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

Healthcare Provider Update: Healthcare Provider for Guess Guess, the renowned apparel and accessories brand, typically partners with national health insurance providers like UnitedHealthcare for employee healthcare coverage. Such partnerships enable them to offer comprehensive health plans to their employees, ensuring access to a wide network of healthcare services. Potential Healthcare Cost Increases in 2026 In 2026, healthcare costs are projected to rise sharply, presenting significant challenges for consumers and businesses alike. Factors contributing to this surge include the anticipated expiration of enhanced ACA premium subsidies, which could lead to out-of-pocket premium increases exceeding 75% for many policyholders. Additionally, ongoing inflation in the medical sector, driven by escalating costs in hospital services, labor shortages, and increased drug prices, further complicates the financial landscape. As healthcare providers and insurers navigate these pressures, consumers may find themselves facing unprecedented cost burdens unless proactive measures are taken to mitigate the impact. Click here to learn more

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

Full Retirement Age Changes Impacting Guess 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. Guess 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 Guess 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 Guess.

Strategic Planning for Guess Employees Nearing Retirement

While these changes predominantly impact those nearing or already at retirement age, they are also relevant for active Guess 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 Guess 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 Guess 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, Guess 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 Guess employees gearing up for retirement to equip themselves with information to optimize their benefits.

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

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

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

Yes, Guess provides a matching contribution to employees who participate in the 401(k) plan, up to a certain percentage.

What is the eligibility requirement to participate in Guess's 401(k) plan?

Employees at Guess are eligible to participate in the 401(k) plan after completing a specified period of service, typically 30 days.

Can employees at Guess contribute to their 401(k) plan through payroll deductions?

Yes, employees at Guess can make contributions to their 401(k) plan through convenient payroll deductions.

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

The maximum contribution limit for the Guess 401(k) plan is in accordance with IRS regulations, which may change annually.

Does Guess allow employees to take loans from their 401(k) accounts?

Yes, Guess allows employees to take loans from their 401(k) accounts under certain conditions.

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

The Guess 401(k) plan offers a variety of investment options, including mutual funds, stocks, and bonds.

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

Employees at Guess can access their 401(k) account information through the plan's online portal or by contacting the plan administrator.

Is there a vesting schedule for the employer match in the Guess 401(k) plan?

Yes, there is a vesting schedule for the employer match in the Guess 401(k) plan, which outlines how long employees must work to fully own the employer contributions.

Can employees at Guess change their contribution percentage to the 401(k) plan?

Yes, employees at Guess can change their contribution percentage at any time, subject to plan rules.

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

For Guess, Inc., the company's 401(k) plan is known as the "Guess, Inc. 401(k) Plan and Trust." As of 2022, this plan had 4,049 participants, with an average account balance of $20,076 per participant. The estimated average employee contribution in 2022 was $1,269. The 401(k) plan is structured to allow employees to defer a portion of their wages into individual retirement accounts, which are excluded from the employee's taxable income. In terms of eligibility for the 401(k) plan, employees must be 21 years of age and have completed one year of service to participate. The plan also includes a matching contribution from Guess, Inc., although the specifics of the match (e.g., percentage of employee contributions matched) were not detailed in the available sources. Regarding the pension plan, Guess, Inc. offers a defined contribution plan rather than a traditional defined benefit pension plan. This plan allows the company to contribute to individual employee retirement accounts, with the contributions being subject to IRS limits. The company’s contributions are discretionary and are determined by the financial performance of the company. For detailed operational compliance, such as plan amendments, the Guess, Inc. plan is governed by the SECURE 2.0 Act requirements, which introduced new rules regarding catch-up contributions and eligibility for part-time employees starting in 2024.

Restructuring Layoffs: Guess announced restructuring plans in 2023 and 2024 due to declining sales and economic pressure from inflation. The company has laid off numerous employees across various departments as part of this restructuring to streamline operations and reduce costs. These layoffs are crucial to address due to the unstable economic environment, which has impacted consumer behavior and purchasing power. With tax changes also coming into play, these layoffs allow Guess to preserve its financial stability and adapt to a fluctuating market

Company A offered stock options and RSUs to its senior executives and certain key employees. In 2022, the stock options had a four-year vesting schedule with annual vesting. The RSUs granted in 2023 were subject to performance-based criteria. (Source: 10-K Report, Page 42)

Guess has been actively enhancing its employee wellness and health benefits as part of its broader Environmental, Social, and Governance (ESG) strategy. The company's initiatives include expanding wellness and mental health programming, which is set to be fully integrated by 2025. This expansion aims to address the growing need for mental health support among employees, which aligns with their goal of fostering a diverse, inclusive, and connected workplace. In addition to mental health initiatives, Guess is also working on gender pay parity and promoting wellness through various programs, such as mandatory management training on harassment prevention. These efforts are part of a broader commitment to employee well-being, which has been consistently highlighted in their ESG reports. Specific healthcare-related terms and acronyms that Guess focuses on include mental health programming, gender pay parity, and wellness programs, which are key aspects of their strategy to maintain a healthy and supportive work environment.

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

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