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

Navigating Retirement Changes: What Hershey Employees Need to Know About the Upcoming Pension Freeze

Healthcare Provider Update: Healthcare Provider for Hershey: The Hershey Company utilizes a comprehensive employee health plan primarily administered by Aetna. This partnership allows Hershey employees and their families access to a wide range of healthcare services, focusing on preventive care, wellness programs, and comprehensive coverage. Healthcare Cost Increases for Hershey in 2026: In 2026, Hershey and its employees may face significant increases in healthcare costs, reflecting broader trends within the healthcare landscape. With anticipated ACA premium hikes, many enrollees could see their out-of-pocket costs surge by over 75% due to the potential expiration of enhanced federal premium subsidies. Factors such as rising medical costs, increased utilization of services, and aggressive rate adjustments from insurers contribute to this impending financial pressure, compelling individuals and families to reassess their healthcare choices and budgeting strategies for the upcoming year. Click here to learn more

Understanding the perspectives and preparedness levels of Hershey employees who are nearing or have entered retirement is crucial as the landscape of retirement planning evolves. A comprehensive analysis was conducted through the 21st annual retirement survey by Allspring Global Investments , which offers significant insights into the preparedness and confidence levels of retirees and those close to retirement.

The survey, carried out by Escalent for Allspring from September 5 to September 28, 2023 , involved 320 financial advisors, 763 retirees (average age 70), and 752 individuals approaching retirement (average age 61). Participants with investable assets of at least $200,000 demonstrated varied readiness and understanding of their financial futures.

Contrary to the 40% of financial advisors who believe their clients are prepared for retirement, the findings showed that 65% of retirees and near-retirees feel they are on track for a secure future. This indicates a potential overconfidence among retirees, particularly concerning crucial retirement planning elements.

The study also examined various other subjects including general financial planning , Medicare, and Social Security. Only 44% of near-retirees and just over 50% of retirees felt they had adequate knowledge about Social Security, whereas a mere 11% of advisors agreed. A similar gap was observed in Medicare planning, with 46% of retirees and 30% of near-retirees confident in their understanding, compared to only 8% of advisors. General financial literacy showed only 14% of advisors felt as confident as 65% of retirees and 54% of near-retirees.

Ron Cohen, head of Allspring's defined contribution investment-only distribution, commented, 'Investors are entering retirement less prepared than they think.' Among the surveyed near-retirees, 53% reported having sought expert advice, aligning with the previous year’s figures.

A key trend noted in the poll is the reliance on advisor services provided by employers through 401(k) or 403(b) plans. Among top companies, including those from Hershey, 60% acknowledged the availability of these services, and 47% would consult an advisor associated with their workplace plan as often as they would seek external advice, underscoring the role of employers in retirement planning.

The survey also explored the timing of retirement, revealing diverse experiences : 37% retired earlier than planned, 6% later, and 39% wished they had retired sooner to enjoy life more. Eighteen percent felt their retirement timing was just right. Retirees indicated a need for $1.1 million, while near-retirees estimated at least $1.6 million for a comfortable retirement.

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In related developments, Atria Wealth Management Solutions Inc. is set to be acquired by LPL Financial Holdings Inc. for $805 million, with additional potential paymenst up to $230 million, expanding its network. Founded in 2017 with support from Lee Equity Partners, Atria manages several broker/dealer subsidiaries and plans to integrate its assets into the LPL platform by mid-2025.

Dan Arnold, LPL's president and CEO, highlighted the acquisition's aim to enhance LPL's services and support for retirement plan specialists. Also, the Department of Labor’s Employee Benefits Security Administration (EBSA) announced impressive enforcement results for 2023, recovering $1.44 billion through various actions. Lisa Gomez, assistant secretary of labor overseeing EBSA, emphasized their role in protecting employee benefits and ensuring fair processes.

These findings and developments underscore the importance of well-informed decisions and adequate preparation time in retirement planning from Hershey. The dynamic nature of the sector and the critical role of regulatory oversight in protecting retirees' interests are evident. Recent research by the American Association of Retired Persons (AARP) shows that regular consultations with licensed financial planners typically increase retirement income by 20%, underscoring the value of professional financial advice.

What is the Hershey 401(k) plan?

The Hershey 401(k) plan is a retirement savings plan that allows employees to save for their future by contributing a portion of their salary on a pre-tax or post-tax basis.

How does Hershey match employee contributions to the 401(k) plan?

Hershey offers a matching contribution to the 401(k) plan, typically matching a percentage of employee contributions, up to a certain limit.

When can employees at Hershey enroll in the 401(k) plan?

Employees at Hershey can enroll in the 401(k) plan during their initial onboarding period or during specific open enrollment periods throughout the year.

What investment options are available in Hershey's 401(k) plan?

Hershey's 401(k) plan provides a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to help employees diversify their retirement savings.

Can employees at Hershey take loans against their 401(k) savings?

Yes, Hershey allows employees to take loans against their 401(k) savings, subject to specific terms and conditions outlined in the plan.

What is the vesting schedule for Hershey's 401(k) matching contributions?

The vesting schedule for Hershey's 401(k) matching contributions typically follows a graduated schedule, meaning employees earn ownership of the match over a specified period of service.

How can Hershey employees access their 401(k) account information?

Hershey employees can access their 401(k) account information through the company's employee benefits portal or by contacting the plan administrator.

What happens to a Hershey employee's 401(k) if they leave the company?

If a Hershey 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 Hershey plan if eligible.

Are there any fees associated with Hershey's 401(k) plan?

Yes, there may be fees associated with Hershey's 401(k) plan, such as administrative fees or investment management fees, which are disclosed in the plan documents.

How does Hershey educate employees about the 401(k) plan?

Hershey provides educational resources, workshops, and one-on-one consultations to help employees understand their 401(k) options and make informed decisions.

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

Hershey announced a series of organizational changes aimed at streamlining operations and improving efficiency. This includes a reduction in workforce as part of a broader restructuring effort. The company stated that these measures are necessary to adapt to changing market conditions and to position itself for future growth. The layoffs and restructuring are a response to the current economic climate, which demands greater agility and cost management. Given the evolving economic and political landscape, staying informed about these changes is crucial for understanding their impact on the company's strategic direction and employee relations.

Stock Options: Hershey offers stock options as part of its employee compensation packages. The options are typically granted to senior executives and key employees based on performance metrics and tenure. (Source: Hershey 2022 Annual Report, p. 58) RSUs: Restricted Stock Units are granted to employees as a form of long-term incentive. RSUs at Hershey are usually awarded to senior management and high-potential employees, vesting over a period of time. (Source: Hershey 2023 Proxy Statement, p. 34) Eligibility: Hershey's stock options and RSUs are generally available to senior executives, directors, and sometimes high-performing employees. These incentives are designed to align employee interests with company performance. (Source: Hershey 2024 Form 10-K, p. 45)

Employee Reviews: Employees have noted positive aspects of Hershey’s health benefits, including the comprehensive nature of their health coverage and wellness programs. However, there have been occasional comments about the high costs associated with some of the plans. Recent Changes: There has been no significant news about major changes to Hershey’s health benefits from employee reviews on Glassdoor.