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How the Tax and Spending Bill May Affect Genuine Parts Employee Retirement Benefits

'In navigating the One Big Beautiful Bill Act, Genuine Parts employees must carefully consider how changes to Social Security, Medicaid, and Medicare, alongside expanded Health Savings Account benefits, may influence their financial and health care planning for retirement.' – Paul Bergeron, a representative of The Retirement Group, a division of Wealth Enhancement.

'In light of the One Big Beautiful Bill Act, Genuine Parts employees should remain vigilant about how shifts in tax provisions, Social Security taxation, and health care funding could reshape their retirement strategies and future financial stability.' – Tyson Mavar, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article, we will discuss:

The tax provisions of the One Big Beautiful Bill Act and their potential impact on retirees, including Genuine Parts employees.
The proposed changes to Social Security, Medicare, Medicaid, and the implications for senior citizens.
The expansion of health savings accounts (HSAs) and the potential benefits for retirees in managing health care costs.

The One Big Beautiful Bill Act, a recent piece of legislation passed by the House of Representatives, has garnered attention due to its possible effects on retirees, including Genuine Parts employees. It includes a number of tax provisions that may have an influence on finances, including both large revisions and minor relief. Many older individuals are upset because the plan does not offer the expected tax benefits for Social Security recipients. The bill is now scheduled to proceed to the Senate, where it is anticipated to be amended before the President might sign it into law.

Although the plan provides a number of tax breaks, it overlooks the partial taxation of Social Security benefits, which is a problem that many older Americans, including Genuine Parts employees, believed would be resolved. Currently, depending on the recipient's income, federal income taxes may be applied to up to 85% of Social Security benefits. Reducing this tax burden would have been a significant win for retirees, but the reconciliation mechanism currently in place does not allow for such changes. This lack of Social Security assistance is significant, particularly for people who are approaching or have reached retirement and are largely dependent on these payments.

Notwithstanding this obstacle, the plan includes additional clauses that attempt to reduce older individuals' tax costs in various ways. The nonpartisan Congressional Budget Office (CBO) estimates that the bill's tax measures will raise the deficit by almost $3.8 trillion between 2026 and 2034, ¹ making its overall cost significant. The bill proposes to make large changes to Medicaid, which covers one in five Americans, including Genuine Parts employees, to balance these costs. Medicaid, which provides health care coverage to millions of older people, would be under pressure if funding were cut by around $700 billion between 2026 and 2034. ¹

Even though the law includes a number of significant tax reforms, higher-income households will benefit the most. According to an analysis by the Urban Institute and the Tax Policy Center at the Brookings Institution, by 2026, over 80% of households will see tax relief. ² But over 60% of the total tax cuts would go to the wealthiest 20% of households, those making $217,000 or more, with a third going to those making $460,000 or more. ³ This highlights a significant issue for retirees: although some seniors, including those employed by Genuine Parts, may get tax relief, it will mostly be available to those in higher income groups.

The law offers some assistance through an increased standard deduction for seniors, even if Social Security taxes remain unchanged. People 65 and older already receive a greater standard deduction under existing law, but the proposed measure raises it by an extra $4,000 between 2025 and 2028. Seniors who do not pay income taxes on their Social Security benefits because their combined income is less than the necessary thresholds—$32,000 for a married couple filing jointly or $25,000 for an individual—may benefit from this additional deduction. The benefit will not be available to everyone, though, as it begins to phase out for married couples with earnings over $150,000 or $75,000 for single filers, which will affect some Genuine Parts employees.

The bill's almost $500 billion in Medicare spending cuts, which the CBO projects will occur between 2027 and 2034, are another noteworthy feature. If the measure is approved as written, Medicare, which provides coverage to 69 million Americans 65 and older, including many Genuine Parts employees, may experience significant cuts. The precise effects of these cuts on benefits are still unknown, but they might worsen already-existing issues in the Medicare system, increasing beneficiaries' out-of-pocket expenses and possibly affecting the services they depend on.

Medicaid-related provisions are also included in the bill. The implementation of work requirements for Medicaid participants between the ages of 19 and 64 is a significant change. With certain exceptions, these recipients would have to work or engage in approved activities. This could be a major obstacle for those who struggle with age-related health difficulties, caregiving duties, or age discrimination in the workplace. Concerns have been expressed by the advocacy group Justice in Aging regarding the potential effects of these regulations on senior citizens, including those who may work at Genuine Parts, especially those who are already having difficulty finding work.

The plan also suggests capping home equity to qualify for Medicaid. The proposed law would place a hard maximum of $1 million on home equity, although, currently, a person's house value can surpass a particular threshold without excluding them from Medicaid. Since this sum would not be updated for inflation, more people, including Genuine Parts employees, might eventually be ineligible to receive Medicaid long-term care benefits.

Changes that would affect nursing home care are also included in the law. The new bill would suspend a Biden-era rule that requires long-term care facilities to have a registered nurse on staff at all times. Advocates viewed this law as a way to improve the quality of care in assisted living facilities, but it has drawn criticism for perhaps driving up operating expenses for establishments already facing tight margins and staffing shortages, which could also affect seniors, including those connected to Genuine Parts, relying on these services.

Last but not least, the plan proposes to reduce the Supplemental Nutrition Assistance Program (SNAP) by around $300 billion over the course of the next ten years. Many low-income seniors who depend on food assistance depend on SNAP, and these cuts may limit access to essential nourishment for those who are already at risk of financial hardship.

The One Big Beautiful Bill Act does not address the main issues that many retirees had anticipated would be resolved, even though it may provide some benefits to older folks, such as the increased standard deduction. For older Americans, especially those who largely rely on Medicare and Medicaid, the lack of adjustments to Social Security taxation combined with cuts to these programs poses serious issues. It's unclear what changes will be made to the bill once it passes the Senate and eventually reaches the President's desk. In the years to come, seniors, including those employed at Genuine Parts, will need to be aware of and ready for the possible effects these laws may have on their health care and financial stability.

The bill's inclusion of a measure to increase the use of health savings accounts (HSAs) is an important consideration, even though it does not offer tax relief on Social Security income. The law permits those 65 and older to use HSAs for a broader range of costs beginning in 2025, including some over-the-counter drugs and previously uninsured medical services. This modification may provide seniors, including Genuine Parts retirees, with more tax-free ways to reduce their out-of-pocket medical expenses. The Congressional Research Service (2024) claims that this expansion can greatly lower retirement health care costs.

For retirees, the most recent tax reform measure creates conflicting outcomes. It offers many people tax relief by introducing an expanded standard deduction for those 65 and over, even though it does not remove taxes on Social Security income. Millions of elderly Americans' access to health care may be impacted by the bill's substantial cuts to Medicare and Medicaid. Seniors, including those associated with Genuine Parts, will need to carefully plan their financial and health care strategies in light of the changes to Medicaid eligibility and long-term care, as well as the reductions in SNAP.

Planning a road journey with a map that includes a few unanticipated detours is similar to navigating the most recent tax bill for retirees. There are some advantages to the journey, such as a bigger standard deduction to lessen the financial burden, even though the goal of removing Social Security taxes is off the route. The health care system may face difficulties due to changes to Medicare and Medicaid, and some Medicaid beneficiaries may find it more difficult to stay on track as a result of additional work requirements. Retirees who are familiar with the entire route, including Genuine Parts employees, can confidently plan their trip and know what modifications will be required along the way.

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Sources:

1. Congressional Budget Office. ' H.R. 1, One Big Beautiful Bill Act (Dynamic Estimate) .' 17 June 2025.

2. CBS News. ' How much wo uld Americans of different income save in taxes if the GOP bill is signed into law? ' by Aimee Picchi. 16 May 2025.

3. Forbes. ' House Budget Bill Cuts Average Taxes By $2,900, Favors High-Income Households ,' by Howard Gleckman. 3 June 2025.

Other resources:

1. Investopedia Staff. 'This Potential Policy Tweak Could Supercharge Your Health Savings in Retirement.' Investopedia , 1 June 2025, www.investopedia.com/this-quiet-policy-tweak-could-supercharge-your-health-savings-in-retirement-11744569 .

2. The Wall Street Journal Staff. 'Big Tax Breaks for Health Savings Accounts Get Even Better in the GOP Bill.' The Wall Street Journal , 30 May 2025, www.wsj.com/personal-finance/taxes/hsa-2025-changes-6d6314eb .

3. Taylor, Joy. 'Ask the Editor, May 30: Questions on the One Big Beautiful Bill.' Kiplinger , 30 May 2025, www.kiplinger.com/taxes/tax-law/ask-the-editor-may-30-one-big-beautiful-bill .

4. Kiplinger Staff. 'Four Changes to Medicare in the One Big Beautiful Bill Act.' Kiplinger , 30 May 2025, www.kiplinger.com/retirement/medicare/changes-to-medicare-in-the-one-big-beautiful-bill-act .

5. PBS NewsHour Staff. 'House Republicans Narrowly Passed Trump's 'Big, Beautiful' Bill: Here’s What’s In It.' PBS NewsHour , 30 May 2025, www.pbs.org/newshour/politics/house-republicans-narrowly-passed-trumps-big-beautiful-bill-heres-what-in-it .

What benefits does the GPC Pension Plan provide to employees of Genuine Parts Company, and how are these benefits calculated for both Group 1 and Group 2 employees? In the context of Genuine Parts Company, what are the critical factors that determine the pension benefits for employees and how have recent changes to the plan affected these calculations?

The benefits of the GPC Pension Plan for Genuine Parts Company employees are calculated based on the employee’s Final Average Monthly Earnings (FAME) and years of Credited Service. For Group 1 employees, benefits are frozen as of December 31, 2013, with the FAME calculated from the five highest-paid years within the last ten years of service before that date. For Group 2 employees, benefits are similarly frozen as of December 31, 2008, and the same calculation of FAME is applied using the highest earnings before that freeze date(Genuine Parts Company_P…).

How do the eligibility requirements of the GPC Pension Plan differ between Group 1 and Group 2 employees at Genuine Parts Company? Additionally, what specific service requirements must employees meet to qualify for the benefits under each group, particularly considering the impact of employment history and rehire status on benefits?

Eligibility requirements differ between Group 1 and Group 2 employees. Group 1 includes employees with Rule of 70 status, who opted to continue participation in the plan after January 1, 2009. Group 2 employees, which include those rehired before December 31, 2013, had their Credited Service frozen earlier in 2008. Group 1 employees have Credited Service frozen as of December 31, 2013, while Group 2’s freeze date is December 31, 2008(Genuine Parts Company_P…).

What strategies can employees of Genuine Parts Company consider for optimizing their pension benefits when transitioning to retirement? Are there specific actions that employees should take prior to retirement to enhance their benefit calculations under the GPC Pension Plan, particularly in relation to Credited Service and Final Average Monthly Earnings?

To optimize pension benefits, Genuine Parts Company employees should focus on maximizing Credited Service and Final Average Monthly Earnings (FAME). Ensuring a full work history before the freeze date (2013 for Group 1, 2008 for Group 2) can enhance the benefit calculation. Employees can also review their Social Security benefit estimates, which are considered in calculating their pension(Genuine Parts Company_P…).

How does the vesting process work for employees participating in the GPC Pension Plan at Genuine Parts Company, and what implications does it have for those contemplating early retirement? Furthermore, how does the ability to vest at different service intervals specifically impact the retirement planning of employees?

The vesting process for the GPC Pension Plan requires employees to accumulate vesting service years, which continues even after the freeze date. Employees are automatically fully vested after seven years of service, or if they worked at least one hour after December 31, 2013. Vesting ensures the right to the earned pension benefits, which may affect retirement planning, especially for those contemplating early retirement(Genuine Parts Company_P…).

What information should Genuine Parts Company employees know about the different forms of payment available under the GPC Pension Plan once they reach retirement age? How do options such as life annuities and lump-sum payments affect the overall financial planning for retiring employees?

Genuine Parts Company employees can choose from various forms of pension payments upon retirement, including life annuities, joint and survivor annuities, and lump-sum payments. Each option affects financial planning differently: life annuities provide steady income, while lump sums offer flexibility but require careful management to ensure long-term financial stability(Genuine Parts Company_P…).

In the event of a termination of employment, what options are available for employees of Genuine Parts Company to access their pension benefits under the GPC Pension Plan? Additionally, what are the specific procedures that employees must follow to ensure they receive their benefits in a timely manner?

In the event of termination, employees who are vested can access their pension benefits, either at their normal retirement age or earlier if they meet the eligibility criteria for early retirement. Employees must submit a request within 180 days of their termination date to receive benefits, with options for lump sum payments for amounts under $75,000(Genuine Parts Company_P…)(Genuine Parts Company_P…).

How can employees of Genuine Parts Company ensure that their beneficiaries are appropriately named under the GPC Pension Plan? What considerations should employees keep in mind when designating beneficiaries, particularly understanding consent needs for spouses and the impact of domestic relations orders?

Genuine Parts Company employees should ensure their beneficiaries are properly named, particularly if married. A spouse is the default beneficiary, but spousal consent is required if an employee designates someone else. Domestic relations orders may also affect beneficiary designations(Genuine Parts Company_P…).

What unique situations might affect the pension benefits of employees at Genuine Parts Company, and how does the plan specifically address employees on military leave or long-term disability? In these circumstances, what communication strategies should employees employ to navigate their benefits?

For employees on military leave or long-term disability, the GPC Pension Plan provides special rules for calculating benefits. These employees should maintain close communication with the Employee Service Center to ensure their benefits are appropriately adjusted(Genuine Parts Company_P…).

Regarding the reporting and update of personal information, why is it essential for employees of Genuine Parts Company to keep the GPC Employee Service Center informed about any changes in marital status or address? How can failure to report these changes potentially impact the pension benefits they receive?

Employees must keep the GPC Employee Service Center informed of any changes in marital status or address, as failure to do so could result in delayed or incorrect pension benefit payments(Genuine Parts Company_P…).

How can employees at Genuine Parts Company reach out for further clarification on the details presented in the Summary Plan Description of the GPC Pension Plan? What resources or contact points are available that could assist in navigating the complexities of the pension plan, ensuring employees can maximize their benefits effectively?

Genuine Parts Company employees can reach out to the GPC Retirement Plan Services through their toll-free number or website for clarification on the pension plan details. These resources are crucial for navigating the complexities of the pension system(Genuine Parts Company_P…).