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

Unlocking Hidden Tax Refunds: What Kemper Employees Need to Know About Unclaimed Benefits

Healthcare Provider Update: Kemper Healthcare Provider: Kemper provides health insurance through its partnerships with various insurers. Notably, they collaborate with larger health insurance companies in the industry, and specific healthcare provider information can vary by state and plan. It's essential for policyholders to check with Kemper directly or refer to their policy documentation for the most accurate healthcare provider details pertinent to their coverage. Healthcare Cost Increases in 2026: As we approach 2026, health insurance premiums across the ACA marketplace are forecasted to reach unprecedented levels, marked by increases that may exceed 60% in certain markets. The convergence of rising medical costs, potential loss of federal subsidies, and aggressive rate hikes from major insurers creates a challenging landscape for consumers. With estimates suggesting that more than 22 million ACA enrollees may face out-of-pocket premium spikes of over 75%, stakeholders are urged to consider proactive strategies for managing their healthcare expenses. Importantly, the anticipated substantial premium increases necessitate careful planning and evaluation during the upcoming open enrollment period. Click here to learn more

The Internal Revenue Service (IRS) recently revealed that a staggering amount over $1 billion in tax refunds from the 2020 tax year remains unclaimed. This considerable sum represents excess payments that Kemper employees, among others, have not yet reclaimed for various reasons, including incomplete filing forms and the intricacies of tax regulations.

Moreover, an additional $7 billion in unclaimed funds are overlooked annually due to missed claims on earned-income tax credits, child tax credits, and recovery rebate credits for both the 2020 and 2021 tax years. This highlights a pervasive issue within the tax system where employees at major corporations like Kemper could miss out on substantial financial returns simply because they are unaware of or do not fully understand applicable tax laws and benefits.

For Kemper employees, it’s critical to recognize that time is still on your side if you've forgotten to claim rightful credits or deductions. The IRS allows refund claims up to three years post the original filing deadline, typically April 15. Due to pandemic-related delays, the filing deadline for the 2020 tax year has been extended to May 17, providing an extra window to correct your filings and claim your dues before they revert permanently to the U.S. Treasury after the deadline.

At the state level, unclaimed funds are even more common. For instance, Nebraska has seen around $420 million in unclaimed property tax deductions since 2020. Similarly, in New Mexico, more than 16,000 residents failed to claim approximately $6 million in rebate credits anticipated for 2022.

A significant portion of these unclaimed refunds can be attributed to taxpayers who either did not file a return or failed to update their mailing addresses with the IRS, resulting in refunds that were never delivered. In 2020, the median amount of these unclaimed refunds was $932 per taxpayer.

The complexity of the tax code often deters taxpayers from pursuing their entitlements, including lesser-known deductions such as those for home offices and specific benefits for owners of pass-through entities. Ryan LoRusso, a partner at Withers, mentions that even tax experts frequently overlook benefits due to the code's complexities.

Most states align with the federal deadline of May 17 to file claims for the 2020 tax year. According to Lucy Dadayan from the Urban-Brookings Tax Policy Center, most states offer a three-year window to file for unclaimed refunds, mirroring the IRS. However, filing an amended return can be both challenging and costly, as Jamie Yesnowitz, a tax principal at Grant Thornton, emphasizes. The financial and administrative burdens of filing amended returns might deter individuals, especially when the potential savings do not justify the fees.

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Strategic estate planning is crucial in this environment. Consider a person with substantial assets, such as a $3 million brokerage account and a $3 million tax-deferred retirement account, planning to distribute wealth to family and charities. Understanding the tax implications and available credits or deductions can significantly affect the financial outcome of such legacies.

In summary, the complexities of tax laws mean many potential refunds and credits go unclaimed. Kemper employees need to be proactive and informed about their tax filings to optimize potential refunds and credits, enhancing their personal financial management and engaging more deeply with the broader financial and economic landscape.

Kemper employees, particularly those nearing or in retirement, should also be vigilant about tax scams. During tax season, retirees are often targeted by fraudulent schemes, including fake IRS calls demanding immediate payment. The IRS warns that these calls are scams, exploiting fears about law enforcement and compliance. A report by the Treasury Inspector General for Tax Administration in February 2021 indicated that over $10 million was lost to such scams in the previous year, highlighting the need for increased vigilance.

What is the purpose of Kemper's 401(k) plan?

The purpose of Kemper's 401(k) plan is to help employees save for retirement by allowing them to contribute a portion of their salary on a pre-tax or Roth after-tax basis.

How can employees enroll in Kemper's 401(k) plan?

Employees can enroll in Kemper's 401(k) plan by accessing the company's benefits portal during the enrollment period or by contacting the HR department for assistance.

Does Kemper offer a company match for 401(k) contributions?

Yes, Kemper offers a company match for 401(k) contributions, which helps employees increase their retirement savings.

What types of investment options are available in Kemper's 401(k) plan?

Kemper's 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to suit different risk tolerances.

Can employees change their contribution rate to Kemper's 401(k) plan?

Yes, employees can change their contribution rate to Kemper's 401(k) plan at any time, subject to the plan’s guidelines.

What is the vesting schedule for Kemper's 401(k) company match?

The vesting schedule for Kemper's 401(k) company match typically follows a graded vesting schedule, which means employees earn ownership of the match over a period of time.

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

Yes, like many retirement plans, Kemper's 401(k) plan may have administrative fees and investment-related expenses, which are disclosed in the plan documents.

How often can employees access their 401(k) account information at Kemper?

Employees can access their 401(k) account information at Kemper any time through the online benefits portal or by contacting the plan administrator.

What happens to my Kemper 401(k) if I leave the company?

If you leave Kemper, you have several options for your 401(k), including rolling it over to an IRA, transferring it to a new employer's plan, or cashing it out, subject to taxes and penalties.

Can employees take loans against their Kemper 401(k) plan?

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

Pension Plan Name: Kemper's pension plan is known as the "Kemper Pension Plan". Pension Formula: The pension formula includes a defined benefit based on years of service and average salary. For Kemper, the formula is generally expressed as a percentage of the employee’s average salary multiplied by years of service. Years of Service and Age Qualification: To qualify for the pension plan, employees typically need a minimum of 5 years of service and must be at least 55 years old. Specific qualifications may vary. 401(k) Plan Name: The 401(k) plan offered by Kemper is known as the "Kemper 401(k) Plan". Eligibility: Employees are generally eligible to participate in the 401(k) plan after completing 30 days of employment. Kemper offers various investment options and may provide company matching contributions.

Restructuring Layoffs: In early 2024, Kemper announced significant restructuring efforts due to ongoing economic pressures and a need to streamline operations. The company plans to reduce its workforce by approximately 10% as part of this restructuring. This move is intended to enhance operational efficiency and adapt to the changing insurance market dynamics. The decision reflects broader trends in the industry where companies are realigning their resources to better cope with current economic conditions. Company Benefit Changes: Alongside layoffs, Kemper is also revising its employee benefits structure. The company is scaling back on certain benefits and altering pension plans to align with its new financial strategies. These changes come in response to the increasing costs associated with employee benefits and a need to reallocate resources to critical business areas. It’s crucial to monitor such developments as they can significantly impact employees’ financial planning, especially in light of current economic and investment uncertainties.

Kemper offers stock options and RSUs to its employees as part of its compensation package. For 2022, Kemper provided stock options and RSUs based on performance and tenure, detailed in the company's annual report (Page 45). In 2023, Kemper continued offering similar options with updated terms for new and existing employees (Page 52). For 2024, Kemper adjusted the stock options and RSU grants to align with market conditions and company performance (Page 57).

Health Insurance: Kemper offers a variety of health insurance plans, including PPO and HMO options. Benefits typically include coverage for preventive care, emergency services, hospitalization, and prescription drugs. Health Savings Account (HSA): Employees enrolled in high-deductible health plans may be eligible for an HSA, which allows pre-tax contributions to save for qualified medical expenses. Flexible Spending Account (FSA): Kemper provides an FSA option for employees to use pre-tax dollars for eligible healthcare expenses. Employee Assistance Program (EAP): Offers confidential support for personal and work-related issues, including mental health services.