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

Why Navigating Personal Loans is Crucial for Harsco Employees

Healthcare Provider Update: Healthcare Provider for Harsco Harsco Corporation, a global supplier of industrial services and engineered products, typically partners with prominent healthcare providers for employee health plans. Among the notable providers, Aetna often serves as a primary healthcare partner, offering comprehensive health insurance solutions, including medical, dental, and wellness programs tailored to the needs of Harsco employees. Potential Healthcare Cost Increases in 2026 As we look to 2026, healthcare costs are anticipated to surge significantly, driven by a confluence of factors. With many states facing imposed premium hikes of over 60%, particularly for Affordable Care Act (ACA) marketplace plans, employees of Harsco may experience drastic changes in their out-of-pocket healthcare expenses. The potential expiration of enhanced federal premium subsidies will amplify these increases, with more than 22 million enrollees projected to see monthly costs rise by an average of 75%. Coupled with escalating medical costs and aggressive rate adjustments from top insurers, navigating the healthcare landscape will require strategic planning to mitigate financial impacts. Click here to learn more

As a representative of The Retirement Group, a division of Wealth Enhancement Group, I advise Harsco employees nearing retirement to carefully consider the implications of family loans—both legal and financial—by setting clear expectations, documenting agreements, and consulting with professionals to ensure smooth transitions in financial and estate planning.' - Tyson Mavar

Harsco employees approaching retirement should view family loans with caution, ensuring they establish formal agreements and understand the potential tax and legal consequences, as proper planning can prevent unnecessary strain on both relationships and retirement assets.' - Tyson Mavar

In this article, we will discuss:

The pros and cons of personal loans from banks versus family and friends.
Key considerations for both lenders and borrowers when giving or receiving personal loans.
The legal and fiscal responsibilities involved in family loans, particularly for Harsco employees nearing retirement.

In times of economic distress, many people may require more financial assistance. Employees of large companies, including Harsco, with good credit scores, may consider conventional bank loans as a solution. However, they are also accompanied by certain disadvantages, such as high interest rates and other fees, including loan origination fees that can be more than 1% of the loan amount.

For those with poor credit, borrowing from family or friends is still a common practice. This type of loan is particularly attractive because it often has either no interest or lower interest rates than traditional banks. In a 2018 survey by Finder, it was revealed that almost $184 billion is borrowed every year from personal contacts, which shows that it is a popular means of financial support during the difficult periods.

The Size and Nature of the Personal Loan Market

More and more people especially the young people in the Harsco are preferring to get the loans from friends and family to avoid the consequences of getting into debt from other institutions. This trend shows a willingness to help loved ones despite having consumer and educational loans. However, this kind of niceness may adversely affect the financial situation of the lender.

Experts including Steve Trumble, co-founder of American Consumer Credit Counseling advise that such personal loans be treated as much business-like as possible. It is very important to define the expectations for the repayment of the funds at the beginning of the cooperation in order to avoid the circumstances when the financial situation of the company is unclear and the relations with the partner are not clear.

Lender Alert: Things to Consider When Giving Out a Personal Loan

It is wise to take some precautions when giving money to friends or family in order to protect good relationships. Some tips that can be given in order to avoid the conflicts are as follows:

Manage Your Expectations: Know that you may not even get the money back that you lent. If you do not view the loan as a gift, then you are bound to be disappointed at one point or the other.

Evaluating Loan Feasibility: In her book “Money Smart,” Mary C. Kelly, Ph.D., notes that personal loans are not as restrictive as bank loans to involve collateral and strict time for repayment, which results in relaxed repayment manners.

Creating a Lending Checklist: It is also reasonable to make a list of questions that the borrower should be able to answer in order to determine their repayment willingness and ability. This includes asking them about their past borrowing history, what they intend to do with the money, and how they plan to repay it.

Fiscal and Legal Implications

There are also a number of financial and legal responsibilities that are another part of family loans. The IRS has set certain standards for the giving of money and the current exclusion amount is $17,000. The lenders have to find out these limits in order to avoid paying taxes that they have not even expected.

It also means that one has to consider how a loan may affect relationships, for instance, with a spouse or a partner. It is crucial that the partner is involved in the lending decision in order to avoid the conflict of interest and to respect the financial decisions that are made.

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The Key to Successful Family Loans: Strategic Planning

Family loans are inherently risky to lead to disputes and disappointments but can be reduced through proper planning and dialogue. Important steps are to write down an agreement, to define the rules, and to keep the channels of communication open.

In summary

Family loans are a good alternative to banking but they require some thinking and management in order not to adversely affect relations or put the borrowers in financial difficulties. Such loans are a valuable form of financial support that does not entail the same level of commitment as formal lending products if they are used properly. The effects on estate planning are important when it comes to lending to family members especially for the employees who are close to or are in retirement. Attorneys advise that any significant family loan should be incorporated into one’s will and that formal loan agreements should be executed in order that the estate proceedings are clear. This is because failure to document such loans can lead to a lot of legal battles among the heirs and this may lead to a lot of time being spent in court (American Bar Association, July 2021).

With the help of our guide, Harsco employees will learn how to work with family loans and manage financial relationships with friends and family. Learn how to set expectations, accept a personal loan with the lowest risk possible, and create legally valid documents. Learn about the importance of planning and communication for successful transactions. Make informed decisions that protect your assets, staying up to date with the latest legal information, including IRS and gift tax regulations. Just as when going on a hike, it is important to be well prepared in order to have a safe and rewarding experience for the lender and the borrower.

Sources:

American Bar Association. 'Estate Planning and Family Loans: Risks and Considerations.' American Bar Association , July 2021, www.americanbar.org/estate-planning-family-loans .

Kelly, Mary C. Money Smart: Strategies for Financial Success . 2nd ed., Financial Intelligence Publishing, 2020.

Trumble, Steve. 'Managing Personal Loans Within Families: Best Practices.' American Consumer Credit Counseling , www.consumercredit.com/personal-loans . Accessed 31 Jan. 2025.

Finder. 'Survey: $184 Billion Borrowed Annually from Family and Friends.' Finder.com , 2018, www.finder.com/family-friend-loans-survey .

'Taxable Gifts and Loans: What You Need to Know About IRS Regulations.' IRS.gov , U.S. Department of the Treasury, 2023, www.irs.gov/taxable-gifts-and-loans .

How does the Harsco Pension Scheme ensure that investment strategies align with the financial goals of its members, and what measures are in place to assess the adequacy of these strategies over time? Given the complexities involved in managing a pension scheme, understanding the decision-making processes and the criteria for evaluating fund performance is crucial for members to make informed retirement choices.

Investment Strategy Alignment: The Harsco Pension Scheme ensures that its investment strategies align with members' financial goals by regularly reviewing its Statement of Investment Principles (SIP) and adjusting strategies based on quarterly performance monitoring. The Trustees use tools such as LCP Visualise to track investment returns and funding levels, ensuring the Scheme is on track for full funding by 2025. This review process helps guarantee that the investment strategies are adequately meeting long-term goals and adapting to market conditions(Harsco Pension Scheme_3…).

In what ways does the Harsco Pension Scheme engage with its investment managers to ensure transparency and stewardship in voting on significant shareholder resolutions? Exploring how Harsco collaborates with these managers can shed light on the efficacy of decision-making and the importance of governance in the scheme's investment practices.

Engagement with Investment Managers: The Harsco Pension Scheme engages closely with its investment managers, delegating stewardship activities like voting on shareholder resolutions. These managers, such as BlackRock, follow rigorous voting and engagement policies, which are reviewed regularly. The Trustees ensure transparency by monitoring managers’ ESG integration and voting behaviors and by addressing significant issues, such as modern slavery or climate risks(Harsco Pension Scheme_3…).

What are the specific retirement benefits available to employees under the Harsco Pension Scheme, and how can members customize their retirement strategies to fit their individual needs? This question addresses the diversity of retirement options and the potential for tailoring plans to meet unique financial situations.

Retirement Benefits Customization: The Harsco Pension Scheme offers a range of retirement options, including default and self-select investment options that reflect member demographics and retirement preferences. Members can customize their retirement strategies through diversified funds, ensuring their investments are aligned with individual needs. The default strategy has been reviewed to ensure appropriateness for the majority, with options for drawdown, lump-sum withdrawals, or annuity purchases(Harsco Pension Scheme_3…).

How does the Harsco Pension Scheme handle the changing demographics of its membership, especially in terms of investment risk and available retirement options? Understanding how the scheme adapts to demographic trends can help employees anticipate changes that may affect their retirement savings and strategies.

Adapting to Demographic Changes: The Trustees monitor demographic trends and adapt the Scheme’s investment strategies accordingly. For example, as the Scheme matures, the investment allocation moves towards lower-risk assets to reflect the changing membership profile. Regular reviews ensure the Scheme adapts to the evolving needs of its members, helping to reduce risk while maintaining adequate returns(Harsco Pension Scheme_3…).

What is the process for Harsco employees to access their pension statements, and how frequently are these updates provided to ensure that members stay informed about their retirement savings progress? Regular communication about contributions and growth can significantly impact an employee's comfort level when planning for retirement.

Pension Statement Access: Harsco employees can access their pension statements through regular updates provided by the Trustees, typically on a quarterly basis. These statements, including detailed reports of contributions, investment growth, and progress toward retirement goals, help members stay informed and make adjustments as necessary(Harsco Pension Scheme_3…).

How does Harsco incorporate Environmental, Social, and Governance (ESG) considerations into its investment philosophy, and what impact do these principles have on the pension schemeâ€™s performance? A deeper examination into these aspects may enhance employee understanding of socially responsible investing trends within their pension fund.

ESG Considerations: The Harsco Pension Scheme integrates Environmental, Social, and Governance (ESG) principles into its investment strategy, regularly assessing its managers’ ESG practices. These assessments include human rights, climate change, and CEO pay ratios, ensuring that investments are socially responsible and aligned with long-term sustainability goals(Harsco Pension Scheme_3…).

What are the implications of the current IRS limits on contributions to retirement plans for employees participating in the Harsco Pension Scheme in 2024? Recognizing how these financial regulations impact personal contributions and matching funds can empower employees to maximize their retirement funding strategies.

IRS Limits Impact: The current IRS limits on contributions to retirement plans, such as those applicable in 2024, directly impact Harsco employees by capping how much they can contribute tax-free. Understanding these limits helps employees plan their contributions to maximize employer matching and ensure they take full advantage of their retirement benefits(Harsco Pension Scheme_3…).

With regards to the ongoing performance evaluations, what benchmarks does the Harsco Pension Scheme utilize to measure the success of its investments, and how are these benchmarks selected? This insight can help employees understand the performance metrics that drive the long-term viability of their pension scheme.

Benchmarking Investments: The Harsco Pension Scheme uses various benchmarks to assess the performance of its investments. These benchmarks are selected based on expected risk and return profiles and are reviewed quarterly. Monitoring against these benchmarks ensures that the Scheme’s strategies remain aligned with long-term funding goals and adapt to changing market conditions(Harsco Pension Scheme_3…).

How can Harsco employees obtain more information on the specific investment options available within the pension scheme, including the associated risks and potential returns? Access to comprehensive investment literature is essential for employees to make well-informed decisions regarding their pension scheme participation.

Investment Options and Information: Harsco employees can obtain detailed information about their pension’s investment options, including the associated risks and potential returns, through regular reports from the Trustees and investment consultants. This transparency allows employees to make informed decisions about their pension participation(Harsco Pension Scheme_3…).

What is the preferred method for employees to contact Harsco to gain further clarification on their questions about the pension scheme, and what resources are available for them during the retirement process? Clear communication channels and support mechanisms are vital as employees navigate their retirement preparations. These questions are designed to provoke thought and discussion around the operations, benefits, and governance of the Harsco Pension Scheme while providing employees with a foundation for understanding their retirement options.

Communication Channels: Employees can contact the Trustees of the Harsco Pension Scheme for clarification on pension-related questions through established communication channels. Resources, including personalized financial advice and regular meetings with investment managers, are available to assist employees during the retirement planning process(Harsco Pension Scheme_3…).

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

Name of Pension Plan: Identify the name of the pension plan. Years of Service and Age Qualification: Determine the requirements for employees to qualify for the pension plan. Pension Formula: Understand how the pension is calculated. Company 401(k) Plan: Name of 401(k) Plan: Identify the name of the 401(k) plan. Qualification for 401(k) Plan: Determine who qualifies for participation in the 401(k) plan.

Harsco announced a significant restructuring plan in early 2023 aimed at streamlining its operations and reducing costs. This included a series of layoffs across various divisions. The company projected that these measures would improve operational efficiency and align with its strategic goals.

Harsco offers stock options and RSUs to its employees as part of its compensation package. The company's stock options are designated as SOs, while RSUs are referred to as RSUs. For the years 2022, 2023, and 2024, Harsco has made stock options and RSUs available to key employees, including executives and high-performance staff.

Harsco’s official website, the benefits section details various health benefits, including medical, dental, and vision coverage. They offer a range of plans including PPO and HDHP (High Deductible Health Plans) with HSA (Health Savings Accounts) options. They also provide wellness programs, mental health resources, and employee assistance programs. Company Reviews and Job Boards: Sites like Glassdoor and Indeed reveal employee reviews about Harsco’s health benefits. Many reviews mention the company’s competitive benefits package, including health insurance, dental, and vision plans. However, some employees noted that the benefits could be improved, particularly in terms of coverage and cost. Industry Reports: Industry reports and compensation studies indicate that Harsco’s health benefits are generally in line with industry standards. The company provides a range of healthcare options with a focus on comprehensive coverage and preventive care.