Methodist Retirement Savings Plan

A defined contribution Retirement Plan provides an annual defined contribution (service-based) which accumulates with investment results into an account balance, payable at retirement, termination of employment, disability or death.  College of Nursing employees are fully vested after 3 years of vesting service of 1,000 hours or more per year.

Years of Service Service-Based
Compensation %  
5 years or less 2.5%
6 - 10 years 4%
11- 15 years 5%
16 - 20 years 6%
21- 25 years 7%
26 - 30 years 8%
31+ years 9%

401(k) Plan

As an employee, you qualify for the Methodist 401(k) plan, an optional pre-tax payroll deduction investment program.  It can help you accumulate the money you need for a secure future, while offering attractive tax incentives at the same time. 

A variety of investment choices are available to fit your personal investment needs through Diversified Investment Advisors, the plan sponsor.  All Methodist employees are automatically enrolled at 2% of their pay after the 90-day waiting period unless you elect otherwise.  

Methodist helps with your overall retirement planning with a match of $.50 for every dollar of the first 3% you contribute.  You are vested in the match at 20% each year of 1000 hours of service and are 100% vested at 5 years of 1000 hours.  You are 100% vested in all monies you contribute.

Retirement Plans Summary

Provision

401(k)

Retirement Savings Plan

Age Eligibility

 No age stipulation

Age 21
Waiting Period 90 Days No Waiting Period
Eligible Employee All Methodist employees (PRN, Temp, Full-time, Part-time) All MMCI employees (excludes MPS)
Enrollment Automatic enrollment- 2% Automatic enrollment
Vesting 5 years of 1,000 hrs (graduated vesting) 3 years of 1,000 hours (cliff vesting)
Employer Contributions

$.50 per $1.00 up to first 3% employee contributed

% of earnings based on years of service (see attached chart)
Employee Contributions

Voluntary % up to IRS Limits

 0%
Investment Control Employee Employee
Hardship Withdrawals Allowed Not Allowed
Loands Allowed Not Allowed
Death Benefit

Designated beneficiary receives account balance

Designated beneficiary receives account balance
IRS Limits

$15,500 / $20,500 (age 50+) in 2007

 N/A
Employer contributions funded when?

Bi-weekly or monthly payroll

 Annually (February)

Do I pay taxes when I receive the benefit?

 Yes Yes
Administered By Diversified Investment Advisors Diversified Investment Advisors

** Can change funds for both plans at any time

** Can change % contribution for 401(k) at any time