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Upcoming Social Security Changes: What Moody's Employees Should Know for January 2025

Healthcare Provider Update: Healthcare Provider for Moody's: Moody's Corporation itself is primarily a financial services company known for its analytical and credit rating services. It does not operate as a healthcare provider. However, within the healthcare sector, it analyzes health insurers and hospital systems, assessing their financial viability and operational performance. Healthcare Cost Increases in 2026: In 2026, healthcare costs are projected to soar, driven by several interlinked factors. A significant sunset of enhanced Affordable Care Act (ACA) subsidies could lead to out-of-pocket premiums skyrocketing by over 75% for many consumers. Compounding this, record-breaking requests for premium increases -with some states reporting hikes of over 60% -reveal an industry grappling with heightened medical expenses and operational pressures. Insurers, even with reported profits exceeding $31 billion, face the reality that escalating rates and diminishing financial support threaten the affordability of healthcare coverage for millions moving forward. Click here to learn more

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

Full Retirement Age Changes Impacting Moody's 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. Moody's 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 Moody's 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 Moody's.

Strategic Planning for Moody's Employees Nearing Retirement

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

What type of retirement plan does Moody's offer to its employees?

Moody's offers a 401(k) savings plan to help employees save for retirement.

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

Employees can enroll in Moody's 401(k) plan through the company's benefits portal during the enrollment period.

Does Moody's match employee contributions to the 401(k) plan?

Yes, Moody's provides a matching contribution to employee 401(k) accounts, subject to certain limits.

What is the maximum contribution limit for Moody's 401(k) plan?

The maximum contribution limit for Moody's 401(k) plan is in line with IRS guidelines, which can change annually.

Can employees at Moody's take loans against their 401(k) savings?

Yes, Moody's allows employees to take loans against their 401(k) savings, subject to specific terms and conditions.

What investment options are available in Moody's 401(k) plan?

Moody's 401(k) plan offers a variety of investment options, including mutual funds and target-date funds.

How often can employees change their contribution amounts in Moody's 401(k) plan?

Employees can change their contribution amounts to Moody's 401(k) plan at any time, subject to plan rules.

What happens to my 401(k) savings if I leave Moody's?

If you leave Moody's, you can roll over your 401(k) savings into another qualified retirement account or leave it in the plan, depending on the balance.

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

Yes, Moody's has a vesting schedule for matching contributions, which determines when employees fully own those funds.

Can employees at Moody's access their 401(k) savings before retirement?

Employees at Moody's may access their 401(k) savings before retirement under certain circumstances, such as financial hardship.

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

Name of Plan: Moody's does not appear to have a traditional defined benefit pension plan but instead offers a 401(k) plan. Years of Service and Age Qualification: Specific details on years of service and age qualifications may not be applicable as there is no traditional pension plan. Pension Formula: Not applicable. Who Qualifies: Employees are typically eligible for benefits under the 401(k) plan rather than a pension plan. Name of Plan: Moody’s 401(k) Retirement Plan. Who Qualifies: Employees who meet the eligibility requirements can participate. Typically, full-time employees are eligible to participate in the 401(k) plan. Contribution Details: Employees can contribute a percentage of their salary, and Moody’s may offer a matching contribution.

Restructuring and Layoffs: Moody's Corporation announced a significant restructuring initiative in early 2023 aimed at streamlining operations and reducing costs. This restructuring included the elimination of several positions across various departments. The decision was driven by a need to enhance operational efficiency and adapt to changing market conditions. The layoffs affected both senior and junior roles, emphasizing the company's strategic shift towards more agile and streamlined operations.

Company Filings: Look at Moody’s annual reports (10-K) and quarterly reports (10-Q) filed with the SEC. These documents often contain detailed information on stock options and RSUs. Investor Relations: Visit Moody’s Investor Relations website. They usually provide access to annual reports, earnings releases, and proxy statements that include details about compensation packages. Financial News Websites: Sites like Bloomberg, Yahoo Finance, or Reuters may have articles or reports about Moody’s compensation practices and stock options. SEC EDGAR Database: Search for Moody’s filings in the EDGAR database for detailed financial and compensation information.

2023 Adjustments: Moody’s made adjustments to their healthcare plans in 2023 to offer more flexible options, including increased contributions to HSAs and expanded telemedicine services. 2024 Initiatives: For 2024, Moody’s has introduced new wellness programs and enhanced mental health support as part of their benefits package. This includes expanded access to counseling and mental health resources. General Trends: Moody’s is aligning with broader trends in the industry towards more flexible and employee-centric healthcare solutions, emphasizing mental health and preventive care.