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

Are EnerSys Employees Consistently Making These 401(k) Mistakes?

Healthcare Provider Update: Healthcare Provider for EnerSys: EnerSys, a global leader in stored energy solutions, typically utilizes various healthcare providers for its employee benefits. However, the specific healthcare provider used by EnerSys can vary by location and is often tailored to meet the needs of its workforce and regional healthcare systems. For the most accurate and updated information, it's advisable for employees or interested parties to refer to EnerSys' human resources or benefits department. Potential Healthcare Cost Increases in 2026: As healthcare costs rise significantly, the landscape for employers and employees is expected to shift dramatically in 2026. Various insurers are predicting increases in premiums often exceeding 20%, driven by factors such as higher medical costs, potential expiration of federal premium subsidies, and significant rate hikes from the largest insurers. With market conditions suggesting that over 22 million individuals may face out-of-pocket premium hikes exceeding 75%, the financial strain on many families and businesses is imminent, necessitating strategic planning among employers to mitigate these impacts. Click here to learn more

This paper is for EnerSys 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 EnerSys 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 EnerSys 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:

Featured Video

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.

What type of retirement savings plan does EnerSys offer to its employees?

EnerSys offers a 401(k) retirement savings plan to its employees.

Does EnerSys provide a company match for contributions made to the 401(k) plan?

Yes, EnerSys provides a company match for employee contributions to the 401(k) plan, subject to certain limits.

How can EnerSys employees enroll in the 401(k) plan?

EnerSys employees can enroll in the 401(k) plan by completing the enrollment process through the company's benefits portal.

What is the eligibility requirement for EnerSys employees to participate in the 401(k) plan?

EnerSys employees are eligible to participate in the 401(k) plan after completing a specified period of service, typically outlined in the employee handbook.

Can EnerSys employees change their contribution amounts to the 401(k) plan?

Yes, EnerSys employees can change their contribution amounts to the 401(k) plan at any time during the year.

What investment options are available in the EnerSys 401(k) plan?

The EnerSys 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.

Does EnerSys allow for loans against the 401(k) plan?

Yes, EnerSys allows employees to take loans against their 401(k) plan balances, subject to specific terms and conditions.

What happens to the 401(k) plan if an EnerSys employee leaves the company?

If an EnerSys employee leaves the company, they can choose to roll over their 401(k) balance to another retirement account, cash out, or leave the funds in the EnerSys plan if allowed.

Are there any fees associated with the EnerSys 401(k) plan?

Yes, there may be administrative and investment fees associated with the EnerSys 401(k) plan, which are disclosed in the plan documents.

How often can EnerSys employees review their 401(k) account statements?

EnerSys employees can review their 401(k) account statements quarterly, and they may also have access to their accounts online for real-time updates.

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

For EnerSys, the company provides a 401(k) plan for its employees with a company match. According to reports from employee reviews, EnerSys offers a matching contribution up to 6%. Specifically, the first 4% is matched at 100%, while the next 2% is matched at 50% (Day Pitney). This makes it possible for employees to benefit from a total employer contribution of up to 6% of their salary, depending on their personal contribution levels. The EnerSys 401(k) plan is available to all full-time employees, and as per the company's policies, the matching starts after a certain period of employment, typically 90 days (Day Pitney). EnerSys also offers a Defined Benefit Pension Plan, though details on the specific name of the plan and the precise formula used were not immediately accessible. However, it is typically calculated based on factors such as years of service and final average pay. Employees are vested after completing a specified period of service, which is typically around five years

Restructuring and Layoffs: In 2023, EnerSys announced a significant restructuring plan aimed at optimizing its global operations. This restructuring led to layoffs affecting several positions across its manufacturing and administrative sectors. The move was part of a broader strategy to streamline operations and reduce costs amid a challenging economic environment. It is crucial to monitor such developments due to the impact of restructuring on employee security and the potential implications for the company’s operational efficiency. Given the current economic climate and investment trends, understanding these changes is essential for stakeholders to navigate the potential risks and opportunities effectively.

EnerSys Stock Options (SO): EnerSys offers stock options (SO) to selected employees based on their roles and performance. The options typically vest over a period of time, ensuring that employees stay with EnerSys for an extended period. EnerSys Restricted Stock Units (RSU): EnerSys grants Restricted Stock Units (RSU) to senior executives and key employees. These RSUs are generally subject to performance and time-based vesting conditions.

Health Plan Options: EnerSys offers its employees competitive health insurance plans, including options through Blue Cross Blue Shield (BCBS). Employees can choose between a High Deductible Plan (HDP) and a Preferred Provider Organization (PPO) plan (Enersys) (Enersys Investor). These options are designed to cater to different needs, with the HDP being suitable for employees who prefer lower premiums and higher deductibles, while the PPO offers more flexibility in choosing healthcare providers. Health Savings Account (HSA): Employees enrolled in the HDP have access to a Health Savings Account (HSA), allowing them to set aside pre-tax dollars to cover medical expenses. This is a key feature that supports employees in managing out-of-pocket costs (Enersys). Wellness and Preventive Care: EnerSys promotes preventive care through its health plans by offering annual physicals, screenings, and immunizations at no additional cost to employees (Enersys). Preventive care is a major focus, aiming to reduce long-term healthcare costs and improve employee well-being. Employee Assistance Program (EAP): EnerSys provides an Employee Assistance Program (EAP) for mental health support. This program offers confidential counseling and resources for employees dealing with personal or professional challenges. The EAP is part of EnerSys' broader commitment to employee wellness (Enersys Investor). Recent Employee Healthcare News: In response to rising healthcare costs, EnerSys has maintained a commitment to keeping employee contributions low while expanding access to essential services. They have continued enhancing their healthcare plans by offering comprehensive telehealth services, reflecting industry trends aimed at reducing in-person visits and supporting remote healthcare needs

Additional Articles

Check Out Articles for EnerSys employees

For more information you can reach the plan administrator for EnerSys at 2366 Bernville Rd Reading, PA 19605; or by calling them at (610) 208-1991.

https://www.bloomberg.com/asia https://www.hrdive.com/ https://www.dol.gov/ https://www.indeed.com/ https://www.glassdoor.com/index.htm https://www.enersys.com/en-gb/ https://www.thelayoff.com/