By Nino Pavan, J.D., CFP®
Southern California Edison employee benefits are comprehensive. However, if you’re like many SCE employees, you might have trouble understanding all of your options and choosing which ones are best for you.
I encourage all of my clients who work for SCE to schedule a meeting to discuss their benefits. If you’re not yet familiar with the various Southern California Edison employee benefits that may be available to you, here’s a quick overview.
401(k) Plan
The SCE 401(k) plan is the cornerstone of Southern California Edison employee benefits. You may choose between two SCE 401(k) plan types:
- Traditional 401(k): Funded with pre-tax dollars
- Roth 401(k): Funded with post-tax dollars
Southern California Edison retirement planning is uniquely flexible, and the company’s retirement plan options are emblematic of that. Regardless of which 401(k) option you choose, SCE matches your contributions up to 6%.
Pension
SCE is one of the few employers still funding pensions for employees. Unfortunately, these particular Southern California Edison employee benefits aren’t available to anyone hired in 2017 or later.
Most employees who do have SCE pensions have cash balance plans, which means that your total retirement benefit increases based on your pay and current interest rates.
Employees who have been with SCE for a longer time may have grandfathered pension plans that grow based on age, pay, and time of service.
Notably, if you have an SCE pension plan, you may choose between a lump-sum payout and a monthly income. If you choose the lump sum, you may be able to roll it into your 401(k) or IRA when you retire. We can help you explore SCE retirement income strategies.
Investment Options
Southern California Edison employee benefits also include a wealth of investment options like these:
- Managed funds: Your investments are managed by a third-party company.
- Self-directed brokerage: You manage your investments as you see fit.
- Index funds: Your funds are held in indexes of major asset classes.
If you have an idea about when you want to retire, you might benefit from investing in a target date fund, which prioritizes growth early on but becomes more conservative as you get closer to retirement.
Retiree Healthcare
Healthcare is one of the most important SCE retirement benefits. SCE offers pre-Medicare plans for retirees (and their dependents) who don’t yet qualify for Medicare. SCE retiree healthcare options also include Medicare plans for those who qualify.
Life Insurance and Ancillary Benefits
Southern California Edison employee benefits also include life insurance, and rates are typically cost-effective. Many employees opt for a total death benefit of five to eight times their yearly salary plus $50,000. This amount is sufficient to meet most employees’ needs.
Final Pay, Sick Time, and Vacation
When you retire, you may be able to cash in on some of your unused Southern California Edison employee benefits, including your accrued vacation time. Union and grandfathered employees can receive 20% of their accrued sick leave.
However, nonunion employees and those who have not been grandfathered into the 20% rule won’t be compensated for unused sick leave when they retire.
Need Help Understanding Southern California Edison Employee Benefits?
If you want to make the most of your Southern California Edison employee benefits, you need a financial advisor who’s deeply familiar with your options. The team at Financial Designs works primarily with employees of SCE, and we can use our focused knowledge to help you align your employee benefit choices with your overarching financial goals.
If you’re looking for an SCE employee benefits guide, contact us anytime. To schedule a no-obligation consultation, call (909) 626 1642 or email fdc@fdcadvisors.com today!
About Nino
Nino Pavan is the President and a CERTIFIED FINANCIAL PLANNER® at Financial Designs in Claremont, CA, specializing in goal-centered retirement planning. With over 30 years of experience, Nino helps individuals and families navigate the retirement process with confidence, making it stress-free. He holds a law degree, a BS in Telecommunications Management, and is a contributing advisor to Kiplinger.
