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Southwest Gas Holdings Employees: Is the Russia-Ukraine War a Threat to the Global Economy?

Healthcare Provider Update: Healthcare Provider for Southwest Gas Holdings Southwest Gas Holdings provides healthcare benefits through a variety of insurers, primarily utilizing Aetna for their healthcare plans. This partnership enables employees to access a broad network of healthcare services. Expected Healthcare Cost Increases in 2026 As we approach 2026, healthcare costs are anticipated to soar, significantly impacting those affiliated with Southwest Gas Holdings. This expected surge stems from factors such as the expiration of enhanced federal subsidies for Affordable Care Act (ACA) plans, which could lead to a staggering increase of over 75% in out-of-pocket premiums for many enrollees. Moreover, aggressive rate hikes from major insurers, combined with rising medical costs, suggest that employees and retirees may face a challenging financial landscape in the coming year. Proactive management of health benefits and planning will be crucial for individuals navigating these increasing costs. Click here to learn more

'The global disruptions as a result of the Russia-Ukraine war will impact supply chains, energy prices, and inflation, and this will affect Southwest Gas Holdings employees and retirees; it is important to stay informed and readjust your financial planning accordingly,' said Wesley Boudreaux, a representative of The Retirement Group, a division of Wealth Enhancement Group.

'Southwest Gas Holdings employees and retirees should be aware of the continuing impacts of the war in the food and energy markets and how it may affect their long-term retirement planning and budgeting,” advised Patrick Ray, a representative of The Retirement Group, a division of Wealth Enhancement Group.

In this article, we will discuss:

1. The effects of sanctions on Russia and its economy.

2. How supply shocks, especially in energy and food, affect global markets.

3. The consequences of the events on inflation and economic growth, and the lower-income populations in the world.

Just before Russia invaded Ukraine, most people thought that the economic ties that had been created through globalization would actually help to promote peace. But the war is putting that to the test and, at the same time, exposing the weaknesses in the supply chains that have been extended to the farthest corners of the world – weaknesses that had already been revealed by the pandemic and the recovery.

The United States, European Union (EU), United Kingdom (UK), and other members of their alliances are using financial sanctions to put massive pressure on Russia and its leaders to stop the war after the brutal invasion of Ukraine. But that is likely to come at a great cost to the world economy. This is something that concerns Southwest Gas Holdings employees, retirees, and consumers all over the world.

Punishing Russia:

For the first time in history, Western nations have acted quickly to exclude Russia from the global financial system and trade. Some of Russia’s biggest banks have been kicked out of SWIFT, the system for international bank transfers. Germany has put on hold the launching of a new gas pipeline from Russia while the United States and the United Kingdom have clamped down on Russian oil imports. Hundreds of Western companies have closed shop or exited Russia, the world’s 11th largest economy, either to comply with sanctions or in protest of the war. Some of the rich oligarchs said to be close to the Kremlin have also had their assets frozen or seized.

The effects of the sanctions are clear in Russia where the central bank had to increase its policy rate to 20% and the Russian economy is expected to shrink as much as 10%. Although Russia was recently an integral part of the global community, cutting it off from supply chains and technology could be disastrous for Russian businesses and consumers. It is still unclear whether China will come in to fill the gap left by the West.

Supply Shocks:

Russia is a major supplier of food, energy, metals, and other raw materials, and prices of these commodities are often determined by the law of supply and demand in the global market. Therefore, price increases of some high-demand products have been observed due to supply shocks resulting from the war and sanctions. Russia is a major energy producer and exporter thus the crude oil and natural gas prices have risen since the conflict started mainly due to concerns on supply. The European Union gets about 40% of its natural gas and 25% of its oil from Russia. Thus, any reduction in energy exports from Russia would be impossible to replace and may lead to more shortages in the global market.

Russia is also a leading producer of metals like palladium (used in catalytic converters), platinum, aluminum, copper, and nickel (used in batteries). In addition, the world’s supply of neon gas used in making semiconductors was supplied by Ukrainian companies that have since been closed due to the conflict. Lack of sufficient production of neon elsewhere, shortages are likely to worsen the chip shortage that has been slowing down the generation of new cars, computers, phones, and other electronic products.

Russia and Ukraine are the leading suppliers of wheat to the world market, supplying 30%, corn supplying 17%, barley supplying 32%, and supplying sunflower seed oil 75%. Due to financial sanctions, Russia has been unable to export food, and the war has hindered Ukraine from exporting food. Russia is the world’s largest producer of fertilizer, which accounts for 15% of the global production. Thus, crop production in other parts of the world may be affected by a lack of fertilizer that has increased in price owing to the fact that natural gas is also a source of fertilizer.

Consequently, Southwest Gas Holdings employees, retirees, and consumers across the globe will be able to pay more for their groceries. According to the United Nations, food prices, which are already at a record high, are expected to rise further by 22% due to the war. Egypt and other countries in North Africa, Middle East, and Asia are heavily dependent on grains from Russia and Ukraine. This results in food scarcity and high prices will lead to a significant rise in hunger globally.

Ripple Effects:

Despite the fact that Russia and Ukraine make up only about 2% of the world’s GDP, the war and the resulting high energy prices and supply shocks may affect the global economy, which has not yet recovered from the COVID-19 pandemic. The OECD predicts that in the first year of the war the world economic growth will be 1.1% lower and the prices will be 2.5% higher than without the invasion. The effects will be most pronounced in those countries that have closer trade and financial links with Russia and Ukraine. Accordingly, people with lower incomes will be affected more because food and energy are a higher portion of their spending.

The same OECD report points out that inflation is expected to rise by 2% in the euro area and 1.4% in the United States more than it would have without the war. The OECD expects that 2022 year's economic growth will be lowered by about 1.4% in the euro area and 0.9% in the United States. The humanitarian crisis and the economic disaster in Ukraine that has been caused by Russian aggression are almost impossible to quantify. More than 4 million people have been forced to flee Ukraine and many more could do so. Without external assistance, the burden of accepting the massive refugee influx is likely to place a strain on the financial resources of countries such as Hungary, Moldova, Poland, Romania, and Slovakia.

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In the American continent, however, Europe has closer ties to the Russia-Ukraine conflict, but both economies have seen their inflation rates climb to historical highs. In the coming months, the world’s key central banks will have the difficult task of hiking interest rates high enough to combat inflation without sparking a recession. There could also be long-term effects, including a reconfiguration of global supply chains and less integrated financial systems — something that Southwest Gas Holdings employees and retirees should know about.

Sources:

1. Wikipedia contributors. 'Economic Impact of the Russian Invasion of Ukraine.' Wikipedia , 17 Feb. 2025, https://en.wikipedia.org/wiki/Economic_impact_of_the_Russian_invasion_of_Ukraine . Accessed 17 Feb. 2025.

2. 'Why's the War in Ukraine Still Impacting My Pension?' PensionBee , 24 May 2023, https://www.pensionbee.com/uk/blog/2023/may/ukraine-impact-on-pensions . Accessed 17 Feb. 2025.

3. 'Ukraine War Impacts Still Felt in Energy Markets, Pension Fund Returns.' Pensions & Investments , 24 Feb. 2023, https://www.pionline.com/markets/ukraine-war-impacts-still-felt-energy-markets-pension-fund-returns . Accessed 17 Feb. 2025.

4. 'Russia's Economic Gamble: The Hidden Costs of War-Driven Growth.' Carnegie Endowment for International Peace , 15 Dec. 2024, https://carnegieendowment.org/russia-eurasia/politika/2024/12/russia-economy-difficulties . Accessed 17 Feb. 2025.

5. 'Russia's Putin Announces 10% Hike in Pensions, Minimum Wage.' Reuters , 25 May 2022, https://www.reuters.com/world/europe/russias-putin-announces-10-hike-pensions-minimum-wage-2022-05-25 . Accessed 17 Feb. 2025.

How does the Southwest Carpenters Pension Plan accommodate changes in benefits for employees who have been affected by the COVID-19 pandemic, and what specific provisions have been implemented to ensure continuity of pension credit during such interruptions? Employees of the Southwest Carpenters Pension Plan are particularly encouraged to review how these provisions may impact their retirement plans and benefits, especially given the unprecedented circumstances of the pandemic.

The Southwest Carpenters Pension Plan accommodated changes due to COVID-19 by extending various deadlines for participants, such as the 12-month deadline to apply for pension credit for periods of disability, and other deadlines regarding claims and appeals. These extensions were applied from March 1, 2020, to a period of up to one year after the original deadline or 60 days after the end of the COVID-19 national emergency, ensuring continuity of pension credit during the pandemic interruptions(Southwest Carpenters Pe…).

What enhancements to pension benefit calculations have been introduced for the years following January 1, 2021, under the Southwest Carpenters Pension Plan, and how do these changes affect participants working more than 1,800 hours? This question emphasizes the implications of increased benefit accrual rates and the actual processes employees must follow to calculate their pensions effectively.

Enhancements to pension benefit calculations effective January 1, 2021, under the Southwest Carpenters Pension Plan include an increase in the monthly benefit accrual rate for participants working 1,800 hours or more. The rate increased from $100 to $200, and for those working more than 1,800 hours, a maximum benefit accrual rate of $244.44 was introduced(Southwest Carpenters Pe…).

In the context of the Southwest Carpenters Pension Plan, could you explain the eligibility criteria for receiving a Service Pension and how employees can accumulate the necessary Pension Credits more quickly? This consideration is vital for members who wish to understand the retirement options available to them and the strategies they might employ in their careers to maximize their benefits under the Southwest Carpenters Pension Plan.

Employees of the Southwest Carpenters Pension Plan are eligible for a Service Pension after earning 30 years of Pension Credit. Additional Service Pension Eligibility Credit was introduced, allowing employees working over 1,800 hours annually to accumulate credits more quickly, up to a maximum of 2,200 hours(Southwest Carpenters Pe…).

How do temporary disability benefits interact with the accumulation of Pension Credits within the Southwest Carpenters Pension Plan? Specifically, employees may have questions about how their working history and service time might be affected should they take leave for health-related reasons, highlighting the intricate balance between pay and benefits during challenging times.

Temporary disability benefits under the Southwest Carpenters Pension Plan allow participants to accumulate Pension Credits during non-working periods if they are on short-term disability or receiving workers' compensation. Pension Credits can be granted for up to 1,200 hours annually, depending on the nature of the disability and employment history(Southwest Carpenters Pe…).

What are the implications of the revised definitions under the Required Beginning Date as specified by the Southwest Carpenters Pension Plan, particularly in compliance with the SECURE Act (Setting Every Community Up for Retirement Enhancement Act)? Employees should understand how these legislative changes affect their retirement strategies, especially in light of penalties for failing to comply with mandatory commencement dates.

The Required Beginning Date for the Southwest Carpenters Pension Plan was revised to comply with the SECURE Act. Participants born on or after July 1, 1949, must begin receiving benefits by April 1 of the calendar year following the year they turn 72. Failure to comply with this could result in a 50% excise tax(Southwest Carpenters Pe…).

How can employees of the Southwest Carpenters Pension Plan navigate the process for applying for pension credit during periods of Temporary Disability, and what specific documentation is required? This inquiry encourages a deeper understanding of protocol surrounding disability applications and the associated benefits that participants are entitled to under the Plan.

Employees applying for pension credit during periods of Temporary Disability must submit a written application within one year of the onset of the disability, and provide documentation such as state-approved short-term disability certification or workers' compensation benefits(Southwest Carpenters Pe…).

What are the implications of the retroactive increases to the Southwest Carpenters Pension Plan benefits aimed at participants who accrued credit during the years 2011 to 2020, and how can affected employees determine their eligibility for said increases? Employees often seek clarification on how historical contributions can manifest in current benefits.

Retroactive increases to the Southwest Carpenters Pension Plan benefits for the years 2011 to 2020 apply to participants who worked at least 1,000 hours in 2020 or under specific collective bargaining agreements. A 50% increase in benefit accrual rates was applied to these years, and eligible employees can determine their eligibility based on their hours worked(Southwest Carpenters Pe…).

What role does the Southwest Carpenters Administrative Office play in assisting employees who have questions regarding modifiability in their pension plans, and what are the best methods for contacting them for assistance? This question highlights the importance of communication within the organization concerning employee inquiries and issue resolution.

The Southwest Carpenters Administrative Office assists employees with questions regarding modifications to their pension plans. Participants can contact them at (213) 386-8590 or (800) 293-1370 for personalized assistance(Southwest Carpenters Pe…).

Can you detail the factors influencing the Benefit Accrual Rate for participants of the Southwest Carpenters Pension Plan for the calendar years after 2021, and how might employees calculate their expected pension benefits? Participants will want to understand the nuances of how their benefits are computed to make informed decisions regarding their retirement planning.

The Benefit Accrual Rate for participants of the Southwest Carpenters Pension Plan after 2021 increased to $200 for 1,800 hours worked, with higher accrual rates for additional hours. Employees can calculate their benefits by multiplying their benefit accrual rate by the applicable benefit factor(Southwest Carpenters Pe…).

In the event of legal actions regarding benefits under ERISA against the Southwest Carpenters Pension Plan, what venue restrictions apply, and what does this mean for participants seeking resolution in disputes? Employees need to be informed of the legal frameworks governing their benefits and understand their rights and the procedures that affect their claims within the Southwest Carpenters Pension Plan.

Legal actions regarding benefits under ERISA against the Southwest Carpenters Pension Plan must be filed in Federal District Court in Los Angeles County, California. This venue restriction defines the jurisdiction where participants must file claims(Southwest Carpenters Pe…).