403(b) Retirement Savings Plan
How the Plan Works
Overview | Eligibility | How The Plan Works | Payment Options | 401(k)
If you are eligible to participate in the 403(b) Retirement Savings Plan, you
may begin contributing to your account as of your date of hire. Your contributions
are matched, up to a maximum match amount which is a percentage of your compensation.
You are always 100 percent vested in your own contributions. You must meet the
vesting service requirement of three years to be eligible for your employer matching
contributions.
While in the 403 (b) Retirement Savings Plan, you will receive a quarterly
statement from Diversified Investment Advisors. This statement will show the benefit
available to you as well as provide information on the performance of your investment
options.
More On the 403(b) Retirement Savings Plan
Employee Contributions
Employer Matching Contributions
Vesting
Investment Options
Receiving Your Benefit
Loans and Withdrawals
Transferring Funds
Employee Contributions
You can contribute from 1 - 75 percent of your compensation
into the 403(b) Retirement Savings Plan, provided your contribution doesn't exceed
the IRS
Limit. Additionally, employees fifty years and older may be eligible for special
"catch-up" contributions (see this link
for more information.) Your contributions are deducted from your paycheck, before
taxes are taken out - providing you with additional savings.
Examples
Susan earns $35,000 and contributes 5%, or $1,750 per year to the 403(b) Retirement
Savings Plan. This would equal a $67 contribution each pay period.
$35,000 x 5% = $1,750
$1,750 / 26 pay periods = $67
Andy earns $50,000 and wants to contribute 23% to the 403(b) Retirement Savings
Plan. His contribution would equal $11,500. However, the maximum he can contribute
per year is $11,000 or $423 per pay period. Therefore, Andy would be able to contribute
a maximum of 22% of his salary.
$50,000 x 22% = $11,000
$11,000 / 26 = $423 |
Back to the top
Employer Matching
Contributions
PLEASE NOTE: THE 403(b)/401(k) EMPLOYER MATCHING CONTRIBUTIONS HAVE BEEN TEMPORARILY SUSPENDED EFFECTIVE JULY 1, 2009. THE INFORMATION BELOW RELATED TO EMPLOYER MATCHING CONTRIBUTIONS REFLECT THE PROVISIONS OF THE EMPLOYER MATCHING CONTRIBUTION PRIOR TO THE SUSPENSION. CLICK HERE TO OBTAIN IMPORTANT INFORMATION REGARDING THE TEMPORARY SUSPENSION.
To receive the employer matching contributions, you must be contributing to
the 403(b) Retirement Savings Plan. Any amount you contribute up to $500 will
be matched dollar-for-dollar. If you contribute more than $500 to the Plan, Trinity
Health will contribute an additional match of $.50 for every $1.00 you contribute
up to a maximum match amount. Click here to use the
match calculator.
Prior to July 1, 2009, all employer matching contributions were credited to the Pension Plan Match
Account every quarter. The employer matching contribution is credited to the Pension
Plan to provide you with a guaranteed fixed rate of return. The fixed rate of
return helps to balance the more volatile rates of your 403(b) investment options,
and is equal to the 5-year US Treasury bill for the month of November of the preceding
year.
If eligible, effective July 1, 2009, all employer matching contributions are credited to the 403(b) Plan within the 403(b) Match Account. The 403(b) Matching Contribution Account is subject to the earnings and losses associated with the investment fund(s) the contributions are invested.
Example 1
Tony earns $25,000 a year and currently contributes 1% of pay to his 403(b) Retirement
Savings Plan account. As such, Trinity Health would contribute the following:
Tony's voluntary contribution
$25,000 x 1% = $250 per year
(about $9 per pay period)
Trinity Health's matching contribution (dollar-for-dollar)
$250 x 100% = $250 per year
Total account contribution
$250 + $250 = $500 per year
Tony just doubled his money! However, if Tony saved 2% of pay or $500, he would
receive the maximum dollar-for-dollar employer matching contribution of $500.
This would increase Tony's total account contribution to $1,000 per year (Tony's
$500 + $500 match). |
| Example 2
Carrie earns $40,000 a year and is eligible for a maximum match of 3% of compensation
or $1200. Her 403(b) Retirement Savings Plan contribution is 10% of pay. Her account
contribution would be:
Carrie's voluntary contribution
$40,000 x 10% = $4,000 per year
(about $153 per pay period)
Trinity Health's matching contribution (dollar-for-dollar)
Dollar-for-dollar on first $500 plus 50% on balance up to a maximum of 3% of Carrie's
compensation.
$40,000 x 3% = $1,200 maximum match
$500 x 100% =$500
$1,400x 50% = $700 per year
Total account contribution
$4,000 + $500 + $700 = $5,200 per year
Carrie receives Trinity Health's maximum matching contribution. Not only does
she receive the dollar-for-dollar match, she also receives the additional match
of $.50 for every $1.00, up to the maximum of 3% of compensation. |
Back to the top
Vesting
When vested in your 403(b) Retirement Savings Plan Match Account, you can take
your account balance with you when you retire or terminate. You are always 100
percent vested in the amount you contribute. However, you must complete three
years of vesting service to become vested
in any employer matching contributions.
Back to the top
Investment Options
Through the 403(b) Retirement Savings Plan you have a variety of investment
options to choose from. You also have access to a Schwab
self-directed brokerage account to purchase various mutual funds. Your matching
contributions under the 403(b) plan will be invested in the Pension Plan Match
Account and will earn a fixed rate of interest. The interest rate is set each
year and will be the 5 year U.S. Treasury Bill Constant Maturity Rate for the
preceeding November.
Prior to July 1, 2009, your matching contributions under the 403(b) plan were invested in the Pension Plan Match Account and will earn a fixed rate of interest. The interest rate is set each year and will be the 5 year U.S. Treasury Bill Constant Maturity Rate for the preceding November.
Effective July 1, 2009, all employer matching contributions are credited to the 403(b) Plan within the 403(b) Match Account. The 403(b) Matching Contribution Account is subject to the earnings and losses associated with the investment fund(s) the contributions are invested.
Back to the top
Receiving Your Benefit
Upon retirement or termination of employment, you will need to complete a distribution
form to request payment of your benefit. Contact Diversified Investment Advisors
at 800.394.5240 for further information.
Back to the top
Loans and Withdrawals
Your 403(b) Retirement Savings Plan is intended for your retirement. However,
there may be times when you need to access your account through a loan or a withdrawal,
provided you meet Plan requirements. Keep in mind that this will impact your total
retirement income (even if you pay a loan back) because you miss out on compounding
interest, dividends, and potential capital appreciation. Contact Diversified Investment
Advisors at 800.394.5240 for further information.
Back to the top
Transferring Funds
You may roll over, on a tax-free basis, a qualified plan account from another
employer. Contact Diversified Investment Advisors at 800.394.5240 for further
information.
Back to the top
|
