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Attention Retirees: Annuity Information Update

Attention Retirees: Annuity Information Update
2nd Annuity Letter Updated

Already received your letter? Get your questions answered here or contact NAF Benefits.

Dear Army NAF Annuitant:

I am sending you, as promised, an update to let you know that the transition from John Hancock as your Annuity Service Provider to the Army NAF Benefits Office is proceeding as planned, with your April 1st , 2020 annuity payment being paid by Wells Fargo Bank. In addition, you will also see the cost of living adjustment (COLA) being applied, if applicable, to your April 1st, 2020 annuity payment. Cost of living adjustments are based on the annual change in the Consumer Price Index for All Urban Consumers (CPI-U). Army NAF retirees who have been receiving benefits for at least 12 months are eligible for the full COLA of 1.6% monthly increase. Retirees who have been receiving benefits for less than 12 months will receive a prorated COLA in 2020 based on the below chart in accordance to your annuity commencement date. In 2020 and succeeding years, they will receive the full 1.6% for 2019 plus any additional COLA awarded by the U.S. Bureau of Labor Statistics for those subsequent years.

In addition, you will also see the cost of living adjustment (COLA) being applied, if applicable, to your April 1st, 2020 annuity payment. Cost of living adjustments are based on the annual change in the Consumer Price Index for All Urban Consumers (CPI-U). Army NAF retirees who have been receiving benefits for at least 12 months are eligible for the full COLA of 1.6% monthly increase. Retirees who have been receiving benefits for less than 12 months will receive a prorated COLA in 2020 based on the below chart in accordance to your annuity commencement date. In 2020 and succeeding years, they will receive the full 1.6% for 2019 plus any additional COLA awarded by the U.S. Bureau of Labor Statistics for those subsequent years.

Annuity Commencement COLA Percentage

Annuity Commencement COLA Percentage
January 2019 or before 1.60%
February 2019 1.47%
March 2019 1.33%
April 2019 1.20%
May 2019 1.07%
June 2019 0.93%
July 2019 0.80%
August 2019 0.67%
September 2019 0.53%
October 2019 0.40%
November 2019 0.27%
December 2019 0.13%


The NAF Employee Benefits Office will now be your primary service center for any questions you may have and to assist you with any changes regarding your monthly
retirement annuity such as updates to tax withholding statements, addresses, and bank routing information, etc. Please keep in mind that we will do our best to assist with general tax questions, but we are not tax advisors.  You will be best served by contacting your own tax advisor to address specific questions relating to your own tax situation.

Please continue to visit our Frequently Asked Questions (FAQ) page at nafbenefits.com/annuity-FAQ.  Should you still have questions that aren’t answered on the FAQ page, please click "contact us" on the FAQ website and your questions will be referred directly to a member of our Retirement Team who will respond  to you.

All correspondence may be faxed to 210-466-1631 (Attn: Retirement Team) or mailed to the following address:   

HQ IMCOM G9 - NAF Personnel Services
2405 Gun Shed Rd., Bldg. 2261
Attn: Retirement Team
JBSA Fort Sam Houston, TX  78234

Thank you for your continued support as we strive to modernize and improve our systems to enhance your overall customer service experience.

Sincerely,
Paul D. Burk
Director, G9

Download the 26 Feb 2020 Annunity Letter (pdf)

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Annuity Information Update (17 December 2019)

Already received your letter? Get your questions answered here or contact NAF Benefits.

Dear Army Nonappropriated Fund Annuitant:

I am writing to inform you that the Army Nonappropriated Fund Benefits Program is changing the way we process Army Nonappropriated Fund retirement annuity payments.

Just like with any system with which we have contact in daily life, we are taking the opportunity to improve and modernize our processes, making the system we use more secure, reliable, and responsive to you.  John Hancock will no longer be our service provider; however, your retirement annuity will be managed in a new Army Benefits System.

These changes will go into effect on April 1, 2020.

Here is what you can expect as a result of this transition:
a.  The amount of your annuity payment will not change.
b.  The annuity payment will continue to be paid monthly, but you may receive it a day or two earlier or later than now; and
c.  The bank sending your annuity payment will change.  Your bank will not change.
d.  Your tax statements for 2019 will not be affected, and will be mailed to you in January 2020.

If you have questions about this transition, please visit our Frequently Asked Questions (FAQ) page at www.nafbenefits.com/annuity-FAQ.  We will continually revise and add to the FAQ page to keep you informed.  Should you still have questions that are not answered on the FAQ page, please click "contact us" on the FAQ website and your questions will be referred directly to a member of our Retirement Team who will respond back to you.

We are committed to making this change as seamless as possible.

Sincerely,
Paul D. Burk
Director, G9

Download the 17 Dec 2019 Annuitant Letter (pdf)

 

Frequently Asked Questions (FAQ) 

Q: Will John Hancock still be my service provider in 2020?
A: Effective April 1, 2020, John Hancock will no longer be the service provider for Army NAF retirees. Your retirement annuity will be managed in a new Army Benefits System.

Q: What changes can I expect as a result of changing to the new Army Benefits System?
A: 1. The amount of your annuity payment will NOT change;                                                                                                                                                  
2. The schedule of your annuity payment will NOT change. However, the timing of the payment may change (e.g. the day you receive your deposit or check may change);                                                                                                                                      
3. The bank from where your annuity is paid will change.

Q: What is the address to the Army Benefits Office?
A: US Army Installation Management Command NAF Employee Benefits Office                                                                                                                           
2405 Gun Shed Road                                                                                                                                                                                                               
Joint Base San Antonio Fort Sam Houston, TX 78234-1223

Q: How do I request an address change for my pension?
A: Effective February 1, 2020, contact the Army NAF Benefits Office at usarmy.jbsa.imcom-hq.mbx.naf-benefits-office-retirement-team@mail.mil and a representative can mail, fax or email the address change form to you.

Q: How do I request a change to my pension direct deposit account?
A: Effective February 1, 2020, contact the Army NAF Benefits Office at usarmy.jbsa.imcom-hq.mbx.naf-benefits-office-retirement-team@mail.mil and a representative can mail, fax or email the Electronic Fund Transfer form to you.

Q: How do I request a change to my pension tax elections?
A: Effective February 1, 2020, contact the Army NAF Benefits Office at usarmy.jbsa.imcom-hq.mbx.naf-benefits-office-retirement-team@mail.mil and a representative can mail, fax or email the Tax Withholding Election form to you.

Q: How will I receive my 1099 tax form for 2019?
A: John Hancock will still produce and mail the 1099 tax form for 2019 to you by the end of January 2020.

Q: Will I receive a COLA for 2020?
A: Annual Cost of Living Adjustments, if awarded, for retirees are effective April 1st and you will receive communication on this in February.

Q: Why did my monthly pension decrease?
A: In most instances, you were receiving a Supplemental Early Retirement Benefit (SERB) for starting your retirement early/prior to your normal retirement date (Age 62).  Therefore, upon your 62nd birthday, your SERB will stop as you are now eligible to apply for early social security.

Q: How do I report the death of a retiree?
A: Effective February 1, 2020, contact the Army NAF Benefits Office at 210.466.1641 and speak to the Life Insurance Program Manager. Be prepared to provide retiree name, date of death and your relationship to the retiree. In the majority of cases, the Life Insurance Program Manager will only need a copy of the original Death Certificate to payout life insurance.  This office will also notify John Hancock to stop payment of the retiree's monthly annuity.  If a survivor benefits applies, John Hancock will mail the required forms directly to the designated beneficiary.

Still have questions? Contact NAF Benefits.