Thread regarding Fidelity Investments layoffs

It often feels like people assume we’re all operating from the same conditions, regardless of location. But places like Albuquerque aren’t always part of the same benefit landscape... things like retirement health coverage don’t necessarily apply the same way. On top of that, there are tax considerations around Social Security in New Mexico that add another layer to the picture. Meanwhile, the costs and obligations still land locally, even when the broader support structures don’t fully follow through.

ACA + Retiree Health Account (RHA) if you've served 10+ years. You have to be age 55+ to access the funds, but combined with ACA subsidies on a Bronze plan (keep your MAGI below the 400% FPL threshold). That is where the sweet spot is. I'm 54, my wife is 60. I've saved enough outside of my 401k (regular brokerage acct.) and my wife will have enough Roth at the end of the year in order for us to both fully retire and live off of a 6 figure spending pattern forever, while qualifying for ACA subsidies. My RHA will cover any catastrophic expenses before age 65 (Medicare age). $151 is what we'll spend per month for health insurance after the subsidy. Awesome!

@pd there are no private sector jobs with retiree healthcare unless it's a union environment - and if you do find one and put in your hours to reach that milestone - they take it away without grandfathering the su-kers who stayed around. I know this from first hand experience

@af it can’t be used to reimburse medical expenses until you reach age 55. I was 53 when I told Fido to pound sand after 25 1/2 years. I will have access to that account later this year when I turn 55.

You can stay on Fidelity's health insurance after you retire, but the costs are astronomical. You would be better off looking on the outside. I wish Fidelity would offer retiree healthcare. 17% of large companies offer this benefit which is a great way to bridge your healthcare until age 65. Seems like HR just wants to focus on the younger generation.

It’s all in Fidelity Central. There’s a whole area for Retirement.

@a5 the information on fod central does have the option to keep Fidelity insurance (if 55+) but you're obviously paying for the coverage.

Yes 55 and 10 yrs service for full vest, took the last VBO, medical premiums auto paid to your bank account each month. Other reimbursements eye, dental, copays. Had close to 50k in mine when I left. Has been a very nice benefit to have, did not appreciate how much I would use it when it first stated at Fido. Over the last year they have brought the RHRP back into fidelity umbrella it had been a outsourced to a 3rd party.

Unless Fidelity made a plan change since the last VBO, you had to be 55 to receive the health reimbursement account. It was one of the provisions that caused frustration in employees under age 55 but eligible for the VBO because they did not receive that money. Check the plan docs to verify the current eligibility requirements.

I like the RHRP benefit- just wish it would not show up on my balance on my investment accounts. It could be a way for Fidelity to incentivize employees to remain until vested by having them see the balance but I don't like that it's added to my overall balance since I'm not vested this money (credits) are not truly mine. Wish this was on the Netbenefits side. I'm curious since it's credits to hear from those that are vested and using to pay for premiums or other medical expenses how the process and ease of use are they?

My understanding is also that as long as you have 10 years of service you don't lose RHRP when you leave the company. But I do believe you have to be 55 before you can start withdrawing it for medical expenses. I would check the retirement docs on fidcentral for the specifics. The 55 age might not be right, that might only be the case if you retire at from Fidelity 55 and maybe a different age if you leave prior to that (similar to 401k funds and rule of 55). The docs will spell that out. Either way you don't forfeit it as long as you have 10 years of service.

I do wish the company would offer the retirement package or some variation of it to long tenured employees who are under 55 but meet some other criteria (like the rule of 70 or something similar). 55 was a requirement for the first VBO but not the second which was the rule of 70. Now the retirement package is 55 but there are some of us that are not quite 55 but over the rule of rule 70 that would gladly exit sooner if some type of package was offered. It would probably save the company some money rather than having them hang around for several more years. I'm not saying something as big or expensive or disruptive as a VBO (which would be great but unlikely), but at least some type of package similar to the current retirement package which is nowhere near as generous

RHRP is yours after 10 years of service. When you use that credit may have some limitations.

@a5 Thanks....so the 70k is have in the RHRP isn't mine unless i retire at 55 or later?

the perk of retiring from fidelity is that you don't have to work at fidelity anymore

No, you cannot stay on Fidelity’s health insurance when you retire unless you took one of the previously offered VBO packages. (Then you paid the higher employer rate not the much lower employee rate but could remain on the plan until Medicare eligible; however, if you ever leave the plan, you cannot return.)

If you retire at age 55 or later with a least 10 years of service, you do receive whatever you have accumulated in company contributions to the health reimbursement account to use for eligible medical expenses.