15.02.2015 Views

403(b) Enrollment Booklet - Unity Health System

403(b) Enrollment Booklet - Unity Health System

403(b) Enrollment Booklet - Unity Health System

SHOW MORE
SHOW LESS

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

2

Maximize Your Plan

q

q

q

q

q

q

q

q

Enroll today and maximize the employer match. Sign in to Diversified Online at divinvest.com or call

888-676-5512.

Catch up on your contributions (must be age 50 or older).

Designate your beneficiary. Complete the Beneficiary Designation form, and follow the instructions on

the form for mailing.

Reduce your clutter. Sign up for e-documents today at divinvest.com.

Sign up for SaveXpress. Go to "Transactions" and click on "Deferrals."

Rebalance your account automatically by using Auto Rebalance. Go to "Transactions" and click on

"Auto Rebalance."

Use RetireTrack. Go to "Retirement Planning" and click on "RetireTrack."

For retirement counseling, just call 800-755-5801 or visit Diversified Online.

As an active participant, you can access your retirement account 24/7 by signing in to

divinvest.com or calling Diversified toll-free at 800-755-5801.

You can also speak with a Contact Center Representative for enrollment assistance, investment

guidance and retirement planning support. Representatives are available Monday through Friday, 8

a.m.-9 p.m. EST.

First-time online users

divinvest.com

First-time callers

888-676-5512

Questions Visit divinvest.com

1


0

Plan Highlights

Unity Health System TSA Savings Plan is a valuable employee benefit and one of the most powerful ways to

build your retirement savings.

Take a few minutes now to read through these plan highlights and learn more about all the features and

benefits your plan includes. You'll find more about when you can join, how much you can contribute, when

you can make changes, and how you can access your savings.

Keep in mind this is simply a quick overview of your benefits. For complete details or plan updates, please

refer to your Summary Plan Description (SPD).

Unity Health System TSA Savings Plan

Eligibility

Eligibility provisions vary by contribution(s) and/or group(s) as outlined below:

Voluntary Deduct

You are immediately eligible to participate in the plan for purposes of this contribution. You may join

the plan for purposes of this contribution on the first day of the next payroll period.

Employer Match

You are immediately eligible to participate in the plan for purposes of this contribution. You may join

the plan for purposes of this contribution at any time.

To receive the Employer Match you need to complete 1 year of service and work 1,000 hours.

You are not eligible for the Employer Match if you are in one of the following groups:

• Employees of a controlled group Employer that does not affirmatively adopt this Plan

If you are in the following group, you are not eligible to participate in the plan:

• Employees covered under a collective bargaining agreement that does not provide for participation

in the plan

• Leased employees

Your Contributions

You may choose to make pre-tax contributions from 1% up to 100% of your pay.

• You may increase or decrease your contributions each payroll period. You may stop your

contributions at any time.

For your deferral amount, you can elect a percentage per pay period.

Questions Visit divinvest.com

2


Your Contributions

(continued)

Your plan offers SaveXpress, a feature that allows you to elect to have your savings amount automatically

increased each year. You can sign up for SaveXpress on Diversified Direct Online at www.divinvest.com.

An annual IRS dollar limit of $17,000 applies for 2012. This limit is indexed annually by the IRS.

If you are age 50 or older (or you reach age 50 during the current calendar year), you can make

additional catch-up contributions up to $5,500 in 2012. This limit is indexed annually by the IRS.

If you have an existing retirement plan account with a prior employer, you may roll over that account into

this plan at any time. To initiate a rollover of a retirement account with a prior employer, complete the

form.

If you have an existing 403(b) retirement plan account with your employer, but invested with a different

provider (or another separate 403(b) retirement account also with your current employer), you can rollover

your accounts by making a transfer of those account(s) either through a contract exchange (within the

same 403(b) plan) or a plan-to-plan transfer (between two separate 403(b) plans). To do so, complete the

appropriate transfer deposit form.

Employer Contributions

Unity Health System provides a matching contribution of 25% of the first 4% deferred up to a maximum of

1% of your pay.

Vesting

Vesting refers to your "ownership" of your account. You are always 100% vested in your contributions to

this plan, including any rollover or transfer contributions you have made, plus any earnings on those

contributions.

You are 100% vested in your employer contribution after 3 years of service.

Loans

You may borrow from the plan, using your account as security (conditions and restrictions may apply).

Minimum loan amount

$1,000

Maximum loan amount

50% of your vested account balance, up to $50,000

General loan interest rate

Prime interest rate (as stated in the Wall Street Journal) plus 1%

Home loan interest rate

Prime interest rate (as stated in the Wall Street Journal) plus 1%

Maximum general loan term

5 years

Maximum home loan term

10 years

Questions Visit divinvest.com

3


Loans

(continued)

General loan fee

A one-time set-up fee of $75 per loan will be deducted from your account

Home loan fee

A one-time set-up fee of $75 per loan will be deducted from your account

Maximum numb er of outstanding loans

2

Withdrawals

You may withdraw vested funds from your plan account in these events (conditions and restrictions may

apply as defined in the plan):

• Retirement at plan's normal retirement age of 65

• Termination of employment

• Attainment of age 59.5

• Financial hardship as defined in the plan

• Disability

• Death

Investment Direction

You decide how your account will be invested among the available investment options. You may change

your investment allocation 99 times per plan year.

Transfers among investment options may be made at any time, and subject to certain restrictions

described below.The available investment options are presented below in groups to illustrate the

applicable transfer restrictions.

Investment Group A : Guaranteed Pooled (TFLIC Guaranteed Pooled Fund )

Investment Group B : Transamerica Partners Institutional Money Market

Investment Group C: All other funds

Monies in a Group A investment option cannot be transferred to a Group B investment option. Monies

transferred out of a Group A to a Group C fund can be transferred back at any time by calling

800-755-5801.

Additional transfer conditions and restrictions may apply. Certain investment options may impose trading

restrictions and/or redemption fees as a result of frequent trading activity. Please contact Diversified for

more information.

Questions Visit divinvest.com

4


Expenses

A plan service credit will be added to your account based on your account balance in the investment

options as shown below. These are annual percentages; however, crediting frequency may differ. Please

note that this lowers the effective annual expense ratios; the performance shown in the Fund Profiles

would have been better if the plan service credit was taken into account.

Fund Name

Plan Service Credit

TFLIC Guaranteed Pooled Fund 0.200%

Beneficiary Designation

It is very important that you designate a beneficiary for your retirement account, so that your assets can be

distributed according to your wishes upon your death. Please complete the Beneficiary Designation form,

and follow the instructions on the form for mailing.

Summary Plan Description

For more information about any of the plan provisions including any conditions or restrictions that may

apply, please refer to the Summary Plan Description or call Diversified at 888-676-5512. These plan

highlights represent only an overview of plan provisions and do not constitute a legally binding document.

404(c) Notice

Unity Health System TSA Savings Plan is intended to be a 404(c) plan as described in detail in Section

404(c) (ERISA) and final regulation 2550.404c-1. This means that you have the flexibility (and responsibility)

to choose among the options provided under the plan in a way that best meets your objectives. In general,

by providing you with this ability and a variety of investments, your employer and plan administrator are not

liable for any losses that occur as a direct result of investment in the available options as directed by you or

your beneficiary.

Questions Visit divinvest.com

5


In addition to the information contained in this booklet, the following information can be obtained upon

request:

• A list of the assets comprising the portfolio of each investment option which will constitute "plan

assets" under Reg. 2510.3-101, and the value of each such asset and, with respect to any fixed fund,

the rate of return and its maturity date.

• Information regarding the value of shares or units in the investment options, as well as the past and

current investment performance of each option, net of expenses. (Please see your account statement.)

• Information regarding the value of shares or units held in your account. (Please see your account

statement.)

To obtain any of the above information, please contact:

Attn: Anne Fagioli

Plan Administrator

Unity Health System

89 Genesee Street

Rochester, NY 14611

Phone: 585-368-3528

Questions Visit divinvest.com

6


Determine

Your Savings

Goal

How much income

can you expect from

Social Security

Request your estimate at

ssa.gov or 800-772-1213.

You may need more income than you think.

The income you'll need in retirement depends greatly on your circumstances, including your age, health,

income, investments, and savings. Based on today's average life expectancy, you may need your nest egg to

last for 20 years or more. And don't forget about rising health care costs. In fact, a leading study estimates that

you may need 77% to over 94% of your final preretirement income to maintain your lifestyle after your regular

paychecks stop.1

Most of your income will come from you.

Social Security covers only about 37%* of the average retiree's income, and fewer employers offer traditional

pension plans. In reality, most of your retirement income will likely come from your own savings, part-time

employment in retirement, or both. If your goal is to live comfortably and work less in retirement, you need to

start saving today.

SOURCES OF RETIREMENT INCOME*

*Fast Facts & Figures About Social

Security, 2011.

Total does not necessarily equal 100%

due to rounding.

Aim for a perfect 10.

Try to save at least 10% of your pay for retirement. If that seems like too much now, start smaller by putting

away at least enough to earn your full company match. Then raise your rate gradually by, say, 1% a year on your

birthday. In fact, Diversified's automatic SaveXpress service can make saving more a piece of cake! That's a gift

that keeps on growing!

1 Aon Consulting, 2008 Replacement Ratio Study.

Questions Visit divinvest.com

7


Investment Solutions

Your Retirement Plan makes it easy to choose an investment strategy—and easy to maintain or adjust your

strategy over time.

Choose a one-step solution

Make it automatic with PortfolioXpress®

If your financial picture is relatively straightforward, consider PortfolioXpress. This service establishes an

investment mix based on the retirement year you select. Then it regularly rebalances your account to a more

conservative mix over time. It's a solution for people who are saving for retirement and want automatic

diversification. You can subscribe to PortfolioXpress at divinvest.com.

PortfolioXpress® is a registered service mark of Diversified Retirement Corporation (Diversified). PortfolioXpress

presents a series of asset allocation models up to and through a designated retirement year. You are solely

responsible for choosing the retirement year. In implementing the service, you agree to each of the asset

allocation mixes and automated rebalancing transactions that will take place over time within your account as

you approach the selected retirement year. If you sign up, you should carefully review the service agreement for

additional information regarding fees and other terms and conditions that may apply to this service. Retirement

date portfolios are subject to the same risks as the underlying asset classes in which they invest. The higher the

portfolio's allocation is to stocks, the greater the risk. The principal value of the portfolio is not guaranteed at any

time, including at and after the target date.

Choose a fund that corresponds to your retirement date or time horizon

Select a target date fund that corresponds to your expected retirement year. Target Date Funds automatically

move to a more conservative investment mix as they approach a target year. By investing in a combination of

asset classes, these funds are designed to be automatically diversified.

· BlackRock LifePath Retirement Investor A

· BlackRock LifePath 2020 Investor A

· BlackRock LifePath 2030 Investor A

· BlackRock LifePath 2040 Investor A

Target date funds are subject to the same risks as the underlying assets in which they invest. Each fund's asset

allocation becomes more conservative over time: The percentage of assets allocated to stocks will decrease,

while the percentage allocated to bonds will increase, as you approach the target date. The higher the fund's

allocation is to stocks, the greater the risk. The target year represents approximately when the fund's managers

assume the typical investor plans to start withdrawing their money. The fund's principal value is never

guaranteed, including at and after the target. You can lose money by investing in a target date fund, including

near and following retirement. There is no guarantee that the fund will provide adequate retirement income.

Do it yourself

Create your own investing strategy

Questions Visit divinvest.com

8


You can also create your own investment mix using the funds available in your plan. These funds offer flexibility

for both new and experienced investors. With this approach, you can develop an investing strategy that is

tailored just for you.

To supplement the investment funds offered under your plan, you may choose to open a Schwab Personal

Choice Retirement Account® (PCRA). PCRA is a self-directed investment option that allows you to direct

purchases and sales within your account, investment options other than those offered under the plan. By

establishing a PCRA, you assume responsibility for controlling your investments. For more information on

establishing and maintaining a PCRA, please call Diversified at 800-755-5801.

Put your retirement on the right track with RetireTrack

You may also use RetireTrack, an online tool designed to help you analyze your investment allocation and

model alternative strategies. Log onto your account at divinvest.com, go to "Retirement Planning", then

click on "RetireTrack."

Important: The projections or other information generated by RetireTrack regarding the likelihood of

various investment outcomes are hypothetical in nature, do not reflect actual investment results and

are not guarantees of future results. Results derived from the RetireTrack tool may vary with each use

and over time. Please visit RetireTrack for more information regarding the criteria and methodology used,

the tool's limitations and key assumptions and other important information.

Questions Visit divinvest.com

9


Sample Investment Mixes

Bonds

Use My Mix column to create your own investment mix.

My Mix

30+ Years to

Retirement

20 Years to

Retirement

10 Years to

Retirement

At Retirement

10 Years into

Retirement

Short Bonds/Stable/MMkt

Transamerica Partners Institutional Money Market % 0% 0% 1% 2% 3%

TFLIC Guaranteed Pooled Fund % 0% 0% 2% 6% 8%

Interm./Long-Term Bonds

PIMCO Total Return Admin % 2% 9% 17% 23% 28%

Transamerica Partners Institutional Inflation-Protected

Securities

% 1% 4% 8% 11% 13%

Aggressive Bonds

MainStay High Yield Corporate Bond I % 2% 4% 5% 6% 8%

Total Bonds 5% 17% 33% 48% 60%

Stocks

Large-Cap Stocks

My Mix

MFS Value R3 % 14% 13% 11% 9% 7%

American Funds Fundamental Invs R4 % 7% 6% 5% 4% 3%

Transamerica Partners Institutional Stock Index % 8% 7% 6% 5% 4%

American Funds Growth Fund of Amer R4 % 14% 13% 11% 9% 7%

Small/Mid-Cap Stocks

T. Rowe Price Mid-Cap Value % 4% 4% 3% 2% 1%

Vanguard Mid Capitalization Index Signal % 4% 3% 2% 2% 1%

BlackRock US Opportunities Instl % 4% 4% 3% 2% 2%

Columbia Small Cap Value I Z % 4% 4% 3% 2% 2%

Keeley Small Cap Value A % 5% 3% 3% 2% 2%

Invesco Small Cap Growth R5 % 5% 4% 3% 2% 2%

International Stocks

Oakmark International I % 20% 17% 13% 10% 7%

Oppenheimer Developing Markets Y % 6% 5% 4% 3% 2%

Total Stocks 95% 83% 67% 52% 40%

Multi-Asset/Other

Multi-Asset/Other Funds

Personal Choice Retirement Account

BlackRock LifePath Retirement Investor A

BlackRock LifePath 2020 Investor A

BlackRock LifePath 2030 Investor A

BlackRock LifePath 2040 Investor A

Total Multi-Asset/Other

My Mix

Total 100%

Questions Visit divinvest.com

10


For more information on any registered fund, please call Diversified at 800-755-5801 for a free summary

prospectus (if available) and/or prospectus. You should consider the investment 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.

Diversified Investors Securities Corp. (DISC), 440 Mamaroneck Avenue, Harrison, NY, 10528, distributes

securities products. Any mutual fund offered under the plan is distributed by that particular fund's associated

fund family and its affiliated broker-dealer or other broker-dealers with effective selling agreements such as DISC.

Bank collective trusts funds, if offered under the plan, are not insured by the FDIC, the Federal Reserve Bank or

any other government agency and are not registered with the Securities and Exchange Commission. Group

annuity contracts, if offered under the plan, are made available through the applicable insurance company. Any

guarantee of principal and/or interest under a group annuity contract is subject to the claims-paying ability of the

applicable insurer. Certain investment options made available under the plan may be offered through affiliates of

Diversified Retirement Corporation (Diversified) and DISC. These may include: (1) the Transamerica Funds

(registered mutual funds distributed by Transamerica Capital, Inc. (TCI) and advised by Transamerica Asset

Management, Inc. (TAM)); (2) the Diversified Investment Advisors Collective Trust, a collective trust fund of

Massachusetts Fidelity Trust Company (MFTC) (includes the Stable Pooled Fund); (3) group annuity contracts

issued by Transamerica Financial Life Insurance Company (TFLIC), 440 Mamaroneck Avenue, Harrison, NY

10528 (includes the Stable Fund, the Fixed Fund, the Guaranteed Pooled Fund, and SecurePath for Life); and

(4) group annuity contracts issued by Transamerica Life Insurance Company (TLIC), 4333 Edgewood Road NE,

Cedar Rapids, IA 52499 (includes SecurePath for Life). Unity Health System has selected Diversified as your

retirement plan provider, but there are no other affiliations between Unity Health System and Diversified, DISC,

TCI, TAM, MFTC, TFLIC, or TLIC.

Your plan may not offer funds representative of all the styles considered in the construction of the sample

investment mixes. If applicable, SecurePath for Life and any funds listed in the Multi-Asset/Other category do not

generally represent the characteristics of a given asset sub-class and so have not been incorporated into any of

the sample investment mixes. Investors who understand these options and any inherent risks may wish to

allocate a portion of their accounts accordingly.

All funds were assigned to asset classes based on information provided by independent firms that track the

investment fund industry, or from the fund family. Although information on funds is gathered from sources

believed to be reliable, Diversified does not guarantee the completeness, accuracy, timeliness or reliability of the

data, which is subject to change at any time. The information provided for the funds is for informational purposes

only and should not be construed as an endorsement or recommendation by Diversified nor be the basis of any

investment decision. Target date funds are subject to the same risks as the underlying asset classes in which

they invest. The fund's asset allocation becomes more conservative over time, meaning that the percentage of

assets allocated to stocks will decrease while the percentage of assets allocated to bonds will increase as you

approach the target date. The higher the fund's allocation is to stocks, the greater the risk. The significance of

the fund's target date is that it is the date at or around which the fund assumes you plan to start withdrawing

your money. The principal value of the fund is not guaranteed at any time, including at and after the target date.

You may lose money by investing in this fund, including losses near and following retirement. There is no

guarantee that the fund will provide adequate retirement income.

Diversified or its affiliates may receive remuneration from the fund family or its service provider for providing

certain record keeping or other administrative services.

Questions Visit divinvest.com

11


This page intentionally left blank.


Imagine

Your Future,

Plan Today

Enroll today and

Brighten your

brighten your

financial future.

financial future.

Unity Health System TSA Savings

Plan

TT069042 00001

PT-3447 (10/12)


Welcome

to Your Plan

Whether your retirement is five or fifty years away, Unity Health System TSA Savings Plan

offers a powerful way to enhance your long-term financial well-being. We encourage you to

invest in yourself and your future by participating in this plan through Diversified.

Diversified is a firm dedicated exclusively to providing retirement savings plans. We focus

all our resources on giving you the planning tools and guidance you need to achieve your

retirement goals.

From the day you're hired through the years you're retired, this Plan of a Lifetime program

will support you through each stage of the retirement planning process. Whether you're

joining a retirement plan for the first time, already participating in the plan or soon

approaching retirement, Diversified will be with you every step of the way.

Please read through this kit so you can better understand this valuable program. And be

sure to enroll as soon as possible so you can begin maximizing this benefit!

Sincerely,

Pete Kunkel

President and CEO

Diversified

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!