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

Healthcare Provider Update: HNI Corporation offers health insurance coverage to its U.S. employees through medical, dental, and vision plans, along with prescription benefits. The company provides Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) with employer contributions, as well as company-paid life and disability insurance. Preventive care and wellness programs are also included. HNI Corporation Healthcare costs in the United States are projected to continue rising through 2026, with insurers proposing significant premium increases for Affordable Care Act (ACA) plans. A recent analysis found that ACA insurers are seeking a median premium increase of 15% for 2026, marking the largest hike since 2018. This surge is attributed to factors such as the anticipated expiration of enhanced premium tax credits, rising medical costsincluding expensive medications and increased hospital staysand a shift in the risk pool towards higher-cost enrollees. Without the renewal of enhanced subsidies, out-of-pocket premiums for ACA marketplace enrollees could increase by more than 75% on average. Click here to learn more

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

Seven in ten HNI 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.

HNI 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.

GenWorth.com, 2022

ACL.gov, 2022

What is the HNI 401(k) plan?

The HNI 401(k) plan is a retirement savings plan that allows employees to save a portion of their paycheck before taxes are taken out, helping them prepare for retirement.

How does HNI match contributions to the 401(k) plan?

HNI offers a matching contribution up to a certain percentage of employee contributions, which helps to enhance the overall retirement savings.

When can I enroll in HNI's 401(k) plan?

Employees can enroll in HNI's 401(k) plan during the initial onboarding process or during the annual open enrollment period.

What are the eligibility requirements for HNI's 401(k) plan?

To be eligible for HNI's 401(k) plan, employees typically need to meet certain criteria, such as being a full-time employee and completing a specified period of service.

Can I change my contribution rate to HNI's 401(k) plan?

Yes, employees can change their contribution rate to HNI's 401(k) plan at any time, subject to plan rules.

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

HNI'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.

Does HNI provide financial education resources for employees regarding the 401(k) plan?

Yes, HNI provides financial education resources and tools to help employees make informed decisions about their 401(k) savings.

What happens to my HNI 401(k) if I leave the company?

If you leave HNI, you have several options for your 401(k), including rolling it over to a new employer’s plan, an IRA, or cashing it out (though cashing out may have tax implications).

Is there a loan option available through HNI's 401(k) plan?

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

How often can I access my HNI 401(k) account statements?

Employees can access their HNI 401(k) account statements online, typically on a quarterly basis, or they can request them as needed.

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

HNI Corporation provides both a 401(k) plan and a pension plan for its employees. HNI's 401(k) plan offers a company match where employees can contribute to their retirement savings. The match formula includes 100% matching on the first 1-3% of employee contributions, and 50% matching on the next 2%. This means HNI will match up to a maximum of 4% of an employee’s contributions, as long as the employee contributes at least 5% (PlanPerfect). The HNI pension plan is a defined benefit plan that requires employees to meet specific service and age qualifications. Employees typically need to complete one year of service before they are eligible for the pension plan. The pension formula is based on the employee’s final average pay and years of service. The specific name of the pension plan is "HNI Defined Benefit Pension Plan," and it applies to employees who meet the age and service requirements set forth by the company

In early 2024, HNI Corporation announced a significant restructuring plan aimed at streamlining its operations and reducing costs. The company will be implementing layoffs affecting approximately 5% of its workforce. This move is part of a broader strategy to enhance operational efficiency and adapt to changing market conditions. Given the current economic climate, where companies are re-evaluating their cost structures amidst economic uncertainty, it is crucial for affected employees and stakeholders to stay informed about these changes. Additionally, the restructuring may impact company benefits and pension plans, necessitating close attention to any modifications in these areas.

Stock Options and RSU Acronyms Identify the acronyms used for stock options and RSUs. Provide details on how these options and units are structured and allocated. Company-Specific Details Review HNI Corporation’s stock options and RSUs for the years 2022, 2023, and 2024. Determine who is eligible for these benefits. Source and Documentation Include specific sources and page numbers for verification.

Official HNI Corporation Website Health Benefits Overview: HNI’s official website typically provides an overview of its employee benefits, including health insurance, dental and vision coverage, and wellness programs. Key Terms: Health Savings Account (HSA), Flexible Spending Account (FSA), Premiums, Deductibles, Coinsurance, Out-of-Pocket Maximums. Glassdoor Employee Reviews: Employees often review benefits on Glassdoor, detailing their experiences with HNI’s health insurance plans, including the quality of the plans and any changes over the years. Key Terms: PPO (Preferred Provider Organization), HMO (Health Maintenance Organization), Copays, Network Coverage.

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

https://www.fidelity.com/learning-center/personal-finance/retirement/company-stock https://www.kitces.com/blog/net-unrealized-appreciation-irs-rules-nua-from-401k-and-esop-plans/ https://creativeplanning.com/insights/financial-planning/how-to-use-the-net-unrealized-appreciation-nua-strategy-in-your-401k/ https://www.planperfectretirement.com/yearly-retirement-plan-contribution-limits/