Your 2024 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.

A few enhancements for 2024

  • Beginning in 2024, acupuncture is covered under our Cigna medical plans, allowing 12 visits per year per covered individual.
  • We will be introducing a new diabetes management program (the CVS Medication-Nutrition Management Program) that will offer personalized nutrition coaching and medication support. Employees and family members with diabetes will receive materials about this new program in 2024.
  • The VSP EasyOptions plan allowance for eyeglass frames is increasing to $250, and the allowance for contact lenses is increasing to $200.

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Savings and spending account contribution limits

Health Savings Account (HSA)

The IRS increased the amount you can contribute to an HSA for 2024. This means that if you enrolled in HSA Standard or HSA Select, you can contribute more to your account in 2024. And, if you are or will be age 55 during the year, you can contribute an additional $1,000 in 2024.

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 2024:

 Individual coverageFamily coverage
Your 2024 maximum contribution1Under age 55: $3,400

Age 55+: $4,400
Under age 55: $6,800

Age 55+: $7,800
BAE Systems contribution2$750$1,500
2024 IRS maximum (this includes BAE Systems contribution)Under age 55: $4,150

Age 55+: $5,150
Under age 55: $8,300

Age 55+: $9,300

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 the BAE Systems contribution will be deposited in your HSA within two to three weeks of your coverage effective date (January 1) or your enrollment date if you are a new hire before October 1.

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

Yes. If you are enrolled in HSA Standard or HSA Select, you can have an HSA for eligible health care expenses and still contribute to a Limited Purpose Health Care Flexible Spending Account to help you pay for dental and vision services. Under IRS rules, when paired with an HSA, medical or prescription drug expenses may not be reimbursed from a Limited Purpose FSA. Learn more by reviewing the comparison chart for HSAs and FSAs.

Flexible Spending Accounts (FSAs)

Contribute up to $3,050 in a Health Care Flexible Spending Account in 2024. Plan carefully, because FSAs are use-it-or-lose-it accounts, and restrictions may apply depending on your medical plan. You must incur your eligible FSA expenses by December 31, 2024, and you will have until April 30, 2025, to submit your 2024 claims for reimbursement.

Contribute up to $5,000 to a 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 2024; for example, you can no longer use your Dependent Care FSA funds for a child once they turn age 13, unless they are disabled. To comply with annual IRS testing requirements, BAE Systems sets lower contribution limits for higher-paid employees.

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

Looking for ways to stretch your benefits dollars?

Get to know more about your pretax account options with this important Benefits 101 guide.

Learn more

A note about Health Reimbursement Accounts (HRAs)

A small number of employees also had an HRA balance dating back to 2021 and prior years. If you had a Limited Purpose HRA balance, you needed to use it for eligible dental and vision expenses by December 31, 2023. All 2023 reimbursement claims must be filed no later than March 30, 2024, or your balance will be forfeited. Visit the Health Reimbursement Account (HRA) page for details.

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Voluntary supplemental benefits

Your medical plan insurance is your primary source for comprehensive coverage for the care you need to stay healthy or to treat an injury or illness. But, when you’re sick or injured, you may also need help with other expenses, like child care, groceries, everyday household bills, or even the associated costs of travel for medical treatments. That's where voluntary supplemental benefits can step in.

These voluntary benefits can offer an added layer of financial protection for unplanned accidents and illnesses. Since you pay 100% of the cost of these supplemental benefits on an after-tax basis, benefit payments are not treated as taxable income. In addition, there are no in-network restrictions.

For 2024, we are offering three supplemental coverage options that can be paired with your medical plan (whether that is a BAE Systems medical plan or coverage under a spouse or partner’s plan). Visit the Voluntary Supplemental benefits page for details.

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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: 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, and use the buttons to update your beneficiaries.

Health Savings Account (HSA):

  • 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 for 2024, an account will be opened for you. Once your account has been opened, remember to designate your beneficiary(ies).

401(k) Savings Plan: With the transition of our plan to Empower, access our MyRetirement website, where you can update your beneficiaries, adjust your 401(k) contribution rate, and review your investment strategy.

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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Learn more about your 2024 benefits with this Employee Briefing.

View the slides and transcript

Questions?

Questions about your medical, dental or vision plans, life insurance, or HSA details? 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.

Questions about your 401(k) Savings Plan? Call the BAE Systems Retirement Center at 1 800 622 5533. Representatives are available Monday through Friday from 8 a.m. – 10 p.m. ET and Saturdays from 9 a.m. – 5:30 p.m. ET.

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

Important!

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 this website, so some benefits and provisions described above may not apply to you.

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