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Enroll – If you are enrolled you should be receiving our emails directly, otherwise click here to enroll. Enter contact information. In “Name of Retiree Association or Chapter” window, scroll down to “NRLN DuPont Retirees Chapter” near the bottom. Click on box to “Receive NRLN Emails” and then click on the “SIGN ME UP” window.


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Welcome current and future DuPont retirees –The NRLN (National Retirees Legislative Network) is a nationwide organization that advocates for federal legislation to protect retiree benefits including pensions, company provided healthcare, Social Security, Medicare, and lower prescription drug costs. We started this DuPont Retirees Chapter (DRC) due to concerns about the long-term security of our underfunded pension plan. With our email utility delivering key documents to our members directly, and with this webpage, we strive to be a key communication mechanism on retiree issues, as DowDuPont carries out a plan to split into three smaller companies.
Please review our communications on pension and other retiree issues in the left column below. The most current notes are always visible, while older communications are archived in reverse chronological order. The right column below is a repository of pertinent media articles about the merger and pension issues. We hope that you will review the wealth of information on our DRC page, as well as on the NRLN homepage.


Feel free to comment or ask questions by emailing Jim Odle, Chapter President at odlejk@gmail.com

Useful Links for DuPont Retirees: Retiree website - http://www.retiree.dupont.com/     DowDupont Investor Relations - http://www.dow-dupont.com/investors/default.aspx


DUPONT PENSION SECURITY COMMUNICATIONS

View Archived Communications
DRC history and activities; current and archived communications with DRC Membership and Corporate Management concerning pension security


April 9, 2021
To: NRLN DuPont Chapter Members and other DuPont Retiree Groups
From: Paul Kende
Subject: Loss of Retiree Benefits

As Jim Odle and I indicated in our January note, we would contact Corteva Management to express our concerns about the benefit cuts and make some recommendations to mediate their impact. With inputs from a small group of retirees, I have done this, and had several very open and constructive conversations with Jim Collins, Corteva’s CEO and Mark Durkovic, a senior manager, responsible for Corteva’s global benefit strategy. As promised, a brief summary of these discussions follow.

Life Insurance – I suggested that Corteva should ensure full portability of the retirees current Group Term Life Insurance policies, even if participants have to assume all premium payments. The goal should be to port to a new policy, still administered by Corteva, without required medical examination, or age limit, fixed death benefit, and premiums at group rates, no higher than currently paid to the carrier. Based on Mac Cunningham’s comprehensive survey discussions with about a dozen insurance carriers, Mac and I identified two likely candidates, in addition to Securian, our current carrier, for Corteva to evaluate. Management not only considered our inputs, but were already in discussion with Securian about portability and convertibility of our current coverage. Discussions are still underway, and I cannot be sure what, if anything, actually develops, but I believe that Corteva is seriously pursuing the options for each of us to replace our Corteva insurance coverage, effective January 1, 2022. Details of the options should be included in the next communication from Corteva expected in early June.

Health Reimbursement Arrangement (HRA) – I suggested offsetting the elimination of the $200 dental allowance, by an appropriate increase in the medical allowance. Surprisingly, up to 30% of Corteva participants don’t actually utilize all of their HRA allowance. Corteva has benchmarked its benefit coverage and determined that it is close to the median of the 500 other companies Via Benefit serves. Based on these factors, Corteva will likely not raise the HRA Medical allowance.

Other suggestions – involving 1) paying benefits from a trust account, rather than operating expenses, and 2) an increase in pension payments to offset losses: these were considered by Management, but currently these would not be their priority for the use of any excess available cash.

Communications – I have proposed establishing a “voice of the retirees”, or a “sounding board” mechanism and a more regular, 2- way communications between management and retirees, to provide retiree perspectives, on issues and decisions concerning us.

Pension Plan Financial Status – Capital Markets have performed well in the first part of this year, and in combination with higher discount rates have likely improved the overall funded status. However, funding levels to be reported in the April Annual Funding Notice, will probably remain about the same as last year’s, because the AFN does not cover the current calendar year.

The stimulus plan, just passed by Congress, specifies a “5% floor” for discount rate calculations, by Pension Plan sponsors, billing it as protection for pensioners. I believe this is misleading, because sponsors generally want higher discount rates, not lower, in order to be able to calculate lower present values for future obligations, showing smaller Asset-Obligation gap, resulting in lower required Plan contributions.

The Board of Directors, Management and the Pension Investment Committee monitor and manage Pension Plan investment, funding, and contributions closely. Currently, Corteva has external actuaries analyzing the impact of the new legal requirements on funding requirements for the Pension Plan.

Activist Investor – you are all probably aware of Starboard Value’s pressure on Corteva’s management to increase profitability, and to put some of their people on the BOD. The article referenced by the link, https://delawarebusinesstimes.com/news/corteva-starboard-appointments/ would provide an update on the current situation.

We have no information to suggest that the benefits cuts announced by Corteva have any direct connection to Starboard’s actions or opinions. Jim Odle has informally surveyed other corporations and we need to recognize the general trend to reduce retiree benefits. Unfortunately, we may not be able to count on politicians, as they are not willing to deal with retiree issues, like underfunded Pension Plans, or the looming financial problems with Social Security and Medicare.

Feel free to email with questions or comments.

Regards to all............paul

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DUPONT AND CORTEVA IN THE NEWS

Media articles about DuPont and DowDuPont retiree benefits and corporate restructuring. Some publications may require subscriptions, and/or login for unlimited viewing



Opinion: Why DuPont de Nemours (DD) is Poised to Beat Earnings Estimates Again
From Zacks Equity Research; Nasdaq ~ Apr 13, 2021

Corteva Agriscience creates new Carbon and Ecosystems Services portfolio
By “Staff”; Successful Farming ~ Apr 08, 2021

DuPont inks $2.3B acquisition of materials company
By Jacob Owens; Delaware Business Times ~ Apr 03, 2021

Corteva Agriscience forms agreement with Ginkgo Bioworks to bolster crop protection technologies
By “Staff”; Successful Farming ~ Apr 01, 2021

Opinion: Is DuPont de Nemours (DD) A Smart Long-Term Buy?
By Jose Karlo Mari Tottoc; Yahoo!Finance ~ Mar 29, 2021

Alleged fraud drains Abbott retiree’s 401(k); plan’s administrator facing federal probe into unauthorized distributions
By Robert Channick, Chicago Tribune, April 10, 2020

Corteva Agriscience Recognized as Manufacturing Leadership Award 2021 Winners
By Corteva Agriscience; WFMZ ~ Mar 24, 2021

Corteva averts proxy fight with board appointments
By Jacob Owens; Delaware Business Times ~ Mar 19, 2021

DuPont inks $2.3B acquisition of materials company
By Jacob Owens; Delaware Business Times ~ Mar 08, 2021

What To Know Before Buying Corteva, Inc. (NYSE:CTVA) For Its Dividend
Simply Wall St ~ Mar 12, 2021

DuPont to Acquire Laird Performance Materials from Advent International
PR Newswire ~ Mar 09, 2021

DuPont awarded grant from Singapore’s National Water Agency to increase sustainability of desalination
WaterWorld ~ Mar 04, 2021

Opinion: Is Corteva Stock a Buy Right Now?
By Lee Samaha; The Motley Fool ~ Mar 04, 2021

DuPont Water Solutions and Waterise Collaborate Toward Sustainable Subsea Desalination
By DuPont ; WFMZ ~ Mar 04, 2021

DuPont Names Christopher Raia Chief Human Resources Officer
Via DuPont; PR Newswire ~ Mar 02, 2021

  Suggestions and comments about this website should be addressed to webmaster@nrln.org. Last updated: April 14, 2021