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

What Evergy Employees Should Know About the Latest Fed Rate Cut

Healthcare Provider Update: Offers medical plans through Blue Cross Blue Shield of Kansas City, dental, vision, FSAs, and CVS Caremark for pharmacy benefits 5. As ACA premiums increase, Evergys union and non-union plans provide consistent coverage and cost control for employees. Click here to learn more

'Evergy 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, Evergy 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 Evergy 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 Evergy 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 Evergy 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 Evergy 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 Evergy 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 is the purpose of Evergy's 401(k) Savings Plan?

The purpose of Evergy's 401(k) Savings Plan is to help employees save for retirement by providing a tax-advantaged way to invest a portion of their income.

How can I enroll in Evergy's 401(k) Savings Plan?

You can enroll in Evergy's 401(k) Savings Plan by accessing the employee benefits portal or contacting the HR department for enrollment instructions.

What types of contributions can I make to Evergy's 401(k) Savings Plan?

Employees can make pre-tax contributions, Roth (after-tax) contributions, and, if eligible, catch-up contributions to Evergy's 401(k) Savings Plan.

Does Evergy offer a company match for contributions made to the 401(k) Savings Plan?

Yes, Evergy offers a company match on employee contributions to the 401(k) Savings Plan, which helps enhance your retirement savings.

What is the vesting schedule for the company match in Evergy's 401(k) Savings Plan?

The vesting schedule for the company match in Evergy's 401(k) Savings Plan typically follows a graded vesting schedule, which means you earn ownership of the match over a period of time.

How often can I change my contribution amount to Evergy's 401(k) Savings Plan?

You can change your contribution amount to Evergy's 401(k) Savings Plan at any time, subject to the plan's rules and limits.

Are there any fees associated with Evergy's 401(k) Savings Plan?

Yes, there may be administrative fees associated with Evergy's 401(k) Savings Plan, which are disclosed in the plan documents provided to employees.

What investment options are available in Evergy's 401(k) Savings Plan?

Evergy's 401(k) Savings Plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to suit different risk tolerances.

How can I access my account information for Evergy's 401(k) Savings Plan?

You can access your account information for Evergy's 401(k) Savings Plan through the plan's online portal or by contacting the plan administrator.

Can I take a loan from my Evergy 401(k) Savings Plan?

Yes, Evergy's 401(k) Savings Plan allows participants to take loans under certain conditions, subject to the plan's rules and limits.

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

For Evergy, the company offers both a pension plan and a 401(k) plan for its employees. The Evergy pension plan, often referred to as the defined benefit plan, requires employees to meet certain years of service and age qualifications to become eligible. The pension formula is based on the final average pay and years of service, which is typical for defined benefit plans. Non-union employees are generally enrolled in the 401(k) plan, which includes company matching contributions. The Evergy 401(k) Savings Plan, established in 1988, is the primary retirement savings option for non-union employees, while some union employees may still have access to a traditional pension plan. The specific eligibility, contribution limits, and matching details are provided in the company’s benefits documentation, typically through internal HR portals or detailed benefits guides.

Restructuring and Layoffs: Evergy announced a restructuring plan in early 2024 aimed at optimizing its operational efficiency. The plan included a reduction of approximately 5% of its workforce across various departments. This move was intended to streamline operations and reduce costs amid fluctuating energy prices and regulatory changes. Source: Bloomberg

Evergy grants stock options and RSUs as part of its employee compensation package. According to Evergy's 2022 Annual Report (Source: Evergy 2022 Annual Report, Page 45), stock options are typically offered to senior executives and key employees. RSUs are also granted to attract and retain talent, with specific vesting schedules outlined in the report. Evergy utilizes stock options and RSUs to align employee interests with company performance. The 2022 Compensation Disclosure (Source: Evergy 2022 Proxy Statement, Page 32) details that stock options are granted at an exercise price equal to the fair market value on the grant date. RSUs are granted based on performance metrics and time-based vesting criteria. In 2023, Evergy continued to offer stock options and RSUs as part of its compensation strategy. According to the 2023 Annual Report (Source: Evergy 2023 Annual Report, Page 50), stock options are given to senior management and high-performing employees. RSUs are awarded based on individual and company performance metrics.

Evergy offers a comprehensive health benefits package designed to support the well-being of its employees and their families. Their benefits include a choice of medical, dental, and vision plans, as well as life and accident insurance, long-term disability, and flexible spending accounts for medical and dependent care. The medical plans are administered through Blue Cross Blue Shield of Kansas City, and Evergy also offers SavRx for union employees as a pharmacy benefit plan (evergy.com) (Evergy | Newsroom). Specific healthcare-related acronyms used by Evergy include FSA (Flexible Spending Account) and HSA (Health Savings Account), both of which allow employees to set aside pre-tax dollars for medical expenses. Evergy’s health benefits include paid parental leave, which is part of their broader focus on work-life balance (evergy.com).

Additional Articles

Check Out Articles for Evergy employees

For more information you can reach the plan administrator for Evergy at , ; or by calling them at .

https://www.thelayoff.com/#google_vignette https://finance.yahoo.com/ https://www.bloomberg.com/asia https://www.reuters.com/ https://www.cnbc.com/world/?region=world https://www.ft.com/