WELCOME GPC/NAPA EMPLOYEES
GPC/NAPA PENSION PLAN TERMINATION - FREQUENTLY ASKED QUESTIONS FOR DEFERRED PARTICIPANTS
Genuine Parts Company Pension Plan (the “Plan”)
August 1, 2024
What change is GPC making to the Plan?
GPC has decided to transition all benefits under the Plan to a highly qualified insurance
company to further align to our long-term strategy and provide new opportunities for plan
participants who have not begun receiving benefits from the Plan. This transition, legally known
as a “standard plan termination,” will effectively terminate the Plan as of September 30, 2024.
This process will not change the amount of the benefit you have earned, and it gives you
additional flexibility in selecting how and when you want to receive your benefit.
Why is GPC terminating the Plan?
GPC began to change the way it offers retirement benefits to teammates in 2008. At that time,
we closed participation in the Plan and increased our investment in the Genuine Parts Company
401(k) Savings Plan (the “401(k) Plan”) to better align with the needs of our teammates and offer
a more modernized retirement benefit. In 2013, future accruals in the Plan were discontinued.
The Plan is currently in a strong financial position thanks to many years of responsible oversight
and a long history of regular company contributions. Terminating the Plan and transitioning
benefits under the Plan to a highly qualified insurance company is the logical next step as we
look to the future.
What does terminating the Plan mean?
Terminating the Plan means that GPC will go through a rigorous regulatory process to distribute
benefits to participants, as they elect, and transfer the payment responsibilities of all remaining
Plan benefits to a highly qualified insurance company. Prior to the transfer of payment
responsibilities, participants not already receiving payments will be offered the opportunity to
receive a one-time lump sum payment or begin receiving a monthly annuity payment during a
limited-time benefits election period. After one-time lump sum payments are paid to participants
who elect to receive them, all remaining future benefit payments will be made by the selected
insurance company. This process requires significant effort and may take up to 24 months to
complete. Once the process is completed, the Plan will no longer exist as it does today, and any
remaining benefits will be paid by the selected insurance company. Neither GPC nor the Plan
will be responsible for benefit payment obligations after those obligations are transferred to the
insurance company.
What is the significance of the Date of Plan Termination?
GPC must comply with various regulatory requirements and the Date of Plan Termination
(September 30, 2024) determines the timing for many of these requirements. This includes
providing the required participant notifications and submitting the applicable regulatory filings.
However, beyond that, nothing happens on the Date of Plan Termination and there is no action
required by you.
How does this change affect me?
The transfer of the Plan benefits does not affect the benefit you have earned under the Plan.
• You will have the following options during a future limited-time benefits election period
which is anticipated to occur in the summer of 2025:
1. You can elect to receive a one-time lump sum payment of your Plan benefit
▪ To be rolled over to another qualified retirement plan, including an individual IRA
▪ To be rolled over to the 401(k) Plan (only available for active GPC teammates)
▪ To be sent directly to you as a cash distribution, less applicable taxes
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2. You can elect to begin receiving your benefit as an immediate monthly annuity payment
3. You can opt to receive your benefits at a later time from the selected insurance company
in any form of benefit payment option available to you under the Plan
• If you are currently eligible to receive a benefit from the Plan, you may elect to receive your
benefit at any time according to the provisions of the Plan. However, if you choose to start
receiving your benefit before the limited-time benefits election period (summer 2025), you will
not be eligible to participate in the limited-time benefits election period.
How will my options under the limited-time benefits election period differ from my current
and future options?
Currently and after the limited-time benefits election period ends, based on the Plan’s
requirements, you may receive your benefit any time after you terminate employment and reach
your normal retirement date under the Plan (age 65). You may be eligible to commence benefits
as early as age 55 if you completed at least fifteen years of service. You are also eligible to
commence benefits within 180 days of your termination of employment if the lump sum present
value of your Plan benefit does not exceed $75,000.
During the limited-time benefits election period, you will have the opportunity to choose how to
receive your benefit — as a one-time lump sum payment, as an immediate monthly annuity, or to
defer payment to a later date — regardless of your employment status, age or number of years
of service.
When will Plan benefits be distributed?
Because the Plan termination is subject to federal regulatory approval, the process can take up
to 24 months. The exact timing of when benefits will be distributed will depend on how quickly
GPC receives approval from the federal agencies (as well as a number of other factors), but we
expect it to occur in the summer of 2025. If you are already eligible to commence your benefit,
you may elect a distribution at any time according to the provisions of the Plan.
Which federal agencies are involved in the Plan termination?
The Plan termination and transition process will follow several regulatory steps required by the
Pension Benefit Guaranty Corporation (PBGC). In addition, GPC will apply for an Internal
Revenue Service (IRS) ruling to confirm the tax-qualified status of the Plan.
What is the Pension Benefit Guaranty Corporation (PBGC)?
The PBGC is a special governmental entity that was established to protect certain pension
benefits in the event that a pension plan does not have sufficient funds to pay all current and
future plan benefits. You can find more information about the PBGC at PBGC.gov.
Will my benefits be affected by this change?
No. The value of your accrued benefit will not change. Participants who have not yet started their
benefits will be able to receive their benefits in the future consistent with current Plan terms and
the requirements of applicable law.
Is GPC making this change because the company does not have enough money to fund
the Plan and pay benefits to Plan participants?
No. The Plan is well funded and complies with all statutory funding requirements. By law, in a
standard plan termination such as this one, the Plan must be fully funded before benefits can be
distributed.
When will participants receive an estimate of their benefit?
All participants will receive a Notice of Plan Benefits, which is a personalized statement of their
estimated Plan benefit. GPC intends to provide this notice in March 2025, but the notice date
may vary depending on the progress of the transition process.
What actions do I need to take now?
There is no action required on your part at this time. Throughout this process, be sure your
mailing address is kept up to date so that we may continue to keep you informed and send you
the required notifications:
• Current teammates: Access Workday on GPC Connect
• Former teammates: GPC Retirement Plan Service Center at 1-866-415-3395
Does the change to the Plan affect the 401(k) Plan?
No. The 401(k) Plan is not affected by the termination of the Plan. If you participate in the 401(k)
Plan, GPC will continue to contribute to the 401(k) Plan on your behalf in accordance with the
terms of the 401(k) Plan. If you are a current teammate and elect a lump sum payment during
the limited-time benefits election period, you will have an option to roll over your one-time lump
sum payment from the Plan to the 401(k) Plan as part of the transition process, allowing you the
opportunity to defer taxes until you ultimately withdraw funds from the 401(k) Plan.
How will the insurance company responsible for paying benefits in the future be
selected?
The transfer of the Plan benefits does not affect the benefit you have earned under the Plan.
• You will have the following options during a future limited-time benefits election period
which is anticipated to occur in the summer of 2025:
1. You can elect to receive a one-time lump sum payment of your Plan benefit
▪ To be rolled over to another qualified retirement plan, including an individual IRA
▪ To be rolled over to the 401(k) Plan (only available for active GPC teammates)
▪ To be sent directly to you as a cash distribution, less applicable taxes
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2. You can elect to begin receiving your benefit as an immediate monthly annuity payment
3. You can opt to receive your benefits at a later time from the selected insurance company
in any form of benefit payment option available to you under the Plan
• If you are currently eligible to receive a benefit from the Plan, you may elect to receive your
benefit at any time according to the provisions of the Plan. However, if you choose to start
receiving your benefit before the limited-time benefits election period (summer 2025), you will
not be eligible to pGPC will engage an independent fiduciary to act in the best interest of participants and
beneficiaries in evaluating and selecting an insurance company to take over responsibility for
paying benefits to Plan participants. The independent fiduciary will conduct an objective,
thorough and analytical due diligence of potential insurers. When making the selection, the
independent fiduciary will consider many factors, including the financial strength and rating of the
insurance company, its ability to administer benefit payments and its customer service
capabilities.
Participants who are receiving monthly payments and participants who do not elect a one-time
lump sum payment or monthly annuity payments during the limited-time benefits election period
will be notified of the insurance company chosen. The insurance company selected will be
subject to ongoing regulation and oversight by the insurance commission of its home state. A
summary of the insurance companies from which the independent fiduciary will select will be
included along with the Notice of Plan Benefits that will be sent to you during or around March
2025. Neither GPC nor the Plan will be responsible for benefit payment obligations after those
obligations are transferred to the insurance company.articipate in the limited-time benefits election period.
When and where can I get more information?
The notices included in this package provide additional information regarding the Plan transition.
Please read them carefully. You may also visit the GPC Pension Plan Transition Website at
gpcpensionplantransition.com to learn about the transition and access helpful resources.
You will also receive several communications throughout the transition period, including a
detailed notice about the amount of your benefit at the time the Plan terminates.
Whom should I contact if I have additional questions?
You can contact the GPC Pension Plan Transition Service Center at 1-855-434-4235
Monday – Friday between the hours of 9:00 a.m. – 6:00 p.m. ET, excluding holidays. The
Service Center will be open from August 1 – September 5, 2024, and will reopen in March 2025.
Source: General Parts Company Pension Plan Transition - fREQUENTLY ASKED QUESTIONS.
This discussion is for informational purposes only. In the event of a discrepancy between any information presented, and any information provided by Genuine Parts Company Pension Plan, their information will prevail. Neither New York Life Insurance Company, its affiliates nor its agents are affiliated with Genuine Parts Company Pension Plan.
Michael DiGirolomo
Financial Services Professional
(315) 449-8650