Exciting enhancements to your retirement plan

We at Roper St. Francis Healthcare are strengthening our investment in you by enhancing our 403(b) plan for 2019 and tying a portion of our contributions to you to the system’s success.

Specifically, the matching contribution – money that RSFH will give to your retirement fund based on your contribution – will increase to $.50 of each dollar up to the first 6 percent that you contribute, regardless of your years of service. In addition, those matches will be based on bi-weekly instead of annual contributions, which means that all teammates will be able to earn interest on those contributions all year long.

The discretionary contribution remains up to 2 percent of your pay with the payout criteria tied to system performance. When RSFH succeeds, all teammates will be able to share in the system’s accomplishments!

We share more details below. What’s most important to know is that our organization cares about your long-term financial well-being, and our retirement plan is one of the most powerful ways to build a better future. We encourage all teammates to take full advantage of the retirement plan and invest in your future.

What changes are being made to the 403(b) retirement plan effective Jan. 1, 2019?

EMPLOYER MATCHING CONTRIBUTION FORMULA

Current: 

  • For teammates with 0-9 years of service, the match formula is $.50 of each dollar up to the first 4 percent that you contribute.
  • For teammates with 10 or more years of service, the match formula is $.50 of each dollar up to the first 6 percent that you contribute.

Effective Jan. 1, 2019:

  • Regardless of your years of service, RSFH will match $.50 of each dollar up to the first 6 percent that you contribute.

TIMING OF EMPLOYER MATCHING CONTRIBUTION

Current:

  • Annually

Effective Jan. 1, 2019:

  • Bi-weekly payroll (ability to earn interest all year long)

ELIGIBILITY REQUIREMENTS FOR EMPLOYER MATCHING CONTRIBUTION

Current:

  • Must work 1,000 hours during plan year
  • Must be 21 years of age or older
  • Must be employed on Dec. 31 of plan year to qualify for the employer matching contribution (unless retiring with 15+ years of service and age 55+)

Effective Jan. 1, 2019:

  • All participants in the 403(b) plan during the year will be eligible for the employer matching contribution.

Why is RSFH making these changes?

We are enhancing our 403(b) retirement plan because we care about your long-term financial well-being.

Effective Jan. 1, 2019, most teammates will have an opportunity for an increased employer match as well as the potential for increased interest earnings since the match will be made on a bi-weekly payroll basis rather than annually.

Eligibility requirements are less stringent, allowing more teammates to be eligible for the match. For example, teammates who are PRN or Per Diem and do not work 1,000 hours in a plan year now will be eligible to receive the RSFH employer matching contribution.

In addition, our retirement plan is simplified so that it’s both easier to administer and understand. The plan also aligns with healthcare industry benchmarks.

How do I maximize the RSFH employer matching contribution beginning in the 2019 plan year?

You only will receive the RSFH employer matching contribution in a pay period during which you: 1. Have earnings and 2. Make a 403(b) contribution. To maximize the employer matching contribution, the contribution percentage you select should be at least 6 percent and contributed each bi-weekly pay period for the year.

It is important to evenly distribute your personal contribution over the year to maximize the employer matching contribution.

What is the maximum amount I can contribute to my 403(b)?

The IRS sets annual individual contribution limits each year. In 2019, the maximum individual contribution is $19,000.

The IRS also allows any teammate who turns 50 by the end of the year to contribute an additional $6,000 or “catch up” contribution. RSFH does not provide any employer matching or discretionary contribution on “catch up” contributions.

The IRS also sets the maximum amount of earnings that an employer can use when calculating matching contributions. For 2019, the annual compensation limit is $280,000.

Will I still receive a RSFH employer matching contribution for the 2018 plan year? 

The RSFH employer matching contribution for the 2018 plan year will be made in April/May 2019 based on the current eligibility requirements.

When will the new employer matching contribution formula for 2019 begin?

The new employer matching contribution formula and eligibility requirements are effective beginning with the first pay period of 2019, which starts Dec. 23. If you want to make changes to your elected contributions to be effective with the first pay period of the plan year, you must do so by Jan. 2, 2019.  However, you can make changes at any time to your retirement contribution rate.

How do I change my personal contribution election? 

You can update your 403(b) retirement contribution rate any time throughout the plan year in one of the following three ways:

  • Via Website: Log-in to your account at rsfh.trsretire.com. Click on DETAILS. Under Manage, select Contributions;
  • Via App: Download the Transamerica My TRSretire app. Click on the > beside the 403(b) retirement plan. Click in upper left for menu.  Then click on Manage and select Contributions; or
  • Via Phone: Call Transamerica at 800-755-5801 and make changes through the automated system.

You can also reach out to our on-site Transamerica representative Michael McFaul at 843-724-2918 or michael.mcfaul@transamerica.com to assist you. Note that election changes will be processed by the end of the next full pay period.

Will the auto enroll feature for new hires change?

No. Newly hired teammates will still be automatically enrolled in the Roper St. Francis Healthcare 403(b) plan upon completing 30 days of service at 4 percent pre-tax contribution rate unless the teammate opts out beforehand or makes an election for a different contribution rate. New hires may want to consider increasing their contribution to 6 percent to take full advantage of the new employer matching contribution formula.

Will the RSFH vesting change?

No. Teammates are vested in RSFH employer contributions after three years of service (working 1,000 hours during a plan year is considered a year of service). You always are 100 percent vested in your personal contributions.

What is the discretionary contribution?

Discretionary contributions are different and separate from the matching contributions, although RSFH traditionally has made these at the same time to your 403(b) accounts. RSFH annually has the option to contribute up to 2 percent of your annual earnings to your 403(b) account. This has been called the “discretionary contribution.”

If approved, this RSFH discretionary contribution would continue to be made on an annual basis (usually in April of the following year). Teammates, other than new retirees age 55 or older with 15 years of service, must be employed on Dec. 31 of the applicable plan year to receive any discretionary contributions that RSFH makes for that year.

Are there any changes to the discretionary contribution?

Starting in 2019, the funding for the discretionary contribution will be based on the overall healthcare system’s achievement of budgeted performance for the prior year. The discretionary component can be as much as 2 percent of teammates’ annual earnings, and the exact percentage will be based on the system’s financial success (see below). This will allow all teammates to more fully share in our healthcare system’s accomplishments and earn more in retirement plan funding if RSFH exceeds its budget.

  • If RSFH achieves 105 percent of budgeted operating Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA – this is an accounting measure that’s used to gauge a company’s financial performance), teammates will be eligible for a discretionary payout of 2 percent of their annual pay.
  • If RSFH achieves 100 percent of budgeted operating EBITDA, teammates will be eligible for a discretionary payout of 1.5 percent of their annual pay.
  • If RSFH achieves 90 percent of budgeted operating EBITDA, teammates will be eligible for a discretionary payout of 1.25 percent of their annual pay.
  • If RSFH achieves 80 percent of budgeted operating EBITDA, teammates will be eligible for a discretionary payout of 1 percent of their annual pay.
  • If RSFH achieves below 80 percent of budgeted operating EBITDA, teammates will not be eligible for a discretionary payout.

Who can I contact with questions?

Contact RSFH’s on-site and dedicated Transamerica Retirement Plan Consultant, Michael McFaul, at 843-724-2918 or michael.mcfaul@transamerica.com.

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