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How the Tax and Spending Bill May Affect Nordson Employee Retirement Benefits

'In navigating the One Big Beautiful Bill Act, Nordson 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, Nordson 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 Nordson 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 Nordson 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 Nordson 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 Nordson 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 Nordson, 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 Nordson 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 Nordson 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 Nordson, 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 Nordson 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 Nordson, 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 Nordson, 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 Nordson 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 Nordson, 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 Nordson 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 .

How does the Nordson Corporation Salaried Employees Pension Plan calculate an employee's Accrued Benefit, and what factors need to be considered to ensure accurate pension benefits at retirement? Understanding the components that contribute to the calculation is crucial for employees planning their retirement through Nordson Corporation.

Accrued Benefit Calculation: Nordson Corporation calculates an employee’s Accrued Benefit based on the Final Average Monthly Pay, the number of Years of Benefit Service, and an estimate of the employee’s Social Security benefit. The formula used includes a reduction if an employee has less than 30 Years of Benefit Service(Nordson Corporation_Feb…).

What are the eligibility criteria for joining the Nordson Corporation Salaried Employees Pension Plan, and how can employees determine their vesting status as they approach retirement? It is essential for employees to be aware of the timelines and requirements necessary to fully benefit from the retirement plan offered by Nordson Corporation.

Eligibility Criteria: Employees become eligible for the Nordson Corporation Salaried Employees Pension Plan after completing a Year of Eligibility Service, which requires at least 1,000 hours of work annually. Vesting occurs after completing 5 Years of Vesting Service, ensuring full entitlement to benefits(Nordson Corporation_Feb…).

In what ways can employees at Nordson Corporation access information about their pension plan benefits, and what steps should they follow if they believe their claims for benefits were denied? Knowing the appropriate channels for receiving information can help employees navigate any discrepancies with their pension benefits.

Accessing Pension Information and Claiming: Employees can access their pension plan details through John Hancock’s website or phone service. If a benefit claim is denied, employees can follow the claims procedure outlined by Nordson, which includes submitting a written request and appealing decisions(Nordson Corporation_Feb…).

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Early Retirement Options: Nordson Corporation offers early retirement options starting at age 55, with at least 5 years of vesting service. Benefits are reduced by 6% per year for each year that early retirement is taken before the Normal Retirement Date(Nordson Corporation_Feb…).

How does Nordson Corporation's pension plan ensure that employees receive monthly benefits post-retirement, and what are the different forms of payment available to retirees? Grasping the payment structures may help employees make informed decisions regarding their retirement income.

Monthly Benefit Payments: Employees retiring from Nordson Corporation can choose various payment methods, including a Life Annuity or a 50% Joint & Survivor Annuity for married participants. Payments start after the Normal Retirement Date or early retirement, depending on the selected option(Nordson Corporation_Feb…).

What rights do participants have under the Employee Retirement Income Security Act (ERISA) concerning their Nordson Corporation pension plan, and what should they do to enforce these rights effectively? Employees should be aware of their rights to protect themselves during the benefit claiming process.

ERISA Rights: Under ERISA, participants have the right to receive information about their benefits, file claims, and sue if benefits are denied. Plan fiduciaries must act in the best interest of employees, and participants are protected from retaliation for asserting their rights(Nordson Corporation_Feb…).

How does the termination or amendment of the Nordson Corporation Salaried Employees Pension Plan affect employees' accrued benefits, and what protections are in place? Awareness of these scenarios can help employees better plan their financial futures in relation to their pensions.

Plan Termination or Amendment: If the plan is terminated or amended, accrued benefits cannot be reduced, and employees’ benefits become 100% vested. This ensures that employees retain the benefits they have earned up to the point of the change(Nordson Corporation_Feb…).

In what situations might employees at Nordson Corporation lose their pension benefits, and what preventative actions can they take to ensure they remain eligible for these benefits? Understanding the risks involved in pension plans can aid employees in maintaining their retirement security.

Loss of Pension Benefits: Employees may lose pension benefits if they leave Nordson Corporation before vesting or fail to select appropriate survivor options. Keeping the Plan Administrator informed of current contact information is crucial to avoid losing benefits(Nordson Corporation_Feb…).

How can employees at Nordson Corporation address questions or concerns related to their retirement planning, and what resources are available for personalized assistance? Access to proper resources is vital for employees needing guidance throughout their retirement journey.

Retirement Planning Resources: Employees can contact the Plan Administrator or use John Hancock’s automated services to address questions about retirement planning. Personalized assistance is available for any specific pension-related inquiries(Nordson Corporation_Feb…).

What steps should employees take to contact Nordson Corporation or the Plan Administrator to get detailed information about their pension plan, and what should they include in their inquiries to ensure a comprehensive response? Effective communication techniques can significantly enhance employees' understanding of their benefits. These questions have been designed to help employees of Nordson Corporation navigate their pension plan and retirement effectively.

Contacting the Plan Administrator: Employees can contact Nordson Corporation or the Plan Administrator by calling the number listed in the Summary Plan Description. It’s advisable to provide detailed questions regarding benefit amounts, vesting status, or payment options to receive a thorough response(Nordson Corporation_Feb…).