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Healthcare Provider Update: Healthcare Provider for ExxonMobil For the upcoming year, ExxonMobil's primary healthcare provider is Blue Cross and Blue Shield of Texas (BCBSTX). Effective from January 1, 2025, employees and their families will access healthcare through BCBSTX, ensuring improved network access and support for managing healthcare costs. Prescription drug services will continue to be provided by Express Scripts. Potential Healthcare Cost Increases in 2026 In 2026, ExxonMobil may experience significant healthcare cost increases, paralleling broader trends in the Affordable Care Act (ACA) marketplace. With some states projecting premium hikes of over 60% and the potential loss of enhanced federal premium subsidies, many employees could see their out-of-pocket costs escalate dramatically. The Kaiser Family Foundation has highlighted that without congressional action, most marketplace enrollees might face increases exceeding 75%. These combined pressures will necessitate careful planning and strategic healthcare decisions from ExxonMobil employees going into 2026. Click here to learn more
As ExxonMobil retirees in Missouri take advantage of tax-free public pensions and Social Security, Adviser Patrick Ray of the Retirement Group, a division of Wealth Enhancement Group, says understanding state tax policies helps with financial planning and Retirement.
With Senate Bill 448, which provides substantial tax relief, Adviser Michael Corgiat of the Retirement Group, a division of Wealth Enhancement Group, advises ExxonMobil retirees to stay informed about state tax policies as strategic relocation can impact long-term financial security.
In this article, we will discuss:
1. Missouri now exempts ExxonMobil retirees from their public pension and Social Security taxes.
2. Federal versus state taxes on Social Security benefits.
3. Migration trends and their relation to state tax policies on retirement income.
Starting next fiscal year, ExxonMobil retirees in Missouri will be spared state income tax on their public pension and Social Security payments. Senate Bill 448 will save these ExxonMobil retirees an estimated USD 309 million a year.
Background on the Missouri Tax Exemption.
The tax picture was very different in Missouri before Senate Bill 448 took effect in July. State income taxes on residents over 62 with a gross income of USD 85,000 or married couples with a gross income of USD 100,000 were up to 4.95 percent. That exemption reflects a willingness of the state to help retirees with rising living costs - like many Americans.
This isn't a Missouri subject. Social Security payments in the United States average about USD 1,699 a month and run about USD 20,388 annually, according to the Social Security Administration. But many retirees continue to pay taxes on their retirement income - Social Security included - anyway.
Framework for Federal Social Security Tax.
This tax equals the provisional income - that is, the sum of the gross income plus half of Social Security benefits - of each person. Federal tax rates for beneficiaries can be up to 85 percent of Social Security payments. But their provisional revenues below USD 25,000 (or USD 32,000 for couples) are exempt from this federal tax.
While virtually all states in the United States exempt Social Security benefits from taxation, about a dozen states tax them at least in part. This does not include Supplemental Security Income, which is available to people age 65 and older as well as to adults and children with disabilities or vision impairments.
Taxation of Social Security Benefits by State.
Following Missouri's exemption, only Colorado and Connecticut and Kansas and Minnesota and Montana and Nebraska and New Mexico, Rhode Island and Vermont, Utah and West Virginia tax such benefits.
All these states have their own policy, but all provide some tax benefits or exemptions based on age and income of the beneficiary. Some states are moving to expand Social Security exemptions and deductions. So basically deductions reduce taxable income and reduce tax liability.
In relation to Missouri's recent decision, it is interesting to see how ExxonMobil retirees move around. States with tax-friendly policies for ExxonMobil retirees like Florida saw a boom in senior citizens in 2020, according to a United Van Lines study. States that taxed Social Security benefits lost residents by a net amount. As ExxonMobil professionals consider where to retire, states with favorable tax policies might offer financial benefits as well as a leg up on broader migration trends to better suit their retirement goals.
A brief summary of the taxation policies in some of these states:
Colorado: The state income tax cap on Social Security benefits for retirees 65 and older will increase to USD 24,000 beginning in 2021 for Colorado residents. The 55-64 age group can claim only USD 20,000 in medical expenses.
Connecticut: Connecticut tax exemptions are calculated on adjusted gross incomes (AGI). Exempt are those with an AGI below USD 75,000 and couples with an AGI below USD 100,000. Beyond those ceilings, 75% of their benefits are taxable.
Minnesota: Minnesota recently extended those exemptions to include complete deductions for retirees making USD 78,000 for individuals and USD 100,000 for couples.
Montana: Federal regulations exempt Montana retirees with incomes below certain levels. State officials want to abolish Social Security income tax entirely.
Nebraska: A movement to eliminate Social Security taxes by 2025 in Nebraska exempts ExxonMobil retirees below certain AGI limits.
New Mexico: New Mexico law gives full deductions to single residents and couples with some AGIs.
Rhode Island: AGIs below thresholds exempt residents of the standard Social Security retirement age from all taxes.
Utah: In Utah, income brackets determine tax credits for taxable benefits based on Utah income - similar to federal calculations.
Vermont: In 2022, Vermont made full or partial exemptions based on AGI possible.
West Virginia: West Virginia began eliminating Social Security taxes for eligible people and couples in 2020.
In Closing
The changing face of Social Security income taxation highlights state efforts to help retirees out financially. As living costs increase, such policies are necessary to protect our senior citizens. Potential retirees and those in retirement may find these policies helpful in making decisions about residency and finances.
Retirement tax policies are like plotting a course across islands. The Missouri bridge allows retirees tax-free passage on their public pension and Social Security. But as you travel farther, you will pass 11 more islands (states) that still require a toll with different fees and eligibility requirements. For those on the ExxonMobil ship, navigating with this map means more treasure and fewer surprises in retirement.
Added Fact:
A 2023 report from The Senior Citizens League shows that while some states are becoming more tax-friendly toward Social Security benefits, retirees should be aware that state policies can change. To date this year, Colorado, Minnesota, and West Virginia have tightened their Social Security tax policies for retirees, TSCL's report says. But the report also says Nebraska is still gradually eliminating Social Security taxes, so tax policies could evolve. This information is critical for ExxonMobil retirees as they plan for retirement and weigh new state tax policies on their financial future.
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Added Analogy:
It's like sailing across a shifting archipelago to compare retirement tax policies across states. Just imagine each state as an island with its own toll bridge. You are aboard a vessel - headed toward a comfortable and financially secure retirement as a ExxonMobil retiree. Missouri is the first island where a new bridge lets you keep your public pension and Social Security tax-free. And above the calm water lies another 11 islands with their own toll bridges. Some lowered their tolls, like Colorado and West Virginia, while others like Nebraska are still dismantling their toll booths. Knowing these shifting tax landscapes is like having a course planner - plotting a course to maximize your retirement treasure without running into unexpected financial hurdles. It is a voyage on which knowledge is your compass toward retirement security.
Sources:
1. Missouri Senate. Senate Bill 448 . Missouri Senate, 2023. senate.mo.gov .
2. Nelson, Alisa. 'Missouri Bill Would Exempt Social Security Benefits from State Income Tax.' Missourinet , 10 Jan. 2023. missourinet.com .
3. Lock, Cheryl. 'States That Tax Social Security Benefits in 2025.' Kiplinger , 2021. kiplinger.com .
4. Lock, Cheryl. 'Is Your State Taxing Social Security? Find Out Now.' Investopedia , 2023. investopedia.com .
5. Nelson, Alisa. 'Missouri Bill Would Exempt Social Security Benefits from State Income Tax.' Missourinet , 10 Jan. 2023. missourinet.com .
How does the ExxonMobil Savings Plan compare against typical retirement savings plans, and what unique features does it offer that can benefit employees approaching retirement? Additionally, can you elaborate on the necessary steps ExxonMobil employees should take within the savings plan to ensure maximum contributions and employer match during their service years?
ExxonMobil Savings Plan: ExxonMobil's Savings Plan offers flexibility with pre-tax, after-tax, and Roth contributions, and features a 7% company match for the first 6% of employee contributions, a unique benefit compared to typical plans. Employees should contribute the maximum percentage to receive the full match and regularly review their investment allocations through the Voya platform(ExxonMobil_2024_ExxonMo…).
What are the eligibility criteria for employees to participate in the ExxonMobil Pension Plan, and how is the retirement benefit calculated? As employees consider their long-term savings strategy, how does the option of a lump-sum distribution versus an annuity influence their financial planning at ExxonMobil?
ExxonMobil Pension Plan: Employees are automatically enrolled and eligible for benefits after five years of service, with full retirement benefits offered at 55 with 15 years of service. The pension is calculated based on 1.6% of final average pay multiplied by years of service, minus a social security offset. Lump-sum and annuity options affect long-term financial planning, with lump sums offering immediate flexibility while annuities provide a steady income(ExxonMobil_2024_ExxonMo…).
In what ways does the ExxonMobil Employee Assistance Program (EAP) support employees during personal or family crises, and what confidentiality measures are in place to protect their privacy? Additionally, how can ExxonMobil employees access these services, and what are the key resources available through this program?
Employee Assistance Program (EAP): ExxonMobil's EAP provides confidential counseling services for personal and family issues like anxiety, addiction, and family conflict. Services are accessible by phone, video chat, or text, with privacy strictly protected. Employees can contact ComPsych for guidance and support through the GuidanceNow app or website(ExxonMobil_2024_ExxonMo…).
With the introduction of Flexible Spending Accounts (FSAs) at ExxonMobil, how do these accounts help employees manage their health care and dependent care expenses more effectively? What guidelines should employees follow to ensure they maximize their tax advantages while complying with IRS regulations during the enrollment process?
Flexible Spending Accounts (FSAs): FSAs at ExxonMobil allow employees to reduce taxable income by contributing pre-tax dollars to healthcare or dependent care expenses. Employees should estimate their expenses carefully during the enrollment period and comply with IRS rules, ensuring they submit claims by April 15th of the following year(ExxonMobil_2024_ExxonMo…).
How does ExxonMobil define "work-life balance," and what specific benefits and programs are in place to support this philosophy for employees? Can you discuss how employees can utilize these options, such as flexible schedules and leave of absence policies, without negatively impacting their career progression within the company?
Work-Life Balance: ExxonMobil promotes work-life balance with programs like “Flex Your Day,” allowing flexibility in work hours, and up to 20 days of back-up dependent care. Employees are encouraged to use these options strategically to maintain career progression while balancing personal obligations(ExxonMobil_2024_ExxonMo…).
In light of the various medical plan options offered at ExxonMobil, how should employees approach selecting the right plan to best meet their healthcare needs? What factors should they consider, including family health history and financial implications, when making their decisions?
Medical Plan Selection: ExxonMobil offers Aetna POS II and network-only options, allowing employees to choose between plans based on cost, coverage, and provider access. Employees should assess their family's healthcare needs, financial situation, and preferred providers when selecting the most appropriate plan(ExxonMobil_2024_ExxonMo…).
For ExxonMobil employees nearing retirement, what resources are available to help them understand the nuances of health benefits coordination through Medicare and their ExxonMobil coverage? How can they best navigate this transition, and what checkpoints should they be aware of to ensure they remain compliant with company policies during retirement?
Retirement Health Benefits and Medicare: ExxonMobil offers resources to help employees coordinate health benefits with Medicare upon retirement. Employees nearing retirement should explore their options through the Your Total Rewards portal and ensure compliance with company policies during the transition(ExxonMobil_2024_ExxonMo…).
What financial education resources does ExxonMobil provide to employees to promote informed decision-making about their retirement savings and benefits? Can you detail how programs like the Financial Fitness Program enable employees to strategically manage their finances and plan for retirement?
Financial Education Resources: ExxonMobil's Financial Fitness Program, provided in collaboration with Ernst & Young, helps employees manage their finances with resources such as EY Navigate and personalized financial planning. This program supports informed decision-making about retirement and savings strategies(ExxonMobil_2024_ExxonMo…).
As part of the benefits provided by ExxonMobil, how does the company facilitate employee participation in volunteer programs and charitable activities through the ExxonMobil Foundation? How can employees engage with these initiatives while also balancing their work commitments?
Volunteer Programs: Through the ExxonMobil Foundation, employees can engage in charitable activities via the Volunteer Involvement Program (VIP), which offers grants to nonprofits based on time spent volunteering. Participation in these programs is flexible, enabling employees to balance work commitments with volunteer efforts(ExxonMobil_2024_ExxonMo…).
How can ExxonMobil employees get in touch with benefits representatives to address specific questions about their retirement and savings plans? What are the recommended channels and best times to reach out for assistance to ensure they receive timely and relevant information about their options?
Contacting Benefits Representatives: Employees can reach out to the ExxonMobil Benefits Service Center at 833-776-9966 during business hours (8 a.m. to 4 p.m. CST) for assistance with retirement and savings plan questions. The Your Total Rewards portal also offers 24/7 access for reviewing and managing benefits(ExxonMobil_2024_ExxonMo…).
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