Congratulations on the first step to the rest of your life! Retirement is a major milestone, and VGM is grateful for the years of services provided by eligible retirees like yourself. We're proud to offer continued benefit options to assist in a smooth transition to retirement. Click on one of the boxes below to learn more about each retirement plan. Schedule a meeting with the Retirement Benefits Team to discuss these options in more detail.
SCHEDULE A MEETINGRetirement is on the horizon—it is a major milestone in every person’s life. But we understand that preparing for retirement might be a whole other situation. That’s why we’ve prepared the following guidelines to help you better prepare yourself once your retirement date arrives. If you have any questions while going through this list, please don’t hesitate to Schedule a meeting with the Retirement Benefits Team.
SCHEDULE A MEETING
VGM is proud to offer early retirement to our employee owners, with an option to retire as early as 55! Feel free to look over both options available to you for early retirement and consider which path is right for you.
Notice Process: Employees are asked to provide a minimum of 30 days’ notice of retirement. A retirement letter should be provided to your supervisor and a copy sent to HR. The letter must include a date of retirement and signature. If notice comes from an email, the vgm.com email needs to be used.
| Age 60 with at least 5 years of continuous employment prior to retirement | Age 55 with at least 10 years of continuous employment prior to retirement |
Account balance may be withdrawn without 10% early withdrawal penalty tax. Distributions would be subject to federal income tax. Depending on your state of residency, 401(k) funds might be taxable for state income tax (please consult with your tax advisor).
Account balance can be rolled over pre-tax to another qualified retirement plan. (For example, an IRA.)
If you work at least 1,000 hours in the last year of employment, you would be eligible to receive one more contribution to your ESOP account.
Distributions could begin the year following your retirement.
Once eligible for ESOP distribution, you will receive a notice from Principal Financial containing instructions for making a distribution election and deadline for your decision.
Once your election is submitted, you will receive your ESOP distribution in annual installments.
You are eligible to continue coverage under your plan for yourself and your covered dependents if:
You have been employed by VGM for at least 5 years preceding retirement.
You are covered under the health insurance at the time of retirement.
You are at least 60 years of age.
Any required premium contributions for coverage are made.
Insurance Termination
Insurance terminates when you turn 65, become eligible for other employer-sponsored coverage, or become eligible for Medicare, whichever is earlier.
If your spouse is covered at the time of your retirement, you are eligible to continue coverage until age 65, become eligible for other employer-sponsored coverage, or become eligible for Medicare, whichever is earlier.
If a dependent child is covered at the time of your retirement, you will continue to be eligible as long as you meet the eligibility guidelines.
Terminates at the end of the month retired.
Terminates on last day of employment.
You are 100% vested in the 401(k) plan at age 55.
Account balance may be withdrawn without 10% early withdrawal penalty tax. But must be withdrawn directly from your 401(k) account with Principal Financial Group to avoid penalty.
Distributions would be subject to federal income tax. Depending on your state of residency, 401(k) funds might be taxable for state income tax (please consult with your tax advisor).
401(k) funds may be rolled over to another qualifying retirement plan. But if you choose to rollover and want to withdraw the funds before age 59 1/2, you would be subject to early withdrawal penalty.
You will NOT be eligible to receive a contribution in your final year of employment.
Distributions could begin the year following the year you turn 60.
Once eligible for ESOP distribution, you will receive a notice from Principal Financial Group containing instructions for making a distribution election and deadline for your decision.
Once your election is submitted, you will receive your ESOP distribution in annual installments.
You are eligible to continue coverage under your plan for yourself and your covered dependents if:
Insurance Termination
Terminates at the end of the month retired.
Terminates on last day of employment.
Are you looking to ease your way into retirement? The Phased Retirement option may be your best option! Over the course of a 12-month period, you'll move to a more part-time basis leading up to your retirement date, leaving a little less on your plate to prepare for your big day!
All agreements are subject to an approval process where the department, business unit, and HR must approve. Requests may be denied if they are not in the best interest of the company.
Employees who have entered a phased retirement agreement must retire at the end of their phased retirement agreement (Maximum of 12 months). No additional notice is required unless the employee would like to end their phased retirement agreement early. In this case a retirement letter will be required. You qualify for Phased Retirement if you are:
| Details | Benefits |
Any remaining PTO will be paid out at 100% on final VGM paycheck.
You are 100% vested in the 401(k) plan after turning 55.
You can continue to defer into your 401(k) account and receive company matching contributions. Funds may NOT be withdrawn until after you turn 59 ½.
During your phased retirement period, you could earn an additional ESOP contribution if you meet the contribution requirements:
- Work at least 1,000 hours.
- Be employed on 12/31.
- If older than age 60, you would not need to meet the 12/31 requirement.
You will be eligible for distribution the following year you turn 60 after separating from VGM.
Once eligible for ESOP distribution, you will receive a notice from Principal Financial containing instructions for making a distribution election and deadline for your decision.
Once your election is submitted, you will receive your ESOP distribution in annual installments.
You are eligible to continue coverage under your plan for yourself and your covered dependents if:
Insurance Termination
Terminates at the end of the month retired.
Terminates on last day of employment.
Account balance may be withdrawn without 10% early withdrawal penalty tax. Distributions would be subject to federal income tax. Depending on your state of residency, 401(k) funds might be taxable for state income tax (please consult with your tax advisor).
Account balance can be rolled over pre-tax to another qualified retirement plan. (For example, an IRA.)
You can earn an additional ESOP contribution if you meet the contribution requirements:
- Work at least 1,000 hours.
- Be employed on 12/31.
- If older than age 60, you would not need to meet the 12/31 requirement.
Distributions could begin the year following turning 60 or the year following your retirement (if you are already 60).
Once eligible for ESOP distribution, you will receive a notice from Principal Financial containing instructions for making a distribution election and deadline for your decision.
- If you miss the deadline date, you will need to wait another year for the next distribution election window.
Once your election is submitted, you will receive your ESOP distribution in annual installments.
- Each installment is 1/6 the vested account balance or $25,000, whichever is greater.
- Each installment is processed in the summer, usually in July.
Terminates at the end of the month retired.
Terminates on the last day of employment.
