Are Leggett & Platt Employees Consistently Making These 401(k) Mistakes?
Healthcare Provider Update: Healthcare Provider for Leggett & Platt:
Leggett & Platt typically offers health benefits through major insurance providers, with Aetna being one of the key healthcare partners. Aetna provides a range of health and wellness solutions for its employees, ensuring access to healthcare services and support.
Potential Healthcare Cost Increases in 2026:
The healthcare landscape is bracing for significant premium hikes in 2026, driven by a convergence of factors including rising medical costs and the potential expiration of enhanced ACA premium subsidies. Reports indicate that ACA marketplace premiums could surge by as much as 75% for many enrollees, with certain states anticipating increases exceeding 60%. This scenario is compounded by large insurers filing for substantial rate increases, leading to not only a financial hit for consumers but also raising concerns over access to affordable healthcare coverage. As companies like Leggett & Platt navigate these impending cost escalations, both employers and employees will need to strategize and adapt to maintain care affordability amidst these challenges.
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This paper is for Leggett & Platt 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 Leggett & Platt 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 Leggett & Platt 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.
With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
For Leggett & Platt, I have found specific details about the company's pension and 401(k) plans during 2022, 2023, and 2024. Leggett & Platt offers both a defined benefit pension plan and a 401(k) savings plan for their employees. The pension plan, known as the Defined Benefit Pension Plan, calculates benefits based on years of service and final average pay. Employees become vested in the pension after five years of service. The retirement age for full benefits is typically 65, though early retirement options with reduced benefits may be available starting at age 55. The pension benefit formula considers a percentage of the employee's highest consecutive five years of earnings multiplied by the years of credited service. For instance, the maximum benefit payable by Leggett & Platt’s defined benefit pension plan in 2022 was capped at $245,000 annually, and it increased to $265,000 in 2023 and $275,000 in 2024.
In addition to the pension plan, Leggett & Platt offers a 401(k) plan called the Leggett & Platt Employee 401(k) Plan. Employees can contribute to the plan, with the company matching a portion of the contributions. The 401(k) plan allows participants to defer part of their salary pre-tax or post-tax into investment options provided by the plan. In 2022, the employee contribution limit for 401(k) plans was $20,500, which increased to $22,500 in 2023 and $23,000 in 2024. Employees over age 50 are eligible for catch-up contributions, which were $6,500 in 2022 and 2023 and increased to $7,500 in 2024 (WCT Pension) (Pension Rights Center) (ICMARC) (Pension Rights Center).
In January 2024, Leggett & Platt announced a major restructuring plan involving the elimination of 900 to 1,000 jobs and the closure of 15 to 20 facilities. The restructuring primarily impacts the Bedding Products segment but also extends to Furniture, Flooring & Textile Products. The company plans to consolidate manufacturing and distribution operations from 50 to approximately 30-35 facilities, aiming to optimize efficiency and align capacity with market demand
Leggett & Platt (LEG) offers both stock options and Restricted Stock Units (RSUs) as part of their employee benefit programs. These stock options and RSUs are designed to provide long-term incentives to employees, aligning their interests with the company's growth. The stock options are typically granted under the company's Incentive Stock Option Plan (ISO), which allows employees to purchase company shares at a set price after a vesting period. RSUs are granted as part of the company's Employee Stock Purchase Plan (ESPP), which provides employees with the opportunity to buy company shares at a discounted rate, subject to specific vesting schedules.
In 2022, Leggett & Platt issued approximately 0.9 million shares through their employee benefit plans, reflecting their commitment to providing equity-based incentives. These shares were primarily distributed to senior executives and employees meeting specific eligibility criteria, typically based on job performance and tenure (Leggett & Platt).
In 2023, the company continued its practice of issuing stock options and RSUs as part of its employee compensation program, focusing on key executives and senior management. Leggett & Platt is also known for regularly reviewing their stock option and RSU offerings to remain competitive in their industry. Eligible employees include those in management and key operational roles across their various business units (Leggett & Platt).
The latest updates on stock options and RSUs for 2024 highlight Leggett & Platt's commitment to employee engagement and retention through these financial incentives. The company's stock incentive plans continue to be a significant part of their total compensation strategy, aiming to foster long-term growth and shareholder value. Employees eligible for these options are typically those in leadership positions, although the company occasionally extends these benefits to high-performing staff in critical roles (Leggett & Platt).
Leggett & Platt offers competitive health benefits to its employees, focusing on comprehensive coverage across medical, dental, and vision plans. In 2023, the company continued to provide its employees with self-insured health plans, which gives it greater control over managing healthcare costs while maintaining flexibility in the services offered. Employees benefit from coverage that includes preventive care, prescription drug services, and wellness programs aimed at improving overall health. Recent changes have seen an emphasis on preventive services and mental health support, reflecting broader industry trends. These developments align with the company's commitment to employee well-being, as they work to mitigate rising healthcare costs in a challenging economic environment (Leggett & Platt).
In light of ongoing economic pressures and healthcare inflation, Leggett & Platt has adapted its healthcare benefits to ensure both competitiveness and sustainability. In 2024, the company introduced additional wellness initiatives, addressing concerns over healthcare cost increases that are anticipated across industries. The focus on mental health and preventive services is particularly critical given the current political and economic climate, where employee health is a growing priority for employers. By maintaining robust health benefits, Leggett & Platt seeks to attract and retain top talent while balancing the need for cost-effective solutions in a volatile market. These adjustments are particularly relevant in an era where political uncertainties and investment pressures are influencing corporate healthcare strategies (Leggett & Platt) .
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