Ford SSIP and TESPHE Plans
With over 20 investment options available, the Savings and Stock Investment Plan (SSIP) for salaried employees and Tax Efficient Savings Plan For Hourly Employees (TESPHE) are among the best in the country. This large number of funds provides ample opportunity to build a well-diversified portfolio for your Ford 401k savings.
For your reference, we have provided a fund table displaying style, risk, and past performance for many of the funds in the SSIP and TESPHE plans. In addition, please visit our "Fund Commentary" section below for further information on specific funds and/or fund types within the SSIP and TESPHE accounts.
To the right you will find articles of interest as well as news and updates to Ford employee and retiree benefits. Check this page for future updates to the SSIP and TESPHE plans, as well as news that affects Ford employees and retirees.
News and Updates
Ford Retirement Plan Changes –
This change is effective September 2, 2015. Transfers out of the closing fund must be complete by market close on September 2nd or balances will automatically transfer to an alternate fund in the plan.
To discuss the investment line-up change or how this change may impact your investment allocation, contact us toll-free at 1-866-444-6246.
Ford HSA Plan Changes –
In addition, on or about April 24, 2015 the Parnassus Small Cap Fund (PARSX) will be merged with the Parnassus Mid Cap Fund (PARMX). If you currently hold the Parnassus Small Cap Fund, your account will automatically reflect this non-taxable transaction to the Parnassus Mid Cap Fund. No action is required on your part.
For those currently holding Neuberger Berman Mid Cap Intrinsic Value, per our current recommended conservative or growth model portfolios, you may continue to do so. If you are new to Mainstay’s Ford HSA model portfolios, or are getting caught up, please use Oppenheimer Main Street Small & Mid Cap as an alternative fund.
If you have questions regarding how these changes may affect your HSA portfolio or your investment option selection within the Ford HSA, do not hesitate to contact Mainstay toll-free at 1 866 444 6246.
Ford Retirement Plan Changes –
All changes are effective January 2, 2015. On December 31, 2014, all affected funds will be closed to new investments and current allocations will transfer to the replacement funds being added to the plans.
To discuss the investment line-up overall or how these changes may impact your investment allocation, contact us toll-free at 1-866-444-6246.
Ford Retirement Plan Changes –
Effective November 14, 2014, the fund will be closed to new investments and current allocations will transfer to an existing fund in the plan.
To discuss this recent fund removal, our insight into the change, or how it may impact your investment allocation, contact us toll-free at 1-866-444-6246.
Ford Retirement Plan Changes –
Effective May 1, 2014, the ING Clarion Global Real Estate Securities Fund will change its name to Voya Clarion Global Real Estate Securities Fund. This will be a name change only - the fund manager, investment objective, and fees will remain the same.
In addition, Ford Retirement Plan (FRP) participants upon termination of employment will have the option to take partial withdrawals or commence installment payments from the FRP. These options are in addition to the current lump sum withdrawal option. This new option will be effective April 1, 2014.
Ford SSIP and TESPHE Roth Feature –
The Roth feature within a 401(k) plan allows employees the flexibility to “tax diversify” their income sources for retirement by directing savings among designated Roth, traditional pre-tax, and/or after-tax contributions. Additionally, for those Ford employees who are ineligible for a Roth IRA, the Roth feature provides an opportunity to build a tax-free retirement income source.
For questions on this new Roth feature within the Ford 401(k) plan, feel free to call Mainstay Capital Management toll-free at 1‑866‑444‑6246.
Request a free copy of Mainstay Capital Management’s “Roth 401(k) Investment Guide”
Ford Increases Company Match in the
Ford Fund Change Announcement –
Ford AICP & Profit Sharing Payout –
All eligible participants were provided the option to receive the payment as cash, contribute all or a portion of the payment to the SSIP or TESPHE (deferring all federal income tax withholding), or contribute all or a portion of the payment to a Ford Interest Advantage account.
If no election is made for the AICP or Profit Sharing payout, you will receive your entire payment in cash, incurring a mandatory 25% Federal income tax withholding.
Any amount of the AICP payout or Profit Sharing payout that is elected for deferral to the SSIP or TESPHE will be combined with your pre-tax contributions that are contributed to the plan throughout the year, including those contributions you have already made this year. Keep in mind, the IRS limit for pre-tax contributions can not exceed $17,500 for 2013 (or $23,000 if age 50 or older). There is a total contribution limit, which includes your contributions and company match (where applicable), of $51,000 (or $56,500 if age 50 or older) for 2013.
For salaried employees, Ford will continue to match $.80 on the dollar up to 5% of base salary as long as you maintain your payroll contributions throughout the year. The company match will continue on a pre-tax basis without affecting the pre-tax threshold.
Do not hesitate to contact us toll-free at 1‑866‑444‑6246 if you would like to discuss your AICP or Profit Sharing election options.
Ford Fund Change Announcement – December
Ford to Offer a Roth 401(k) in 2013 –
For more information on the Roth 401(k) account, you can review our list of “Roth 401(k) - Frequently Asked Questions” or request a FREE copy of Mainstay Capital Management’s “Roth 401(k) Investment Guide”. If you have questions on how this new Roth 401(k) option may be best utilized in your personal situation, feel free to contact us toll-free at 1‑866‑444‑6246.
Ford Pension Lump Sum Package Rollout –
The first group of eligible participants have received their Decision Guide and Election Kit. This group has an election period of August 1st through October 29th. Each new group will have a 90 day election period in which to make their decision. If you are considering the pension lump sum offer, review Mainstay’s “Pension Lump Sum Buyout Program” summary. You can also contact us toll-free at 1‑866‑444‑6246 to discuss your pension payment options and how each may impact your individual situation.
Ford Offers Pension Lump Sum Payments –
By taking advantage of the lump sum pension payment option, Ford retirees may reduce many potential pension risks including longevity risk due to inflation, tax risk, and mortality risk. Most importantly it will completely eliminate "PBGC risk" - the risk that monthly pension payments are someday reduced by the Pension Benefit Guaranty Corporation.
Visit our “In The News” section to review recent articles discussing pension lump sum payments or call Mainstay toll-free at 1‑866‑444‑6246 to discuss your personal situation.
Ford increases company match in the SSIP –
Ford STEP & SRI Separation Programs
- 1st Quarter 2012
For those evaluating a buyout offer, there are important factors to consider:
Mainstay Capital Management is a fee-only, independent investment advisor that currently provides portfolio management and retirement planning services as well as counsels hundreds of Ford employees on buyout offers. We can provide a comprehensive Retirement Income Analysis, help evaluate "what-if" scenarios, and assist in making informed decisions concerning any buyout offer.
Call Mainstay Capital Management toll-free at 1‑866‑444‑6246 to discuss your personal situation with a Retirement Planning Specialist.
Ford Fund Change Announcement – June
Ford SSIP & TESPHE Fund Change Announcement –
Affiliated Computer Services Replaced Fidelity –
BlackRock LifePath Index Funds
Ten of these funds are included in the Ford plan, with 5-year incremental targets from 2015 to 2055, along with a fund targeted as a Retirement Fund. The way the LifePath funds are designed, the further away the target date, the more aggressive the asset allocation, conversely, the closer the date, the greater the emphasis on preservation of capital in the asset allocation.
LifePath funds hold some appeal in that they are simple to explain and administer. While this approach is unique, we believe the asset allocation decisions provided by these funds are crude at best. LifePath funds attempt to make decisions about asset allocation based solely on a target date. An investor’s tolerance for risk and financial goals are other key factors that should largely play a role in determining the investment strategy and asset allocation. Additionally, they leave no room for the fund manager to tactically adjust the allocation strategy based on specific opportunities within the financial markets or in response to prevailing market conditions.
The returns realized in these commingled vehicles are diluted by a rigid adherence to mechanical allocation parameters. These parameters may prove to be shortsighted and inappropriate for everyone participating in the pool. The real world changes every day, yet proponents of LifePath funds, or similar funds, expect someone to stick to a single game plan for as much as 40 years, whether interest rates are rising or falling, or whether the economy is in expansion or recession. While LifePath funds offer a simple one-stop-solution, we continue to advise participants to avoid these funds and retain the flexibility to proactively adjust their portfolios as needed.
Please reference "Target-Date Funds Face Regulation", published in The Wall Street Journal.
That being said, many corporations often match a portion of employee retirement plan contributions with company stock, offer employees attractive incentives to purchase company stock either within or outside of retirement accounts, or include stock or stock options as part of employee compensation. We recommend that employees take full advantage of these opportunities, but remember to keep their total company stockholdings within reasonable levels.
Fund Table - March 31, 2015
The Ford SSIP and TESPHE fund table provides critical data on investment options within the plan.
If you have any questions concerning our website or your Ford
401(k) account, please feel free
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10775 South Saginaw St., Grand Blanc, Michigan 48439
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