Page 21 - Palomar EE Guide 01-19 FINAL
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Financial Wellness
Retirement (continued)
Overview of 457 Deferred Compensation/Roth Match Plan
Years of Service 1-9 10-15 16+
Match 50% of the first 2% you contribute 100% of the first 2% you contribute 150% of the first 2% you contribute
Money Purchase Pension Plan – 401(A)
After one year of service with 1,000 hours worked in that anniversary year, Palomar Health will contribute an amount currently equal to 6.0%
of your gross earnings. After 15 years of participation in the plan, the contribution will increase to an additional .5% of your per pay period
gross earnings over the established contribution level in effect at the time. You have the ability to choose from a variety of funds at Fidelity
Investments that best meet your retirement planning needs. This plan is available to part-time I, part-time II and full-time employees.
Participation is automatic. Palomar Health begins making contributions the pay period after you meet the eligibility requirements.
In addition to the contributions that are made by Palomar Health on your behalf, you may make voluntary contributions to the plan of up to
12% of your gross earnings. These contributions are after-tax and don’t change the amount provided by Palomar Health.
Palomar Health will begin matching a portion of your 457 Deferred Compensation contribution based on a formula described in the table
below. The match percent is determined on your years of vested service with a minimum of 1,000 hours worked in each anniversary year.
Vesting
Vesting is a term used to describe the portion of your account balance that you are entitled to under the Palomar retirement program. You acquire
the right to a “vested interest” in the value of the Palomar Health Money Purchase Pension plan and the matching contributions for the Deferred
Compensation Plan, based on your years of service.
Your vesting interest increases with each anniversary year you work 1,000 hours as follows:
Money Purchase Pension Plan Vesting Schedule
Years of Service and 0-1 year 1-2 years 2-3 years 3-4 years 4-5 years 5 years or more
1,000+ Hours
Vested % Not Eligible 20% 40% 60% 80% 100%
College Savings Plan – 529
A 529 College Savings Plan is a flexible program that helps make saving for higher education easier. The program allows U.S. citizens and
permanent residents (including parents, grandparents, friends and family) the ability to save today to meet the cost of a child’s future education.
Two plans are available. The California based 529 College Savings Plan is through ScholarShare or through Fidelity Investments.
To enroll, please see contact information on the back panel of this brochure and at www.palomarhealth.net.
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