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Navigating Retirement at Aetna A Guide to Helping Increase Your Benefits in 2025

'Aetna employees must remain vigilant in adapting to ongoing changes in retirement benefits, from COLA adjustments to TSP contributions, to ensure they are maximizing their retirement options and securing their financial future.' – Wesley Boudreaux, a representative of The Retirement Group, a division of Wealth Enhancement Group.

'Aetna employees should take advantage of retirement tools like catch-up contributions and Medicare strategies to optimize their benefits, ensuring a smooth transition into retirement with comprehensive coverage and financial security.' – Patrick Ray, a representative of The Retirement Group, a division of Wealth Enhancement Group.

In this article, we will discuss:

Key Updates on Retirement Benefits— Changes in annuities, cost-of-living adjustments, and Thrift Savings Plan (TSP) contributions.
Essential Insurance and Healthcare Considerations— Medicare enrollment strategies, FEGLI policy adjustments, and FEDVIP premium updates.
Financial and Estate Planning for a Comprehensive Future— Long-term care options, estate planning, and managing post-retirement benefits.

As 2025 unfolds, more options and considerations for Aetna employees and retirees are emerging in the retirement landscape. You will find this guide useful for making the transition to retirement.

Updates on Annuities & Cost of Living Adjustments.

Here are a few tools and services from Aetna to help you manage your annuity benefits. Annuity payments for retirees were adjusted in January 2025 for the 2024 cost-of-living adjustments (COLA), effective December 1, 2024. The COLA is 2.0% for Federal Employees Retirement System recipients and 2.5% for Civil Service Retirement System recipients. Social Security and military retirement payments also rise 2.5%. [Source needed]

Insurance Considerations

In retirement planning, insurance is an essential purchase. Regular reviews of your Federal Employees Group Life Insurance (FEGLI) policy are recommended as retirement approaches. Remember, FEGLI premiums increase every five years starting at age 50 - this can squeeze your budget. You can also enroll in Medicare Part A when you reach 65 to avoid penalties if you haven't claimed Social Security benefits yet.

Thrift Savings Plan Insights

Contributions to the Thrift Savings Plan (TSP) must increase. Those over 50 can contribute an additional USD 7,500 in 2025. To receive the full benefit of matching contributions, a minimum contribution of 5% per pay period is advised.

Medicare Enrollment Strategies

Crucial decisions regarding Medicare enrollment include when to enroll in parts A, B, C, and D. Combining your FEHB and TRICARE for Life with Medicare Parts A and B can lower your out-of-pocket costs.

The Federal Employees Dental and Vision Insurance Program (FEDVIP) is administered by the Federal Employees Dental and Vision Insurance Program (FEDVIP).

Participants in FEDVIP should know that 2025 premium changes could impact benefits. Update your enrollment details after a major life event or relocation for coverage continuity.

Long-Term Care & Retirement Planning.

Understand long-term care insurance and how it fits into your retirement planning. Check out the terms of your policy and how it fits in with other benefits you may be able to receive.

Estate Planning & Beneficiary Designations.

Estate planning and current beneficiary designations are critical to your assets. Regularly review and update these designations based on your personal situation.

Retirement Training and Resources

People nearing retirement can get training and tools. They include webinars and seminars on topics as simple as retirement planning to more complex issues like long-term care and Medicare options.

TSP Withdrawals and Regulations

New legislation affecting required minimum distributions (RMDs) and TSP withdrawals will help you manage your TSP account in retirement.

Retention of Personal Documents

Retaining copies of important documents, such as your proof of insurance and Notification of Personnel Action (SF-50s), is helpful when you retire to verify eligibility and service estimates.

Post-Retirement Federal Benefits Management

Staying connected with the Office of Personnel Management and other relevant agencies helps with benefit administration after retirement. Continuous management is needed for Medicare coordination, insurance coverage maintenance, and annuity adjustment.

So, in conclusion, 2025 brought many updates and revisions to retirement planning at Aetna. Staying proactive in managing your retirement plans, understanding policy impacts, and making informed decisions will enhance your retirement outcomes for a full and fulfilling retirement.

Articles you may find interesting:

Sources:

1. The Thrift Savings Plan. 2025 TSP Contribution Limits . 13 Nov. 2024, www.tsp.gov .

2. Friedman, Drew. 2025 COLA Will Be 2.5%, but Some Federal Retirees Get a Smaller Percentage . Federal News Network , 10 Oct. 2024, www.federalnewsnetwork.com .

3. Internal Revenue Service. 401(k) Limit Increases to $23,500 for 2025, IRA Limit Remains $7,000 . 1 Nov. 2024, www.irs.gov .

4. Serving Those Who Serve Editorial Team. 2025 Social Security COLA Increase . Serving Those Who Serve , Oct. 2024, www.stwserve.com .

5. The Thrift Savings Plan. SECURE Act 2.0, Section 109: Higher Catch-Up Limit to Apply at Age 60, 61, 62, and 63 . Jan. 2025, www.tsp.gov .

How does Aetna Inc.'s frozen pension plan affect employees' eligibility for benefits, and what specific criteria must current employees meet to qualify for any benefits from the Retirement Plan for Employees of Aetna Inc.?

Eligibility for Benefits: Aetna Inc.'s pension plan has been frozen since January 1, 2011, meaning no new pension credits are accruing. Employees who were participants before this date remain eligible for benefits but cannot accrue additional pension credits. To qualify for benefits, participants need to have been vested, which generally occurs after three years of service(PensionSPD).

In what ways can employees at Aetna Inc. transition their pension benefits if they leave the company, and what implications does this have for their tax liabilities and retirement planning?

Transitioning Pension Benefits: If employees leave Aetna, they can opt for a lump-sum distribution or an annuity. Employees can roll over their lump-sum payments into an IRA or other tax-qualified plans to avoid immediate taxes. However, direct rollovers must follow the tax-qualified plan's rules. If not rolled over, employees are subject to immediate tax and potential penalties(PensionSPD).

What steps should an Aetna Inc. employee take if they become disabled and wish to continue receiving pension benefits, and how does the company's policy on disability impact their future retirement options?

Disability and Pension Benefits: Employees who become totally disabled and qualify for long-term disability can continue participating in the pension plan until their disability benefits cease or employment is terminated. No additional pension benefits accrue after December 31, 2010, but participation continues under the plan until employment formally ends(PensionSPD).

Can you explain the implications of the plan amendment rights that Aetna Inc. retains, particularly concerning any potential changes in the pension benefits and what this could mean for employee planning?

Plan Amendment Rights: Aetna reserves the right to amend or terminate the pension plan at any time. If the plan is terminated, participants will still receive benefits accrued up to the date of termination, protected by ERISA. Any future changes could impact employees' planning and retirement options(PensionSPD).

How does the IRS's annual contribution limits for pension plans in 2024 interact with the provisions of the Retirement Plan for Employees of Aetna Inc., and what considerations should employees keep in mind when planning their retirement contributions?

IRS Contribution Limits: The IRS sets annual contribution limits for pension plans, including defined benefit plans. In 2024, employees should ensure that their pension contributions and tax planning strategies align with these limits and the provisions of Aetna's pension plan(PensionSPD).

What are the options available to Aetna Inc. employees regarding pension benefit withdrawal, and how can they strategically choose between a lump-sum distribution versus an annuity option?

Withdrawal Options: Aetna employees can choose between a lump-sum distribution or various annuity options when withdrawing pension benefits. The lump-sum option allows for immediate access to funds, while annuities provide monthly payments over time, offering a more stable income stream(PensionSPD).

How does Aetna Inc. ensure compliance with ERISA regulations concerning the rights of employees in the retirement plan, and what resources are available for employees to understand their rights and claims procedures?

ERISA Compliance: Aetna complies with ERISA regulations, ensuring employees' rights are protected. Resources are available through the Plan Administrator and myHR, providing information on claims procedures, plan rights, and how to file appeals if necessary(PensionSPD).

What documentation should employees of Aetna Inc. be aware of when applying for their pension benefits, and how can they ensure that they maximize their benefits based on their years of service?

Documentation for Benefits: Employees should retain service records and review their benefit statements to ensure they receive the maximum pension benefits. They can request additional documents and assistance through myHR to verify their years of service and other relevant criteria(PensionSPD).

How do changes in interest rates throughout the years affect the annuity payments that employees at Aetna Inc. might receive upon retirement, and what strategies can they consider to optimize their retirement income?

Impact of Interest Rates on Annuities: Interest rates significantly affect annuity payments. Higher interest rates increase the monthly annuity amount. Employees should consider the timing of their retirement, especially at the end of the year, when interest rates for the following year are announced(PensionSPD).

If employees want to learn more about their pension options or have inquiries regarding the Retirement Plan for Employees of Aetna Inc., what are the best channels to contact the company, and what specific resources does Aetna provide for assistance?

Contact for Pension Inquiries: Employees can contact myHR at 1-888-MY-HR-CVS (1-888-694-7287), selecting the pension menu option for assistance. Aetna also provides detailed resources through the myHR website, helping employees understand their pension options and benefits(PensionSPD).