Retiree (DROP) and Beneficiaries

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Click Here to Download the Retiree/Beneficiary Address Change Form
DROP participants must make changes with the Human Resources Office of their respective employer

Please contact the Pension Office to request an Electronic Funds Transfer Authorization Form to change your bank account.  These forms are not on the general website for security purposes.

DROP loans are available up to 50% of a member’s DROP account with a minimum loan of $5,000 and a maximum loan of $50,000.  Please contact the Pension Office for information on how to apply.

Actuarial Valuation – Assessment of a pension plan’s worth to determine whether contributions are being accumulated at a rate sufficient to provide future benefits.  The value is determined by the fund’s normal cost, actuarial accrued liability, actuarial value of assets, and other relevant costs and values.

Alpha – Risk-adjusted performance measure for a stock or mutual fund.  Alpha for the specific security is compared with the risk-adjusted performance of a benchmark index.   A positive alpha of 1.0 means the security has outperformed its benchmark index by 1%.  A similar negative alpha would indicate an underperformance of 1%.

Basis point (BP) – one-hundredth of a percentage point.  Basis points are most often used to measure the very small changes or difference between yields on fixed income securities.  If the yield on a bond increases from 4% to 4.5% it has increased by 50 basis points.  A change in 0.01% in a bond’s yield would be 1 basis point.

Benchmark – Standard by which something can be measured or judged.  Investors benchmark the performance of their investments with major market indices such as the S&P 500 to quantify how far they are from investment goals.

Due Diligence – Careful investigation and analysis of information that is material to a decision, such as choosing  an investment or hiring an employee.

Fiduciary Responsibility – Legal responsibility of a fiduciary to safeguard assets of beneficiaries in a trust fund.

Funded Ratio – Ratio of the assets of a pension plan to its liabilities.

Hedge Fund –  Investment portfolio that uses advanced investment strategies such as leveraged, long, short and derivative positions in an effort to generate high returns.

Plan Document – Written description of an employee benefit plan maintained by an employer that sets forth the benefits available and eligibility requirements.

Plan Sponsor –  Entity that establishes and maintains a benefit plan.  The sponsor may be (1) a single employer; (2) an employee organization; or (3) an association, committee, joint board of trustees or other similar group of representatives of the entities involved.

Present Value –  Given a specific interest rate, the amount of money needed today to provide (1) a sum of money at a specific future date or (2) a series of payments over a set period of time.

Private Equity –  Money invested in companies that are not publicly traded on a stock exchange.  Private equity is highly illiquid because sellers of private securities must locate willing buyers.  Investors in private equity are generally compensated when a firm (1) goes public, (2) is sold or merges with another firm, or (3) is recapitalized.

Rebalancing – Adjusting the proportion of assets in an investment portfolio through the buying and selling of securities so the proportion is consistent with a target allocation.  The decision to rebalance a portfolio can be made on a calendar basis or a contingency basis.

Trustee –  Person, bank or trust company that has the responsibility over the receipt, disbursement and investment of property or funds for the benefit of another party.  When this responsibility is not exercised by a bank or trust company, it is usually exercised by a board of trustees, with each trustee given one vote.

Unfunded Actuarial Accrued Liability –  Actuarial accrued liability that exceeds the actuarial value of fund assets.  If the value is negative, it is referred to as a negative unfunded actuarial accrued liability, or a funding excess.  Also referred to as unfunded actuarial liability.

Vested Benefit –  Accrued benefits of a participant that have become nonforfeitable.

Member account statements and 1099-R forms can be found on the member self-service portal or by contacting the Pension Office

W-4P Form 2021

Please return form to the Pension Office. Do not send it directly to Salem Trust.

Pension Verification Letters can be found on the member self-service portal or by contacting the Pension Office