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Howmet Aerospace Pension Planning: What Happens to Your Benefits After You Pass Away

Healthcare Provider Update: Healthcare Provider for Howmet Aerospace Howmet Aerospace employees typically access healthcare services through a variety of insurance plans facilitated by their employer. Currently, major providers for companies like Howmet may include plans from national insurers such as UnitedHealthcare, Anthem (Elevance Health), and Cigna, although specific details may vary based on location and plan offerings. Potential Healthcare Cost Increases in 2026 As we approach 2026, Howmet Aerospace employees, like many others across the nation, face significant concerns about rising healthcare costs. Health insurance premiums, particularly for Affordable Care Act (ACA) marketplace plans, are projected to surge, with some states expecting hikes exceeding 60%. This rise is attributed to higher medical costs, the expiration of enhanced federal premium subsidies, and aggressive rate increases from insurers, potentially leading to out-of-pocket premium costs that could soar by 75% for many policyholders. For Howmet employees, these changes could mean a drastic adjustment in their healthcare budgeting as they navigate an increasingly challenging insurance landscape. Click here to learn more

'Howmet Aerospace employees should regularly review their pension type, payout elections, and beneficiary designations to help align retirement income with long-term family goals and avoid unintended consequences for heirs.' – Brent Wolf, a representative of The Retirement Group, a division of Wealth Enhancement.

'Howmet Aerospace employees who understand the differences between DB and DC plans, along with the impact of survivor benefits, are better positioned to make informed decisions that can support both their retirement needs and their legacy goals.' – Brent Wolf, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article we will discuss:

The differences between Defined Benefit (DB) and Defined Contribution (DC) pension plans.
How survivor benefits and payout options work for spouses and other beneficiaries.
What happens to pension and retirement account funds if no beneficiary is named or upon the retiree’s death.

When planning for retirement, many people focus on growing income while they are living. Yet, understanding what happens to your Fortune 500 pension after your death is equally important. The type of plan you have, the payment method you choose, and whether you have named a beneficiary will determine if—and to whom—your benefits can be passed on.

Social Security survivor benefits operate under different rules and are separate from pensions. This discussion focuses on workplace and private pensions, which often include survivorship clauses that, if structured properly, can provide continued financial support to loved ones.

The Two Main Types of Workplace Pensions

Defined Benefit (DB) Plan

A DB plan promises a specific monthly payment at retirement, calculated based on factors like years of service and salary history. Fortune 500 is responsible for making sure the plan is funded and bears the investment risk. These are sometimes called “final salary” or “traditional pensions.”

Defined Contribution (DC) Plan

In a DC plan, you, Fortune 500, or both contribute to your account. The final retirement amount depends on contributions and investment performance. You manage the investment risk, and income is determined by your withdrawal plan and account balance. Examples include 401k, 403b, and 457 plans.

Passing on Defined Contribution Benefits

In most cases, DC plans are straightforward to pass on. If you die before using the full balance, your named beneficiary inherits the remaining amount. Under the SECURE Act, most non‑spouse beneficiaries must withdraw the full balance within ten years, while spouses often have rollover flexibility. If you have no beneficiary listed, the balance may go to your estate, potentially increasing taxes and delaying access.

Defined Benefit Payment Choices for Married Retirees

Federal law generally requires a Qualified Joint and Survivor Annuity (QJSA) as the default payout form for married DB plan participants unless the spouse consents to another choice. This makes sure your spouse continues to receive income after your passing.

Common DB payout options include:

Joint and Survivor Annuity: You receive lifetime payments; your spouse continues to receive a percentage (generally 50%, 75%, or 100%) for life after your death.
Life with Period‑Certain Annuity: You get lifetime payments, and your spouse or beneficiary receives payments for the remainder of a guaranteed term if you pass first.
Guaranteed Minimum Payment: Provides a fixed number of total payments; any remaining payments go to your spouse if you pass away early.
Joint and Contingent Survivor Annuity: Allows a beneficiary other than your spouse (with spousal consent) or a custom continuation percentage.

If You’re Single and Considering a Lump Sum

For single retirees without dependents, a lump sum payout may be preferable to an annuity, as many single‑life annuities stop payments at death.

Benefits of lump sum payouts:

Investment control is in your hands.
Ability to name heirs for remaining funds.
Potential to roll over to an IRA for tax deferral.
Risks of lump sum payouts:
Mismanagement could deplete funds too soon.
Investment returns are not assured.

When No Beneficiary Is Named

If a DB single‑life annuity is chosen, payments stop upon death. With a term‑certain annuity, any remaining guaranteed payments may go to your estate. In a DC plan, the balance may default to your estate, possibly leading to probate delays and less favorable tax treatment.

If Death Occurs While Receiving Benefits

For DB plans, your chosen payment option and beneficiary designation determine what happens. Single‑life annuities end immediately; joint‑life annuities continue to pay the surviving spouse. Period‑certain options pay beneficiaries for the rest of the guaranteed term. For their part, DC plans transfer the remaining balance to the beneficiary, with non‑spouse heirs generally required to withdraw within ten years.

Key Takeaways for Fortune 500 Employees

Regardless of whether you have a DB or DC plan, planning ahead is essential:

- Keep beneficiary information current.
- Understand how payout options affect survivor benefits.
- Be aware of tax rules for inherited pensions and retirement accounts.
- Seek professional guidance before making irreversible decisions.

By making informed choices, you can make sure your Fortune 500 pension serves both your retirement needs and the legacy you want to leave for loved ones.

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Sources:

1. Employee Benefits Security Administration. What You Should Know About Your Retirement Plan . U.S. Department of Labor, n.d. pp. 6, 9–10, 21–22, 32.

2. Internal Revenue Service. Publication 590-B: Distributions from Individual Retirement Arrangements (IRAs) . IRS, 19 Mar. 2025, pp. 7–12, 9–10.

3. Social Security Administration. Survivors Benefits . Social Security Administration, Apr. 2025, pp. 5–6, 8–9, 10.

How can Howmet Corporation employees ensure that they are maximizing their pension benefits under the Howmet Salaried Employees Pension Plan? Are there specific contributions or actions that could enhance their benefits over the years of their employment with Howmet Corporation?

Maximizing Pension Benefits: To maximize their pension benefits, Howmet Corporation employees should focus on accumulating years of service and ensuring they meet the eligibility criteria for the highest percentage of compensation credits under the pension plan. Employees should review their benefit statements regularly, especially considering how age and years of service affect their pension accrual. Consulting financial advisors or using Howmet's retirement planning tools can also aid in making strategic decisions about retirement timing and additional personal savings to complement their pension(Howmet Corporation_July…).

In what situations might employees at Howmet Corporation find themselves ineligible for pension plan benefits? What steps should they take, if they suspect they fall into such categories, to clarify their eligibility status?

Ineligibility for Pension Benefits: Employees at Howmet Corporation might be ineligible for pension benefits if they are not classified as salaried employees hired before January 1, 2002, or if they leave the company before accruing sufficient vesting service (three years or more). If employees believe they fall into a category of ineligibility, they should contact the plan administrator or consult HR to clarify their status, especially regarding vesting service(Howmet Corporation_July…).

Given the complexities of the Howmet Corporation Pension Plan, what resources are available for employees to understand their pension calculation, and how can they access such resources through Howmet Corporation?

Understanding Pension Calculation: Employees can access resources like the Your Benefits Resources (YBR) platform or call 1-888-ALCOA123 for assistance in calculating their pension benefits. These tools offer detailed projections and estimates based on individual account balances, years of service, and compensation, allowing employees to plan for retirement effectively(Howmet Corporation_July…).

With the elder workforce approaching retirement, how does the Howmet Corporation Pension Plan accommodate early retirees, and what factors should employees consider when deciding the optimal time to retire?

Early Retirement Considerations: The Howmet Corporation Pension Plan allows early retirement starting at age 55, with a reduced benefit. Employees should weigh the impact of reduced payments against their financial needs and Social Security options. Additionally, delaying retirement can increase benefits significantly. Employees should use the available calculators and consult financial advisors to determine the optimal retirement age(Howmet Corporation_July…).

What are the specific implications of the Internal Revenue Service (IRS) limitations for Howmet Corporation employeesâ€™ pension benefits, and how might these changes affect future retirement planning?

IRS Limitations and Future Planning: IRS limitations affect pension benefits by capping the maximum benefit amount that can be received, which for defined benefit plans is subject to annual adjustments. Employees nearing high compensation levels should consider how these caps might limit their pension payouts and integrate personal savings strategies, such as 401(k)s or IRAs, into their overall retirement plan(Howmet Corporation_July…).

How does the Howmet Corporation Pension Plan protect employees' rights under ERISA, and what recourse exists for employees who believe their rights have been violated during the pension application process?

ERISA Protections: The Howmet Corporation Pension Plan is governed by the Employee Retirement Income Security Act (ERISA), ensuring that employees' rights are protected. If employees believe their rights have been violated during the pension application process, they can file a claim with the Benefits Management Committee and, if necessary, pursue an appeal or legal recourse under ERISA(Howmet Corporation_July…).

For Howmet Corporation employees planning their estates, how essential is it to name beneficiaries in the pension plan, and what process should they follow to ensure that their beneficiaries are correctly registered?

Naming Beneficiaries: It is essential for Howmet Corporation employees to name beneficiaries for their pension plan, especially to ensure that survivor benefits are properly allocated. Employees can update beneficiary information through the YBR platform or by submitting the appropriate forms to HR. Spousal consent is required if designating a non-spouse beneficiary(Howmet Corporation_July…).

Howmet Corporation employees often have questions regarding survivor benefits. What provisions does the Howmet Pension Plan have in place for surviving spouses, and how do these benefits differ based on the employee's marital status at retirement?

Survivor Benefits: The Howmet Pension Plan offers survivor benefits, which provide ongoing payments to a spouse or designated beneficiary. For married employees, the default option is a joint and survivor annuity, which ensures a percentage of benefits continues for the surviving spouse. Single employees can designate other beneficiaries, but should review their options carefully to ensure proper coverage(Howmet Corporation_July…).

What are the essential milestones employees of Howmet Corporation should be aware of regarding vesting service under the pension plan, and how does this vesting impact their eventual payout?

Vesting Milestones: Employees become vested in the Howmet Pension Plan after completing three years of service or reaching age 65. Once vested, employees have a right to receive pension benefits even if they leave the company before retirement age. Knowing these milestones helps ensure employees fully benefit from their time at Howmet(Howmet Corporation_July…).

If Howmet Corporation employees have further questions regarding their benefits as detailed in the document, what steps should they take to contact the plan administrator, and what information will they need to provide for personalized assistance?

Contacting the Plan Administrator: Employees with further questions about their pension benefits should contact the plan administrator through the YBR website or by calling 1-888-ALCOA123. Employees will need their Social Security number, date of birth, and user ID to access personalized assistance(Howmet Corporation_July…).

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

Restructuring and Layoffs: In early 2024, Howmet Aerospace announced a restructuring plan aimed at improving operational efficiency. This plan included layoffs impacting approximately 2% of their workforce. The restructuring is part of their broader strategy to streamline operations and enhance profitability in a challenging economic environment. The importance of addressing this news lies in its impact on employees and the company's operational effectiveness amid current economic uncertainties.

Howmet Aerospace provides stock options and RSUs to eligible employees as part of their compensation package. For 2022, 2023, and 2024, the company offers these benefits to key employees, executives, and directors. Specific plans and eligibility criteria are outlined in their annual reports and proxy statements.

Healthcare Terms/Acronyms: HSA (Health Savings Account): Offers tax-advantaged savings for healthcare expenses. FSA (Flexible Spending Account): Allows employees to set aside pre-tax income for eligible expenses. HDHP (High Deductible Health Plan): A health plan with lower premiums and higher deductibles. Health Benefits Overview: Howmet Aerospace provides comprehensive health insurance options including medical, dental, and vision coverage. They offer both HSA and FSA options, alongside a range of wellness programs. Additional benefits include employee assistance programs and telemedicine services.