What EnerSys Employees Need to Consider Before Making the Leap to Retire Abroad

Healthcare Provider Update: Healthcare Provider for EnerSys: EnerSys, a global leader in stored energy solutions, typically utilizes various healthcare providers for its employee benefits. However, the specific healthcare provider used by EnerSys can vary by location and is often tailored to meet the needs of its workforce and regional healthcare systems. For the most accurate and updated information, it's advisable for employees or interested parties to refer to EnerSys' human resources or benefits department. Potential Healthcare Cost Increases in 2026: As healthcare costs rise significantly, the landscape for employers and employees is expected to shift dramatically in 2026. Various insurers are predicting increases in premiums often exceeding 20%, driven by factors such as higher medical costs, potential expiration of federal premium subsidies, and significant rate hikes from the largest insurers. With market conditions suggesting that over 22 million individuals may face out-of-pocket premium hikes exceeding 75%, the financial strain on many families and businesses is imminent, necessitating strategic planning among employers to mitigate these impacts. Click here to learn more

For example, EnerSys employees planning on moving overseas need to have a clear plan of action to overcome the challenges of acquiring residency and citizenship in another country,' according to Brent Wolf from The Retirement Group at Wealth Enhancement Group.

Kevin Landis of The Retirement Group, a division of Wealth Enhancement Group, explains why detailed planning is crucial for EnerSys employees who intend to retire abroad. However,

In this article we will discuss:

1. The complexity of obtaining residency or citizenship abroad: Discussing the legal, financial, and cultural issues that are involved in moving overseas for EnerSys employees.

2. The necessity of professional advice and planning: Emphasizing the importance of thorough preparation and professional advice to ensure a smooth transition to retiring abroad.

3. Tax advantages and financial planning for retirees: Explaining the possible tax advantages that are available through international treaties and the strategic financial planning that needs to be done for the retirement savings of EnerSys employees.

Simply for political, economic, and social reasons, many EnerSys employees are looking to secure citizenship or residency in other countries if the United States is not as attractive as it once was. But, getting residency in another country and, perhaps, citizenship is not as simple as just buying a plane ticket and setting an itinerary.

This is because there are many processes that may take a few years to accomplish at times. The more people who are considering these options, the more difficult these choices become. It is therefore crucial to identify the legal, financial, and cultural implications that arise in order to ensure a smooth transition to a new home overseas before embarking on this journey.

Without a proper plan and some professional advice, it can be quite a challenge to switch gears and retire during your tenure at EnerSys.

The impact of potential tax advantages when retiring abroad will definitely affect your financial position. Many countries, including the United States, have tax treaties that prevent income from being taxed twice. For instance, pensioners are attracted to Portugal by the Non-Habitual Resident (NHR) regime that offers special tax concessions for up to 10 years.

You can enhance your retirement benefits by taking advantage of these perks and seeking the advice of a tax specialist. The IRS notes that because these treaties can be very different it is important to research and seek the advice of a professional (IRS, 2023). These advantages must be used by EnerSys employees to enhance their retirement.

Expatriating and retiring is a process of planning a long and beautiful road trip. Just as you would not travel without a map, a well-maintained car, and knowledge of your location, EnerSys employees who are retiring abroad need to plan carefully.

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Step by step, you will be guided on how to make your transition to your new home easier, from explaining cultural differences and tax benefits to helping you understand the legal and financial environment. Just as a road trip opens new views and experiences, retirement abroad presents a world of possibilities for a happy and comfortable retirement.

Sources:

1. The Warren Street Wealth Advisors Team. 'EnerSys and Large Company Employees.' Warren Street Wealth Advisors, 3 Feb. 2025, Accessed from warrenstreetwealth.com.

2. 'US Taxes for Americans Retiring Abroad in 2025.' MyExpatTaxes, 20 Nov. 2024, Accessed 3 Feb. 2025 from myexpattaxes.com.

3. Toms, Mary, CPA, MBA, MS. 'US Tax Implications of Retiring Abroad: What You Need to Know.' PBMares, 10 Dec. 2024, Accessed 3 Feb. 2025 from pbmares.com.

4. 'Financial Planning for US Expatriates.' The Expat Financial, Accessed 3 Feb. 2025 from expatfinancial.com.

5. 'Retiring Overseas: What You Need to Know About Your US Taxes and Financial Planning.' Expat CPA, Accessed 3 Feb. 2025 from expatcpa.com.

   What type of retirement savings plan does EnerSys offer to its employees?

   EnerSys offers a 401(k) retirement savings plan to its employees.

   Does EnerSys provide a company match for contributions made to the 401(k) plan?

   Yes, EnerSys provides a company match for employee contributions to the 401(k) plan, subject to certain limits.

   How can EnerSys employees enroll in the 401(k) plan?

   EnerSys employees can enroll in the 401(k) plan by completing the enrollment process through the company's benefits portal.

   What is the eligibility requirement for EnerSys employees to participate in the 401(k) plan?

   EnerSys employees are eligible to participate in the 401(k) plan after completing a specified period of service, typically outlined in the employee handbook.

   Can EnerSys employees change their contribution amounts to the 401(k) plan?

   Yes, EnerSys employees can change their contribution amounts to the 401(k) plan at any time during the year.

   What investment options are available in the EnerSys 401(k) plan?

   The EnerSys 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.

   Does EnerSys allow for loans against the 401(k) plan?

   Yes, EnerSys allows employees to take loans against their 401(k) plan balances, subject to specific terms and conditions.

   What happens to the 401(k) plan if an EnerSys employee leaves the company?

   If an EnerSys 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 EnerSys plan if allowed.

   Are there any fees associated with the EnerSys 401(k) plan?

   Yes, there may be administrative and investment fees associated with the EnerSys 401(k) plan, which are disclosed in the plan documents.

   How often can EnerSys employees review their 401(k) account statements?

   EnerSys employees can review their 401(k) account statements quarterly, and they may also have access to their accounts online for real-time updates.

   With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
   For EnerSys, the company provides a 401(k) plan for its employees with a company match. According to reports from employee reviews, EnerSys offers a matching contribution up to 6%. Specifically, the first 4% is matched at 100%, while the next 2% is matched at 50%​ (Day Pitney). This makes it possible for employees to benefit from a total employer contribution of up to 6% of their salary, depending on their personal contribution levels. The EnerSys 401(k) plan is available to all full-time employees, and as per the company's policies, the matching starts after a certain period of employment, typically 90 days​ (Day Pitney). EnerSys also offers a Defined Benefit Pension Plan, though details on the specific name of the plan and the precise formula used were not immediately accessible. However, it is typically calculated based on factors such as years of service and final average pay. Employees are vested after completing a specified period of service, which is typically around five years
   Restructuring and Layoffs: In 2023, EnerSys announced a significant restructuring plan aimed at optimizing its global operations. This restructuring led to layoffs affecting several positions across its manufacturing and administrative sectors. The move was part of a broader strategy to streamline operations and reduce costs amid a challenging economic environment. It is crucial to monitor such developments due to the impact of restructuring on employee security and the potential implications for the company’s operational efficiency. Given the current economic climate and investment trends, understanding these changes is essential for stakeholders to navigate the potential risks and opportunities effectively.
   EnerSys Stock Options (SO): EnerSys offers stock options (SO) to selected employees based on their roles and performance. The options typically vest over a period of time, ensuring that employees stay with EnerSys for an extended period. EnerSys Restricted Stock Units (RSU): EnerSys grants Restricted Stock Units (RSU) to senior executives and key employees. These RSUs are generally subject to performance and time-based vesting conditions.
   Health Plan Options: EnerSys offers its employees competitive health insurance plans, including options through Blue Cross Blue Shield (BCBS). Employees can choose between a High Deductible Plan (HDP) and a Preferred Provider Organization (PPO) plan​ (Enersys)​ (Enersys Investor). These options are designed to cater to different needs, with the HDP being suitable for employees who prefer lower premiums and higher deductibles, while the PPO offers more flexibility in choosing healthcare providers. Health Savings Account (HSA): Employees enrolled in the HDP have access to a Health Savings Account (HSA), allowing them to set aside pre-tax dollars to cover medical expenses. This is a key feature that supports employees in managing out-of-pocket costs​ (Enersys). Wellness and Preventive Care: EnerSys promotes preventive care through its health plans by offering annual physicals, screenings, and immunizations at no additional cost to employees​ (Enersys). Preventive care is a major focus, aiming to reduce long-term healthcare costs and improve employee well-being. Employee Assistance Program (EAP): EnerSys provides an Employee Assistance Program (EAP) for mental health support. This program offers confidential counseling and resources for employees dealing with personal or professional challenges. The EAP is part of EnerSys' broader commitment to employee wellness​ (Enersys Investor). Recent Employee Healthcare News: In response to rising healthcare costs, EnerSys has maintained a commitment to keeping employee contributions low while expanding access to essential services. They have continued enhancing their healthcare plans by offering comprehensive telehealth services, reflecting industry trends aimed at reducing in-person visits and supporting remote healthcare needs​