Healthcare Provider Update: Healthcare Provider for WestRock: WestRock employees typically receive their health care benefits through various providers as part of employer-sponsored insurance plans. Specific details on the primary healthcare provider may vary, but it's known that large companies like WestRock often collaborate with major insurers. To identify the exact provider, employees should consult their HR department, which can provide the most accurate and relevant information. Potential Healthcare Cost Increases in 2026: As WestRock prepares for 2026, employees should brace for significant healthcare cost increases. With the expiration of enhanced federal ACA subsidies and rising medical costs, many workers could face steep premium hikes, potentially exceeding 75%. A recent survey indicates that nearly half of large employers, including WestRock, anticipate transferring more healthcare expenses to employees, raising deductibles and out-of-pocket maximums. This evolving landscape highlights the importance for WestRock employees to understand their benefits and mitigate potential financial impacts. Click here to learn more
There is a notable shift taking place in the employment of older individuals within the American labor market. Americans 65 years of age and beyond have been more and more involved in the job force; in 2023, about 20% of them were employed, almost twice as much as they were thirty-five years earlier. The nature of labor, the goals of older workers, and the economic realities of aging in the US are all reflected in this demographic shift, which goes beyond simple numbers. It's important for companies like WestRock to be aware of these changes impacting the workforce.
The earning potential of elderly workers has increased dramatically in terms of money. The average hourly wage for workers 65 years of age or older increased to $22 in 2022 from $13 in 1987, indicating a significant increase in earnings. A trend towards greater economic parity across age groups in the workplace has been marked by the income gap between them and their younger counterparts, ages 25 to 64, narrowing as a result of the wage increase.
The traits of elderly workers today are very different from those of earlier generations. Sixty-two percent of this group work full-time, a considerable rise from the 47 percent who did so in 1987. The proportion of older workers with a bachelor's degree or above has increased dramatically as well; at 44%, they are on par with younger workers in terms of education. When compared to the 18% reported in 1987, this indicates a sharp growth.
Furthermore, compared to younger workers, older workers are more likely to benefit from employer-provided benefits like health insurance and pension plans. This is in contrast to the younger workers' declining access to these benefits. In particular, fewer younger workers—only 41%—enjoy such benefits than in prior decades, while those 65 and older—36%—have access to employer- or union-sponsored retirement plans, an improvement over previous decades.
Older workers also exhibit a distinct tendency toward self-employment: 23% of them choose this route, vs 10% of workers between the ages of 25 and 64. The need for autonomy and flexibility in later-life professions is reflected in the attitude towards entrepreneurship among older persons.
The combined effect of these changes is significant, especially for older WestRock employees. Compared to their 2% share in 1987, older workers now make up 7% of total earnings and salaries earned in the United States, a more than threefold rise. This increase highlights how older folks are becoming more and more important to the economy.
Older workers are generally happier with their occupations than their younger counterparts, according to a Pew Research Center survey that examines job satisfaction. They claim that their jobs are less stressful and more pleasurable, indicating that working later in life might have a positive psychological and emotional impact.
Alongside these trends, the senior workforce's demographic makeup has changed. Due to broader cultural developments like improved educational attainment and more female labor force involvement, women now make up a larger fraction of the senior workforce, accounting for 46% of workers 65 and over. This change is also evident in the educational system, as older working women today have a far higher bachelor's degree holding rate than they had in the past.
The racial and ethnic composition of the workforce has also shifted; since 1987, the proportions of Black and Hispanic workers have increased while those of White workers have decreased. These increases mirror broader societal moves towards increased diversity, even though the senior population is still less diverse than the younger workforce.
In summary, older folks are becoming more and more important in the American workforce, which is changing dramatically, impacting WestRock and companies alike. Higher incomes, higher levels of education, and a move toward full-time jobs and self-employment are characteristics of their involvement. These patterns indicate a change in the facts and views of aging and labor, in addition to reflecting the evolving economic and social landscape of the United States. The experiences and contributions of older workers will continue to be a crucial part of the larger economic story as the workforce changes, demonstrating the dynamic nature of employment across the lifetime. It is crucial for companies like WestRock to stay up to date on these changes and accommodate for this changing workforce.
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Modern workplace technologies and flexible work schedules are complementing the growing number of elderly workers in the workforce. According to an AARP study, 74% of older workers chose jobs that allowed for telecommuting in 2021, highlighting the significance of flexibility and work-life balance. In addition to meeting the lifestyle preferences of senior workers, this trend toward flexible work schedules increases productivity and extends workers' careers. For WestRock, acknowledging and accommodating these inclinations, can leverage the invaluable experience and proficiency of senior WestRock employees, thus cultivating a workforce that is both dynamic and inclusive.
Imagine a vineyard where the workers are represented by the vines, which grow over several years. In the past, younger vines were valued for their vigorousness; but, the deep-rooted, sturdy older vines are currently producing the most valuable, highly sought-after grapes. Similar like employees 65 years of age and above, these older vines are thriving and adding more than ever to the vineyard's crop. Their depth of expertise and quality are reflected in the greater worth of their grapes, just as the earnings of senior workers. In the same way that an old vine in a vineyard adds special aspects to the wine, so too does the modern workforce benefit from the experience and steadiness of its seasoned workers. The increasing recognition and appreciation of the contributions made by senior employees is akin to the developing understanding of the richness and nuance that only age can impart in a superb wine.
How does the WestRock Company Consolidated Pension Plan specifically calculate the Normal Retirement Benefit for its employees, and what considerations should employees be aware of regarding the Final Average Pay calculation used by WestRock Company?
Normal Retirement Benefit Calculation: The WestRock Company calculates the Normal Retirement Benefit based on the employee's Final Average Pay. This is defined as the average of the employee's highest five years of earnings over the last ten years of employment before termination. Earnings included in the Final Average Pay are most wages, bonuses, commissions, and amounts deferred under the company’s 401(k) plan. Employees should be aware that earnings after December 31, 2015, are excluded unless they qualify under the Rule of 75(WestRock Company_Issued…).
What are the specific eligibility requirements for the Disability Retirement Pension under the WestRock Company plan, and how does this differ for Legacy Mead and Legacy Westvaco participants within the WestRock Company workforce?
Disability Retirement Pension Eligibility: To qualify for a Disability Retirement Pension, an employee must have earned at least five years of Vesting Service and be deemed "totally and permanently disabled" according to specific criteria. Legacy Mead and Legacy Westvaco participants are subject to special rules detailed in the Legacy Supplement. Legacy Mead employees must apply separate criteria from Legacy Westvaco employees(WestRock Company_Issued…).
In what ways can employees at WestRock Company manage and maximize their Vesting Service to ensure they receive the full benefits from the company’s pension plan, particularly for those with interrupted service or re-employment?
Vesting Service Maximization: WestRock employees can manage their Vesting Service by ensuring that they complete at least five years of service, which guarantees their right to pension benefits. Employees with interrupted service can still receive credit for Vesting Service if they return within five years. Additionally, employees who leave and return within a year will receive credit for the time they were absent(WestRock Company_Issued…).
How does the WestRock Company handle the transition of benefits for employees who transfer between different positions within the company, and what impacts could this have on their eventual retirement benefits?
Transfer Between Positions: When WestRock employees transfer between different positions, their retirement benefit is calculated based on the greater of two methods. The first method calculates the benefit accrued at each position separately, while the second method applies the total benefit service across positions. Vesting Service is always combined, regardless of location or position(WestRock Company_Issued…).
How does the WestRock Company plan ensure that pension benefits are protected, particularly through the Pension Benefit Guaranty Corporation (PBGC), and what should employees know about their rights and guarantees under this insurance?
Pension Benefit Protection (PBGC): The WestRock Pension Plan is insured by the Pension Benefit Guaranty Corporation (PBGC). This federal insurance guarantees that employees will receive their vested pension benefits even if the plan is terminated. Employees should understand that PBGC coverage has limits, and benefits might be reduced under certain circumstances(WestRock Company_Issued…).
What are the consequences for WestRock Company employees who choose to withdraw from their pension plan or to rollover their benefits upon retirement or termination? How can they navigate these options effectively to avoid penalties?
Withdrawals and Rollovers: Employees can withdraw or roll over their pension benefits upon retirement or termination. Lump-sum withdrawals may be subject to taxes unless rolled over into a qualifying retirement account. Employees should consult the WestRock Benefits Center to avoid penalties and ensure compliance with federal tax regulations(WestRock Company_Issued…).
How does the WestRock Company maintain compliance with federal regulations and best practices under ERISA, and what specific rights do employees have concerning their pension benefits?
ERISA Compliance: WestRock complies with the Employee Retirement Income Security Act (ERISA), ensuring that employees' pension rights are protected. Employees have the right to receive information about their benefits, act prudently, and enforce their rights through the claims and appeals process outlined in the plan(WestRock Company_Issued…).
What resources are available to employees of WestRock Company for understanding their benefits under the Consolidated Pension Plan, and how can they utilize these resources to ensure they make informed decisions about their retirement?
Resources for Understanding Benefits: WestRock provides employees access to the WestRock Benefits Center, where they can obtain information on their pension plan. Employees are encouraged to review the Summary Plan Description and consult with the Benefits Center for clarification on their benefits and to make informed retirement decisions(WestRock Company_Issued…).
How will the integration of employee benefits from various company acquisitions impact current staff at WestRock Company, and what steps is the company taking to communicate these changes effectively to its employees?
Impact of Acquisitions on Benefits: WestRock has acquired various companies over time, and employees from these acquisitions may have different pension rules applied to them. WestRock takes steps to integrate these employees and communicates any changes through the WestRock Benefits Center. Special rules may apply based on the previous employer’s pension plan(WestRock Company_Issued…).
How can employees of WestRock Company get in touch with the WestRock Benefits Center to seek clarification about the Summary Plan Description, and what are the best practices to follow when requesting information regarding their pension plan?
Contacting the Benefits Center: Employees can contact the WestRock Benefits Center for clarification on the Summary Plan Description. Best practices include having detailed questions prepared, reviewing the SPD in advance, and requesting copies of documents or forms that clarify specific aspects of their pension plan(WestRock Company_Issued…).