New Update: Healthcare Costs Increasing by Over 60% in Some States. Will you be impacted?

What eBay Employees Should Know About the Latest Fed Rate Cut

Healthcare Provider Update: Healthcare Provider for eBay eBay utilizes the services of multiple healthcare providers for its employees, typically engaging in partnerships with large, well-known insurers to provide comprehensive health plans. While specific details about eBay's current healthcare provider may vary, they have previously been associated with providers like UnitedHealthcare and Anthem. Potential Healthcare Cost Increases in 2026 As eBay prepares for 2026, it faces potential challenges due to steep healthcare cost increases. Premiums for Affordable Care Act (ACA) marketplace plans are projected to surge significantly, with some states seeing hikes over 60%. Factors contributing to this surge include higher medical costs, the likely discontinuation of enhanced federal subsidies, and aggressive pricing strategies from major insurers. As a result, employees may experience a dramatic rise in out-of-pocket healthcare expenses, with estimates suggesting increases could exceed 75% for many enrollees. This scenario underscores the importance for employers like eBay to strategize effectively in managing healthcare benefits amidst a turbulent market. Click here to learn more

'eBay employees should recognize that recent rate shifts underscore the importance of regularly reviewing retirement cash flow plans and adapting to evolving economic conditions, rather than waiting for perfect data to act.' — Michael Corgiat, a representative of The Retirement Group, a division of Wealth Enhancement.

'With the Federal Reserve adjusting rates despite limited economic data, eBay employees should view this as a reminder to stay proactive and flexible in planning long-term retirement income strategies.' — Brent Wolf, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article, we will discuss:

How recent Federal Reserve decisions could impact retirement and investment planning.
The effects of interest rate cuts and balance sheet policy changes on borrowing, savings, and markets.
How The Retirement Group can assist with navigating these economic developments.

Important Takeaways

The Federal Reserve lowered the federal funds rate by 25 basis points at its most recent October meeting, even though the federal government shutdown caused delays in releasing key economic data. This development may be particularly relevant for eBay employees who monitor economic trends for retirement and investment planning.

The benchmark federal funds rate was reduced to its lowest level since September 2022, and now ranges between 3.75% and 4.00%. ¹

Along with the rate cut, the Federal Reserve announced it would end its quantitative tightening (QT), or balance sheet reduction process.

These policy shifts may affect savings rates, short-term borrowing costs, and overall market behaviour—factors that could influence retirement decisions for eBay employees.

The Fed’s Decision Despite Limited Data

The Federal Reserve typically relies on government-issued economic data to support policy decisions. However, during the government shutdown, many federal reports—including updates on employment and payroll growth—were paused. A delayed Consumer Price Index (CPI) report showed ~3% inflation in September. But no new unemployment or payroll data was available after early September. ²

Despite limited data, the Fed acted based on viewpoints shared at its September meeting, when many members of the Federal Open Market Committee (FOMC) signalled further rate cuts before year-end, supported by prior trends.

Before the shutdown began, interest rate levels were considered “restrictive”—meaning high enough to slow economic activity—and earlier reports signalled weakening labor market conditions that could be meaningful to eBay employees.

What the Rate Cut Means for Consumers and Investors

While the Federal Reserve controls short-term interest rates, it does not directly set rates for mortgages, bonds, or certificates of deposit (CDs).

Typical short-term effects of a rate cut can include:

- Changes to prime rate-linked borrowing costs, such as adjustable rate mortgages, certain credit cards, and home equity lines of credit.
- Lower returns on short-term fixed income vehicles, like money market funds, short-term Treasuries, and CDs.
- Potential support for financial markets—particularly equities—depending on broader economic conditions, which may be relevant to eBay retirement accounts or company stockholders.

Changes to the Federal Reserve’s Balance Sheet Strategy

During the COVID-19 pandemic, the Federal Reserve used quantitative easing (QE) to aid markets by purchasing large quantities of Treasury and mortgage-backed securities.

In 2022, the Fed shifted to quantitative tightening (QT), reducing its holdings primarily by not reinvesting maturing securities.

At its latest meeting, the Fed announced it would fully end QT rather than simply slow it.

Although these balance sheet adjustments may not be immediately obvious in day-to-day life, they can affect liquidity in the financial system and lending conditions, which may indirectly influence eBay employees.

How The Retirement Group Can Assist

Understanding how interest rate cuts, inflation trends, and Federal Reserve policy affect your retirement savings can be challenging. The Retirement Group can help you review how these economic shifts may relate to pension options, investment income planning, and retirement strategies tailored to your situation. For help, you can reach us at (800) 900-5867.

Featured Video

Articles you may find interesting:

Sources:

1. nerdwallet. ' Fed Rate Drops for Second Time in 2025 ,' by Cara Smith. 21 Nov. 2025.

2. U.S. Bureau of Labor Statistics. ' Consumer Price Index ,' 24 Oct. 2025.

Other Resources:

1. Board of Governors of the Federal Reserve System. “Federal Reserve Issues FOMC Statement.” FederalReserve.gov, 29 Oct. 2025, https://www.federalreserve.gov/newsevents/pressreleases/monetary20251029a.htm .

2. Schneider, Howard. “Fed Lowers Rates, but Powell Suggests Move May Be the Last of 2025.” Reuters, 29 Oct. 2025, https://www.reuters.com/business/fed-in-fog-it-heads-toward-another-rate-cut-2025-10-29/ .

3. U.S. Bureau of Labor Statistics. “September 2025 CPI Release Rescheduled.” BLS.gov, 10 Oct. 2025, https://www.bls.gov/bls/092025-cpi-reschedule-notice.htm .

4. Ackerman, Andrew. “Consumer Prices in September Rise to a Pace Not Seen Since January.” The Washington Post, 24 Oct. 2025, https://www.washingtonpost.com/business/2025/10/24/delayed-inflation-report-tariffs/ .

5. Foster, Sarah. “6 Ways the Fed’s Interest Rate Decisions Impact Your Money.” Bankrate, 2025, https://www.bankrate.com/banking/federal-reserve/how-federal-reserve-impacts-your-money/

What type of retirement savings plan does eBay offer to its employees?

eBay offers a 401(k) retirement savings plan to its employees.

Does eBay provide a company match for contributions made to the 401(k) plan?

Yes, eBay provides a company match for employee contributions to the 401(k) plan, subject to certain limits.

What is the maximum employee contribution limit for eBay's 401(k) plan?

The maximum employee contribution limit for eBay's 401(k) plan is in accordance with IRS guidelines, which may change annually.

Can employees at eBay choose between traditional and Roth 401(k) contributions?

Yes, employees at eBay can choose to make either traditional pre-tax contributions or Roth after-tax contributions to their 401(k) plans.

When can eBay employees enroll in the 401(k) plan?

eBay employees can enroll in the 401(k) plan during their initial onboarding period or during the annual open enrollment period.

How often can eBay employees change their 401(k) contribution amounts?

eBay employees can change their 401(k) contribution amounts at any time, subject to the plan's guidelines.

What investment options are available in eBay's 401(k) plan?

eBay's 401(k) plan offers a range of investment options, including mutual funds, target-date funds, and other investment vehicles.

Does eBay allow for loans against the 401(k) balance?

Yes, eBay allows employees to take loans against their 401(k) balance, subject to the plan's terms and conditions.

What happens to an employee's 401(k) balance if they leave eBay?

If an employee leaves eBay, they can choose to roll over their 401(k) balance to another retirement account, cash out, or leave it in the eBay plan if eligible.

Are there any fees associated with eBay's 401(k) plan?

Yes, eBay's 401(k) plan may have administrative fees and investment-related fees, which are disclosed in the plan documents.

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

For eBay, the company offers a 401(k) plan and a defined contribution pension plan as part of its retirement benefits. The 401(k) plan allows employees to contribute a portion of their salary towards retirement savings, with eBay providing a matching contribution. As of 2023, eBay employees who meet certain age and service requirements can participate in these retirement plans. The specific 401(k) plan for eBay employees is designed to maximize retirement savings, with the company matching employee contributions up to a certain percentage of their salary. The eligibility for the 401(k) plan typically requires employees to be 21 years old and to have completed one year of service with the company. In addition, long-term part-time employees who work at least 500 hours in three consecutive years are also eligible to participate starting in 2024 due to changes brought by the SECURE Act.

Restructuring and Layoffs: In January 2024, eBay announced a significant restructuring plan that includes laying off 1,000 full-time employees, representing approximately 9% of its workforce. This move is part of a broader strategy aimed at reducing operating costs and improving efficiency in response to economic pressures such as rising inflation and interest rates, which have affected consumer demand and the company's financial performance. The layoffs are part of eBay's effort to position itself for long-term success by streamlining operations and consolidating teams. The company has also indicated plans to reduce contracts within its alternate workforce. Addressing these layoffs is crucial in understanding the impact of the current economic, investment, and tax environment on tech companies.

Stock Options and RSUs Availability eBay offers stock options and Restricted Stock Units (RSUs) to eligible employees, providing them with an opportunity to own shares of the company and benefit from its performance. These equity compensation tools are primarily available to full-time employees across various roles, including senior executives and other high-performing employees. The eBay Stock Option Plan allows employees to purchase shares at a set price (strike price), while RSUs are granted as shares that vest over time, incentivizing long-term retention

eBay offers a comprehensive health benefits package designed to meet the diverse needs of its employees. For the years 2022, 2023, and 2024, eBay's health benefits have included a range of options such as PPOs (Preferred Provider Organizations), HMOs (Health Maintenance Organizations), and high-deductible health plans (HDHPs) paired with Health Savings Accounts (HSAs). This variety ensures that employees can choose a plan that best fits their personal healthcare needs and financial situations. Specific healthcare-related terms and acronyms commonly associated with eBay's health plans include PPO, HMO, HDHP, and HSA. These plans cover essential services such as preventive care, dental and vision insurance, disability insurance, mental health support, and life insurance. Additionally, eBay has focused on mental health benefits, recognizing the importance of supporting both the physical and mental well-being of its employees.

Additional Articles

Check Out Articles for eBay employees

For more information you can reach the plan administrator for eBay at 2025 Hamilton Ave San Jose, CA 95125; or by calling them at (408) 376-7400.

https://www.fidelity.com/learning-center/personal-finance/retirement/company-stock https://www.kitces.com/blog/net-unrealized-appreciation-nua-employee-stock-ownership-plans-esop-capital-gains-income-tax/ https://contracts.justia.com/companies/ebay-441/contract/224048/ https://www.valueaddedresource.net/ebay-ceo-compensation-compliance-ethics-2024-proxy-statement/ https://jobs.ebayinc.com/us/en/our-benefits https://www.payscale.com/research/US/Employer=eBay_Inc./Benefits https://www.groom.com/resources/2023-retirement-plan-year-end-amendments-and-operational-compliance/ https://www.fidelity.com/about-fidelity/Q4-2023-retirement-analysis https://www.thelayoff.com/#google_vignette https://www.milliman.com/en/ https://www.octoberthree.com/ https://www.albertinofinancial.co/ https://www.irs.gov/ https://tracxn.com/d/acquisitions/acquisitions-by-ebay/__zt4IUPOZtdoTnm_2yHXgevJPIWMqjI-i3YY4GdRtg3w https://jobs.ebayinc.com/us/en/our-benefits https://builtin.com/company/ebay/benefits https://www.trpcweb.com/ https://www.journalofaccountancy.com/