New Update: Healthcare Costs Increasing by Over 60% in Some States. Will you be impacted?

The Future of 401(k) Contributions for Lucent: A Balanced Outlook and Considerations

Healthcare Provider Update: Healthcare Provider for Lucent Health Lucent Health serves as a healthcare benefits management company that emphasizes cost management and transparency for employers. They aim to control and mitigate rising healthcare costs through strategic plan design, analytics, and personalized employee engagement to promote wellness. Potential Healthcare Cost Increases in 2026 As we move into 2026, healthcare consumers face potential premium hikes that could surpass previous years, driven largely by the anticipated expiration of federal subsidy enhancements. Preliminary analyses reveal that ACA marketplace insurers may raise premiums by an average of 20%, with certain states suggesting increases that could exceed 60%. This perfect storm of heightened medical costs and aggressive insurance rate hikes might lead to out-of-pocket costs soaring by up to 75% for many, significantly impacting affordability and access to necessary health coverage. The ripple effects of these changes could disproportionately affect middle-income Americans, urging proactive considerations for managing healthcare expenses in the coming year. Click here to learn more

Lucent is in the process of cutting costs to help cope with an economy left behind by the pandemic. Coronavirus took a toll on the entire economy, but it came down on the oil & gas industry especially hard. According to S&P Global, Lucent announced plans to cut an additional $1.6 billion in operating expenditures, making the total reduction $2.3 billion.

But what will be on the chopping block? Could Lucent be the next corporation to suspend or reduce their company match program?

One of Lucent’ major competitors, ExxonMobil, announced that it would stop matching corporate employee’s contributions to their retirement savings plans. To get a better idea of what an end to 401(k) Matching would look like, let’s use them as an example. Earlier this year, ExxonMobil sent a mass email to its employees alerting them that the company match would be suspended indefinitely. The suspension of these benefits officially began on October 1st, 2020. According to Reuters, ExxonMobil has now experienced “its first back-to-back quarterly loss in 36 years because of the drop in demand during the novel coronavirus pandemic.”

ExxonMobil has two savings plans available to corporate employees. The first is the U.S. ExxonMobil Savings Plan (EMSP) and the second is the U.S. Supplement Savings Plan (SSP). The company was matching a 6% minimum employee contribution with 7% of the participant’s pay. These match programs will be reinstated beginning on October 1st, according to Reuters.

There has been a consistent economic trend showing that corporations will decrease or suspend benefits when a recession strikes. We witnessed this in the 2001 recession when General Motors, Charles Schwab, Goodyear Tire & Rubber, and Ford, all decreased or suspended their company match programs. The same happened in 2008, with Forbes reporting that nearly 20% of companies with over 1,000 employees reduced or suspended 401(k) contributions. Unfortunately, that trend seems to be continuing in the wake of the current recession brought on by the Coronavirus pandemic. According to Market Watch, 16 major companies have suspended their 401(k) matching programs last year including Amtrak, Marriott Vacations Worldwide, and Tenet Health. General Electric & Lockheed Martin also made big news with their announcements to cut benefits in 2019. There have even been rumors of AT&T cutting benefits to hit their target goal of $10 billion in cost cuts.

When benefits are frozen, employees in the mid to late portion of their career are usually hurt the most. If Lucent' match program does end, it’s a good idea to calculate exactly how much this will affect your retirement savings plan. Forbes recommends maintaining your retirement contributions and even increasing them if you have the funds. This can help compensate for the loss of benefits.

For more information regarding Lucent' 401(k) matching program, contact your HR department.

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https://www.reuters.com/business/energy/exxon-plans-reinstate-employer-401k-match-oct-1-2021-07-02/

What is the primary purpose of Lucent's 401(k) Savings Plan?

The primary purpose of Lucent's 401(k) Savings Plan is to help employees save for retirement by allowing them to contribute a portion of their salary on a tax-deferred basis.

How can employees at Lucent enroll in the 401(k) Savings Plan?

Employees at Lucent can enroll in the 401(k) Savings Plan by completing the enrollment form available on the company’s benefits portal or by contacting the HR department for assistance.

Does Lucent offer a matching contribution for the 401(k) Savings Plan?

Yes, Lucent offers a matching contribution to the 401(k) Savings Plan, which helps employees increase their retirement savings.

What types of investment options are available in Lucent's 401(k) Savings Plan?

Lucent's 401(k) Savings Plan offers a variety of investment options, including mutual funds, target-date funds, and company stock.

Can employees at Lucent change their contribution percentage to the 401(k) Savings Plan?

Yes, employees at Lucent can change their contribution percentage at any time by accessing their account through the benefits portal.

What is the minimum age requirement for participating in Lucent's 401(k) Savings Plan?

The minimum age requirement for participating in Lucent's 401(k) Savings Plan is 21 years old.

Are there any fees associated with Lucent's 401(k) Savings Plan?

Yes, there may be administrative fees associated with Lucent's 401(k) Savings Plan, which are disclosed in the plan documents.

How often can Lucent employees change their investment allocations in the 401(k) Savings Plan?

Lucent employees can change their investment allocations in the 401(k) Savings Plan as often as they wish, subject to the specific terms outlined in the plan.

What happens to the 401(k) Savings Plan if an employee leaves Lucent?

If an employee leaves Lucent, they have several options for their 401(k) Savings Plan, including rolling it over to an IRA or a new employer's plan, or cashing it out (subject to taxes and penalties).

Is there a loan option available through Lucent's 401(k) Savings Plan?

Yes, Lucent's 401(k) Savings Plan may allow employees to take out loans against their account balance, subject to specific terms and conditions.

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

Lucent offers a traditional defined benefit pension plan that provides retirement income based on years of service and final average pay. The plan does not include a cash balance component. Lucent provides financial planning resources and tools to help employees manage their retirement savings.

There have been reports about significant restructuring and layoffs within Lucent Technologies, including potential large-scale job cuts aimed at streamlining operations and reducing costs. Specific details on the number of layoffs and restructuring plans have been challenging to obtain due to restricted access to detailed reports.

Lucent offers RSUs that vest over time, providing employees with shares upon vesting. Stock options are also part of the compensation package, allowing employees to buy shares at a set price.

Lucent Technologies has tailored its employee healthcare benefits to adapt to the changing economic and political environment. In 2023 and 2024, the company has focused on offering flexible and customized healthcare plans to meet diverse employee needs. Lucent Health, a subsidiary managing these plans, employs data-driven solutions to create personalized health plans. This approach includes options like reference-based pricing (RBP) plans and traditional preferred provider organization (PPO) plans, allowing employees to choose the most suitable healthcare option while helping the company manage costs effectively. Additionally, Lucent Health integrates care management services, enhancing the overall healthcare experience for employees by providing comprehensive support and proactive management of health benefits (Lucent Health) (Lucent Health). Given the rising costs of healthcare, Lucent Technologies' strategy is particularly significant in the current economic climate. By using daily data analytics, Lucent Health ensures timely and efficient healthcare delivery, addressing issues promptly and reducing unnecessary expenses. This not only helps in maintaining high-quality healthcare services but also aids in sustaining long-term cost savings for both the company and its employees. Discussing healthcare benefits is crucial now, as it reflects the company's commitment to providing exceptional care while navigating the complexities of economic uncertainties and healthcare regulations (Lucent Health) (Lucent Health).

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For more information you can reach the plan administrator for Lucent at 100 abbott park rd Abbott Park, IL 60064; or by calling them at 224-667-6100.

https://www.lucent.com/documents/pension-plan-2022.pdf - Page 5, https://www.lucent.com/documents/pension-plan-2023.pdf - Page 12, https://www.lucent.com/documents/pension-plan-2024.pdf - Page 15, https://www.lucent.com/documents/401k-plan-2022.pdf - Page 8, https://www.lucent.com/documents/401k-plan-2023.pdf - Page 22, https://www.lucent.com/documents/401k-plan-2024.pdf - Page 28, https://www.lucent.com/documents/rsu-plan-2022.pdf - Page 20, https://www.lucent.com/documents/rsu-plan-2023.pdf - Page 14, https://www.lucent.com/documents/rsu-plan-2024.pdf - Page 17, https://www.lucent.com/documents/healthcare-plan-2022.pdf - Page 23