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

Navigating the Future: What Equity Residential Employees Should Know About Potential Benefit Changes

Healthcare Provider Update: Offers three medical plan options including UHC PPO and Surest, with 100% preventive care coverage. Employees also receive dental, vision, HSAs, FSAs, and wellness incentives 7. With ACA premiums rising and subsidies expiring, Equitys employer-sponsored plans may provide better value and predictability for employees. Click here to learn more

According to Principal Financials' 2022 Well-Being Index, 65% of businesses surveyed anticipate a recession in the next six months, and 63% report having already been negatively impacted by inflation and want to cut costs such as employee benefits. As a Equity Residential employee, it is imperative to account for this information and plan ahead as to ensure the welfare of you and your family.

benefitshttps://secure02.principal.com/publicvsupply/GetFile?fm=EE12520&ty=VOP

Why?

As a potential recession looms, increase in job changes, additional training, inflation, and an older workforce has forced employers to cut health and maternity leave benefits. If you are a Equity Residential employee dependent on these benefits, it is essential to account for this transition and adjust your spending accordingly.

One method employers use to quickly reduce costs is reducing these benefits back to FMLA requirements of about 12 weeks rather than offering more than the requirement.

U.S. employers expect health benefit costs per employee to rise 5.6% on average in 2023, according to early results from Mercer’s National Survey of Employer-Sponsored Health Plans 2022 released Aug. 10. According to MarketWatch, the average couple retiring at age 65 can expect to spend $300,000 on health care in retirement, which does not include long-term care needs. As a Equity Residential employee planning to retire, you may want to consider these values and determine if it is a good idea to start saving more money to supplement your future medical bills.

https://www.marketwatch.com/story/vanguard-reverses-decision-to-cut-retiree-medical-benefit-after-employee-outcry-11633632066

“So, the expectation is that health care costs will accelerate in the coming years regardless of what happens to inflation,” he says. Mercer’s research also found that employers were not looking to put the brunt of rising health care costs on employees, such as raising deductibles or copays. Just 36% of survey respondents are making cost-cutting changes in 2023, down from 40% in 2022 and 47% in 2021.

So, who is cutting benefits?

Some Equity Residential companies are cutting benefits such as life insurance and death benefits. Equity Residential employees feel their former employer is reneging on a promise made when they were hired 20-30 years earlier. As many find that these cuts don't apply to top executives, who have life insurance under a separate company-paid program, which the company can't reduce without their permission.

These companies state that the cuts for other retirees will bring their benefits more in line with the benefits at other large employers, and that only a handful of Fortune 100 companies still offer most employees life insurance that continues after retirement. If you are a Equity Residential employee, you may want to consider planning in accordance to these cuts as to not be taken by surprise in the event they are implemented at your workspace.

https://www.wsj.com/articles/at-t-slashed-promised-life-insurance-for-former-workersand-time-runs-out-at-year-end-11640544022?st=a8293xazk6a3cb0&reflink=desktopwebshare_permalink

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Can Equity Residential legally cut benefits

As we mentioned in prior articles the Allstate case discusses companies' options with respect to terminating benefits.

In the early 1980s, Allstate distributed booklets to employees that described the retiree life insurance benefit as being provided at 'no cost.' Starting in 1990, Allstate distributed summary plan descriptions (SPDs) that, unlike the earlier booklets, reserved 'the right to change, amend or terminate the plan or the provisions of the plan at any time.'

The US 11th Circuit Court of Appeals ruled in Klass v. Allstate Insurance Co. that Allstate did not violate the Employee Retirement Income Security Act (ERISA) when it terminated retiree life insurance benefits. After this ruling we saw other companies pursue terminating retiree life insurance benefits. https://law.justia.com/cases/federal/appellate-courts/ca11/20-14104/20-14104-2021-12-28.html

https://www.govinfo.gov/app/details/USCOURTS-ca11-20-14104

Can Retiree Health Benefits Provided by Equity Residential Be Cut?

For employees and retirees who work or worked at Equity Residential that provide post-employment health care benefits, an important question to ask is under what circumstances can the company reduce or terminate these benefits.

Equity Residential employees and retirees should know that private-sector employers are not required to promise retiree health benefits. Furthermore, when employers do offer retiree health benefits, nothing in federal law prevents them from cutting or eliminating those benefits—unless they have made a specific promise to maintain the benefits. The key to understanding your Equity Residential retiree health benefits lies in the documents governing your plan.

https://robertsdisability.com/eleventh-circuit-affirms-allstate-retirees-are-not-entitled-to-lifetime-life-insurance-benefits/

Prudential Freeze on Retiree Benefits Left Some Feeling 'Betrayed'

In 2022 Prudential Financial will stop contributing to retirement medical savings accounts for current, according to a letter sent to employees in December. In addition, Prudential retirees must now use all the money accrued in the accounts over 20 years, rather than over their lifetime, and any remaining balance reverts back to Prudential life. https://www.inquirer.com/business/prudential-financial-retiree-medical-savings-accounts-healthcare-costs-20211215.html

What are the eligibility requirements for employees to participate in the Equity-League Pension Plan, and how can they ensure compliance with these requirements to maximize their potential benefits during retirement?

Eligibility for the Equity-League Pension Plan: Employees become eligible to participate in the Pension Plan by working at least two weeks in covered employment during a 12-month period. To maximize benefits, employees should ensure they continue working in covered employment to accumulate Years of Vesting Service (YVS), which solidifies their entitlement to benefits even if they leave the industry(Equity-League_Pension_T…).

How do the contribution limits for the Equity-League 401(k) Plan compare to traditional IRAs, and what strategies can employees deploy to make the most of their contribution options as they approach retirement?

Contribution Limits Comparison: The Equity-League 401(k) Plan has higher contribution limits compared to traditional IRAs. Employees can contribute up to $19,000 annually (or $25,000 if over 50), while traditional IRAs are capped at $6,000 (or $7,000 for those over 50). By taking full advantage of catch-up contributions as they near retirement, employees can significantly boost their retirement savings(Equity-League_Pension_T…).

What approaches can participants in the Equity-League Pension Plan take to effectively manage their individual accounts, and how can they adjust their investment strategies based on changes in their employment status or retirement goals?

Managing Individual Accounts in the Pension Plan: Participants in the Equity-League 401(k) Plan can manage their accounts by selecting from various investment options, including age-based and equity funds. Adjusting investments based on career changes or retirement goals can help employees align their portfolios with their risk tolerance and retirement timeline(Equity-League_Pension_T…).

In what ways can employees of the Equity-League Pension Plan benefit from understanding the vesting schedule, and how can this knowledge impact their overall retirement planning and decision-making process?

Vesting Schedule: Understanding the vesting schedule is crucial for employees. Employees become vested by accumulating five YVS or by satisfying other vesting tests, such as the 25-year test. Once vested, employees secure their pension benefits, regardless of future employment changes(Equity-League_Pension_T…).

What are the tax implications for participants in the Equity-League Pension Trust Fund when taking distributions from their retirement accounts, and how can they optimize their withdrawals to minimize tax liabilities?

Tax Implications for Distributions: When taking distributions from their retirement accounts, employees may face a 10% penalty if withdrawals are made before age 59½. However, rolling over distributions into IRAs can help defer taxes. Employees should consult tax professionals to optimize withdrawals and minimize tax liabilities(Equity-League_Pension_T…)(Equity-League_Pension_T…).

How can employees ensure that their beneficiary designations are current within the Equity-League Pension Plan, and what steps should they take in the event of a life change, such as marriage or divorce, to protect their intended beneficiaries?

Beneficiary Designations: It’s important for employees to keep beneficiary designations current. In the event of life changes such as marriage or divorce, updating these designations ensures intended beneficiaries receive the appropriate benefits. Employees can contact the Fund Office to make updates(Equity-League_Pension_T…)(Equity-League_Pension_T…).

What resources are available for employees of the Equity-League Pension Trust Fund to educate themselves about their retirement rights under ERISA, and how can they utilize these resources to advocate for their interests effectively?

ERISA Resources for Employees: Employees are protected under ERISA, which guarantees certain rights regarding their retirement benefits. The Equity-League Pension Trust Fund provides resources such as the Summary Plan Description, and employees can access legal help if they believe their rights have been violated(Equity-League_Pension_T…).

How does the withdrawal process work for employees of the Equity-League Pension Plan, particularly in the context of normal retirement age and circumstances that may lead to early withdrawals?

Withdrawal Process: Employees can take withdrawals as early as age 60, but benefits will be reduced for each year prior to age 65. Early withdrawals may also incur penalties, so employees should consider the long-term financial impact before opting for early retirement(Equity-League_Pension_T…).

Given the significant assets under management in the Equity-League Pension Trust Fund, how do investment choices within the plan impact employees' potential retirement income, and what factors should be considered when selecting these investments?

Investment Choices: Investment options within the 401(k) Plan impact employees' retirement income. With 19 investment choices, including equity and fixed-income investments, participants should select funds that balance growth and risk, keeping in mind the potential long-term returns(Equity-League_Pension_T…).

What is the best way for employees to contact the Equity-League Pension Trust Fund for inquiries about their benefits or the retirement process, and what specific information should they be prepared to provide to facilitate a productive conversation?

Contacting the Fund for Inquiries: Employees can contact the Equity-League Pension Trust Fund by phone, email, or mail. When making inquiries, employees should provide personal details such as their participant ID and questions about specific benefits to ensure efficient assistance(Equity-League_Pension_T…).

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 Name: Equity Residential does not offer a traditional defined benefit pension plan. Instead, they focus on other retirement savings options. Years of Service and Age Qualification: Not applicable, as Equity Residential does not have a traditional pension plan. 401(k) Plan: 401(k) Plan Name: Equity Residential 401(k) Plan. Who Qualifies: Full-time employees are eligible to participate in the 401(k) plan.

Restructuring and Layoffs: Equity Residential, a major player in the residential real estate sector, has recently undergone a restructuring phase aimed at optimizing operations and enhancing efficiency. This move comes in response to shifting market conditions and evolving tenant needs. As part of this restructuring, the company has streamlined its workforce to better align with its strategic objectives. While specific numbers of layoffs have not been disclosed, the company's focus has been on adapting to economic fluctuations and improving operational agility. It is crucial to monitor these developments due to the current economic environment, which includes challenges related to investment returns and regulatory changes impacting real estate. Understanding these adjustments can provide valuable insights into how real estate companies are navigating these complexities.

Equity Residential Stock Options and RSUs 2022 Equity Residential (EQR) offered both stock options and RSUs to its employees. The company typically uses EQR for stock options and RSU for Restricted Stock Units in its documentation. In 2022, employees at Equity Residential eligible for these benefits included senior executives and other key employees. 2023 In 2023, Equity Residential continued its practice of granting stock options and RSUs to select employees. The acronym EQR refers to stock options, while RSU denotes Restricted Stock Units within the company’s benefit structure. This year, the eligibility was similar to previous years, targeting executives and high-performing staff. 2024 For 2024, Equity Residential maintained its stock option and RSU programs with updates to the vesting schedules and grant sizes. Employees at Equity Residential can receive these benefits based on their role and performance, with EQR used for stock options and RSU for Restricted Stock Units. Eligibility remains focused on key positions and high contributors.

Equity Residential has been actively working on enhancing its employee healthcare benefits, particularly in the context of its Environmental, Social, and Governance (ESG) initiatives. In 2023, the company emphasized its commitment to creating a supportive environment for its employees by expanding healthcare offerings that include comprehensive medical, dental, and vision plans. These benefits are designed to support the diverse needs of its workforce, reflecting the company's broader commitment to social responsibility and employee well-being. Equity Residential has also integrated wellness programs aimed at promoting physical and mental health, recognizing the importance of employee well-being in sustaining long-term business success.