Fund Changes Effective May 29, 2015
Banner Health will replace all Fidelity Freedom Funds with JPMorgan SmartRetirement® Funds, effective May 29, 2015. This change will also make the JPMorgan SmartRetirement® Funds the new default funds for individuals who enroll in the plans but do not specify how their deferrals should be invested. This change does not impact former UAHN employees, who are not yet participating in the Banner retirement plans.
Banner Health’s 401(k) and 403(b) plans offer eligible employees the opportunity to set aside money in a pre-tax retirement plan without a waiting period.
Banner has partnered with Fidelity Investments as our provider of investment options, and recordkeeping services for the retirement plans. Fidelity is the nation's largest mutual fund company with $973 billion under management for more than 16 million investors.
- Maximum Salary Deferral
- Immediately Vested
- Enroll and Make Changes
- Loans are Available
- Accounts are Valued Daily
- Summary Plan Description
Maximum Salary Deferral
The maximum employee salary deferral (contribution) for 2015 is the lesser of 100 percent of your annual pay or $18,000 (increased from $17,500 in 2014). To calculate your maximum allowable deferral percentage, divide $18,000 by your projected annual salary.
If you will be age 50 by Dec. 31, 2015, your 2015 limit is $24,000 (increased from $23,000 in 2014). To calculate your maximum allowable deferral percentage, divide $24,000 by your projected annual salary.
Banner's payroll system is set up to automatically stop your contributions when you reach any of the above annual limits.
No employer matching contribution will be made for any pay period in which you do not have a contribution.
Some companies require their employees earn the right to keep contributions the company has made to their retirement plan by working for the company for a certain number of years. This is called vesting. Banner has no vesting requirements. You are always 100 percent vested in your and Banner Health’s contributions to the plan. In other words, you will always have ownership of the contributions you and Banner make to your retirement plan account.
Loans are Available
While the retirement plans should be considered a long-term investment, you will have the ability to request a loan. The minimum amount you can borrow is $1,000, and you can have two outstanding loans at a time. Generally, you may borrow the lesser of 50 percent of your balance or $50,000. Any outstanding loan balances over the previous 12 months may reduce the amount you have available to borrow. Loan repayments (plus interest) to your plan account are paid back through electronic bank draft. No loan may be written for longer than five years.
In addition, you may take in-service withdrawals on any after-tax contribution account. These after-tax contributions continue to be recorded as after-tax contributions on your account statements while your 401(k) deferral amounts are recorded as pre-tax.
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Accounts are Valued Daily
You are able to access up-to-date information about the value of your investments and make transactions on any business day, and every transaction is confirmed. Every three months, Fidelity will send you a detailed statement of your balance, account activity, and your personal rate of return.
Summary Plan Description
Detailed information on this benefit such as eligibility, plan coverage, limitations and contact information can be found in the Summary Plan Description (SPD).