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Healthcare Provider Update: Verizon collaborates with Aetna as its primary healthcare provider, offering a range of health plans and services to its employees and their families. Looking ahead to 2026, the healthcare landscape is poised for significant change, as record hikes in Affordable Care Act (ACA) premiums are anticipated. With some states facing increases exceeding 60%, many individuals could see their out-of-pocket premiums rise by more than 75%, particularly if enhanced federal premium subsidies are not extended. This scenario could create an additional burden for Verizon employees, emphasizing the importance of strategic planning for healthcare coverage amidst such dramatic shifts in costs. Click here to learn more
Understanding Social Security can help ensure a financial future even for Verizon employees facing unexpected challenges in life, says Patrick Ray of The Retirement Group. 'We recommend talking with a financial advisor about your benefits to see if they fit your needs.
'Social Security benefits are very important to many Verizon employees and retirees,' says Michael Corgiat, a financial expert with The Retirement Group. A professional advisor can help you understand these benefits and help you protect your financial future amid life's uncertainties,' says'
In this article:
1. Social Security and Retirement Planning: Understanding how Social Security can be a supplement to income for Verizon employees and retirees - and why it should not be the only income in retirement.
2. Family Benefits under Social Security: Explore how spousal death, divorce, and disability affect eligibility and benefits distribution to family members.
3. Strategic Application of Benefits: Information on how to apply for Social Security benefits 'to maximize financial support for critical family events.'
Social Security benefits are very important to many Verizon employees and retirees,' says Michael Corgiat, a financial expert with The Retirement Group. 'Working with a professional advisor can help you understand these benefits and protect your financial future amid life's uncertainties.'
Social Security is among the most basic retirement income concepts for Verizon employees and retirees. Social Security is another retirement income stream. It should never be the only source of income, but it can help in times of need. A family dealing with death of a spouse, disability, divorce, or dependent children/parents should know the benefits they dispose of to ease the financial strain they may be experiencing. How does family benefit work?
You will usually get a percentage of the Social Security benefit, the entire Social Security benefit, or a family maximum. An example of how this differs is what we hear from Verizon employees and retirees.
Answer: That question comes from many Verizon employees and retirees - understandably so. Yes, spousal benefits are available to a couple who has been married one year or longer. They may collect up to 50 percent of working spouses Primary Insurance amount - Full Retirement Age if they wait until their own Full Retirement Age - or they may collect another reduced amount starting at Age 62.
Answer: Yes. If you were married to your ex-spouse for 10 or more years, they are unmarried and age 62 or older. You receive the same benefits as a current spouse.
Answer: It comes from working with a lot of Verizon employees and retirees about how death can affect the family financial situation. This question comes up a lot, therefore.
In the answer, there are two parts. Yes. Your unmarried dependent children under 18 years old, 19 if in a primary or secondary school, or disabled as long as disability occurred before age 22 years old are entitled to 75 percent of the PIA of the deceased parent up to a family maximum. For any child under age 16 your spouse is also entitled to 75 percent of the PIA up to a family maximum. In this situation Social Security has come in immediately to help the family with additional income.
In addition, at age 60 a widower can take Social Security from the deceased spouse. This is two years before the traditional spousal benefit. And as with any situation involving taking Social Security early, you will pay a percentage reduction of the full benefit.
Answer: It's another worry for many Verizon employees and retirees with children. Yes, exactly the same eligibility rules apply as if you were deceased. The only change: your children would get only 50 percent of your PIA.
Answer: Yes. Depending on the circumstances, your dependent parents may collect off your record if you are deceased and you provided more than 50 percent of their support before you died. That's the least common family benefit. 1 Remember that a family member collecting Social Security benefit off of your record will not reduce your benefit. Making applications for the benefits your family and you deserve can create significant income for your family and ease the strain a life-changing event may place on your resources.
We speak with lots of Verizon employees and retirees over the years and we know everyone is different. Social Security benefits are complicated but our financial advisors can help you determine when and how to apply. A nationwide group of financial advisors known as The Retirement Group.
We only plan for and design retirement portfolios for transitioning corporate employees. And each representative of The Group has been hand-picked by The Retirement Group in select cities throughout The United States. Each advisor was screened for pension expertise, financial planning experience, and portfolio construction knowledge.
TRG believes in teamwork to find solutions to our clients' problems. A conservative investment philosophy guides the Team in constructing client portfolios with laddered bonds, CDs, mutual funds, ETFs, Annuities, Stocks, and other investments. They handle Retirement, Pensions, Tax, Asset Allocation, Estate, Elder Care issues. This document uses different research tools and techniques.
All attempts to estimate future results involve assumptions and judgments and are therefore only tentative. The law, investment climate, interest rates, and personal circumstances will all change and will affect how accurate our estimations are and how appropriate our recommendations are. Such a plan requires ongoing change sensitivities as well as constant re-examination and alteration of the plan.
So, update your plan a few months before your expected retirement date and do an annual review. Nothing contained herein shall be construed as an attempt by the Retirement Group, LLC, or any of its employees to practice law or accounting. We look forward to speaking with any tax and/or legal professionals you may select regarding the implications of our recommendations.
Through your retirement years, we will continue to update you on issues affecting your retirement via our complimentary and proprietary newsletters, workshops, and periodic updates. Or call us at (800) 900-5867.
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- Corporate Employees: 8 Factors When Choosing a Mutual Fund
- Use of Escrow Accounts: Divorce
- Medicare Open Enrollment for Corporate Employees: Cost Changes in 2024!
- Stages of Retirement for Corporate Employees
- 7 Things to Consider Before Leaving Your Company
- How Are Workers Impacted by Inflation & Rising Interest Rates?
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- Internal Revenue Code Section 409A (Governing Nonqualified Deferred Compensation Plans)
- Corporate Employees: Do NOT Believe These 6 Retirement Myths!
- 401K, Social Security, Pension – How to Maximize Your Options
- Have You Looked at Your 401(k) Plan Recently?
- 11 Questions You Should Ask Yourself When Planning for Retirement
- Worst Month of Layoffs In Over a Year!
- Corporate Employees: 8 Factors When Choosing a Mutual Fund
- Use of Escrow Accounts: Divorce
- Medicare Open Enrollment for Corporate Employees: Cost Changes in 2024!
- Stages of Retirement for Corporate Employees
- 7 Things to Consider Before Leaving Your Company
- How Are Workers Impacted by Inflation & Rising Interest Rates?
- Lump-Sum vs Annuity and Rising Interest Rates
- Internal Revenue Code Section 409A (Governing Nonqualified Deferred Compensation Plans)
- Corporate Employees: Do NOT Believe These 6 Retirement Myths!
- 401K, Social Security, Pension – How to Maximize Your Options
- Have You Looked at Your 401(k) Plan Recently?
- 11 Questions You Should Ask Yourself When Planning for Retirement
- Worst Month of Layoffs In Over a Year!
Sources:
1. 'Benefits Planner: Retirement.' Social Security Administration, 2023, www.ssa.gov/benefits/retirement/planner/ageincrease.html . Accessed 23 Feb. 2025.
2. 'Windfall Elimination Provision (WEP) and Government Pension Offset (GPO).' Social Security Administration, 2023, www.ssa.gov/benefits/retirement/planner/wep.html . Accessed 23 Feb. 2025.
3. 'How Do I Apply for Social Security Retirement Benefits?' Social Security Administration, 24 Apr. 2024, www.ssa.gov/faqs/en/questions/KA-01891.html . Accessed 23 Feb. 2025.
4. 'Benefits Planner: Retirement | Social Security Benefits for Federal Workers.' Social Security Administration, 2023, www.ssa.gov/benefits/retirement/planner/fedgovees.html . Accessed 23 Feb. 2025.
5. 'Quick Calculator.' Social Security Administration, last modified 27 May 2014, www.ssa.gov/OACT/quickcalc/ . Accessed 23 Feb. 2025.
How does the Verizon Pension Plan facilitate retirement income for long-term employees, and what specific benefits can employees expect when enrolling in the retirement program provided by Verizon? What unique features does the Verizon Pension Plan offer compared to other retirement plans an employee might have encountered, and how can employees maximize the benefits of these features throughout their career at Verizon?
Verizon Pension Plan Benefits: Verizon's Pension Plan offers substantial benefits aimed at facilitating a secure retirement for long-term employees. Upon enrolling in the retirement program, employees can expect defined benefits that are based on their salary and years of service, ensuring a predictable and stable income after retirement. Unique to Verizon, compared to some other plans, may include options for early retirement under certain conditions and a choice between annuity payments or a lump-sum distribution upon retirement. Employees can maximize these features by planning for long-term service and considering their retirement income needs early in their careers.
In what ways can employees at Verizon strategize their rollover decisions when transitioning from the Verizon Pension Plan to other retirement savings plans upon leaving the company? What factors should be considered by Verizon employees to ensure they are making informed choices regarding rolling over funds to a traditional IRA or another qualified employer plan?
Rollover Strategies: When transitioning from the Verizon Pension Plan to other retirement savings options upon leaving the company, employees should strategize their rollover decisions carefully. Factors to consider include the tax implications, the investment options available in the rollover destination, and the timing of the transfer to avoid penalties. Verizon employees should evaluate the benefits of rolling over to a traditional IRA or another employer's plan, considering their future financial needs and retirement goals.
What are the implications of the recent IRS limits for 2024 concerning contributions to retirement plans for Verizon employees, and how does Verizon align its offerings with these federal regulations? Additionally, how can Verizon employees best take advantage of these limits to enhance their retirement savings while adhering to tax regulations?
IRS Contribution Limits: The implications of IRS limits for 2024 are critical for Verizon employees as these limits dictate how much can be contributed tax-deferred into retirement plans. Verizon aligns its offerings with these federal regulations by adjusting contribution limits in their plans accordingly. Employees are encouraged to maximize their contributions to take full advantage of tax-deferred growth, especially when IRS limits increase, thereby enhancing their retirement savings while adhering to tax regulations.
How does the special tax treatment for lump sum distributions from the Verizon Pension Plan affect employees who receive their benefits early or have specific circumstances, such as being born before 1936? What options do these employees have to manage their tax burden effectively, and how can they best navigate these complicated rules while planning for their retirement?
Tax Treatment of Lump Sum Distributions: The special tax treatment for lump sum distributions from the Verizon Pension Plan can significantly affect employees who opt to receive their benefits early or under specific circumstances like being born before 1936. These employees have options to manage their tax burden effectively by opting for ten-year averaging or capital gain treatment on eligible distributions, allowing for a potentially lower tax rate on their pension benefits.
For surviving spouses and alternate payees of Verizon employees, what are the specific benefits available under the Verizon Pension Plan? How do these benefits compare to those available to employees, and what steps must surviving spouses or alternate payees take to ensure they receive their entitled benefits without delays or complications?
Benefits for Surviving Spouses and Alternate Payees: For surviving spouses and alternate payees, the Verizon Pension Plan offers benefits similar to those available to employees, such as annuity payments or lump-sum options. These beneficiaries must take certain steps to ensure they receive their benefits without delays, such as providing necessary documentation and adhering to plan rules. The plan details and processes for claiming benefits should be clearly understood to avoid complications.
How can Verizon employees utilize the resources available through the Verizon Benefits Center to better understand and manage their retirement benefits? What specific tools and services does the Benefits Center provide, and how can these resources assist employees in making informed decisions regarding their pension plan options?
Utilizing Resources at the Verizon Benefits Center: Verizon employees can utilize various tools and services provided by the Verizon Benefits Center to manage and understand their retirement benefits. The Benefits Center offers personalized consultations, detailed plan documentation, and tools for estimating pension benefits and planning retirement income, assisting employees in making informed decisions about their pension plan options.
What challenges might Verizon employees face regarding eligibility and tax withholding when receiving their pension payments, and how can they mitigate these issues? It's crucial for employees to understand the mechanics of eligibility regarding rollovers and payment processing; what key pieces of information should they be aware of to avoid unexpected taxes?
Challenges in Eligibility and Tax Withholding: Verizon employees might face challenges regarding eligibility and tax withholding when receiving pension payments. Understanding the plan's criteria for eligibility, the implications of rollovers, and the impact of mandatory withholding on distributions is crucial. Employees can mitigate these issues by consulting with the Verizon Benefits Center or a tax advisor to ensure compliance and avoid unexpected taxes.
What is the process for Verizon employees wishing to initiate a direct rollover from the Verizon Pension Plan, and what documentation will they need to prepare? Can employees receive assistance from the Verizon Benefits Center during this process, and how does using a direct rollover benefit them compared to other forms of payment?
Direct Rollover Process: The process for initiating a direct rollover involves deciding the destination of the rollover (traditional IRA or another employer plan), completing necessary documentation, and potentially seeking assistance from the Verizon Benefits Center. A direct rollover helps in avoiding immediate taxes and maintaining the tax-deferred status of retirement savings.
In terms of retirement preparedness, how does the pension plan at Verizon accommodate employees’ needs for financial security in their senior years? What additional education or resources does Verizon provide to assure that employees fully understand their retirement options and the importance of planning ahead?
Retirement Preparedness: Verizon's pension plan is designed to accommodate the financial security needs of employees in their senior years. In addition to the pension benefits, Verizon provides educational resources and planning tools to ensure employees understand their retirement options and the importance of early and consistent retirement planning.
How can employees reach out to the Verizon Benefits Center for further information about the pension plan and other retirement benefits? What specific contact methods are available to employees, and how can these interactions enhance their understanding and management of retirement benefits provided by Verizon?
Contacting the Verizon Benefits Center: Verizon employees seeking more information about their pension plan and other retirement benefits can reach out to the Verizon Benefits Center through various contact methods such as phone, email, or online portals. These interactions are crucial for enhancing understanding and effective management of retirement benefits, ensuring employees make the most of the benefits available to them.
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