Group Health Retirement Planning
Get fit for your future
Important Retirement Program Update:
Take Action Now To Continue Current Retirement Savings Rate
From: Group Health Human Resources
Date: September 2009
Starting with the October 30, 2009 paycheck, OPEIU-represented staff who participate in The Retirement Income
Credit Plan for Employees of Group Health Cooperative (the “Plan”) will no longer be required (or allowed) to
make a contribution to the separate retirement savings account known as the “2 Percent Account.”
Right now, when you participate in the Plan, which is also referred to as the “Defined Benefit Plan,” you earn
credit toward a monthly pension benefit that is fully funded by Group Health. You are also required to contribute
two percent of your pay to a separate retirement savings account. When you retire, you’ll have both a monthly
pension for life plus the money in the separate “2 Percent Account.”
The monthly pension benefit in the Plan is not changing, and you’ll keep your existing 2 Percent Account, subject
to future increases (or decreases) in the account balance resulting from investment earnings (or losses). However,
in bargaining earlier this year, Group Health and OPEIU agreed to end the requirement that you contribute to the
2 Percent Account after the October 16, 2009 paycheck. As a result, Group Health will cease accepting 2 Percent
Account contributions, and will cease deducting 2 Percent Account contributions from your paycheck, after that
paycheck. This means that while your take-home pay will increase, your retirement savings rate will decrease
unless you take action. Since saving for retirement is so important, we strongly encourage you to redirect your two
percent contribution into the 403(b)(7) Custodial Account Plan (the “403(b)(7) Plan”), where (starting with the first
paycheck in January 2010) your contributions may be eligible for matching contributions made by Group Health.*
What’s Happening At A Glance
What’s Happening
Things to Consider
• You will no longer contribute to your 2 Percent Account,
starting with your October 30, 2009 paycheck
• You keep your existing 2 Percent Account and can
change and monitor investments as usual
• The Group Health defined benefit pension benefit is not
changing
• Your take-home pay will increase if you do nothing
• However, you will be saving less for retirement unless
you take action
• We strongly encourage you to continue investing in
your financial future by putting the two percent into
your 403(b) Plan (where starting with the first paycheck
in January 2010, your contributions may be eligible for
matching contributions)*
*Note: Starting with your first paycheck in January 2010 (on January 8) Group Health will match 50 percent of your personal contribution up to
4 percent of your pay. If you are already contributing 4 percent or more of your pay to the 403(b)(7) Plan, additional contributions will not be
eligible for matching contributions. IRS-mandated limits on an individual’s annual contributions to 403(b) plans may apply.
(over, please)
9/09
To Continue Your Current Retirement Savings Rate
Follow these instructions to redirect your two percent contributions to the 403(b)(7) plan—and continue your current retirement savings rate without interruption:
1. Contact T. Rowe Price, the 403(b)(7) Plan administrator, at http://rps.troweprice.com or call 1-800-922-9945.
(You can speak directly with a representative if you call Monday through Friday, 4 a.m. to 7 p.m. Pacific time.
Enter your Social Security number when prompted, then press the “#” key, then “0.”)
2. Increase your 403(b)(7) contribution by two percent (or enroll in the 403(b) Plan for the first time).
You can make this change anytime, but to continue your current retirement savings contribution rate without
interruption, you will need to take action between Friday, October 9 and Thursday, October 22, 2009.
If You Have Questions
For more information about the 403(b)(7) Plan, go to InContext and search for “HR-Benefits 403(b) retirement
savings” or contact T. Rowe Price.
If you have questions about your pension benefit under the Retirement Income Credit Plan, contact the
Milliman Benefits Service Center, Monday through Friday, 6 a.m. to 5 p.m., at 1-888-302-3943, or e-mail
[email protected].
Or, for general questions about the Group Health retirement program, contact the HR Service Center at
206-988-7777 (CDS 600-7777) or e-mail [email protected].
Sincerely,
Becky Bussey
Director, Compensation and Benefits
200626_ltr_rtr_0909