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Essential Steps for Medtronic PLC Employees: Planning for the Future of a Child with Disabilities

Parents employed in Medtronic PLC may relate to how raising a child is expensive and can cost a quarter of a million dollars, not including college. For a child with special needs, that cost can more than double.1 If you’re the parent of a special needs child, it’s vital to ensure your child will continue to be provided for after you’re gone. It can be difficult to contemplate, but with patience, love, and perseverance, a long-term strategy is attainable and can help bring some peace of mind.

Envisioning a Life Without You

Just as every child with special needs is unique, so too are the challenges facing their families when planning for the long term. As an employee of Medtronic PLC, you must think about the potential needs of your child. Will they require daily custodial care? Ongoing medical treatments? Will your child live alone or in a group home? Can family members assume some of the care? Answers to these and other questions can help form the vision of what may need to be done to plan for your child’s care.

Planning Your Estate

Without proper planning, your child’s lifetime needs can quickly outstrip your funds. With that under consideration, those in Medtronic PLC may want to consider government benefits, such as Supplemental Security Income (SSI) and Medicaid, which your child may qualify for depending on their situation. Because such government programs have low-asset thresholds for qualification, you may want to consider whether to make property transfers to your special needs child.

As an employee of Medtronic PLC, you should also make sure you have an up-to-date will that reflects your wishes. Consider creating a special needs trust, the assets of which can be structured to fund your child’s care without disqualifying them from government assistance.2

Involve the Family

All affected family members should be involved in the decision-making process. If at all possible, it’s best to have a united front of surviving family members to care for your child after you’ve passed on.

Identify a Caregiver

In order for a caregiver to make financial and health care decisions after your child reaches adulthood, the caregiver must be appointed as a guardian. Those in Medtronic PLC may want to consider how this can take time, so start setting this in motion as soon as you can amidst your busy work schedule.

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To do this, you can write a “Letter of Intent” to the caregiver and family to express your wishes along with information about your child’s care. Medtronic PLC parents must acknowledge that although this isn’t a legal document, it may help to communicate your desires. Store this letter alongside your will, in a safe place.

Medtronic PLC parents must understand that planning for a child with special needs can be complicated and overwhelming, but you don’t have to do it alone. Working with loved ones and qualified professionals can help you navigate the various facets of this challenge. If we can help, please don’t hesitate to reach out.

1. Policygenius, 2019
2. Using a trust involves a complex set of tax rules and regulations. Before moving forward with a trust, consider working with a professional who is familiar with the rules and regulations.

What are the eligibility requirements for the Medtronic Retirement Plan, and how do they apply to employees who were hired before and after the cut-off date of January 1, 2016? Employees need to understand these nuances, as they affect the types of retirement benefits they may be entitled to under the Medtronic Retirement Plan.

Eligibility Requirements: Employees hired before January 1, 2016, may be eligible for either the Final Average Pay Pension or the Personal Pension Account benefit, depending on their hire date. Employees hired or rehired after January 1, 2016, are not eligible for the Medtronic Retirement Plan(Medtronic_2016_June_Ret…).

How does the vesting process work for benefits accrued under the two types of pension benefits offered by Medtronic, namely the Final Average Pay Pension and the Personal Pension Account? Understanding how long employees need to stay with Medtronic to secure their benefits can influence their retirement decisions.

Vesting Process: The Final Average Pay Pension benefit becomes nonforfeitable after five years of service or reaching age 62, while the Personal Pension Account becomes vested after three years of service(Medtronic_2016_June_Ret…).

Can Medtronic employees expect any differences in the way their pension benefits are calculated if they decide to retire early versus waiting until normal retirement age? It's crucial for employees to know how early retirement might impact their payouts from the Medtronic Retirement Plan.

Early vs. Normal Retirement Calculation: Early retirement benefits under the Final Average Pay Pension will be reduced based on the age at retirement. For example, at age 55, employees receive 50% of the normal benefit(Medtronic_2016_June_Ret…).

In what ways can Medtronic employees maximize their Personal Pension Account benefits, especially regarding contributions and interest credits during their employment? Employees should consider strategies that could enhance the value of their retirement accounts when retiring from Medtronic.

Maximizing Personal Pension Account: Medtronic credits 5% of eligible compensation annually to the Personal Pension Account, which also accrues interest based on the 10-year U.S. Treasury rates(Medtronic_2016_June_Ret…).

How do the various forms of retirement benefit payments, such as annuities and lump sums, work within the Medtronic Retirement Plan? Employees must comprehend each option's benefits and drawbacks to make informed decisions about their retirement payouts.

Benefit Payment Options: Employees can choose between receiving their pension as a single life annuity, joint and survivor annuity, or a lump sum payment depending on their circumstances(Medtronic_2016_June_Ret…).

What protections does the Medtronic Retirement Plan offer regarding spousal benefits and qualified domestic relations orders (QDROs)? This understanding is particularly important for employees who may go through life changes, such as marriage or divorce.

Spousal Benefits and QDROs: The plan provides protections for spousal benefits, including joint and survivor annuities. QDROs may mandate the division of pension benefits in the case of divorce(Medtronic_2016_June_Ret…)(Medtronic_2016_June_Ret…).

How can employees ensure they receive all the necessary forms and meet the deadlines required to initiate their retirement benefits from Medtronic? The efficiency in this process is key for a smooth transition into retirement.

Forms and Deadlines for Retirement Benefits: Employees must contact the Retirement Service Center and submit required forms within 180 days of retirement to start receiving their benefits(Medtronic_2016_June_Ret…).

What specific steps should employees take if they receive a benefit denial or feel that they have been underpaid by the Medtronic Retirement Plan? Knowing their rights and the process for appealing decisions is essential for protecting their financial interests.

Handling Benefit Denials: Employees can appeal a benefit denial by submitting a written claim to the Plan Administrator within one year of discovering the issue. A formal appeals process is in place(Medtronic_2016_June_Ret…).

How does the Medtronic Retirement Plan guarantee the protection of pension benefits in the event of plan termination or underfunding? Employees will want clarity on how their pensions are safeguarded against uncertainties that could affect their retirement security.

Plan Termination Protections: The Medtronic Retirement Plan is insured by the Pension Benefit Guaranty Corporation (PBGC), which protects pension benefits in the event of plan termination(Medtronic_2016_June_Ret…).

For employees seeking additional information or clarification about their retirement benefits with Medtronic, what are the best ways to contact the Retirement Service Center? Establishing contact routes can assist employees in navigating their retirement planning effectively.

Contacting the Retirement Service Center: Employees can reach the Retirement Service Center for assistance by calling 1-844-335-9042 or visiting retirement.medtronic.com(Medtronic_2016_June_Ret…).