will vest after three years.
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Lump Sum
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This benefit pays you a single lump sum payment that represents the Plan`s entire obligation.
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Normal Retirement Age
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Age 65.
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One-Year Break in Service
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If you complete 500 hours of service or less within a plan year, except for the partial years when you are hired or terminate, you will experience a one-year break in service.
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Pension Beneficiary
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Your pension beneficiary is the person you name to receive your pension benefit in the event of your death. If you are married, your spouse is automatically your pension beneficiary.
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Pre-disability Earnings
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Pre-disability earnings means your weekly rate of earnings from TIAA in effect on your last full day of active work including, but not limited to:
- Elective contributions that you make through a salary reduction agreement to any of the following:
- A plan or arrangement described under Code Sections 401(k), 403(b), 408(k), 408(p), or 457
- An executive nonqualified deferred compensation arrangement;
- Amounts contributed to your fringe benefits according to a salary reduction agreement under a plan described under Code Section 125, and
- Shift differential pay
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Qualified Joint and Survivor Annuity
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If you are married or have a qualified domestic partner, your benefit will be paid as a Qualified Joint & Survivor Annuity (providing your surviving spouse or qualified domestic partner with 50% of your benefit amount after you die). Federal law requires that your spouse provide written consent, witnessed by a notary public, if you choose a payment option other than the Qualified Joint & Survivor Annuity or you name a beneficiary other than your spouse.
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Qualified life event
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Qualifying life events include:
- Marriage, divorce, annulment or change in domestic partnership status
- Birth or placement for adoption of a child
- Death of a spouse, domestic partner or other qualifying dependent
- Change of employment status (such as starting or ending a job) for you, your spouse/domestic partner or dependent
- Change in a dependent’s eligibility status (such as child reaching age 26)
- Change in your residence or in the residence of your spouse or a dependent that results in eligibility or ineligibility under your (or your dependent’s) group health plan
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Single Life Annuity
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This benefit pays you a monthly annuity for your lifetime with no survivor benefit.
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Surviving Spouse Benefit
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If you are married or have a qualified domestic partner for at least one year at the time of your death and die after becoming Vested but before retiring, your spouse/qualified domestic partner will receive a benefit equal to the half of your benefit were you to have retired the day before you died. If you were not eligible for Early Retirement at the time of your death, the Surviving Spouse Benefit will begin the first of the month following the date you would have turned age 55.
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Ten Year Certain & Life Annuity
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This benefit pays you a monthly annuity for your lifetime. If you should die before receiving 120 monthly payments, the payments will continue to your beneficiary until the equivalent of 120 total payments has been made.
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Termination Age
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Your estimated age at your termination date.
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Termination Date
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Your estimated last day worked.
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Variable Compensation
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Includes your annual cash award and long-term award, if applicable. These awards are considered variable compensation because they can change from year to year. Variable compensation is performance-based and evaluated annually through our year-end process.
Your variable compensation award is determined by several factors, including:
- The organization’s performance
- The organization’s total variable compensation pool (and the portion of the pool allocated to your area)
- Your performance rating and your performance relative to internal peers, and
- Your total compensation relative to internal peers and the external market.
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Vested
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Vested means you have an earned right to your pension benefit. You are vested after three years of service with the Company or if you are age 65 or older when you leave the company. Once you are vested, you are entitled to pension benefits under this Plan whether or not you continue employment with the Company or an Associated Company.
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Vesting
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Vesting is your non-forfeitable right or ownership of your benefit, even if you leave the organization. You are vested in your Retirement Benefit Equalization Plan benefit after three years of service (after age 18) or upon reaching age 65. You also become vested if you die.
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Vesting Service
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Vesting Service is time counted toward being eligible for your pension benefit. You may earn vesting service while employed at the Company in a job that is not covered by the retirement plan.
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Year of Service
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You earn one Year of Service for each plan year in which you are paid for at least 1,000 hours. Once you qualify as a participant, you may also earn partial years of service in the year you are hired and the year you terminate or retire, if you don`t work at least 1,000 hours in those years.
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Years of service
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Years of service means years of employment starting on your hire date.
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