HFHS Retirement Savings Plan

Transcription

1 HFHS Retirement Savings Plan The information provided below is regarding the HFHS Retirement Savings Plan (RSP) provisions in effect Plan Year January 1, Please keep in mind that this information is provided to summarize important provisions of the HFHS Retirement Savings Plan. If there are differences between the information contained herein and the official plan document, then the official plan document will rule. Also, HFHS always maintains the right to amend, modify or terminate any of its benefit plans, including the RSP, at any time. You can determine if this plan applies to you by reviewing the HFHS participating employer list on the Retirement Program home page on this HR Connect website, by reviewing the RSP website, or by calling the HFHS Retirement Center (J.P. Morgan). (see J.P. Morgan contact information directly below) If you are thinking of leaving or retiring from Henry Ford Health System (HFHS) you should also review the HR Connect web pages indicated at the bottom of this document. HENRY FORD HEALTH SYSTEM (HFHS) RETIREMENT SAVINGS PLAN This plan consists of two accounts: Primary RSP Account Supplemental RSP Account RSP Contact Information: HFHS Retirement Center (J.P. Morgan) o When initially logging on, you will be required to enter your social security number as the default Username and a default Password. Your default password is the last four digits of your social security number and your four-digit birth date (MMDD). You will also be required to register the computer that you are using to access the website. Instructions on how to register your computer will be provided during the login process o At the phone menu prompt say, Retirement Savings to be transferred to J.P. Morgan. After you are connected to the HFHS Retirement Center, press # and 0. Be sure to let the representative know that you are calling about the HFHS RSP, so that he or she can quickly reference the appropriate plan information. o For those that are deaf or hard of hearing, call the TDD number

2 After you have initially set up your username, what if you forget the Username and/or Password? You will need to go online to and select forgot username and password. If you have any difficulty logging on, please contact the HFHS Retirement Center (J.P. Morgan) at and say, Retirement Savings. After you are connect to the HFHS Retirement Center, press # and 0 to connect to a service operator. Be sure to let the representative know that you are calling about the Retirement Savings Plan, so that he or she can quickly reference the appropriate plan information. For those that are deaf or hard of hearing, call the TDD number Note: If you are also a member of the HFHS Pension Plan (AON Hewitt), your user name, password and the website are different than that used for your Retirement Savings Plan (J.P. Morgan). PRIMARY RSP ACCOUNT Are you eligible to participate in the Retirement Savings Plan (RSP) Primary RSP Account and how do you enroll in the account? All employees who work at a participating Henry Ford Health System (HFHS) employer and are not in an employee class of House Officer, Fellow or Student are eligible to participate in the Primary RSP Account. Some HFHS employers, including those employed at Health Alliance Plan and OptimEyes, do not participate in the RSP. Finally, some Henry Ford bargaining unit employees have a union agreement whereby they do not participate in the RSP. If you are an eligible employee, you are automatically enrolled in the Primary RSP Account the first full payroll period that occurs 30 days after you become eligible (i.e., date of hire, date of transfer to an eligible employee class or date of transfer to an eligible employer). You can waive participation, but your election to waive participation must be within your first 30 days of becoming eligible and is a one-time irrevocable election. Once you become a participant, you will remain a participant as long as you are employed at HFHS. If you transfer to a non-participating HFHS employer or a noneligible employee class, your contributions to the Retirement Savings Plan Primary RSP Account will stop. A HFHS Primary RSP Account Acknowledgement form is provided to newly hired employees during their new hire process. Employees who become eligible due to a transfer of employment or employee class change should contact HFHS Employee Services (select on Retirement Savings Plan Contacts). After you fill out and sign the RSP Primary RSP Account Acknowledgement return it to your HR Recruiter or send it to: HFHS-Retirement Attention: RSP Acknowledgement Form

3 1 Ford Place-4E, Detroit, MI How can you check to see if you are enrolled in the Primary RSP Account? 1. Each paycheck, beginning with the first full pay period after 30-days from your eligibility date, you and HFHS will contribute to the Primary RSP Account. Review the deduction columns of your HFHS paycheck. The Primary RSP Account employee contribution amount will appear under the Pre-Tax Employee Deduction column and the Primary RSP Account employer contribution will appear under the Pre-Tax Employer Deduction column of your pay check. If you do not see these contributions on your paycheck by 45 days after your hire date, please call HFHS Employee Services at or 2. Employees who participate in the HFHS Primary RSP Account receive a year end statement approximately 45 days after the end of fourth quarter (fourth quarter ends December 31st). Accounts can be viewed electronically throughout the year at (see below for log on information.) Who contributes to the Primary RSP Account? Each paycheck, regardless of how many hours you work, you and HFHS will contribute a percentage of your base pay to the Primary RSP Account. At the beginning of the year you will begin contributing 2% of your base pay and HFHS will contribute an amount equal to 2.5% of your base pay to the Primary RSP Account. If your base pay (accumulated each pay period) reaches the Integration Level (equal to the Social Security Wage Base and changes each year), then you will begin contributing 4% of your base pay and HFHS will begin contributing an amount equal to 5% of your base pay to the Primary RSP Account. If your base pay reaches the Federal Qualified Plan Compensation Limit (QPCL) during the payroll year, both your contributions and HFHS contributions will stop and start up again the first pay period of the following year. HFHS applies any changes to the Integration Level and the QPCL each year to determine the limits that will be used in determining the employee and employer contributions. For 2014, the Integration Level is $117,000 and the QPCL is $260,000. Summary of Primary RSP Contributions Employee Contribution: 2% of employee s base pay up to the Integration Level, 4% of employee s base pay from the Integration Level to the QPCL. Employer Contribution: an amount equal to 2.5% of the employee's base pay up to the Integration Level, an amount equal to 5% of the employee s base pay from the Integration Level to the QPCL.

4 SUPPLEMENTAL RSP ACCOUNT Are you eligible to participate in the Retirement Savings Plan (RSP) Supplemental RSP Account and how do you enroll in the account? All employees, including those who may have opted-out of the Primary RSP Account, who work at a participating Henry Ford Health System (HFHS) employer and are not in an employee class of House Officer, Fellow or Student are eligible to participate in the Supplemental RSP Account. Some HFHS employers, including Health Alliance Plan and Optimeyes do not participate in the RSP. Finally, some Henry Ford bargaining unit employees have a union agreement whereby they do not participate in the RSP. You do not need to complete any paperwork to enroll in the Supplemental RSP Account because HFHS will automatically enroll you in the account once you meet the eligibility requirements. If you are a newly hired employee, unlike the Primary RSP Account, you must meet an enrollment eligibility requirement for the Supplemental RSP Account in order to qualify as a participant. The enrollment eligibility requirements consist of a) completion of 12 months of employment from your date of hire, and b) earning 1,000 hours of service during that time. Plan entry dates are July 1 and January 1. For a more detailed explanation of when you will fulfill this eligibility requirement, please contact HFHS Employee Services. Who contributes to the Supplemental RSP Account and when do contributions begin? Once you have met the enrollment eligibility requirements discussed above, you will receive an annual employer contribution to the Supplemental RSP Account each HFHS payroll year thereafter that you earn at least 1,000 hours of service. This Supplemental RSP Account contribution is made in late January for your benefit year earned in the prior year. (Please note that the HFHS payroll year is similar to the calendar year, but is not exactly the same with respect to the beginning and end dates. Please see the HFHS RSP Summary Plan Description on this website for a full description of the HFHS payroll year.)

5 Initial Employer Contribution to the Supplemental RSP Account - Example: Hire Date July 1, 2013 Twelve Months Eligible Status and 1,000 Hours-of- Service Completed by June 30, Payroll Year* Maintain Eligible Status and 1,000 Hours-of-Service HFHS Supplemental RSP Contribution for the 2014 Payroll Year (HFHS contributes in Jan 2015) *Not the same as the calendar year. The HFHS Payroll Year begins and ends in December and changes each year. Contact HFHS Employee Services for a full explanation of the HFHS Payroll Year. The only exception to the 1,000 hours of service requirement to be eligible for a contribution is in the final year of employment, but only for those employees who have at least five (5) years of vesting service when they terminate employment. How much does HFHS contribute to the Supplemental RSP Account? The amount of money HFHS contributes to your Supplemental RSP Account at the end of the Plan Year is based on your Years of Vesting Service and your age on December 31 of the prior year Your Compensation (base pay) during the current year. HFHS compares your Age and Vesting Service to the Plan's Supplemental RSP Contribution Rate schedule (below) to determine what percent will be used in calculating the amount of money that will be added to your Supplemental RSP Account. This calculation process occurs at the end of each year that you are employed with HFHS and qualify for a Supplemental RSP Accrual by meeting the 1,000 hours-of-service requirement.

6 Summary - Supplemental RSP Account Employer Contribution: Supplemental RSP contribution (amount HFHS contributes to your Supplemental RSP Account) equals compensation for the current Plan Year times your Supplemental RSP Contribution Rate Supplemental RSP Contribution Rate is determined by your age and years of vesting Service at the end of the prior Plan Year Schedule of Supplemental RSP Contribution Rates: Supplemental RSP Contribution Allocations Plan Year January 1, 2014 Years of Vesting Service as of 12/31 of the Prior Plan Year Age as of 12/31 of the Prior Plan Year 0 to 4 5 to 9 10 to to to or more Under % 1.50% 1.50% 30 to % 1.50% 1.75% 1.75% 2.25% 2.25% 40 to % 1.75% 1.75% 2.25% 2.25% 2.75% 50 to % 1.75% 2.25% 2.25% 2.75% 2.75% 60 or more 1.75% 2.25% 2.25% 2.75% 2.75% 2.75% EXAMPLE: A 41-year old Member with 16 years of Vesting Service (1,000 hours of service in each of 16 years) on December 31st of the previous Plan Year will receive a Supplemental RSP contribution equal to 2.25% of his or her Base Compensation. If his/her Compensation is $51,000.00, HFHS will add a Supplemental RSP contribution in the amount of $1, ($51, x 2.25%) to his/her Supplemental RSP Account at the beginning of the following year.

7 PRIMARY AND SUPPLEMENTAL RSP ACCOUNTS INVESTMENT FUNDS Are you able to select how your contributions and HFHS s contributions are invested in the Plan? Yes, the HFHS Retirement Savings Plan offers fourteen investment funds (see below) and a brokerage account option. Primary RSP Account: When you are enrolled in the Primary RSP Account, your contributions and HFHS's contributions will be invested in the Target Retirement Date fund that is based on your age 65 projected retirement date. A Target Retirement Date fund is an actively managed fund where the investments mix automatically changes from year to year, becoming more conservative as the target date approaches. You can change where your funds are invested to any of the options listed below online or by calling the HFHS Retirement Center (J.P. Morgan) (see below). The HFHS Retirement Center will mail you a Welcome Letter approximately 6 weeks after your hire date. At this time, please log onto the J.P. Morgan website at and follow the steps on page one of this document under contact to access your account. If you have any difficulty logging on, please contact the HFHS Retirement Center (J.P. Morgan) at the number listed on page one of this document. Supplemental RSP Account: If you are enrolled in the Primary RSP Account: When you receive your first HFHS contribution to the Supplemental RSP Account, your Supplemental RSP Account employer contribution will be invested in the same funds and percentages that you selected for your Primary RSP Account. Any fund election changes that you make under the HFHS Retirement Savings Plan applies to both the Primary and Supplemental RSP Accounts. If you are NOT enrolled in the Primary RSP Account: When you receive your first HFHS contribution to the Supplemental RSP Account, your Supplemental RSP Account employer contribution will be invested in the Target Retirement Date fund that is based on your age 65 projected retirement date. Of course, after this initial contribution, you can to log on to the JPM website and change this investment option. Primary and Supplemental RSP accounts offer fourteen (14) fund offerings and a self-directed brokerage account option. Fourteen (14) Fund Offerings Ten (10) Target Retirement Date Funds: SmartRetirement Income Fund - JPMorgan The SmartRetirement Income Fund is designed for investors who have retired and want a professional to determine the asset mix and fund selection in their portfolio. The underlying strategies and products composing the fund are likely to change over time in

8 order to maintain an optimal portfolio construction SmartRetirement 2010 Fund - JPMorgan The 2010 SmartRetirement fund is designed for investors who will retire in or around the year 2010 and want a professional to determine the asset mix and fund selection in their SmartRetirement 2015 Fund - JPMorgan The 2015 SmartRetirement fund is designed for investors who will retire in or around the year 2015 and want a professional to determine the asset mix and fund selection in their SmartRetirement 2020 Fund - JPMorgan The 2020 SmartRetirement fund is designed for investors who will retire in or around the year 2020 and want a professional to determine the asset mix and fund selection in their portfolio. The asset allocation becomes more conservative as one approaches retirement. The underlying strategies and products composing the fund are likely to change over time in order to maintain an optimal portfolio construction. SmartRetirement 2025 Fund - JPMorgan The 2025 SmartRetirement fund is designed for investors who will retire in or around the year 2025 and want a professional to determine the asset mix and fund selection in their SmartRetirement 2030 Fund - JPMorgan The 2030 SmartRetirement fund is designed for investors who will retire in or around the year 2030 and want a professional to determine the asset mix and fund selection in their SmartRetirement 2035 Fund - JPMorgan The 2035 SmartRetirement fund is designed for investors who will retire in or around the year 2035 and want a professional to determine the asset mix and fund selection in their

9 SmartRetirement 2040 Fund - JPMorgan The 2040 SmartRetirement fund is designed for investors who will retire in or around the year 2040 and want a professional to determine the asset mix and fund selection in their SmartRetirement 2045 Fund - JPMorgan The 2045 SmartRetirement fund is designed for investors who will retire in or around the year 2045 and want a professional to determine the asset mix and fund selection in their SmartRetirement 2050 Fund - JPMorgan The 2050 SmartRetirement fund is designed for investors who will retire in or around the year 2050 and want a professional to determine the asset mix and fund selection in their Four (4) Core Funds: Vanguard Prime Money Market Ticker VMRXX The investment seeks to provide current income while maintaining liquidity and a stable share price of $1. The fund invests primarily in high-quality, short-term money market instruments, including certificates of deposit, banker's acceptances, commercial paper and other money market securities. To be considered high quality, a security generally must be rated in one of the two highest credit-quality categories for short-term securities by at least two nationally recognized rating services (or by one, if only one rating service has rated the security). It invests more than 25% of assets in securities issued by companies in the financial services industry. Vanguard Total Bond Market Index-Inst Ticker VBTIX The investment seeks to track the performance of a broad, market-weighted bond index. The fund employs a passive management or indexing investment approach designed to track the performance of the Barclays Capital U.S. Aggregate Float Adjusted Index. It invests by sampling the index, meaning that it holds a broadly diversified collection of securities that, in the aggregate, approximates the full index in terms of key risk factors

10 and other characteristics. The fund invests at least 80% of assets in bonds held in the index. It maintains a dollar-weighted average maturity consistent with that of the index, ranging between 5 and 10 years. Vanguard Total Stock Market Index-Inst Ticker VITSX The investment seeks to track the performance of a benchmark index that measures the investment return of the overall stock market. The fund employs a passive management strategy designed to track the performance of the MSCI US Broad Market Index, which represents 99.5% or more of the total market capitalization of all the U.S. common stocks regularly traded on the New York Stock Exchange and the Nasdaq over-the-counter market. It holds a broadly diversified collection of securities that, in the aggregate, approximates the full index in terms of key characteristics. Vanguard Total International Stock Index-Inst Ticker VTSNX The investment seeks to track the performance of a benchmark index that measures the investment return of stocks issued by companies located in developed and emerging markets, excluding the United States. The fund employs a passive management or indexing investment approach designed to track the performance of the MSCI All Country World ex USA Investable Market Index (MSCI ACWI ex USA IMI Index), a free float-adjusted market capitalization index designed to measure equity market performance of companies located in developed and emerging markets, excluding the United States. Self directed Brokerage account option: A self-directed brokerage account is available through the RSP. This account has an annual maintenance fee and is for more sophisticated and experienced investors who want access to thousands of mutual funds beyond what s available in the standard RSP lineup. Please make sure to log onto the J.P. Morgan website for more information about the RSP investment options. How often can you change your fund investment elections? You can change your fund election as often as daily. However, early redemption fees may apply for certain investment options or other trading restrictions may apply if you change your investment elections too often. You can change your elections by logging onto the J.P. Morgan website or calling the HFHS Retirement Center. (see contact information on the first page of this document) What type of changes can you make to your RSP funds? There are two types of fund reallocations that you can make:

11 1) you can change future investment contributions and/or 2) you can change your current investment balances. PRIMARY AND SUPPLEMENTAL RSP ACCOUNTS BENEFICIARY DESIGNATION How can you elect or change your beneficiary(ies) under the RSP Plan? You may change/add your beneficiary(ies) for the RSP by logging onto the website or calling or by calling the HFHS Retirement Center (J.P. Morgan). (see contact information on page one of this document) Who should you contact if you have questions regarding how the HFHS Retirement Savings Plan works or to review your Retirement Savings Plan account balance, vesting and all other information related to your personal account? Contact the HFHS Retirement Center (J.P. Morgan), either by logging onto the website or by calling them directly. The website and telephone number are located at the top of this document. Review the Pension Plan information at this website under HR Connect. Navigation instructions to HR Connect pages related to the HFHS retirement plans can be found at the end of this document. When are you eligible to take the money out of the Plan, how much of the account balance are you entitled to and what type of payment options are available? Click on Retirement Savings Plan/Distribution located on the right hand column of this web page or contact HFHS Retirement Center (J.P. Morgan) website or telephone number. How can I change my mailing address for my Retirement Savings Plan and Pension Plan? If you have an incorrect address on file or you have moved, you can change your address via Employee Self Service at (select HR Connect, select Sign In to HR, select Employee Self Service) or by contacting HFHS Employee Services at HFHS sends a file to the Retirement Savings Plan and Pension Plan record keeper each pay period. Your address update will be included on this file. For those that are deaf or hard of hearing, call the TDD number

12 YOU MAY ALSO WANT TO REVIEW THE FOLLOWING INFORMATION LO CATED ON THIS WEBSITE UNDER HR CONNECT: Retirement - provides information to help you determine what HFHS retirement programs you are a member of. To review this information at HR Connect select: BENEFITS>RETIREMENT. Once you determine what programs you can participate in, you can review further information about each program by following the navigational instructions for each program outlined below. RSP Payment/Distribution - provides information regarding when you can take a distribution, how much of your account you will receive and how the distribution process works. Just click on the link located at the top right hand side of this page. HFHS Retirement Savings Plan SPD - Provides a more detailed overview of the Retirement Savings Plan features and rules. Just click on the link located at the top right hand side of this page. Pension Plan - provides information regarding how to view your account, how and when you can process a distribution from your account, who to contact for questions about the plan and naming your beneficiary(ies) for the plan. To review this information at HR Connect select: BENEFITS>RETIREMENT>PENSION PLAN. Pension Plan Payments/Distribution provides information regarding when you can take a distribution and how the distribution process works. To review this information at HR Connect select: BENEFITS>RETIREMENT>PENSION PLAN>PENSION PLAN PAYMENTS/DISTRIBUTION. HFHS Pension Plan Summary Plan Description (SPD) - Provides a more detailed overview of the Pension Plan features and rules. To review this information at HR Connect select: BENEFITS>RETIREMENT>HFHS PENSION PLAN>HFHS PENSION PLAN SUMMARY PLAN DESCRIPTION (SPD). 403(b) Provides information regarding enrolling in the program, taking a distribution from the program and who to contact for program questions. To review this information on HR Connect select: BENEFITS>RETIREMENT>HFHS 403(b) ENROLLMENT. Leaving HFHS provides information regarding what happens to your flexible benefits (i.e., health/vision, dental, life insurance, flex spending accounts, etc.) after you leave

13 employment. To review this information at HR Connect select: BENEFITS. COBRA provides information on how you can continue coverage under your current flexible benefits providers for medical/vision, dental, flex benefits, etc. after you terminate or retire from HFHS. To review this information at HR Connect select: BENEFITS. Retiree Medical provides information regarding eligibility requirements for enrollment, how to enroll in the plan, insurance providers available under the plan, cost for coverage under the plan, and what medical/vision services are covered under each insurance provider, along with other valuable plan information. To review this information at HR Connect select: BENEFITS. Rev.2014May6 Copyright 2012