Advisors of CFG Wealth Management have worked with employees and retirees of San Diego Gas & Electric and the parent company, SDG&E/Sempra Energy, for many years, providing education, planning, retirement income strategies, and investment management solutions to employees looking for help and guidance. Through our years of experience working with SDG&E/Sempra Energy employees, our Advisors have developed an in-depth knowledge of the companies’ employee retirement plans. Whether you’re looking for guidance on saving towards a future retirement, or you’re close to retirement and need advice on the best method to transition your retirement plans for your particular situation, CFG Wealth Management can help you.
Below you will find the link to our SDG&E/Sempra Energy Retirement Planning Review Questionnaire, contact phone numbers and the website for your company plans, and current news (if applicable) and important information regarding the SDG&E/Sempra Energy retirement plans.
* CFG Wealth Management and its services are in no way endorsed or sponsored by SDG&E/Sempra Energy or any of its affiliated entities or subsidiaries.
Upcoming SDG&E/Sempra Energy employee Seminars (click for the schedule)
My Retirement Connection (Pension): (855) 376-7237
Pension Benefits Website: https://www.benefitsweb.com/sempra.html
T. Rowe Price Ret. Plan Services (401k): (800) 922-9945
T. Rowe Price Website: http://rps.troweprice.com
San Diego Gas and Electric Pension Plan:
The current Pension Plan for San Diego Gas & Electric employees is what’s referred to as a Cash Balance Plan. If you were a participant in the Pension Plan at the time it was converted to a Cash Balance Plan in 2003, your starting plan balance was dependant on several factors including when your participation in the plan began and how many years of service you had at the time of the conversion. Regardless of your employment status at the time the pension plan was converted to a Cash Balance plan, you will always receive the greater of your Cash Balance plan account or the present value of your June 30, 2003 benefit under the prior plan (referred to as the Grandfathered Frozen Benefit).
The Cash Balance plan accumulates value in two ways; through the employer credit account and through interest credits. With the employer credit account, the company credits your account each year equal to 7.5% of your eligible pay. Eligible pay includes your base pay, lump-sum merit, if any, and incentive pay under the Incentive Compensation Plan. Your Cash Balance Plan account also grows with interest credits each month. The interest credit rate is applied to your account at the end of each month.
Lump sum distribution calculations from the SDG&E Frozen Grandfathered Benefit Plan are based on prevailing interest rates at the time an employee retires or separates from service. Generally, the lower the interest rate, the higher the lump sum distribution value and vice versa. Until 2008, the Plan only used the 30-year Treasury rate, also known as the GATT rate, for lump sum distribution calculations. However, starting on January 1, 2008, the Pension Plan began using the provisions of the Pension Protection Act of 2006 (see below for more information), which began phasing in the use of the “CCBR”, or, Composite Corporate Bond Rate. Historically, the Corporate Bond Rate has run between 1.2% and 2.0% higher than the GATT rate.
The Pension Protection Act of 2006:
Following the provisions of the Pension Protection Act of 2006, The San Diego Gas & Electric Frozen Grandfathered Benefit pension plan had chosen to adopt the lump sum payment calculation provisions of the PPA, and as of 2013, the plan has fully phased in the use of the “three segment” Composite Corporate Bond Rate (CCBR) described in the above section. So lump sum conversions of the Frozen Grandfathered Benefit Plan calculated in 2013 and beyond are based upon 100% of the prior year November month average of the CCBR.
* The legal information provided here is merely a summary of our understanding and interpretation of some of the current regulations and is not exhaustive.