| If I elect to open
a Schwab PCRA account, what is the process of depositing ongoing contributions? |
(All Trinity Health)
Your ongoing Retirement Savings Plan contributions must first
be contributed to the Diversified fund options you have elected.
In order to have these funds transferred to your PCRA account
you must contact Diversified via the toll free number at 1-800-394-5240,
or the website at https://retirementprogram.trinity-health.org, and transfer your funds from
Diversified, to the Schwab money market account. You will
then need to contact Schwab via their toll free number at
888-393-7272 or website at www.schwab.com
in order to have your funds transferred from the Schwab money
market account to a mutual fund offered through the Schwab
PCRA account. These steps are summarized below:
Step 1: Contributions are transferred to Diversified
via payroll deductions.
Step 2: Employee calls Diversified to transfer the
funds to Schwab Money Market (3 day settlement).
Step 3: Employee calls Schwab and requests that the
funds be moved from the Money Market to the specific funds
(i.e. XYZ Fund, etc.)
An initial investment of $1,000 is required to establish
the Schwab PCRA account. The subsequent minimum transfer amounts
from the Diversified account to the Schwab PCRA is $250 in
total.
Some mutual funds have initial minimum investment requirements.
|
| If I have established
a Schwab PCRA account, why do my contributions need to go to Diversified before
being transferred to my Schwab account? |
(All Trinity Health)
Since Diversified is the service provider for the Trinity Health Retirement Savings
Plan, all payroll deduction contributions must first flow through Diversified.
Diversified needs all the plan contribution information for IRS reporting and
testing purposes and to be able to incorporate this information on employees'
quarterly statements. Also, from an administrative perspective, there is currently
not a mechanism whereby employee contributions can be sent from the payroll system
directly to both Diversified and the Schwab PCRA account.
The Schwab account is an option which is made available
for the convenience of employees who feel comfortable
with mutual fund investing and who want additional flexibility
to invest in various fund options. For the vast majority
of employees the seventeen (17) core fund options offered
by the Retirement Savings Plan will provide the level
of diversification desired. |
| How often can I transfer
from my Diversified account to my Schwab PCRA account? |
You can transfer your funds
as often as you like, however, some of the mutual fund companies require a minimum
initial contribution to start investing in their account. Contact Schwab directly
at 1-888-393-7272 to determine if a fund option you are interested in requires
a minimum initial deposit.
Once the initial investment is made, the minimum for subsequent investments
is $250. |
| Can I take a loan out directly from
my Schwab account? |
No, if you want to borrow funds from
your Schwab account, they must be transferred back to your Diversified account. |
| If a person currently has an account
with Charles Schwab, will the $50 fee for setting up a Personal Choice Retirement
Account be waived? |
No, the $50 will
not be waived. The Schwab Personal Choice Retirement Account
with Diversified is part of the Trinity Retirement Savings
Plan and has no relation to individual accounts that are
through Schwab. The fee is not a set up fee. It is an
annual fee charged to the Diversified account for maintaining
the Schwab PCRA account. The fee is charged in January
subsequent to the plan year-end, i.e. the 2009 fee will
be charged in January 2010. The $50 fee is a Diversified
fee that covers the administration and record-keeping
of the Schwab account. |
| Is the Schwab personal choice account
available under the After-tax Savings Plan? |
Yes. |
| When can I change my personal investment
options through the 403(b)/401(k) Retirement Savings Program? |
At any time. |
| Will my Retirement Savings Plan
account ever experience investment loss? |
There are no guarantees that your investment
will not experience a loss. In general, you should try to keep a good mix of investment
funds that is right for you so your long-term investment will be as secure as
possible. Please seek the advice of a financial advisor or other trusted consultant
when choosing your investment options. |
| What is the maximum employer matching
contribution? |
Trinity Health makes a dollar-for-dollar
employer matching contribution on the first $500 you contribute. Then, Trinity
Health matches any additional contributions with $.50 for every $1.00 you contribute,
up to the maximum employer matching contribution or $500, if greater. Click here
to use the match calculator. |
| Why do different locations
receive different matches if this is supposed to be a "common" benefits
program? |
While the Pension Plan provisions are the same
for all Trinity Health, it was important to provide local flexibility for the
amount of the employer matching contribution to meet local market competitive
conditions and to be able to attract and retain employees. |
