Did you know you are eligible to enroll in the Texas Children’s Hospital 403(b) Savings Plan? It’s a great benefit and an easy, disciplined way to save for retirement. Making even a small contribution each pay period can really add up over time.
Perhaps your situation has changed since you first learned about the organization’s retirement program or maybe you just need a quick reminder. Either way, here are a few reasons to enroll in the 403(b) Savings Plan today:
The more you prepare now, the more comfortable your future will be when you retire. If you have a personal retirement plan, you will be less dependent on the government’s social security retirement benefit program, the future solvency of which is unknown.
Texas Children’s will match up to 50 percent of the first 6 percent of your pay per pay period, helping you boost your retirement savings and reach your goals faster. The maximum per pay period employer contribution is the lesser of 3 percent of your gross salary or 50 percent of your contribution.
Need another reason to enroll? The sooner you begin saving, the more time your money has for potential growth. For example, an employee with a $20,000 annual salary who is contributing 6 percent of their earnings to the 403(b) Savings Plan could save $117,000 in 30 years versus $50,000 in 20 years, assuming a 7 percent annual rate of return.
You are always 100 percent vested in your contributions to the plan as well as any earnings on them. Texas Children’s matching contributions and any earnings vest according to the following schedule:
- 1 year of vesting service – 20 percent vested
- 2 years – 40 percent
- 3 years – 60 percent
- 4 years – 80 percent
- 5 years – 100 percent
You are eligible to receive your vested earnings when you retire or leave Texas Children’s.
To enroll in the Fidelity-managed 403(b) Savings Plan, click here or call 800-343-0860. It only takes 60 seconds! To track your earnings, go to www.netbenefits.com/atwork.
For more information, schedule your on campus in person investment review with a Fidelity representative, call 800-642-7131, Monday – Friday 8 a.m. to 11 a.m. Central Time or go online at http://getguidance.fidelity.com. You also can call a Fidelity Workplace Planning and Guidance Consultant at 866-711-0352.
Thank you for exemplifying our core values, especially Embracing Freedom – with freedom comes opportunity. Boundless, wide open and unknown, it can be daunting to some, but we recognize the potential in the unexplored and venture forward, blazing our own trail in the name of care.