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403(b) Plan
Who is eligible
Employees who have a status of Pay-In-Lieu, Registry or Traveling Nurse are eligible for this Plan. All other employees are eligible for the Banner Health 401(k) Plan.
You can join the plan right away
Upon employment with Banner Health, you can start contributing anytime after receiving your first paycheck. There is no annual enrollment period -- you could enroll 365 days of each year.
The current SPD is being finalized and will be available upon completion. Please contact Fidelity Investments for information current information on this plan.
403(b) Roth Component
The Banner 403(b) plan gives you the option to contribute to the Roth component of our 403(b) Plan. While the regular 403(b) deferral uses pre-tax dollars, the new Roth 403(b) option lets you contribute after-tax dollars and then withdraw tax-free dollars from your account when you retire. These tax-free withdrawals also include all of the gains on your after-tax contributions.
Any contributions can be directed to either the regular 403(b) using pre-tax dollars, the new Roth 403(b) using after-tax dollars, or some combination of the two (up to IRS annual limits listed below)
You can view a side-by-side chart of how the two components can work together to provide you a balanced retirement fund of both pre-tax and after-tax savings.
Your contributions.
The maximum employee salary deferral (contribution) is the lesser of 100% of your annual pay or $15,500 in 2007. To calculate your maximum allowable percentage, divide $15,500 by your projected annual salary. If you will be age 50 by December 31, 2007, your 2007 limit is $20,500. To calculate your maximum allowable percentage, divide $20,500 by your projected annual salary. The IRS has set a $225,000 limit on 403(b) eligible salary.
You will be vested immediately
Some companies require that employees earn the right to keep contributions that the company makes 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% vested in your contributions to the plan.
Your service provider
Fidelity Investments is the provider of investment options, trustee, and recordkeeping services for the 401(k) and 403(b)plans. Fidelity is the nation's largest mutual fund company—managing the accounts of more than 16 million investors. A good portion of the more than $973 billion dollars managed by Fidelity is in retirement accounts.
You have flexibility to make changes
You have the flexibility to change contribution amounts at any time. You also have the ability to make exchanges (change your investment choices) at any time. (There is a short-term trading fee of 1 percent for shares held in a particular account less than 30 days. Mutual funds available through the plan reserve the right to modify or withdraw the exchange privilege.)
Loans are available
While the 403(b) plan 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% 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.
For more information about 403(b) loans, please review the loan policy.
Your account is valued daily
Your account is priced each business day. You are able to access up-to-date information about the value of your investments on any business day. You are able to make transactions 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.
Important to note
This page contains highlights of the 403(b) plan. The details of how this plan works are included in the legal documents and contracts that govern how the plan operates. In the event of a difference between this page and the legal documents and contracts, the legal documents and contracts will apply. This page does not imply a contract of employment or guarantee of benefits. Banner Health reserves the right to change or discontinue all or part of the medical plan benefits at any time for any reason.
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