Profit Sharing, Optional Life & Dependent Insurance and PSP Updates

Profit Sharing Information

On February 3, in accordance with the UAW-GM National agreement, GM announced a maximum profit sharing payment of $11,000.00 for eligible hourly workers who accrued 1,850 or more compensated hours during 2015. Eligible hourly workers who accrued less than 1,850 compensated hours will receive a pro-rated share based on the number of accrued compensated hours. Payment is scheduled to be included in active employee paychecks received on Friday, February 26. Eligible retirees (those who retired and had compensated hours in 2015) will receive their payment Friday, March 25.

Optional Life and Dependent Life Insurance

As a result of discussions between the UAW and General Motors, certain hourly workers will have a life insurance enrollment opportunity under the General Motors Life and Disability Benefits Program for Hourly Employees for Optional Life and Dependent Life Insurance coverage’s.

Hourly workers will be able to make elections for Optional Life and Dependent Life Insurance through a Special Enrollment conducted by MetLife from March 7, 2016 through March 18, 2016.  Workers on active status or a Leave of Absence of six months or less as of December 18, 2015 will be eligible to first time enroll at the $10,000 or $20,000 Optional Life Insurance coverage level or increase current coverage by two levels without providing proof of insurability.  Members will also be eligible to enroll for or increase Dependent Life Insurance by answering five health questions.

Enrollment Kits will be mailed to the address of record of all eligible workers beginning February 29, 2016.  Members who have questions or need replacement Enrollment Kits may call 1-866-607-9794 Monday through Friday, between 8:30 AM and 5:00 PM Eastern Daylight Savings Time.

 

Personal Savings Plan

Contents:

  • IRS Limits for 2016
  • Participant-Directed Annual Increase Program (AIP)
  • Investment Election in 1% Increments
  • Saving for College with a 529 College Savings Plan
  • Keep Your Beneficiary Designation Current

-IRS Limits for 2016

You can defer up to 100% of your weekly eligible base pay into the PSP, up to the IRS contribution limits outlined below.

There was no change to the IRS annual limits from 2015.

Annual Limit Description 2015 2016
Pre-tax/Roth Limit Includes combined pre-tax and Roth contributions made by you. $18,000 $18,000
Catch-up Contribution Limit Individuals age 50 or over (or who will be age 50 by year-end) have opportunity to save additional pre-tax and/or Roth savings.

This requires you to make a separate election specifically for Catch-up (it will not happen automatically).

$6,000 $6,000
Defined Contribution Savings Limit The maximum amount of combined employee and GM contributions. $53,000 $53,000
Highly Compensated Employee Limit The amount of income to define a highly compensated employee. $120,000 $120,000

Once you hit your Pre-tax/Roth limit for the year ($18,000), your contributions will automatically stop. If you wish to continue to save on an After-Tax basis, you will need to make your election online at gmbenefits.com or contact the GM Benefits and Services Center at 1-800-489-4646.

-Participant-Directed Annual Increase Program (AIP) – Available Now!

Participant-Directed Annual Increase Program (AIP) is a service that automatically increases your contribution each year at a rate and date that you choose.

To enroll, simply log onto www.netbenefits.com. From the homepage, click Contribution Amount on the “Quick Links” drop down. Then select Annual Increase Program.

-1% Increments for Investment Elections – Option Now Available!

Previously, you could only make investment elections in 10% increments.  Effective now, you may make investment elections in 1% increments.  To change your investment elections on file, log on to www.netbenefits.com. From the homepage, click Contribution Amount on the “Quick Links” drop down. Then select Contribution Amount.

-Saving for College with a 529 College Savings Plan

As result of 2015 national negotiations, you are being provided with more information on 529 College Savings Plans.

A 529 Plan is a type of savings plan that can help you save funds for future college costs. 529 plans, named for Section 529 of the Internal Revenue Code that created these types of plans, are operated by states or educational institutions.

Most states now offer some kind of 529 plan. Each state can decide how to set up its plan, so plans can be different from state to state. You can participate in a 529 plan in any state you choose. It is a good idea to research the features and benefits to find the plan that best suits your needs.

For more information, see the flyer Planning for College – Why Save? located in the Plan Information & Documents area of NetBenefits. The flyer outlines different types of college savings plans, including 529 plans.

 -Keep Your Beneficiary Designations Current!

Has a life event occurred in your family? A marriage, divorce, or death? Participants often fail to update their beneficiary election after a death or divorce occurs in their family. The same is true of a birth or adoption. Keeping your beneficiary information up-to-date and complete can ensure that your PSP account balance will be paid to your family member(s) or individual(s) you want to receive your account balance in the event of your death.

 Take the time today to review your beneficiary. If necessary, update your beneficiary using the online beneficiary tool at www.netbenefits.com. Click on Profile>Beneficiaries.

As always, should you have questions regarding your benefits please contact your Local Union Benefits Representative.