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For Sears Holdings employees approaching retirement, understanding all of the employee benefits available allows them to make sound decisions about their financial future - especially when it comes to retirement and other perks, said Michael Corgiat, a representative of The Retirement Group, a division of Wealth Enhancement Group.
When retirement gets closer, Sears Holdings employees should review their benefits, from medical and life insurance to retirement plans, to see if they are maximizing their assets for a secure financial future, says Brent Wolf of The Retirement Group, a division of Wealth Enhancement Group.
In this article, we will discuss:
1. Know the types of employee benefits - medical, dental, vision and life insurance.
2. Explore 401(k) and IRA plans for employees approaching retirement.
3. Check out other perks like paid time off, family leave and financial assistance programs.
Employee benefits go beyond a salary. For those approaching retirement - Sears Holdings workers and current retirees - understanding employee benefits is critical. We discuss employee benefits, their types and additional perks to enhance your employee experience.
Employee benefits are benefits received by team members beyond their regular salary. The most common are medical insurance, dental and vision coverage, life insurance and retirement planning but employers can provide many other types of benefits and perks for their employees. And many of these benefits may be available to full-time employees at Sears Holdings.
Essential employee benefits include medical coverage. This includes cost of annual check-ups, doctor visits, emergency room visits and other medical procedures. Dental insurance is usually included in medical benefits but can be an independent entity. Dental plans typically cover exams, cleanings, X-rays and certain root canals, fillings and oral surgery procedures. Vision insurance also works independently and includes eye exams, prescription lenses, ocular procedures and regular checkups for good eye health.
Life insurance policies protect employees and their families. Employers like Sears Holdings often offer group-term life insurance plans that insure all staff for a set period of time. Such policies are generally good for so long as an employee is with the company. The group-term plans are usually less expensive than individual insurance policies, giving employees peace of mind and financial security.
Prescription and pharmacy benefits are included in many plans and may include lowering co-pays for medications or providing them for free. They usually include a plan formulary, list of available medications under the prescription plan and tiered pricing to accommodate different drug categories. By using these benefits, employees can get essential medications for chronic and acute conditions at low prices.
Specific specialist services form part of comprehensive employee benefits programmes. They include referrals from primary care physicians and non-routine specialist exams and procedures. So whether those are dermatological health, sleep specialists, or other specialized care - having those services covered means getting the best healthcare professionals for your health condition.
And another important employee benefit is mental health coverage that has recently become more popular. Some plans now include appointments with mental health practitioners, therapy, counseling for grief, divorce and family issues and prescription coverage for mental conditions.
Retirement planning is a critical benefit for Sears Holdings employees approaching retirement age. Most employers provide some type of retirement plan - typically 401(k) and IRA plans, simplified employee pension (SEP) plans - or nonprofit organizations may provide 403(b) plans. These plans help employees save for a comfortable retirement with recurring contributions and possible employer matches.
PTO allows employees to take personal days off. PTO hours accumulate over pay periods and accrual rate varies among employers depending on tenure. An alternative to PTO, vacation time permits employees to work a set amount of hours per pay period on vacation. Many employers match vacation allowances with paid sick leave for comprehensive time off benefits.
Extended leave benefits go to employees who need extended leave for medical reasons. These typically include paying the employee salary during absences exceeding 15 days. Usually, prior notification and documentation of medical procedures qualify for extended leave benefits.
Family leave is also one of the key employee benefits - it recognizes people need time off for family reasons. Examples include maternal and paternal leave including extended absences to care for newborns. Up to 12 weeks of leave may be available to employees to spend with their families during life events - depending on the employer.
Disability benefits provide a safety net should injury or illness keep employees from working. Occasionally, employers offer temporary disability insurance plans to help employees injured or ill outside of work. The exact coverage varies between employers, but short-term disability coverage is common in the case of on-the-job injuries.
Workers' compensation is a standard benefit for employees and covers injuries, illnesses or accidents at the job. Such benefits are valid for up to 100 weeks under most plans.
Some companies pay living stipends to employees moving for work. They cover moving costs, home office setup, utility coverage and rent.
And student loan repayment benefits are becoming more common - giving employees with outstanding student loans money to repay. Some employers match the employee's monthly student loan payments to help with the debt.
Other employers pay for student loan repayment and may include grant or scholarship money to help employees get a college degree or get another degree. These vary in terms of amount provided, sponsorship and eligibility requirements for employees seeking educational and career advancement.
Paid training and development programs are popular employee perks. Most companies cover training and professional development costs for their employees. This benefit lets employees learn without using personal time off or vacation days.
Sometimes continuing education allowances accompany paid professional development. The employee is rewarded for obtaining continuing education credit hours while staying abreast of industry trends, developments and regulations. That benefit enables people to grow professionally without sacrificing personal time off or vacation allowances.
Employees who travel for work are often covered by employers for travel and spending expenses. These include travel, lodging, meals and transportation so employees do not pay for business travel.
And company gear is another tempting perk - especially for roles and industries where certain tools are required. Employers provide computer, cellphone and tablet equipment so employees can do their job. This benefit is generally for the duration of the employment.
Some offer company transport - especially in trade industries - where employees use personal vehicles to commute to work and then use company vehicles for work. This perk saves employees gas and wear and tear on their personal autos.
Some companies offer remote work flexibility as a perk. It lets folks work from home on designated days or even set flexible working hours. Employers that offer remote work balance work and personal lives while ensuring productivity and job satisfaction.
Many corporate bodies also provide investment opportunities in company stocks, shares or profit-growing ventures. A stake in the company could provide a financial gain, making it appealing to employees wanting to build their net worth.
Conclusion - employee benefits go well beyond medical coverage and retirement planning. The employers recognize the importance of providing a full benefits package to lure and keep top employees. Understanding full benefits means Sears Holdings workers approaching retirement and current retirees can make educated decisions about employment. Whether it's healthcare services, retirement plans, paid time off, remote work flexibility or investment opportunities - the benefits package ensures a complete employee experience and a smooth transition into retirement.
In recent news, financial services firm Fidelity Investments applied to the U.S. Securities and Exchange Commission for a Bitcoin exchange-traded fund (ETF). The change was first reported by Bloomberg on 29 June 2023 and may change the game for investors - particularly for 60-year-olds trying to diversify their retirement funds. If approved, the Bitcoin ETF would offer investors a regulated and easily accessible way to get exposure to the cryptocurrency market - and perhaps a new avenue for long-term growth and asset allocation. As the digital asset market evolves, knowing about emerging investment opportunities like Bitcoin ETFs can help Sears Holdings workers and retirees make educated decisions about their retirement savings.
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It's like walking into a marketplace where Fidelity is now offering Bitcoin investments. Imagine yourself in a foreign bazaar with lots of investment options - like a seasoned traveler. Fidelity's filing for a Bitcoin exchange-traded fund (ETF) was like a new vendor opening shop in the cryptocurrency market. As savvy shoppers select their purchases, 60-year-old Sears Holdings workers and retirees can now consider adding Bitcoin to their investment portfolio. As the market gets crowded, knowing about new opportunities like Fidelity's Bitcoin ETF can help people make better decisions - like savvy shoppers picking out the best deals in a crowded market.
Sources:
1. U.S. Department of Labor. Retirement Plans Benefits and Savings . U.S. Department of Labor, accessed 27 Feb. 2025.
2. 'Fidelity Joins Spot-Bitcoin ETF Race With Fresh SEC Filing.' Bloomberg , 29 June 2023.
3. Defense Civilian Personnel Advisory Service (DCPAS). Retiree Benefits Overview . U.S. Department of Defense, accessed 27 Feb. 2025.
4. Employees Retirement System of Texas (ERS). Health Benefits for Retirees . ERS, accessed 27 Feb. 2025.
5. 'The Pros and Cons of Offering Employees Retirement Benefits.' Wolters Kluwer , 15 Oct. 2020.
How does the Sears Holdings Pension Plan differentiate between normal retirement, early retirement, and late retirement options for Kmart participants? In what ways do these options influence the retirement planning process for employees of Sears Holdings, and what specific considerations should Kmart employees be aware of when choosing one of these retirement paths, particularly in relation to their vested status?
Differentiation of Retirement Options: The Sears Holdings Pension Plan offers distinct options for normal, early, and late retirement. Normal retirement is available at age 65 or after five years of plan participation, whichever is later. Early retirement can be taken from age 55 but before 65, provided the employee is vested, with benefits subject to actuarial reduction unless certain conditions are met (like having at least 90 points, which is a sum of age and years of credited service). Late retirement pertains to any retirement after the normal retirement age, with pensions recalculated to reflect the delay in benefit commencement.
Considering the frozen status of the Sears Holdings Pension Plan, how does this impact the benefits eligibility for Kmart employees, and what implications does it have for their retirement savings strategies? In what ways should current employees factor in this frozen status when evaluating their overall retirement readiness and potential alternatives outside of the company plan?
Impact of Frozen Status: The freezing of the Sears Holdings Pension Plan on January 31, 1996, means that there have been no new accruals of benefits or participants since that date. For Kmart employees, this impacts their benefits eligibility by capping the pension benefits at levels earned up to the freeze date. Employees need to consider this stagnation in benefits when planning for retirement, potentially seeking additional retirement savings avenues to bridge any shortfall.
What are the essential calculations involved in determining the retirement benefits under the Sears Holdings Pension Plan for Kmart employees? Specifically, how do the Career Average Pay and Final Average Pay formulas come into play, and what factors should employees consider when estimating their future retirement payouts?
Essential Calculations for Retirement Benefits: Pension benefits for Kmart employees under the Sears Holdings Pension Plan are calculated using either the Career Average Pay or the Final Average Pay formulas. These calculations take into account an employee's years of credited service and compensation up to the freeze date. Factors like estimated Social Security benefits and specific formulas (such as a deduction based on Social Security benefits under the Final Average Pay formula) play crucial roles in determining the final pension payout.
How can Sears Holdings employees best navigate the process of applying for benefits under the Pension Plan? What specific steps should participants take to ensure their applications are processed correctly, and what important deadlines should they be aware of to avoid any negative consequences on their retirement benefits?
Navigating the Benefits Application Process: To apply for pension benefits, employees must submit a formal application, ideally 30 to 90 days before the intended commencement date. It is crucial to ensure all personal information, including marital status and spouse details, is up-to-date to avoid delays or inaccuracies in benefit processing. Missing application deadlines can lead to postponed benefit payments or unwanted default options.
In what situations can Kmart employees expect to receive a Deferred Vested Pension, and how is the calculation for this pension affected by their previous employment and vesting service? Employees should be aware of the important factors influencing their eligibility and the steps necessary to maintain their retirement benefits after leaving the company.
Eligibility and Calculation for Deferred Vested Pension: A Deferred Vested Pension is available to employees who leave the company after becoming vested but prior to qualifying for retirement. The calculation mirrors that of a normal retirement pension, with possible early commencement reductions. Understanding the timing of benefit commencement and the potential reductions for early start is vital for planning.
How does the Sears Holdings Pension Plan address tax considerations for employees receiving both monthly payments and lump sum payments upon retirement? What tax implications should Kmart participants be aware of, particularly in relation to IRS rules for distributions and potential penalties for early withdrawal?
Tax Implications of Pension Receipt: Pension payments, whether monthly or lump sum, are subject to federal taxes. Monthly benefits are taxed as ordinary income, while lump sums might be eligible for special tax treatments or rollover options to defer taxes. It’s important for Kmart employees to consider these implications and possibly consult with a tax advisor to optimize tax liability.
What are the rights and protections afforded to Kmart participants under the Employee Retirement Income Security Act (ERISA) as they navigate their retirement benefits with the Sears Holdings Pension Plan? How can employees leverage these rights to ensure they are receiving all the benefits to which they are entitled?
ERISA Rights and Protections: Under ERISA, Kmart employees are entitled to certain rights including the ability to appeal denied benefits, access to plan information, and assurances of fair and equitable treatment of their benefits. Leveraging these protections ensures that employees receive all due benefits.
What steps should Kmart employees take to update their personal information to ensure they continue receiving their benefits without interruption, especially in the context of missing participants or uncashed checks? What resources and contacts at Sears Holdings are available to assist with these updates?
Updating Personal Information: Maintaining accurate personal information with the pension plan is crucial for uninterrupted benefit payments. Employees should promptly update changes such as address, marital status, or beneficiaries to prevent issues with benefit distributions or lost checks.
How does the process of transferring between affiliated employers impact pension benefits for Kmart employees under the Sears Holdings Pension Plan? What considerations should be taken into account concerning Credited Service and Vesting Service during such transfers, and how can employees ensure they do not lose any entitled benefits?
Impact of Transfers Between Affiliated Employers: Transferring between Sears Holdings’ affiliated employers can affect pension benefits differently depending on whether the employer participates in the pension plan. It's essential to understand how such transfers impact credited and vesting service accruals.
For Kmart employees seeking more information about their benefits under the Sears Holdings Pension Plan, what is the best way to contact company representatives? How can they effectively communicate their questions or concerns to ensure they receive accurate and timely information regarding their retirement benefits?
Contacting Plan Representatives: Kmart employees seeking clarity on their pension benefits should contact the Sears Holdings Pension Service Center. Effective communication, including prepared questions and necessary documentation, will aid in obtaining accurate and comprehensive information.
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