We all are familiar with Disney. We grew up watching Disney- its movies and shows and we still enjoy occasional Disney movies. Whether the shows are animated or non-animated, we love watching Disney. But Disney is just about shows and movies. A lot of hard work goes behind the screen. And there is also a theme park of Disney named Walt Disney World which is in Florida. Just imagine having a job at Disney. Sounds fun right? The job is also full of responsibility and tiring too. Does Disney have a retirement/pension plan?
Yes. Disney offers a pension plan. Let’s try to understand how it works.
The pension plan is applicable for employees hired on or before December 31, 2011. The pension plan includes three parts:- eligibility service, benefit service, and vesting service. Here the word “Service” means work done by you at Disney or you can say the “services” provided by you at Disney.
The eligibility criteria include a single point which is: –
- To complete 1,000 hours of service over 12 months.
That’s it. If you have completed 1,000 hours at Disney, this means you have passed the first criterion and are ready to move to the next step.
Your benefits under the plan are determined by a formula. The formula is divided into two parts: –
- For pre-2012 service: – The calculation is done considering your final average pay from the day you joined the Disney family to the day you decided to leave Disney.
- For service beginning January 1, 2012, the formula is 1.25 percent of your final average pay multiplied by your years of benefit service. You will be paid for entire years and months of service.
Vesting service is referred to the minimum amount of time you must work at Disney to earn the benefits of the pension plan when you decide to leave. The companies provide a specific number of years you must work actively to reap the benefits of its pension plan and leave the company
Before 2012, the vesting period was five years set by Disney. Later, the vesting period was reduced from five to three years of service on January 1, 2012. Both your pre-2012 and post-2011 benefits are subject to the new vesting criterion.
This means that if you have provided Disney with at least three years of vesting service as of January 1, 2012, then you are completely eligible for the pension plan.
I took a leave of absence during my first year at Disney in 2010, but I’ve now been with the company for more than a year. When did I first become eligible to join the plan?
Ans- Before 2012, Disney required 1,000 hours of service to be eligible to participate. Even if you took a leave of absence, you would have been qualified to participate at your departing date considering that you worked at least 1,000 hours between the day you were hired and the day you left. Once you fulfill the 1,000 hours criterion, you become eligible to participate in the plan of the year 2011 as you joined that year.
What will happen if I leave Disney and come back after January 1, 2012?
If you decide to leave Disney after January 1, 2012, and then return, you will no longer be eligible for additional pension benefits under the plan. The Disney Retirement Savings Plan may allow you to earn future advantages. To be vested in the pension benefit if you leave Disney after January 1, 2012, you must have completed three years of vesting service.
Will my vesting service be covered under the pension plan if I leave the Company before fulfilling the vesting criteria and return later?
If you take a five-year or longer leave from work, you will forfeit whatever pension benefits you have previously received. Your past vesting service will be reconciled and counted toward meeting the vesting requirement for your pre-2012 and, if applicable, post-2011 benefits if your gap in service is less than five years. You will not get any further benefit service under the pension plan if you return to Disney after December 31, 2011. The Disney Retirement Savings Plan may allow you to earn future advantages.
I departed Disney after 20 years of service in 2011. Am I still qualified for the pension plan if I was rehired in 2012?
The answer is No. You are most likely vested in the pension benefit if you worked for Disney for 20 years. You are not qualified to participate in the pension plan again because you re-joined the firm in 2012. The Disney Retirement Savings Plan may be right for you.
Working at Disney can be fun and rewarding. And Disney offers pension plans for which you need to be eligible to participate and fit into certain criteria given by Disney. The criteria include 1,000 hours of work done over 12 months for at least 3 months. Hope you got the answer to Does Disney have a retirement/pension plan?