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Discover 9 Surprising Insights About Social Security for XPO Logistics Employees That Could Transform Your Retirement Planning

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Healthcare Provider Update: Healthcare Provider for XPO Logistics XPO Logistics partners with various healthcare insurance providers to offer its employees coverage options, particularly through their employee benefits package. The specific provider may vary depending on geographic location and the chosen plan, but prominent national insurers typically include companies like UnitedHealthcare, Anthem, and Aetna. Anticipated Healthcare Cost Increases in 2026 As health care costs are projected to rise significantly in 2026, XPO Logistics employees may face increases in premiums that could exceed 75% due to expiring federal subsidies under the Affordable Care Act (ACA). Factors contributing to this surge include escalating medical expenses, reported rate hikes by major insurers, and the potential reduction of consumer protections. Employees should prepare for these challenges by reviewing their coverage options and budgeting accordingly, as the combination of heightened costs and reduced support can substantially impact their financial well-being in the coming years. Click here to learn more

Social Security’s been a fact of retirement life ever since it was established in 1935. We all think we know how it works, but how much do you really know? If you work for XPO Logistics, here are nine things that might surprise you.

  1. The Social Security trust fund is huge. At $2.9 trillion at the end of 2018, it exceeds the gross domestic product (GDP) of every economy in the world except the ten largest: China, the European Union, the United States, India, Japan, Germany, Russia, Indonesia, Brazil, and The United Kingdom.
  2. Most workers including those at XPO Logistics are eligible for Social Security benefits, but not all. For example, until 1984, federal government employees were part of the Civil Service Retirement System and were not covered by Social Security.
  3. As an employee of XPO Logisticsk, you don’t have to work long to be eligible. If you were born in 1929 or later, you need to work for 10 or more years to be eligible for benefits.
  4. Benefits are based on an individual’s average earnings during a lifetime of work under the Social Security system. The calculation is based on the 35 highest years of earnings. If an individual has years of low earnings or no earnings, Social Security may count those years to bring the total years to 35.
  5. Those at XPO Logistics may also want to consider how there hasn't always been cost-of-living adjustments (COLA) in Social Security benefits. Before 1975, increasing benefits required an act of Congress; now increases happen automatically, based on the Consumer Price Index. There was a COLA increase of 2.9% in 2019, but there was only an increase of 2% in 2018.
  6. Social Security is a major source of retirement income for 67% of current retirees, including those at XPO Logistics.
  7. Social Security benefits are subject to federal income taxes — but it wasn’t always that way. In 1983, Amendments to the Social Security Act made benefits taxable, starting with the 1984 tax year.
  8. Social Security recipients received a single lump-sum payment from 1937 until 1940. One-time payments were considered “payback” to those people who contributed to the program. Social Security administrators believed these people would not participate long enough to be vested for monthly benefits.
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  10. In January 1937, Earnest Ackerman became the first person in the U.S. to receive a Social Security benefit—a lump sum of 17 cents.

1. Social Security Administration, 2018; CIA World Factbook, 2018
2-5, 7-9. Social Security Administration, 2019
6. Employee Benefit Research Institute, 2018

What is the 401(k) plan offered by XPO Logistics?

The 401(k) plan at XPO Logistics is a retirement savings plan that allows employees to save a portion of their paycheck before taxes are taken out.

How can I enroll in the XPO Logistics 401(k) plan?

Employees can enroll in the XPO Logistics 401(k) plan through the employee benefits portal or by contacting the HR department for assistance.

Does XPO Logistics match contributions to the 401(k) plan?

Yes, XPO Logistics offers a matching contribution to the 401(k) plan, which helps employees maximize their retirement savings.

What is the maximum contribution limit for the XPO Logistics 401(k) plan?

The maximum contribution limit for the XPO Logistics 401(k) plan is determined by the IRS guidelines, which may change annually.

Can I change my contribution percentage to the XPO Logistics 401(k) plan?

Yes, employees can change their contribution percentage to the XPO Logistics 401(k) plan at any time through the employee benefits portal.

When can I start withdrawing from my XPO Logistics 401(k) plan?

Employees can typically start withdrawing from their XPO Logistics 401(k) plan without penalties after reaching the age of 59½.

What investment options are available in the XPO Logistics 401(k) plan?

The XPO Logistics 401(k) plan offers a variety of investment options, including mutual funds, stocks, and bonds, allowing employees to choose based on their risk tolerance.

Is there a vesting schedule for the XPO Logistics 401(k) plan?

Yes, XPO Logistics has a vesting schedule for employer contributions, which means employees must work for a certain period to fully own the employer's match.

How often can I change my investment options in the XPO Logistics 401(k) plan?

Employees can change their investment options in the XPO Logistics 401(k) plan as often as they like, typically on a quarterly basis.

What happens to my XPO Logistics 401(k) plan if I leave the company?

If you leave XPO Logistics, you can choose to leave your funds in the plan, roll them over to another retirement account, or cash them out, subject to taxes and penalties.

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For more information you can reach the plan administrator for XPO Logistics at Five American Ln. Greenwich, CT 6831; or by calling them at 844-742-5976.

*Please see disclaimer for more information

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