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Healthcare Provider Update: Healthcare Provider for Caterpillar: Caterpillar Inc. primarily offers its employees healthcare benefits through various providers, including Blue Cross Blue Shield, Cigna, and UnitedHealthcare. These providers typically offer a range of healthcare plans catering to the diverse needs of Caterpillar's workforce. Potential Healthcare Cost Increases in 2026: As healthcare costs rise, Caterpillar may face significant increases in its healthcare expenditures in 2026. The anticipated uptick in Affordable Care Act (ACA) premiums could lead to an inflationary impact on company-sponsored health plans, with reports suggesting that companies like Caterpillar might see costs soar due to a perfect storm of increasing medical expenses and the potential expiration of enhanced federal premium subsidies. Consequently, the company could experience upwards of 8.5% in healthcare cost increases in 2026, reflecting broader industry trends and putting additional pressure on corporate healthcare budgets. Click here to learn more
'History shows that investors typically benefit most from staying disciplined with long-term strategies rather than reacting to political shifts, as broader economic forces consistently outweigh election cycles.' – Paul Bergeron, a representative of The Retirement Group, a division of Wealth Enhancement.
'Decades of market history remind Caterpillar employees that steady commitment to long-term strategies has consistently outperformed attempts to shift course based on election results.' – Tyson Mavar, a representative of The Retirement Group, a division of Wealth Enhancement.
In this article we will cover:
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How stock market performance has varied under different U.S. presidents.
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Why election outcomes have historically mattered less than long‑term economic trends.
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Insights for Fortune 500 employees on maintaining disciplined investing.
Since its inception in 1957, the S&P 500 has returned an average of 9.3% annually under Democratic presidents and 10.2% under Republican presidents. 1 However, its median one-year returns averaged 12.9% under Democratic presidents and 9.9% under Republican presidents. 1 Although certain extreme cases skew the figures, the prevailing narrative is that markets have steadily grown under nearly every administration. For Fortune 500 employees, the key point is that trying to time investments around elections has historically underperformed, as broader forces such as innovation, monetary policy, and global events play a much larger role. Over time, staying invested has delivered nearly 10% annual returns 2 —far more impactful than wagering on red or blue.
Overview
Over almost a century, the U.S. stock market has experienced dramatic fluctuations. This analysis examines returns from one inauguration to the next, tracking S&P 500 performance by presidential term between 1926 and 2024. For Fortune 500 investors observing the market, the long‑term trend remains firmly upward, despite recessions, wars, or recoveries affecting short‑term results.
The Great Depression and the Roaring Twenties (Coolidge and Hoover)
The roaring 1920s ended under President Calvin Coolidge with substantial market growth, as the S&P 500 proxy rose about 26.1% annually from 1923 to 1929. 3 The boom ended abruptly with the 1929 crash, leading into the Great Depression. Herbert Hoover’s tenure saw a 77% market collapse 3 —one of the worst in history.
The 1950s Postwar Boom (Dwight D. Eisenhower)
The 1950s marked a period of steady economic expansion, driven by infrastructure investment and an expanding middle class under Dwight D. Eisenhower. By 1961, the market had nearly doubled. 3
The Tech Boom of the 1990s (Bill Clinton)
From 1993 to 2001, under President Clinton, the S&P 500 returned approximately 15% annually and climbed nearly 210% overall. 3 This coincided with a surge in innovation and technology. The broader market rally positioned companies like Fortune 500 as significant players as the economy surged.
George W. Bush, Boom, Bust, and Crisis in the 2000s
George W. Bush assumed office during the dot‑com collapse. From 2000 to 2002, the S&P 500 fell roughly 50%. 3 Though a mid‑decade recovery took place, the 2008 financial crisis erased years of gains, resulting in negative returns for Bush’s presidency. For Fortune 500 employees, this period is remembered for energy price shocks and sharp volatility, highlighting the impact of global market forces.
Following 2008, a Bull Market and Recovery (Barack Obama)
Assuming office in January 2009 amidst the Great Recession, President Obama presided over a market rebound spurred by stimulus measures. The S&P 500 rebounded strongly, making Obama one of the most effective market performers of the contemporary era. Investors learned that long‑term positioning matters deeply—even in downturns.
Volatility and Tax Cuts in the Late 2010s (Donald Trump)
Between 2017 and 2021, during Trump’s presidency, the S&P 500 advanced about 68% overall, or roughly 13.6% annually. 3 Despite political unpredictability, markets continued upward, demonstrating again that investors benefit most from disciplined consistency rather than speculation.
Joe Biden’s “Pandemic Crash and Rebound”
Biden took office in 2021 as markets were recovering from pandemic‐related declines. The S&P 500 rose 28.5% in 2021, declined 18% in 2022 amid inflation, then gained 26% in 2023 and 25% in 2024. 4 With an annualized return of 11.9% during his tenure, Biden's term marked near-record stock market returns. 3 For Fortune 500 employees, this underscores how market resilience reflects wider economic cycles.
Party-wise Market Performance: Democrats vs. Republicans
Since its inception in 1957, the S&P 500 has returned an average of 9.3% annually under Democratic presidents and 10.2% under Republican presidents. 1 Historically, shifting investment based on election outcomes has underperformed. For Fortune 500 investors, this suggests that long‑term commitment outweighs election‑driven tactics.
In Conclusion
History demonstrates that market outcomes depend far more on innovation, economic cycles, and global dynamics than on who’s in the White House. While Democrats have overseen some of the strongest rallies, Republican administrations have also seen major gains. For Fortune 500 employees, the message is clear: disciplined investing and staying the course have historically produced the best results, irrespective of political turnover.
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- How Are Workers Impacted by Inflation & Rising Interest Rates?
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Sources:
1. The Motley Fool. ' Here's the Average Stock Market Return Under Democratic and Republican Presidents ,' by Trevor Jennewine. July 5, 2024.
2. nerdwallet. ' What Is the Average Stock Market Return? ' by James Royal. July 25, 2025.
3. Kiplinger. ' The Best and Worst Presidents (According to the Stock Market) ,' by C.L. Sizemore. July 3, 2025.
4. Stern NYU. ' Historical Returns on Stocks, Bonds and Bills: 1928-2024 .' January 2025.
How does the transition from the Solar Plan to the Caterpillar Inc. Retirement Income Plan impact current or former employees of Caterpillar Inc. in terms of retirement benefits and service credits? Considering both plans' differences, what aspects should employees of Caterpillar Inc. understand to ensure they are maximizing their retirement benefits under this merged structure?
Transition from Solar Plan to Caterpillar Inc. Retirement Income Plan: The transition from the Solar Plan to the Caterpillar Inc. Retirement Income Plan maintained the benefits of those previously covered under the Solar Plan without impact. Both plans allowed the continuation of prior service credits and the incorporation of benefits payable under previous retirement plans. For current or former employees, understanding the nuances of how prior service credits and benefits are integrated can maximize their retirement benefits under the merged structure.
What specific criteria must Caterpillar Inc. employees meet to qualify for early retirement and what implications does this have on their pension benefits? For employees planning early retirement, what calculations or benefit reductions should they be prepared for according to Caterpillar Inc.’s policies?
Criteria for Early Retirement at Caterpillar Inc.: Employees wishing to take early retirement must meet specific age and service requirements detailed in the plan documents. For early retirement, benefits calculations and potential reductions are significant. Employees need to prepare for possible reductions in their pension benefits depending on their age and years of credited service at retirement.
In the context of the Pension Equity Plan (PEP) and the Traditional Pension Plan, how do the benefit calculations differ for employees at Caterpillar Inc., particularly for those who switched from the Traditional Plan to the PEP? What considerations should current Caterpillar Inc. employees take into account when evaluating which plan may offer them more secure benefits?
Differences Between PEP and Traditional Pension Plan: The benefit calculations for the Pension Equity Plan (PEP) and the Traditional Pension Plan differ significantly. PEP calculates a lump sum based on salary and years of service, while the Traditional Plan calculates benefits based on final earnings or credited service formulas. Employees need to consider which plan offers more secure benefits based on their individual career trajectory and earnings history.
What steps must Caterpillar Inc. employees take to ensure that their Credited Service is accurately calculated and maintained throughout their employment, especially in light of the company's policies regarding breaks in service? How might phases of employment, such as parental leave or temporary positions, affect this calculation?
Credited Service Calculation and Maintenance: To ensure accurate credited service calculation, employees must maintain thorough records and communicate any changes in employment status, such as breaks in service or changes in personal information, to the plan administrator. Understanding the rules for service credits during different phases of employment, such as parental leave or temporary positions, is crucial.
How can employees at Caterpillar Inc. file a claim for benefits under the retirement plans, and what are the essential details they need to provide to ensure their claims are processed smoothly? If they encounter issues or denials, what recourse do they have within the Caterpillar Inc. system to appeal these decisions?
Filing a Claim for Benefits: Employees should provide detailed and accurate information when filing a claim for benefits under the retirement plans. If issues or denials occur, they have the right to appeal these decisions. Familiarity with the claims procedure and required documentation can streamline this process.
For employees approaching retirement, what resources are available through Caterpillar Inc. to help them navigate the complexities of their retirement benefits? What steps should an employee take if they wish to understand their benefits better or need assistance with retirement planning?
Resources for Navigating Retirement Benefits: Caterpillar Inc. offers resources to assist employees in navigating the complexities of their retirement benefits. Employees approaching retirement should utilize these resources and may need to engage with the company's human resources or benefits departments for personalized assistance.
What are the implications of the changes to the cash-out limit for de minimis benefits at Caterpillar Inc., which will take effect after December 31, 2023? How does this change affect employees who may have a vested interest in understanding their financial benefit options upon termination or retirement?
Implications of Cash-Out Limit Changes: The increase in the cash-out limit for de minimis benefits affects how small vested benefits are processed upon termination or retirement. Employees with small benefit amounts should understand how these changes may impact their options and tax implications.
How does Caterpillar Inc. ensure that its pension benefits are protected from creditors, and what specific provisions exist to safeguard these benefits? Moreover, how do legal instruments like Qualified Domestic Relations Orders (QDROs) interact with Caterpillar Inc.'s benefits system for employees undergoing divorce?
Protection of Pension Benefits from Creditors: Caterpillar Inc.'s retirement plans are designed with protections to safeguard benefits from creditors, including adherence to Qualified Domestic Relations Orders (QDROs) during instances like divorce. Employees should understand how these legal instruments can affect their retirement savings.
In what ways does the Caterpillar Inc. Retirement Income Plan provide coverage for disability retirement, and how is this benefit calculated for employees? What factors influence eligibility and how do employees initiate claims if they find themselves in need of these benefits?
Disability Retirement Coverage: The plan provides specific provisions for disability retirement, including how benefits are calculated and eligibility criteria. Employees should be aware of how disability affects their benefits and the process for initiating claims if needed.
How can Caterpillar Inc. employees contact the company to learn more about their retirement benefits, and what information should they have ready when making inquiries? Additionally, what specific departments at Caterpillar Inc. should employees reach out to for the most efficient assistance regarding their retirement plan questions?
Contacting the Company for Retirement Benefit Information: Employees can contact the Caterpillar Benefits Center for inquiries about their retirement benefits. Knowing the specific departments to contact for efficient assistance is crucial for addressing concerns and making informed decisions about retirement planning.
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