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Berkshire hathaway Employees Weighing Oklahoma: Lower Costs, Lower Taxes, and a Different Kind of Retirement

Healthcare Provider Update: Healthcare Provider for Berkshire Hathaway: UnitedHealth Group Blog Post Paragraph on Potential Healthcare Cost Increases in 2026: As we look toward 2026, Berkshire Hathaway employees and many others in the United States may face significant challenges with healthcare costs. Current projections indicate that average premiums for Affordable Care Act (ACA) marketplace plans could rise sharply, with some states experiencing increases of over 60%. This surge is largely attributed to the possible expiration of enhanced federal subsidies, alongside escalating medical costs driven by factors such as expensive medications and hospital services. Experts warn that without renewed subsidies, millions of consumers could see their premiums more than double, putting healthcare access at risk for a substantial portion of the population. Consequently, proactive steps to manage these anticipated rises, such as optimizing health plan selections and maximizing health savings accounts, will be essential for both employees and employers alike. Click here to learn more

'Berkshire hathaway employees weighing a move from California to Oklahoma should recognize that differences in state taxes, property values, and cost of living can influence how long their retirement savings last.' — Wesley Boudreaux, a representative of The Retirement Group, a division of Wealth Enhancement.

'Berkshire hathaway employees evaluating retirement options can benefit from comparing states like California and Oklahoma, where differences in taxation and living expenses may directly impact long-term financial stability.' — Patrick Ray, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article we will discuss:

How taxes in California and Oklahoma impact retirees and their income.
The differences in cost of living, property values, and daily expenses between the two states.
Programs and lifestyle considerations, such as Tulsa Remote and health care access, that may influence relocation decisions.

The thought of leaving behind California's vibrant cities, golden beaches, and Mediterranean-like climate may seem unthinkable to many residents. The state continues to draw attention from around the world because of its world-class amenities, varied cultural life, and natural beauty. However, California's growing cost of living, high state taxes, and skyrocketing housing costs have put a heavy financial burden on those on fixed incomes like Social Security and pensions. Some employees at Berkshire hathaway are therefore looking at alternatives that offer a more sustainable retirement way of life. Oklahoma is one place that is becoming more popular.

Due to advantageous tax laws, reduced housing prices, and even incentive programs like Tulsa Remote, hundreds of Californians have moved to Oklahoma in recent years. ¹ While Oklahoma may not be the best option for every retiree, there are sufficient financial differences between the two states that they should be carefully considered.

California versus Oklahoma Tax Comparisons

Retirement planning heavily relies on taxes, and there are significant disparities between California and Oklahoma. The tax code in California is particularly difficult for retirees who have several sources of income, according to Carlos Hernandez of Wealth Enhancement. Although Social Security benefits are not taxed in California, the state's progressive tax system applies to pensions, 401k contributions, and other retirement income. Rates can reach 12.3% for many taxpayers, while the highest incomes can pay up to 13.3%, ² which is the highest state income tax rate in the country.

In contrast, Oklahoma offers retirees 65 and older a $10,000 deduction on other types of retirement income in addition to exempting Social Security income from taxes. ³ Oklahoma's highest marginal income tax rate is 4.75%, ³ which is far lower than California's even without taking this deduction into account.

These differences can result in annual tax savings of thousands of dollars for seniors who receive both Social Security and pensions. Take, for instance, a person who receives $30,000 in Social Security benefits in addition to a $40,000 pension. The pension income would be subject to full state taxation in California. In Oklahoma, Social Security would be completely untaxed, $10,000 of the pension income would be exempt, and the remaining taxable pension amount would be subject to significantly lower rates. As a result, the tax burden is considerably lighter, giving the household budget more flexibility.

Cost of Living and Property Values

The financial equation consists of more than just taxes. The housing market in California puts additional financial strain on seniors, claims Kevin Won of Wealth Enhancement. California routinely has some of the highest property values in the country. The base property tax payment is still correlated with high market values, despite the fact that established safeguards like Proposition 13 restrict yearly increases in property tax assessments. The absolute cost is nevertheless high in comparison to national norms, even if householders 55 and older may relocate their tax base under specific circumstances. ⁴

The problem is made worse by insurance premiums. In California, plans that cover the danger of earthquakes or wildfires are not only costly, but they are also getting harder to obtain in high-risk locations.

The real estate market in Oklahoma paints a completely different picture. Compared to many California regions, the median home value is less than half. ⁵ Reduced property taxes are a direct result of lower property prices. Although Oklahoma does not provide tax-base transfers or unique senior exemptions like California does, retirees frequently still benefit from lower total valuations.

Additionally, Oklahoma benefits from a lower overall cost of living. Daily costs, such as groceries, utilities, and medical care, are often less than in California. Retirement savings can extend further thanks to the combined impact of lower housing, insurance, and daily expenses, which gives people greater flexibility in choosing their spending and lifestyle preferences.

Rewards Initiatives: Tulsa Remote

Tulsa Remote is one distinctive program contributing to Oklahoma's rising popularity. This program was started in 2018 with the goal of luring remote workers to Tulsa by providing cash incentives and opportunities for community integration. The program offers $10,000 to participants who agree to stay in Tulsa for a minimum of one year.

Over 60,000 applications have been submitted to Tulsa Remote since its launch, with almost 8,000 of those applications coming from California. ⁶ As a result, nearly 3,600 participants have relocated to Tulsa. ⁶ Despite focusing on working professionals rather than retirees, this program has helped spread awareness about Oklahoma's affordability and livability.

The Practical Financial Impact

The practical impact is better demonstrated by going over the previous financial case again. In California, a retiree with $40,000 in pension income and $30,000 in Social Security would pay high taxes; nevertheless, in Oklahoma, they would receive large benefits. Once the $10,000 exemption and reduced marginal rates are applied, the difference could result in yearly savings of thousands of dollars.

Beyond taxes, long-term financial consistency is strengthened by being able to buy a home for half as much, or less, than in many California markets. Over time, lower utility costs, lower insurance premiums, and overall cost-of-living reductions can add up to provide more discretionary income for leisure, travel, or building retirement stability.

In Conclusion

Although California is still a popular place to live, seniors are finding it increasingly difficult to keep up with the state's high taxes, high property values, and overall cost of living. Oklahoma is a strong alternative because of its low tax rates, $10,000 retirement income exemption, reasonably priced housing market, and lower cost of living.

According to a recent analysis, retirees in Oklahoma could maintain their financial resources for roughly 51 years with $1.5 million in savings and Social Security benefits, far exceeding the 24 years estimated in California. ⁷ This difference is primarily due to Oklahoma's significantly lower annual cost of living (about $29,666) ⁷ than to California's high expenses.

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Articles you may find interesting:

Sources:

1. MSN. ' Hundreds of Californians have been paid $10,000 to relocate to Oklahoma ,' by Hannah Fry. August 15, 2025.

2. Nerdwallet. ' California State Income Tax Rates and Brackets for 2024-2025 ,' by Sabrina Parys. June 5, 2025.

3. SmartAsset. ' Oklahoma Retirement Tax Friendliness .' 2025.

4. California State Board of Equalization. ' Transfer of Base Year Value for Persons Age 55 and Over - Propositions 60/90 .' 2025.

5. Forbes. ' Median Home Price by State ,' by Kiah Treece. July 29, 2025.

6. SF Gate. ' The surprising destination luring California transplants with $10,000 ,' by Tessa McLean. August 4, 2025.

7. CNBC. ' $1.5 million is the 'magic number' for retirement savings--here's how long it lasts in every U.S. state ,' by Mike Winters. Mar. 15, 2025.

How does the merger of the Johns Manville Employees Retirement Plan into the Berkshire Hathaway Consolidated Pension Plan specifically affect the retirement benefits for current employees at Johns Manville? In what ways can eligible employees of Johns Manville leverage the benefits of this merger to maximize their retirement planning?

Impact of Merger on Current Employees' Retirement Benefits: The merger of the Johns Manville Employees Retirement Plan into the Berkshire Hathaway Consolidated Pension Plan does not decrease the pension benefits previously earned by employees under their prior plans. Employees continue to receive the same benefits with the same payment options as provided by their prior plan. Any previous payment elections, beneficiary designations, and qualified domestic relations orders remain effective. This consolidation also maintains the insurance of pension benefits through the federal Pension Benefit Guaranty Corporation.

What are the implications for employees of Johns Manville if they choose to retire early prior to their Normal Retirement Age? How do the specific conditions set forth in the Berkshire Hathaway Consolidated Pension Plan guide early retirees from Johns Manville in making informed decisions regarding their benefit options?

Implications of Early Retirement: Employees of Johns Manville who choose to retire early, before their Normal Retirement Age, can still receive benefits. However, these benefits are adjusted based on the age of retirement. If an employee retires at 60, for instance, their monthly benefit payment from the plan will be reduced by a certain percentage for each month that the benefit payments start before the Normal Retirement Age. This reduction compensates for the longer period over which benefits are expected to be paid.

Given the unique characteristics of the Merged Plan, what should employees at Johns Manville consider when calculating their Average Final Salary, and how does this calculation impact their retirement benefits? Additionally, how is Covered Compensation factored into this adjustment, and what strategies can employees employ to ensure accurate calculations?

Calculation of Average Final Salary and Covered Compensation: When calculating the Average Final Salary for retirement benefits, it includes the highest-paid, five consecutive years out of the last ten years of employment. This calculation impacts the retirement benefits as it forms part of the formula used to determine the pension amount. Additionally, Covered Compensation, which refers to the average of the Social Security wage bases, is used to adjust portions of the salary in the benefits calculation, ensuring that the benefits align with national wage growth trends.

How can employees of Johns Manville navigate the various options available for retirement benefit payments outlined in the Berkshire Hathaway Consolidated Pension Plan? What key points should Johns Manville employees consider regarding the selection of forms of payment and potential tax implications in retirement?

Navigating Retirement Benefit Payment Options: Employees of Johns Manville need to consider the form of payment for their retirement benefits, as different options can have different tax implications and affect monthly income. Options typically include lump sums, annuities, or a combination. Employees should consider their financial needs, tax situation, and life expectancy when choosing the form of payment. Consulting with a financial advisor could be beneficial.

For employees at Johns Manville, what steps should they take to stay informed about their accumulated service and benefit service credits, particularly in relation to the changes brought about by the merger into the Berkshire Hathaway Consolidated Pension Plan? How do vested rights impact their eligibility for retirement benefits?

Staying Informed About Service Credits: To manage the transition and keep track of their service credits post-merger, Johns Manville employees should regularly review their service and benefit statements, maintain communication with the plan administrator, and attend any informational meetings or seminars offered by Berkshire Hathaway. Understanding how service credits are calculated and tracked ensures that employees can accurately plan for retirement.

What is the process for reemployment under the Terms of the Merged Plan for former employees of Johns Manville, and how can they ensure their accumulated benefit service is credited effectively upon rehire? What are the implications of this reemployment on their retirement benefits, particularly concerning their previous employment history?

Reemployment and Accumulated Benefits: Reemployed former employees of Johns Manville should verify how their accumulated benefits are treated upon their rehire. Generally, benefits accumulated during previous periods of employment will be credited upon rehire, but specific plan provisions should be consulted to confirm how reemployment affects accrued benefits and eligibility for additional benefits.

What do the terms of the Berkshire Hathaway Consolidated Pension Plan dictate regarding disability retirement benefits for eligible employees at Johns Manville? How should employees approach the application process for disability benefits, and what criteria do they need to be aware of to qualify?

Disability Retirement Benefits: Eligible employees of Johns Manville who become disabled according to the terms of the plan may qualify for disability retirement benefits. The process involves a determination by the plan administrator, and employees must meet specific criteria outlined in the plan documents to qualify. Understanding these criteria and the required documentation is crucial for accessing disability benefits.

How can employees of Johns Manville ensure they have adequate protection for their beneficiaries under the retirement provisions outlined in the Berkshire Hathaway Consolidated Pension Plan? What specific steps can employees take to secure these benefits, and how can they keep their beneficiary designations updated?

Beneficiary Protections: Employees should regularly review and update their beneficiary designations to ensure that their retirement benefits are distributed according to their wishes upon their death. This includes making any necessary changes following life events such as marriage, divorce, or the birth of a child.

How does participation in the Merged Plan differ for salaried and hourly employees of Johns Manville, and what specific eligibility criteria apply to each group? How can understanding these differences improve retirement planning for employees across the different classifications?

Differences in Participation for Salaried and Hourly Employees: The eligibility and benefits might differ between salaried and hourly employees under the Merged Plan. Understanding these differences helps employees make informed decisions about their retirement planning and benefit utilization.

How can employees of Johns Manville contact the Local Benefits Administrator for assistance regarding their retirement benefits and the contents of their plan documents? What are the recommended methods of communication for inquiries or requests regarding their Merged Plan benefits?

Contacting Local Benefits Administrator: Employees should contact their Local Benefits Administrator for any inquiries or assistance regarding their retirement plan. Keeping the contact information updated and consulting the administrator for guidance on plan provisions and benefit claims is advised for navigating their retirement benefits effectively.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

Berkshire Hathaway offers both a traditional defined benefit pension plan and a defined contribution 401(k) plan. The defined benefit plan provides retirement income based on years of service and final average pay. The 401(k) plan features company matching contributions and various investment options, including target-date funds and mutual funds. Berkshire Hathaway provides financial planning resources and tools to help employees manage their retirement savings.

Berkshire Hathaway has agreed to a $10 million settlement in a long-running pension dispute involving Acme Brick. The company continues to offer comprehensive retirement benefits, including a defined benefit pension plan and a 401(k) plan. In today's political climate, it is important to stay informed about these benefits.

Berkshire Hathaway does not typically offer RSUs or stock options as part of its employee compensation packages, focusing on other forms of financial incentives and benefits.