Preparing for your retirement
- Inform your supervisor and local HR Department of the date you intend to retire.
- Below is general information on what happens with your benefits when you leave the company. Contact the Powell Benefits Center at 855-855-7610 to schedule a time to meet with a Benefits Analyst to discuss in more detail how retiring impacts your benefits.
Important dates and benefit information
When your employment with Powell Industries ends, your benefits will end as follows:
|Benefit Plan||Date Coverage Ends|
|*Medical||Last day of month in which employment ends|
|Dental||Last day of month in which employment ends|
|Vision||Last day of month in which employment ends|
|Health Reimbursement Account (HRA)||Last day of month in which employment ends|
|Flexible Spending Account (FSA)||Last day of employment|
|Basic Life & AD&D||Last day of employment|
|Optional Life & AD&D||Last day of employment|
|Short & Long-Term Disability||Last day of employment|
* If you’re between the age of 55 – 64 and have at least 10 years of service, you may be eligible for Powell’s Retiree Medical program.
Click here for more information on the Retiree Medical program.
Your Medical, Dental and Vision plans are COBRA qualifying benefits and, if previously elected, may be continued under COBRA. An explanation of your rights to continue coverage will be sent to you in a separate mailing by our COBRA administrator, WEX. You will have 60 days from the date benefits end or the date of the notice, whichever is later, to elect COBRA continuation coverage. COBRA effective dates are retroactively applied to your last date of coverage so there is no gap in coverage. Please read your COBRA Qualifying Event Notice carefully for important information including rates and deadlines for submitting election forms and payments. Please contact WEX at 866-451-3399 with any questions concerning your COBRA rights.
Health Reimbursement Arrangements (HRA)
If you were enrolled in one of Powell’s Health Reimbursement Arrangements (HRA), you will have 89 days from the date employment ends to submit any claims for expenses incurred while you were covered under the Plan. After 89 days, all contributions which remain in your account will be forfeited. If you elect medical insurance coverage through COBRA or the Retiree Medical program, you will continue to have access to your HRA funds.
Be sure to check your Wex account for any unsubstantiated claims. You are still required to submit supporting documentation after you leave Powell to WEX. For all claims incurred during the plan year, you have till April 30th in the following year (March 31st beginning 2021) to submit your documentation. If appropriate documentation is not received and approved by the designated deadline, the amount outstanding will be considered taxable income and will be added to your taxable earnings (W-2).
Flexible Spending Accounts (FSA)
If you were enrolled in the Health Flexible Spending Account (FSA), you will have 89 days from the date employment ends to submit any claims for expenses incurred while you were covered under the Plan. After 89 days, all contributions which remain in your account will be forfeited. You may elect to continue participation in the Health Flexible Spending Account under COBRA.
Be sure to check your Wex account for any unsubstantiated claims. You are still required to submit supporting documentation after you leave Powell to WEX for any unsubstantiated claims. For all claims incurred during the plan year, you have till March 31st of the following year to submit your documentation. If appropriate documentation is not received and approved by the designated deadline, the amount outstanding will be considered taxable income and will be added to your taxable earnings (W-2).
Your voluntary Short-Term and Long-Term Disability coverage ends on your last day of employment.
NOTE: If you are currently receiving disability benefits for an approved claim with Sun Life, your benefits will continue as long as you continue to meet the requirements under the plan.
Your basic (Powell paid) Life Insurance and any Voluntary Life insurance benefits cease on your last day of employment. You have 31 days from your last day of employment to convert your basic Life Insurance to an individual life policy. You may also be eligible to continue your Voluntary Life benefit as an individual policy under Sun Life’s portability option. Please contact the following for more information:
Powell Industries, Inc. Incentive Savings Plan (401K Plan)
You may be eligible to keep your vested balance in the Powell 401(k) Plan or you may choose to rollover your account into an IRA or other qualified employer plan, or you may apply for a total distribution after a 25 day waiting period. This is to allow for any residual payroll adjustments.
- If your vested balance is less than $1,000 at separation you will have 60 days after the initial 25 day waiting period to take action and rollover or cash out your vested account balance. If you do not take action, your account will be automatically distributed via check by mail made payable to you and sent to the address on file. Federal (20%) and applicable state taxes will be withheld and you may also be subject to a 10% penalty for early distribution.
- If your vested account balance at separation is between $1,000 and $5,000 you will have 60 days after the initial 25 day waiting period to take action on your account. If you do not take action to rollover or cash out your vested account balance your account will be automatically rolled into a SAFO IRA provided by Fidelity Investments. You can contact Fidelity Investments at 800.835.5095 for additional information.
- If your vested account balance is greater than $5,000 at separation you will be able to keep your account in the 401(k) plan and continue to manage your account through Fidelity. You may also request a distribution from the plan after the 25 day waiting period.
- If you have an outstanding loan at separation you will have 60 days to pay off your loan in full or make arrangements to continue making loan payments directly to Fidelity. Fidelity will send you information by mail regarding your loan repayment options and tax implications if you do not take action.
For additional questions in regard to your Powell 401(k) account, please contact Fidelity at 800.835.5095 Monday through Friday 8:30 a.m. to 8:30 p.m. (EST) (contract number 09346) or go to www.401k.com.