401(a) Retirement Plan<br />457(b) Deferred Compensation Plan: For DC Government Employees

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    UMC Employee Plans

    The 457(b) Deferred Compensation and 401(a) Retirement Plans and work together to help you build a secure retirement.


    How your 457(b) Deferred Compensation Plan works:

    Your voluntary tax-deferred contributions are made to an account in your name for the exclusive benefit of you and your beneficiaries. The value of the account is based on the contributions made and the investment performance over time.

    The 457(b) Deferred Compensation Plan is one piece of your retirement program designed to supplement your retirement savings. While a pension and/or Social Security may go a long way, they may to be enough. Saving to your 457(b) plan can help you maintain your desired standard of living.

    Eligibility

    Any employee who is classified by the United Medical Center (UMC) as a "regular" or "at-will" full-time or part-time employee. Employees who are classified by UMC as "temporary" or "interns" are not eligible to participate.

    There are no age or length of service requirements.

    Contributions

    Under the plan, you make contributions to the Plan by agreeing to defer a dollar amount or percentage of your salary. Your deferrals are made on a pre-tax basis, and all earnings are tax deferred until benefits are distributed to you. UMC does not make any contributions to this plan.

    • The minimum contributionis $20 per biweekly payroll period, or $43 per monthly payroll period.
    • Maximum contribution is set by the IRS and is subject to cost-of-living adjustments every year.

    For 2016 and 2017, you can contribute up to $18,000 annually, up to $24,000 if you are age 50 or over, or up to $36,000 if you qualify for pre-retirement catch-up contributions.

    Investments

    You control how your account is invested. Choose from a number of investment options selected for you by UMC.

    Your plan includes a wide range of options, from more conservative stable value funds to more aggressive bond and stock funds. You may choose to build a diversified portfolio of various funds or select a simple yet diversified age-based retirement fund that are geared toward your projected retirement date. These funds may be a good alternative for investors who are not comfortable actively managing their account. You also have the option to rely on specific investment advice through our managed accounts program - Guided Pathways®.

    In addition, you have the option of signing up for the VantageBroker program, which provides you with access to even more investment options, including more than 13,000 mutual funds and individual securities. These services are provided by TD Ameritrade, a registered broker-dealer and member of FINRA/SIPC. (Note: You may participate in this program if you have at least $10,000 in your 457(b) Plan.) To sign up, log into your account then click Investments, then Brokerage, then Open a Brokerage Account. TD Ameritrade will provide you with a Personal Identification Number (PIN).

     

    Before making any investment decisions, please read the prospectus and/or fund fact sheets carefully.

    • To review investment options for your plan go to Funds.
    • To learn more about investing for retirement, visit www.icmarc.org/invest.

    Survivor Benefits

    You designate a beneficiary, or beneficiaries, to receive any remaining assets upon your death. Designating beneficiaries can help ensure your assets are paid according to your wishes. It also avoids the potential costs and delays of probate, and allows non-spouse beneficiaries to receive additional tax benefits.


    How your 401(a) Retirement Plan works:

    If you are participating in the 457(b) Deferred Compensation Plan, matching contributions are made by United Medical Center (UMC) to a 401(a) Retirement Plan in your name. This plan is for the exclusive benefit of you and your beneficiaries. The value of the account is based on the contributions made and the investment performance over time. No taxes are due, including on earnings, until you make withdrawals.

    Eligibility

    Any employee who is classified by the United Medical Center (UMC) as a "regular" or "at-will" full-time or part-time employee. Employees who are classified by UMC as "temporary" or "interns" are not eligible to participate.

    There are no age or length of service requirements, however, you must actively contribute to the 457(b) Deferred Compensation Plan to recieve the matching contribution from UMC.

    Matching Contributions

    Under the plan, UMC will contribute an amount equal to 100% of your pre-tax salary deferrals up to 3%.  An employee cannot make any contributions to his or her Plan account; however, rollover contributions are allowed.

    Investments

    You control how your account is invested. Choose from a number of investment options selected for you by UMC.

    Your plan includes a wide range of options, from more conservative stable value funds to more aggressive bond and stock funds. You may choose to build a diversified portfolio of various funds or select a simple yet diversified age-based retirement fund that are geared toward your projected retirement date. These funds may be a good alternative for investors who are not comfortable actively managing their account. You also have the option to rely on specific investment advice through our manged accounts program - Guided Pathways®.

    Before making any investment decisions, please read the prospectus and/or fund fact sheets carefully.

    • To review investment options for your plan go to Funds.
    • To learn more about investing for retirement, visit www.icmarc.org/invest.

    Vesting

    "Vesting" refers to a participant's right to recive the account balance held on his or her behalf when he or she no longer works for the District. The account will become fully vested when:

    • completion of five years of creditable service in covered employment.
    • permanent disability, or
    • death while employed.

    If an employee leaves UMC employment before his or her account is vested, he or she forfeits the account balance.

    Note:The final vesting percent will be determined by Human Resources after a review of your employment history.

    Survivor Benefits

    You designate a beneficiary, or beneficiaries, to receive any remaining assets upon your death. Designating beneficiaries can help ensure your assets are paid per your wishes, avoid the potential costs and delays of probate, and allow non-spouse beneficiaries to receive additional tax benefits.

    Note: If you are married, you are required to name your spouse as your primary beneficiary for100 percent of your account unless your spouse waives this right.