Resources and Contacts: Savings & Retirement
Savings and Retirement
The SARP provides two ways for all eligible associates to save for their future:
The 401(k) plan offers you the opportunity to save up to 75% of your salary within the IRS limits the first 4% that you save is matched 100% by the company and vests immediately!
- Eligibility — 401(k): Immediate as long as you are at least 21 years old. Information will be mailed to your home explaining how you can begin saving through the 401(k).
- 401(k) Match: After one year of eligibility service.
Retirement Contributions (3)
The company will make annual contributions to your SARP account based on 3% of your pay up to $106,800 plus 6% over $106,800 up to $245,000 (4%, 8% respectively after 5 years of service). Retirement contributions provides you with additional income whether or not you’re saving in the 401(k). Retirement contributions begin vesting after 2 years and are fully vested after 6 years.
- Eligibility — In addition to meeting the eligibility requirements for the 401(k) above, you must be employed on December 31, and worked at least 1,000 hours during the payroll calendar year.
You are immediately 100% vested in the 401(k) Company Match.
The retirement contribution is subject to a six-year vesting schedule. You receive vesting credit for each year you work 1,000 hours or more. You become 20% vested in the Retirement Contribution after two years of vesting service. Your vesting increases 20% each year until six years of vesting service when you are 100% vested.
The SARP offers several investment funds from which you can choose to invest your retirement monies.
1. If you are an associate earning wages of $110,000 or more, you will not be eligible to participate in the dependent care flexible spending account in 2011. You will be eligible to participate in the health care flexible spending account.
2. 2011: IRS 401(k) Annual Maximum = $16,500, IRS Qualified Plan Maximum Compensation Limit = $245,000, Social Security Wage Base (SSWB) Limit = $106,800
3. During your first year of participation your Retirement Contribution under the SARP will be prorated based on compensation earned after you become eligible for the SARP. You must be actively employed on December 31 to receive these benefits.