Retirement
Retirement
There are two important retirement resources called the Power of 2: The Cummins Pension Plan and the Cummins Retirement and Savings Plan (RSP). Retirement planning and saving is important to your future retirement plans. Cummins role is to provide valuable plans and resources to help you build your future income. Your role is to invest and manage your retirement savings.
For more information about your retirement benefits, go here where you will find a dashboard showing your Pension Plan and RSP balances and links to specific financial wellness benefits.
If you plan to retire from Cummins please contact the OCU Communications Officer, Krista Dickinson via email or at 812-377-7211.
Retirement Plan Highlights
Snapshot of Your Retirement Plans
The RSP gives you the opportunity to customize your savings by selecting your contribution percentage and choosing from a wide range of investment options. Cummins also saves with you in the RSP by providing matching contributions to help you save more for the future. At the same time, the Cummins Pension Plan accrues a benefit for you based on eligible earnings—and it’s completely funded for you by Cummins!
Here are some highlights of both plans.
| Cummins RSP (401(k) Plan) | Cummins Pension Plan | |
| Eligibility | Immediately | Immediately |
| Enroll | You can enroll right away—however, you’re automatically enrolled 60 days after your hire date at a before-tax contribution rate of 6%.
Go to yourbenefitsresources.com/cummins and click the automatic plan enrollment promotion on the top of the homepage to adjust your contribution rate or investment choices. |
Cummins automatically opens an account for you. |
| Do you contribute? | Yes. You can contribute up to the before-tax annual limit of $20,500 for 2022. If you’re 50 or older, you can contribute up to $27,000 before-tax. After-tax contributions are also allowed, but not matched—see below. |
No. This account is fully funded by Cummins for your benefit. |
| Does Cummins contribute? | Yes. The company matches your before-tax contributions: 100% on the first 1% you contribute and 50% on the next 5%. Contribute 6% or more of your eligible before-tax pay to get the full company match of 3.5%. |
Yes. Your benefit of 4% to 6% of pay, based on age and service with Cummins, is totally funded by the company. |
| Is there a vesting requirement (how soon you “own” the money contributed by Cummins)? | You’re always 100% vested in your entire account—your contributions, the company match, and any earnings. If you leave Cummins, you still have ownership over your entire account balance. When you leave Cummins, the balance is eligible to roll over to your next employer or an individual retirement account (IRA). |
You’re 100% vested after three years of service. The vested balance is eligible to roll over as well. |
| Investment options |
Choose from a range of investment options to suit your personal investment goals. |
It is the company’s responsibility to invest trust assets to fund the plan benefit. |
Cummins Retirement & Savings Plan:
Cummins Retirement and Savings Plan
After Tax Contribution Information
Fund Trading Restrictions and Fees
Cummins Stock Notice – Investing through RSP
RSP Distribution Options and FAQs 2019
Cash Balance/Pension Plan:
Cummins Pension Plan (Cash Balance)
Cummins Pension Plan Summary of Material Modification July 2016
Additional Information:
Medicare Special Enrollment Form CMS-L564E
Medicare-Enroll-in-Part-A-and-B