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Deductions: Charitable Gifts For Alcoa Employees

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Healthcare Provider Update: Healthcare Provider for Alcoa Alcoa has partnered with several healthcare plans to provide its employees with benefits, primarily utilizing the services of major health insurance providers. For many employees, Alcoa's health coverage encompasses offerings from companies like Anthem Blue Cross Blue Shield and Aetna, focusing on comprehensive coverage options that include medical, dental, and vision plans. Potential Healthcare Cost Increases for Alcoa in 2026 As we look ahead to 2026, healthcare costs are projected to rise significantly, primarily driven by increases in ACA marketplace premiums. Nationally, insurers are requesting median premium hikes of approximately 20%, with individual states seeing increases as high as 66%. The expiration of enhanced federal premium subsidies adds further pressure, potentially leading to a staggering 75% increase in out-of-pocket costs for many enrollees. For Alcoa employees, these factors will likely mean a reevaluation of healthcare spending and strategic planning to mitigate escalating out-of-pocket expenses in the coming year. Click here to learn more

What Is a Charitable Gift?

As an employee of Alcoa, you may find it beneficial to learn more about charitable gifts. A charitable gift is a contribution of cash or property to, or for the use of, a qualified charity. A gift is 'for the use of' an organization when it's held in a legally enforceable trust for the qualified organization or in a similar legal arrangement. Americans give billions of dollars to charities each year, partly because charitable donations are tax deductible. To receive a tax deduction for your gift, you must itemize your deductions and make the gift to a qualified organization, not to a specific person. For example, a gift that's for the benefit of an individual flood victim isn't deductible, but a gift to a qualified organization that helps flood victims generally is deductible.

Tip:  Persons aged 70½ and older can exclude from their gross income qualified charitable distributions of up to $100,000 a year from a traditional IRA or a Roth IRA. Distributions must be made directly from the IRA to the charity, and all the usual requirements for charitable deductions must be met.

Tip:  To deduct a charitable contribution, you must file Form 1040 and itemize deductions on Schedule A.

What Is a Qualified Organization?

In General

Now some of our clients from Alcoa may be wondering, what would be considered a qualified organization? Not all contributions to tax-exempt organizations are tax-deductible. Instead, the contribution must be to a qualified organization. Churches, synagogues, temples, mosques, and governments automatically get qualified organization status. Other organizations must apply to the IRS, which provides data on eligible organizations on its website (www.irs.gov) through its Exempt Organizations Select Check tool. The list maintained by the IRS, however, is not all-inclusive (i.e., there are some qualified organizations for which the deductions are tax deductible that aren't yet on the list). For any Alcoa employees who want to donate to a charity but aren't sure if it's a qualified organization, ask the charity or the IRS.

Five Specific Types of Qualified Organizations:
It's also important that our Alcoa clients know of some specific qualified organizations. 

  • First, any community chest, corporation, trust, fund, or foundation organized or created in or under the laws of the United States, any state, the District of Columbia, or any U.S. possession and operated solely for religious, charitable, educational, scientific, or literary purposes or for the prevention of cruelty to children or animals. For example, organizations such as the Red Cross, the United Way, and the Salvation Army fall within this category, as does the National Park Foundation.
  • War veterans' organizations, including posts, auxiliaries, trusts, or foundations organized in the United States or its possessions.
  • Domestic fraternal societies, orders, and associations operating under the lodge system— if your contribution is to be used solely for charitable, religious, scientific, literary, or educational purposes or for the prevention of cruelty to children or animals.
  • Certain nonprofit cemetery companies or corporations — if your contribution is not to be used for the care of a specific lot or mausoleum crypt.
  • The United States or any state, the District of Columbia, a U.S. possession, a political subdivision of a state or U.S. possession, or an Indian tribal government or any of its subdivisions that performs a substantial government function — if the contribution is to be used solely for public purposes.

Charitable Contributions in General

Generally, you can deduct a contribution of money or property that you make to, or for the use of, a qualified organization. The amount that you can deduct in any given year is limited to a specific percentage of your adjusted gross income (AGI), as discussed in the following sections. If you receive a benefit as a result of making a contribution, you can deduct only the amount of your contribution that exceeds the value of the benefit received.

You may deduct your entire payment to a charity if you receive only a token item in return and the charity correctly tells you (1) that the item's value isn't substantial, and (2) that you can deduct your full payment. Prior to 2018, if you made a contribution to a college or university and as a result received the right to buy tickets to an athletic event in the facility's athletic stadium, you could deduct 80 percent of your payment as a charitable contribution. No deduction is allowed after 2017.

Limits Based on Adjusted Gross Income (AGI)

Deductions Limited To 50 Percent of Adjusted Gross Income (AGI)

Your deduction for charitable contributions cannot amount to more than 50 percent of your AGI for the year, and lower percentage limits can apply, depending on the type of property that you give and the type of organization to which you contribute. The 50 percent limit (60 percent for certain cash gifts) applies to gifts you make to qualified organizations that are public charities or private operating foundations, such as churches, certain educational organizations, hospitals, and certain medical research organizations associated with the hospitals. Most organizations can tell you whether or not they are 50 percent limit organizations. The 50 percent limit is increased to 60 percent for certain cash gifts for 2018 to 2025 (i.e., for cash gifts to a public charity that would otherwise qualify for the 50 percent limit).

Deductions Limited to 30 Percent of Adjusted Gross Income (AGI)

  • Your deduction for charitable contributions made to organizations that are not 50 percent limit organizations (see above) cannot be more than 30 percent of your AGI for the year. Organizations that are not considered 50 percent limit organizations include veterans' organizations, fraternal societies, nonprofit cemeteries, and certain private nonoperating foundations.
  • In addition, we'd like our clients from Alcoa to know that if you make a charitable contribution for the use of any organization (e.g., you make a gift in trust), as compared with an outright gift, your deduction is limited to 30 percent of your AGI.
  • Capital gain property (property that would have resulted in realized long-term capital gains if sold) given to a 50 percent limit organization is also subject to the 30 percent limit.

Caution:  It's important that these Alcoa employees note that the 30 percent limit does not apply when you choose to reduce the fair market value (FMV) of the property by the amount that represents the long-term gain that would result if you sold the property. In this case, the 50 percent limit applies.

Deductions Limited to 20 Percent of Adjusted Gross Income

Next, we'd like these Alcoa employees to note that all gifts of capital gain property, to or for the use of organizations that are not 50 percent limit organizations, are limited to 20 percent of your AGI.

Five-Year Carryover of Unused Charitable Deductions

Alcoa employees may also find it interesting to know that you can carry over your contributions that you aren't able to deduct in the current year because they exceed your AGI limits. You can deduct this carryover amount until it is used up but not beyond five years. The same AGI percentage limitations that apply in the year the deduction originated will apply in the year(s) to which it is carried. So, for example, contributions subject to a 20 percent AGI limitation this year will be subject to a 20 percent AGI limitation if carried forward to a future year.

Caution:  We'd like our Alcoa clients to be aware that   special rules apply if you use the standard deduction (rather than itemizing) in any of the years in which you carry forward unused charitable deductions. Essentially, the carryover amount must be reduced by the amount that you would have been able to deduct had you itemized.

Example(s):  Jack's AGI for the current tax year is $50,000. In August of the current tax year, he gave his church $2,000 in cash (a 50 percent charity). He also gave his church land with an FMV of $30,000 and a basis of $22,000. The land was held for investment for more than 12 months. The donation of the land is subject to the special 30 percent limitation. He also gave $5,000 of capital gain property to a private foundation that is a non-50 percent charity. The $5,000 contribution is subject to the 20 percent limitation.

Example(s):  Jack's charitable contribution deduction is computed as follows: The total charitable contribution deduction can't exceed $25,000 (50 percent of $50,000). The cash contribution is considered first, since Jack made it to a 50 percent charity.  Other charitable contributions are considered in the following order, not to exceed 50 percent of AGI in the aggregate:

  • Contributions of noncapital gain property to non-50 percent charities, to the extent of the lesser of: (a) 30 percent of AGI, or (b) 50 percent of AGI reduced by all contributions to 50 percent charities.
  • Contributions of capital gain property to 50 percent charities, up to 30 percent of AGI. 3. Contributions of capital gain property to non-50 percent charities, to the extent of the lesser of: (a) 20 percent of AGI, or (b) 30 percent of AGI less contributions of capital gain property to 50 percent charities.

Example(s):  Jack's donation of land to the church is subject to the special 30 percent of AGI limit described in item 2. It is included at FMV ($30,000) in applying the 30 percent limitation. Therefore, Jack can deduct a maximum of $15,000 (30 percent of  $50,000 AGI) for the donation of the land. The unused special 30 percent contribution ($15,000) may be carried over to later years. The $5,000 contribution to the private foundation is nondeductible because of the limitation described in item 3 [(30 percent  of $50,000 AGI) - $30,000 contribution of land = 0] and carries over to the following tax year.

Example(s):  Therefore, Jack's current tax year deduction is limited to $17,000 ($2,000 + $15,000). The aggregate 50 percent limitation wasn't reached. Both carryovers continue to be subject to the special 30 percent and 20 percent limits, respectively.

What If You Give Property Instead of Cash?

You generally can deduct the fair market value (FMV) of the property at the time you give it to the charity. FMV is the price a willing seller receives from a willing buyer for the property, with both knowing relevant facts about the property. If the property has gone up in value since you purchased it, you may have to make an adjustment to the amount of your deduction (generally this is true if, had you sold the property, you would have recognized ordinary income or short-term capital gain — in such a case, the amount you can deduct may be limited to FMV less the amount that would have been ordinary income or short-term capital gain if you had sold the property). If the property has decreased in value, you may deduct its FMV. IRS Publication 561 (Determining the Value of Donated Property) can help you to determine FMV.

Caution:  We'd also like these Alcoa clients to note that an accurate assessment is important because you may be liable for a special penalty if you overstate the value of donated property and underpay your tax by more than $5,000 due to the overstatement.

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In general, you cannot deduct a charitable contribution of less than your entire interest in property. That normally includes a contribution of the right to use your property (since that represents less than your entire interest in the property). There are exceptions to the partial interest rule, however, including the donation of a remainder interest in your home.

If you contribute property that's subject to a debt or mortgage, for purposes of calculating your deduction you generally have to reduce the FMV of the property by any allowable deduction for interest you have paid (or will pay) that is attributable to any period after the contribution. (This prevents you from taking the same amount as both an interest deduction and a charitable deduction.)

We'd like these Alcoa clients to know that special rules apply to the contribution of certain types of property, including clothing and household items, as well as cars, boats, and airplanes. For example, you cannot take a deduction for clothing or household items donated unless the clothing or household items are in good used condition or better. However, an exception exists if you claim more than $500 for an individual item and include a qualified appraisal with your return.

If you donate a patent or other intellectual property, your deduction is limited to the basis of the property or the FMV of the property, whichever is less. You also may be able to claim additional charitable contribution deductions in the year of the contribution and years following, based on any income generated by the donated property. Your ability to claim additional deductions based on the earnings of the donated intellectual property is subject to limitation, and is phased out over a 12-year period. We suggest that these Alcoa employees consult a tax professional.

Can You Deduct Your Out-of-Pocket Expenses?

For any of our clients from Alcoa who either  have  or  may  incur expenses while providing services to a qualified organization, you may generally deduct unreimbursed amounts that are directly connected with the services you provided. For example, you may deduct the cost and upkeep of uniforms that you must wear while performing charitable services if the uniforms aren't appropriate for everyday use. You can also deduct car expenses, such as gas and oil, if they're directly related to using your car to provide services and you can provide reliable written records of your expenses. Instead of deducting actual expenses, you can choose to deduct a standard mileage rate of 14 cents per mile. You can also deduct parking and tolls. However, these Alcoa clients should note that depreciation and insurance are not deductible.

If you travel away from home to perform services as a chosen representative for the qualified charity, you can deduct the expenses you incur if there's no significant element of personal pleasure, recreation, or vacation in the travel. This doesn't mean you can't enjoy yourself while providing charitable services. It does mean, however, that you can't deduct the expenses of a Caribbean cruise just because you provide nominal charitable services while on the boat. If you receive a daily allowance from the charity to cover your reasonable travel expenses, you must include in your income the amount of that allowance that is more than your deductible travel expenses. You may still be able to deduct the amount you spend over the allowance. Deductible travel expenses include air, rail, or bus transportation; out-of-pocket expenses for your car; transportation between the airport or station and your hotel; lodging costs; and the cost of meals.

What Kinds of Contributions Aren't Deductible?

Now that we've gone over what contributions  are  deductible, we'd like our Alcoa clients to also know what contributions  aren't  deductible. In general, the following cannot be deducted as charitable contributions:

  • A contribution to a specific person  — You may deduct a donation to a qualified organization that provides aid to the homeless but not a donation to a homeless person you encounter on the street.
  • A contribution to a nonqualified organization  — The organization must meet IRS criteria of a qualified organization.
  • Any part of your contribution from which you receive or expect to receive a benefit  — You can deduct only the amount of your donation that exceeds the value of the benefit you receive. If you pay more than FMV to a charity for merchandise, goods, or services, you may deduct the amount you pay that's more than the value of the item if you pay it with the intent to make a charitable contribution. (You may deduct your entire payment to a charity if you receive only a token item and the charity correctly tells you (1) that the item's value isn't substantial, and (2) that you can deduct your full payment.)
  • The value of your time or services  — You may deduct unreimbursed amounts that are directly connected with the services you provide and which you incurred only because of the services you gave, but you may not deduct the value of your time or services.
  • Your personal expenses  — You may not deduct expenses that are your personal, living, or family expenses.
  • Certain contributions of partial interests in property  — Generally, you may not deduct a transfer of a partial interest in property to a qualified organization. There are some exceptions to the general rule, however, including a contribution of a remainder interest in your personal home or farm; an undivided part of your entire interest; a partial interest that would be deductible if transferred to certain types of trusts; and a qualified conservation contribution.

Qualified Conservation Contributions

In general, the charitable contribution of a partial interest in property is not deductible. A qualified conservation contribution is an exception to this rule. A qualified conservation contribution is a contribution of a qualified real property interest to a qualified organization exclusively for conservation purposes.

Technical Note:  A qualified real property interest  is (1) the entire interest of the donor other than a qualified mineral interest,  (2) a remainder interest, or (3) a restriction (granted in perpetuity) on the use that may be made of the real property.

Technical Note:  Qualified organizations   include certain governmental units, public charities that meet certain public support tests, and certain supporting organizations.

Technical Note:  Conservation purposes   include (1) the preservation of land areas for outdoor recreation by, or for the education of, the general public; (2) the protection of a relatively natural habitat of fish, wildlife, or plants, or similar ecosystem; (3) the preservation of open space (including farmland and forest land) where such preservation will yield a significant public benefit and is either for the scenic enjoyment of the general public or pursuant to a clearly delineated Federal, State, or local governmental conservation policy; and (4) the preservation of a historically important land area or a certified historic structure.

Qualified conservation contributions of capital gain property are generally subject to the same limitations and carryover rules as other charitable contributions of capital gain property (i.e., a related deduction would generally be subject to a 30-percent AGI limitation). However, special rules apply to qualified conservation contributions made prior to tax year 2014.

Under the special rules, the 30-percent AGI limitation that applies to contributions of capital gain property does not apply to qualified conservation contributions. Instead, individuals may deduct the fair market value of any qualified conservation contribution, up to 50 percent (100 percent for qualified farmers and ranchers) of AGI reduced by the total deduction for all other allowable charitable contributions. Qualified conservation contributions are not taken into account in determining the amount of other allowable charitable contributions. Individuals are allowed to carry over any qualified conservation contributions that exceed the AGI limitation for up to 15 years.

Can You Deduct The Costs of Having a Foreign Exchange Student Live With You?

Some Alcoa employees who have housed a foreign exchange student may find it interesting to know that this may also be deductible. If you meet the criteria, you can deduct qualifying expenses for a foreign or American exchange student. The student must:

  • Live in your home under a written agreement between you and a charity as part of a program to provide educational opportunities for the student
  • Not be your dependent or relative
  • Be a full-time student in the 12th grade or lower at a U.S. school

You can deduct up to $50 per month for each month the student lives with you for at least 15 days. Qualifying expenses include books, tuition, food, clothing, transportation, medical and dental care, entertainment, and other amounts you actually spent for the well-being of the student. You may not deduct expenses such as home depreciation, lodging, and general household expenses. You also may not deduct expenses if the student is living with you under a mutual exchange program whereby your child will live with a family in a foreign country.

Record Keeping

Cash Contributions

For your cash contributions, regardless of the amount, you must keep either a bank record (e.g., canceled check, credit card statement) or a written communication (receipt or letter) from the charitable organization that shows (1) the name of the charitable organization, (2) the date of the contribution, and (3) the amount of the contribution. If you make a charitable contribution through payroll deduction, you must keep a pay stub, W-2, or other documentation from your employer showing the date and amount of contribution, and a pledge card or other documentation from the qualified organization.

If you claim a deduction for a contribution of $250 or more, you must have an acknowledgment of your contribution from the qualified organization (or certain payroll deduction records). The acknowledgment:

  • Must be written
  • Must include the amount of cash you contributed; whether the organization provided goods or services as a result of your contribution (and an estimate of the value of such goods or services); and a statement that the only benefit you received was an intangible religious benefit, if that was the case
  • Must be in your possession on or before the earlier of the date you file your return for the year you make the contribution, or the due date, including extensions, for filing the return If the acknowledgment does not show the date of the contribution, you will also need a bank record or receipt that shows when the contribution was made.

A Noncash Contribution Under $250

To deduct a noncash contribution under $250, our Alcoa clients must get a receipt from the organization that includes their name, the date, the location of the organization, and a reasonably detailed description of the property. You must also have reliable written records for each item you donated. You are not required to get a written receipt when it is impractical to get one (e.g., at an unattended drop-off site). 

A Noncash Contribution Between $250 And $500

For our Alcoa clients who make a noncash contribution between $250 and $500 will need a receipt like the one required for a noncash contribution under $250, but it must also include details on whether the charity gave you any substantial goods or services for your contribution, as well as a description and good faith estimate of the value of any goods or services you received. You have to get this receipt on or before the earlier of the date you file your return or the due date (including extensions) for filing the return. 

A Noncash Contribution Between $500 And $5,000

These Alcoa employees who make a noncash contribution between $500 and $5,000 will need need a receipt that includes details on whether the charity gave them any substantial goods or services for their contribution and a description and good faith estimate of the value of any goods or services they received. Additionally, your records must include how and when you got the property and how much you paid for it. You must also complete Form 8283, Noncash Charitable Contributions, and attach it to your return.

A Noncash Contribution Over $5,000

These Alcoa clients who make a noncash contribution greater than $5,000 will need a receipt and records like those required for noncash contributions between $500 and $5,000, but will also need a qualified written appraisal of the property from a qualified appraiser. Appraisal fees incurred in determining FMV of donated property are not part of a charitable contribution but can be deducted as a miscellaneous deduction on Schedule A.

Technical Note:  The IRS defines a qualified appraiser as an individual who (1) has earned an appraisal designation from a recognized professional appraisal organization or has otherwise met minimum education and experience requirements, (2) regularly performs appraisals for which he or she receives compensation, (3) can demonstrate verifiable education and experience in valuing the type of property for which the appraisal is being made, (4) has not been prohibited from practicing before the IRS at any time during the three years preceding the appraisal, and (5) is not excluded from being a qualified appraiser under  Treasury regulations.

A Noncash Contribution Over $500,000

For any Alcoa clients planning to claim a deduction of more than $500,000 for a contribution of property, you must attach a qualified appraisal of the property to your return. If you do not attach the appraisal, you cannot deduct your contribution. This does not apply to contributions of cash, inventory, publicly traded stock, or intellectual property.

What are the key eligibility requirements for employees to participate in the Pension Plan for Certain Hourly Employees of Alcoa USA Corp, and how do these requirements change if an employee is hired or rehired after April 1, 2022? This question aims to explore the specific criteria that must be met for participation in the plan, providing clarity on both the general eligibility for new employees and any exceptions for those previously employed.

Eligibility Requirements: Employees are automatically eligible for the Pension Plan for Certain Hourly Employees of Alcoa USA Corp if they were hired or rehired before April 1, 2022, have reached age 21, and completed one year of vesting service. Employees hired or rehired on or after April 1, 2022, are not eligible for this pension plan​(Alcoa USA Corp_Pension …).

How is the vesting service calculated in the context of the Alcoa USA Corp pension plan, and what implications does it have for an employee considering retirement? Understanding the nuances of how vesting service is accrued and the minimum time required to become vested can significantly impact an employee's retirement planning.

Vesting Service Calculation: Vesting service determines when an employee becomes eligible for pension benefits. Employees become vested after completing five years of vesting service, which includes both periods of pension service and non-pension service such as absences not counted towards pension service. This is crucial for retirement planning, as it ensures employees are entitled to pension benefits even if they leave the company after becoming vested​(Alcoa USA Corp_Pension …).

What various retirement options are available to employees of Alcoa USA Corp, and how do these options affect the benefits and payout structure for retiring employees? This question addresses the multiple choices employees face when planning their retirement, including the differences between normal retirement, early retirement, and disability retirement benefits.

Retirement Options: The plan offers normal retirement (at age 65 with five years of vesting service), 60/10 retirement (for employees between 60 and 62 with 10 years of vesting service), and 62/10 retirement (for employees between 62 and 65 with 10 years of vesting service). Disability retirement is also available for those permanently incapacitated with 10 years of vesting service​(Alcoa USA Corp_Pension …).

Can you elaborate on the survivor benefits provided under the Alcoa USA Corp pension plan, and what steps need to be taken to ensure that a spouse or partner is eligible for these benefits upon the employee's retirement? This question seeks to examine the protections and financial security afforded to survivors, alongside the required documentation and choices available to employees.

Survivor Benefits: The pension plan provides automatic surviving spouse coverage unless waived by the employee and spouse. Surviving spouse pensions are payable if the employee dies while actively employed and vested in the plan, after retirement, or while receiving a deferred vested pension. The spouse must submit a written application to claim benefits​(Alcoa USA Corp_Pension …)​(Alcoa USA Corp_Pension …).

What are the specific methodologies used to calculate the regular monthly pension for employees retiring under the Alcoa USA Corp pension plan, and how might these calculations vary based on an employee's age and years of service? This question looks at the complex actuarial factors that influence pension benefits, enhancing employees' understanding of how their retirement income is determined.

Pension Calculation: The regular monthly pension is calculated using a formula based on the employee's pension service and a pension factor in effect when pension service ends. For example, if an employee retires at 65 with 10 years of service, the pension factor might be $57 per year of service. The pension is adjusted based on age and service length​(Alcoa USA Corp_Pension …).

In the event of a disability, how does the Alcoa USA Corp pension plan provide support to affected employees, and what are the requirements to qualify for disability retirement benefits? This question emphasizes the importance of understanding disability provisions, ensuring employees are aware of their rights and the circumstances under which they might qualify for benefits.

Disability Retirement: Employees under 62 who are permanently incapacitated with at least 10 years of vesting service qualify for disability retirement. They must be deemed permanently disabled and unable to return to work in a bargaining unit occupation. A medical examination may be required to confirm ongoing eligibility​(Alcoa USA Corp_Pension …).

What steps must Alcoa USA Corp employees take to apply for retirement benefits, and what timelines are involved in the processing and payout of these benefits? This question delves into the procedural aspects of retirement applications, aiming to prepare potential retirees for the necessary actions they must undertake.

Retirement Application Process: Employees must file a retirement application with the plan administrator before their desired retirement date. The application can be filed up to 90 days before retirement, and the process typically includes receiving benefit explanations and payment elections within this timeframe​(Alcoa USA Corp_Pension …).

How does the Pension Benefit Guaranty Corporation (PBGC) influence the pension benefits received by employees of Alcoa USA Corp, particularly in the context of plan terminations or financial challenges? This question explores the security provided by the PBGC, focusing on its role as a backup for employees’ pension benefits.

Pension Benefit Guaranty Corporation (PBGC): The PBGC provides a safety net for pension benefits in the case of plan termination or financial distress. If the pension plan is underfunded, the PBGC ensures employees still receive pension benefits, although certain limitations may apply​(Alcoa USA Corp_Pension …).

What resources and support does Alcoa USA Corp provide to its employees for understanding their pension plan, and how can employees reach out for assistance regarding their retirement options? This question emphasizes the resources available to employees for further education and guidance, ensuring they know where to turn for help.

Resources for Understanding the Plan: Employees can access information about their pension plan and retirement options through the Alight Worklife™ website or by calling the Alcoa benefits helpline. These resources offer guidance on applying for retirement and understanding plan benefits​(Alcoa USA Corp_Pension …).

How can employees of Alcoa USA Corp contact the benefits management team to learn more about their specific pension plan details, and what channels are available for inquiries? Understanding the communication channels can empower employees to seek the information they need, facilitating a smoother transition into retirement.

Contacting Benefits Management: Employees can reach out to the benefits management team through the Alight Worklife™ website or by phone at 1-844-31ALCOA. This service provides assistance with pension-related inquiries and retirement applications​(Alcoa USA Corp_Pension …).

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
Alcoa Corporation offers a defined benefit pension plan for certain retirees, known as the Alcoa Retirement Plan. In 2022, Alcoa transferred $1 billion in pension obligations to an annuity, maintaining benefit levels for retirees. Eligibility typically requires a combination of years of service and age. Alcoa also offers a 401(k) plan with a company match of up to 6% of employee contributions. Employees can make traditional and Roth contributions, with immediate vesting for all contributions. [Source: Alcoa Benefits Summary, 2022, p. 12]
Restructuring and Leadership Changes: Alcoa announced a significant restructuring of its Executive Leadership Team effective February 1, 2023, to enhance operational excellence, cost management, and innovation. Key changes include William F. Oplinger becoming EVP and Chief Operations Officer, Molly Beerman being appointed as EVP and Chief Financial Officer, and Renato Bacchi taking on added responsibilities as EVP, Chief Strategy & Innovation Officer. These changes aim to align the company's strategy with its vision to reinvent the aluminum industry and integrate corporate strategy with innovative technologies (Source: Alcoa Corporation). Layoffs and Operational Adjustments: Alcoa took a $6 million charge related to layoffs at its Kwinana alumina refinery in Australia, part of a broader restructuring program. This decision was driven by operational setbacks and permitting issues in Australia. Additionally, the company has reduced the number of planned layoffs at its Warrick Operations from an estimated 600 to about 325. This reduction reflects ongoing adjustments to improve efficiency and align with market conditions (Sources: Mining Weekly, Indianapolis Business Journal).
Alcoa provides stock options and RSUs as part of its equity compensation programs. Stock options allow employees to purchase company stock at a fixed price after a vesting period, while RSUs are awarded with a promise of company shares upon meeting certain conditions. In 2022, Alcoa granted both stock options and RSUs to employees, focusing on performance-based RSUs to drive long-term goals. This continued in 2023 and 2024, with broader RSU programs and performance metrics for stock options. Executives and management receive substantial portions of compensation in stock options and RSUs, promoting long-term commitment and performance. [Source: Alcoa Annual Reports 2022-2024, p. 45]
In 2022, Alcoa enhanced its healthcare benefits with expanded mental health support and telemedicine services. By 2023, the company continued to focus on employee wellness with additional preventive care options and wellness initiatives. In 2024, Alcoa's strategy remained centered on integrating innovative health solutions and maintaining comprehensive healthcare coverage. The company emphasized digital health tools and employee support programs to address evolving needs. Alcoa aimed to ensure robust healthcare benefits while managing costs effectively. Their approach reflects a commitment to improving overall employee well-being and satisfaction.
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For more information you can reach the plan administrator for Alcoa at 390 park avenue New York, NY 10022-4608; or by calling them at (412) 315-2900.

https://contracts.justia.com/companies/alcoa-corp-5547/contract/224382/ https://corporate.findlaw.com/contracts/compensation/amendment-to-deferred-compensation-plan-alcoa2.html https://cache.hacontent.com/ybr/R516/16557_ybr_ybrfndt/downloads/PriorAlcoaSalariedAFN.pdf - Page 23 https://cache.hacontent.com/ybr/R516/16557_ybr_ybrfndt/downloads/PlanIIC.pdf - Page 15 https://www.cityofalcoa-tn.gov/DocumentCenter/View/1511/2023-Benefits-Guide?bidId= - Page 30 https://cache.hacontent.com/ybr/R515/16557_ybr_ybrfndt/downloads/11AlcoaSavingsPlan.pdf - Page 42 https://s29.q4cdn.com/844074237/files/doc_news/2022/07/20220808_PensionAnnuity-VFinal.pdf - Page 8 https://www.alcoa.com/global/en/pdf/sustainability/policies-benefits.pdf - Page 5 https://www.alcoa.com/global/en/pdf/corporate-governance/2023-proxy.pdf - Page 10 https://www.alcoa.com/global/en/pdf/2022-annual-report.pdf - Page 50 https://www.alcoa.com/global/en/pdf/employee-handbook-2024.pdf - Page 35 https://www.alcoa.com/global/en/pdf/benefits-summary-2023.pdf - Page 18

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