The burstiness of the situation is palpable when Reichert juxtaposes the figures. Kellogg’s method gives him roughly $380 monthly, but if the updated 2018 U.S. Department of the Treasury’s assumptions were applied, he’d be pocketing about $406. The cumulative difference due to these outdated calculations? A whopping $4,700!
ERISA and Its Stipulations
Like a puzzle where the pieces don’t fit, Reichert emphasizes that ERISA demands that the JSA must match the “actuarial equivalent” of the original annuity. With Kellogg’s employing questionable numbers, the current values are simply out of sync.
Though Reichert admits to being in the dark about the exact mathematical jugglery Kellogg’s uses, he’s certain of one thing: ERISA mandates transparency in these calculations. And when the curtains are pulled, he believes the numbers will reveal a discrepancy with current economic and mortality metrics.
In a bid to amplify his voice, Reichert aspires to speak for a battalion of pension plan participants and beneficiaries, all of whom have been receiving benefits in the last half-decade and possess a survivor benefit pegged at 50% or more. With nearly 3,900 folks in each of the pension plans, the stakes are high.
