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Upcoming Social Security Changes: What Granite Construction Employees Should Know for January 2025

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Social Security remains a pivotal topic in modern political discourse, with imminent changes poised to affect millions, including Granite Construction 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 Granite Construction 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 Granite Construction employees some solace after the higher inflation rates that began in 2021.

Full Retirement Age Changes Impacting Granite Construction 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. Granite Construction 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 Granite Construction 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 Granite Construction.

Strategic Planning for Granite Construction Employees Nearing Retirement

While these changes predominantly impact those nearing or already at retirement age, they are also relevant for active Granite Construction 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.

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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 Granite Construction 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 Granite Construction 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, Granite Construction 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 Granite Construction employees gearing up for retirement to equip themselves with information to optimize their benefits.

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

Granite Construction offers a 401(k) retirement savings plan to help employees save for their future.

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

Granite Construction employees can enroll in the 401(k) plan through the company's HR portal or by contacting the HR department for assistance.

Does Granite Construction match employee contributions to the 401(k) plan?

Yes, Granite Construction provides a matching contribution to employee 401(k) accounts, subject to certain limits.

What is the maximum contribution limit for the Granite Construction 401(k) plan?

The maximum contribution limit for the Granite Construction 401(k) plan is in line with IRS regulations, which can change annually. Employees should check the latest limits for the current year.

Can Granite Construction employees take loans against their 401(k) savings?

Yes, Granite Construction allows employees to take loans against their 401(k) savings, subject to the plan's terms and conditions.

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

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

How often can Granite Construction employees change their 401(k) contribution amounts?

Granite Construction employees can change their 401(k) contribution amounts at any time, typically during open enrollment or through the HR portal.

Is there a vesting schedule for Granite Construction's 401(k) matching contributions?

Yes, Granite Construction has a vesting schedule for its matching contributions, which means employees must work for the company for a certain period before they fully own those contributions.

What happens to Granite Construction employees' 401(k) accounts if they leave the company?

If Granite Construction employees leave the company, they can choose to roll over their 401(k) funds to another retirement account, cash out, or leave the funds in the Granite Construction plan, subject to plan rules.

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

Yes, there may be administrative and investment fees associated with the Granite Construction 401(k) plan. Employees should review the plan documents for specific details.

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

Granite Construction provides a comprehensive retirement benefits package, which includes the Granite Construction Profit Sharing and 401(k) Plan. This plan is a defined contribution plan, where employees can voluntarily contribute a portion of their pre-tax earnings towards their retirement. Granite Construction offers a 401(k) matching contribution that is 100% of employee contributions up to 6% of compensation, with employees becoming eligible for this match after six months of service (JobzMall) (SEC.gov). In addition to the 401(k) plan, Granite Construction offers a Profit Sharing Plan, which is tied to company profits. The profit-sharing contributions are discretionary and vary depending on the company's earnings (SimpleQDRO). Employees who work for Granite Construction for 10 years or more may also qualify for a pension plan, which complements their retirement savings (JobzMall). Furthermore, Granite Construction provides an Employee Stock Ownership Plan (ESOP), where the company contributes newly issued stock or cash that is used to purchase shares for the employees. This further enhances the retirement benefits available to employees

Restructuring Layoffs: Granite Construction has undergone a significant restructuring effort across its operations throughout 2023-2024. The company reported adjusting its leadership and operational segments to align with market trends, which resulted in notable workforce reductions and asset divestitures (World Construction Network). The adjustments have been positioned as necessary to navigate economic pressures, supply chain disruptions, and increased labor costs. This news is crucial due to the current economic climate, as companies in the construction sector are especially vulnerable to market volatility and regulatory changes. Addressing these layoffs is vital to understanding the broader trends in construction employment and their ripple effects on communities and the economy.

Granite Construction offers stock options and Restricted Stock Units (RSUs) under their 2012 and 2021 Equity Incentive Plans. These stock options are performance-based and are made available to employees as part of their compensation packages. Granite (GVA) employees are eligible to participate in the company's equity awards based on their role and performance, which align with the company’s strategic financial and non-financial goals (Last10K) (SEC.gov). Stock options and RSUs at Granite Construction are available to both managerial and supervisory personnel, aiming to enhance retention and reward significant contributors to the company's success (SEC.gov) (SEC.gov). In 2022, 2023, and 2024, Granite Construction (GVA) continued offering RSUs and stock options as part of its performance-based incentive structure. These RSUs vest over a defined period, typically contingent on meeting certain performance criteria or service durations (SEC.gov). Eligible employees include salaried personnel, primarily those in management roles across the company’s diverse sectors (Granite Construction). The incentive programs are designed to align employee interests with shareholders, promoting long-term growth and value creation

Medical Plans: Granite Construction offers comprehensive healthcare benefits, including options like PPO (Preferred Provider Organization) and HSA (Health Savings Account) plans. Anthem Blue Cross is a major provider for Granite's medical coverage, offering various plan structures such as HSA plans with high deductibles (e.g., $3,000 deductible). Employees typically have access to preventive care, primary care, and specialist visits with coverage based on plan selection. Acronyms and Healthcare-Related Terms: PPO (Preferred Provider Organization): Employees can choose providers within a network for lower out-of-pocket costs. HSA (Health Savings Account): Employees may contribute pre-tax dollars to an account for healthcare expenses. COBRA: Coverage continuation for employees after employment termination or certain life events. Open Enrollment: The annual period where employees can select or change their benefit elections. Recent Employee Healthcare News: Granite Construction has updated its benefit offerings to comply with federal healthcare reform laws, including the Affordable Care Act (ACA). In 2023 and 2024, employees have been encouraged to use online benefits platforms like Workday for enrollment. 100% company-paid health insurance for some employee categories continues to be a key benefit, particularly for those enrolled in high-deductible health plans (HDHPs) that integrate with HSAs.

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For more information you can reach the plan administrator for Granite Construction at , ; or by calling them at .

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