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Nordson Employees: 401(k)s Could Be Replaced to Strengthen Social Security

Healthcare Provider Update: Nordson offers a comprehensive benefits package to its U.S. employees, including medical, dental, vision, and prescription coverage. The company supports employee wellness through HSAs, FSAs, and a wellbeing program. Retirement benefits include both traditional and Roth 401(k) options, life insurance, and disability coverage. Nordson also provides paid time off, adoption reimbursement, and tuition assistance5. Healthcare costs in the United States are projected to continue rising through 2026, with insurers proposing significant premium increases for Affordable Care Act (ACA) plans. A recent analysis found that ACA insurers are seeking a median premium increase of 15% for 2026, marking the largest hike since 2018. This surge is attributed to factors such as the anticipated expiration of enhanced premium tax credits, rising medical costsincluding expensive medications and increased hospital staysand a shift in the risk pool towards higher-cost enrollees. Without the renewal of enhanced subsidies, out-of-pocket premiums for ACA marketplace enrollees could increase by more than 75% on average. Click here to learn more

The importance of retirement planning cannot be overstated in a society where longevity is on the rise and financial independence in old age is more crucial than ever. For Nordson employees, the journey to a secure retirement is fraught with challenges such as escalating healthcare costs, increased living expenses, and persistent inflation. These financial pressures cast doubt on the sustainability of Social Security. Experts warn that without necessary reforms, Social Security might face significant deficits by 2035, potentially reducing future retiree benefits.

Economists Andrew Biggs and Alicia Munnell have sparked a lively debate with their suggestion to dissolve tax-sheltered savings vehicles like 401(k)s and IRAs to bolster Social Security. They question the effectiveness of current retirement policies and base their proposal on an analysis of retirement savings disparities across various income levels.

The widely recognized benefits of pre-tax contributions to retirement accounts, such as 401(k)s, include reduced taxable income and enhanced retirement savings. These features are especially beneficial for Nordson employees who enjoy employer-matched contributions and other incentives that boost their retirement reserves.

However, Munnell and Biggs argue that these popular plans do not significantly increase overall retirement savings. They cite U.S. Treasury data indicating that tax breaks for retirement plans cost the federal government between $185 billion and $189 billion in lost revenue in 2020 alone. They also note that the wealthier segments of society disproportionately benefit from these tax incentives, suggesting that reallocating these funds could significantly narrow Social Security's budgetary gap and enhance the program's stability for all retirees.

Supporting this perspective are the Federal Reserve's 2022 figures, which reveal stark differences in retirement savings: the top 10% of earners average $1.29 million in retirement funds, whereas the median savings for middle-income individuals is just $87,000. The decline of traditional pension plans over recent decades has exacerbated this issue, particularly affecting employees at smaller firms.

To address these inequalities, Munnell and Biggs propose several solutions, such as limiting tax advantages for high earners or adjusting contribution limits to more equitably distribute tax benefits across different income levels.

Currently, about 66 million Americans receive monthly Social Security payments. Funded primarily through tax revenues, the program is projected to deplete its trust funds by 2035, slightly earlier than previous estimates from the Congressional Research Service. The Committee for a Responsible Federal Budget cautions that insolvency could affect those nearing retirement within the next decade.

Proposals to sustain Social Security include abolishing tax-preferred retirement savings vehicles, along with other measures like increasing the retirement age, ceasing the taxation of Social Security benefits, and imposing higher taxes on affluent incomes.

As legislative discussions progress, especially in the context of upcoming elections, lawmakers will scrutinize the retirement system to determine steps necessary to ensure the financial security of millions of seniors. Despite political divisions in Congress, the path forward remains uncertain.

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It is crucial for Nordson employees concerned about their retirement resources to consult with a trustworthy financial or tax advisor. Keeping abreast of changes in retirement planning laws, such as those introduced by the SECURE 2.0 Act, is also vital for ensuring a stable and secure retirement and successful financial management.

Recent research by the Pew Research Center highlights that over 60% of individuals approaching retirement age lack confidence in their retirement investment strategies. This underscores the importance of financial education initiatives, particularly in the ongoing debates about the future of Social Security and 401(k) plans. Enhancing understanding of retirement planning could help individuals make more informed decisions, regardless of potential legislative changes to Social Security or tax-advantaged retirement plans, ultimately leading to more financially secure retirements.

How does the Nordson Corporation Salaried Employees Pension Plan calculate an employee's Accrued Benefit, and what factors need to be considered to ensure accurate pension benefits at retirement? Understanding the components that contribute to the calculation is crucial for employees planning their retirement through Nordson Corporation.

Accrued Benefit Calculation: Nordson Corporation calculates an employee’s Accrued Benefit based on the Final Average Monthly Pay, the number of Years of Benefit Service, and an estimate of the employee’s Social Security benefit. The formula used includes a reduction if an employee has less than 30 Years of Benefit Service(Nordson Corporation_Feb…).

What are the eligibility criteria for joining the Nordson Corporation Salaried Employees Pension Plan, and how can employees determine their vesting status as they approach retirement? It is essential for employees to be aware of the timelines and requirements necessary to fully benefit from the retirement plan offered by Nordson Corporation.

Eligibility Criteria: Employees become eligible for the Nordson Corporation Salaried Employees Pension Plan after completing a Year of Eligibility Service, which requires at least 1,000 hours of work annually. Vesting occurs after completing 5 Years of Vesting Service, ensuring full entitlement to benefits(Nordson Corporation_Feb…).

In what ways can employees at Nordson Corporation access information about their pension plan benefits, and what steps should they follow if they believe their claims for benefits were denied? Knowing the appropriate channels for receiving information can help employees navigate any discrepancies with their pension benefits.

Accessing Pension Information and Claiming: Employees can access their pension plan details through John Hancock’s website or phone service. If a benefit claim is denied, employees can follow the claims procedure outlined by Nordson, which includes submitting a written request and appealing decisions(Nordson Corporation_Feb…).

What options does Nordson Corporation provide for early retirement, and how can employees assess whether an early retirement is financially feasible for them? Understanding the implications of early retirement can significantly impact an employee's long-term financial security.

Early Retirement Options: Nordson Corporation offers early retirement options starting at age 55, with at least 5 years of vesting service. Benefits are reduced by 6% per year for each year that early retirement is taken before the Normal Retirement Date(Nordson Corporation_Feb…).

How does Nordson Corporation's pension plan ensure that employees receive monthly benefits post-retirement, and what are the different forms of payment available to retirees? Grasping the payment structures may help employees make informed decisions regarding their retirement income.

Monthly Benefit Payments: Employees retiring from Nordson Corporation can choose various payment methods, including a Life Annuity or a 50% Joint & Survivor Annuity for married participants. Payments start after the Normal Retirement Date or early retirement, depending on the selected option(Nordson Corporation_Feb…).

What rights do participants have under the Employee Retirement Income Security Act (ERISA) concerning their Nordson Corporation pension plan, and what should they do to enforce these rights effectively? Employees should be aware of their rights to protect themselves during the benefit claiming process.

ERISA Rights: Under ERISA, participants have the right to receive information about their benefits, file claims, and sue if benefits are denied. Plan fiduciaries must act in the best interest of employees, and participants are protected from retaliation for asserting their rights(Nordson Corporation_Feb…).

How does the termination or amendment of the Nordson Corporation Salaried Employees Pension Plan affect employees' accrued benefits, and what protections are in place? Awareness of these scenarios can help employees better plan their financial futures in relation to their pensions.

Plan Termination or Amendment: If the plan is terminated or amended, accrued benefits cannot be reduced, and employees’ benefits become 100% vested. This ensures that employees retain the benefits they have earned up to the point of the change(Nordson Corporation_Feb…).

In what situations might employees at Nordson Corporation lose their pension benefits, and what preventative actions can they take to ensure they remain eligible for these benefits? Understanding the risks involved in pension plans can aid employees in maintaining their retirement security.

Loss of Pension Benefits: Employees may lose pension benefits if they leave Nordson Corporation before vesting or fail to select appropriate survivor options. Keeping the Plan Administrator informed of current contact information is crucial to avoid losing benefits(Nordson Corporation_Feb…).

How can employees at Nordson Corporation address questions or concerns related to their retirement planning, and what resources are available for personalized assistance? Access to proper resources is vital for employees needing guidance throughout their retirement journey.

Retirement Planning Resources: Employees can contact the Plan Administrator or use John Hancock’s automated services to address questions about retirement planning. Personalized assistance is available for any specific pension-related inquiries(Nordson Corporation_Feb…).

What steps should employees take to contact Nordson Corporation or the Plan Administrator to get detailed information about their pension plan, and what should they include in their inquiries to ensure a comprehensive response? Effective communication techniques can significantly enhance employees' understanding of their benefits. These questions have been designed to help employees of Nordson Corporation navigate their pension plan and retirement effectively.

Contacting the Plan Administrator: Employees can contact Nordson Corporation or the Plan Administrator by calling the number listed in the Summary Plan Description. It’s advisable to provide detailed questions regarding benefit amounts, vesting status, or payment options to receive a thorough response(Nordson Corporation_Feb…).

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

Pension Plan Name: Nordson Corporation Retirement Plan Qualification Criteria: Years of Service: Generally requires a minimum of 5 years. Age Qualification: Typically eligible at age 65. Pension Formula: Formula is based on a percentage of final average salary and years of service. 401(k) Plan Name: Nordson Corporation 401(k) Savings Plan Qualification Criteria: Employees are eligible to participate after completing 30 days of service. Company Contribution: Nordson matches employee contributions up to a certain percentage.

News: In early 2024, Nordson Corporation announced a significant restructuring plan, including a reduction of approximately 5% of its global workforce. This move was part of a broader strategy to streamline operations and improve overall efficiency. The company also updated its employee benefits package, including modifications to its pension and 401k plans. Specific changes included adjusting the company’s matching contributions and modifying pension benefit accrual rates.

Nordson Corporation (NDSN) provides stock options and RSUs to employees as part of their compensation packages. Stock options at Nordson Corporation (NDSN) are generally granted to senior executives and key employees based on performance and tenure. RSUs are also awarded to employees as a form of long-term incentive, typically vesting over a period of time.

Benefits Overview: Nordson's official site provides information on various health benefits including medical, dental, and vision insurance plans. Employees have access to comprehensive health coverage, which typically includes options for health savings accounts (HSAs) and flexible spending accounts (FSAs). Recent Updates: The company has updated its benefits plans over the years. Specific changes for 2022, 2023, and 2024 can be found in their annual benefits summaries or employee communications.