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

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

Healthcare Provider Update: Gartner Healthcare Provider Gartner collaborates with various healthcare providers and organizations to deliver research and insights that guide healthcare strategies. While specific healthcare partners may change over time, Gartner is known for providing expert consultancy in the healthcare sector, helping organizations optimize their technology and IT spending. Potential Healthcare Cost Increases in 2026 As we approach 2026, healthcare costs are projected to surge significantly, particularly within the Affordable Care Act (ACA) marketplace. Reports suggest that some states may experience premium hikes exceeding 60%, driven by a confluence of rising medical expenses, the potential expiration of enhanced federal subsidies, and aggressive rate increases by major insurers. Without action from Congress to extend these subsidies, about 92% of marketplace enrollees could face staggering increases of up to 75% in their out-of-pocket premiums, making affordability a pressing issue for millions. As healthcare consumers prepare for these anticipated changes, understanding these dynamics is crucial for navigating the evolving landscape of healthcare costs. 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 Gartner employee, it is imperative to account for this information and plan ahead as to ensure the welfare of you and your family.

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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 Gartner 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 Gartner 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 Gartner companies are cutting benefits such as life insurance and death benefits. Gartner 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 Gartner 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 Gartner 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 Gartner Be Cut?

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

Gartner 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 Gartner 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 is the primary purpose of Gartner's 401(k) plan?

The primary purpose of Gartner's 401(k) plan is to help employees save for retirement by providing a tax-advantaged account to accumulate savings over time.

How can Gartner employees enroll in the 401(k) plan?

Gartner employees can enroll in the 401(k) plan by accessing the employee benefits portal and following the enrollment instructions provided.

Does Gartner offer a company match for contributions to the 401(k) plan?

Yes, Gartner offers a company match for employee contributions to the 401(k) plan, which helps employees boost their retirement savings.

What types of investment options are available in Gartner's 401(k) plan?

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

Can Gartner employees change their contribution percentages at any time?

Yes, Gartner employees can change their contribution percentages at any time through the employee benefits portal, subject to certain plan rules.

What is the vesting schedule for the company match in Gartner's 401(k) plan?

The vesting schedule for the company match in Gartner's 401(k) plan typically follows a graded vesting schedule, which means employees earn rights to the company match over a period of time.

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

Yes, there may be fees associated with managing Gartner's 401(k) plan, which can include administrative fees and investment management fees. Employees can review the fee structure in the plan documents.

How often can Gartner employees review their 401(k) account statements?

Gartner employees can review their 401(k) account statements quarterly, and they also have access to their account information online at any time.

What happens to a Gartner employee's 401(k) account if they leave the company?

If a Gartner employee leaves the company, they can choose to roll over their 401(k) account to another retirement plan, leave it in the current plan, or cash it out, subject to taxes and penalties.

Is there a loan option available within Gartner's 401(k) plan?

Yes, Gartner's 401(k) plan may offer a loan option, allowing employees to borrow against their account balance under certain conditions.

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

Plan Name: Gartner does not appear to have a defined benefit pension plan. The company primarily offers a defined contribution plan, which is a 401(k) plan. Years of Service and Age Qualification: Not applicable as Gartner does not offer a traditional pension plan. Plan Name: Gartner 401(k) Plan. Eligibility: Gartner's 401(k) Plan is generally available to all eligible employees. Eligibility typically depends on factors such as length of service and employment status. Employees usually become eligible to participate in the plan after completing a specified period of employment, often 30 days. Contribution Limits: Employees can contribute up to the IRS annual limit. Gartner may offer a match or other contributions, which should be detailed in the plan documents. Company Match: Gartner provides a matching contribution, though the specific percentage or formula should be verified in the most recent plan documents.

Restructuring and Layoffs: In early 2024, Gartner announced a significant restructuring plan, which included layoffs affecting approximately 5% of its global workforce. This decision comes as the company aims to streamline its operations and adapt to evolving market demands. The restructuring is part of Gartner's broader strategy to focus on high-growth areas and improve operational efficiency. Given the current economic climate, where companies are reevaluating their workforce and operational strategies, it is crucial to stay informed about such changes to understand their potential impact on the job market and broader economic conditions. Company Benefits, Pensions, and 401k Changes: Gartner has also made adjustments to its employee benefits, including modifications to its pension and 401k plans. The company has shifted to a more flexible 401k match program, which now varies based on individual performance and company profitability. Additionally, changes to the pension plan have been made to better align with current financial realities and investment returns. These changes are particularly important to follow in the context of fluctuating investment markets and evolving tax regulations, as they can directly affect retirement planning and financial security for employees.

Gartner provides stock options as part of its employee compensation package. These options typically vest over a period of time, offering employees the opportunity to purchase shares at a set price. Stock options are generally available to senior executives and other key employees.

Health Insurance: Gartner offers comprehensive health insurance options including medical, dental, and vision coverage. Wellness Programs: Includes access to wellness resources, mental health support, and employee assistance programs. Acronyms and Terms: Common terms include HSA (Health Savings Account), FSA (Flexible Spending Account), and EAP (Employee Assistance Program).