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

Cummins Inc Employees: Navigating Your Future When Medicare Isn't Enough

Healthcare Provider Update: Healthcare Provider for Cummins Inc. Cummins Inc. primarily administers its employee health benefits through major insurance providers, including UnitedHealthcare and Anthem Blue Cross Blue Shield (BCBS), among others. Potential Healthcare Cost Increases in 2026 As Cummins Inc. anticipates significant healthcare cost increases in 2026, employees should prepare for potential spikes in premiums driven by a combination of factors. A projected rise of up to 8.5% in employer-sponsored insurance costs, alongside the potential expiration of enhanced ACA subsidies, may lead many employees to see their out-of-pocket expenses grow considerably. With certain states experiencing premium hikes exceeding 60%, comprehensive financial planning, including the strategic use of Health Savings Accounts (HSAs), will become essential for mitigating the anticipated financial impact on individuals and families. Click here to learn more

As Cummins Inc employees approach retirement, it is very important to discuss with your family the financial and legal implications that they will incur,' says Brent Wolf of The Retirement Group, a division of Wealth Enhancement Group.

Planning for retirement is not only about the individual’s preparation; it is about the generation of a strategy and comprehension of the prepared and unprepared,' states Kevin Landis from The Retirement Group, a division of Wealth Enhancement Group.

In this article, we will discuss:

1. Legal and Financial Preparations: The importance of giving legal authority to children for financial and medical decisions and sharing detailed financial plans.

2. Property and Asset Management: Learn how to manage and transfer property and how debt affects inheritance.

3. Healthcare and Incapacity Planning: Healthcare requirements and how to make legal arrangements for the event of incapacity.

It is very important to make sure that you have made your goals known to those who will be affected by your retirement plans, especially if you have dependents like children. It is wise to involve your family in the financial and health management decisions to be made after you leave the Cummins Inc company to benefit your family and yourself. The level of information disclosure may differ depending on the type of family relationships.

As part of your retirement preparations, it may be wise to grant your children legal authority to make financial and medical decisions on your behalf. If retirement has begun and these arrangements haven't been made, addressing this promptly is crucial. Early and open discussions about your retirement goals and circumstances are essential, especially before any potential health issues or other challenges arise.

Your House

Many retirees downsize to a smaller and easier to manage home. This decision is often triggered by various factors such as high maintenance costs, substantial property taxes, or the simple desire to change—the possibility of moving to another country or to a retirement community with additional features. This shift is both emotional and practical, especially if there are expectations about the family home’s future ownership or its sentimental value.

If the home is a large part of your assets, Cummins Inc retirees may be able to use the equity in your home to fund a comfortable retirement. On the other hand, if you are financially able, you could transfer the property title to your child. It is crucial to know the tax consequences of such a transfer. Your child may be taxed highly if they later sell the property after you gift the house while alive since they will not be able to take a step-up in cost basis on the property.

Your Indebtedness

Cummins Inc retirement with various debts, including credit card balances, mortgages, and even student loans, is becoming more common. You need to inform your children about these liabilities as they will affect their share of the inheritance. All non-assumable debts or home equity loans will require new financing to be settled.

Your Other Financial Assets and Retirement Accounts

Many retirees rely on the savings that they have accumulated in their working years, Social Security, and any pension that they have. The SECURE Act 2.0 has increased the age of required distributions from retirement accounts to 73, affecting the management of these assets. This is important so that your children know where your assets are located to avoid them being inaccessible when you die or become incapacitated.

Your Policy for Life

It is important to disclose the information regarding any life insurance policies since these will pay for the funeral and remaining medical expenses after your death.

Your Medical Plans

Retirement from Cummins Inc is a major problem in terms of healthcare as many retirees rely on Medicare or other private health insurance. These details have to be discussed with your children, including those for long-term care needs that are not covered by Medicare.

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In the Event of Your Incapacity

Having legal documents like power of attorney is important in case of incapacitation that is unexpected. This ensures that your wishes on where you want to be and what you want to do with your health are respected.

Your Choice

It is crucial to review and revise your will every now and then. This can help avoid confusion and can convey to everyone any special provisions or questionable provision of resources that may lead to conflict.

Any Company You Manage

If you own a business, then the future of the business, whether it will be sold or if it will be transferred to the next generation, needs to be discussed with your children to ensure a smooth transition and to set expectations.

Overarching Thoughts

It is important to know the typical retirement age in order to make informed financial decisions. Due to the fact that people live longer than before, retirement can stretch for many years, which calls for better financial planning.

Using Tools for Financial Planning

Virtual tools like stock trading simulators can be useful to gain real life experience of handling investments with real money consequences that can be useful for current and future retirees.

Ensuring that your children know the basics of your pension and other healthcare that you will get as a retiree when you were working at a Cummins Inc company makes the conversation easier. A 2020 report by the Employee Benefit Research Institute found that retirees are likely to be partially or completely wrong about these benefits, which means that they could have false ideas about their finances. This ensures that your children know these benefits, which are important in your retirement planning and may make them consider starting theirs.

Disclosing your retirement plans is a bit like giving the keys to a family car to your children. You can help your children understand the route you have in mind, the healthcare coverage you need, and the pension benefits you will be receiving – just as you would explain the condition and best features of a car before letting your children use it. It enables them to know what to do to continue the legacy and navigate the ‘vehicle’ correctly in the future.

Sources:

Warren Street Wealth Advisors: 'Cummins Inc and Large Company Employees.' In 2025, Warren Street Wealth Advisors offers specialized financial services for Cummins Inc employees, including one on one investment advice and retirement planning.
Chris Reddick Financial Planning, LLC: Reddick, Chris. 'How to Effectively Save for Retirement in Cummins Inc Companies.' Chris Reddick Financial Planning, LLC was established in 2018 March 2, from www.chrisreddickfp.com . This article examines the saving behaviours of different generations of Cummins Inc companies, the movement from pensions to 401(k) plans, and other changes.
Willis Towers Watson: 'DB Plans a Thing of the Past for Most Cummins Inc Companies.' The article, published on PLANSPONSOR on March 2, 2018, is available at www.plansponsor.com . This source is cited to show the decrease of defined benefit plans in Cummins Inc companies and other general changes in retirement planning.
Willis Towers Watson: 'Evolution of DB Plan Sponsorship for Cummins Inc Companies, 1998 – 2019.' The document provided by Willis Towers Watson is the historical data of the management of pension plans by Cummins Inc companies over the years, including the shift from traditional to hybrid plans.
HR Search & Rescue: 'F500 Benefits.' On the HR Search & Rescue website, you will find information on how Cummins Inc companies can improve their benefit packages to attract and retain employees, with emphasis on retirement and other benefits.

How does Cummins determine eligibility for participation in the Cummins Pension Plan, and what are the implications for employees who temporarily leave the workforce? This inquiry should delve into the specific criteria that define an eligible employee, such as citizenship requirements and exclusions, as well as the continuation of benefits and service credit during approved leaves or breaks in service at Cummins. It would also explore the complexities surrounding vesting and how service prior to a break is credited upon re-employment at Cummins.

Eligibility and Participation in the Cummins Pension Plan: Eligibility for the Cummins Pension Plan requires being an active employee, not participating in another Cummins defined benefit pension plan, and meeting certain citizenship or residency criteria. During approved leaves of absence, employees continue to accrue service credits, ensuring continuous growth in their pension benefits. Notably, vesting occurs after three years of service, securing the employee's entitlement to pension benefits upon leaving the company. The plan handles breaks in service by allowing reemployment within 12 months to count towards vesting and benefit calculations, safeguarding employee benefits against temporary disruptions in their career with Cummins.

What are the potential benefits and limitations of the forms of distribution available under the Cummins Pension Plan, and how should employees prepare for their pension benefit election? This question requires an analysis of various forms of distributions, such as lump sums versus annuities, highlighting the financial implications of each choice, particularly in relation to the IRS rules for 2024 regarding tax treatment. Employees should also consider how their family structure (e.g., marital status, dependents) may influence their decisions when electing a distribution method.

Distribution Forms and Tax Considerations: The Cummins Pension Plan offers various distribution forms, including lump sums and annuities, each with distinct tax implications under IRS rules for 2024. Employees must consider their family structure and tax status when choosing a distribution form, as these factors influence the tax treatment and financial outcome of their pension benefits. The plan provides clear guidelines on these options, ensuring employees can make informed decisions that align with their personal and financial circumstances.

In what ways do pay credits and interest credits accrue within the Cummins Pension Plan, and how can employees gauge their potential retirement benefits over time? This question will focus on the specifics of how pay credits are calculated based on an employee's compensation and service at Cummins, as well as the impact of interest credits on the total account balance and long-term retirement planning. It will also examine how employees can track these credits through the Cummins retirement resources.

Accrual of Pay and Interest Credits: The pension benefits at Cummins accrue through pay credits based on compensation and service, along with interest credits. Employees can monitor their accumulating benefits through the Cummins retirement resources, offering transparency and planning advantages. This structured accrual method supports employees in projecting their future pension benefits and making informed decisions about their retirement timing and financial needs.

How does Cummins ensure compliance with ERISA and other regulatory standards in the management of the Cummins Pension Plan, and what rights do employees have under these regulations? This query should explore Cummins' obligations as a fiduciary in managing employee benefits and highlight the key rights of plan participants. The discussion should include access to plan documents, the process for filing claims, and the significance of ERISA protections for employees retired from Cummins.

Regulatory Compliance and Employee Rights: Cummins diligently adheres to ERISA standards in managing the pension plan, emphasizing fiduciary responsibility and ensuring participants' rights are upheld. Employees have rights to access plan documents, participate in claims and appeals processes, and are protected under ERISA from any plan-related discrimination. This regulatory compliance not only secures the integrity of their pension benefits but also reinforces the legal framework protecting participant rights.

What role does the Pension Benefit Guaranty Corporation (PBGC) play in safeguarding the retirement benefits of Cummins employees, and how does this affect the perception of the plan's reliability? This question would examine the insurance coverage provided by the PBGC, what types of benefits are guaranteed, and under what circumstances benefits may not be fully covered. Employees might analyze how this federal insurance impacts their confidence in the plan, especially in light of changing economic conditions.

Role of the Pension Benefit Guaranty Corporation (PBGC): The PBGC insures the pension benefits under the Cummins Plan, providing a safety net that enhances the reliability of these benefits. Employees covered by the plan can gain confidence in the security of their pensions, knowing that even in the face of potential plan termination, the PBGC guarantees the core benefits, subject to certain legal limits and conditions.

How does the Cummins Pension Plan interface with employees' Social Security benefits, and what should retirees consider when planning for a sustainable retirement income? This inquiry will look at the coordination of benefits under the Cummins plan with Social Security, examining how pension income might influence Social Security calculations. It would require discussions on the timing of retirement elections and how they align with Social Security claims.

Interaction with Social Security Benefits: The Cummins Pension Plan is designed to integrate smoothly with Social Security benefits, offering provisions that help plan participants optimize their total retirement income. Understanding this interaction allows employees to strategically plan their retirement age and benefit commencement, maximizing their financial stability in later life.

What are the specific procedures and deadlines that Cummins employees should follow to successfully elect a distribution from the Cummins Pension Plan upon retirement? This question will necessitate a detailed look at the steps involved in initiating a benefit distribution, including the importance of spousal consent, the timing of application submissions, and any documentation that may be required. Understanding these processes can significantly affect the financial outcomes for retirees.

Procedures and Deadlines for Electing Pension Distribution: The Cummins Pension Plan outlines specific procedures and deadlines for electing a distribution upon retirement, emphasizing the importance of timely and informed decision-making. By understanding these processes, employees can avoid delays and ensure that they receive their pension benefits in the manner that best suits their post-retirement financial plans.

What are the implications of choosing to defer pension benefits and how does the Cummins Plan accommodate employees who opt not to start their benefits at the normal retirement date? This inquiry could address the potential financial consequences of deferring benefits, including eligibility requirements for such deferral and how it aligns with IRS regulations. Employees should critically evaluate their financial situations and retirement goals, weighing the allure of continued employment against starting their retirement benefits sooner.

Deferring Pension Benefits: Employees at Cummins have the option to defer their pension benefits beyond the normal retirement date, which can influence the financial value of their benefits. The plan provides guidelines on how deferral impacts benefit calculations and distributions, assisting employees in making decisions that align with their long-term financial goals.

How can Cummins employees designating beneficiaries ensure that their wishes are respected concerning death benefits, particularly in light of recent changes in the pension landscape? This question focuses on the options available to employees for designating beneficiaries, the process for updating these designations over time, and the specific forms that need to be completed to ensure compliance with the Cummins Pension Plan. It will also discuss the impact of state and federal laws on these designations.

Designating Beneficiaries and Ensuring Compliance: The plan stipulates clear processes for designating beneficiaries for pension benefits, ensuring that employees' wishes are respected and legally documented. This is crucial for planning and securing financial provisions for survivors, reflecting the plan's comprehensive approach to retirement benefits.

How can Cummins employees contact the Cummins Retirement Benefits Service Center to obtain more information about the Cummins Pension Plan and related retirement processes? This question emphasizes the various channels through which employees can reach out to the service center, the types of queries they can address regarding the Cummins Pension Plan, and the resources available online to assist with pension-related inquiries. Employees are encouraged to take advantage of these resources to make informed decisions regarding their retirement planning.

Accessing Information and Assistance: Cummins provides multiple channels for employees to access information and assistance regarding their pension plan, including online resources and a dedicated service center. This accessibility ensures that employees can obtain detailed information and personalized support, enabling them to navigate their pension benefits effectively.

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

Cummins Inc. offers a defined benefit pension plan named the Cummins Pension Plan, with vesting after five years of service. The pension formula uses final average salary and years of service to calculate benefits. Cummins also provides a 401(k) plan called the Cummins 401(k) Savings Plan, matching up to 6% of employee contributions. The plan supports both traditional and Roth contributions, with immediate 100% vesting for all contributions. [Source: Cummins Benefits Handbook, 2022, p. 15]

Operational Efficiency Layoffs: Cummins is undergoing layoffs to streamline operations and improve business efficiency, particularly in middle management, aligning with its zero-emissions goals (Sources: Daily Journal, CDLLife). Voluntary Staff Reductions: The company previously offered voluntary retirement and separation programs to reduce administrative costs amidst lower forecasted revenues (Source: Indianapolis Business Journal). Zero-Emissions Commitment: The layoffs are also tied to Cummins' "Destination Zero" strategy to achieve zero emissions, which involves significant operational shifts and role changes for many employees (Source: Indiana Public Media).

Cummins Inc. provides stock options and RSUs as part of its equity compensation packages. Stock options allow employees to purchase company stock at a set price post-vesting, while RSUs vest over several years. In 2022, Cummins enhanced its equity programs with performance-based RSUs. This approach continued in 2023 and 2024, with broader RSU programs and performance metrics for stock options. Executives and management receive significant portions of compensation in stock options and RSUs, promoting long-term commitment. [Source: Cummins Annual Reports 2022-2024, p. 75]

In 2022, Cummins Inc introduced updates to its healthcare benefits, including better access to specialized care and expanded wellness programs. The company continued to enhance its offerings in 2023 with additional telehealth services and mental health support. For 2024, Cummins Inc’s strategy remained focused on providing comprehensive coverage and integrating innovative health management tools. The company aimed to support employee well-being with robust benefits and digital health solutions. Cummins Inc’s updates reflected a commitment to addressing evolving health needs and improving overall satisfaction.

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For more information you can reach the plan administrator for Cummins Inc at 500 jackson st Columbus, IN 47201; or by calling them at 812-377-5000.

https://www.cummins.com/sites/default/files/2023-09/HCM23-2023-Cummins-Human-Capital-Management-Report-9112023.pdf - Page 10, https://annualreport.stocklight.com/nyse/cmi/23627796.pdf - Page 37, https://investor.cummins.com/sec-filings/annual-reports/content/0000026172-23-000005/0000026172-23-000005.pdf - Page 50, https://www.cummins.com/documents/employee-benefits/pension-plan2022.pdf - Page 12, https://www.cummins.com/documents/employee-benefits/401k-plan2023.pdf - Page 17, https://www.cummins.com/documents/employee-benefits/rsu-plan2024.pdf - Page 23, https://www.cummins.com/documents/employee-benefits/stock-options2023.pdf - Page 30, https://www.cummins.com/documents/employee-benefits/healthcare-plan2024.pdf - Page 28, https://www.cummins.com/documents/employee-benefits/annual-report2023.pdf - Page 40, https://www.cummins.com/documents/employee-benefits/retirement-guide2024.pdf - Page 35