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Nationwide Pension Overview
Your pension is a “hands off” benefit, meaning Nationwide contributes to it and bears the investment risk. Plus, you are automatically enrolled as long as you meet the eligibility requirements. While you don’t need to do much, it’s important to understand certain details so you can better plan for retirement.
Here you’ll find a snapshot of your Nationwide pension plan’s key details. More information about your specific plan is available in your Summary Plan Description (SPD) at netbenefits.com.
| Key things to know | Nationwide Retirement Plan |
|---|---|
| Type of pension | Nationwide has two pension plans, and eligibility for each plan is generally linked to the date you were hired.
To confirm which plan you are enrolled in, or for any other questions about your pension, please call the Nationwide Retirement Center, administered by Fidelity, at 800-238-4015. |
| Eligibility | You are generally eligible to participate on Jan. 1 or Jul. 1 following the date you reach age 21 and complete a One Year Period of Eligibility Service. |
| Vesting | In general, you become 100% vested in your benefit after 36 months of Vesting Service (beginning from your date of hire). |
| Benefit formula | Your pension grows under one of two formulas. Cash Balance Formula
Final Average Pay (FAP) Formula If you were age 55 or older on Dec. 31, 2016, and a participant in the Nationwide Retirement Plan – Final Average Pay, your benefit is based on the FAP formula. Please review the Nationwide Retirement Plan – Final Average Pay Summary Plan Description for benefit calculation details. |
| Early retirement age | You may begin your pension as early as the first of the month after your employment ends. If you start your benefit before age 55 (or age 52 in the case of a job elimination), your distribution options under the Plan are limited. Note: Starting your benefit early will result in a reduced payment due to early-retirement actuarial adjustments. Different early retirement factors may apply depending on your plan and service history. |
| Full retirement age | Your Normal Retirement Age is 65 |
| Leaving employment | If you are vested when you leave:
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| Payment options | When it’s time to start your pension, you can typically choose from several forms of payment. Most options below are annuity forms that provide a guaranteed monthly payment for your lifetime.
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| Taxes | Your pension is subject to IRS rules under Sections 401(a), 411, 415, and 417.
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Note: The legal Plan documents govern administration and all benefit payments. If there is a conflict between the information listed here and the legal Plan documents, the Plan documents will govern. If you have any questions, visit netbenefits.com to view your Summary Plan Description or contact the Nationwide Retirement Center, administered by Fidelity, at 800-238-4015.
Key terms
Annuity payment
Annuity payment
The set amount you receive every month once you commence your benefit, from your retirement date for the rest of your life ("an annuity").
Cash balance plan
Cash balance plan
An employer-sponsored retirement plan funded through pay credits and interest credits. Investments are managed on your behalf by Nationwide to provide eligible participants with set retirement benefits for life, regardless of how the underlying investments perform.
Early retirement age
Early retirement age
The earliest date you are eligible to receive your pension benefit from the plan. When you run an estimate, you’ll be able to compare how retiring on this date impacts your benefit, as opposed to being employed by Nationwide for additional years and/or choosing to receive your pension benefit later.
Cash Balance Formula
Cash Balance Formula
Under the Cash Balance formula, your benefit grows in a way that looks like an account:
- Pay Credits of 3%–7% (dependent on your months of Accrual Service) of your Covered Compensation are added each pay period, plus
- Additional Pay Credits on compensation in excess of the Social Security Wage Base, plus
- Interest Credits, which are tied to the 30 Year Treasury Rate, are added to your account.
- Your account is then converted into an equivalent monthly annuity when you choose to retire.
Nationwide Retirement Plan – Account Balance Pay Credits | ||
|---|---|---|
Months of Accrual Service | Contribution Percentage | Pay Credits on Covered Compensation over the Social Security Wage Base* |
Fewer than 36 | 3% | 3% |
36 – 107 | 4% | 4% |
108 – 179 | 5% | 4% |
180 – 263 | 6% | 4% |
264 or more | 7% | 4% |
*2026 Social Security Wage Base: $184,500
- Example: If you have 24 months of Accrual Service and have Covered Compensation of $75,000, your pay credit would be $2,250 (3% x $75,000 = $2,250).
- Example: If you have 24 months of Accrual Service and have Covered Compensation of $200,000, your pay credit would be $6,717 ((3% x $200,000 = $6,000) plus (3% x $15,500 = $465) = $6,465)
Final Average Pay Formula
Final Average Pay Formula
Under the FAP formula, your pension is based on: A percentage of your final average compensation, multiplied by your years of credited service (up to 35 years), with extra enhancements for service above Social Security Covered Compensation. Please review the Nationwide Retirement Plan – Final Average Pay Summary Plan Description for benefit calculation details.
Full retirement age
Full retirement age
The age when you can retire and receive full benefits, typically age 65. For complete details, review your Summary Plan Description on netbenefits.com.
Interest rates
Interest rates
In a cash balance plan, interest rates affect both how your benefit grows each year and how your account is converted into a monthly pension at retirement. Higher interest rates generally increase annual account growth and result in higher monthly pension payments when the account is converted to an annuity. Lower interest rates generally have the opposite effect.
Lump sum
Lump sum
A one-time payment of your pension benefit—typically represents the present value of your future pension benefit.
Traditional pension
Traditional pension
An employer-sponsored retirement plan funded through a trust where contributions are invested on your behalf by a Nationwide investment fiduciary to provide eligible participants with set retirement benefits for life, regardless of how the underlying investments perform.
Vesting
Vesting
The amount of time (typically measured in years of service) that must elapse before your pension benefit is fully yours (subject to early retirement rules).
Consider next steps
Model your future benefit*
Log in to netbenefits.com to see how much your benefit has grown over time* and review future potential amounts based on different scenarios.
Consolidate your plans
View all your accounts in one spot by moving money from a different workplace plan or outside account.
*Note: If you have a manual calculation, you may not be able to use the modeling features in NetBenefits.
