Understanding the value of income security benefits

February 12, 2020

An important part of financial well-being is being prepared for an unexpected loss of income as well as preparing for retirement. Income security benefits offered by the Board of Pensions can help address these needs.

What are income security benefits and what should you know about them?

The Board of Pensions offers income security benefits to help protect employees and their families against economic loss if the employee is unable to work or dies, and to support future financial security. Income security benefits offered by the Board include death and disability coverage, a retirement savings plan, and a pension plan.

Employees may not realize how important it is to have a solid foundation of income security benefits:

  • According to Social Security Administration data, one in four 20-year-olds will become disabled before retirement; however, disability benefits typically are not “on employees’ radar.”
  • Although living comfortably during retirement is the basis of the American dream, on average, Americans underestimate what they will need in retirement.
  • Less than 45 percent of Americans own a life insurance policy in any amount, according to life insurance industry reports, despite availability of coverage through many employers.

The Board of Pensions offers a full array of income security benefits:

  • Disability benefits provide a monthly income and continued benefits to employees who become unable to work because of disability.
  • Death benefits for members, spouses, and children, and group term life coverage protect survivors and beneficiaries against an unexpected loss of income in the event of an employee’s death.
  • The Retirement Savings Plan, a 403(b)(9) defined contribution plan, can help employees build savings and achieve long-term retirement goals and reinforce the concept that it’s never too late or too early to save
  • The Pension Plan is a defined benefit retirement plan, fully paid by employers — employees may not contribute. Participants in the plan receive a guaranteed monthly payment throughout retirement.

If you need additional information or guidance selecting the best options, call the Board of Pensions at 800-773-7752 (800-PRESPLAN).