Retirement 401k
Your Retirement Coverage
VPP encourages you to accumulate savings for retirement through convenient 401(k) pre-tax and Roth (after- tax) payroll deductions. As a full time or part time employee, you are eligible to participate in the 401(k) plan on the first pay period of a calendar quarter (Jan 1 April 1, July 1, Oct 1) after you have completed 90 days of service. For example: If you started on January 20, you would be eligible on the first pay period after July 1st. Since your 90th day of employment fell on April 20, you’d have missed the April 1 deadline and would be eligible to start on the next calendar quarter, which would be July 1. New hires are automatically enrolled in the plan with a 3% pre-tax contribution; however, you may make changes at any time. By logging into the Principal, you may modify the auto-enrollment percentage to a higher/lower percentage or flat-dollar amount, and/or enroll in Roth contributions. You can also update your investment funds at any time. You may allocate a portion of your pay (from 1% to 100%) into the plan up to the maximum amounts set by the IRS. Those who are 50 years of age or older are also eligible to make “catch - up” contributions. For 2022, the annual IRS maximum for employee contributions is $23,100 and $7,500 for catch-up.
All your individual contributions are 100% vested immediately.
Years of Service
Vested Percent
0
0%
1
20%
All individual contributions vested 100% immediately.
2
40%
3
60%
4
80%
5 or more 100% Vested percent is based on the employee’s hire date with the hospital and not when they partnered with VPP.
Employer Match
Your Contribution
1%
2%
3%
4%
5%
6%
Company Match
1%
1.50%
2%
2.50%
3%
3.50%
VPP offers 100% employer match on the first 1% of your contributions and 50% match from 2% up to 6% of your contributions. The maximum match is 3.5% if you contribute 6%.
43
Made with FlippingBook - professional solution for displaying marketing and sales documents online