BB&T is among a small number of employers who still offer and fund a pension plan. The BB&T Corporation Pension Plan (Pension Plan) rewards you for your time with BB&T and helps you accumulate income that will supplement your retirement.
The Pension Plan is a "defined" benefit plan, which means it is wrapped around a formula. This formula is based on your years of credited service and average compensation.
Certain affiliates of BB&T Corporation (BB&T Securities, LLC; CRC Insurance Services, Inc.; McGriff, Seibels and Williams, Inc.; AmRisc, LLC; McGriff Insurance Services; Precept Insurance Solutions, LLC; Crump Life Insurance Services, Inc.; Hann Financial Services Corp.; Boston Service Company; and Swett & Crawford Group) do not participate in the Pension Plan.
The Pension Plan, funded by BB&T on an annual basis, includes the following features:
- 100% of the contributions to the pension plan are made by BB&T
- You are 100% vested after 5 years of vesting service
- You can access your benefit as early as age 55, with 10 years of vesting service
Becoming a participant
The Pension Plan is easier to participate in than any other benefit plan BB&T offers. You become a participant on the first day of the year after you have completed one qualifying year of service and have reached age 21 if your subsidiary participates in the Pension Plan. A qualifying year of service is a year in which you work at least 1,000 hours.
The Pension Plan provides a retirement benefit for vested associates. Vesting means ownership or your entitlement to the benefit you have earned. You are automatically fully vested when the first of the following occurs:
- You complete at least 5 years of vesting service
- You reach normal retirement age under the plan
- You become eligible to elect early retirement
Note: For vesting purposes, if you completed at least 1,000 hours of service in both your first year of employment and in the plan year which includes the first anniversary of your date of employment, you will receive credit for 2 years of continuous service.
Applying for pension benefits
When you decide to retire, you must notify Benefits Administration 60 days prior to your intended retirement date. To notify Benefits Administration, call the Human Systems Service Center at 800-716-2455 , option 1.
You will complete your retirement application over the phone. A calculation of your pension benefits will be requested from our actuary. The calculation and retiree benefits enrollment package, if applicable, will be sent to your home address within 30 business days following your initial contact with the Human Systems Service Center. Payments of your pension benefit will generally begin the first of the month following your retirement date. See forms of payment(moves focus).
Pension benefit calculation
When you retire, the annual normal retirement benefit you receive from the BB&T Corporation Pension Plan will be determined using the following formula:
1% of average annual compensation (the average is determined using your highest compensation during any consecutive 5 calendar years out of the last 10 years) times years of service with BB&T in which you have worked at least 1,000 hours (maximum of 35)
0.5% of average excess compensation times years of service (maximum of 35)
Pension benefit calculation example
The following example utilizes the Pension Benefit Calculation:
You retire at age 65 after completing 35 years of credited service. Your average annual compensation is $20,000. Your benefit is calculated as follows:
1% x $20,000 x 35 = $7,000
So, $7,000 would be your annual benefit from the BB&T Corporation Pension Plan if you chose a life annuity as your form of payment(moves focus). The average annual compensation of $20,000 is below the Social Security Covered Compensation, so no additional calculation is necessary.
For purposes of this calculation, your compensation generally is the pay you receive from BB&T including any pre-tax savings under the BB&T Corporation 401(k) Savings Plan or salary reductions under a Cafeteria Plan. Your compensation includes base pay, overtime pay, commissions, incentive compensation and bonuses.
As required by law, compensation in excess of certain limits ($265,000 effective January 1, 2017), as adjusted for inflation, is not considered under the BB&T Corporation Pension Plan.
Selecting how you'll receive your pension
Before you begin payments through the BB&T Corporation Pension Plan, you need to choose the form of payment for your benefit. Benefits Administration will provide you with information about the optional forms of payment available and the amount you would receive under each payment option.
Although the total value of your benefit will be the same, the amount of the payment may differ according to the payment option you choose.
Normal Forms of Payment
Unless you choose another method of payment, your benefit will be paid the following way:
- If you are not married when your benefit payments begin, your benefit will be paid as a Life Annuity. This annuity provides you with a monthly benefit for your lifetime. Payments begin when you retire and are paid until you die.
- If you are married when your benefit payments begin, your benefit will be paid as a Joint and 50% Survivor Annuity with a monthly benefit for your lifetime. After your death, if your spouse is living, they receive 50% of that monthly benefit during their lifetime.
If you are married, you may be able to name another beneficiary with your spouse's consent. Their consent must be in writing and witnessed by a notary public. Your spouse's consent will relate to the specific method of payment or named beneficiary, unless they waive all rights to further consent. They have the right to limit their consent to a specific method of payment or to a specific beneficiary.
Optional Forms of Payment
Optional forms of payment under the plan are:
|Life Annuity||This annuity provides you with a monthly benefit for your lifetime. No benefits are provided after your death. Payments begin when you retire and are paid until your death.|
|10 Years Certain and Life Annuity||This annuity provides a monthly payment to you for 10 years (120 months) and then each month after that for the remainder of your life. If you die within 10 years of payments beginning, payments will continue to your named beneficiary until the end of the 10-year period.|
|Joint and 100% Survivor Annuity||This annuity provides a monthly payment to you for your lifetime and, after your death, provides the same amount to your beneficiary for their lifetime. If your beneficiary dies before payment to you begins, this method is canceled.|
|Joint and 75% Survivor Annuity||This annuity provides a monthly payment to you for your lifetime and, after your death, provides 75% of this amount to your beneficiary until their death. If your beneficiary dies before payment to you begins, this method is canceled.|
|Joint and 50% Survivor Annuity||This annuity provides a monthly payment to you for your lifetime and, after your death, provides 50% of this amount to your beneficiary until their death. If your beneficiary dies before payment to you begins, this method is canceled.|
|Payments Level with Social Security||This option is available only if you retire before your Social Security Normal Retirement Age (SSNRA). Your Social Security benefit is estimated, and your plan benefit is calculated using your estimated Social Security benefit. Payments from the plan are higher at first, and then they decrease at your SSNRA. This annuity helps provide a consistent level of total income (Social Security benefit plus Plan benefit) during your early and later retirement years.|
Learn more about the forms of pension payment by reading Payments from the BB&T Corporation Pension Plan at Retirement (PDF).
Forms and notices
Retirement at BB&T
A key component of the BB&T mission is to help our clients achieve economic success and financial security. We are equally committed to helping you piece together a financially sound future.
BB&T Associate Self-Service Center
Calculate estimated pension benefit; request, view and print instant estimates; and view personal pension data.
BB&T Associate Self-Service Center User Guide
Step-by-step guide to accessing and navigating the BB&T Associate Self-Service Center for pension benefits.
2017 BB&T Pension Plan Annual Funding Notice and MAP-21 Supplement Notice
Required funding notice and supplement notice for the BB&T Corporation Pension Plan.
EXCELLENCE Associate Handbook
View the entire handbook or individual sections.
Summary Plan Descriptions
Summaries for your benefits, retirement and more.
No personal or confidential associate information is contained within BBTBenefits.com.
Information contained within BBTBenefits.com applies to eligible associates residing in the United States, unless otherwise specified.
Not all subsidiaries and affiliates of BB&T Corporation participate in the benefit programs and policies presented within BBTBenefits.com.