Bristol Myers Squibb Retirement Benefits Explained: What Employees Nearing Retirement Should Know

For many Bristol Myers Squibb (BMS) employees, understanding your company benefits can be just as important as managing investments. Between the BMS Savings Plan, deferred compensation opportunities, retiree healthcare, and various stock compensation programs, there are numerous financial planning decisions that can significantly impact your retirement. Whether you're five years from retirement or simply looking to maximize your benefits today, here's a closer look at some of the most valuable components of the BMS benefits package and the questions employees most frequently ask.

Key Takeaways:

• BMS matches 100% of the first 7% of eligible pay in its 401(k).
• The BMS Pension Plan ended on February 1, 2019, and remaining benefits moved to Athene.
• The BEP lets eligible higher earners defer up to 75% of salary and bonus, but enrollment locks 401(k) elections for the year.
• RSUs may fully vest at retirement if age and service requirements are met; PSUs and MSUs have separate performance rules.
• The 2026 BMS FSA limit is $3,400, with no carryover or grace period.

What is the BMS Savings Plan?

The BMS Savings Plan is Bristol Myers Squibb’s 401(k) plan, and it is one of the most valuable benefits in the package. BMS matches 100% of the first 7% of eligible pay that employees contribute.

Contribution options:

• Traditional pre-tax contributions
• Roth 401(k) contributions
• After-tax contributions
• In-plan Roth conversions

How does the automatic spillover work?

Once you reach the annual IRS limit for pre-tax or Roth contributions, additional contributions automatically continue as after-tax contributions. This automatic spillover lets highly compensated employees keep saving past the standard limit without changing their elections mid-year.

What investment options are available?

• Target date funds
• Equity funds
• Fixed income funds
• Managed accounts through Edelman Financial Engines Advisors LLC
• Fidelity BrokerageLink (with a $2,500 minimum)

No more than 25% of your account balance may be invested in BMS stock. The cap is designed to limit concentration risk in a single company.

What happened to the BMS pension plan?

The BMS Pension Plan was terminated effective February 1, 2019. Participants had a one-time opportunity to choose either a lump-sum payout or an annuity. For participants who did not make an election, vested accrued benefits were transferred to Athene. Existing pension annuity payments were also transferred to Athene. Many long-tenured employees still have pension benefits from earlier service. If that includes you, confirming your benefit amount and payment options with Athene is an important early step in retirement planning.

BMS Benefit Equalization Plan (BEP)

The Benefit Equalization Plan (BEP) Savings Plan is a deferred compensation plan for higher-income employees. Eligible participants can defer up to 75% of base salary and up to 75% of bonus. The BEP provides the same company match and fixed contributions available in the 401(k). Eligibility for the BEP is generally based on either earning more than the IRS compensation limit or reaching IRS contribution limits during the prior year.

Why BEP enrollment locks in your 401(k) elections

This is one of the most overlooked BEP rules. During the annual BEP enrollment period, participants must also set their 401(k) elections for the coming year. Those 401(k) elections stay fixed for the year, even if you decide not to defer any pay into the BEP.

When can you take BEP distributions?

The BEP generally does not let you choose distribution timing unless you qualify for retirement, typically at age 65 or at age 55 with at least 10 years of service and a plan balance of at least $10,000. If eligible, you may elect 2 to 15 annual installments. Otherwise, the account is typically paid as a lump sum after separation from service, which can create a large one-year tax bill.

What health benefits does BMS offer?

BMS offers three primary medical plans: High-Deductible Health Plan (HDHP) with a Health Savings Account (HSA), Preferred Provider Organization (PPO) plan or Exclusive Provider Organization (EPO) plan.

BMS HSA contributions and wellness incentives

There is no minimum balance required before you can invest HSA assets, so the account can work as a long-term savings vehicle from the start.

BMS flexible spending account (FSA) rules for 2026

 Because unused funds are forfeited, estimate your expenses carefully before you elect.

How do BMS RSUs, PSUs and MSUs work?

For many BMS employees, equity compensation is one of the largest sources of wealth, and each award type follows different rules.

Restricted stock units (RSUs)

RSUs are available to Senior Specialists, Supervisors, Managers, Directors and Executive Directors. They are generally granted each year on March 10 and commonly vest over four years. Employees who leave voluntarily before vesting typically forfeit unvested RSUs. Key features include:

• Automatic tax withholding when RSU shares vest
• A FICA calculation each October
• Full vesting at retirement if age and service requirements are met

Performance share units (PSUs)

PSUs are typically reserved for Vice Presidents and above, and the maximum payout can reach 200% of target. Performance is measured over three years using three weighted metrics:

• 25% cumulative revenue growth
• 40% cumulative non-GAAP operating margin
• 35% relative total shareholder return (rTSR)

Market share units (MSUs)

MSUs are also awarded primarily to Vice Presidents and above and are tied directly to BMS stock performance over a four-year period. Payouts start at an 80% threshold and can reach up to 225% of target. For all three award types, retirement eligibility and certain severance scenarios can significantly change how and when your awards vest. Map your vesting schedule before choosing a retirement date.

Are you financially ready to retire from BMS?

The most important retirement question is not about investments alone. It’s whether your BMS retirement benefits, Social Security, healthcare, savings, deferred compensation and equity awards work together to support the life you want in retirement. Before you set a date, make sure you understand:

• Your 401(k) and rollover options
• Any legacy pension benefits held with Athene
• Your BEP distribution schedule
• Healthcare coverage until Medicare eligibility
• How your RSUs, PSUs and MSUs vest at retirement
• Your Social Security claiming strategy
• Tax planning opportunities across all of the above

Having strong benefits is only half the equation. The other half is knowing how to coordinate them into one retirement plan.

Talk with a Quotient Wealth Partners advisor

Have you calculated how much annual retirement income your BMS benefits, Social Security and personal investments could generate? For many employees approaching retirement, answering that question is the first step toward knowing whether they are ready for the next chapter. Our retirement and benefits planning process is designed to help corporate employees see how every piece of their package fits together. See how we can help. Schedule a complimentary consultation with a Quotient advisor today.