Consider Consolidating Your Retirement Savings To Simplify Retirement Planning.
Having funds located with different plan providers can make it difficult to manage your money, and could mean you are paying higher fees than you should. Consider bringing your retirement accounts together into your Hackensack Meridian Health retirement plan at TIAA. With all of your retirement savings in one place, you’ll have better control over your money and it will be easier to monitor your progress.
The advantages of consolidation:
Less paperwork. Consolidating your assets in one place means less time and effort to monitor and manage your investments.
One view of your assets. With all of your assets in one place, they’re easier to keep track of so you can see where your money is and how your portfolio is allocated.
Minimize fees and expenses. Every dollar spent on fees is one less dollar being saved. By consolidating accounts, you may decrees your fees and increase your ability to save more.
Life is complicated. Retirement savings doesn’t have to be! Review your options with TIAA today.
To set up your advice session, visit TIAA.org/schedulenow or call 800-732-8353, weekdays, 8 a.m. to 10 p.m. and Saturday, 9 a.m. to 6 p.m. (ET). For plan highlights and investment option information visit TIAA.org/HMH.
Don’t Assume You’re Covered – Be Sure Of It.
When was the last time you checked the beneficiary information in your retirement account? Life changes, and so do your wants and needs. If something happens to you, make sure your beneficiary information reflects your current wishes.
Retirement plan assets will be transferred according to the terms of your plan’s beneficiary designation, not by the terms of your will. If there’s no named beneficiary—maybe you initially let your account default to “estate”— this can potentially increase the risk of significant delays and costs to those you wish to name.
Confirming or updating your beneficiaries is simple.
- Go to TIAA.org to register and/or log in to your account.
- Once logged in, under the Actions tab, choose Add/edit beneficiaries.
From there, you can designate beneficiaries and select how much each should receive. You can always change your mind if your needs change.
Have questions? Go to TIAA.org/public/support/faqs/beneficiaries or call 866-999-3844. If you make a change online, you’ll receive a confirmation.
Your Money. Your Future. Your Options.
Your workplace retirement plan is a valuable benefit offered to you as a team member with Hackensack Meridian Health (HMH). Taking full advantage of all it has to offer can help you build the savings you need for the future you want. Today’s decisions can have a substantial effect on your income in retirement.
Potential advantages of leaving your money in your HMH retirement plan include:
- Continued opportunity for tax-deferred growth.
- Keeping money in plan-specific investment options. Investment alternatives may include lower-cost, institutional class products.
- Plan investment menu regularly reviewed by HMH.
- Access to advice, planning tools and education.
- Plan may have lower administrative fees than other options.
If you are considering moving all or some of your money out of your Hackensack Meridian Health Retirement Plan, you should carefully consider all your options before deciding in order to make sure the benefits make sense for you.
Click here for a brochure that breaks down your different options and the pros and cons of each of those options.
Additionally, you can speak with a TIAA Financial Consultant who can help you make an informed choice. This service is included in your plan and is completely free! To schedule a session in person or online, please visit TIAA.org/ScheduleNow or call TIAA at 800-842-2252.
What is the New Defined Contribution Plan?
How will it work?
Retirement Fund Lineup
This new menu was carefully selected to give team members the opportunity to choose a mix of investments based on financial goals and preferences.
Click on the links to learn more about the new investment choices.
|Asset Class: Target Retirement|
|VITRX||Vanguard Institutional Target Retirement Income Fund Institutional Shares|
|VITVX||Vanguard Institutional Target Retirement 2015 Fund Institutional Shares|
|VITWX||Vanguard Institutional Target Retirement 2020 Fund Institutional Shares|
|VRIVX||Vanguard Institutional Target Retirement 2025 Fund Institutional Shares|
|VTTWX||Vanguard Institutional Target Retirement 2030 Fund Institutional Shares|
|VITFX||Vanguard Institutional Target Retirement 2035 Fund Institutional Shares|
|VIRSX||Vanguard Institutional Target Retirement 2040 Fund Institutional Shares|
|VITLX||Vanguard Institutional Target Retirement 2045 Fund Institutional Shares|
|VTRLX||Vanguard Institutional Target Retirement 2050 Fund Institutional Shares|
|VIVLX||Vanguard Institutional Target Retirement 2055 Fund Institutional Shares|
|VILVX||Vanguard Institutional Target Retirement 2060 Fund Institutional Shares|
|VSXFX||Vanguard Institutional Target Retirement 2065 Fund Institutional Shares|
|Asset Class: Guaranteed|
|N/A||TIAA Stable Value Click here to view|
|Asset Class: Fixed Income (Bonds)|
|HNHYX||Harbor High Yield Bond Fund Retirement Class|
|MWTSX||Metropolitan West Total Return Bond Plan Class Shares|
|VBTIX||Vanguard Total Bond Market Index Fund Institutional Shares|
|Asset Class: Multi-Asset|
|PDARX||Principal Diversified Real Asset Fund Class R6|
|Asset Class: Equities (Stocks)|
|COFYX||Columbia Contrarian Core Fund Institutional 3 Class|
|PFMDX||Pacific Funds Small Mid Cap Fund Advisor Class Shares|
|EREMX||Parametric Emerging Markets Fund Class R6|
|IHOVX||The Hartford International Opportunities Fund Class R6|
|VIEIX||Vanguard Extended Market Index Fund Institutional Shares|
|VFTSX||Vanguard FTSE Social Index Fund Investor Shares|
|VIIIX||Vanguard Institutional Index Fund Institutional Plus Shares|
|VTSNX||Vanguard Total International Stock Index Fund Institutional Shares|
TIAA Stable Value is a guaranteed insurance contract and not an investment for federal securities law purposes.
Investment products may be subject to market and other risk factors. See the applicable product literature, or visit TIAA.org and enter a ticker symbol in the site’s search feature for details. Stable value investment options may be subject to equity wash restrictions.
To speak with a TIAA representative regarding any questions you may have, you can schedule a one-on-one advice session by calling 866-999-3844, Monday – Friday from 8:00 am – 8:00 pm or click here.
The enrollment period begins on December 18, 2018 and ends on Sunday, December 23, 2018, at 11:59 p.m. (ET). You must enroll during this time in order to ensure your contributions begin with the first pay period in 2019. You can access enrollment online at TIAA.org/HMH beginning on Tuesday, December 18. Be sure to check out the STEP-BY-STEP RETIREMENT ENROLLMENT GUIDE on TeamHMH.com when you’re ready to enroll!
TIAA is available as a resource to you in several different ways. Whether you have a question about the new retirement plan itself or how to enroll, TIAA will be there to help you out.
- To speak with a TIAA representative, call 866-999-3844, from 8am to 10pm on weekdays and 9am to 6pm (ET) on Saturdays.
- Representatives from TIAA will be hosting on-site support sessions across the network to answer questions, provide information and help you enroll in the new retirement plan. CLICK HERE for times and locations.
- TIAA is hosting two live webinars, one focused on the retirement plan details on December 13 and another focused on enrollment on December 17. REGISTER HERE!
It’s important that you proactively enroll during the enrollment period in order to take full advantage of the HMH matching contribution (if eligible) during the next plan year. If you enroll by December 23, your contributions will begin with pay period 1 of 2019, meaning HMH matching will begin then as well and you’ll be able to take full advantage of your retirement benefit. If you enroll after December 23, your contributions will begin as soon as administratively possible (usually within two pay periods) and you’ll have missed out on HMH matching for that time period instead of putting it in your retirement savings.
For Hospital/Network/Physician Service Team Members: If you do nothing during the enrollment period, you will be auto-enrolled in January 2019. In this case, your contributions will be directed to your new TIAA account in February, as soon as administratively possible (at the end of the 30-day opt-out window), which means you will miss the HMH matching contribution until that point. Additionally, auto-enrollment enrolls you at a default contribution level (3% of your eligible compensation) which may be less than you want to contribute, further limiting the HMH match you can receive.
While you can enroll and make changes to your contributions and your investments throughout the year, you cannot go back in time to retroactively receive matching contributions from HMH. So be sure to enroll during the enrollment period, starting on Tuesday, December 18 and ending on Sunday, December 23, 2018 at 11:59 p.m.
For many of our team members currently participating in one of the existing Hackensack Meridian Health retirement plans, the following process will look really familiar to you:
- Just as your retirement contributions are deducted by pay period, you receive the match to those funds (up to the limits allowed) in the same pay period. The match is not paid as a lump sum.
- If you are eligible for the 1.5% non-elective core contribution, those funds will be deposited into your retirement account by March 15 of the following calendar year as a lump sum.
Deductions from your January 4 paycheck have been counted toward your retirement account, but are not yet visible online. We are taking some additional time to process this initial transfer to ensure quality controls are in place at each step. Contributions (both voluntary and HMH matching, if eligible) will be visible in your TIAA accounts within the next few days.
In evaluating the plans’ investment options, the Hackensack Meridian Health Retirement Plans Committee considered factors such as investment performance, risk and costs. The new lineup has been designed to provide a diversified range of investment options from a number of fund families. It is available now on TEAMHMH.COM.
The majority of Hackensack Meridian Health team members will be eligible to participate in the new defined contribution plan, including new hires starting January 1, 2019, with a few important exceptions:
- Team members at Hackensack University Medical Center and Palisades currently enrolled in the defined benefit plan. These plans will continue unchanged over the next few years, subject to IRS review
- Team members at Hackensack University Medical Center currently enrolled in both the defined benefit and defined contribution plans. These plans will continue unchanged, subject to IRS review
- Team members at Palisades formerly enrolled in the defined benefit plan and currently enrolled in the defined contribution plan. This process is still under review and more details will be forthcoming
- Most team members employed within Diversified Health Services
- Union members employed at Shrewsbury Nursing & Rehabilitation
Most team members are eligible to participate in the new plan. Per diem team members who work more than 1,000 hours in a Plan Year may be eligible to receive a retroactive HMH match at the conclusion of that Plan Year. Plans vary slightly for different business groups. To view details, please click here. Please note that there may be modifications as implementation plans progress, and some elements of the plan are subject to regulatory review. We will continue to provide updates as they are available.
We’re excited about the new HMH defined contribution retirement plan – here are the new enhancements for eligible team members*:
- We will provide an automatic 1.5% non-elective contribution (by March 15 of the following year)
- We will also match a portion of your contribution to the plan up to 5% of your eligible compensation based upon a set formula
- 100% match of the first 2% you contribute**
- 50% of the next 3% you contribute, or up to 1.5%**
- For eligible team members who do not proactively enroll in the plan, effective January 1, 2019 we will also start you off by deferring 3% of your eligible compensation automatically in an account (commonly known as “auto-enrollment”), which will increase by 1% per calendar year of service up to a maximum of 6% (of course you can always opt-out of the program altogether but then you would not be eligible for the Hackensack Meridian Health matching contribution. of up to 3.5% of pay if you contribute 5%)
The HMH contributions made on your behalf to the plan will be 100% vested once you complete three years of service. Any previous year in which you worked at least 1,000 hours and were employed on the last day of the calendar year will count towards service in the new plan.
If you have at least three years of service with HMH, you will be fully vested in the new plan. If you have less than three years of vesting service with HMH, your current service will carry over as of Tuesday, January 1, 2019.
You are always 100% immediately vested on your voluntary contributions to the plan.
* This applies to team members at Hospitals, Network and Physician Services. For team members at Nursing & Rehab (Long-Term Care), HomeCare and ShoreCare, the new defined contribution plan is slightly different: there is a 100% match of their first 3% that you contribute, and a 50% match of the next 2% that you contribute. There is no non-elective core contribution, auto-enrollment or auto-escalation. To view plan details for different groups, please click here.
** Per pay period
A “defined benefit” is most often known as a pension, where the organization sets aside a block of funds that is paid to you during retirement as long as you’ve met certain requirements, including length of time with a company, seniority, etc. Based on those factors, the company defines exactly what your monthly benefit will be in retirement based on the plan’s formula.
A “defined contribution” plan is widely known as a 401(k) or 403(b) plan. Many organizations, including Hackensack Meridian Health, provide a defined amount or contribution to a 401(k) or 403(b) plan each year while you are working. They may do this through a combination of a defined dollar amount or percentage of your pay, plus additional amounts or percentages as a match to your individual contributions to help you grow your retirement account. The contributions are placed into your account before taxes are deducted, up to a certain limit set by the government. Any money that you contribute is always yours to keep even if you move to another organization, subject to some but less stringent requirements.
Generally speaking, the primary difference between the two is the type of employer sponsoring the plans — 401(k) plans are offered by private, for-profit companies, whereas 403(b) plans are only available to nonprofit organizations and government employers.
There are many reasons more organizations are moving to 401(k) defined contribution plans. Among them, your contributions to a 401(k) plan reduce your taxable income at both the state and federal level, meaning you pay less income tax now. Your contributions to a 403(b) will not reduce the amount of state income tax you owe New Jersey today. Also, 401(k) plans generally provide a wider array of investment vehicles and give you greater choices to invest for your retirement.
Under this scenario, you would save a total of 7% of your annual gross salary in 2019:
- 3% from your eligible compensation through auto-enrollment
- 4% from Hackensack Meridian Health
- 1.5% non-elective contribution plus
- 2% match (100% match of the first 2% you contribute*) plus
- 0.5% match (50% of the next 3% you contribute*, or 50% of 1% in this scenario)
If you are eligible for the new defined contribution plan, do nothing and remain with Hackensack Meridian Health for several more years, the auto-enrollment amount will automatically increase by 1% per calendar year to a maximum of 6%. The match from Hackensack Meridian Health will also increase each year, and after 3 years you’ll contribute 6% of your eligible compensation and Hackensack Meridian Health will contribute 5% for a total of 11% of your eligible compensation.**
Of course, we hope you’ll consider raising your contribution to 5% or more immediately if possible to enjoy the full benefit of the maximum Hackensack Meridian Health match from the start. We’ll auto-enroll you in a target retirement date fund, but you will also have a choice to elect from a diverse group of funds if the target retirement date fund does not suit your needs.
* Per pay period
** Applies to team members at Hospitals, Network and Physician Services. For team members at Nursing & Rehab (Long-Term Care), HomeCare and ShoreCare, the new defined contribution plan is slightly different: there is a 100% match of their first 3% that you contribute, and a 50% match of the next 2% that you contribute. There is no non-elective core contribution, auto-enrollment or auto-escalation. To view plan details for different groups, please click here.
Yes, eligible team members can choose not to contribute at all, but please recognize that you will not be able to benefit from any of the contribution matching that we provide – it’s the equivalent of giving up another 3.5% of pay.
If you take no action you will have a 30-day window to make changes to the 3% auto-enroll contribution amount. Team members auto-enrolled on Tuesday, January 1, 2019, will have their contributions directed to their TIAA accounts in February, as soon as administratively possible (at the end of the 30-day opt-out window).
Generally, all PTO and most non-productive hours are included in the 1,000+ hours.
Each target-date fund consists of underlying mutual funds that invest in a broad range of asset classes. The allocations and risk level depend on how many years remain until the fund’s target date. To help reduce risk as the fund’s target date approaches, the fund’s mix of stocks, bonds and other types of investments is adjusted to a more conservative mix.
As with all mutual funds, the principal value of a target-date fund isn’t guaranteed at any time and will fluctuate with market changes. The target date indicates when investors may plan to start making withdrawals. However, you are not required to withdraw your money at the target date. After the target date, some of your money may be merged into a fund with a more stable asset allocation. A TIAA financial consultant can help you decide whether a target-date fund is right for you.