Re(4): 2004-13th. Check Update IP: 64.12.116.203 Posted on February 12, 2008 at 06:24:19 PM by Larry Vincent
Sarah and All,
The 13th. Check funding mechanism was changed and now the benefit is paid from the FULL 11th. percent of the investment returns. So, in order to get a 13th. Check, the investment return would have to be 11% or higher. I am not sure what would happen if the investment return was 10.5%. It would seem appropriate that Retirees and eligible Spouses would get a half benefit.
The 6% you are talking about is something that I wrote about and said I believe that the 13th. Check should come from the 6th. percent of any investment return. If our trigger percentage for the benefit was at 6%, most years we would be getting a check. Something to work towards in the near future. After the January 08 report, the fund was down by a -8.1%. Unless our fund advisor does an exemplary job, it doesn't look good for a 13th. Check in June of 2009.
At this point, we are better off at 11% of the investment return rather than a percentage of the 10th, 11th and 12th percentage that were the old trigger points for payment. Hope this answers your question.
Larry Vincent
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