Extracts From The John Donovan Ebook End
Related further information
The above photograph was taken immediately after the Malaysian High Court ruled in favour of 399 former Shell employees known as Team A in what was an epic class action lawsuit. The Judge ruled that Shell had acted unlawfully in making deductions from the employee retirement pension funds. Under a hard-hearted management, headed by then Chairman Jon Chadwick, Shell successfully appealed the decision by exploiting a legal loophole relating to litigation time limits. Many of the former employees were elderly, sick and dying.read more
Sam Meadows: 3 SEPTEMBER 2017 7:53AM
Dividends at some of Britains largest companies many of them likely to be a staple of your portfolio could be at risk from ballooning pension deficits.
Huge final salary pension obligations have the potential to limit your investment returns, with tighter regulation and negative publicity surrounding the demise of BHS, the defunct retailer once owned by Sir Philip Green, already taking their toll.
Analysis by Telegraph Money shows that, of the 10 companies paying the highest dividends in Britain, seven have a pension deficit of more than £10bn, prompting concerns for the sustainability of paymentsto shareholders. Many of us will be investing in these companies through company pension schemes and other savings plans.read more
Paddy Briggs outspoken on revolting Shell FAT CATS
RETIRED SHELL EXEC PADDY BRIGGS
Shell Provident Fund & Shell Pension Plan Analysis
Lump sum versus monthly payments. Well help you maximize your Shell Pension Plan and your Shell Provident Fund to help optimize your income during retirement.
As a fully independent Registered Investment Advisor and fiduciary with over 25 years of experience, we have a legal obligation to put your interests first. Our fee-only model seeks to provide objective advice without the conflicts of interest commonly seen with banks, brokerage firms and mutual fund companies.
Tax Efficient Cash Flow Planning
Once youve decided to retire, grasping how youll meet your monthly spending needs may be difficult to fathom. Through careful planning, we can help you develop an optimal withdrawal and cash flow strategy to potentially minimize taxes during retirement. Determining the optimal cash flow strategy can greatly impact the probability of not outliving your assets.
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What Is Your Shell Pension Plan Really Worth Heres How To Calculate It
Shell pension plans provide supplemental retirement income for all Shell employees. To incorporate these income sources into your retirement planning, youll need a good understanding of the different variables involved in their calculation.
Have you ever wondered if theres a surefire way to determine the pension benefits youll earn after retirement from Shell?
Whether youre enrolled in the Shell 80 Point Pension Plan or the Shell APF Pension plan, its important to understand how to calculate your average final compensation . Why does this matter? In a nutshell, the higher your AFC, the higher your retirement benefits will be.
We Help Shell Employees Transition To Retirement
Retiring after decades of service in the energy sector can present its own unique set of challenges. Highly appreciated and large concentrations of company stock, periods of rapidly changing commodity prices, and decisions regarding when and how to take pensions are all factors that can drastically impact your long-term financial security in retirement.
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Retiring From Shell After Age 65
Once you reach 65, you and your dependents will be eligible for Medicare supplemental coverage. As a Shell retiree, youll also be eligible for Shells Medicare secondary coverage.
Once you or your spouse become Medicare eligible, your primary healthcare coverage will be through Medicare. Shell offers Medicare secondary coverage that can replace Medicare Part A and Part B coverage .
For Part C benefits, you have multiple options available to you the complimentary program offered through Shell and a PPO optionthat can be secured separately.
Understanding Your Healthcare Benefits After Retiring From Shell
As you approach retirement, you have many things to look forward to from a second career to travel to time with family. To be able to achieve those goals, youll need to allocate a portion of your retirement resources to taking care of your health.
As we age, we generally see higher costs and more time spent on healthcare and health issues/concerns. In fact, people in their early 60s may pay as much as $30,000to purchase healthcare coverage on the open market.
However, health is wealth, as the old adage says, and ensuring your health and well-being should be a primary concern as you plan your retirement. Otherwise, you may spend more than you intended on medical coverage or may neglect your health altogether, both of which can end up costing you in the long run.
When youre preparing to retire from Shell, you have a variety of healthcare options available to you. Determining which options make sense for you depends on your age, years of service with the company, and health coverage needs.
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Support Above And Beyond
Youll get the information and advocacy to help you get the most of your health and wellness benefits:
- Telephonic Nurse Support lets you talk to a registered nurse anytime, day or night, for answers or guidance.
- With UnitedHealthcare® HouseCalls, you can get early checkups at home, helping you stay up to date on your health between regular doctors visits.
- If you have a device computer, tablet or smartphone you can see a doctor or behavioral health specialist through Virtual Visits.
- Through UnitedHealthcare Hearing,** youll receive a hearing exam and access to a wide selection of hearing aids.
- Looking for inspiration and empowerment? Renew by UnitedHealthcare® provides a variety of resources and activities to help you take charge of your health and wellness every day.
- And dont forget to keep your body and mind in motion Renew Active® makes it easier with a free gym membership, access to the online Fitbit Community®, an online brain health program from AARP® Staying Sharp® and more.
Maximizing Retirement Benefits Through Backdoor Roth Contributions
A backdoor Roth contribution is a strategy in which a non-deductible IRA contribution is made to a traditional IRA and subsequently converted to a Roth IRA.
In addition to the after-tax rollover savings strategy, as a Shell saver, you can put $6,000 into a Roth IRA every year, even if youre over the income limit to contribute directly.
For married couples, both spouses can make backdoor Roth contributions. If youre also rolling over your after-tax 401 funds, you can add $32,000 to your Roth IRA each year. There are a few stipulations and nuances tied to this strategy, including:
Taking advantage of backdoor Roth contributions over the course of several years will allow you to increase the tax-free funds you can access in retirement.
Shell Board Confronted By Pensioner Welfare Question From Paddy Briggs
Regular visitors may recall my article published in December 2016 Shell cost-cutting plan will undermine the welfare of its pensioners.
It included an extract from a Facebook posting on the subject by retired Shell executive Paddy Briggs . Paddy confronted the Shell board on the subject yesterday. As is evident from the response in the transcript below, they seemed ill-prepared for the question, which compared huge sums paid to Shell directors such as Ben van Beurden with welfare cuts being made to Shell pensioners. As a result of his intervention, the board has agreed to review the issue he raised. read more
Employee Benefits & Individual Coverage
The benefits landscape is constantly changing. For the record, good service is not when a broker shows up at renewal time at the 11th hour and facilitates a marketing. Good service is not being wined and dined. Good service is not when a broker puts out a fire. Our intent is not to point fingers but to warn you that it takes $300 and a pulse to call yourself an advisor and that our industry truly is the wild west. It’s saturated and lacking standardized designations. Buyer Beware.
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Work And Family Programs
To help balance and support work and family responsibilities, Shell offers a variety of programs such as Employee Clubs, Wellness Reimbursement for approved fitness and nutritional activities, Parental Leave and Child Care Referral services, as well as Adoption Assistance.
At Shell, we value work-life balance. We support flexible working arrangements to encourage our employees well-being.
Joyce Loh, HR Manager
How To Maximize Savings Using Your Shell Retirement Benefits
If youre about 10 or 15 years from retirement, you may be wondering where you stand. In particular, is your saving on track and at a point that allows you to coast through the next few years on autopilot, or do you need to be more intentional about when and where youre saving?
As a Shell employee, you have a number of valuable retirement savings vehicles available to you that you should use to your full advantage, regardless of whether youre 35 or 65.
These resources are:
With so many options, it can take some coordination and strategy to maximize your retirement planning and saving success.
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Associated Risks To Which Retirement Benefits Are Exposed
There are inherent risks associated with defined benefit pension and OPEB plans. These risks are related to various assumptions made on valuation of the liabilities and the cash funding requirement of the underlying plans. Volatility in capital markets or government policies, and the resulting consequences for investment performance, interest and inflation rates, as well as changes in assumptions for mortality, retirement age or pensionable remuneration at retirement, could result in significant changes to the funding level of future liabilities, and in case of a shortfall, there could be a requirement to make substantial cash contributions .
These inherent risks are managed by a pension forum, chaired by the Chief Financial Officer, which oversees Shellâs pension strategy, policy and operations. The forum is supported by a risk committee in reviewing the results of the assurance process with respect to the pension risk.
Income Limitations On Shell Provident Fund 401 Contributions
If youre a highly compensated employee, you need to employ some additional strategic considerations when planning your annual Provident Fund contributions.
The IRS limits contributions for people who earn more than $305,000 during a calendar year. Once you reach that point, Shell will no longer make contributions on your behalf.
If you expect youll reach that threshold, you may want to front-load your retirement contributions to maximize the funds Shell will add to your account and ensure youre not leaving any money on the table.
For example, if Shell provides their maximum contribution to your 401 account, the most they can possibly give you is $30,500. If youre a high earner, you should schedule your contributions in such a way that youll receive the full employer contribution before you reach the $305,000 threshold.
The Provident Fund 401 is a valuable retirement savings option, and contributing to it both early and with consistency allows for greater growth over time, or for the possibility of earlier retirement.
Before selecting a retirement date from Shell, make sure you’re not leaving any money on the table.
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What If I Have A Double
Technically, there could be certain scenarios in which youd receive a total of four bonuses in a 36-month time frame. For example, when you choose to retire, you may receive a prorated bonus payment within the same year you received a traditional bonus payment.
If that year happens to fall within your highest earning period, does the extra bonus money mean a boost to your pension calculations?
To the disappointment of many clients, it, unfortunately, does not. Instead, only an additional layer of calculation is included.
Instead of including all four bonuses, your AFC calculation will include only three of the bonuses paid in your highest-earning 36 months. The total of the first three ICPs is compared to the total of the second three ICPs then, the highest total value is used for the calculation.
But Shell will only use three of the four ICPs in those three highest years and they compare them as follows:
The updated bonus calculation is then plugged into the annual salary amount used for AFC calculations.
Even if the extra/bonus ICP is higher than the others, the calculations are still managed the same way, by choosing the top three ICPs to complete the AFC calculation.
Shell would use the higher three of the four ICPs to calculate your AFC:
As you can see from these examples, figuring out your pensions value can be complicated.
Fidelity Shell Oil Company Face Latest Erisa Lawsuit
The Shell Oil Company, several of its executives and multiple business units of Fidelity are all named as co-defendants in a complex fiduciary breach lawsuit filed in Texas.
The latest Employee Retirement Income Security Act lawsuit, filed in the U.S. District Court for the Southern District of Texas Galveston Division, names as defendants the Shell Oil Company and various business units of Fidelityalong with a handful of Shell executives and named plan fiduciaries.
As is the case in many ERISA lawsuits, the plaintiffs filed their proposed class action on behalf of themselves and the Shell Provident Fund 401 Plan as a whole. Their suit echoes various fiduciary breach allegations that have been leveled in recent years against other large employers, including Trader Joes and Northrop Grumman.
In this case, plaintiffs allege that Shell failed to use the multi-billion dollar plans bargaining power to benefit participants and beneficiaries in the form of lower recordkeeping and asset management fees. They also allege that the Shell defendants allowed unreasonable expenses to be charged to participants for administration of the plan and managed account services, and that they failed to even monitor numerous funds in the plan at all.
In the text of the lawsuit, the plaintiffs allege that, since 2014, the Shell defendants have retained more than 300 designated investment options in the plan, most of which are Fidelitys proprietary mutual funds.
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Defined Benefit Plan Obligations
Rest of the world
Includes pension plans in Germany and Canada as the largest pension plans in the rest of the world.
Mainly related to post-retirement medical benefits in the USA.
Rest of the world
Includes pension plans in Germany and Canada as the largest pension plans in rest of the world.
Mainly related to post-retirement medical benefits in the USA.
How Much Will My Retirement Healthcare Coverage Cost Me
Shells retiree medical coverage and medical coverage premiums are dependent upon reaching retiree coverage eligibility. The requirements are as follows:
Be at least 50 and have your age plus eligibility service equal to at least 80 Points,
Terminate at age 65 or older,
Leave with a disability pension, or
Satisfy the 70 Point eligibility rule
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For Employees Hired Prior To Jan1 2006
Shell may provide a subsidy of the companys premium contribution to employees hired before Jan. 1, 2006. This subsidy is provided on the premise that a retiree meets retiree coverage eligibility, and if so, the subsidy is based on years of service based on the chart below:
For example, employees who retire with retiree coverage eligibility and more than 30 years with Shell will have company premiums fully covered. The retiree will continue to pay their portion of the premiums. Employees who retire with retiree coverage eligibility and at least 10 years of service may have at least a portion of their company premiums subsidized.
Independent Management For Your Self
A little-known feature of the Shell Provident Fund is the self-directed Account Plan which allows participants to access more investment options in 401. Through Fidelitys BrokerageLink®, we provide independent investment management that incorporates your entire financial picture when making financial decisions.
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Thats Where We Come In
Located in Houston, Tx, weve helped many clients navigate their Shell employee benefits packages and retire from Shell and other companies in the energy sector. Given this experience, we understand the unique challenges and opportunities you face in your industry and company-specific benefits programs.
Whether a current Shell employee trying to determine how to maximize your Shell retirement benefits or retired and looking for help with diversifying your Shell stock, we provide highly customized solutions to help you maximize retirement.
Maximizing Retirement Benefits Through The Shell Provident Fund 401
The Shell Provident Fund is Shells 401 plan. You can contribute to the plan, and have the option of doing so pre-tax, after-tax, or using Roth income.
In addition, Shell contributes generously on behalf of its employees, putting between 2.5 and 10 percent of your annual cash compensation into the 401. The exact amount depends on your tenure with the company.
Your 401 contributions can increase slightly as you near retirement age. If youre under 50, you can contribute up to $20,500 between pre-tax and Roth. If youre over 50, youre allowed to contribute an additional catch-up amount of $6,500, for a total contribution option of $27,000 in 2022.
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