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

Understanding Creditor Protections forMosaic Employees

Healthcare Provider Update: Healthcare Provider for Mosaic Mosaic is known for its commitment to quality health services, focusing on advanced specialty care. This commitment is underpinned by a range of healthcare providers who collaborate within the organization, prioritizing value-based care to enhance patient outcomes and reduce overall healthcare costs. Healthcare Cost Increases in 2026 As healthcare costs are projected to rise sharply in 2026, consumers, particularly those in the Affordable Care Act (ACA) marketplace, may face substantial financial burdens. With reports indicating possible premium hikes of over 60% in some states due to increasing medical expenses and the potential expiration of enhanced federal subsidies, many average consumers could see their out-of-pocket costs surge by up to 75%. This situation highlights the pressing need for strategic planning in healthcare spending and coverage selection well ahead of the looming increases. Click here to learn more

'Mosaic employees must be aware that while ERISA-qualified plans provide significant protection from creditors, non-ERISA accounts like IRAs are more vulnerable, and it's crucial to understand state-specific laws to ensure full asset security as you approach retirement,' says Tyson Mavar, a representative of The Retirement Group, a division of Wealth Enhancement Group.

'As retirement approaches, Mosaic employees should consider not only the strength of their ERISA-qualified plans but also the potential vulnerabilities of non-ERISA accounts, and seek guidance from legal and financial experts to ensure their assets are fully protected,' advises Tyson Mavar, a representative of The Retirement Group, a division of Wealth Enhancement Group.

In this article, we will discuss:

The protection of retirement savings under ERISA-qualified plans.
The limitations of ERISA protection, including potential risks from creditors.
The role of state laws in protecting non-ERISA retirement accounts like IRAs.

For employees at Mosaic, an important issue is the security of retirement savings, especially when employees approach the retirement age or are retired. It is generally assumed that all retirement assets are protected from creditors. Nevertheless, the extent to which these assets are protected differs greatly depending on the type of retirement plan and the laws of the state. In this article, we explore the specifics of asset protection.

Plans Covered by ERISA: A Stronghold Against Creditors
Most of the retirement plans that meet the eligibility requirements of the Employee Retirement Income Security Act (ERISA) are generally safe. Such ERISA-qualified plans are also usually safe from the reach of creditors in the event of bankruptcy or civil suits. Importantly, this protection is maintained even if the company sponsoring the plan goes bankrupt. These assets are usually out of the reach of personal creditors.

To meet the ERISA requirements, a retirement plan must be offered by an employer or an employee organization and must meet certain federal requirements regarding membership reporting, funding, and vesting. Typical ERISA-qualified plans include profit-sharing plans, pensions, deferred compensation plans, and 401(k)s.

Furthermore, ERISA applies to some employee health and welfare benefits, such as:

Hospital, surgical, and medical coverage through Health Maintenance Organization (HMO) plans.
Health care Flexible Spending Accounts (FSAs) and Health Reimbursement Arrangements (HRAs).
Dental and vision plans.
Prescription drug programs.
Disability insurance.
Specific welfare benefit plans under sections 419(a)(f)(6) and 419(e).

The anti-alienation clause in these plans prohibits the assignment of benefits and thus keeps the assets beyond the reach of most creditors.

Weaknesses of ERISA-Qualified Plans
Although they are very strong, ERISA plans are not foolproof. They can be subject to claims by:

A former spouse for child support or divorce settlements, with a Qualified Domestic Relations Order (QDRO).
The Internal Revenue Service (IRS) for any unpaid federal income taxes.
The federal government in cases involving fines and penalties for crimes.
Creditors in the event that a plan participant breaches the terms of the plan.

The State of Non-ERISA Plans
The protection of retirement accounts that are not covered by ERISA, such as traditional and Roth IRAs, is not uniform. Some 403(b) plans offered by government or religious organizations may also not be ERISA plans.

Featured Video

Articles you may find interesting:

BAPCPA provides some protection for IRA funds in bankruptcy, but such funds are not protected by ERISA.

State Laws and IRA Security
The protection of IRAs and other non-ERISA plans against creditors can vary greatly by state. Some offer little protection, while others offer almost none. It is imperative to know these nuances in order to manage the risk of potential creditor claims. Mosaic employees are encouraged to seek the advice of experienced local attorneys in order to navigate these complex legal situations.

Conclusion
The legality of protecting retirement funds from creditors depends on the type of retirement account, state laws, and certain exemptions. Although most employer-sponsored retirement plans are relatively safe, the legal framework is complex, and it is advisable to seek legal advice early to maximize the protection of retirement assets.

Sources:

Mavar, Tyson. The Retirement Group, a Division of Wealth Enhancement Group . Interview. January 2025.

'ERISA: A Guide to Employee Retirement Income Security Act.' U.S. Department of Labor , 2024, www.dol.gov/general/topic/retirement/erisa . Accessed 31 Jan. 2025.

'How Bankruptcy Affects Retirement Accounts.' National Bankruptcy Forum , 2023, www.nationalbankruptcyforum.com/affects-of-bankruptcy-on-retirement-accounts . Accessed 31 Jan. 2025.

'State Laws and IRA Protection.' Retirement Law Journal , vol. 12, no. 4, 2024, pp. 47-52.

'Understanding Qualified Domestic Relations Orders (QDROs).' Internal Revenue Service , 2023, www.irs.gov/retirement-plans/plan-participant-employee/understanding-qualified-domestic-relations-orders . Accessed 31 Jan. 2025.

What is the 401(k) plan offered by Mosaic?

The 401(k) plan at Mosaic is a retirement savings plan that allows employees to save a portion of their paycheck before taxes are taken out.

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

Mosaic offers a company match of 50% on employee contributions up to 6% of their salary, helping employees maximize their retirement savings.

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

Employees at Mosaic can enroll in the 401(k) plan during the initial onboarding process and during the annual open enrollment period.

Is there a vesting schedule for Mosaic's 401(k) plan?

Yes, Mosaic has a vesting schedule for company contributions, which typically requires employees to work for a certain number of years before they fully own the employer match.

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

Mosaic offers a variety of investment options, including target-date funds, index funds, and actively managed funds, allowing employees to choose based on their risk tolerance.

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

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

What happens to my 401(k) if I leave Mosaic?

If you leave Mosaic, you can choose to roll over your 401(k) balance to another retirement account, cash it out, or leave it in the Mosaic plan if eligible.

Does Mosaic offer financial education resources for its 401(k) plan?

Yes, Mosaic provides financial education resources, including workshops and one-on-one consultations, to help employees make informed decisions about their 401(k) savings.

How often can employees change their contribution rate to the Mosaic 401(k) plan?

Employees at Mosaic can change their contribution rate at any time, subject to the plan’s guidelines.

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

Yes, there may be administrative fees and investment-related fees associated with Mosaic's 401(k) plan, which are disclosed in the plan documents.

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

The Mosaic Company provides its employees with a robust 401(k) retirement plan, offering several benefits designed to enhance financial wellness. The Mosaic 401(k) plan allows employees to make pre-tax payroll deductions, which contribute to their retirement savings, with tax-deferred growth. Mosaic also supports employees through company matching contributions and annual company contributions, helping to grow their retirement accounts. The plan offers a wide range of investment options, and employees can manage their accounts through Fidelity, which provides access to tools, calculators, and account management options. Eligibility for the Mosaic 401(k) plan includes full-time employees, with options for part-time and hourly workers depending on their hours of service. The plan allows for automatic payroll deductions and enrollment at any time, providing flexibility to employees. Mosaic uses Fidelity's platform for all aspects of the 401(k) plan, including account management and beneficiary updates (Mosaic Benefits). For Mosaic's pension plan, details are typically outlined in the company's summary plan description documents. The pension plan, often referred to as a Defined Benefit Plan, considers factors such as years of service and age qualification. Employees typically qualify after completing a certain number of years of service, which is standard in defined benefit plans across industries. Further details about the pension plan name, specific formulas, and eligibility would be available in company documents, such as the Summary Plan Description, which can be requested from Mosaic's HR department

In 2024, Mosaic Insurance underwent a significant restructuring of its underwriting and operational teams. The restructuring was aimed at supporting the company’s strategic expansion and driving growth for its agency business. The reorganization led to the redistribution of roles across key operational areas and advancements in technological integration. Key personnel updates included the promotion of leaders in strategic finance, corporate affairs, digital and AI strategy, and underwriting. This restructuring demonstrates Mosaic’s focus on evolving its global agency model and fostering partnerships that bring innovative solutions to the market (Royal Gazette) (Royal Gazette).

Mosaic (MOS) offers both employee stock options and Restricted Stock Units (RSUs) as part of its compensation package, with specific eligibility and conditions tied to each. The stock options are divided into Non-Qualified Stock Options (NQSOs) and Incentive Stock Options (ISOs). NQSOs are available to employees, contractors, directors, and advisors, while ISOs are limited to employees and are capped at $100,000 per year in exercisable value. RSUs can also be awarded to employees, contractors, directors, and advisors, with no set annual limits. In 2022, 2023, and 2024, Mosaic has continued to offer stock options and RSUs to key personnel, especially employees contributing to long-term company growth. Mosaic stock options grant the right to purchase company stock at a set price, and vesting schedules are typically spread over several years.

Medical Premiums: For both 2023 and 2024, employees saw slight increases in medical premiums. The monthly premium rise was approximately $6 to $29 in 2023 and $5 to $25 in 2024, depending on the plan. These adjustments reflected national trends while maintaining lower increases than expected. Dental and Vision: For four consecutive years, Mosaic maintained stable costs for dental and vision plans, ensuring that employee contributions did not rise. Wellness Incentives: Mosaic offers a $500 wellness incentive for employees and spouses/domestic partners who participate in personal health screenings under the company’s health plan. This incentive continues into 2024 as part of their focus on preventive care. Flexible Time Off: In addition to health benefits, Mosaic implemented a "Flexible Time Off" program allowing employees to take time for vacation, illness, mental health, and volunteering.

Additional Articles

Check Out Articles for Mosaic employees

For more information you can reach the plan administrator for Mosaic at , ; or by calling them at .

https://carlsoncap.com/articles/nua-net-unrealized-appreciation/ https://turbotax.intuit.com/tax-tips/retirement/net-unrealized-appreciation-nua-tax-treatment-amp-strategies/c71vBJZ2B https://creativeplanning.com/insights/financial-planning/how-to-use-the-net-unrealized-appreciation-nua-strategy-in-your-401k/ https://investors.mosaicco.com/press-releases/news-details/2024/Mosaic-Announces-Dates-For-First-Quarter-2024-Results-And-Conference-Call-/default.aspx https://themosaiccompany.com/ https://www.nasdaq.com/press-release/mosaic-announces-first-quarter-2024-results-2024-05-01 https://mosaicco.com/ https://www.principal.com/businesses/trends-insights/interest-rates-are-rise-and-may-impact-your-lump-sum-benefits https://www.foxrothschild.com/publications/interest-rate-hikes-present-challenge-for-fully-funded-pension-plans https://last10k.com/sec-filings/mos/0001618034-22-000004.htm https://annualreport.stocklight.com/nyse/mos/23658772.pdf https://zajacgrp.com/insights/a-comparison-of-employee-stock-options-vs-restricted-stock-units/ https://www.royalgazette.com/reinsurance/business/article/20240715/mosaic-in-restructuring-exercise/ https://www.paulweiss.com/practices/transactional/private-equity/news/mosaic-spac-completes-merger-with-vivint-smart-home?id=30516https://www.govconwire.com/ https://www.thewealthadvisor.com/article/layoffs-soared-98-2023-employers-cost-cutting-mode https://www.pymnts.com/technology/2024/tech-layoffs-reach-132000-8-months-into-2024/ https://www.brianheger.com/2023-layoff-tracker-of-organizations-announcing-job-cuts-brian-heger/ https://benefits.mosaicco.com/Financial/401k https://www.mosaicretirementplanning.com/resources/retirement-income-calculator https://www.independentactuaries.com/2024-plan-limits/ https://www.emparion.com/cash-balance-plan-lifetime-contribution-limits/