CHE Trinity Health Retirement Program—
Effective 1/1/2015
Key Points about Your Retirement Program
• Your current retirement benefits are safe. You will continue to earn benefits under your current CHE Retirement Savings Plans through December 31, 2014.
• If you are at or close to retirement, there is no need or benefit to accelerating your retirement timeline or making changes to your retirement planning as a result of the changes to the Retirement Program design.
• Your benefit will not be greater if you retire before the new design goes into effect on January 1, 2015. • You will receive information in December that will give you your estimated vesting and benefit service
credit through December 31, 2014.
• You will receive more information. In addition to this newsletter, you will have the opportunity to meet with Transamerica representatives during informational sessions throughout November
and December.
Dear CHE Trinity Health Colleague:
CHE Trinity Health is committed to providing a retirement benefit that supports the needs of you and your family. We are equally committed to ensuring you understand the Retirement Program and what the changes in 2015 will mean to you. This is the second of two newsletters and is designed to walk you through the transition of the CHE Retirement Savings Plans from Lincoln Financial (Lincoln) to Transamerica Retirement Solutions (Transamerica). In the first newsletter mailed to you in October, you
learned about the retirement program design that will be effective January 1, 2015. This design:
• Provides a meaningful retirement benefit.
• Provides employer contributions (match and core). • Provides greater support for lower-paid colleagues. • Is predictable and sustainable.
• Rewards colleagues with longer service.
• Offers consistent benefits across the organization. Included in this newsletter are more details about the transition of the CHE 403(b)/401(k) Retirement Savings Plans from Lincoln to Transamerica. Additionally, we will provide important dates regarding the account transaction quiet period and information about some of the unique tools and resources that you will have access to for retirement planning through Transamerica. Transamerica, our new retirement plan service provider as of January 1, 2015, has the tools and resources to help you achieve your retirement goals.
Within this newsletter, we will outline the following: • Transamerica Retirement Solutions and
transition details (pg. 2).
• Changes to the investment options (pg. 2). • After the transition (pg. 10).
• Colleague meetings (pg. 10).
• Reminder from newsletter 1: Sources of Retirement Income and features of the Retirement Savings Plan (pgs. 11–14).
• Tools and resources (pgs. 16–17).
• Where to go for more information (pg. 18). • Frequently Asked Questions (pgs. 19–25).
CHE Trinity Health will be announcing our new system name before the end of the year. As the new name is announced, the name of our Retirement Program will also change. The name change will not impact the benefits.
For colleagues covered by a collective bargaining agreement, please contact your union leadership
representative for information on this newsletter and its impact on you.
About Transamerica
Retirement Solutions
After careful research, CHE Trinity Health chose Transamerica Retirement Solutions to become CHE Trinity Health Retirement Savings Plan’s service provider beginning January 1, 2015.Transamerica is a full-service retirement plan provider that has worked with retirement plans for more than 75 years, helping people save and invest wisely through their employer-sponsored plans. Today, over three million employees working for organizations across America invest their retirement assets through them. No matter what kind of investor you are, they can simplify your retirement planning with the expertise and resources you need to reach your retirement savings goals.
Transition details
The transition to Transamerica is designed to accomplish support for the merging of retirement savings plans.Understanding the mechanics of the
transfer to Transamerica
The transfer process entails the conversion of your account balances and records from Lincoln, your current retirement plan service plan administrator, to Transamerica. We have carefully designed the transfer process to minimize the impact on your retirement plan strategy. One important element is the transfer of your account from the funds in which you are currently invested. The transfer will be made to new funds that are similar in their investment objective and composition. This process is commonly known as “fund mapping." As a result of fund mapping, your account will be invested in the asset classes and fund types you selected. The actual transfer will happen at the end of the day to be effective the end of the following business day. This means your account will be out of the market for the one day needed to complete the transfer. When the transfer process is initiated, there will be a period of time during which you will not have access to your
This period of time is referred to as the quiet period and is necessary to allow time for Lincoln to prepare its records for the transition to Transamerica, and then for Transamerica to reconcile these records to establish your accounts.
To view a short video with details about the transition, sign in to
https://cheretirementtransition.trsretire.com and click on the Transition Video link on the
Home page.
Changes to the
investment options
CHE Trinity Health is committed to providing you with an opportunity to meet your retirement goals through the CHE Trinity Health Retirement Savings Plans administered by Transamerica. As part of that commitment, the Defined Contribution Investment Selection Group (DC-ISG) diligently monitors the investment lineup on a range of factors including diversification, investment style, expenses, and performance. The DC-ISG members consist of CHE Trinity Health colleagues from both the Treasury and Retirement departments as well as the CHE Trinity Health third-party investment consultant.An important aspect of the process in combining the CHE and Trinity Health retirement plans was to conduct a review of investment funds and current market conditions. After careful consideration, the DC-ISG made determinations on the investment lineup. Some funds remain the same and will not need to be mapped, while others are changing, as reflected in the charts on pages 5, 6, and 7. If you invest in any of the funds being replaced, those assets and ongoing contributions will be automatically transferred (“mapped”) to the appropriate replacements, which are similar to the original funds in their investment objectives and composition. You will see that in some cases, an existing fund will remain in the new fund lineup. See the investment mapping chart on page 5 for more detail.
Investment
mapping and the
“quiet period”
IMPORTANT NOTE: Beginning on Friday,
December 26, 2014, at 4:00 p.m. ET, and concluding the week of January 19, 2015, you will have limited access to your retirement savings plan accounts. This is necessary in order to complete the mapping process of investments from your current lineup to the new lineup. This is commonly referred to as the “quiet period.” Your account will remain fully invested during the quiet period (less one market day for the transfer of assets).
During the quiet period you will not be able to: • Initiate any transactions that would trigger the
liquidation or purchase of assets within your account (loans, hardship withdrawals, in-service withdrawals or distributions).
• Change future contribution elections.
For this reason, you should take time now to carefully review the appropriateness, balance, and diversification of your investments before the quiet period begins since you won’t be able to make changes to your account during the quiet period.
Due to timing of the quiet period and when final 2014 payroll files will be received, there may be certain payrolls within the last few days of the year that will be required to be deposited to Transamerica. There is no implication to you if this does occur. Your contributions will be deposited according to the investment mapping chart on page 5 if this does apply to one of your
contributions. The timing of these contributions will be as soon as possible following receipt of the data.
Your investments
during the
quiet period
Your accounts will remain fully invested during the quiet period, less one day to accommodate the transfer of assets from Lincoln to Transamerica. There are some investments identified in the fund mapping chart on page 5 which will be transferred in kind, meaning they will not incur the one day out of the market transition and will remain invested each day throughout the quiet period.
YOUR TRANSITION TIMELINE
FRIDAY, DECEMBER 26, 2014, AT 4:00 P.M. ET:
QUIET PERIOD BEGINS.
Account access will be limited with Lincoln.
FRIDAY, JANUARY 2, 2015
Plan assets are transferred to Transamerica.
WEEK OF JANUARY 19, 2015 QUIET PERIOD ENDS.
Account access begins at Transamerica. Visit
https://retirechetrinity.trsretire.com
to access your new account.
Your contribution percentages and
future investment allocations will
also be mapped
You are not required to re-enroll as a result of this process. The conversion to Transamerica was designed to ensure continuity and provide a seamless transition regarding your contribution percentages (the percentage of your pay that you contribute to the retirement plan) and future investment allocations. If you do nothing, your contribution percentages will carry over to the CHE Trinity Health Retirement Savings Plan at Transamerica after January 1, 2015.
Your future investment allocations will also be carried forward and mapped to the same investment or its equivalent in the new lineup as of January 1, 2015. See the investment mapping chart on page 5 for more details. If you are satisfied and accept the mapping of your current investments and future allocations, no action is required on your part. If you do not want your current balance or future contributions to be directed to the investments listed within the mapping chart, you must reallocate your investments and/or change your investment elections for future contributions by contacting Lincoln before 4:00 p.m. ET on December 26, 2014 at 800-234-3500. If you are considering any changes to your investment allocations or amount after the quiet period, please visit https://retirechetrinity.trsretire.com, or contact Transamerica at 800-394-5240. You may also contact your local Transamerica retirement planning consultant for assistance.
IMPORTANT NOTE: In the current CHE Retirement Savings Plan administered by Lincoln, your investment elections apply across all money sources—that is, your employee contributions, employer match and core contribution, are all invested in one set of investment allocations. Effective January 1, 2015, you are required to have separate investment elections for each source for which you maintain a balance. As a part of this transition process, your investment allocations from Lincoln will be mapped to each money source for which you maintain a balance. For any money source that you do not maintain a balance prior to the start of the quiet period on December 26, 2014, an investment allocation for that money source will need to be completed separately after the end of the quiet period. If you do not elect an investment allocation, your contributions will be defaulted to the plan's designated default investment option. This structure allows you to create a unique investment strategy for each of your separate money sources including employee contributions, employer matching and core contributions. To elect a separate investment allocation money source after the end of the quiet period (week of January 19, 2015), you may sign in to your account at https://retirechetrinity.trsretire.com. Once signed in to your account, proceed to the “Manage” tab, then click “Future Allocations” and select your desired source type to make your election. If you have any
You may also contact your local Transamerica retirement planning consultant for assistance.
Target Date Solution
—Vanguard Target
Retirement Funds
Vanguard Target Retirement Funds* give you a straightforward approach to a sophisticated problem: how to invest successfully for retirement. Each fund is designed to help manage risk while trying to grow your retirement savings. The fund is structured to be allocated based on a future date, such as your normal retirement date. Each of the Target Retirement Funds invests in Vanguard's broadest index funds, giving you access to thousands of U.S. and international stocks and bonds, including exposure to the major market sectors and segments. The funds' managers gradually shift each fund's asset allocation—to fewer stocks and more bonds—making the fund more conservative the closer you get to retirement. The managers then maintain the current target mix, freeing you from the hassle of ongoing rebalancing. Please contact your local Transamerica retirement planning consultant for questions regarding this option.The DC-ISG has designated the Vanguard Target Retirement Funds (see page 2) as the Qualified Default Investment Alternative (QDIA) for the CHE Trinity Health Retirement Savings Plans. If you do not have an investment election on file and contributions are deposited to your account, the contributions will automatically default to the Vanguard Target Date Fund that most closely aligns with an assumed age 65 retirement date, until you change your investment allocation to new investments, if desired.
* Target date options generally invest in a mix of stocks, bonds, cash equivalents, and potentially other asset classes, either directly or via underlying investments, and may be subject to all of the risks of these asset classes. The allocations become more conservative over time: The percentage of assets allocated to stocks will decrease while the percentage allocated to bonds will increase as the target date approaches. The higher the allocation is to stocks, the greater the risk. The principal value of the investment option is never guaranteed, including at and
Investment mapping chart
This chart represents the mapping from your existing investments into similar investments within the new lineup.
Asset Class Investment OptionExisting Ticker Transfer Shares In-Kind Mapping Funds and Future Investment Allocations New Investment Option Ticker Cash Equivalent/ Money Market
Vanguard Prime Money Market
Fund Institutional Shares VMRXX Yes No change
Vanguard Prime Money Market Fund
Institutional Shares VMRXX Stable Value Lincoln Stable Value Separate Account — Yes No change Lincoln Stable Value Separate Account —
Intermediate-Term Bonds PIMCO Total Return Instl PTTRX No Mapping to Metropolitan West Total Return Bond M MWTRX
Intermediate-Term Bonds Vanguard Interm-Term Bond Index Adm VBILX No Mapping to Vanguard Total Bond Market Ind Instl Pls VBMPX Large-Cap
Value Stocks Diamond Hill Large Cap Y DHLYX No Mapping to Diamond Hill Large Cap A DHLAX Large-Cap
Blend Stocks Vanguard Value Index Adm VVIAX No Mapping to Vanguard Institutional Index Instl Pl VIIIX Large-Cap
Blend Stocks Calvert Equity I CEYIX No Mapping to Ave Maria Rising Dividend AVEDX Large-Cap
Blend Stocks Vanguard Institutional Index I VINIX No Mapping to Vanguard Institutional Index Instl Pl VIIIX Large-Cap
Growth Stocks Wells Fargo Advantage Prem Lg Co Gro I EKJFX No Mapping to Wells Fargo Advantage Prem Lg Co Gr A EKJAX Large-Cap
Growth Stocks Vanguard Growth Index I VIGIX No Mapping to Vanguard Institutional Index Instl Pl VIIIX Mid-Cap Blend
Stocks Vanguard Mid Cap Index Instl Plus VMCIX No Mapping to Vanguard Mid Cap Index VMCPX Small-Cap
Value Stocks American Beacon Small Cp Val Inst AVFIX No Mapping to Columbia Small Cap Value Fund II Z NSVAX Small-Cap
Growth Stocks Eagle Small Cap Growth R6 HSRUX No Mapping to Franklin Small Cap Growth Adv FSSAX Small-Cap
Blend Stocks Conestoga Small Cap Investors CCASX No Mapping to Vanguard Small Cap Index I VSCIX Small-Cap
Blend Stocks Vanguard Small Cap Index I VSCIX Yes No change Vanguard Small Cap Index I VSCIX World/Foreign
Stocks American Funds EuroPacific Gr R6 RERGX Yes No change American Funds EuroPacific Gr R6 RERGX World/Foreign
Stocks Vanguard Total Intl Stock Index Admiral VTIAX No Mapping to Vanguard Total Intl Stock Index I VTSNX Target Date Vanguard Target Retirement Funds — Yes No change Vanguard Target Retirement Funds — Self-directed
brokerage account
TD Ameritrade self-directed
brokerage account N/A Mapping to
Charles Schwab Personal Choice Retirement
Investment lineup
This chart represents the new investment lineup effective January 1, 2015. Please see pages 28 and 29 for important risk disclosure information regarding the investment options below.
Asset Class New Investment New Ticker Ratio (Net)**Expense
Revenue Sharing (Plan service credit)*** Net Expense (Expense after credit)† Cash Equivalent/ Money Market
Vanguard Prime Money Market Fund
Institutional Shares VMRXX .10% .0% .10% Stable Value Lincoln Stable Value Separate Account N/A N/A .14%* N/A Intermediate-Term
Bonds Metropolitan West Total Return Bond M MWTRX .68% .35% .33% Intermediate-Term
Bonds
Vanguard Total Bond Market Fund Idx
InstlPls VBMPX .05% .0% .05%
World/Foreign
Bonds Templeton Global Bond Adv TGBAX .63% .25% .38% Large-Cap Value
Stocks Diamond Hill Large Cap A DHLAX 1.05% .50% .55% Large-Cap Blend
Stocks Vanguard Institutional Index Fund Instl Pl VIIIX .02% .0% .02% Large-Cap Blend
Stocks Ave Maria Rising Dividend AVEDX .98% .40% .58% Large-Cap Growth
Stocks Wells Fargo Advantage Prem Lg Co Gr A EKJAX 1.13% .55% .58% Mid-Cap Blend
Stocks Vanguard Mid Cap Index VMCPX .06% .0% .06% Small-Cap Value
Stocks Columbia Small Cap Value Fund II Z NSVAX 1.08% .40% .68% Small-Cap Growth
Stocks Franklin Small Cap Growth Adv FSSAX 1.05% .25% .80% Small-Cap Blend
Stocks Vanguard Small Cap Index I VSCIX .08% .0% .08% World/Foreign
Stocks American Funds EuroPacific Gr R6 RERGX .49% .0% .49% World/Foreign
Stocks Vanguard Total Intl Stock Index I VTSNX .12% .0% .12% Target Date Vanguard Target Retirement Income Inv VTINX .16% .0% .16% Target Date Vanguard Target Retirement 2010 Inv VTENX .16% .0% .16% Target Date Vanguard Target Retirement 2015 Inv VTXVX .16% .0% .16% Target Date Vanguard Target Retirement 2020 Inv VTWNX .16% .0% .16%
Asset Class New Investment New Ticker Ratio (Net)**Expense Revenue Sharing (Plan service credit)*** Net Expense (Expense after credit)†
Target Date Vanguard Target Retirement 2030 Inv VTHRX .17% .0% .17% Target Date Vanguard Target Retirement 2035 Inv VTTHX .18% .0% .18% Target Date Vanguard Target Retirement 2040 Inv VFORX .18% .0% .18% Target Date Vanguard Target Retirement 2045 Inv VTIVX .18% .0% .18% Target Date Vanguard Target Retirement 2050 Inv VFIFX .18% .0% .18% Target Date Vanguard Target Retirement 2055 Inv VFFVX .18% .0% .18% Target Date Vanguard Target Retirement 2060 Inv VTTSX .18% .0% .18% Self-Directed
Brokerage Account
Charles Schwab Personal Choice Retirement
Account® (PCRA) N/A N/A N/A N/A
Target date options generally invest in a mix of stocks, bonds, cash equivalents, and potentially other asset classes, either directly or via underlying investments, and may be subject to all of the risks of these asset classes. The allocations become more conservative over time: The percentage of assets allocated to stocks will decrease while the percentage allocated to bonds will increase as the target date approaches. The higher the allocation is to stocks, the greater the risk. The principal value of the investment option is never guaranteed, including at and after the target date.
*.14% for 2015, .18% for 2016 and 2017. See FAQs for more information.
** The net expense ratio reflects the expense ratio of the investment option after any applicable expense waivers or reimbursements.
*** Within the expense ratio, individual fund families may pay plan recordkeepers like Transamerica for their administrative services. These payments are then credited directly back to plan participants as a plan service credit.
† The expense after credits is a hypothetical calculation where plan service credits are deducted from the net expense ratio. The expense after credits provides a reasonable estimate of the investment option fees you will pay, but does not reflect other fees that will be deducted from your account, such as the $41 annual fee (see page 10 for more details).
For more information on any registered fund, please call 800-394-5240 for a free summary prospectus (if available) and/or prospectus. You should consider the objectives, risks, charges, and expenses of an investment carefully before investing. The summary prospectus and prospectus contain this and other information. Read them carefully before you invest.
Investment lineup and
revenue sharing
As shown in the investment lineup chart, there may be what is referred to as “revenue sharing” paid by the fund family within certain funds. Effective January 1, 2015, your account will be credited any revenue generated by the funds (per the new investment fund chart) for which you are invested. This revenue generated by the funds is tracked and accrued daily and then credited monthly. The chart shows the current amounts paid, but these amounts are subject to change. You can view this activity by signing in to your account at https://retirechetrinity.trsretire.com after the first months' crediting has been posted on the last business day of January 2015. You may also contact your local Transamerica retirement planning consultant or call 800-394-5240 with any questions you may have.
Addressing potential redemption fees as a result of
the fund mapping
There are no administrative fees charged to colleagues for the mapping process. However, some fund families will charge a “redemption fee” under circumstances where money is transferred to a certain fund and then subsequently sold within a timeframe determined by the fund family. The redemption fee only applies to the money transferred within this window prior to the liquidation and not necessarily all holdings in the fund. As of the date of this letter, the only fund within the current fund lineup that may charge a redemption fee is the Calvert Equity I Fund (seven-day redemption, 2% fee). You may check your prospectus, or call Lincoln prior to the quiet period (December 26, 2014, 4:00 p.m. ET) at 800-234-3500 for questions on whether this redemption fee will apply to you.
Your Self-Directed Brokerage Account (SDBA)—
TD Ameritrade
If you currently have a TD Ameritrade account established, those investments will be transferred as part of the mapping process. Currently, Transamerica has an alliance with Charles Schwab & Co. Inc. to provide a range of self-directed investment options including access to thousands of registered mutual funds. Your specific investments within your TD Ameritrade account will be transferred in kind to the Schwab Personal Choice Retirement Account® (PCRA) within the CHE Trinity Health Retirement Savings Plans. The transfer of these shares in-kind means there is no liquidation required and your investments within the TD Ameritrade account will remain invested throughout the entire quiet period and transition to your PCRA® account.
In order to have access to executing transfers within your PCRA® account, there are a few forms that must be completed in order to establish your account. Once the transition to Transamerica is complete, you can manage your PCRA® by calling 888-393-PCRA (7272) or by visiting https://schwab.com/pcra. You will be prompted to complete these forms online when you sign in to your PCRA® for the first time. When you sign in to your PCRA for the first time, you will need to enter your participant account number, which will be sent to you under separate cover by Schwab, as well as the following information:
Plan ID: *
* Please contact your local Transamerica retirement planning consultant or call 800-394-5240 to obtain the Plan ID specific to your location.
Plan Password: SCHWAB
If you have any questions regarding this process, you may contact your local Transamerica retirement planning consultant or you may call 800-394-5240.
About the Schwab Personal Choice Retirement
Account® (PCRA)
The Personal Choice Retirement Account® (PCRA) is designed for participants who:
• Are experienced investors.
• Want more control of their retirement investments. • Want a wider choice of investment options
There is an annual fee of $50 for the PCRA®, which will be withdrawn from your account each year. Employee contribution, match, core, and rollover account balances are permitted to be transferred from Transamerica to the Schwab PCRA® account. Investments in the PCRA® are restricted to mutual funds. If you are interested in establishing a new PCRA® after the quiet period ends, you may contact your local Transamerica retirement planning consultant or you may call 800-394-5240 with questions.
After the transition
Access to your account
The quiet period and transition will be completed during the week of January 19, 2015. At that time you can start managing your account at https://retirechetrinity.trsretire.com. You can also execute transactions and inquire about your account activity after the end of the quiet period the week of January 19th, 2015 by calling 800-394-5240. You can always contact your Transamerica retirement planning consultant with questions as well.
Access to your frozen Defined Benefit account
(if applicable)
For 2015, you will have access to obtain the amount of your legacy Defined Benefit (Pension) Plan through the Retirement Program website with Transamerica after the completion of the quiet period during the week of January 19, 2015 (please refer to tools and resources section on pages 16–17 for more detailed information). You may also access your pension estimator tool through Lincoln up through close of business on December 31, 2014 at www.lfg.com.
New fee structure
A new fee structure will be in effect beginning January 1, 2015. Colleagues will be assessed a $10.25 per quarter ($41 annually) fee to their plan account in order to cover all aspects of servicing and administrative expenses. This quarterly fee will be assessed for each separate plan in which you maintain a balance. You will first see this quarterly charge reflected on your March 31, 2015 statement. Currently, your accounts are being assessed a quarterly fee of $14.50 ($58 annually). As a reminder, the revenue generated by certain investments within the lineup will be credited to you monthly (see Investment lineup chart on pages 6 and 7 for details).
Colleague meetings
Throughout November and December, Transamerica retirement planning consultants will be conducting colleague meetings to give you the opportunity to learn more and ask questions. For those colleagues unable to attend an education session, webinar meetings will also be conducted and recorded so that you can play them back at a time that’s convenient for you. Meeting times and locations will be communicated to you through your location. Please visit https://cheretirementtransition.trsretire.com for contact information regarding questions you may have.
Sources of your total retirement income
LEGACY DEFINED
BENEFIT
(PENSION) PLAN
• Pension plan benefit earned under prior formulas (if any) • Any transition benefits
for which you are eligible
CHE 403(b)/401(k) RETIREMENT SAVINGS
PLAN
• Benefits earned through December 31, 2014 • Employer core contribution
(you do not need to make contributions to receive this benefit)
• Employer matching contribution (if you made contributions)
• Transition benefits (if eligible)
CHE TRINITY HEALTH 403(b)/401(k) RETIREMENT
SAVINGS PLAN
• Benefits earned beginning January 1, 2015
• Employer core contribution* (you do not need to make contributions to receive this benefit)
• Employer service-based matching contribution* (If you make contributions)
&
&
YOUR RETIREMENT PROGRAM PROVIDED BY CHE TRINITY HEALTH
Plus
OTHER
PERSONAL/SPOUSE SAVINGS
e.g., CDs, mutual funds, bank accounts, real estate, other employer plans
CHE TRINITY HEALTH 403(b)/401(k) RETIREMENT
SAVINGS PLAN
Colleague contributions
INCOME SOURCES PROVIDED BY COLLEAGUES
Plus
SOCIAL SECURITY
Funded by contributions from CHE Trinity Health and colleagues
As a refresher:
How the design works—
effective January 1, 2015
The CHE Trinity Health Retirement Savings Plan plays an important role in your overall retirement planning. Investment professionals recommend that employer and colleague savings target 9% to 15% of your pay annually (depending on your income) to prepare for your retirement. If you contribute 6% of your pay, the retirement design provides you annual savings that vary between 10.5% and 13.5% of your pay (based on your years of service) when both colleague and CHE Trinity Health contributions are added together. Please contact your local Transamerica retirement planning consultant for help with your own personal retirement planning needs.
Beginning January 1, 2015, if eligible, your annual
contribution will be made up of three components:
Employer Core Contributions
+
Employer Service-Based
Matching Contributions
(if you make contributions)
+
Colleague Contributions
1
2
Here’s how it works:
•
Employer Core Contribution
If eligible, you will receive the greater of 3% of your Retirement Program Pay* or the minimum core contribution deposited to your Transamerica account. The minimum core contribution is $1,200 for full-time colleagues (pro-rated for part-full-time). You do not need to contribute to receive this benefit. Beginning January 1, 2015, your core contributions will be deposited to your CHE Trinity Health 403(b)/401(k)
Retirement Savings Plan account with Transamerica**. If you do not have a Retirement Savings Plan account, one will be created for you and your contributions will be deposited in the plan's designated QDIA, which is the Vanguard Target Date Fund most appropriate for your retirement year based on retirement at age 65.
Retirement Program Pay Pay of $20,000 ($9.60 / hr) Pay of $25,000 ($12.00 / hr) Pay of $30,000 ($14.40 / hr) Pay of $35,000 ($16.80 / hr) Pay of $40,000+ ($19.20+ / hr)
Annual Core Contribution Percent Including the Minimum Core Contribution
6.00% 4.80% 4.00% 3.43% 3.00%
* Retirement Program Pay generally means your W-2 wages for a year, plus your 403(b) and/or 401(k) plan
contributions and any contributions you make to your flexible spending benefit, minus reimbursements or other special payments that year. Retirement Program Pay is limited by the federal government. The limit is $265,000 for 2015 and is indexed annually.
** Match and core benefits earned through December 31, 2014, will be calculated and deposited to your account at Transamerica during the first quarter of 2015. You will see these amounts reflected on your March 31, 2015 statement from Transamerica, or when signing in to your account via the website.
+
Employer Service-Based Matching Contribution
For contributions you make to your CHE Trinity Health 403(b)/401(k) Retirement Savings Plan up to 6% of your Retirement Program Pay, you will receive an employer service-based matching contribution, if eligible. Your employer service-based matching contribution ranges from 25% to 75% of your contributions (up to a maximum of 6% of your Retirement Program Pay), based on your years of benefit service. This is shown below:
Years of Benefit Service as of January 1 Each Calendar Year
Employer Matching Contribution Percentage (of Retirement Program Pay)
CHE Trinity Health Contribution Percentage if Colleague
Contributes 6%
0 but less than 10 25% on 6% 1.5%
10 but less than 20 50% on 6% 3.0%
20 or more years 75% on 6% 4.5%
You must contribute at least 6% of your Retirement Program Pay to your Retirement Savings Plan Account to receive the maximum employer service-based matching contributions. Make sure that you contribute at least 6% in order to maximize the employer matching contribution!
1
2
➡
➡
➡
Your years of benefit service equal:
• The benefit service you have earned under your prior retirement plans as of December 31, 2014, PLUS
• One year for each calendar year that you earn at least 1,000 hours beginning with 2015.
Eligibility for Core Contributions and the Service-Based Match
Employer core and matching contributions are made for eligible colleagues.
You will need to meet the following criteria* in order to be eligible for employer contributions to the CHE Trinity Health 403(b)/401(k) Retirement Savings Plan:
• Employer Core Contribution—You will begin receiving the employer core contribution once you have worked 1,000 hours in that calendar year. Your first deposit will be based on Retirement Program Pay (defined on page 13) for the calendar year up until that date. Subsequent deposits will be made shortly following each pay period.
• Service-Based Matching Contribution (if you make a contribution)—If you are “scheduled” (or “budgeted”) to work at least 1,560 hours per year as of the first pay period** of each calendar year, you will begin to receive the service-based matching contribution to your Transamerica account shortly after your first paycheck of the calendar year. If you are scheduled for less than 1,560 hours per year, you will begin receiving the service-based matching contribution as soon as you earn 1,000 hours in that calendar year. If you become eligible after earning 1,000 hours, your first deposit will be based on pay earned year-to-date. Subsequent deposits will be made shortly following each pay period.
Timing of match and core contribution
Your pretax contributions will be deposited shortly after payroll is run. In addition, your core and match will be calculated and deposited shortly following your employee contribution deposit.
* Participants contributing in the Sisters of Providence 403(b) PROSPER plan on September 15, 2012, will receive both the core contribution and service-based matching contribution beginning shortly following the first pay period in January 2015 and are not subject to the hours requirements above.
** If you are hired during the calendar year, your scheduled (or budgeted) hours as of the first pay period after your hire date will be used to determine the timing of your service-based match deposits for that calendar year.
+
Colleague Contribution
You can contribute to the CHE Trinity Health 403(b)/401(k) Retirement Savings Plan through pretax contributions up to the annual IRS limit. The limit is $18,000 (or $24,000 if at least age 50) in 2015 and is indexed annually. Be sure to contribute at least 6% of your Retirement Program Pay to earn the maximum employer match. If you contribute any less, you will miss out on a portion of the matching contribution.
3
Automatic Enrollment Will Continue
for Colleagues Hired On or After
January 1, 2015
Colleagues who are hired or rehired on or after January 1, 2015 will be automatically enrolled in the plan at a contribution rate of 2%. Unless auto-enrolled colleagues actively choose other investment funds, their investment allocation will be directed to the plan's selected default option (QDIA) for both colleague and employer contributions. The QDIA for the CHE Trinity Health Retirement Savings Plans is the Vanguard Target Date Fund most appropriate for their retirement year, based on retirement at age 65. If you transfer to a new CHE Trinity Health location and have at least 30 calendar days between payroll dates, you may be subject to the auto-enroll process upon your rehire date. For those new-hire or rehire colleagues who fall within the auto-enroll parameters, you will receive a notice in the mail detailing the auto-enroll process. The notice will also contain instructions on how and when you would be required to “opt-out” of the auto-enroll process should you make that determination. There is also a 90-day permissible withdrawal provision which will also be explained in the notice mailed to your home.
IMPORTANT NOTE:For those that receive an auto-enroll notice where your 30-day opt-out period would end during the quiet period (between December 26, 2014 and the week of January 19, 2015), your opt-out period will be extended through January 30, 2015. If you have any questions related to auto-enroll or the opt-out process, please feel free to contact your local Transamerica retirement planning consultant or call 800-394-5240.
Account Auto-Cash Out/
IRA Provisions
If you leave the organization and have an account balance over $5,000, you can choose to leave your balance in the plan, where you will still have access to the investment funds and account tools that an active colleague has; or, you can choose to roll your account balance out of the plan. If you roll out your balance to another qualified retirement plan or rollover IRA, no taxes are levied on your account balance. If, however, you choose to take a cash distribution, regular taxes will apply (penalty taxes may also apply).
If you leave the organization and have an account balance between $1,000 and $5,000, a Transamerica rollover IRA will be automatically set up for you for your account balance.
If you leave with an account balance under $1,000, your balance will automatically be cashed out to you, and taxes will apply (penalty taxes may also apply) unless you notify Transamerica that you want to roll over your balance to another qualified plan or IRA. Matching contributions are subject to plan vesting requirements. Descriptions of plan features and benefits are subject to the plan document, which will govern in case of any inconsistencies.
Loan Provision Change Effective
January 1, 2015
Effective January 1, 2015, you are only allowed to initiate one new loan outstanding for each eligible plan for which you maintain a balance. The minimum loan amount which can be taken from each plan will remain at $1,000. The loan amount cannot exceed 50% of your vested balance or a maximum amount of $50,000 (less highest outstanding loan amount the past 12 months). Once the quiet period has ended during the week of January 19, 2015, you will have access to inquire or apply for a loan if you wish to initiate one. Contact your local Transamerica retirement planning consultant or call 800-394-5240 with questions.
NOTE: Participants with two outstanding plan loans will be allowed to continue to repay as originally scheduled. All loans would be required to be paid off prior to initiating a new loan.
Tools and resources
available to help
you prepare for
retirement
You may continue to utilize the Lincoln website at www.lfg.com for your retirement planning needs up through the beginning of the quiet period on
December 26, 2014 at 4:00 p.m. ET. During this time, you may also utilize the Transamerica transition web portal (https://cheretirementtransition.trsretire.com) to assist you with questions related to the transition to Transamerica and the CHE Trinity Health
Retirement Savings Plan effective January 1, 2015. After January 1, 2015, you can access your CHE Trinity Health Retirement Program web portal at https://retirechetrinity.trsretire.com. The Home page gives you direct access to sign in to your personal account, and offers important features such as planning tools and calculators. The Resource Center gives you immediate access to important plan documents and communications. The Contact page lets you get in touch with your local Transamerica retirement planning consultant, either for a phone consultation or a
personal one-on-one appointment.
Transamerica Onsite Retirement
Planning Consultants
You will have access to a local Transamerica retirement planning consultant that will be assigned to your location. Their goal is to help you develop a retirement savings strategy to assist you in achieving your goals. They can help you:
• Learn more about saving and investing in your plan.
• Determine how much you should be contributing to your retirement savings account.
• Review and understand the investment options and solutions offered in the Retirement
Savings Plans.
• Use the tools and resources available to you through Transamerica.
Please visit https://retirechetrinity.trsretire.com after January 1, 2015 for a complete listing of
Transamerica retirement planning consultants and an online tool to assist with setting up an appointment with your local representative. You may also call 800-394-5240 for questions.
Pension Estimator
Your pension estimator is an important source of information regarding your Legacy Defined Benefit (Pension) Plan benefit.
• Prior to the close of business on
December 31, 2014, you may continue to access your pension estimator tool by accessing your account at www.lfg.com or by calling 800-234-3500.
• Once the quiet period is completed the week of January 19, 2015, you can access your pension estimator tool by signing in to your account at https://retirechetrinity.trsretire.com or by speaking with a representative by calling 800-394-5240.
Between December 31, 2014, and the end of the quiet period, you will not have access to your pension estimator tool online. A new pension estimator tool is being developed and is anticipated to be available in the spring of 2015. You will be provided information regarding this calculator prior to the rollout. Please contact your local Transamerica retirement planning consultant with questions you may have regarding the pension estimator tool.
OnTrack
®—Online Retirement
Planning Tool
Transamerica has an online tool that uses weather icons—sunny, partly sunny, cloudy, or rainy—to estimate if you’re saving enough to meet your retirement goals. OnTrack is designed to help you develop and analyze your saving and investing strategy. You can explore the impact of different contribution rates, and model alternative investing strategies using the funds available in the Plan. OnTrack allows you to integrate all of your household income and retirement assets—including your defined benefit plan information, if any, as well as assets outside your CHE
Effective after the completion of the quiet period the week of
January 19, 2015, you can access OnTrack by signing in to your account on the Retirement Program website at https://retirechetrinity.trsretire.com. You may view and verify your personal information and add any other information, such as additional income and expenses, for a more thorough strategy. We encourage you to visit OnTrack as often as you wish to update your savings and investing strategy as your personal and/or financial situation changes. Please see the OnTrack disclosure information at the end of this newsletter on pages 30 and 31.
Save More…Automatically with Auto-Increase
A service designed to make it easy to automatically increase your contribution rate by 1% each year on a date selected by you, up to the plan limit of
75%. The auto-increase service can easily be activated online if you choose to do so. In order to choose the auto-increase service, you may sign in to your account after the quiet period is over (week of January 19, 2015) at https://retirechetrinity.trsretire.com, select the “Manage” tab and click on the “Contributions” option. You may also call 800-394-5240 or contact your local Transamerica retirement planning consultant for assistance. You should evaluate your ability to continue the auto-increase service in the event of a prolonged market decline, unexpected expenses, or an unforeseeable emergency.
“Getting Ready to Retire” Retirement
Transition Service
The Retirement Transition Service helps participants who are beginning to think seriously about planning for retirement. Participants can take advantage of this no-cost service for personalized consultations where they will receive:
• Critical retirement transition support as they prepare to exit the workplace, including a holistic household planning approach that addresses five key areas – Lifestyle, Investments, Health Care, Protection, and Income.
• Help to determine when they can afford to retire, and model strategies for building a successful and sustainable income plan. • Information to help analyze Social Security to optimize this
important benefit by looking at all claiming strategies and age combinations.
• A broad choice of financial solutions that can be tailored to each participant’s unique needs, which includes reassessing investment objectives and asset allocation.
Please contact your local retirement planning consultant for more information on setting up your own personalized consultation.
Get retirement ready
Once the transition is over during the week of January 19, 2015, sign in at https://retirechetrinity.trsretire.com to see if you’re on course toward reaching your retirement savings goals. And if you’re not? Transamerica has the tools, services, and onsite retirement planning consultants to help you get there.
As always, we remain committed to providing contemporary benefits that support the needs of our colleagues and their families. We appreciate your commitment and all you do to carry on the work and fulfill the mission of our great ministry. Thank you for making CHE Trinity Health a special place to serve.
Where to go for
more information
Lincoln
No action is required at Lincoln, but you can contact them at
800-234-3500 to check your account balance and make any
changes before the quiet period begins on December 26, 2014 at 4:00 p.m. ET.
You can still access your pension estimator tool or sign in to your account at www.lfg.com for balance and inquiry information between the beginning of the quiet period and December 31, 2014.
Transamerica
Visit us online at
https://cheretirementtransition.trsretire.com during the transition to find out how the move works. Keep in mind that we won’t have specific information about your account until the quiet period is over during the week of January 19, 2015.
Can my defined contribution account legally be moved from Lincoln
Financial to Transamerica without my consent?
Yes. Plan transfers of this type are not only legal, but also common practice among employer-sponsored retirement savings plans. There are many regulations imposed on employers that sponsor retirement savings plans. CHE Trinity Health complies with these laws that are specifically designed to protect colleagues. The terms of all CHE Trinity Health Retirement Savings Plans are governed by a plan document, which is subject to IRS regulations. The plan document specifically provides that the sponsoring employer determines which investment options are made available to colleagues under the plan.
Lincoln, as our long-time trusted partner, has provided excellent recordkeeping support over the years. They are working with CHE Trinity Health and Transamerica to ensure a smooth transition. Lincoln will partner with CHE Trinity Health moving forward as we will continue to offer the Lincoln Stable Value Separate Account within the investment lineup after the transition to Transamerica.
Why does the quiet period have to be as long as it is?
This transfer process includes the conversion of your account balances and records from Lincoln to Transamerica. We have carefully designed the transfer process to minimize the impact on your retirement plan strategy. When the transfer process is initiated, there will be a period of time (quiet period), during which you will not have access to your current account for transfers, loans, withdrawals, or other transactions. The quiet period is necessary to allow time for Lincoln to prepare its records for the transition to Transamerica and then for Transamerica to reconcile these records to establish your accounts. Some aspects of the transfer have variables attached to them which require additional time to be built in to the process to ensure completion before the quiet period is lifted. One of those aspects is fund re-registration or transferring funds “in-kind”. Transamerica will work diligently to complete this process as timely as possible; however, they need to build in enough time to ensure its completion. Please be assured that your monies will remain invested during this entire process, less the one market day for the funds not being transferred “in-kind”. This timing only impacts the lifting of the quiet period. There is a possibility the process will be completed before the projected end of the designated quiet period (week of January 19, 2015). If you have specific questions regarding the quiet period and when it will be lifted, please call 800-394-5240 or contact your local Transamerica retirement planning consultant.
Where are my employer core and employer service-based matching
contributions deposited?
Beginning January 1, 2015, contributions will be deposited to the CHE Trinity Health 403(b)/401(k) Retirement Savings Plan account with Transamerica. If you do not have a Retirement Savings Plan account, one will be created for you and your contributions will be deposited in the plan's qualified investment default fund
(Vanguard Target Date Fund most appropriate assuming age 65 retirement). Any 2014 core contributions, matching contribution or transition benefits not yet deposited as of December 31, 2014, will be determined in early 2015 and deposited into your account with Transamerica. You will see these amounts reflected on your March 31, 2015 statement from Transamerica.
When will my contributions be deposited to my account?
Colleague contributions are deposited shortly after each pay period. Once you are eligible, employer core and employer service-based matching contributions will be deposited shortly after your employee contributions each pay period.
Will I see the match and core contribution calculations on
my pay advice?
No. In order to consolidate and create efficiencies administratively and from a compliance standpoint, the calculations will need to be performed in a centralized location and thus not able to be viewed on your pay advice. You will, however, be able to view all account activity (including match and core deposits) within your account with Transamerica by signing in at https://retirechetrinity.trsretire.com after the quiet period ends during the week of January 19, 2015.
Will all of my 2014 December employee contributions be deposited
to Lincoln?
Due to timing of the quiet period and when final 2014 payroll files will be received, there may be certain payrolls within the last few days of the year that will be required to be deposited to Transamerica. There is no impact to you if this does occur. Your contributions will be deposited via the fund mapping chart if this does apply to one of your contributions. The timing of these contributions will be as soon as possible following receipt of the data.
What will happen with my outstanding loan(s)?
If you currently have outstanding loan(s) and are making your payments via payroll deduction, your loan payments will continue to be automatically deducted after the transition to Transamerica. If you are currently making payments via check to Lincoln, you will receive a coupon payment booklet after the transition is completed to Transamerica. The new coupon booklet will include instructions on how to issue the check and where to mail your payments. If you have established ACH withdrawals for your loan repayments, you will also receive a loan coupon booklet with instructions for making loan payments after the transition to Transamerica. If you receive a coupon booklet, it will also include instructions on how to utilize the online bill pay option to submit your payments. Please contact your local Transamerica retirement planning consultant or call 800-394-5240 with questions.
Will there be any changes to the loan provisions within the CHE
Trinity Health Retirement Savings Plans?
Yes. Effective January 1, 2015, the minimum loan amount which can be taken will be $1,000. Note that you are only allowed to have one loan outstanding for each eligible plan. The loan amount cannot exceed 50% of your vested balance or a maximum amount of $50,000 (less highest outstanding loan amount the past 12 months).
What will happen if I have two loans within one of my plans
transitioning over to Transamerica?
Effective January 1, 2015, only one outstanding loan will be allowed; however, those with two plan loans will be allowed to continue to repay as originally scheduled. All
Do I need to designate a new beneficiary if I already have one on file
with Lincoln?
Transamerica will map over all beneficiary information received from Lincoln during the transition. We would encourage you to sign in to your accounts after the transition is completed and review your beneficiary to ensure the proper beneficiary is listed. If you wish to change your beneficiary, or you do not currently have one on file with Lincoln, you may do so after the transition period is over by signing in to your account at https://retirechetrinity.trsretire.com. Once signed in to your Retirement Savings Plan, select the “Home” tab and then choose the “Beneficiaries” option. There is also an option to complete a beneficiary form that will cover all CHE Trinity Health Plans administered by Transamerica. You may also contact your local Transamerica retirement planning consultant or call 800-394-5240 for assistance.
Can you provide more detail about the Lincoln Stable Value Option
that will be available in the fund lineup effective January 2015?
The Lincoln Stable Value Separate Account is designed to provide plan participants with a guaranteed return of principal, along with attractive crediting rates and liquidity. With more than a century of investment expertise and sound riskmanagement, Lincoln offers a disciplined and conservative investment approach to stable value asset management.
For 2015 and 2016, the guaranteed minimum crediting rate for the fund will be 3.00%, net of fees. For 2017, the minimum crediting rate will be 2.50%. You will also be credited with any revenue generated by the investment option as follows: 2015 (.14%); 2016 (.18%); and 2017 (.18%).
Stable Value Transfer Restrictions
The Lincoln Stable Value Separate Account is subject to some transfer restrictions in order to prevent interest rate arbitrage during periods of sharply rising rates. The following restrictions apply:
Transfers from the Lincoln Stable Value Separate Account to the Vanguard Prime Money Market Fund, Templeton Global Bond Fund and/or
Self-Directed Brokerage Window are not permitted.
If a transfer is made from the Lincoln Stable Value Separate Account to any other investment option, subsequent transfers from any other investment option to the Vanguard Prime Money Market Fund, Templeton Global Bond Fund and/or Self-Directed Brokerage Window will not be permitted for a period of 90 days.
If a transfer is made from any investment option to the Vanguard Prime Money Market Fund, Templeton Global Bond Fund and/or Self-Directed Brokerage Window, subsequent transfers out of the Lincoln Stable Value Separate Account will not be permitted for a period of 90 days.
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Will my individual contracts currently at Lincoln or other outside
vendors also be included in the transfer to Transamerica?
No. Any individual contracts currently held at Lincoln or any other outside vendor are not available for this transfer and will remain where they are today. Please refer to your participant statement for information on these accounts. You may also contact your local Transamerica retirement planning consultant to assist with following up on questions you may have.
If I have balances in other CHE plans at Lincoln, will those also
transfer to Transamerica?
Yes. Other plans sponsored by Catholic Health East and maintained by Lincoln in addition to the 403(b) plan and the 401(k) plan will also be transitioning in the same manner to Transamerica. If you have balances in these other plans outside of the 403(b) plan and 401(k) plan, please contact your local retirement planning consultant for details about these plans.
Will Auto-Enrollment still be in effect under the new plan design?
Yes. Colleagues who are hired or rehired on or after January 1, 2015 will beautomatically enrolled in the plan at a contribution rate of 2%. Unless auto-enrolled colleagues actively choose other investment funds, their investment allocation will be directed to the plan's selected default option for both colleague and employer contributions. The qualified default investment option for the CHE Trinity Health Retirement Savings Plans is the Vanguard Target Date Fund most appropriate for their retirement year, based on retirement at age 65. If you transfer to a new CHE Trinity Health location and have at least 30 calendar days between payroll dates, you may be subject to the auto-enroll process upon your rehire date. For those new-hire or rehire colleagues who fall within the auto-enroll parameters, you will receive a notice in the mail detailing the auto-enroll process. The notice will also contain instructions on how and when you would be required to opt-out of the auto-enroll process should you make that determination. There is also a 90-day permissible withdrawal provision which will also be explained in the notice mailed to your home.
IMPORTANT NOTE:For those who receive an auto-enroll notice where your 30-day opt-out period would end during the quiet period (between December 26, 2014 and the week of January 12, 2015), your opt-out period will be extended through January 30, 2015. If you have any questions related to auto-enroll or the opt-out process, please feel free to contact your local Transamerica retirement planning consultant or call 800-394-5240.
Do the CHE Trinity Health Retirement Savings Plans offer a
Roth option?
No. Currently there is not a Roth savings option within the CHE Trinity Health Retirement Savings Plans. CHE Trinity will continue to evaluate whether or not this option will be offered in the future.
Will I be allowed to take a distribution from my 403(b)/401(k)
account while still employed?
The in-service withdrawal option only applies if you are age 59 ½ or older. Effective January 1, 2015, the total vested balance (including colleague contributions, vested match and core money sources) will be available for this type of withdrawal. Please sign in to your account after the end of the quiet period at https://retirechetrinity.trsretire.com, call Transamerica at 800-394-5240, or contact your local Transamerica retirement planning consultant with questions.
When is my last opportunity to request a distribution or loan from
Lincoln prior to the funds being transferred?
The last day that Lincoln will send distribution and loan paperwork to participants through the internet or voice response system is December 12, 2014. The last day Lincoln will accept distribution and loan paperwork to be processed is December 23, 2014. Distribution requests made after these dates for the mapped funds must be directed to Transamerica and will not be processed until after the quiet period is completed. The quiet period is the timeframe during which you will not have access to your current account for transfers, loans, withdrawals, or other transactions. The quiet period is expected to be completed the week of January 19, 2015.
Will I receive account statements?
Yes. You will receive statements from both Transamerica and Lincoln to confirm that the transition is complete. Your December 31, 2014 account statement from Lincoln will confirm the balance transfer out of your account to Transamerica. Transamerica will then send you an account activity statement each quarter beginning with your March 31, 2015 statement, which will reflect your account balance transfer to Transamerica. You can go green (go paperless) by signing up for e-documents: automatic email alerts when your statements and other account-related materials are available online.
What is happening to my current retirement benefits?
You will continue to earn retirement benefits as you do today throughDecember 31, 2014. You will not lose any vested benefits you earn through that date. If you are not vested on December 31, 2014, you will continue to earn vesting service for each calendar year that you earn at least 1,000 hours. Once you have three years of vesting service under the CHE 403(b)/401(k) Retirement Savings Plan or reached age 65 while actively employed at any CHE Trinity Health entity, your earned benefits are vested (they are yours to keep). In addition, we will honor the transition benefits outlined in the newsletter you received in October.
On January 1, 2015, you will start to earn employer contributions under the CHE Trinity Health Retirement Program design.
Under the Retirement Program design effective January 1, 2015,
how much do I need to contribute to the CHE Trinity Health
403(b)/401(k) Retirement Savings Plan account to get the maximum
employer contribution?
If you are eligible, you will automatically receive either 3% of your Retirement Program Pay or $1,200 (pro-rated for part-time employment) annually—whichever is greater— regardless of how much you contribute.
To receive the maximum employer service-based matching contribution (ranging from 25% to 75% of your contributions up to 6% of Retirement Program Pay, depending on your years of benefit service), contribute at least 6% of your Retirement Program Pay each year.
To assist colleagues in saving for retirement, new hires will be automatically enrolled at 2% of Retirement Program Pay. Colleagues can change their contribution or opt out at any time.
Will the Retirement Program design effective January 1, 2015,
provide adequate retirement income?
When both colleague and employer contributions are added together, the CHE Trinity Health 403(b)/401(k) Retirement Savings Plan provides a benefit that equals between 10.5% and 13.5% of your pay (if you save 6% of your Retirement Program Pay). Investment professionals recommend that employer and colleague savings target between 9% and 15% annually. The Retirement Program works with Social Security and your personal savings to assist you in meeting your retirement income needs.
What happens to my CHE 403(b)/401(k) Retirement Savings Plan
with Lincoln?
If you currently have a CHE 403(b)/401(k) Retirement Savings Plan account, this account will be transferred to the CHE Trinity Health 403(b)/401(k) Retirement Savings Plan with Transamerica.
Once I become eligible for the employer core contribution, how is
it determined?
Once eligible, the employer core contribution will be determined based on all year-to-date Retirement Program Pay. If you become eligible after earning 1,000 hours, your first deposit will be based on Retirement Program Pay earned year-to-date.
Where are my employer core and employer service-based matching
contributions deposited?
Beginning January 1, 2015, contributions will be deposited to your CHE Trinity Health 403(b)/401(k) Retirement Savings Plan account with Transamerica. If you do not have a Retirement Savings Plan account, one will be created for you and your contributions will be deposited in the plan's designated default fund. Any 2014 core contributions, matching contribution or transition benefits not yet deposited as of December 31, 2014, will be determined in early 2015 and deposited into your account with Transamerica.
What happens to my current benefit service?
For purposes of determining the employer service-based matching contribution, your benefit service earned through December 31, 2014, under the prior plans will be added to the service earned beginning on January 1, 2015. Beginning on January 1, 2015, you will earn one year of service for each calendar year you earn 1,000 hours. You will receive a letter in December giving you your estimated benefit service and vesting service through December 31, 2014.
What is fund revenue sharing?
As shown in the investment lineup chart, there may be what is referred to as “revenue sharing” paid by the fund family within certain funds. Effective January 1, 2015, you will be credited any revenue generated by the funds (per the new investment option chart) for which you are invested. This revenue generated by the funds is tracked and accrued daily and then credited monthly. The chart shows the current amounts paid, but these amounts are subject to change. You can view this activity by signing in to your account at https://retirechetrinity.trsretire.com after the first month's crediting has been posted on the last business day of January, 2015. You may also contact your local Transamerica retirement planning consultant or call 800-394-5240 with any questions you may have.
What happens to my account if I leave the organization?
If you leave the organization and have an account balance over $5,000, you can choose to leave your balance in the plan, where you’ll still have access to the investment funds and account tools that an active colleague has; or, you can choose to roll your account balance out of the plan. If you roll out your balance to another qualified retirement plan or rollover IRA, no taxes are levied on your account balance. If however you choose to take a cash distribution, regular taxes will apply (penalty taxes may also apply).
If you leave the organization and have an account balance between $1,000 and $5,000, a Transamerica rollover IRA will automatically be set up for you for your
account balance.
If you leave with an account balance under $1,000, your balance will automatically be cashed out to you, and taxes will apply (penalty taxes may also apply) unless you notify Transamerica that you want to roll over your balance to another qualified plan or IRA.
Who can I call for more information on my retirement benefits?
• For questions about your current CHE 403(b)/401(k) Retirement SavingsPlan benefits and legacy pension benefits through 2014, you can continue to contact Lincoln Financial at 800-234-3500 through late December.
• For questions about your CHE Trinity Health 403(b)/401(k) Retirement Savings Plan effective January 1, 2015, or this newsletter, you can contact Transamerica at 800-394-5240 or visit:
• https://cheretirementtransition.trsretire.com • Your onsite Transamerica representative at your RHM
The role of the retirement planning consultant is to assist you with your savings and
investment plan. There are no fees or commissions for meeting with your retirement planning consultant, who is a registered representative with Transamerica Investors Securities Corporation (TISC), 440 Mamaroneck Avenue, Harrison, NY 10528. CHE Trinity Health has selected Transamerica Retirement Solutions as your retirement plan provider, but there are no other affiliations between CHE Trinity Health and Transamerica or its affiliate, TISC.
