Ford SSIP and TESPHE 401(k) Plans

Ford is offering a Special Incentive Program (SIP) to certain Ford salary employees. What makes the SIP a more generous offer by the company, based on historical packages, is the “Severance Benefit” for years of service. The “Reemployment Assistance” program is also worthwhile to those younger employees who choose to separate but are not yet ready for full retirement.

For those evaluating a buyout offer, there are important factors to consider:

• Am I prepared financially to retire?
• Should I consider the pension lump sum?
• Have I developed a comprehensive Financial Plan?
• How will the SIP offer impact my retirement decision?
• Are my investments allocated appropriately for this important life event?
• What should I do with the assets in my SSIP when I retire?
• Are there investment products or strategies I should avoid?

Mainstay Capital Management is a fee-only, independent investment advisor that provides portfolio management and retirement planning services as well as counsels hundreds of Ford employees on buyout offers. We can provide a comprehensive Retirement Income Analysis, help evaluate "what-if" scenarios, and assist in making informed decisions concerning any buyout offer.

Call Mainstay Capital Management toll-free at 1‑866‑444‑6246 to discuss your personal situation with a Certified Financial Planner^TM.

Ford Motor Company has announced the transition of a new benefits administrator from ACS to Alight Solutions, along with the unveiling of a new health and retirement benefits website. Implementation will begin on January 2, 2019.

We wanted to make you aware of several key points involving the transition and offer our assistance:

• Your action is required to establish new login and security access for your Ford SSIP or TESPHE account. Are you aware of the details specific to your situation? 

• Importantly, a blackout period during the transition will take place in which you will be unable to access any of your benefit information. Is your Ford 401(k) portfolio allocated appropriately for the duration of this blackout? 

• FRP (Ford Retirement Plan) accounts will merge into the Ford SSIP. How will this impact your overall portfolio?

We are offering our assistance during this transition.

To discuss these changes to the Ford 401(k) plan and how this may impact your current portfolio allocation, do not hesitate to contact us toll-free at 1-866-444-6246.

*A resolution has been put in place to eliminate the reallocation error.

Ford plan participants attempting to place trades in the Ford TESPHE (Tax Efficient Savings Plan for Hourly Employees) account since December 30, 2016, may have received an ALERT which prohibits making a fund reallocation.

The ALERT is due to an error which is occurring as a result of a Fidelity fund change within the Plan at the end of the year.

Mainstay has brought this issue to the attention of the Ford Compensation and Benefits Office and is working with them towards a resolution.

Please do not hesitate to contact Mainstay toll-free at 1-866-444-6246 with questions regarding this ALERT or for assistance in reallocating your Ford 401(k) portfolio.

Ford Motor Company has announced changes that will impact the Savings and Stock Investment Plan (SSIP) for salaried employees and the Tax-Efficient Savings Plan for Hourly Employees (TESPHE).

Effective as of the close of business on December 30, 2016, the name and fees of the Fidelity Growth Company fund will change. The new fund is not changing its investment objective, strategy, or holdings. However, this fund will no longer be a mutual fund, but rather a commingled pool.

To discuss the new investment option or how this change may impact your investment allocation, contact us toll-free at 1-866-444-6246.

Ford Motor Company is changing the names and/or fees in two of the Vanguard funds available in the Ford Retirement Plan (FRP), Savings and Stock Investment Plan (SSIP), and the Tax-Efficient Savings Plan for Hourly Employees (TESPHE).

These Vanguard funds are not changing their investment objective, strategies, or holdings. However, the new funds are collective trusts, not mutual funds. All balances in and investment elections to the current funds will be transferred to the new funds as of the close of business on September 27, 2016.

To discuss the new investment options or how these changes may impact your investment allocation, contact us toll-free at 1-866-444-6246.

Under the 2015 National Negotiations, Ford Motor Company and the UAW are offering special separation and retirement buyout programs to UAW-represented employees. There are two programs offered, the Special Retirement Incentive (SRI) and the Special Termination of Employment Program (STEP). The decision to accept any separation program requires careful analysis and planning on the part of each employee.

For those evaluating the SRI or STEP, there are important factors to consider:

• Am I financially ready to go?
• Have I developed a comprehensive Retirement Income Plan?
• How will the SRI or STEP impact my retirement plan?
• Are my investments allocated appropriately for this life event?
• What should I do with the assets in my TESPHE?

Mainstay Capital Management is a fee-only, independent investment advisor that can provide a comprehensive Retirement Income Analysis, help evaluate "what-if" scenarios, and assist in making informed decisions concerning any buyout offer.

Call Mainstay Capital Management toll-free at 1-866-444-6246 to discuss your personal situation with a Retirement Planning Specialist.

Ford Motor Company is removing one of the funds in the Savings and Stock Investment Plan (SSIP) for salaried employees and the Tax-Efficient Savings Plan for Hourly Employees (TESPHE). This fund will not be replaced with a new investment option.

This change is effective September 2, 2015. Transfers out of the closing fund must be complete by market close on September 2^nd or balances will automatically transfer to an alternate fund in the plan.

To discuss the investment line-up change or how this change may impact your investment allocation, contact us toll-free at 1-866-444-6246.

Ford has announced changes to the investment menu within the Health Savings Account (HSA). Effective March 27, 2015, Harbor Capital Advisors, Inc. Bond Fund (HABDX), PIMCO Low Duration Fund (PLDDX), and Neuberger Berman Mid Cap Intrinsic Value (NBRVX) are closed to new investors. HSA participants currently investing in these funds may continue to do so.

In addition, on or about April 24, 2015 the Parnassus Small Cap Fund (PARSX) will be merged with the Parnassus Mid Cap Fund (PARMX). If you currently hold the Parnassus Small Cap Fund, your account will automatically reflect this non-taxable transaction to the Parnassus Mid Cap Fund. No action is required on your part.

For those currently holding Neuberger Berman Mid Cap Intrinsic Value, per our current recommended conservative or growth model portfolios, you may continue to do so. If you are new to Mainstay’s Ford HSA model portfolios, or are getting caught up, please use Oppenheimer Main Street Small & Mid Cap as an alternative fund.

If you have questions regarding how these changes may affect your HSA portfolio or your investment option selection within the Ford HSA, do not hesitate to contact Mainstay toll-free at 1 866 444 6246.

In addition to an earlier change in October, Ford Motor Company will make additional adjustments to the Savings and Stock Investment Plan (SSIP) for salaried employees and the Tax-Efficient Savings Plan for Hourly Employees (TESPHE). The investment lineup for the plans will undergo a significant overhaul.

All changes are effective January 2, 2015. On December 31, 2014, all affected funds will be closed to new investments and current allocations will transfer to the replacement funds being added to the plans.

To discuss the investment line-up overall or how these changes may impact your investment allocation, contact us toll-free at 1-866-444-6246.

Ford Motor Company will drop one of the bond funds currently available to participants in the Savings and Stock investment Plan (SSIP) for salaried employees and the Tax-Efficient Savings Plan for Hourly Employees (TESPHE).

Effective November 14, 2014, the fund will be closed to new investments and current allocations will transfer to an existing fund in the plan.

To discuss this recent fund removal, our insight into the change, or how it may impact your investment allocation, contact us toll-free at 1-866-444-6246.

Ford Motor Company has announced changes that will impact a specific mutual fund investment option in the Savings and Stock Investment Plan (SSIP) for salaried employees and the Tax-Efficient Savings Plan for Hourly Employees (TESPHE).

Effective May 1, 2014, the ING Clarion Global Real Estate Securities Fund will change its name to Voya Clarion Global Real Estate Securities Fund. This will be a name change only - the fund manager, investment objective, and fees will remain the same.

In addition, Ford Retirement Plan (FRP) participants upon termination of employment will have the option to take partial withdrawals or commence installment payments from the FRP. These options are in addition to the current lump sum withdrawal option. This new option will be effective April 1, 2014.

Ford Motor Company is providing an additional savings option to SSIP and TESPHE 401(k) plan participants. This option will provide all eligible salaried and hourly employees the ability to contribute to a Roth savings feature within their 401(k) plan.

The Roth feature within a 401(k) plan allows employees the flexibility to “tax diversify” their income sources for retirement by directing savings among designated Roth, traditional pre-tax, and/or after-tax contributions. Additionally, for those Ford employees who are ineligible for a Roth IRA, the Roth feature provides an opportunity to build a tax-free retirement income source.

For questions on this new Roth feature within the Ford 401(k) plan, feel free to call Mainstay Capital Management toll-free at 1‑866‑444‑6246.

Request a free copy of Mainstay Capital Management’s “Roth 401(k) Investment Guide”

Roth 401(k)s - Frequently Asked Questions

Ford Motor Company announced an increase in the company match for the Savings and Stock Investment Plan (SSIP) effective July 1, 2013. The current match of $0.80 per dollar will increase to $0.90 per dollar of employee contributions, up to 5% of the employee’s eligible base salary. Mainstay Capital Management recommends that all Ford salaried employees contribute at least 5% in order to take full advantage of the company match.

>Ford has announced upcoming changes to several of the investment options in the Savings and Stock Investment Plan (SSIP), Tax-Efficient Savings Plan for Hourly Employees (TESPHE), Ford Retirement Plan (FRP), Benefit Equalization Plan (BEP), and the Deferred Compensation Plan (DCP). Some of the new investment options will provide similar investment strategies and risks, but the overall expenses for the investment options will be lower. Other changes include the addition, removal, and replacement of various fund options. These changes will take place from May 31, 2013 through December 31, 2013. Contact Mainstay toll-free at 1‑866‑444‑6246 to discuss the impact these changes may have on your portfolio.

The election period to select a payment option for both the Ford salaried employees’ AICP (Annual Incentive Compensation Plan) Bonus payout and the Ford hourly employees’ Profit Sharing payout is February 11^th through February 19^th.

All eligible participants were provided the option to receive the payment as cash, contribute all or a portion of the payment to the SSIP or TESPHE (deferring all federal income tax withholding), or contribute all or a portion of the payment to a Ford Interest Advantage account.

If no election is made for the AICP or Profit Sharing payout, you will receive your entire payment in cash, incurring a mandatory 25% Federal income tax withholding.

Any amount of the AICP payout or Profit Sharing payout that is elected for deferral to the SSIP or TESPHE will be combined with your pre-tax contributions that are contributed to the plan throughout the year, including those contributions you have already made this year. Keep in mind, the IRS limit for pre-tax contributions can not exceed $17,500 for 2013 (or $23,000 if age 50 or older). There is a total contribution limit, which includes your contributions and company match (where applicable), of $51,000 (or $56,500 if age 50 or older) for 2013.

For salaried employees, Ford will continue to match $.80 on the dollar up to 5% of base salary as long as you maintain your payroll contributions throughout the year. The company match will continue on a pre-tax basis without affecting the pre-tax threshold.

Do not hesitate to contact us toll-free at 1‑866‑444‑6246 if you would like to discuss your AICP or Profit Sharing election options.

Ford has announced upcoming changes to the investment options in the Savings and Stock Investment Plan (SSIP), Tax-Efficient Savings Plan for Hourly Employees (TESPHE), Ford Retirement Plan (FRP), Benefit Equalization Plan (BEP), and the Deferred Compensation Plan (DCP). The new investment options will provide similar investment strategies and risks, but the overall expenses for the investment options will be lower. These changes will be effective as of the close of business on January 31, 2013. Contact Mainstay toll-free at 1‑866‑444‑6246 to discuss the impact these changes may have on your portfolio.

Ford Motor Company will introduce a Roth option to the 401(k) plan next year. With the addition of this feature, employees will have the flexibility to direct contributions among both types of 401(k) accounts as their current and future tax situation dictates. It will also provide employees with the ability to “tax diversify” their income sources for retirement. Additionally, for those Ford employees who are ineligible for a Roth IRA due to income limitations, a Roth 401(k) provides an opportunity to build a tax-free retirement income source.

For more information on the Roth 401(k) account, you can review our list of “Roth 401(k) - Frequently Asked Questions” or request a FREE copy of Mainstay Capital Management’s “Roth 401(k) Investment Guide”. If you have questions on how this new Roth 401(k) option may be best utilized in your personal situation, feel free to contact us toll-free at 1‑866‑444‑6246.

Salaried Ford retirees, former employees, and surviving spouses have begun receiving their GRP Lump Sum Pension Option Decision Guide and Election Kit. The Decision Guide offers some suggested steps to help you navigate through the decision process. The Election Kit provides you with specific information, including dollar amounts for your monthly benefit options and your lump sum distribution offer. The rollout of the lump sum offers will continue into 2013.

The first group of eligible participants have received their Decision Guide and Election Kit. This group has an election period of August 1^st through October 29^th. Each new group will have a 90 day election period in which to make their decision. If you are considering the pension lump sum offer, review Mainstay’s “Pension Lump Sum Buyout Program” summary. You can also contact us toll-free at 1‑866‑444‑6246 to discuss your pension payment options and how each may impact your individual situation.

Ford Motor Company has announced it will offer about 90,000 eligible U.S. salaried retirees and former employees the option to receive a voluntary lump sum pension benefit payment. Ford previously announced that current employees will have the lump sum pension payment option available to them at retirement effective July 1, 2012.

By taking advantage of the lump sum pension payment option, Ford retirees may reduce many potential pension risks including longevity risk due to inflation, tax risk, and mortality risk. Most importantly it will completely eliminate "PBGC risk" - the risk that monthly pension payments are someday reduced by the Pension Benefit Guaranty Corporation.

Visit our “In The News” section to review recent articles discussing pension lump sum payments or call Mainstay toll-free at 1‑866‑444‑6246 to discuss your personal situation.

Ford is offering special separation/retirement programs to eligible UAW-represented Ford hourly employees company-wide. There are two programs under which an employee may be eligible. The decision to accept a separation program requires careful analysis and planning on the part of each employee.

For those evaluating a buyout offer, there are important factors to consider:

• Am I financially ready to go?
• Have I developed a comprehensive Retirement Income Plan?
• How will the STEP or SRI impact my retirement plan?
• Are my investments allocated appropriately for this life event?
• What should I do with the assets in my 401(k)?
• Which distribution method for pension benefits is best suited for my personal situation?

Mainstay Capital Management is a fee-only, independent investment advisor that currently provides portfolio management and retirement planning services as well as counsels hundreds of Ford employees on buyout offers. We can provide a comprehensive Retirement Income Analysis, help evaluate "what-if" scenarios, and assist in making informed decisions concerning any buyout offer.

Call Mainstay Capital Management toll-free at 1‑866‑444‑6246 to discuss your personal situation with a Retirement Planning Specialist.

Ford Motor Company announced an increase in the company match for the Savings and Stock Investment Plan (SSIP) effective July 1, 2012. The current match of $.60 per dollar of employee contribution up to 5% of the employee’s eligible base salary will increase to $.80 per dollar of employee contribution up to 5% of the employee’s eligible base salary. Mainstay Capital Management recommends that all Ford salaried employees contribute at least 5% in order to take full advantage of the company match.

Ford has announced upcoming changes to the investment options in the Savings and Stock Investment Plan (SSIP). The new investment options will provide similar investment strategies and risks, but the overall expenses for the investment options will be lower. These changes will be effective as of the close of business on July 1, 2011. Mainstay Capital Management’s CEO, David Kudla, has spoken and is published on the subject of reducing fees (internal expense ratios) for investment options within 401(k) plans. For further insight read his article penned for Forbes, "Why Investment Choices In Your 401(k) Might Change", or contact Mainstay toll-free at 1‑866‑444‑6246 to discuss the impact these changes may have on your portfolio.

Ford has announced upcoming investment option changes for the SSIP and TESPHE 401(k) plans that will take effect this spring. More than a third of the existing investment options will be eliminated and new options will be added to the plan. Account balances and new monies invested (contributions/loan repayments) in the options being removed from the plans will be transferred either to other existing investment options or to the new investment options. It is important to analyze this new investment menu, prior to the transferring of assets out of current investment options, to determine appropriate changes for your SSIP or TESPHE account.

Effective January 5, 2010, Affiliated Computer Services (ACS) has taken over administration of the Ford SSIP, FRP, DCP and BEP for salaried employees, as well as the TESPHE for hourly employees, from Fidelity Investments. The investment options that are currently available in these plans are not expected to change initially, but may change over time as part of the regular monitoring process. There is a new website for SSIP and TESPHE participants to view and make changes to their plan effective January 5, 2010. For more details, read the article on the right “New Ford 401(k) Plan Administrator”.