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Retirement planning is one of the most important investments you can make in your future. This section will help give you the information you need to understand your retirement benefits and how to best prepare for your eventual retirement. To get started, check out the presentations and video buttons below. Then, click to expand each section to learn more!
There are five forms of retirement. The form of retirement you may receive is based upon your years of regular service and age (see Chart below).
- NORMAL RETIREMENT (UNREDUCED BENEFIT)
Your normal retirement date is the first of the month that falls on or follows your 62nd birthday, and you have completed at least 5 years of continuous service. If you elect to retire on that date, you will receive a normal retirement benefit determined by the formulas beginning on page 13. - OPTIONAL LATER RETIREMENT (UNREDUCED BENEFIT)
You may continue working past your normal retirement date, and your contributions and credited service will continue until the date you actually retire. - VOLUNTARY EARLY RETIREMENT (UNREDUCED BENEFIT)
You may elect to retire before your normal retirement date if you have reached your 55th birthday and have completed at least 30 years of continuous service, or if you have reached your 60th birthday and have completed at least 20 years of continuous service. In these cases, you will receive your full benefit. - INVOLUNTARY EARLY RETIREMENT (REDUCED BENEFIT)
You may retire before your normal retirement date if you are involuntarily separated from employment and have attained age 50 with 20 years of continuous service, or have completed 25 years of continuous service at any age. Your benefit is paid in a reduced amount if you are younger than age 55. - OPTIONAL EARLY RETIREMENT (REDUCED BENEFIT)
You may retire before your normal retirement date if you have reached your 52nd birthday and have completed at least 5 years of continuous service. Your benefit is paid in a reduced amount. However, you may not begin to receive retirement benefits until your normal retirement date if you are separated for cause on charges of misconduct or delinquency; you resign pending termination on account of such charges; you resign pending investigation into acts of misconduct or delinquency, or your employment terminates pursuant to a settlement agreement pending disciplinary action.
The NEXCOM Retirement (Pension) Plan is a defined benefit retirement plan that will pay you a monthly benefit after you retire for your life and; if you elect, will pay a reduced benefit to your spouse or a designated survivor after your death.
Associates hired August 1, 2015, or later are automatically enrolled in the pension plan. Contributions of 1% will begin to come out of your paycheck after your one year anniversary date. You will receive one year credited service, free.
Regular associates with less than one year of cumulative regular service who were not automatically enrolled in the Pension Plan may enroll in the Plan within 30 days of the end of the one year waiting period. You will receive one year credited service, free.
Regular full-time or regular part-time associates with more than one year of cumulative regular service may enroll in the Pension Plan any time. You will earn credited service for time in the plan.
You are vested in NEXCOM’s contributions to the plan (that is, you own them) after five years of regular service. You can retire with full benefits at age 55 with 30+ years of regular service, at age 60 with 20+ years of service or at age 62 with 5+ years of service. Reduced benefits are paid as early as age 52 with 5+ years of service.
Your contributions to the plan are 1% of your bi-weekly W-2 earnings. If you terminate your employment and elect to not receive an annuity, you may elect to receive your contributions back with interest. The Retirement is the only benefit NEXCOM offers that guarantees you will receive more money back than what you contributed.
Contact your local Human Resources Office or the NEXCOM Retirement Department for additional information, enroll in the plan, request a retirement benefit estimate or to submit an application to retire.
Medical/Dental Provisions
Employees are eligible to continue participation in the Uniform Health Plan at retirement, and beyond age 65, if they meet the following conditions.
- You must be enrolled in the Plan on the day before retirement and,
- You must have 15 years accumulated participation in any combination of DOD NAF component health plans and the NAF UHP.
- You must receive an immediate NAF annuity.
Important links:
The NEXCOM 401(k) Plan is a defined contribution retirement plan. Both you and NEXCOM make contributions to the Plan into your account. You decide how much to contribute through biweekly payroll deductions, and you direct how the money is invested based on your retirement income requirements and your investment style (conservative, aggressive, etc.)
There are 26 investment funds in a wide variety of asset classes and a brokerage account in which to invest. You have the option of contributing on a pre-tax basis or a post-tax basis (Roth) or both. If you contribute on a pre-tax basis, the money you contribute to your 401(k) account is taken from your pay before federal, state and social security taxes, thereby reducing your current taxable income and the tax you pay. You do not pay taxes on your 401(k) Plan contributions or investment earnings until you begin taking distributions from the Plan.
You can make pre-tax contributions up to 90% of your eligible pay not to exceed $23,500 in 2025. However, if you are age 50 or older in 2025, the catch-up contribution limit is $7,500 and you may contribute up to $31,000 in pre-tax and post-tax contributions.
Get started by logging onto https://EmpowerMyRetirement.com. You’ll be taken through some basic questions that will get you set up. You will be automatically defaulted to the age-appropriate Target Date Fund. Once you’re set up, you can explore the different investment options available and make changes. After initial enrollment, make sure you log in and name your beneficiaries! Your investments can be changed at any time by going online to https://EmpowerMyRetirement.com. If you’re not comfortable enrolling online, ask your HR representative about other ways to enroll.
ENROLLMENT INSTRUCTIONS:
- • Go online at https://EmpowerMyRetirement.com and choose “Register.”
- • Select “I do not have a PIN.”
- • Enter your personal information and select a User Name and Password.
- • Select “Sign in” going forward.
NEXCOM matches ½% of your compensation bi-weekly for every 1% you contribute, up to 6% of your pay for a maximum match of 3% of your pay. Here’s an example of how the NEXCOM match works:
- Your biweekly contributions: 6% (NEXCOM match = 3%)
- Your biweekly earnings: $1,000
- $1,000 x .06 (i.e. 6%) = $60.00 contribution to the 401(k) Plan
- NEXCOM Match contribution = $1,000 x .03 (i.e. 3%) = $30.00
You will be vested in NEXCOM's matching contributions based on the following vesting schedule:
>| Years of Participation | Percentage Vested |
|---|---|
| After 1 | 25% |
| After 2 | 50% |
| After 3 | 100% |
You can begin taking distributions from the Plan as early as age 59 & ½. Although the money in the Plan is earmarked for retirement, you may also take a loan from your 401(k) Plan, and under limited circumstances may take “hardship withdrawal” distributions.
Most 401(k) transactions including enrollment, contribution changes, loan requests, etc. can be performed directly through the Empower Retirement Center:
- Online at: https://EmpowerMyRetirement.com
- Telephone Toll Free: 1-800-701-8255– Establish a personalized PIN following the prompts
Requests for Hardship withdrawals must be submitted directly to Empower.
Retirement Plan Handbook
