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  • 03/30/2021 7:38 PM | Anonymous member (Administrator)

    by Jack Campbell, ARCRA Treasurer

    The Red Cross Retirement System (“the Plan”) offered the opportunity for participants to contribute voluntary after-tax amounts into the Plan in order to supplement their defined benefit once they retired. Some participants have raised questions regarding how their accumulated contributions and interest earned will be distributed upon retirement. Following are some FAQ’s which may be helpful as participants do retirement and estate planning.

    Prior to retirement, do participants get monthly, quarterly and/or annual statements of their voluntary contributions detailed transactions?

    Statements are not sent prior to retirement but the total amount of voluntary contributions and interest are available from the Benefits Service Center. Participants can view their balance or run calculations for annuity options on the Benefits Service Center (formerly known as UPoint) website

    How are distribution amounts determined for voluntary contributions and interest earned?

    Balances as of 12/31/2010 in the recordkeeping system were brought forward and those balances earn interest up to the benefit commencement date at prescribed rates which are updated annually. A participant can choose a one-time lump sum payment, or elect from various annuity options. The monthly annuity payment is determined by dividing a present value factor into their balance at their commencement date. The present value factors are based on the age of the participant (and spouse for Joint and Survivor elections). The Joint and Survivor election would provide an annuity payable for the participant’s lifetime and their spouse’s lifetime if the spouse outlives the participant.

    There have been various annuity purchases for portions of participant benefits over the years (John Hancock, Aetna and Athene). Were the voluntary contribution/interest earned balances transferred and how are the distribution amounts determined for those?

    Yes, the voluntary contribution balances were transferred to the various administrators and the same distribution methodology is used for the voluntary contribution benefits regardless of the administrator (Red Cross, John Hancock, Aetna or Athene). Election instructions were also forwarded to ensure spousal benefits are continued if a Joint and Survivor election is chosen.

    Do administrators keep detailed histories of participants annual or monthly contributions and interest earned?

    No. When the Plan purchased annuities with insurance companies and/or outsourced Plan administration to external vendors, cumulative balances of voluntary contributions and interest earned were transferred for each participant to those administrators. If participants want that level of detail they should check their past year end pay stubs, W-2’s and 1099-R’s, if available.

    Once a participant selects a retirement date (benefit commencement date) do the voluntary contributions and accumulated interest continue to earn interest until fully paid out?

    No. As noted previously, upon retirement each participant can select a lump sum distribution of their voluntary contributions and interest or an annuity which is based on present value factors applied to their cumulative amount. Once that amount is determined and if they select annuity payments, their contributions and interest earned will be paid out over a specific number of years until exhausted.

    What happens if the participant dies before the full balance is distributed?

    Upon the death of the participant (or participant and spouse if Joint and Survivor is chosen) a calculation will be done to see if the sum of the annuity payments equaled the value of the account balance at the benefits commencement date. If the total value of the annuity payments exceeds the account balance, no further benefit is payable. If the total value of annuity payments does not exceed the account balance at the benefit commencement date, a one-time lump sum payment (death benefit) will be due to the participant’s estate. In general, the sum of annuity payments for a participant should equal the value of the account balance at their benefit commencement date after receiving all of their payments.

    There is only one exception. As explained on page 22 of the Summary Plan Description, the Maximum retirement benefit payment option does not provide a death benefit.

    What if the participant (or surviving spouse with a Joint and Survivor benefit) lives beyond the annuity payment end date?

    Annuity payments will continue until the participant or surviving spouse dies. At that point, there will be no remaining death benefit.

    What are the tax consequences of distributions of voluntary contributions and interest earned?

    The portion of amounts distributed each year are broken down into two pieces, the voluntary contributions and interest. The voluntary contribution amounts distributed were taxed previously so they are not reported as taxable income. The interest distributed is reported separately as taxable income on a 1099-R or other appropriate year end form. The taxable and non-taxable portions are determined by a formula dictated by the Internal Revenue Service.

    For other questions, please see the contacts listed below:

    Customer Service: Benefits Service Center: 877-860-7526 (Outside the United States, use +1-212-444-0993.) Customer Care Representatives are available between 9 a.m. and 5 p.m., Eastern Time, Monday through Friday. Website: http://digital.alight.com/redcross

    • Athene: 1-877-813-4240
    • Aetna: 1-800-952-2700
    • John Hancock: 1-800-624-5155


  • 05/29/2020 1:44 PM | Anonymous member (Administrator)

    Scams don’t just exist online. Phone scams based on COVID-19 are alive and well.  Caller ID may indicate the call is coming from a health provider or government agency and say that a loved one has been hospitalized with COVID-19.  They will ask for your credit card information to “prepay” the hospital bills.  Never provide any personal information to the person at the door or over the phone.

    1. Never trust caller ID.
    2. Government agencies will NOT call you.
    3. Ask for the caller’s name and the name of the agency/organization that they claim to represent.  Hang up.  Get the organizations phone number from their website and go directly to the organization for information
    4. Some scammers are so bold, they even show up at your door.
    5. DO NOT let people who show up at your door into your home.
    6. Ask to see ID and their supervisor’s name to contact and confirm the visit.
    7. Tell the person you are going to call and confirm their visit. Close the door.  Make sure it is locked behind you.
    8. Call the number for the organization that you find on the website or on your cell phone, not the number that they provide to you.
    9. When in doubt tell them to leave information at the door and go away.

    It is not RUDE to protect yourself from SCAMMERS.  When in doubt delete, hang-up, or lock the door.

    Free Weekly Credit Reports

    You can now get free copies of your credit report from the three big credit bureaus each week.  Before the pandemic you were entitled to one free credit report. Your credit report is a summary of your debts and payment record reported by lenders (banks, credit cards and mortgage holders) to the three credit bureaus-Equifax, Experian and TransUnion.  The credit bureaus apply a formula to calculate your credit score.  Paying your bills on time and keeping your credit balances low can give you a higher credit score. Scores generally range from 300 to 850.

    Consumers are encouraged to review their credit reports frequently for suspicious activity and accounts that might signal identity fraud. 

    Go to https://www.annualcreditreport.com for your free report. You can get reports every seven days until April, 2021.  Enter your name, date of birth, and social security number, and answer several security questions. Generally, you can dispute reports when viewing them online. Also dispute errors with the lender.  Expect to wait 30 to 45 days for the response to your dispute.

    For more information check out Money Advisor at The New York Times


  • 05/23/2018 4:11 PM | Deleted user

    An article in the Harvard College Review of Environment & Society by Brad Kieserman, ARC Vice President of Disaster Operations and Logistics highlights how Red Cross has embraced technology. Gail McGovern has led the Red Cross effort to use the latest technologies to address humanitarian needs.  The Red Cross brought online a sophisticated technology platform called “RC View” – a state-of-the-art geographic information system and data visualization tool that provides a common disaster response capability to Red Cross and its partners. Using the latest cloud technology, GIS capabilities, and data enrichment,  "RC View"  provides a single platform to monitor and track disaster-related activities, aid in damage assessment, plan emergency response and evacuation, and understand relationships between the affected area and areas of social vulnerability. Download the PDF - HCRES Spring 2018 Volume 3.

  • 05/23/2018 3:43 PM | Anonymous member (Administrator)

    by Michael Kudelka

    I have created a new blood pressure log that may be filled in on a computer. It was created in Adobe Professional PDF Software to be a the log file.  The form contains 213 fillable text fields which is formatted individually for ease of use.  It is designed especially for people who take their blood pressure at home and is being made available to ARCRA members at no charge

    Click here to download instructions and here for the blood pressure log.  To help you get started here is a link to a blood pressure chart from the American Heart Association web site.  

    I have been taking my blood pressure readings at home since December 2004, at my doctor's recommendation.  I take the printed logs with each visit to my doctor every three months and he scans them into his office computer.

  • 05/23/2018 3:30 PM | Anonymous member (Administrator)

    One of the Retiree Association’s most vital benefits may also be its least visible.

    We advocate on behalf of retirees. We advocate especially with the senior leadership of American Red Cross. We meet annually with President and CEO Gail McGovern, and we have more frequent interactions with those who make decisions about pension and health care benefits, and who are in charge of the systems we depend on, such as the Benefits Service Center. We make sure that when decisions are made on any of these topics, the interests of Red Cross retirees are represented.

     Advocacy goes both ways. We also convey the viewpoints of American Red Cross to our members. We don’t do so mindlessly. We are separate from American Red Cross, and protect our independence. From time to time we will disagree with ARC. But most of us know from our own experience as employees, that most of the time Red Cross does the right thing for the right reasons. Especially when Red Cross finds itself in controversy, we make sure our members know the Red Cross side of the story.  And not just because we support the mission of the American Red Cross and our former co-workers, but also because a strong American Red Cross can better support its retirees.

    Another area of high importance is educating our members about any topic that matters to retired people – health care, tax planning, money-saving opportunities, and more.

    We’ve been at this in an organized fashion for a while. But in this and future issues of our eNewsletter we’ll have an “In Your Corner” column that especially calls out our advocacy or educational activities.

    One of our first efforts will be developing a new “Resources for ARCRA Retirees” section on the website and the posting of a “Pension Primer” for retirees.  It will be a reference tool to answer many common questions about pensions.  It will be in a question-and-answer format and divided into sections with links – so you can go to the information you need, when you need it.  You will receive more information about this new resource in mid-May.

    By the way, we have an energetic committee doing this work. But we could use a couple more members. If you’d like to be part of this effort, send a note to our administrator, Christie Phillips and we’ll take it from there

  • 05/22/2018 4:38 PM | Deleted user
    ARCRA supports about 20 Affiliated Groups around the country; they provide opportunities for retirees to get together for compelling programs and to keep in touch with former colleagues. 
    • Greater Washington/Baltimore  
    •  Evergreen     Seattle             

    If you see a meeting near you, go to event page for additional details.

  • 05/22/2018 4:32 PM | Deleted user

    Many ARCRA members contact the Retiree Connection (1-888-738-2724) when they have questions about Red Cross benefits or need help finding community resources.  We often use these calls to determine the information we provide through the eNewsletter. You can also send your questions or comments to  admin@arcretireeassoc.org We will respond directly to you and continue to use your feedback to compile advice and tips.


  • 05/01/2017 8:50 AM | Anonymous member (Administrator)

    by Stan Roberts

    Last fall’s local ARCRA lunch meeting featured an oral presentation by members of the local Red Cross Unit's Volunteer Coordinators. In my case, I worked for 31 years in the Biomedical Services area and still had a heart for the mission and people touched by those activities. While I did not want to return to work with all the responsibilities, I felt I needed to contribute to the success of the Red Cross in a different way— volunteering as a Blood Ambassador.

    A Blood Ambassador greets and registers donors at the blood drive, describes the process of becoming a donor, and the opportunity to provide life-saving donations. I also meet the same donors post-donation in the refreshment area. In addition to offers a drink and a snack, I ask how they feel and when they respond with a pale look I summon the staff to evaluate the donor. Finally I thank each donor for coming to the drive and invite them to return again. I found great satisfaction in meeting and greeting the donors. I really enjoy meeting so many new people. Lest I forget, I get to meet the Red Cross staff. They could not be more friendly and supportive of my volunteer work. They are especially appreciative of my helping them so they can focus on the professional and regulatory aspects of the donation process. I also see my volunteer work as strengthening the entire Red Cross, which is led by volunteers.  

    Soon after I started to volunteer at blood drives my wife had a medical emergency— in the emergency room we learned she had lost a significant amount of blood and needed a transfusion immediately. I asked the doctor if the blood bank had my wife’s type. In this modern age, she took out her cell phone and called the blood bank. Their response was they had enough on hand supplied by the Red Cross. We were relieved to hear she could get her life-saving transfusion immediately. She is now fully recovered.

    I felt like in some small way I contributed to mission of the Red Cross to save lives and doubly so with my being a Blood Ambassador. Even though I retired, I was still contributing to relieve human suffering. Would you consider joining with the Red Cross as a “life saving” volunteer? The opportunities to serve are limitless. Contact your local ARC Unit to learn more.

  • 04/30/2017 11:19 PM | Anonymous member (Administrator)

    by Al Rettig

    You've probably seen the words "fiduciary rule" in the news and may have wondered what all the fuss is about. Answer: it's about us--America's retirees and future retirees--and the investment advice we're counting on to keep our nest eggs safe and growing.

    A fiduciary is a person who is bound to act for another's benefit. Sounds simple, but in the world of finance it can be complicated. Those of us with retirement savings in IRAs, 403(b)s, 401(k)s and other tax-sheltered accounts have usually selected these investments on the advice of someone. Maybe it was a stockbroker at one of the well known brokerage houses; maybe it was a banker; or maybe it was an independent financial advisor. We assume that all these people are acting in our interest when they recommend an investment. But are they?

    Again, it's complicated. In the money management world true fiduciaries are legally pledged to act in your best interest and can be held to a very high standard in this regard. For example, if they recommend investments that are unsuitable for you, or that carry very high sales charges compared to similar investments, you have the right to take them to task, including bringing suit. On the other hand, money managers who are not fiduciaries are only pledged to recommend investments that are "roughly suitable" for you. They are free to steer you to funds that will pay them high commissions or that might not be the absolute best for you. And they're not required to consider the widest choice of investment options in making their recommendations. In other words, their loyalties can be conflicted. Yes, of course they want happy customers, but they often have their own financial interest in mind as well when they suggest an investment.

    After eight years of development, a new "Fiduciary Duty Rule," was originally set to take effect on April 10. To be administered by the Labor Department, the rule says that anyone who sells tax-deferred retirement accounts must meet the standard of a fiduciary, recommending investments that are in solely in the client's best interest. Predictably, everyone from Wall Street to the banks to the Chamber of Commerce hates this rule and has lobbied hard to scuttle it. They claim the rule would be unduly burdensome on them and would cost too much to implement. The current administration seems to agree, and in February demanded the rule be completely reviewed before implementation. But such a review has proven difficult, in part because the original nominee for Secretary of Labor withdrew from consideration and it took until late April for a new candidate, Alexander Acosta, to win Senate approval. Many top positions at the Labor Department remain vacant. The rule is now scheduled to take effect on June 9, but there is considerable doubt that it will.

    So where does that leave us? It leaves us where we've always been: deciding whether to insist that our financial advisors adhere to fiduciary standards is completely up to us. With or without a new rule we're free to choose the people who manage our money. If you don't know whether your banker, broker or advisor operates as a fiduciary, just ask. They're required to tell you. Typically, bankers and representatives at your neighborhood stock brokerage branch are not fiduciaries, while independent financial advisors often are. That's because independent advisors are generally compensated by fees you pay directly to them, plus they're not under pressure to sell investments in which their company has a direct interest. And because independent advisors are usually fee-based, they're much more likely to work with you closely to choose investments for your 401(k) and 403(b) accounts, even though they typically won't receive commissions from them.

    Does this mean that bankers and brokers are "bad" and that independent advisors are "good?" No, not at all. Many investment managers who are not fiduciaries do a fine job for their clients, recommending perfectly appropriate investments. But understanding the fiduciary relationship--or the absence of it--is a crucial part of financial literacy. It is important to know precisely where your interests stand vis a vis your advisor's interests, and to ask lots of questions if you notice that you're paying very high fees for your funds or that your advisor is recommending frequent changes to your portfolio. These can be red flags. No matter who manages our money the key thing to remember is that we are buying, they are selling, and we must conduct ourselves accordingly.

431 18th St, NW, Washington, DC 2006  PO Box 1581  .  Vienna, VA 22180
E-mail: admin@arcretireeassoc.org
Tel: 202-303-8779. ARCRA & Retiree Connection

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