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May 20, 2009
Recently, Tower sent out the annual pension notices to everyone.
Here is our take on this:
1. The notice is a model Annual Funding Notice which the company has completed with information that pertains to the Tower Automotive Consolidated Pension Plan. The language on PBGC is standard information IRS wants out in the public. It does not imply there is a problem with the pension plan or that it is under funded.
2. As of the funding target attainment percentage date reflected in the notice, the plan did not appear to be particularly at-risk at the time (83%). There is a funding shortfall, however. The company generally has the obligation to move the funding target attainment percentage toward 100%.
3. The Annual Funding Notice shows a difference between the actuarial value of plan assets as of 1/1/08 and fair market value of assets as of 12/31/08. There are two reasons for the difference, first the market value is a year later, after the stock market fell substantially, and secondly, actuarial value usually includes some smoothing of asset price variation. That is the actuarial value is not as high as the top of the market or as low as the bottom of the market. When the value of assets goes down, there may be an additional legal obligation for the administrator to contribute, depending on the amount the asset goes down.
If you have any questions please feel free to give me a call and I will try to get an answer for you.
Donald Schrauth
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April - 2009
Recently documents were sent out to all former employees of Tower Automotive who had purchased and held shares of Tower stock over several year periods.
If this applies to you, you may want to complete a Proof of Claim and Release provided with the documents. Completing the Proof of Claim and Release does not assure that you will share in the proceeds of settlement in the Class Action.
These Proofs of Claim and Release must be Postmarked and mailed on or before June 26, 2009, addressed as follows:
- Tower Automotive Securities Litigation
Claims Administrator
c/o Gilardi & Co., LLC
P. O. Box 8040
San Rafael, CA 94912-8040
The United States District Court Souther District of New York
Notice of Pendency and Proposed Settlement of Class Action
"TO; ALL PERSONS WHO PURCHASED OR ACQUIRED TOWER AUTOMOTIVE, INC. ("TOWER") COMMON STOCK AND/OR 6.75% TRUST CONVERTIBLE PREFERRED STOCK BETWEEN DECEMBER 21, 2000 THROUGH FEBRUARY 1, 2005, INCLUSIVE (the "SETTLEMENT CLASS").
There will be a fairness hearing on the proposed settlement May 27, 2009 in New York.
To Participate in the distribution of the net settlement fund, you must timely complete and return the Proof of Claim and Release form that accompanies this notice.
Notice regarding electronic files: Certain claimants with large numbers of transaction may request, or may be requested, to submit information regarding their transactions in electronic files. All claimants must submit a manually signed paper Proof of Claim form whether or not they also submit electronic copies. If you wish to file your claim electronically, you must contact the Claims Administrator at 1-866-907-1965 or visit their website at www.gilardi.com to obtain the required file layout. No electronic files will be considered to have been properly submitted unless the Claims Administrator issues to the claimant a written acknowledgment of receipt and acceptance of electronically submitted data.
If you have any questions about the settlement of the Class Action, you may contact Plaintiffs' Settlement Counsel:
Julie Prag Vianale
Vianale & Vianale LLP
2499 Glades Road Suite
112 Boca Raton, Florida 33431
Telephone: 561-392-4750
OR
Lee S. Shalov
Shalov Stone Bonner & Rocco LLP
485 Seventh Avenue, Suite 1000
New York, New York 10018
Telephone: 212-239-4340
Please Do Not Telephone the Court, The Clerk's office or any of the Defendants Regarding this.
If you did not get this notice and you feel you should have because you purchased stock during this period, you can contact one of the attorneys listed to get the appropriate paperwork.
Donald Schrauth
414-871-2460
414-578-8285
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October 24, 2008
News about the TAMU Insurance - we have engaged Benestar for the year 2009. We do not have the exact numbers or the amounts for the policies yet, but as soon as we have confirmed rates we will let everyone know, we are anticipating a reduction (hopefully) a large one. More to come stayed tuned. As soon as the rates are confirmed we will have them send out a confirmation notice to everyone.
Tower Automotive is issuing this notice to all Medicare B participants.
IMPORTANT NEWS ABOUT YOUR MEDICARE PART B REIMBURSEMENT
November 1, 2008
Dear Tower Automotive Retiree:
Currently you and/or your spouse receive a reimbursement for the Medicare Part B premium. You receive a check or direct deposit from Meritain, a full service third party administrator. The purpose of this letter is to inform you the payment of this benefit will end effective December 31, 2008.
In the past, you received a copy of the "Agreement between the Debtors and the Milwaukee Unions under 11 U.S.C. 1113 and 1114. This agreement was a result of the company's Chapter 11 Bankruptcy proceedings, and the closure of the Tower Automotive plant in Milwaukee. One of the provisions contained in this agreement was as follows:
B. Medicare Part B Supplement
The last sentence of the paragraph states. After December 31, 2008, neither the Debtors not TAAC shall have any obligation to pay the Medicare Part B Benefit to any Milwaukee Union retirees or the Milwaukee VEBA.
In accordance with this agreement, Tower automotive will stop paying your Medicare Part B reimbursement as of December 31, 2008. Your Medicare Part B Benefit will be reported on IRS Form 1099-R. You will receive the Form from Meritain in January, 2009 for benefits paid during 2008.
Sincerely - Tower Automotive Benefits Department
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July 21, 2008
Tower has filed an application on July 8, 2008 with EP Determinations, Internal Revenue Service - this is for an advance determination as to whether the plan meets the qualification requirements of 401 of the Internal Revenue Code of 1986, with respect to its termination.
I have contacted Tower and asked that advance notice be sent to everyone that is still in the plan and to have explain the options available to people in the plan.
Quote from Tower, "Any former colleague of Tower with an account balance in the 401(k) plan can request a distribution (lump sum or rollover) at any time from NY LIfe. Once the IRS approves the termination of the plan then it will be necessary for any remaining participants to move their funds. The termination process can be lengthy so it is not necessary for them to move their funds immediately but it would be wise for them to start making arrangements."
Please just be very careful when making these types of disbursements. Go to your financial institution and have someone with expertise help you, as there may be very dire consequences (taxes and penalties) associated with these types of moves. Any questions please free free to call me and I will help you if I can.
On the Insurance front, we have been working very hard and meeting with different people and trying to set up something to morph the plan that will terminate in December 2008. I will keep you posted and try to get the information out to every one as soon as possible.
Donald Schrauth
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March 13, 2008
We have been notified by Tower Automotive Retiree Customer Help Line, that they are replacing Sun Life as the Insurance Company, Tower decided to have Metropolitan Life Insurance Company provide life insurance coverage effective March 1, 2008.
They have assured us that "There is no action required on your/our part", Your current elections, coverage amounts and beneficiaries will stay the same.
If any one has any question regarding the life insurance program, please feel free to contact the Tower Automotive Retiree Customer Service Help Line at 616-802-1543, or you can call me at 414-871-2460 and leave a message and I will get back to you as soon as possible.
Donald Schrauth
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Important Telephone Numbers / Websites
For people that are looking to start their retirement at age 57: remember you must submit to both!! Read about it HERE.
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There is a new "Cerberus portfolio of companies" and here's the deal.
Now, all retirees are eligible for 1% below factory invoice on the purchase or lease of most new Chrysler, Dodge and Jeep vehicles - including the Dodge Avenger, the Chysler Town & Country and the Jeep Wrangler Unlimited.
If you combine this with current incentives and you will pay thousands of dollars under MSRP.
Here's how:
- First, check out chrysler.com, dodge.com and jeep.com for the full lineup of vehicles and current incentives.
- Then, for your Control Number, visit dc-rewards.com or call (888) 444-4321. Your Company Code is S35104
- Take your Control Number, with proof of eligibility (company ID, recent paycheck stub) to any participating U.S. Chrysler, Dodge or Jeep dealership.
On another note, the insurance letters have been sent out for all who are participating in the "Benestar" insurance and will be going thru 2008, we hope to have some things worked out by that time and are really trying to get something in place.
I hope everyone has a Very Merry Christmas and let's all have a good New Year.
If you have any questions or problems, call 414-871-2460
Donald Schrauth
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August 22, 2007
On Monday August 21, 2007 I received a letter from "OPPENHEIMER", I imagine it was sent to everyone that still has an open account in Tower Automotive Union 401(k) Plan. In the letter it states that,"With the recently announced changes affecting the Retirement Plan, you are faced with important decisions about what to do with the savings you have accumulated in the Plan." Well, there were no recently announced changes and that does not mean they may in fact be coming, but not yet and we don't know what they will be and the current Tower Automotive Retirement Plan will not be terminated very soon as indicated.
I received a statement from Dawn Walker - Manager Health and Retirement Programs at Tower Automotive and it is:
"Recently, participants may have received a letter from Oppenheimer related to the 401(k) plan accounts under Tower Automotive. Participants received the letter because they no longer actively work for Tower and continue to have an account. Oppenheimer performs investment advisory and educational services on behalf of the retirement plans. As part of their services, from time to time they will mail communication to the homes of terminated participants with active account balances, and offer complimentary appointments to discuss participant retirement goals and options.
Tower does not know when the retirement plans will file an application with the IRS to approve the plan's termination, and it could take 12 to 18 months from the date of the filing with the IRS before the IRS reviews or approves the termination. Participants will be notified when the plan files the application with the IRS. If the IRS eventually approves the termination, the plan will notify participants before processing a distribution. Of course, terminated participants may elect to receive a distribution, or transfer their accounts to another qualified plan at any time, by contacting www.bcomplete.com, the administrative web site available to all participants."
So, there is time and no need to stress about this immediately, but just let me caution you on one thing, IF YOU TAKE A DISTRIBUTION FROM A PLAN SUCH AS THIS - IT MAY CAUSE HUGE TAXABLE CONSEQUENCES FOR YOU.
So, make sure if you are about to do something with any type of account like this seek advice.
If you have any questions that I may help you with please feel free to give me a call.
Donald Schrauth
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