Who will receive your life insurance, retirement savings and Health Savings Account balance upon your death? How these assets are distributed is entirely up to you, which is why it’s so important that you name your beneficiaries for each of your accounts and keep them up to date as life changes. Getting married or divorced, having a baby, or losing a loved one can change what you want to happen to your benefits.

Your beneficiary is the person (or people) or trust that you name to receive a benefit when you die. You can name a single person, or you can have your benefits divided among multiple people. You can elect different beneficiaries for each account. You also have the option to choose secondary or contingent beneficiaries — people who will receive your benefits if your primary beneficiary dies — or you can name a trust as your primary or secondary beneficiary.

To ensure your benefits go to the intended people, visit the websites below and update your beneficiary information:

• Prudential: Sandia-provided life insurance
• Sandia Extras: voluntary life insurance
• Fidelity: 401(k) plan
• Optum: Health Savings Account (HSA)

And don’t forget to update beneficiary information for any life insurance policies and retirement and investment accounts you have outside of Sandia.

Medical expenses could be one of your biggest financial outlays during retirement. It’s good to understand what your options will be so that you can prepare.

If you’re not eligible for a pension from Sandia

If you’re not eligible for a pension from Sandia and you retire before you’re eligible for Medicare, you have the following coverage options:

• Continue your Sandia coverage through the Consolidated Omnibus Budget Reconciliation Act (COBRA). COBRA coverage typically lasts from 18 to 36 months.
• Purchase you own plan through the health insurance marketplace.
• Have your spouse or domestic partner add you to their employer-sponsored plan coverage. As a reminder, Sandia does not offer coverage for domestic partners.

If you have an HSA, you can use that account to pay for eligible medical expenses when you retire, including COBRA premiums and the costs of a plan you purchase in the marketplace.

If you’re eligible for a pension and retiree medical from Sandia

For pension and retiree health-eligible participants, Sandia offers both pre-Medicare coverage and Medicare coverage options. You must meet certain age and service requirements to be eligible for coverage. Here’s an overview of what’s offered:

Pre-Medicare coverage

If you’re younger than 65 when you retire from Sandia, you may be eligible for Pre-Medicare retiree medical and prescription drug coverage. You have two medical plan designs to choose from: the Sandia High Deductible Health Plan (Sandia HDHP) and the Sandia Total Health PPO Plan (Total Health PPO). Both plans offer comprehensive medical and prescription drug coverage, no-cost in-network preventive care and the same provider networks. The Total Health PPO plan comes with a Sandia-funded, tax-free Health Reimbursement Account (HRA) that you can use to help cover out-of-pocket healthcare expenses.

For more on pre-Medicare coverage, visit snlretireebenefits.com. For plan details, review the 2025 Sandia Post-Employment Health Benefits Enrollment Guide.

Medicare coverage

Medicare-eligible participants can choose one of the Sandia-sponsored Medicare Advantage plans or the Medicare HRA program (formerly YSA). You can elect only one option, not both. To be eligible for either of these options, you must be enrolled in both Medicare Part A and Part B and continue to pay any applicable Medicare premiums.

Medicare-eligible employees can elect to participate in a Sandia-sponsored Medicare Advantage plan and have a choice between the:

• UnitedHealthcare Group Medicare Advantage PPO Plan (available nationwide); or
• Kaiser Permanente Group Senior Advantage HMO plan (available only in northern California).

The Medicare HRA is a Sandia-funded account that Medicare-eligible participants can use to pay for an Individual Medicare Plan that’s purchased on the Medicare exchange through Via Benefits. You can learn more about this option at snlretireebenefits.com.

Your costs for coverage depend on when you retire, your years of service with Sandia and your coverage level.

Learn more

To learn more about Sandia retiree medical coverage:

• Visit snlretireebenefits.com.
• Call the Sandia Post-Employment Benefits Center at 833-726-3421 (833-SANDIA1), Monday–Friday 6 a.m. to 6 p.m. MT (5 a.m. to 5 p.m. PT).

To learn more about Medicare and the coverage available when you become Medicare eligible, visit Medicare.gov.

The IRS allows individuals age 50 and older to make “catch-up” contributions to their 401(k). You can contribute $7,500 above the annual IRS contribution limit ($23,500 in 2025).

Why make catch-up contributions? Adding money to your 401(k) increases your interest-earning balance. The financial impact of compounded interest on catch-up contributions can help you retire when and how you want to. This is especially important if you’ve only started to prepare for retirement when you’re in your 50s.

Your catch-up contributions will also reduce your taxable income. Beginning in 2026, if your annual base salary (in the previous calendar year) is higher than $145,000, your catch-up contributions will be made on an after-tax basis to a designated Roth account.

Your 401(k) contributions, along with the match from Sandia, cannot exceed $70,000 in 2025.