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

Upcoming Social Security Changes: What Avery Dennison Employees Should Know for January 2025

Healthcare Provider Update: Healthcare Provider for Avery Dennison Avery Dennison has partnered with various healthcare providers for employee health benefits; however, specific provider affiliations may vary by region and specific employee health plans. To obtain the most accurate and relevant information regarding Avery Dennison's current healthcare provider, it is advisable for employees to consult their Human Resources department or employee benefits documentation. Potential Healthcare Cost Increases for Avery Dennison in 2026 In 2026, healthcare costs for Avery Dennison employees utilizing Affordable Care Act (ACA) marketplace plans may soar as premium hikes are projected to exceed 60% in some states. This stark increase is driven by the potential expiration of enhanced federal premium subsidies and rising medical costs. As many as 92% of marketplace enrollees could face an average out-of-pocket premium increase of over 75%. Employees should proactively assess their health plan options now to mitigate financial impacts and explore available employer-sponsored alternatives. Click here to learn more

Social Security remains a pivotal topic in modern political discourse, with imminent changes poised to affect millions, including Avery Dennison employees. As the program contemplates potential reforms, understanding the nuances of these upcoming adjustments is crucial. Post-2025, several significant alterations to Social Security are expected, impacting financial planning and stability.

Anticipating the Cost of Living Adjustment (COLA) for Avery Dennison Employees

Initially, an annual Cost of Living Adjustment (COLA) is anticipated. The Social Security Administration (SSA) calculates COLA based on the Consumer Price Index (CPI) increases during the third quarter of each year. While the definitive COLA figures for 2025 won't be published until October 2024, current forecasts by the Senior Citizens League suggest a 2.6% increase. This moderate rise, still above the Federal Reserve's long-term inflation target of 2%, could enhance the purchasing power of Social Security benefits, offering Avery Dennison employees some solace after the higher inflation rates that began in 2021.

Full Retirement Age Changes Impacting Avery Dennison Employees

Another significant shift is the gradual increase in the full retirement age. Established by a Congressional Act in 1983, the full retirement age is progressively extending to 67. For those born in 1954, the full retirement age was 66. However, this threshold increases by two months each year for individuals born after 1954. By 2025, those born in 1958 will reach their full retirement age at 66 and 8 months, while those born at the start of 1959 will reach 66 and 10 months. Avery Dennison employees need to be aware that this measure directly impacts the calculation of monthly benefits, whether claimed at full retirement age or deferred until age 70.

Social Security Contribution Adjustments for Avery Dennison Employees

Additionally, changes to Social Security contributions are on the agenda. Typically, individuals contribute 6.2% of their wages to Social Security, matched by their employer for a total of 12.4%. However, there's a cap on taxable income, adjusted annually based on wage inflation. For 2024, this cap was set at $168,600, with any income above this limit exempt from Social Security taxes. Projections for the coming year, aligned with COLA adjustments, suggest a slight increase in this cap due to lower inflation rates, potentially leading to higher tax burdens for high-income earners at Avery Dennison.

Strategic Planning for Avery Dennison Employees Nearing Retirement

While these changes predominantly impact those nearing or already at retirement age, they are also relevant for active Avery Dennison employees, affecting their future benefits and tax liabilities. Often, many are not fully aware of potential enhancements to their Social Security income. For instance, certain strategies could significantly increase annual retirement income. This opportunity highlights the importance of informed planning and engaging with available resources to effectively maximize Social Security benefits.

Featured Video

Articles you may find interesting:

Staying Informed on Social Security Adjustments

As the Social Security landscape evolves each year, staying informed and proactive in analyzing these changes is vital to optimize financial planning. The adjustments slated for 2025 underscore the dynamics of this essential program and the need for meticulous preparation to ensure a stable and comfortable retirement for Avery Dennison employees.

Income Limits and Working While Receiving Social Security Benefits

In addition to the anticipated adjustments, beneficiaries should be aware of modifications to Social Security's income limits. For those continuing to work while receiving benefits before reaching full retirement age, the earnings test limit is expected to increase in 2025. This adjustment allows Avery Dennison employees to earn more through their work without losing Social Security benefits, offering greater flexibility and financial comfort during the transition to full retirement. According to the 2024 Social Security Administration Fact Sheet, this adaptation aims to accommodate economic changes and support retirees' engagement in the workforce.

Observing the forthcoming Social Security changes for 2025 is akin to preparing for a seasonal transition in gardening. Just as a gardener anticipates the first frost and modifies their planting schedule, Avery Dennison employees nearing retirement need to adjust their financial plans. The forecasted cost of living adjustment (COLA) resembles the slow release of essential nutrients needed for plants' survival amid temperature fluctuations, thus providing necessary aid to retirees' budgets. Simultaneously, the gradual increase in full retirement age reflects the practice of planting perennials, which require time to reach their full bloom. Lastly, the adjustment of the tax ceiling is similar to pruning—ensuring one does not remove too much from their earned income, thus promoting better financial health upon retirement. Just as gardeners prepare their tools and knowledge for the upcoming season, it's crucial for Avery Dennison employees gearing up for retirement to equip themselves with information to optimize their benefits.

How does the transition of the Avery Dennison U.S. Pension Plan to a group annuity contract affect current employees who are nearing retirement, and what steps should they consider taking during this transition to ensure their benefits are secure from Avery Dennison?

Current Employees Nearing Retirement: The transition to a group annuity contract should not affect the accrued benefits of current employees nearing retirement. The terms of the annuity payments will match those provided by the previous pension plan. Employees should ensure their personal information is updated and consult with the Avery Dennison Retirement Center to understand the timing of their benefits commencement during the transition period.

In what ways does Avery Dennison support employees who are considering their options for retirement benefits, particularly those who may not have previously explored their pension plan details prior to the transition to an insurer?

Support for Employees Exploring Retirement Options: Avery Dennison assists employees by providing detailed information through their retirement center and online resources. Employees are encouraged to review the changes and implications of the annuity transition and contact the retirement center for personalized advice, particularly if they have not previously explored their pension plan details.

Can you elaborate on the implications of the group annuity contract for employees who have recently retired from Avery Dennison, particularly concerning how their benefits are administered compared to the previous pension plan structure?

Recently Retired Employees: For those who have recently retired, the administration of their benefits will shift from Avery Dennison to the selected insurer but this should not change the amount, timing, or form of the benefits they receive. This ensures continuity in the administration of benefits without affecting the retirees directly.

For employees currently receiving benefits through Avery Dennison, how will the transition to the selected insurer impact the continuity and reliability of their monthly payments, and what measures are in place to safeguard these payments?

Continuity and Reliability of Payments: The transition involves the selection of a highly rated insurer, ensuring the reliability of ongoing monthly payments. Avery Dennison has put measures in place, including a thorough selection process involving an independent fiduciary, to safeguard these payments.

What are the specific protections offered to beneficiaries under the group annuity contracts once the Pension Plan transitions away from Avery Dennison's administration, and how do these protections differ from those provided under the Pension Benefit Guaranty Corporation (PBGC)?

Protections for Beneficiaries: After the transition, the state guaranty associations, rather than the Pension Benefit Guaranty Corporation (PBGC), will offer protection to beneficiaries. This shift means that while the federal insurance via PBGC will no longer apply, state-level insurance, which has its own limits and guarantees, will take over.

In light of the transition to the group annuity, how should employees at Avery Dennison go about updating their personal information, such as addresses or banking details, and what timelines should they be aware of during this process?

Updating Personal Information: Employees should update their personal details such as addresses or banking information through the Avery Dennison Retirement Center by specific deadlines during the transition period. Post-transition, such updates should be made directly with the new insurer.

How does Avery Dennison ensure that the financial health of the selected insurer for the group annuity contract is sufficient to meet the obligations to its retirees, and what standards are applied during the selection process?

Financial Health of the Insurer: Avery Dennison ensures the financial adequacy of the selected insurer through a rigorous selection process managed by an independent fiduciary. This includes evaluations of the insurer's financial stability, claims-paying ability, and overall business practices.

After the transition to an insurer is complete, what should employees of Avery Dennison do if they have questions regarding their retirement benefits, and how will communication be handled moving forward to ensure clarity and support?

Post-Transition Communication: After the transition, employees should direct their questions regarding retirement benefits to the selected insurer's service center. Avery Dennison will provide contact details and further instructions in a welcome kit following the transition.

How does the U.S. tax legislation impacts the retirement benefits of Avery Dennison employees who are transitioning to a group annuity, particularly concerning taxation of these annuity payments during retirement?

Impact of U.S. Tax Legislation: The transition to a group annuity may affect the taxation of retirement benefits. Employees are advised to consult with tax professionals to understand the specific impacts based on their personal circumstances.

For employees seeking more information regarding the details of their retirement benefits and the implications of the insurer transition, how can they contact Avery Dennison to discuss their specific circumstances and gain clarity on any outstanding questions?

Accessing Further Information: Employees seeking more details about their retirement benefits post-transition can contact Avery Dennison through their designated Retirement Center or access information via the company's dedicated benefits website. This is crucial for obtaining clarity on specific circumstances and outstanding queries regarding the transition.

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

Avery Dennison announced a major restructuring plan that includes layoffs affecting approximately 10% of its global workforce. The company is also revising its pension and 401(k) plans to better align with current economic conditions.

Additional Articles

Check Out Articles for Avery Dennison employees

For more information you can reach the plan administrator for Avery Dennison at 207 Goode Ave Glendale, CA 91203; or by calling them at +1 626-304-2000.