New Update: Healthcare Costs Increasing by Over 60% in Some States. Will you be impacted?

Are Bristol-Myers Squibb Employees Consistently Making These 401(k) Mistakes?

Healthcare Provider Update: Healthcare Provider for Bristol-Myers Squibb Bristol-Myers Squibb collaborates with multiple healthcare providers, including major national health insurers and pharmacy benefit managers (PBMs) like CVS Caremark and Express Scripts, to ensure patient access to their medications. Their widespread distribution network encompasses hospitals, clinics, and specialty pharmacies, enabling healthcare professionals to prescribe and dispense their pharmaceutical products effectively. Potential Healthcare Cost Increases in 2026 As we look toward 2026, healthcare consumers should brace for significant cost increases stemming from a combination of factors. Record hikes in premiums for Affordable Care Act (ACA) marketplace plans are anticipated, with some states facing increases over 60% due to higher medical costs and the potential expiration of federal premium subsidies. Reports indicate that nearly 92% of marketplace enrollees could see their out-of-pocket premiums soar by over 75%, putting immense financial strain on families. Coupled with escalating hospital and drug prices, particularly specialty medications like GLP-1 weight loss drugs, the burden of rising healthcare expenses is likely to affect millions as they navigate their insurance options and healthcare needs. Click here to learn more

This paper is for Bristol-Myers Squibb employees who will have to know the basics of their 401(k) plans, including the role of the company's contributions and the way the assets are invested in order to understand the basics of the retirement planning process.'

'['Free' means that, as a Bristol-Myers Squibb employee, you can optimize your retirement savings and, thus, your future financial independence by frequently checking and changing your 401(k) contributions, as well as by consulting for a Roth 401(k)].

In this article, we will discuss:

1. How to increase your chances of retirement savings by taking advantage of employer contributions.

2. What are the conditions under which you own the company contributions? Do not miss the money! A simple guide to the basics of stock investing within your 401(k) plan.

3. It is not intended to be an exhaustive treatment of the subject, but rather a general introduction that will help you understand the basics and consider whether or not to participate.

In a time of increasing financial complexity, it is essential to know how to make the most out of your savings, especially when you are planning for your retirement. The 401k plan has been and will be one of the best ways to build wealth over the long term. However, as with any instrument, its effectiveness depends on the user’s understanding of its capabilities and potential risks.

Harnessing Matching Contributions:

Most of the Bristol-Myers Squibb companies provide for matching schemes under which they pay for a certain percentage of the amount an employee places into a 401k. On average, companies match 4.5% of employee contributions, as per Vanguard’s annual report. Although this percentage may not be very high, it can amount to a lot of money over the years. When you include the interest that is charged on the account, this can make for a good retirement portfolio.

Vesting Requirements - Patience Pays:

Vesting refers to the conditions under which an employee is entitled to the company contributions to a 401(k) plan. Two main types are:

Cliff Vesting: Contributions are fully vested at the end of the set period, which is usually three years.

Graded Vesting: The employer’s contributions become vested at 20% annually from the second year and at 100% by the end of the sixth year.

Thus, if you change jobs before your contributions become vested, you will deny yourself access to the money. So, it is important to know your company’s vesting policy.

The Risk of Company Stock:

While it may be tempting to invest in your company’s stock, it’s wise to limit such investments to 5-10% of your total 401(k) assets. This is because too much money is at risk in the event the company is not doing well.

The Dual-Edge of Stock Investments:

Equities, or stocks, shouldn’t be avoided entirely. Although they are risky, very conservative products may not perform well versus inflation, and, thus, reduce your buying power in the future. This is where balanced equity investments come in to help with this.

Sources:

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Articles you may find interesting:

1. Internal Revenue Service (IRS). 'Matching Contributions Help You Save More for Retirement.' IRS, https://www.irs.gov/retirement-plans/matching-contributions-help-you-save-more-for-retirement . Accessed 17 Feb. 2025.

2. Internal Revenue Service (IRS). 'Retirement Topics - Vesting.' IRS, https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-vesting . Accessed 17 Feb. 2025.

3. Empower. 'What is 401(k) Matching & How Does It Work?' Empower, https://www.empower.com/the-currency/work/how-does-401k-matching-work . Accessed 17 Feb. 2025.

4 Investopedia. '401(k) Vesting Rules.' Investopedia, https://www.investopedia.com/401-k-vesting-rules-5323652 . Accessed 17 Feb. 2025.

5. National Council on Aging (NCOA). 'Leverage Employer Matching Contributions to Your 401(k).' NCOA, https://www.ncoa.org/article/matching-contributions-101-how-to-maximize-your-retirement-savings-now . Accessed 17 Feb. 2025.

How does the Broward Health Cash Balance Pension Plan ensure the financial security of its employees upon retirement, and what are the specific benefit options available to employees who retire or terminate employment with Broward Health? Discuss the implications of choosing a lump sum versus a monthly benefit and how these choices affect overall retirement income.

Financial Security and Benefit Options: The Broward Health Cash Balance Pension Plan provides financial security by offering a defined benefit based on hypothetical account balances. Upon retirement or termination, employees can choose between a lump sum payment or a lifetime monthly benefit. The lump sum provides immediate access to funds, but opting for a monthly benefit ensures a steady income throughout retirement, which could lead to a more stable financial situation over time.

How does the retirement savings plan at Bristol-Myers Squibb Company compare to similar plans in the biotech and pharmaceutical industry, particularly regarding company matching contributions and employee deferral options? What factors should employees consider when deciding how much to contribute to their retirement accounts at Bristol-Myers Squibb Company?

Early Retirement Accommodations: Employees can retire early if they are at least 55 years old and have completed 5 years of vesting service. Benefits received upon early retirement are typically smaller compared to those received at the normal retirement age of 65. The normal form of benefit payment for early retirees is an actuarially adjusted life annuity based on the cash balance account at the time of early retirement(Broward Health_June 201…).

Bristol-Myers Squibb Company offers various retirement plans, including 401(k) plans and non-qualified deferred compensation plans. Can employees elaborate on the differences between these plans and how each one impacts their long-term retirement savings? Furthermore, how can an employee evaluate which plan best suits their individual retirement goals?

Vesting Schedule and Rights: The Broward Health Cash Balance Pension Plan uses a vesting schedule that grants full vesting rights after 5 years of service. Employees with fewer than 5 years of service are not eligible for benefits and forfeit their account balance. Vesting means employees gain the right to their accrued benefits, which become payable when employment ends(Broward Health_June 201…).

Based on the changes in IRS regulations for 2024, how might they affect Bristol-Myers Squibb Company's retirement and savings plans? Are there any new contribution limits or eligibility rules that employees should be aware of, and how can they adapt their savings strategies accordingly?

Role of the Pension Plan Committee: The Broward Health Pension Plan Committee administers the Cash Balance Pension Plan, ensuring compliance with laws and the plan’s financial health. The committee is responsible for investment decisions and approving plan changes, and it ensures that benefits are paid accurately and in a timely manner(Broward Health_June 201…).

What are the implications of taking an early withdrawal from retirement funds at Bristol-Myers Squibb Company, and how does it affect an employee's financial future? Employees should also consider what alternatives to early withdrawal exist within the company's policy framework.

Changes or Amendments to the Plan: The plan can be amended or terminated, but employees' vested rights are protected. Changes do not reduce accrued benefits from prior contributions, and the plan's termination follows a specific order to prioritize benefit distributions(Broward Health_June 201…).

Employees often have questions about post-retirement benefits, especially concerning medical coverage. What policies does Bristol-Myers Squibb Company have in place to ensure continued healthcare coverage for retirees, and what are the eligibility criteria for these benefits?

Recognition of Past Service upon Re-employment: If employees return to Broward Health after a break, their prior service may be recognized depending on vesting and benefit conditions at the time of rehire. Those who were vested before leaving can have their prior benefits restored, and contributions can resume after re-employment(Broward Health_June 201…).

How does Bristol-Myers Squibb Company handle the integration of pension benefits during mergers or acquisitions, and what can employees expect if they find themselves in such a situation? It would also be important for employees to understand their rights and options during these transitional phases.

Beneficiary Designations: Employees can designate beneficiaries to receive benefits if they die before or after retirement. Beneficiaries can receive lump sums or monthly payments, depending on the employee's retirement eligibility. Failure to designate a beneficiary may result in benefits going to the surviving spouse, children, or other family members as per the plan's order of priority(Broward Health_June 201…).

In light of recent company performance, what are Bristol-Myers Squibb Companyâ€™s future benefits projections, especially regarding pension plans? How can employees utilize this information to better plan for their retirement saving strategies?

Interest Credits on Accounts: The interest credits for cash balance accounts are determined based on U.S. Treasury rates, with a minimum annual interest rate. Interest is applied monthly, enhancing the account value and ensuring that employees' retirement savings grow over time(Broward Health_June 201…).

Given that Bristol-Myers Squibb Company has a robust benefits architecture, what specific programs or platforms are in place for employees to seek clarifications on their retirement benefits? How can Bristol-Myers Squibb company employees efficiently navigate these resources to address their individual inquiries?

Challenges in Filing Claims: The process for filing retirement claims involves notifying Broward Health and submitting the necessary paperwork 30 to 60 days before retirement or termination. In case of a denied claim, employees have the right to request a review and appeal, ensuring fair treatment and timely resolution(Broward Health_June 201…).

For employees looking to gain more information about retirement benefits and other related policies, how can they contact Bristol-Myers Squibb Company effectively? What communication methods are recommended to ensure that their questions are addressed promptly and comprehensively? These questions should provide employees with a deeper insight into their retirement planning while encouraging them to explore the benefits offered by Bristol-Myers Squibb Company further.

Contacting Broward Health for Information: Employees can contact the Employee Benefits department at Broward Health to learn more about the Cash Balance Pension Plan. Resources such as retirement counseling sessions and detailed plan descriptions are available to help employees understand their benefits and make informed decisions(Broward Health_June 201…).

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

In process of terminating U.S. Retirement Income Plan, transferring $3.8 billion of its pension obligations. Previous $1.4 billion transfer to Prudential for 8,000 retirees.

Bristol-Myers Squibb announced a restructuring plan that includes layoffs of approximately 1,200 employees.

Bristol-Myers Squibb offers RSUs to executives and certain employees. The RSUs vest over a three-year period, promoting long-term company performance and employee retention.

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For more information you can reach the plan administrator for Bristol-Myers Squibb at 430 East 29th Street New York, NY 10016; or by calling them at +1 212-546-4000.