Have Questions About the Change in Pension Payment Providers? Here Are Your Answers
On Sept. 27, the Exchange announced a change in its pension payment providers from State Street Bank and Trust to Northern Trust. The Benefits team recognizes this is a major transition and understands, with any change, there will be questions. Detailed communication will be sent this fall as the team coordinates the shift to Northern Trust. Below are interim Q&As to address potential questions.
Q1. Why is the pension payment provider changing, and who made the decision?
A1. The Exchange has used State Street Bank and Trust for pension payments and custodial investment services for more than 20 years. To ensure Pension Plan beneficiaries as well as the Exchange receive the best value, this contract is periodically resolicited. The Request For Proposal (RFP) garnered responses from a number of the largest and most capable financial institutions. A Source Selection Committee, composed of Exchange associates from the benefits and pension divisions as well as a retiree representative, reviewed and scored responses. Based on a thorough review, the committee unanimously recommended Northern Trust to the pension trustees. The trustees concurred with the recommendation and approved the new contract.
Q2. How will this change impact me?
A2. Retirees should expect better customer service with a US-based customer call center. (The State Street call center was based overseas.) Requests for tax changes, address updates,and direct deposit changes will also be addressed in a timelier manner as retirees will be able to make updates directly with Northern Trust.
Q3. What and when should I expect communication from Northern Trust to begin?
A3. Official communication from Northern Trust, including website instructions and contact information, will be sent out in early November.
Q4. Will my 2022 tax form be impacted during this transition?
A4. 2022 tax forms will be mailed by State Street at the end of January, in the same manner as prior years.
Q5. What if I need a reprint or tax form correction for 2022?
A5. Please reach out to the FA Benefits Call Center at [email protected] or 800-519-3381.
Q6. Who do I contact if I have a question about a 2022 payment or a payment issued prior to 2022?
A6. Please reach out to the FA Benefits Call Center at [email protected] or 800-519-3381.
Q7. Will the timing of my pension check change?
A7. Paper check: If you receive paper checks, there should be no change.
Direct deposit: If you receive payments through EFT, everything is expected to remain the same as far as timing EXCEPT for the January disbursement. To keep payment issue dates within the applicable tax year and because of the banking holiday, January electronic payments will be issued on 3 January 2023.
Q8. Will my personal identification information (PII) and bank account number transfer to Northern Trust?
A8. Yes, all PII data, including bank account information for direct deposit payments, will be securely transferred to Northern Trust.