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Fortive Employees: Navigating the Complexities of Extended Care Costs in Retirement

Healthcare Provider Update: Fortive Corporation partners with various healthcare providers through its Advanced Healthcare Solutions segment, focusing on delivering mission-critical technologies for medical instruments and healthcare facilities. As of 2025, Fortive is well-positioned to navigate the anticipated shifts in healthcare costs and innovations related to connected workflows. Looking ahead to 2026, healthcare costs are expected to rise significantly, potentially impacting many American families. Record premium increases for Affordable Care Act (ACA) marketplace plans are projected, with some state premiums soaring by over 60%. This surge in costs is largely driven by higher medical expenses, the potential cessation of federal premium subsidies, and increased rates from major insurers. Without congressional action to extend these subsidies, many policyholders could see their premiums spike by up to 75%, highlighting the urgent need for consumers to prepare for these financial changes. Click here to learn more

Addressing the potential risks of extended-term care expenses may be one of the biggest financial challenges for Fortive employees who are developing a retirement strategy.

Seven in ten Fortive employees over age 65 can expect to need extended care services at some point in their lives. So understanding the various types of extended care services – and what those services may cost – is critical as you consider your retirement approach.

What Is Extended Care?

Extended care is not a single activity. It refers to a variety of medical and non–medical services needed by those who have a chronic illness or disability – most commonly associated with aging.

Extended care can include everything from assistance with activities of daily living – help dressing, bathing, using the bathroom, or even driving to the store – to more intensive therapeutic and medical care requiring the services of skilled medical personnel.

Extended care may be provided at home, at a community center, in an assisted living facility, or in a skilled nursing home. And extended care is not exclusively for the elderly; it is possible to need extended care at any age.

How Much Does Extended Care Cost?

Extended care costs vary state by state and region by region. The 2021 national average for care in a skilled care facility (single occupancy in a nursing home) was $108,405 a year. The national average for care in an assisted living center (single occupancy) was $54,000 a year. Home health aides cost a median of $27 per hour, but that rate may increase when a licensed nurse is required.

What Are the Payment Choices?

Often, extended care is provided by family and friends. Providing care can be a burden, however, and the need for assistance tends to increase with age.

Fortive employees who would rather not burden their family and friends have two main choices for covering the cost of extended care: they can choose to self-insure or they can purchase extended care insurance.

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Many self-insure by default – simply because they haven't made other arrangements. Those who self-insure may depend on personal savings and investments to fund any extended care needs. The other approach is to consider purchasing extended care insurance, which can cover all levels of care, from skilled care to custodial care to in-home assistance.

When it comes to addressing your extended care needs, many look to select a strategy that may help them protect assets, preserve dignity, and maintain independence. If those concepts are important to you, consider your approach to extended care.

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What type of retirement plan does Fortive offer to its employees?

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

Does Fortive provide a company match for contributions made to the 401(k) plan?

Yes, Fortive provides a company match on employee contributions to the 401(k) plan, enhancing the overall savings potential.

What is the eligibility requirement to participate in Fortive's 401(k) plan?

Employees are eligible to participate in Fortive's 401(k) plan after completing a specified period of employment, typically 30 days.

Can employees at Fortive choose their contribution percentage to the 401(k) plan?

Yes, employees at Fortive can choose their contribution percentage, allowing for flexibility in saving according to their financial goals.

What investment options are available in Fortive's 401(k) plan?

Fortive's 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.

How often can employees change their contribution amounts to Fortive's 401(k) plan?

Employees can change their contribution amounts to Fortive's 401(k) plan at any time, subject to plan rules and limits.

Does Fortive allow for loans against the 401(k) balance?

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

What happens to my 401(k) account if I leave Fortive?

If you leave Fortive, you can choose to leave your funds in the plan, roll them over to another qualified plan, or withdraw them, subject to tax implications.

Is there a vesting schedule for Fortive's company match in the 401(k) plan?

Yes, Fortive has a vesting schedule for the company match, meaning employees must work for a certain period to fully own the matched contributions.

Can I access my Fortive 401(k) funds in case of financial hardship?

Yes, Fortive allows for hardship withdrawals under certain conditions, following IRS guidelines and plan rules.

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

Fortive offers a defined benefit pension plan, specifically a cash balance plan, which provides a guaranteed retirement benefit based on a formula that combines elements of both traditional defined benefit plans and defined contribution plans. In a cash balance plan, Fortive credits a participant's account with a set percentage of their annual salary, plus interest, which grows over time. Eligibility typically includes full-time employees who meet certain service or age requirements, although specifics can vary based on employment status and tenure. In recent years, Fortive has adapted its cash balance plan to reflect changes in tax laws and interest rate strategies. For instance, in 2022, the company adjusted its plan interest crediting rates to align with prevailing market conditions and IRS regulations. By 2023 and 2024, Fortive continued to refine these rates to ensure compliance with updated tax laws and to optimize the financial performance of the plan.

Restructuring and Layoffs: In early 2024, Fortive announced a significant restructuring initiative aimed at streamlining its operations and reducing operational redundancies. This move resulted in layoffs affecting approximately 5% of its workforce across various divisions. The restructuring is part of Fortive's broader strategy to optimize its portfolio and focus on core growth areas. This is critical to follow given the ongoing economic volatility and investment uncertainties, which may impact both job security and company performance.

In 2022, Fortive granted stock options and RSUs to key employees and executives. Stock options were performance-based, and RSUs were part of long-term incentives. (Source: Fortive 2022 Annual Report, p. 49)

Health Insurance: Fortive offers a range of health insurance options including medical, dental, and vision coverage. The company provides comprehensive coverage plans with options for employees to choose from based on their needs. Wellness Programs: Fortive emphasizes wellness through programs that may include health screenings, fitness reimbursements, and mental health resources. Flexible Spending Accounts (FSAs): Employees can use FSAs for eligible medical expenses. Employee Assistance Programs (EAPs): Access to confidential counseling services for personal and work-related issues. Company Annual Reports or SEC Filings Benefit Details: Recent reports confirm that Fortive provides competitive health benefits in line with industry standards. They continue to offer robust health insurance packages and wellness programs to support employee well-being. Benefit Trends: There has been a focus on enhancing mental health resources and expanding access to telehealth services.

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For more information you can reach the plan administrator for Fortive at , ; or by calling them at .

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