LKQ Employees: Navigating the Transition from Pension Plans to 401(k) Options for a Comfortable Retirement

Social Security

Identifying optimal ways to claim Social Security is essential to your retirement income planning. For many retirees, understanding and claiming Social Security can be difficult. Social Security benefits are not designed to be the sole source of your retirement income, but rather a part of your overall withdrawal strategy. Knowing the foundation of Social Security and using this knowledge to your ad-vantage can help you claim your maximum benefit.

It is your responsibility to enroll in Medicare parts A and B when you first become eligible — and you must stay enrolled to have coverage for Medicare-eligible expenses. This applies to your Medicare eligible dependents as well.

You should know how your retiree medical plan choices or Medicare eligibility impact your plan options. Before you retire, contact the U.S. Social Security Administration directly at (800) 772-1213, call your local Social Security Office or visit ssa.gov. They can help determine your eligibility, get you and/or your eligible dependents enrolled in Medicare or provide you with other government program information.

Next Step:

Check the status of your Social Security benefits before you retire. Contact the U.S. Social Security Administration by calling 800-772-1213. You can also call your local Social Security office or visit ssa.gov.

Medicare

Articles you may find interesting:

If you or your dependents are currently or will become eligible for Medicare after you leave LKQ, Medicare generally becomes the primary coverage for you or any of your dependents as soon as the individual becomes eligible for Medicare. This will affect your company-provided medical benefits. You and your Medicare-eligible dependents must enroll in Medicare Parts A and B when you first become eligible. Medical and MH/SA benefits payable under the company-sponsored plan will be reduced by the amounts Medicare Parts A and B would have paid whether you actually enroll in them or not. For details on coordination of benefits, refer to your summary plan description (SPD)(2).

If you or your eligible dependent do not enroll in Medicare Parts A and B, your provider can bill you for the amounts that are not paid by Medicare or your LKQ medical plan, making your out-of-pocket expenses significantly higher.

According to the Employee Benefit Research Institute (EBRI), Medicare will only cover about 60% of an individual’s medical expenses. This means a 65-year-old couple with prescription-drug expenses at the midpoint of their peers will need $259,000 in savings to have a 90% chance of covering their healthcare expenses. A single male will need $124,000 and a single female, thanks to her longer life expectancy, will need $140,000.

Next Step:

Get Medicare prescription drug information by visiting medicare.gov.

Check your SPD Summary(2) to see if you're eligilble to enroll in Medicare Parts A and B (2). If you become Medicare eligible for reasons other than age, you must contact the LKQ Benefits Center about your status.

What type of retirement savings plan does LKQ offer to its employees?

LKQ offers a 401(k) retirement savings plan to help employees save for their future.

How can employees at LKQ enroll in the 401(k) plan?

Employees at LKQ can enroll in the 401(k) plan through the company’s HR portal or by contacting the HR department for assistance.

Does LKQ provide any matching contributions to the 401(k) plan?

Yes, LKQ offers a matching contribution to the 401(k) plan, which helps employees boost their retirement savings.

What is the vesting schedule for LKQ's 401(k) matching contributions?

The vesting schedule for LKQ's matching contributions typically follows a standard schedule, which employees can review in the plan documents.

Are there any fees associated with LKQ's 401(k) plan?

Yes, there may be administrative fees associated with LKQ's 401(k) plan, and employees can find detailed information in the plan's summary.

Can employees at LKQ take loans against their 401(k) savings?

Yes, LKQ allows employees to take loans against their 401(k) savings, subject to certain terms and conditions outlined in the plan.

What investment options are available in LKQ’s 401(k) plan?

LKQ’s 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.

How often can LKQ employees change their 401(k) contribution amounts?

Employees at LKQ can change their 401(k) contribution amounts at any time, typically through the HR portal or by contacting HR.

Is there a minimum contribution requirement for LKQ's 401(k) plan?

Yes, LKQ may have a minimum contribution requirement, which employees can find detailed information about in the plan documents.

What is the maximum contribution limit for LKQ's 401(k) plan?

The maximum contribution limit for LKQ's 401(k) plan is in accordance with IRS guidelines, which are updated annually.

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

In 2023 and 2024, LKQ Corporation has undergone a significant restructuring effort aimed at streamlining operations across its global footprint. The company implemented a Global Restructuring Plan to enhance operational efficiency, divesting from non-strategic markets and optimizing its core businesses. This restructuring aligns with the broader market pressures of increased competition and fluctuating economic conditions, particularly in the automotive aftermarket industry (GuruFocus) (GlobeNewswire). Additionally, LKQ acquired Uni-Select in 2024, marking a strategic move to expand its geographical reach and customer base, particularly in Europe (GlobeNewswire). Given the current economic uncertainties and tax implications, addressing the restructuring news is crucial for investors and stakeholders. It highlights how companies like LKQ are adapting to market demands, enhancing their financial health, and positioning themselves for future growth. LKQ Corporation Alongside restructuring, LKQ has maintained a focus on employee benefits and pensions. The company's 401(k) plan allows employees to make pre-tax and Roth contributions, with a gradual vesting schedule based on years of service (LKQ Europe). However, LKQ has faced challenges with maintaining its financial standing due to external pressures such as economic instability in its operational regions (North America, Europe, Taiwan). This instability could affect LKQ’s ability to maintain competitive employee benefits in the future (GlobeNewswire). The global economic environment, changing tax laws, and the company's ongoing restructuring make it vital to review these changes as they may impact long-term employee financial security and influence future corporate strategies. Investors and employees alike should be informed of these developments, as they directly impact the company’s workforce and operational capabilities.

LKQ Corporation provides stock options and Restricted Stock Units (RSUs) as part of its compensation packages, designed to reward employees and align their interests with shareholders. The specific details of these benefits have evolved over the years, with notable updates in 2022, 2023, and 2024. For stock options, LKQ grants options to purchase company shares at a predetermined price, often the market value at the time of the grant. These options typically vest over a period, meaning employees must remain with the company for a certain number of years before they can exercise their options. LKQ uses the acronym "SO" to refer to these stock options. RSUs at LKQ are typically granted to senior management and key employees. RSUs represent a promise to deliver shares of LKQ stock once certain conditions, such as continued employment over a vesting period, are met. Unlike stock options, RSUs do not require the employee to pay an exercise price. The acronym "RSU" is commonly used within LKQ to refer to these units. The 2022 and 2023 annual reports indicate that these stock-based compensation plans are key to retaining top talent. For 2024, LKQ continues to expand its RSU offerings to more employees as part of its commitment to competitive compensation. Employees eligible for these benefits are typically those in management roles or those who have been identified as critical to the company's strategic initiatives.

LKQ Corporation offers its employees a comprehensive range of health benefits, which includes medical, dental, and vision coverage. The company's health plans are designed with a focus on affordability and preventive care, offering options for Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs). LKQ’s plans also emphasize wellness initiatives, such as telehealth services, to ensure employees have access to care when needed. In recent years, the company has incorporated high-deductible health plans (HDHPs) to manage costs, alongside the traditional Preferred Provider Organization (PPO) plans. Employees have expressed that while the coverage is solid, out-of-pocket costs for some services, especially under the HDHPs, can be significant. LKQ has made a concerted effort to balance premium costs with coverage comprehensiveness, which has been well-received by its workforce. The importance of monitoring LKQ's health benefits closely is magnified by the ongoing economic and political shifts in healthcare regulations and taxation policies. With increasing healthcare costs and the potential for changes in healthcare law, companies like LKQ are under pressure to continuously adapt their benefits offerings. In the context of rising inflation and economic uncertainty, maintaining affordable yet comprehensive coverage becomes critical for both the employees and the company. Additionally, as LKQ continues to expand and integrate acquisitions, such as Uni-Select, it must ensure that its healthcare offerings remain competitive across its diverse workforce. Addressing these benefits within this volatile economic and political landscape is essential for retaining talent and managing operational costs (Investor Relations) (Nasdaq).

Additional Articles

Check Out Articles for LKQ employees

For more information you can reach the plan administrator for LKQ at , ; or by calling them at .

https://www.lkqcorp.com/blog/news/lkq-corporation-completes-acquisition-of-uni-select-inc/ https://www.gurufocus.com/news/2482586/decoding-lkq-corp-lkq-a-strategic-swot-insight https://www.globenewswire.com/en/news-release/2023/04/27/2656026/8053/en/LKQ-Corporation-Announces-Results-for-First-Quarter-2023.html https://lkqeurope.com/article/company/lkq-reinvents-its-corporate-identity-reflect-its-role-automotive-aftermarket-leader https://www.formalu.com/portals/sec/companies/1065696/financials/defined-benefit-plan-pension-plan-with-projected-benefit-obligation-in-excess-of-plan-assets-plan-assets https://simpleqdro.com/retirement-plans/LKQ-CORPORATION-EMPLOYEES-RETIREMENT-PLAN/ https://lkqeurope.com/article/company/lkq-corporation-announces-results-first-quarter-2024 https://www.kiplinger.com/ https://www.futureplan.com/ https://www.emparion.com/ https://www.kiplinger.com/retirement/cash-balance-pension-plan-options https://www.dol.gov/agencies/ebsa/about-ebsa/our-activities/resource-center/fact-sheets/cash-balance-pension-plans https://www.investopedia.com/terms/c/cashbalancepensionplan.asp https://www.sec.gov/Archives/edgar/data/1065696/000119312509041181/dex1011.htm https://www.hicapitalize.com/find-my-401k/lkq/ https://investor.lkqcorp.com/financials/annual-reports/default.aspx https://stockanalysis.com/stocks/lkq/revenue/ https://investor.lkqcorp.com/financials/annual-reports/default.aspx https://www.nasdaq.com/press-release/lkq-corporation-announces-results-for-fourth-quarter-and-full-year-2023-2024-02-22 https://goodcalculators.com/401k-calculator/ https://www.retirementliving.com/retirement-calculator https://www.wealthenhancement.com/s/tools-calculators https://www.stordahlcap.com/insights/understanding-net-unrealized-appreciation-nua-and-its-tax-benefits https://www.thinkadvisor.com/2024/05/20/understanding-net-unrealized-appreciation/ https://www.kitces.com/blog/net-unrealized-appreciation-irs-rules-nua-from-401k-and-esop-plans/ https://www.kitces.com/blog/net-unrealized-appreciation-irs-rules-nua-from-401k-and-esop-plans/ https://corient.com/insights/articles/net-unrealized-appreciation-strategy-an-undiscovered-pearl https://www.stordahlcap.com/insights/understanding-net-unrealized-appreciation-nua-and-its-tax-benefits https://www.kiplinger.com/taxes/tax-planning/604591/net-unrealized-appreciation-a-hidden-tax-strategy https://www.thinkadvisor.com/2024/05/20/understanding-net-unrealized-appreciation/ https://www.kiplinger.com/taxes/tax-planning/604591/net-unrealized-appreciation-a-hidden-tax-strategy https://www.raymondjames.com/ https://www.odysseyadvisors.com/ https://www.milliman.com/en/ https://www.lkqcorp.com/ https://www.autobpa.com/ https://www.globenewswire.com/ https://www.thelayoff.com/lkq#google_vignette https://www.sec.gov/Archives/edgar/data/1065696/000106569623000008/lkq-ex1029_20221231.htm https://eqvista.com/updates-irs-section-non-qualified-deferred-payment/ https://eqvista.com/updates-irs-section-non-qualified-deferred-payment/