NSLIJ offers you a retirement savings plan that may help you reach your retirement savings goals. This plan is in addition to your Cash Balance Plan1 offered through NSLIJ.
Being informed about your retirement savings plan will help you make decisions that fit your circumstances and savings goals. To learn more about your retirement savings plan, review the information below.
Defining 403(b) and 401(k) Plans2
At North Shore-LIJ Health System (NSLIJ), you have the opportunity to participate in either a 403(b) or 401(k) retirement savings plan. Simply stated, both are tax-deferred retirement plans and are very similar to each other. A 403(b) plan is for employees of not-for-profit entities.
"Tax deferred" means that you do not pay taxes on pre-tax contributions (pre-tax money you contribute to the plan, plus NSLIJ's match) or any potential earnings until you take the money out. At that time, ordinary income taxes will be due. Note that distributions prior to age 59 1/2 may be subject to an additional 10% federal income tax penalty.
Your NSLIJ retirement savings plan may help you to accumulate money for retirement that can provide an income that has the potential to last as long as you do.
Enrollment is Automatic for Non-Union Employees
Through automatic enrollment, NSLIJ gets all non-union employees up and running from the start. Unless you elect otherwise, you are automatically enrolled in your account. You may contribute to the account with pre-tax dollars, post-tax dollars or a combination of both. The contributions are deducted directly from your paycheck. While participation is encouraged, please note that automatic enrollment is not available for union employees.
Choose Between Funding Options
Your retirement savings plan offers several funding options that include mutual funds, including target date mutual funds3, and a group annuity contract. Deciding where to invest may seem overwhelming - but it doesn't have to be when you know where to start.
You should review the Choosing Your Funding Options page for more information about the funding options available.
NSLIJ's Match for Non-Union Employees
For eligible employees, NSLIJ automatically contributes 3% of your eligible compensation to your account, beginning on the one-year anniversary of your date of hire. However, if you contribute at least 6% of your annual salary, you'll receive an additional 2% from NSLIJ. It's important to note that the NSLIJ matching contributions are not available for union employees.
You're always 100% vested in your own contributions to your retirement savings plan account (adjusted for market performance). However, NSLIJ contributions are subject to a vesting schedule. Simply stated, "vesting" means ownership of the contributions made by NSLIJ through the match, which is tied to your years of service, based on your date of hire:
In 2014, you may contribute up to $17,500 over the course of the year. If you're age 50 or over in 2014, you may contribute an additional $5,500, for a total of $23,000. Total contributions, including your contributions and NSLIJ's contributions to your account, cannot exceed the lesser of 100% of compensation or $51,000 in 2014. If you're age 50 or older in 2014, total contributions cannot exceed $56,500 in 2014.
If you have an existing, eligible retirement plan account with a prior employer or an IRA, you may transfer or rollover all or some of that account into your retirement savings plan at NSLIJ. Your money will continue to grow on a tax-deferred basis. For more on rollovers and why this action may make sense for your circumstances, consult with your own independent tax advisor.
Loans and Withdrawals - Active Employees
You may borrow money from your retirement savings plan, though the Internal Revenue Code limits the amount you may borrow. Loan repayments are deducted from your bank account and sent directly to MetLife.
You may make hardship (as defined by the Internal Revenue Code) withdrawals from your contributions (subject to limitations) and, if you're age 59 1/2 or over, you may do so without incurring a 10% federal income tax penalty. Of course, income taxes will be due on any money you withdraw that you have not yetpaid taxes on. Consider consulting with your tax advisor before making any decisions about withdrawals or loans from your account. Please note that certain limitations may apply.
Cost of Plan Participation
There is an annual administrative fee of $16 ($4 per quarter), plus 5 1/2 basis points (.01375% per quarter) on assets held within the plan. Mutual fund companies also assess investment management fees and other expenses, which can be found in each mutual fund's prospectus.
The Cash Balance Plan1 - Available for Non-Union Employees
The Cash Balance Plan (not administered by MetLife) is a pension plan funded for eligible employees entirely by NSLIJ. It's another way NSLIJ helps you to prepare for your financial future. Employee contributions are not permitted. NSLIJ automatically contributes 3% of your annual salary to your account, beginning on the one-year anniversary of your hire date.
While union employees are not eligible for the Cash Balance Plan, NSLIJ encourages participation in the NSLIJ retirement savings plan. However, please note that employer matching contributions and automatic enrollment are not available for union employees.
View Your Account
View your account and learn more by visiting the NSLIJ Retirement Savings Plan website. You can even perform several transactions, such as increasing your contributions, viewing your most recent account statement and more.
1Not administered by MetLife; see your Human Resources Department for more information.
2The majority of health system employees work for not-for-profit entities. Employees working in for-profit divisions may participate in a 401(k) Plan in lieu of the 403(b) Plan. The Plans are similar and MetLife is the record keeper for both. The following health system entities are designated for profit: North Shore Radiology at Glen Cove, P.C.; North Shore Cardiovascular and Thoracic Surgery, P.C.; North Shore Imaging Associates, P.C.; Region Care, Inc. and Sports Physical Therapy and Rehabilitation Services of the North Shore P.L.L.C. (d/b/a S.T.A.R.S.).
3Target date mutual funds supply a "one stop" option, which are designed to provide you with an asset
allocation based upon the presumed retirement date of the investor or the date money is to be
withdrawn (i.e. the target date), usually at retirement. Typically, these are a fund of funds and
have two layers of fees and expenses. The principal value of a target date mutual fund is not guaranteed
at any time, including at the target date. Target date mutual funds allocation move toward emphasizing
cash and fixed income elements as the funds approach their maturity or target dates. By reducing
exposure to the growth elements, the risk of a sudden drop in the market affecting the retirement
MetLife Fixed Interest Stable Value Fund is a group annuity contract issued by Metropolitan Life Insurance Company, 200 Park Avenue, New York, NY 10166. Guarantees are subject to the financial strength and claims paying ability of Metropolitan Life Insurance Company.
Mutual funds are sold by prospectus only, which is available from your registered representative. Please carefully consider investment objectives, risks, charges, and expenses before investing. For this and other information about any mutual fund investment please obtain a prospectus and read it carefully before you invest. Investment return and principal value will fluctuate with changes in market conditions such that shares may be worth more or less than original cost when redeemed. Diversification cannot eliminate the risk of investment losses.
Because target date mutual funds are typically funds of funds, they are two tiered investments. This means that there are two levels of fund expenses. You may be able to realize lower aggregate expenses by investing directly in the underlying funds (if they are available in the plan), but you would not receive the asset allocation services provided by the fund manager.
A target date mutual fund's mix of investments at the target date should match your risk tolerance and the date that you anticipate withdrawing money. For example, if you anticipate withdrawing money at retirement, you may desire one investment mix. But if you continue to leave your money in the fund after retirement, you may desire another mix. If the dates and asset mix don't match, you should consider whether another target date mutual fund is more appropriate for you. Like any other investment, you need to be mindful whether before, at and after the target date the fund is appropriate for you and whether you need to make other adjustments.
There may be an administrative fee associated with your retirement plan(s). Your Summary Plan Description provides more details about your plan(s) including fee information. To obtain a copy, contact your employer. In addition, mutual fund companies may assess investment management fees and other expenses. For more information regarding fees, please read each mutual fund prospectus carefully.
Pursuant to IRS Circular 230, MetLife is providing you with the following notification: The information contained in this document is not intended to (and cannot) be used by anyone to avoid IRS penalties. This document supports the promotion and marketing of insurance products. You should seek advice based on your particular circumstances from an independent tax advisor.
MetLife, its agents, and representatives may not give legal or tax advice. Any discussion of taxes herein or related to this document is for general information purposes only and does not purport to be complete or cover every situation. Tax law is subject to interpretation and legislative change. Tax results and the appropriateness of any product for any specific taxpayer may vary depending on the facts and circumstances. You should consult with and rely on your own independent legal and tax advisors regarding your particular set of facts and circumstances.