Your 2023 benefit updates

What you need to know

BAE Systems is committed to offering benefits that address the diverse needs of our people and their families. As your life changes, your benefits can change with you to meet your evolving needs.

Keep in mind that you cannot make changes to your benefits during the year unless you experience a qualified life event, such as getting married or welcoming a child to your family.

Spending Account contribution limits increasing for 2023

The IRS is increasing the amount you can contribute to an HSA for 2023. This means that if you enrolled in HSA Standard or HSA Select, you can contribute more to your account in 2023. And, if you are or will be age 55 during the year, you can contribute an additional $1,000 next year.

Plus, don’t forget that if you are eligible to contribute to an HSA, BAE Systems will contribute to your HSA, even if you do not. These company contributions are yours to keep even if you leave BAE Systems, and no adjustments to the company contributions are allowed during a calendar year for qualified life events or job transfers. Also keep in mind that company contributions reduce the maximum amount you may contribute each year, as total annual contributions are limited by the IRS.

Take a few minutes to learn more about all the benefits of an HSA.

If you are enrolled in HSA Standard or HSA Select, here’s how the math works for 2023:

  Individual coverage Family coverage
Your 2023 maximum contribution1 Under age 55: $3,100

Age 55+: $4,100
Under age 55: $6,250

Age 55+: $7,250
BAE Systems contribution2 $750 $1,500
2023 IRS maximum (this includes BAE Systems contribution) Under age 55: $3,850

Age 55+: $4,850
Under age 55: $7,750

Age 55+: $8,750

1HSA contributions and earnings are not subject to federal taxes; however, a few states treat the contributions as taxable income. Those employees residing in California and New Jersey will have applicable state taxes withheld from their contributions each pay period. Employer contributions to the HSA are also subject to state taxes in these two states. The HSA employer contribution for employees residing in California or New Jersey will be taxed in full within three months of the contribution being made. Note: If you are married and your spouse is also enrolled in an HSA, your combined HSA contributions may not exceed IRS limits.

2The full amount of BAE Systems contribution will be deposited in your HSA within two to three weeks of your coverage effective date or enrollment date, whichever is later.

Can you have an HSA and FSA at the same time?

Yes; however, your FSA becomes a Limited Purpose Health Care Flexible Spending Account that can only be used for eligible dental and vision expense reimbursement. This limitation applies to those who are enrolled in the HSA Standard or HSA Select, and who are eligible to contribute to an HSA for their medical expenses. Under IRS rules, when paired with an HSA, medical and prescription drug expenses may not be reimbursed from a Limited Purpose FSA. Learn more by reviewing the comparison chart for HSAs and FSAs.

A note about Health Reimbursement Accounts (HRAs)

A small number of employees also have an HRA from prior years. These remaining HRA funds may only be used for reimbursement of eligible dental and vision expenses incurred between January 1, 2022, and December 31, 2023. During this sunset period, Cigna is managing the HRA reimbursement process for these eligible dental and vision expenses. You have one year from the date of service to request reimbursement, and all 2023 claims must be filed no later than March 31, 2024. Any remaining HRA funds will be forfeited after this date.

Flexible Spending Account contribution limits increasing

Contribute up to $2,850, in a Health Care Flexible Spending Account in 2023. Plan carefully, because FSAs are use-it-or-lose-it accounts, and restrictions may apply depending on your medical plan. You must spend your FSA dollars by December 31, 2023, and you will have until April 30, 2024, to submit your 2023 claims for reimbursement.

Be thoughtful about the care you and your family will need next year. If it makes sense for your family, you may contribute up to $5,000 to your Dependent Care FSA ($2,500 if your spouse or domestic partner contributes to one as well). Make sure your dependents are still eligible for care in 2023; for example, you can no longer use your Dependent Care FSA funds for a child once they turn age 13, unless they are disabled.

Remember, FSA contributions do not carry over and must be elected during Annual Enrollment each year if you want to participate.

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Take care of your loved ones with the right amount of life insurance

BAE Systems provides basic employee life insurance to all employees and offers you the opportunity to elect additional, optional employee life insurance. During Annual Enrollment in 2022, we provided a special one-time offer that allowed you to elect up to two times (2x) pay in Supplemental Employee Life Insurance without providing Evidence of Insurability (EOI). That meant you could get life insurance coverage up to an amount that is twice your annual base pay plus the Basic Life Insurance provided by BAE Systems without having to answer health questions or complete a qualifying physical.

New for 2023, children up to age 26 are eligible for child life insurance coverage. This age limit update for children is consistent with the age limit for children under our medical, dental, and vision plans. Please note that if any of your dependents were dropped from child life insurance coverage when they turned 18, you would have needed to add them back to the plan during Annual Enrollment.

Learn more about your 2023 benefits with this Employee Briefing.

View the slides and transcript

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Keep your beneficiaries up to date

Many of our benefit plans offer a payout to your loved ones in the event of your death. But you must have your beneficiary details on file in order for the benefits to be distributed according to your wishes.

  • Life insurance and 401(k) Savings Plan beneficiaries: On BenefitsNavigator, select the Health & Insurance menu entry at the top, and a Health & Insurance Summary page will load. Under the Take Action menu, click on Manage Beneficiaries to view your Beneficiary Summary. Tab through your insurance and 401(k) Savings Plan listings, and use the buttons to update your beneficiaries for one or more of these benefit entries.
  • HSA beneficiaries
    • If you have an HSA today, from the BenefitsNavigator homepage, select Reimbursement Accounts in the top menu. In the HSA section, click on Health Savings Account, then scroll down to the Health Savings Account Summary section, and click on View Beneficiaries. Once the page loads, you can add or update your HSA beneficiaries.
    • If you will be new to an HSA plan next year, an account will be opened for you. Once your account has been opened, remember to designate your beneficiary(ies).

You can update your beneficiary information at any time. Be sure to keep your beneficiaries up to date, particularly if you experience a significant life event such as a divorce, birth of a child, or death of a loved one. It only takes a few minutes to get peace of mind that your wishes will be followed if the unthinkable happens.

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During Benefit Center business hours, chat with a benefits representative while on BenefitsNavigator (click on the “Chat” link in the website footer under “Get in Touch”), or call the BAE Systems Benefit Center at 1-888-900-4223, 8 a.m. – 8 p.m. Eastern time, Monday through Friday.

Si usted necesita información en español, por favor llame a la Benefit Center a 1-888-900-4223.


For those whose benefits are governed by a Collective Bargaining Agreement (CBA): As provided by your CBA, certain benefits may differ from those described on the Benefits website, so some benefits and provisions may not apply to you. If your CBA was being negotiated when this material was prepared, your benefit options may be different from those described here. You will be notified of any benefit changes and future enrollment opportunities.

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