What’s New for 2024?
These are the changes we communicated during open enrollment, effective January 1, 2024.
We are pleased to report that there will be minimal changes to the benefits we currently offer. More good news:
- There are no changes to employee contributions for our health care plans for 2024—your rates for coverage will stay the same.
- Premiums for employee-paid long-term disability (LTD) coverage will decrease by approximately 10% in 2024. With employee-paid LTD coverage, any benefit you would receive from the plan would not be taxable. You may elect to have Seagate pay your premiums; however, keep in mind that any potential benefits you may receive from the plan will be taxable to you.
- The IRS has increased contribution limits for Health Savings Accounts and is projected to increase contribution limits for Flexible Spending Accounts for 2024. See details below under Updates and Reminders.
Other changes for 2024
- Due to IRS requirements, the annual deductible for the High Deductible Health Plan 1 (HDHP 1) will increase from $1,500 to $1,600 for Employee Only coverage and from $3,000 to $3,200 for Employee + Dependent(s) coverage.
- Please have your dependents’ Social Security numbers handy when you enroll this year. They are required for all new and currently covered dependents.
- The basic and supplemental short-term disability (STD) rate for 2024 is increasing as a result of an increase in claims. Seagate will cover the cost of your basic STD coverage. However, potential benefits that you may receive from the plan will be taxable to you. To receive non-taxable basic STD benefits, you may opt to pay the cost of coverage yourself. If you opt to pay for your own basic STD coverage, the rate is increasing from 0.0012 to 0.004 of pay. This means that an employee with an annual salary of $100,000 will see a change in their biweekly basic STD contribution from $4.62 to $15.38 in 2024.
Updates and reminders
Health Savings Account (HSA): Save more in 2024
For 2024, the IRS raised the annual HSA contribution limit by $300 for individual medical coverage and by $550 for family coverage. This means that, in addition to the contribution Seagate makes to your HSA (which isn’t changing), you can save a bit more, including catch-up contributions if you are or will be 55 or older in 2024. You must enroll to contribute to your HSA in 2024.
Important note for Medicare enrollees: Per IRS regulations, Medicare enrollees may not contribute to an HSA. If you enroll in Medicare, you must discontinue all HSA contributions (including the Seagate contribution) by waiving coverage in the enrollment system on the U.S. Benefits Enrollment/Changes site. Please call HR Central for assistance. For more information, please refer to the Medicare and the Health Savings Account document.
2024 IRS Health Savings Account contribution limits Anthem HDHP 1
|IRS Maximum for 2024||Seagate Contributes||You May Contribute|
* If you are age 55 or older, you may contribute an additional $1,000 to your HSA, for total contributions of $4,450 (for individual coverage) or $7,900 (for family coverage).
2024 IRS Health Savings Account contribution limits Anthem HDHP 2
|IRS Maximum for 2024||Seagate Contributes||You May Contribute|
* If you are age 55 or older, you may contribute an additional $1,000 to your HSA, for total contributions of $4,800 (for individual coverage) or $8,600 (for family coverage).
Flexible Spending Accounts (FSAs) and Commuter Benefits for 2024
A Flexible Spending Account (FSA) lets you pay for qualified health care and dependent day care expenses with pre-tax dollars, which reduces your taxable income. You must enroll if you want to participate in an FSA in 2024. Your current 2023 FSA election will not carry over to the new plan year.
- Health Care FSA: If you are not contributing to a Health Savings Account (including the Seagate contribution), you can contribute up to $3,050* for 2024.
- Limited Purpose FSA: If you are contributing to a Health Savings Account, you can contribute up to $3,050* for 2024. This FSA may be used only for qualified dental and vision expenses, so you can reserve your HSA funds to meet your annual medical deductible.
- Dependent Day Care FSA: You can contribute up to $5,000 for 2024 to pay for day care for dependent children up to age 13 or elder care expenses for your IRS-qualified dependents.
Commuter Benefits: With commuter benefits you can use pre-tax payroll deductions to cover mass transit and parking expenses. You can contribute up to $300* per month per account for 2024.
* The IRS is projected to increase FSA limits from $3,050 to $3,200 for 2024. Parking and transit limits are expected to increase from $300 to $315. After the IRS announces the updated limits, you will have an opportunity to increase your 2024 FSA and/or Commuter Benefits elections.
Important FSA and Commuter Benefits considerations
- Review the Flexible Spending Accounts and Commuter Benefits FAQs for details about these accounts.
- If you have a remaining balance in a Health Care or Limited Purpose FSA at the end of 2023, up to $610 will be carried over to your 2024 account with HSA Bank. You’ll have until March 31, 2024, to submit your 2023 claims to HSA Bank.
- If you have unused funds in your 2023 FSA at the end of the year, and you do not elect an FSA for 2024, HSA Bank will set up a 2024 carryover account for you. Please note: You will not be eligible to contribute to a carryover account.
- FSA carryover does not apply to the Dependent Day Care FSA. Per the IRS, the Dependent Day Care FSA remains a use-it-or-lose-it account.
- Your full 2023 commuter benefit account balance will carry over to 2024 if you elect to participate for 2024.
- You can elect to participate in Commuter Benefits from month to month, and your commuter election will remain in effect until you change it.
Consider increasing employee supplemental life insurance coverage
Open Enrollment is your once-a-year opportunity to elect or increase employee supplemental life insurance coverage without experiencing a qualifying life event or completing a medical questionnaire. You may elect or increase coverage by 1 times your annual salary up to 3 times your annual salary or $500,000, whichever is less. Coverage amounts above 3 times annual salary will require proof of good health.
Coming soon: dependent eligibility audit
As you enroll in your 2024 coverage, please take the time to confirm that the dependents you are covering under a Seagate health plan meet the eligibility requirements for coverage. Starting early next year, we will be conducting an audit of covered dependents and may ask you to provide supporting documentation to verify their eligibility, such as a marriage license, birth certificate, and/or Social Security number. Thank you in advance for your cooperation!
What You Need to Do
- Review your current 2023 benefits (medical, dental, vision, life and accident insurance options) and consider which will best meet your needs in 2024. Your current 2023 benefits elections will display under Your benefits at a glance on the home page of the enrollment platform (see instructions below for accessing U.S. Benefits Enrollment/Changes).
- Review 2024 per-paycheck costs.
- If you want to contribute to a Health Savings Account, Limited Purpose FSA, Dependent Day Care FSA, Health Care FSA, or Commuter Benefits account, elect your contributions for 2024. Your 2023 elections will not carry into 2024.
- Enroll or disenroll in the ARAG legal plans through YouDecide.
- Add or remove dependent coverage, as necessary. NEW THIS YEAR: Social Security numbers are required for all new dependents added to your coverage. Also, you will not be able to complete your enrollment if any of your currently covered dependents are missing an SSN.
- Designate or update beneficiaries for your life and accident insurance.