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Decoding the Home Equity Line of Credit (HELOC): Weighing the Pros and Cons for Conagra Brands Employees

Healthcare Provider Update: Healthcare Provider for Conagra Brands: For Conagra Brands, the healthcare provider information is typically linked to their employment benefits and can vary based on the location and specific plans offered to employees. Generally, large companies like Conagra may partner with major insurers such as UnitedHealthcare, Anthem (Elevance Health), or Aetna to provide health insurance benefits to their employees. It is advisable for Enrolled members to refer to their HR department or employee benefit documentation for specific provider details. Potential Healthcare Cost Increases in 2026: As we look ahead to 2026, significant increases in healthcare costs are anticipated, largely influenced by the expiration of enhanced federal subsidies under the Affordable Care Act (ACA). Reports indicate that premium rates for ACA marketplace plans could rise by over 60% in certain states due to higher medical expenses and market adjustments. Notably, a staggering 92% of policyholders may face a potential increase in their out-of-pocket premiums by more than 75%, reflecting the compounded effect of expiring subsidies and aggressive rate hikes from leading insurers. This perfect storm may lead to many consumers being priced out of essential healthcare coverage, forcing a reevaluation of their insurance options as financial pressures mount. Click here to learn more

'For Conagra Brands employees, a Home Equity Line of Credit (HELOC) is a great way to tap home equity for convenience and flexibility, but it is important to understand the risks involved, including the variable rates and the fact that you may be putting your home at stake, says Paul Bergeron, a representative of The Retirement Group, a division of Wealth Enhancement Group.'

'A HELOC can indeed be a useful tool for the financial flexibility that Conagra Brands employees may require, but only if it is used correctly to support long-term retirement goals, advises Tyson Mavar, a representative of The Retirement Group, a division of Wealth Enhancement Group.'

In this article, we will be discussing:

1. The advantages and the flexibility of a Home Equity Line of Credit (HELOC).
2. The pros and cons of HELOCs and things to consider before applying for one.
3. Other ways to get financial flexibility instead of a HELOC.

Homeownership, including for those who work for Conagra Brands companies, provides an opportunity to tap the value of the residence. One way of tapping this ownership stake is through a home equity line of credit (HELOC). While a home equity loan provides a lump sum upfront, a HELOC allows you to borrow smaller amounts at a time. This type of borrowing structure is very useful because you are only required to draw the funds you need at any particular time, thus helping you manage your finances better.

It can be used for home repairs, college tuition, or any other purpose you need the money for, and a HELOC can be a useful tool in tapping the equity in your home. HELOCs have other advantages, which include lower APRs than credit cards, the ability to deduct interest payments to the IRS, flexible withdrawals and repayments, and helping to boost your credit score. But there is the other side, and it includes the following: the loan has to be secured by your home, you will stake your home equity, the interest rates may rise, and you might end up accumulating a big balance fast.

Understanding a Home Equity Line of Credit (HELOC)

A HELOC is a type of credit that you can borrow at a time of need. Like credit cards, HELOCs are assets that have a variable interest rate, which means that the monthly payment will change according to the rate at the time of borrowing. Typically, a HELOC has a maximum limit that is tied to the equity in your home. You can choose to take part of it or the whole amount of your line, and you pay interest only on the amount that you have borrowed. For instance, if you have not used any of your credit line, you will not be required to pay principal or interest on the credit line.

Benefits of a Home Equity Line of Credit (HELOC)

If you are a homeowner with a lot of equity in your home, then a HELOC has several benefits that make it worthwhile to consider.

Access to Lower APRs:

Although overall mortgage interest rates have risen significantly since 2022, some of the best HELOC rates are still generally lower than those of credit cards. This makes HELOCs good for debt consolidation or for financing ongoing renovation projects.

Potential Tax Deductions:

The Tax Cuts and Jobs Act of 2017 did not eliminate the ability to deduct the interest on a home equity line of credit (or home equity loan) so long as the money is used to fix the home. To qualify for this deduction, the interest must be used to ‘buy, build or improve the home that is secured by the loan.’ There are certain thresholds and requirements for deductibility and the itemizing of deductions is required.

Flexibility in Borrowing:

The main advantage of a HELOC is that the money can be spent when it is needed. One disadvantage of home equity loans and personal loans is that they provide the borrower with a lump sum amount of money; a HELOC, however, allows the borrower to take money when he or she needs it. This is particularly useful where the amount of money that will be required for the renovation or repair is not well defined because it enables the borrower to make smaller monthly payments if he or she requires less than expected.

Repayment Flexibility:

HELOCs are usually flexible as to the payment of the amounts drawn. The life of your HELOC can also vary based on the amount of money you want to borrow and the lender you are working with. Some HELOCs permit you to make payments during the draw period towards the balance, though.

Potential Credit Score Boost:

A HELOC can help improve your credit score by showing that you make timely and regular monthly payments. Payment history and credit mix are important components of your credit score, and managing a HELOC responsibly can help improve your credit profile.

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Considerations of a Home Equity Line of Credit (HELOC)

Although HELOCs have their advantages, it is crucial to know about the considerations and potential drawbacks that come with them.

Home as Collateral:

When taking a HELOC, you are putting your home on the line. Although this can lead to lower interest rates, it also comes with more risks. Missing monthly payments can have severe consequences as your home is at stake.

Variable Interest Rate:

Home equity loans have a fixed interest rate, while HELOCs have a variable interest rate. This means that your interest rate will change with the Federal Reserve’s actions. Even if you get a HELOC with a low rate, it is important to be ready for the rates to change in the future.

Risk of Overspending:

One of the downsides of HELOCs is the tendency to spend money impulsively because of the freedom that comes with them. During the draw period, which is characterized by interest-only payments, borrowers may draw cash without considering the long-term effects of their actions. When you begin making payments during the repayment period, you may be surprised at the increase in your payments if you haven’t set aside funds or created a budget, as you would during the draw period.

Reduction in Home Equity:

A HELOC is, in fact, a loan that allows you to borrow money from your home equity. You will be paying money to your home equity account when you use a HELOC. As for the home values, there is a possibility that you may end up owing more on your home than it is worth, especially if the housing market is not doing well. Also, having an outstanding HELOC may limit your ability to get more borrowing from your home equity.

HELOC Repayment: How It Works

The repayment of HELOC is quite unique and the required payments and methods of calculating them change over time. Generally, a HELOC has two main phases: The draw period and the repayment period. You are required to make minimum monthly payments of only the interest during the draw period that usually ranges from 5 to 10 years. The amount you are likely to pay will increase every time you withdraw more money from the credit line since the interest will be charged on the higher balance. The payment will also change with the change in the interest rate. Some HELOCs permit you to make payments during the draw period from the balance, though. After the draw period, you transition to the repayment period, which can go up to 20 years. In this phase, you are expected to make payments that will cover the interest and a part of the principal amount. This means that the payment will be different during the draw period and when the draw period ends and the repayment period starts. Although not common, some HELOCs have a balloon payment provision that requires the borrower to make a balloon payment at the end of the draw period to settle the loan. It is, therefore, important to check on the terms of your loan so as not to be caught unawares by a large payment duty.

Alternatives to a Home Equity Line of Credit (HELOC)

However, not everyone may find a HELOC to be the best choice for them. Look at these loan alternatives when choosing the one that is right for you.

Home Equity Loan:

Home equity loan is the same as HELOC, but you will not receive the credit line; you will receive the money in one sum. A home equity loan has a fixed interest rate and a set repayment period, which makes the monthly payments constant. Home equity loans might be suitable for you if you need the money upfront and know how much you need.

Cash-Out Refinance:

A cash-out refinance is when the mortgage is replaced by a new one with a larger balance. This kind of refinance provides you with up to 80 percent of the value of your home in cash. For instance, if your house is $400,000 and you have a balance of $200,000, you can get a cash-out refinance of up to $320,000, which would give you $120,000 in cash (excluding closing costs).

Personal Loan:

A personal loan has a fixed monthly payment, a fixed interest rate, and a lump sum payment. Personal loans are unsecured, and you do not have to put your home on the line to get one. Personal loans have higher rates than home equity products but are easier to apply for, and you can get them online. They are ideal for people who do not want to tap their home equity.

In conclusion, HELOCs are a type of home loan that allows homeowners to tap their home equity, but there are other considerations that should be made before applying for one. As with any other financial product, HELOCs have their pros and cons, which include lower APRs and tax deductions as advantages and the use of your home as collateral, variable interest rates, overspending, and a reduction in home equity as disadvantages. Knowing the specifics of a HELOC’s repayment is important when managing the financial responsibilities that come with the loan. Reviewing other loan options can also help in coming up with the best solution depending on the individual’s needs and circumstances.

Research has been conducted to determine the impact of a HELOC on 60-year-old individuals who are approaching retirement and planning to retire. According to a 2018 study by the National Bureau of Economic Research, retirees who had access to a HELOC used it to cover unexpected expenses or to enhance their financial flexibility during retirement and had better financial security and satisfaction than those without a HELOC. This indicates that a HELOC can be used as an emergency fund and financial tool to help retirees manage unexpected expenses or boost their retirement income. (Source: National Bureau of Economic Research, 2018)

A HELOC can be compared to a personal financial toolbox that people, including retired employees of Conagra Brands companies, can turn to during their retirement. Like a well-stocked toolbox, which is equipped with the right tools for different home improvements, a HELOC provides financial tools that allow people to withdraw money from their home when they need it. It serves as a flexible credit line that can be used for renovations, for unexpected expenses, or to enhance retirement income. However, just as one should handle tools with care and caution, there are some risks and potential problems that should be taken into consideration when using a HELOC. These may include fluctuating interest rates and the fact that the collateral is the homeowner’s home. With this knowledge, people can use HELOC to their advantage to improve their retirement planning and make better decisions concerning their future.

Sources:

1. National Council on Aging (NCOA). 'What Is a Home Equity Line of Credit (HELOC)? A Guide for Older Adults.' National Council on Aging , 9 Jan. 2024, www.ncoa.org/article/what-is-a-home-equity-line-of-credit-heloc .

2. “How to Use a HELOC Strategically in Retirement.” NerdWallet , 5 Oct. 2022, www.nerdwallet.com/article/mortgages/heloc-strategies-retirement .

3. Fidelity Bank. 'A Retiree's Guide to Leveraging Home Equity in NEPA / Lehigh Valley.' Fidelity Bank , 2024, www.fidelitybankpa.com/retirees-guide-helock-lehigh-valley .

4. 'Can You Get a HELOC in Retirement?' Point Blog , 6 Dec. 2024, www.point.com/blog/heloc-retirement-eligibility .

5. CBS News. 'Is a Home Equity Loan or HELOC Safer for Seniors in 2025?' CBS News , 2025, www.cbsnews.com/articles/home-equity-loan-heloc-seniors-2025 .

How does Conagra Brands, Inc. ensure that employees understand their retirement benefits, particularly the nuances of the Conagra Foods Inc. Pension Plan and the historical obligations from the Beatrice Retirement Income Plan (BRIP)? Are there specific communication strategies or resources provided to employees to navigate their eligibility and benefits?

Conagra Brands has not provided consistent documentation of the Beatrice Retirement Income Plan (BRIP), as evidenced by a lost BRIP Plan document, which has created confusion among former Beatrice employees. Conagra relies on internal committees like the Conagra Brands Employee Benefits Administrative Committee to oversee the administration of the Conagra Foods Inc. Pension Plan and the historical obligations from BRIP. However, there are allegations in the class action that Conagra has failed to communicate certain benefit entitlements, particularly the age at which unreduced benefits should commence(Conagra_Brands_Inc_02-1…).

In light of regulatory compliance, what measures does Conagra Brands, Inc. take to maintain the integrity and security of pension plan documents, especially considering the historical loss of the BRIP Plan document? How do the missing documents impact employee knowledge of their benefits?

The loss of the BRIP Plan document represents a significant failure in document retention and regulatory compliance. Under ERISA, Conagra is required to maintain and distribute these documents upon request. The missing BRIP documents have caused discrepancies in the administration of retirement benefits, particularly regarding the age of eligibility for unreduced benefits. Conagra has been criticized for not informing employees that these documents were lost, leading to confusion and underpayment of benefits(Conagra_Brands_Inc_02-1…).

What resources does Conagra Brands, Inc. offer to its employees who have questions about their pension benefits or discrepancies that may arise from the transition from the Beatrice Retirement Income Plan to the Conagra Foods Inc. Pension Plan? How can employees best utilize these resources?

Conagra directs employees to contact the Plan service center for inquiries related to their pension benefits. However, based on the complaints filed in court, there have been issues with transparency and the accessibility of important plan documents, including the BRIP. Employees have had to appeal their benefit decisions and deal with insufficient guidance on navigating the discrepancies between the old BRIP and the Conagra Plan. Resources like benefit calculators and service centers have sometimes provided inaccurate or incomplete information(Conagra_Brands_Inc_02-1…).

How does Conagra Brands, Inc. handle the potential discrepancies regarding the pension benefits related to the age eligibility for receiving unreduced benefits in the context of both the Conagra Plan and the Beatrice plan? What steps have been taken to prevent similar issues in the future?

Conagra has been handling discrepancies poorly, particularly around the age at which participants in the BRIP are entitled to receive unreduced benefits. The company's adjustment of the eligibility age from 60 to 65 without properly consulting or notifying employees has led to underpayment of benefits. The ongoing class action lawsuit seeks to address these discrepancies and prevent future issues by clarifying benefit entitlements under the terms of both plans(Conagra_Brands_Inc_02-1…).

Can you elaborate on the process that Conagra Brands, Inc. utilizes to communicate with employees about plan amendments and to clarify their rights under the Conagra Foods Inc. Pension Plan? What specific improvements have been made to this communication strategy in recent years?

The communication process regarding plan amendments at Conagra has been criticized as insufficient, particularly concerning the transition from the BRIP to the Conagra Plan. Employees have filed complaints about not receiving adequate notice of important changes, such as the shift in eligibility age for unreduced benefits. Conagra has failed to provide clear documentation, leading to confusion among employees. There is no evidence of significant improvements in recent years(Conagra_Brands_Inc_02-1…).

How does Conagra Brands, Inc. ensure compliance with the Employee Retirement Income Security Act (ERISA), especially regarding the fiduciary duties of the Conagra Brands Employee Benefits Administrative Committee? What protocols are in place to guarantee that employeesâ€™ rights are consistently protected?

Conagra's compliance with ERISA has been challenged in court, with allegations of fiduciary breaches related to the loss of critical plan documents like the BRIP. The Conagra Brands Employee Benefits Administrative Committee is responsible for maintaining the integrity of the pension plan, but the loss of documents and failure to notify employees of their rights raise questions about the adequacy of these protocols. The lawsuit highlights a need for improved oversight and adherence to ERISA's fiduciary requirements(Conagra_Brands_Inc_02-1…).

What options are currently available for former Beatrice employees and other participants in the Conagra Foods Inc. Pension Plan to claim benefits they believe they are entitled to? How does Conagra Brands, Inc. facilitate this process?

Former Beatrice employees can contact the Pension Service Center to inquire about their benefits and initiate claims. However, the process has been complicated by missing documentation and conflicting information about eligibility. Some employees have been forced to file legal claims to recover benefits owed to them, as in the case of the ongoing class action lawsuit. The lack of clear and accessible resources has made it difficult for employees to navigate the process effectively(Conagra_Brands_Inc_02-1…).

In what ways does Conagra Brands, Inc. provide support or guidance for employees approaching retirement, particularly in understanding the timelines and responsibilities associated with electing benefits from the Conagra Foods Inc. Pension Plan?

Conagra provides online calculators and service center assistance for employees approaching retirement, but these tools have proven unreliable for some participants. Employees have reported being unable to calculate their benefits accurately or being told they were ineligible for benefits before age 65, despite the terms of the BRIP allowing benefits to begin at age 60. The class action complaint highlights deficiencies in the guidance provided to employees regarding their benefits(Conagra_Brands_Inc_02-1…).

How can employees at Conagra Brands, Inc. contact the Employee Benefits Administrative Committee for inquiries related to their benefits? What are the most efficient avenues for addressing concerns about the Conagra Foods Inc. Pension Plan or the transitions from the Beatrice plan?

Employees can contact the Plan service center for inquiries related to their benefits, but accessing the Employee Benefits Administrative Committee directly appears to be more challenging. The lawsuit indicates that employees seeking to address discrepancies with their benefits have not received timely or effective communication from the committee, often requiring legal action to resolve their concerns(Conagra_Brands_Inc_02-1…).

How does Conagra Brands, Inc. evaluate its pension plan's performance and benefits offerings in relation to industry standards? What methods are used to ensure the company remains competitive while protecting employee benefits under the Conagra Foods Inc. Pension Plan?

There is little publicly available information regarding how Conagra evaluates its pension plan's performance against industry standards. The company's handling of historical pension obligations, particularly from the Beatrice acquisition, suggests that its methods for protecting employee benefits have been insufficient. Ongoing litigation regarding underpayment of benefits and loss of critical documents indicates that the company may need to improve its evaluation methods and compliance efforts to remain competitive(Conagra_Brands_Inc_02-1…).

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

Conagra Brands announced a restructuring plan aiming to streamline operations and reduce costs. This includes layoffs impacting various departments and potential changes to employee benefits.

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For more information you can reach the plan administrator for Conagra Brands at 222 W. Merchandise Mart Plaza Chicago, IL 60654; or by calling them at (312) 549-5000.