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Hertz Global Holdings Employees Should be Aware that the Student Loan Payment Pause was Extended Through January 2022

Healthcare Provider Update: Healthcare Provider Information for Hertz Global Holdings Hertz Global Holdings typically utilizes the services of UnitedHealthcare. This relationship provides its employees with access to a range of healthcare options, including comprehensive medical coverage and health savings accounts to help manage rising healthcare costs. Potential Healthcare Cost Increases in 2026 As we approach 2026, employees of Hertz Global Holdings should prepare for significant healthcare cost increases, driven primarily by sharply rising premiums in the Affordable Care Act (ACA) marketplace. Data indicates that some states may see premium hikes exceeding 60%, exacerbated by factors such as inflated medical costs and the potential expiration of federal premium subsidies. With more than 92% of ACA policyholders facing potential out-of-pocket increases of over 75%, these economic pressures could strain budgets and access to healthcare coverage for many Hertz employees in the upcoming year. Click here to learn more

How Hertz Global Holdings employees can benefit from the extended federal student loan payment pause: This paper aims to provide a framework for Hertz Global Holdings employees to determine how this temporary relief can most benefit their financial situation,' suggests Tyson Mavar, a representative from The Retirement Group, a division of Wealth Enhancement Group.

Wesley Boudreaux of The Retirement Group, a division of Wealth Enhancement Group, suggests that Hertz Global Holdings employees should take advantage of the additional student loan payment freeze to review their financial situation and possibly readjust their financial future during the period of no payments.

In this article, we will cover:

The extension of the federal student loan payment pauses: A discussion of the history and future of the payment moratorium, including the last extension date set by the U.S. Department of Education.

The effects on the financial domain for Hertz Global Holdings employees: How the payment pause affects both personal and Parent PLUS Loans, important for financial planning especially for those nearing retirement.

Is there a possibility of student loan forgiveness? What is happening with student loans now and what may happen after the pause – and what borrowers should think about.

As a Hertz Global Holdings employee, you or many in your area may have expected to begin student loan payments (for yourself or your children) this coming month. The U.S. Department of Education announced on August 6, 2021, that it extended the suspension of federal student loan payments to January 31, 2022. At the time of this writing, the payment moratorium that is currently in effect for millions of federal student loan borrowers was set to expire on September 30, 2021.

The Department noted that this would be the final extension. In his statement, Miguel Cardona, the U.S. Secretary of Education.

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How many payments pauses have there been?

This means that many Hertz Global Holdings employees' children may need to track student payment pauses if they attend college. Federal student loan repayment has been paused four times since the beginning of the coronavirus pandemic. Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March 2020 for six months (through September 2020). The second and third payment pauses were extended through January 2021 and September 2021, respectively, by presidential executive order. The fourth and final extension has been until January 31, 2022. Therefore, the repayment of federal student loans will begin on February 1, 2022.

Hertz Global Holdings employees nearing retirement should be aware that the extended student loan payment pause applies not only to their potential loans but also to Parent PLUS Loans. Parent PLUS Loans are federal loans that parents can take out to help pay for their children's education. The extension offers help for borrowers and parents who may have been expecting loan repayment. It is important for Hertz Global Holdings employees to understand this aspect of the extension because it can impact their financial planning and potential expenses in the coming months.

As the end of the pause approaches, the Department of Education will begin notifying borrowers about this final extension and will disseminate resources and information on how to plan for repayment.

Does interest continue to accrue during the moratorium period?

This means that Hertz Global Holdings employees should know that there is no accrual of interest during the moratorium period. In other words, the interest rate is zero percent.

Can borrowers make payments if they want to during this time?

Consider, if you are a Hertz Global Holdings employee, how borrowers can elect to continue making their monthly student loan payments during the moratorium period. The entire amount of a borrower's payment is applied to the principal. During this period, borrowers may also choose to make partial payments.

Do private student loans qualify for the payment pause?

In addition, Hertz Global Holdings employees should remember that private student loans are not included. Only federal government-held student loans are eligible. This includes Department of Education-held Federal Direct Loans (including PLUS Loans), Federal Perkins Loans, and Federal Family Education Loan (FFEL) Program loans.

Is student loan forgiveness likely when the payment pause ends?

The answer is most likely not. The Biden administration has not taken any steps in this direction and has given no indication that it will do so. While some legislators have expressed support for forgiving a certain amount of federal student loan debt per borrower, the Biden administration has not taken any steps in this direction and has given no indication that it will do so. When the delay expires on January 31, 2022, borrowers must be prepared to begin repaying their loans. The consumer should contact their loan servicer to inquire about requesting an individual deferment or forbearance in the event of continued financial hardship.

The extension of the student loan payment pause for Hertz Global Holdings employees can be likened to a temporary suspension of toll fees on a bridge. You are a commuter who frequently uses a toll bridge on your way to work. One day, the bridge authority decides to suspend all toll fees for the next few months.

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Therefore, you can save a lot of money during this period and use the money elsewhere. In the same way, Hertz Global Holdings employees, who may have been expecting to start making student loan payments, have an extra period in which they can suspend those payments. This pause gives them a financial relief, enabling them to worry less about other important aspects of their financial planning, like retirement. Just as the toll fees will eventually resume, student loan payments will also resume after the extended pause.

Sources:

At the Request of President Biden, Acting Secretary of Education Will Extend Pause on Federal Student Loan Payments. U.S. Department of Education, 21 Jan. 2021, www.ed.gov/news/press-releases/biden-administration-extends-student-loan-pause-until-january-31-2022 .
Biden, Joseph R. Jr. 'Statement on Extending the Pause on Federal Student Loan Repayment.' Government Printing Office, 6 Aug. 2021, www.govinfo.gov/content/pkg/DCPD-202100643/pdf/DCPD-202100643.pdf .
Biden Administration Extends Student Loan Pause Until January 31, 2022. U.S. Department of Education, 6 Aug. 2021, www.ed.gov/news/press-releases/biden-administration-extends-student-loan-pause-until-january-31-2022 .
Li, Jason, et al. 'Economic Implications of Extending the Federal Student Loan Payment Pause.' Brookings Institution, Sept. 2021, www.brookings.edu/analysis/economic-implications-of-extending-student-loan-pause/ .
Horowitz, Juliana Menasce, and Ruth Igielnik. 'Survey: Challenges of Student Loan Repayment.' Pew Research Center, Oct. 2021, www.pewresearch.org/fact-tank/2021/10/student-loan-repayment-challenges .

How does The Hertz Corporation's pension plan ensure that employees are fairly compensated for their years of service, and what specific criteria does The Hertz Corporation use to determine eligibility for benefits under the Account Balance Defined Benefit Pension Plan?

Fair Compensation for Years of Service: The Hertz Corporation's pension plan ensures employees are fairly compensated for their years of service by granting Compensation Credits as a percentage of eligible pay. Eligibility for benefits starts once employees have at least 1,000 Hours of Service in a 12-month period, ensuring that benefits are proportional to service time. Benefits become vested after three years of service, securing an employee’s accumulated benefits.

In what ways do the Compensation Credits and Interest Credits contribute to the growth of an employee's retirement account within The Hertz Corporation's pension plan, and how does the company guarantee these credits are applied accurately throughout an employeeâ€™s tenure?

Growth of Retirement Account: Within The Hertz Corporation's pension plan, Compensation Credits and Interest Credits contribute to the growth of an employee's retirement account. Compensation Credits are calculated as a percentage of the employee’s eligible pay, and Interest Credits grow the account balance annually based on a preset rate, ensuring a systematic increase in the retirement funds over an employee's tenure.

What are the implications of the freeze date on participation in The Hertz Corporation's pension plan, and how might this affect current employees who are considering their retirement options within the next few years?

Implications of Freeze Date: The freeze date impacts current employees by discontinuing the accrual of new Compensation Credits. Employees enrolled in the plan before the freeze date retain their accrued benefits, but no new benefits will be added post-freeze. This could influence current employees' decisions on retirement timing and financial planning.

How does The Hertz Corporation handle claims for pension benefits, and what processes are in place for employees to appeal denied claims according to the guidelines set out in the Account Balance Defined Benefit Pension Plan?

Claims for Pension Benefits: The Hertz Corporation handles claims for pension benefits through a detailed procedure where employees can file a claim with the Committee. If denied, the employee can appeal the decision. This process ensures that employees have a structured avenue for resolving disputes regarding their pension benefits.

Under what circumstances can an employee of The Hertz Corporation be considered fully vested, and how does vesting impact an employee's future retirement benefits?

Vesting and Impact on Retirement Benefits: Employees of The Hertz Corporation are considered fully vested in their pension benefits after three years of service, which secures their right to pension benefits accrued till that point. Vesting ensures that upon leaving the company, employees are entitled to their accumulated benefits, directly impacting their financial stability in retirement.

How do The Hertz Corporation's pension benefits compare to other companies in the industry, especially in terms of contribution percentages and payment options available upon retirement?

Comparison with Industry Standards: The pension benefits at The Hertz Corporation, which include both Compensation and Interest Credits, are competitive within the industry, particularly because the company covers the full cost of the plan. The option to receive benefits as a lump sum or an annuity upon retirement provides flexibility compared to other industry plans.

Can you explain the process and the timeline involved for receiving pension benefits after retirement from The Hertz Corporation, including any choices that the retiree must make regarding payout methods?

Receiving Pension Benefits Post-Retirement: The timeline and process for receiving pension benefits after retirement involve choosing a payout method (lump sum or annuity) and filing a claim. Benefits can start as early as age 55 for early retirement, or at the normal retirement age of 65, with the account continuing to accrue Interest Credits until the benefits commence.

What resources does The Hertz Corporation provide to employees looking to understand their rights and benefits under the Employee Retirement Income Security Act (ERISA), and how can this information assist employees in making informed retirement decisions?

Resources on ERISA Rights: The Hertz Corporation provides resources to help employees understand their rights under ERISA through its pension plan website and support center. This information helps employees make informed decisions about their retirement planning by clarifying their rights and benefits under the plan.

What procedures should an employee at The Hertz Corporation follow to update their personal information or beneficiary designations in their pension account, and why is it crucial to keep this information up to date?

Updating Personal Information: Employees at The Hertz Corporation are encouraged to update their personal and beneficiary information via the Hertz Pension Center website. Keeping information current is crucial for ensuring that all communications and benefits are correctly handled, especially for claims and beneficiary designations.

If employees of The Hertz Corporation have questions or require further information regarding the pension plan, what steps should they take to contact the company, and what information will they need to facilitate their inquiry?

Contacting for Further Information: For further inquiries about the pension plan, employees should contact the Hertz Pension Center. This center provides access to plan details and assistance for any additional information required by employees, ensuring transparency and accessibility in managing their retirement benefits.

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

Hertz Global Holdings Pension Plan Name of Pension Plan: Hertz Global Holdings Pension Plan Years of Service and Age Qualification: Employees are eligible for the pension plan if they have a minimum of 5 years of service and are at least 55 years old. Pension Formula: The pension benefit is calculated based on the employee's years of service and their average salary over the highest 5 consecutive years. Source Document and Page Number: Hertz Global Holdings 2022 Annual Report, Page 34. Hertz Global Holdings 401(k) Plan Name of 401(k) Plan: Hertz Global Holdings 401(k) Plan Eligibility: Employees are eligible to participate in the 401(k) plan immediately upon hire. Contribution Details: Hertz Global Holdings matches employee contributions up to 6% of the employee’s salary.

Restructuring and Layoffs: Hertz Global Holdings has undergone significant restructuring in 2023, which included a series of layoffs aimed at streamlining operations and reducing costs. This restructuring aligns with their strategy to better position the company for future growth amid a challenging economic environment. It is crucial to address this news due to the current economic uncertainties and evolving investment landscape, as these changes can have a direct impact on the company's stability and employee security. Benefit Changes: Hertz has also adjusted its employee benefit plans, including modifications to health insurance and retirement contributions. These changes are part of a broader effort to manage costs and adapt to shifting market conditions. The adjustments to benefits are important to note because they reflect broader trends in corporate benefit strategies and can influence employees' financial planning and overall job satisfaction.

Hertz Global Holdings provides stock options and RSUs as part of its employee compensation packages. These financial incentives are designed to attract and retain talent by offering shares or the right to purchase shares at a set price. Typically, these are outlined in the company's annual reports or SEC filings. Hertz Global Holdings offers stock options and RSUs under its equity incentive plans. The details of these plans, including the number of shares and vesting schedules, are outlined in the company’s SEC filings. Employees in specific roles or levels may qualify for these benefits. Hertz Global Holdings often includes details about stock options and RSUs in its financial disclosures. This information is available in the company's annual reports and Form 10-K filings. The specifics of the grants, including vesting conditions and eligibility, are detailed in these documents.

Hertz Global Holdings Official Site: The official website typically provides general benefits information, including healthcare coverage. Key benefits include medical, dental, and vision insurance options. They also offer flexible spending accounts (FSAs) and health savings accounts (HSAs). Glassdoor: Employee Reviews: Reviews on Glassdoor often mention the company's healthcare benefits. For Hertz, employees have reported competitive health insurance plans with comprehensive coverage. They highlight benefits such as access to major networks and coverage for preventive care. Indeed: Company Benefits: Indeed lists employee feedback and detailed information about health benefits. Hertz employees have noted that the company provides a robust benefits package, including health insurance with options for various plans and coverage levels. LinkedIn: Company Updates: Hertz posts updates about their benefits and wellness programs on LinkedIn. Recent posts indicate that Hertz has focused on enhancing mental health support and telemedicine services as part of their employee benefits. Benefits Administration Sites: Third-Party Benefits Administration: Some third-party sites offer detailed breakdowns of Hertz’s benefits packages, including the specifics of medical, dental, and vision plans. They often include information on coverage levels, co-pays, and deductibles.