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Healthcare Provider Update: Healthcare Provider for Moog Moog Inc. typically provides health benefits through various healthcare providers, including large national insurers such as Aetna, UnitedHealthcare, and Blue Cross Blue Shield. The specific provider may vary by location and plan options available to employees. Healthcare Cost Increases in 2026 for Moog Employees In 2026, Moog employees are likely to face significantly higher healthcare costs, primarily driven by anticipated premium hikes in the ACA marketplace, which could reach up to 66% in some states. As employers like Moog adjust their benefit structures in response to rising medical costs, employees may see changes in deductibles and out-of-pocket expenses. With nearly 51% of large employers expected to shift more costs onto workers, understanding these changes and preparing for increased healthcare expenses will be essential for Moog employees navigating their health coverage options. Click here to learn more
It is crucial for Moog employees to actively prepare for the unexpected expenses that come with long-term care in order to guarantee their financial future,' says Patrick Ray, from The Retirement Group at Wealth Enhancement Group.
Managing long-term care is not merely a question of awareness: it means action,' says Michael Corgiat of The Retirement Group, a division of Wealth Enhancement Group.
In this article we will discuss:
Financial Planning for Long-Term Care: In this article, we will look at the costs and ways of paying for long-term care, and why it is a problem for Moog employees and how strategies like insurance and savings can help.
Insurance Options and Benefits: In this paper, the different types of insurance plans provided to employees are evaluated, including the traditional and hybrid plans, and the employer-provided plans, and their implications for the future financial situation.
Family and Personal Impacts: In this paper, the emotional and financial impacts on families, the different ways of handling potential long-term care situations, and the importance of planning for these scenarios are discussed. As a Moog employee nearing retirement, long-term care must be addressed. The government estimates that 70 percent of older adults will need some form of long-term help. Nevertheless, a Kaiser Family Foundation survey reports that many have not planned for this.
The Cost of Long-Term Care
This is important for the employees of Moog to know the financial consequences of long-term care. The Genworth Cost of Care survey reveals that the cost of a year in a private room nursing home is more than $100,000 and home health aides are more than $60,000 a year. Since Medicare does not pay for these expenses, alternatives like personal savings, hybrid insurance policies, annuities with long-term care features, traditional insurance or Medicaid (after the assets are exhausted) have to be considered.
Family Impact: The effects of unprepared long-term care can be financially and emotionally devastating to family stability. This paper provides practical suggestions for Moog employees on how to manage these possible costs.
Conventional Insurance for Long-Term Care: For the workforce of Moog, long-term care insurance can be obtained only when one is fit, applies early and can afford to pay the premiums. However, only a small percentage of those who are eligible take this insurance.
The Price of Long-Term Health Insurance: Purchasing long-term care insurance at forty or early fifty can lead to lower premiums. With age, not only do the premiums rise but the chance of being turned down for coverage also rises.
Ways to Reduce Costs: According to the findings of the study, Moog employees may have to turn to purchasing insurance at a young age, buying policies that have the joint benefit for couples or choosing a longer waiting period to buy the policy at a lower price. Making annual premium payments also saves on costs.
Benefits for Moog Employees: Some employers may provide long-term care insurance as a form of benefit and such insurance is portable upon leaving the employment.
Hybrid Insurance Policies: Long-term care insurance has become popular and there is a shift toward hybrid policies that combine life insurance with long-term care benefits. These are accessible but are generally more expensive than standalone policies.
Long-Term Care Rider Annuities: A type of annuity that includes a long-term care rider may be more suitable for some retirees in that they make payments regardless of long-term care needs and tend to have less stringent health requirements.
Independent Insurance: High net worth retirees may decide to self-insure and therefore need to have a sufficiently large balance sheet to be able to pay for the potential long-term care expenses. It is important for Moog employees to consider the tax consequences of using their retirement funds for these expenses.
Health Savings Accounts (HSAs): HSAs are a form of tax-preferred savings vehicle for long-term care expenses that can be used by Moog employees with HDHPs. These accounts are funded with pre-tax dollars, and can be used to save for medical expenses without incurring taxes on growth or distributions.
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- Corporate Employees: 8 Factors When Choosing a Mutual Fund
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- Medicare Open Enrollment for Corporate Employees: Cost Changes in 2024!
- Stages of Retirement for Corporate Employees
- 7 Things to Consider Before Leaving Your Company
- How Are Workers Impacted by Inflation & Rising Interest Rates?
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- Internal Revenue Code Section 409A (Governing Nonqualified Deferred Compensation Plans)
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- Worst Month of Layoffs In Over a Year!
- Corporate Employees: 8 Factors When Choosing a Mutual Fund
- Use of Escrow Accounts: Divorce
- Medicare Open Enrollment for Corporate Employees: Cost Changes in 2024!
- Stages of Retirement for Corporate Employees
- 7 Things to Consider Before Leaving Your Company
- How Are Workers Impacted by Inflation & Rising Interest Rates?
- Lump-Sum vs Annuity and Rising Interest Rates
- Internal Revenue Code Section 409A (Governing Nonqualified Deferred Compensation Plans)
- Corporate Employees: Do NOT Believe These 6 Retirement Myths!
- 401K, Social Security, Pension – How to Maximize Your Options
- Have You Looked at Your 401(k) Plan Recently?
- 11 Questions You Should Ask Yourself When Planning for Retirement
- Worst Month of Layoffs In Over a Year!
Family Guidance: As the example of Nancy Yung and her family shows, family plays the most significant role in long-term care and thus retirees will often turn to their family for care.
In Summary:
Long-term care planning is basically laying down a safety net for retirement, which is crucial in addressing rising housing and food costs. It is the responsibility of Moog employees to meet with their financial advisors to identify all the possibilities of protecting their future. This planning is not only about risk avoidance it is also about assisting in a steady and protected path to retirement.
Sources:
- Shah, Samir. 'Genworth Releases Cost of Care Survey Results for 2023: Twenty Years of Tracking Long-Term Care Costs.' InsuranceNewsNet, InsuranceNewsNet, Mar. 12, 2024, www.insurancenewsnet.com .
- Stulick, Amy. 'Nursing Homes See Lowest Cost Increase Among Long-Term Care Settings in 2021.' Skilled Nursing News, Skilled Nursing News, Feb. 16, 2022, www.skillednursingnews.com .
- Noceti, George M. 'Checklist: Is It Time for Assisted Living?' Morgan Stanley, Horsesmouth LLC, 2018, www.morganstanley.com/theintegragroup .
- Reimer, Jennifer. 'Support for an Aging Parent or Relative.' Advisor.morganstanley.com, Morgan Stanley, 2018, advisor.morganstanley.com.
- Haendiges, Brian. 'The Cost of Long-Term Health Insurance.' Genworth Financial, Genworth Financial, 2024, www.genworth.com .
How does the transition from the Moog Pension Plan to the RSP(+) Program affect my retirement savings strategy, and what steps should I take to optimize my contributions in light of the changes Moog has implemented to its retirement programs?
Transition from Pension Plan to RSP(+): The transition from the Moog Pension Plan to the RSP(+) Program offers greater flexibility and portability, as the RSP(+) includes both a retirement contribution and a matching contribution. To optimize your contributions, aim for the maximum percentage of your eligible compensation to take full advantage of Moog's increasing match, which phases up to 10% by October 2021. Evaluate your long-term goals and consult a financial advisor for personalized advice.
In what scenarios would remaining in the Current Retirement Program offered by Moog provide a greater benefit compared to the new RSP(+) program, and what factors should I consider when assessing my long-term retirement goals in relation to these two options?
Benefits of Staying in the Current Program: Remaining in the Current Retirement Program may provide greater benefits for long-term employees close to retirement. The Moog Pension Plan offers a defined benefit that provides predictable, stable income, which can be beneficial if you're near retirement age or value a guaranteed income. Weigh the security of the pension against the flexibility and growth potential of the RSP(+) based on your retirement goals.
With the Moog Pension Plan being "frozen" as of December 31, 2019, how does this affect my accrued benefits, and what are the implications for my retirement planning as I approach retirement age and consider other income sources?
Frozen Moog Pension Plan Impact: Since the Moog Pension Plan was frozen on December 31, 2019, your accrued benefits will not grow, but you retain the value you’ve earned. This fixed benefit, payable as an annuity, can still play a role in your overall retirement strategy. As you approach retirement, plan for other income sources, like Social Security or RSP withdrawals, to supplement your frozen pension benefit.
What are the specific vesting timelines for the different retirement options available through Moog, and how do these timelines impact my ability to access benefits if I decide to leave the company before reaching retirement age?
Vesting Timelines: The Moog Pension Plan vests after five years of service, while the RSP(+) retirement contribution vests after three years. The RSP(+) matching contributions are immediately vested for current employees, but newly hired employees face a three-year vesting schedule. If you leave Moog before vesting, you risk losing unvested contributions, so factor in your tenure when planning your exit.
Can you explain the various payment options available when I decide to withdraw from the Moog Pension Plan or RSP(+) account, specifically discussing the benefits and drawbacks of lump-sum distributions versus annuity options offered by Moog?
Payment Options: For both the Pension Plan and RSP(+) Program, Moog offers various withdrawal options. Pension benefits are generally paid as a monthly annuity, whereas the RSP(+) offers lump sum, installments, or partial withdrawals. A lump sum offers flexibility but shifts the investment risk to you, while an annuity provides stable, lifelong payments but limits liquidity.
What investment decisions do employees have the power to make regarding their contributions to the RSP and RSP(+) at Moog, and how might these decisions impact the overall performance of my individual retirement accounts as I prepare for retirement?
Investment Decisions in the RSP(+): Employees control investment decisions within the RSP(+) Program. Moog’s initial contributions are invested in Moog Class B Stock Fund-Restricted, but you can reallocate to other funds. Your choices significantly impact the growth of your retirement savings, so regularly review your investment strategy to ensure it aligns with your retirement timeline and risk tolerance.
How does Moog ensure the security of my retirement benefits under the Pension Plan, and what protections are in place in the event of financial difficulties faced by the company, including the role of the Pension Benefit Guaranty Corporation (PBGC)?
Security of Retirement Benefits: Moog’s pension benefits are backed by the Pension Benefit Guaranty Corporation (PBGC), providing a safety net in case of company financial difficulties. However, the RSP(+) accounts are not PBGC-insured, and the value depends on investment performance. Your pension is protected, but careful management of your RSP investments is crucial.
In the event of my death before receiving retirement benefits, what provisions does Moog have in place for disbursing my accrued benefits to my beneficiaries, and how does marital status affect these benefits under the Moog Pension Plan and RSP?
Death Benefits: If you pass away before receiving your Pension Plan benefits and are married, your spouse receives a monthly lifetime benefit. For the RSP(+) Program, your designated beneficiary will receive your account balance as a lump sum. Spousal consent is required if you wish to name a non-spousal beneficiary. Marital status directly impacts the distribution of your retirement benefits.
How can I maximize the company match contributions offered in the RSP and RSP(+) plans, and what specific contribution levels should I aim for to ensure that I am fully leveraging the benefits provided by Moog?
Maximizing Company Match: To maximize Moog’s matching contributions, contribute at least 6% of your eligible compensation initially, increasing to 8% in 2020 and 10% in 2021 to receive the full match. By reaching these thresholds, you leverage the full benefits of Moog's matching, boosting your retirement savings potential.
If I have further questions or need more information on my retirement options, how can I contact Moog's HR Employee Support team for assistance, and what resources are available to help me navigate the transition between retirement plans effectively? These questions are designed to encourage deeper exploration of individual retirement situations and the specific policies within the company’s retirement programs.
Contacting Moog HR for Further Information: For more questions or additional guidance, you can contact Moog's HR Employee Support team via email at employeesupport@moog.com or by calling 844-367-5787. Empower Retirement’s Call Center is also available for technical questions regarding the RSP(+) Program. These resources ensure you have the support needed during your retirement transition(Moog_Choice_Guide_Retir…).
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