VOLUNTARY 403(b) PLAN
Federal law allows employees of certain non-profit organizations to receive special income tax treatment under Section 403(b) of the U.S. Internal Revenue Code. This favorable treatment is sometimes referred to as a tax-sheltered annuity (TSA) or a tax-deferred annuity (TDA). Under such a plan you may shelter $15,500 in 2008. All employees are eligible to participate. You are automatically enrolled at 3% of your gross pay unless you opt out by completing a Salary Reduction Agreement form. The deduction will begin with your first paycheck of the month following your 30 day anniversary. You may change or stop the amount of your contribution at any time. If you are contributing the IRS maximum and are at least age 49 as of January 1, you are also eligible to contribute an additional $5,000 under the Age 50 Catch-up provision. Once you satisfy the eligibility requirements, the first 4% you contribute will receive an employer match. The employer match is described below.
RETIREMENT PARTNERSHIP PLAN
The Retirement Partnership Plan consists of a Core Account and an Employer Matching Account. All EMHS employees who are 21 or older are eligible to participate in the Core Account and the Employer Match once eligibility requirements have been met. To be eligible you must complete your first anniversary and receive pay for a minimum of 1000 hours. Once those two requirements have been met, you will enter the Plan on January 1 or July 1, whichever comes first. Employees begin accruing vesting service at age 18. You will receive a vesting credit for every calendar year in which you have 1000 hours of service.
CORE ACCOUNT
EMHS will make annual contributions to a participating employee's Core Account on December 31st each year as follows:
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At the end of the plan year, if the total of your age and your vesting service is: |
The company will contribute this amount to your Core Account based on your W-2 earnings: |
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Under 41 |
3% |
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41 – 50 |
4% |
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51 – 60 |
5% |
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61 – 70 |
6% |
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71 – 80 |
7% |
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81 or greater |
8% |
Employees become fully vested in the plan after completing three vesting years of service.
EMPLOYER MATCH ACCOUNT:
For those eligible employees who elect to participate, you can contribute up to 4% of your gross pay and receive a 50% match from your employer (maximum of 2%). The employee determines how these funds are invested among the specific mutual funds currently available through Fidelity Investments and described in the Investment Options Brochure. Employees become fully vested in the Match after completing three full vesting years.
Full details are contained in the Summary Plan Description, available from the HR-Benefits Office. |
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