Retirement and TDA Plans - · PDF fileHardship Withdrawals ... By participating in the...

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  • BUILDING AN INCOME FOR RETIREMENT Building retirement income takes advance planning and smart investments. SHC encourages you to prepare

    financially for your future by offering two programs designed to help you save for retirement the Retirement

    Plan and the Tax-Deferred Annuity Plan (the Plans).

    G

    Booklet G

    Retirement and

    TDA Plans August 2012

    Contact Information

    Diversified is now the primary contact for the retirement plans.

    For questions and assistance with your retirement plan benefits or

    information in this booklet, log on to Diversifieds website through:

    www.healthysteps4u.org

    or call (800) 755.5801

    http://www.healthysteps4u.org/

  • October 2012

    Table of Contents

    Summary of the SHC Plans ................................................................................................ G-1

    Comparison of the SHC Plans ........................................................................................... G-1

    Saving for Retirement ......................................................................................................... G-2

    Why Use the SHC Plans to Save for Retirement? ............................................................ G-2

    Start Saving Now and Let Time Work for You!................................................................. G-2

    Investing Your Savings ....................................................................................................... G-3

    Understand Risk .................................................................................................................... G-3

    Diversify ................................................................................................................................. G-3

    Think Long Term ................................................................................................................... G-3

    Investment Management and Other Fees and Expenses ..................................................... G-3

    Other Information You Should Obtain before Selecting Your Investment Options .................................................................................................................................. G-3

    Frozen Vendors ................................................................................................................... G-4

    The Retirement Plan ............................................................................................................ G-4

    Overview ................................................................................................................................ G-4

    Who Is Eligible ....................................................................................................................... G-4

    Waiting Period ....................................................................................................................... G-5

    Other Service Credited to Your Waiting Period..................................................................... G-5

    Your Contributions ................................................................................................................. G-6

    SHCs Contributions .............................................................................................................. G-6

    Special Provisions for Certain Employees ....................................................................... G-7

    Relief and Temporary Employees ......................................................................................... G-7

    Stanford Health Services Exempt Employees ...................................................................... G-7

    Contributions for Employees with at Least 10 or 15 Years of Service .................................. G-7

    Represented Employees ....................................................................................................... G-7

    Definition of Eligible Pay ..................................................................................................... G-7

    Enrolling ................................................................................................................................. G-8

    Withdrawals ........................................................................................................................... G-8

    Rollovers and Plan-to-Plan Transfers from Another Plan ..................................................... G-9

    The Tax-Deferred Annuity (TDA) Plan ............................................................................... G-9

    Overview ................................................................................................................................ G-9

    Who Is Eligible ....................................................................................................................... G-9

    How the TDA Plan Works ...................................................................................................... G-9

    Amount You May Contribute ................................................................................................. G-9

    Enrolling ................................................................................................................................. G-10

  • October 2012

    Rollovers and Plan-to-Plan Transfers from Other Plans ....................................................... G-10

    Loans ..................................................................................................................................... G-10

    Hardship Withdrawals ........................................................................................................... G-11

    Other Withdrawals ................................................................................................................. G-12

    Important Information about Both Plans .......................................................................... G-13

    Vesting in Your Accounts ...................................................................................................... G-13

    IRS Limits on Contributions ................................................................................................... G-13

    Can You Contribute to an IRA? ............................................................................................. G-14

    Enrolling ................................................................................................................................. G-14

    Investment Fund Contact Information ................................................................................... G-15

    Changing Your Contributions ................................................................................................ G-15

    Changing Investment Allocations .......................................................................................... G-15

    Changing Investment Companies ......................................................................................... G-15

    Managing Your Account(s) .................................................................................................... G-16

    Three Ways to Manage Your Account(s) .......................................................................... G-17

    Naming a Beneficiary .......................................................................................................... G-18

    Changing Your Beneficiary .................................................................................................... G-18

    Consent of a Spouse ............................................................................................................. G-18

    Designation of Minor Children ............................................................................................... G-18

    Payment Options ................................................................................................................. G-19

    Death Benefit Options ........................................................................................................... G-20

    Income Taxes on Payments and Withdrawals ...................................................................... G-20

    Penalty Taxes for Premature Distributions ............................................................................ G-20

    Circumstances Which Can Affect Your Retirement and TDA Plan Accounts .............................................................................................................................. G-21

    Future of the Retirement and TDA Plans .............................................................................. G-21

    Notes ..................................................................................................................................... G-22

  • October 2012

    G-1

    Summary of the SHC Plans

    SHC offers two plans to help employees save for retirement: the Retirement Plan and the Tax-Deferred Annuity

    (TDA) Plan. Both plans are designed to comply with Section 403(b) of the Internal Revenue Code. They are

    considered defined contribution plans. By participating in the Retirement and TDA Plans, you accumulate and

    invest money in mutual funds or an insurance contract. The amount of money you have at retirement depends

    on the performance of the investment funds you select. Investment options through our retirement plan

    providers, Diversified and TIAA-CREF, are made available to plan participants.

    SHC also helps you save for retirement through matching contributions to S