Retirement

The Company wants its employees to have secure retirements. The B&C Pension Fund is in “Critical and Declining Status” and has reported that it likely will not have enough money to pay all of its obligations by 2030.

Your Company’s Retirement Plan Summary

You will have two sources of retirement benefits at retirement:

  1. The vested B&C Pension Fund benefit for service you have already earned, and
  2. Your Enhanced TIP plan account – including the new Company contributions.

Enhanced TIP is simply additional contributions the Company will make to your current Mondelēz Global LLC TIP retirement savings plan. No employee contribution is required (100% funded by company). However, you have the option to make additional contributions that will be proportionally matched by the Company if you choose. And you have control over your account, and how contributions are invested.

The account is portable – it’s yours to keep if you leave the Company. The proposed Enhanced TIP plan allows you to take out loans or make hardship withdrawals from your account balance. It is designed to give employees a comparable level of retirement benefit to the current Fund. The Company’s proposed plan was built with the same financial assumptions as the B&C Fund uses.

B&C Pension Fund

What you have today

Proposed Company Contributions to the TIP Savings Plan

What you could have in the future

The B&C Pension Fund is a Defined Benefit (DB) plan.

With this plan:

  • The benefit – which is a fixed dollar amount – is defined by the plan you’re in.
  • Benefits are provided in monthly payments, called annuities, only after you retire.
  • Benefits may be reduced if payments begin before normal retirement age.
  • Benefits already earned could be reduced in poorly-funded or insolvent multiemployer plans.
  • Benefits have a limited guarantee from the Pension Benefit Guarantee Corporation (PBGC) if the plan fails.
  • If you are not married when you die, your beneficiary receives no benefit.

The proposal is an enhancement of the TIP plan - a Defined Contribution (DC) savings plan.

With this plan:

  • The contribution amount is defined by the plan
  • Contributions are paid into your TIP plan account each payroll period.
  • Benefits are typically paid as lump sums, but payment can be taken in installments if you choose.
  • The amount of your retirement benefit will be affected by investment performance.
  • You control how your money is invested and how you receive your benefit in retirement.
  • You own your account, and can take the account balance with you if you leave the company.
  • On your death, your beneficiary receives your entire account balance.
To learn more about the “Critical and Declining” status of the B&C Pension Fund, please reference this April 2017 notice from the Pension Fund.

While the B&C Pension Fund Trustees decide how the money in their defined benefit plan is invested, you decide how to invest your Enhanced TIP dollars. There will not be separate investment options for the Company’s proposed Enhanced TIP plan. You can choose among the same investment options that are available to you under the Company’s current 401(k) TIP program.

The Plan allows you to choose from a variety of investment options – described in the Investment Options Guide. Your investment election applies to both your own optional contributions and all contributions made by the Company. Click here for specific comparisons of the proposed Enhanced TIP plan and B&C Pension Fund based on your age and years of service.