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

Is a Rollover into an IRA the Right Move for You as a Global Payments Employee?

Healthcare Provider Update: Healthcare Provider for Global Payments Global Payments, a prominent payment technology and software solutions provider, collaborates with various insurance providers to offer healthcare benefits to its employees. While specific healthcare providers may vary by region and plan, large insurers like Anthem and UnitedHealthcare are commonly associated with companies of this size, offering employer-sponsored health coverage options. Potential Healthcare Cost Increases in 2026 As we look toward 2026, employees of Global Payments may face significant increases in healthcare costs. A projected wave of premium hikes could see rates exceed 60% in some states, severely impacting out-of-pocket expenses. With many employers eyeing strategies to offset rising expenses, such as increasing deductibles and out-of-pocket maximums, employees must prepare for a potential financial strain. A recent study indicates that over 51% of large companies plan to shift more healthcare costs onto their workforce, coupled with the expiration of enhanced federal subsidies, which might ultimately leave employees with thousands in additional costs for same or lesser coverage. Careful planning and early decision-making regarding benefits will be crucial for navigating these changes effectively. Click here to learn more

Choosing an IRA rollover means that your money remains tax-advantaged and capable of growth, as in a Global Payments-sponsored plan. You may also gain more investment options than what may have been available in your Global Payments-sponsored plan. You may also gain oversight of managing these important retirement assets from your trusted Advisor.

If you roll your retirement plan assets over into an IRA account that you already own through your Advisor, you also receive the benefit of combined statements and holistic investment planning, making it easier to track your overall financial situation.

'Receive the benefit of combined statements and holistic investment planning, making it easier to track your overall financial situation.'

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Some of the benefits of rolling your money into an IRA include:

Tax-deferred growth potential: This generally avoids current income tax and distribution penalties when removed from a Global Payments-sponsored retirement plan.

More investment choices: This allows for additional contributions, if eligible. IRAs can be combined and handled by one provider, thereby reducing trustee costs and consolidating statements. Protection from creditors in federal bankruptcy proceedings. The combined amount of your required minimum distributions (RMDs) can be taken from any of your Traditional, SEP or SIMPLE IRAs.

However, there are also some important considerations that Global Payments should make before rolling over their money into an IRA, these include:

Internal management fees might be higher than in a Global Payments-sponsored retirement plan.
Fees and expenses depend largely on the investments you choose.
Loans from an IRA are not allowed.
Early distributions may be subject to a 10% IRS tax penalty in addition to income tax.
RMDs begin April 1 following the year you reach 70½ and annually thereafter; leaving the money in the former Fortune-500 plan may allow RMDs to be delayed until separation from service.
IRAs are subject to state laws governing malpractice, divorce, creditors (outside of bankruptcy), and other lawsuits; leaving the money in the former Global Payments-plan may provide additional protection against creditors.
Net unrealized appreciation (NUA) is the difference between what you paid for employer securities and their increased value. You lose favorable tax treatment of NUA if the funds are rolled into an IRA.

Hopefully, these insights will be helpful as you plan your retirement from Global Payments.

For more information about this topic, view our e-book here: https://retirekit.theretirementgroup.com/will-your-retirement-plan-retire-with-you-e-brochure-offer

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

Global Payments offers a 401(k) retirement savings plan to help employees save for their future.

Does Global Payments match employee contributions to the 401(k) plan?

Yes, Global Payments provides a matching contribution to employee 401(k) accounts, subject to certain terms and conditions.

What is the eligibility requirement for Global Payments employees to participate in the 401(k) plan?

Employees of Global Payments are generally eligible to participate in the 401(k) plan after completing a specified period of service, typically within the first year of employment.

Can Global Payments employees choose how their 401(k) contributions are invested?

Yes, Global Payments employees can choose from a variety of investment options within the 401(k) plan to align with their personal financial goals.

What is the maximum contribution limit for the Global Payments 401(k) plan?

The maximum contribution limit for the Global Payments 401(k) plan is subject to IRS annual limits, which can change each year.

How often can Global Payments employees change their contribution amounts to the 401(k) plan?

Global Payments employees can typically change their contribution amounts at any time, allowing for flexibility in their savings strategy.

Does Global Payments allow for loans against the 401(k) plan?

Yes, Global Payments may allow employees to take loans against their 401(k) balance, subject to the plan's terms and conditions.

What happens to my Global Payments 401(k) if I leave the company?

If you leave Global Payments, you can choose to roll over your 401(k) balance to another retirement account, leave it in the plan, or withdraw it, subject to tax implications.

Is there a vesting schedule for the Global Payments 401(k) matching contributions?

Yes, Global Payments has a vesting schedule for matching contributions, which means you earn rights to the employer match over time.

Can I access my Global Payments 401(k) funds before retirement?

While accessing your Global Payments 401(k) funds before retirement is generally discouraged, there are certain circumstances, such as financial hardship, that may allow for early withdrawals.

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

Pension Plan Information: Name of Pension Plan: Global Payments does not offer a traditional defined benefit pension plan as of the latest information. Instead, their retirement benefits are provided through a defined contribution plan. Years of Service and Age Qualification: Since there is no traditional pension plan, there are no specific years of service or age qualifications for a pension plan. Pension Formula: Not applicable due to the absence of a defined benefit pension plan. Source: Information about the absence of a traditional pension plan is available in the Global Payments 2023 Form 10-K, page 51. 401(k) Plan Information: Name of 401(k) Plan: Global Payments 401(k) Plan Qualification for 401(k) Plan: Employees are eligible to participate in the Global Payments 401(k) Plan after completing 30 days of service. 401(k) Plan Features: Contribution Limits: Employees can contribute up to the IRS annual limit. Company Match: Global Payments matches employee contributions up to a certain percentage, typically a percentage of the employee's salary.

Restructuring & Layoffs: In early 2024, Global Payments announced a restructuring plan aimed at streamlining operations and reducing costs. This move included the layoff of approximately 5% of its workforce, primarily affecting roles in administrative and support functions. The company cited the need to adapt to shifting market conditions and enhance operational efficiency as the primary reasons for this decision. Benefit Changes: Alongside the restructuring, Global Payments updated its employee benefits package. Changes included adjustments to healthcare plans and a reduction in retirement benefits contributions. The company stated that these modifications were necessary to maintain competitive positioning and financial stability in the face of economic uncertainties and evolving market dynamics.

Search for stock option and RSU information on Global Payments for 2022, 2023, and 2024: Look for annual reports, financial statements, and SEC filings. Identify the acronyms used for stock options and RSUs. Note who is eligible to receive stock options and RSUs at Global Payments. Document the source and page number of the information: Record the URL and specific page number from the documents where the information is located. Summarize the findings:

Check Global Payments’ official website for the most accurate and detailed information on their health benefits. Corporate Benefits Pages: Look for specific pages dedicated to employee benefits or healthcare plans on the company's site. News Websites: Search for recent news articles related to Global Payments' healthcare benefits or changes to their employee health plans. Industry Reports: Review industry reports or analysis for any insights into Global Payments' health benefits strategy. Employee Reviews and Forums: Check sites like Glassdoor or Indeed for employee feedback on the company's health benefits.