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Financial Wellbeing

Retirement

The best day to start saving for your future is today – even if you need to start small. To help you build a secure retirement, our health system offers two savings plans, free financial counseling and financial wellness resources for every stage of life.

Both the 401(a) “automatic” and 457(b) “boost” plans offer a broad range of investment options to suit your goals, time horizon and risk tolerance. If you like to choose your own investments, there’s even a self-directed brokerage option. Review this summary of retirement savings plans highlights and read below for more details.

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You are automatically enrolled in this plan when hired into a benefits-eligible position (0.5 FTE or above). Key features:

  • You and the health system both contribute based on your years of service. Health system contributions range from 3–8.5% of eligible earnings (see table).
  • Your contributions are made pretax, helping you take home more of your paycheck.
  • Your contributions are always 100% vested, which means the money is yours to keep regardless of how long you stay with our organization.
  • Health system contributions are 100% vested after completing 3 years of service.

Years of service**

1,000+ hours/year

Employee contributions
% base pay

Health system
contributions
% base pay

0 to 4

4

3

5 to 9

4

4

10 to 14

4

5

15 to 19

4

6

20 or more

5.5

8.5

** One year of service is credited for each year in which you work at least 1,000 hours. Contribution levels increase on Jan. 1 following the service year anniversary.

 

Please note, employees are not able to change 401(a) “automatic” retirement savings plan contribution rates.

This plan offers a tax-advantaged way for you to boost your retirement contributions and save even more for your future. Key features:

  • Save any amount up to the IRS maximum for each calendar year. In 2024, the maximum is $23,000 (or 85% of pay, whichever is less). 2025 maximum amounts will be posted when available from the IRS.
    • If you are age 50 or older, you may contribute up to $7,500 more.
    • These contribution limits are independent of and in addition to the 401(a) plan. This unique design allows you to save more for retirement than with a traditional 401(k).
  • Flexibility to make pretax or after-tax (Roth) contributions, or both.
    • Pretax contributions reduce your adjusted gross income, providing income tax savings now. Contributions and earnings are taxed when withdrawn at retirement.
    • After-tax (Roth) contributions reduce your take-home pay now but allow you to withdraw the money and earnings tax-free when you retire.
  • When you sign up for the 457(b) boost plan, you can choose to automatically increase your contributions by 1% or more each year.
    • Consider coordinating your automatic increase date and amount with expected pay increases. That way you may be able realize both an increase in take-home pay and a higher contribution toward your retirement.
    • Use Fidelity’s contribution calculator to estimate how increasing your savings just 1% per year can really add up to big retirement savings!
  • Your contributions are always 100% vested, which means the money is yours to keep regardless of how long you stay with our organization.

Resources