401(a) plan
Plan details
Welcome to the Lehigh Valley Health Network, Inc. Defined Contribution Retirement Plan. This is a 401(a) plan. If you are looking for information on another LVHN retirement plan, please visit the Plan Related Documents page.
The plan highlights noted below are only a brief overview of the plan's features and are not a legally binding document. The information in this section does not modify the terms of the plan and in the event of a conflict, the terms of the plan control.
You may also view print friendly 401(a) plan highlights below:
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Who is eligible?
All employees are eligible except independent contractors, employees covered by postgradute education agreement (residents), employees on long term disability disability who are receiving payment from the long-term disability plan; prior to January 1, 2007, employees who were leased to Muhlenberg Primary Care (MPC) and were covered by MPC’s 401(k) Plan; and employees currently covered for accruals under the Lehigh Valley Health Network, Inc. Retirement Plan. Please refer to your SPD for additional information.
All eligible employees must attain age 21 and complete 6 months of service, except Per Diem Employees. Eligible Per Diem Employees shall be eligible for employer contributions upon completion of 1 Year of Service.
You become eligible the first day of the plan quarter in which eligibility requirements are met.
Starting early has its advantages
Employer contributions
The employer contribution is based on years of service, as outlined below:
Employer contributions schedule
| Years of Service | Employer contribution formula |
|---|---|
| 0-4 | 2% |
| 5-9 | 4% |
| 10 or more | 6% |
Notwithstanding the above, eligibility for the next tier of contributions shall be based on the number of years of vesting service with which a Participant shall be credited during the quarter to which that quarterly contribution relates.
You must be employed on the last day of quarter to receive the contribution. This provision is waived due to death, disability, and early or normal retirement.
The contribution will be made on a quarterly basis. Credit for years of service is only applicable for those employees of participating employers. For a list of participating employers, please see the Summary Plan Description which can be found on the Plan Related Documents page. Years of service with employers not listed in this document will not be recognized.
Vesting
Vesting is 100% vested after completion of 3 years of service.
0 – 2 years: 0%
3 years: 100%
You may become 100% vested upon death, disability or retirement.
Important considerations before deciding to move funds either into or out of a Corebridge Retirement Services account
There are many things to consider. For starters, you will want to carefully review and compare your existing account and the new account, including: fees and charges; guarantees and benefits; and, any limitations under either of the accounts. Also, you will want to know whether a surrender of your current account could result in charges. Your financial professional can help you review these and other important considerations. Consult a tax professional before making a decision to move funds either into or out of a Corebridge account.
Accessing your money
Withdrawals
Money can be withdrawn from your 401(a) plan in these events:
- Retirement
- Separation from service
- Your death
- Qualified birth or adoption withdrawal within one year from the date of birth or adoption (not subject to the 10% early withdrawal penalty)
In addition, the Internal Revenue Service (IRS) requires you to take Required Minimum Distribution (RMD) withdrawals from your retirement account(s) annually beginning the year you reach the RMD eligible age. RMD eligible age is:
- Age 73 if you were born January 1, 1951, or later (The RMD eligible age will increase to age 75 after December 31, 2032)
- Age 72 if you were born after June 30, 1949, and before January 1, 1951 (For individuals turning age 72 in 2023, no RMD payment is required in 2023)
- Age 70 ½ if you were born before July 1, 1949.
Depending on your employer’s plan provisions, your withdrawal options include taking a lump-sum distribution.
Bear in mind that income taxes are payable upon withdrawal. Generally, income taxes must be paid on all amounts you withdraw from your plan. A 10% federal tax penalty for early withdrawal may apply to distributions taken prior to attainment of age 59½.
Loans
Loans are not allowed from this plan.
An array of investment choices
The following funds are available in your retirement plan. They provide you with the flexibility you need to create a suitably diversified portfolio that matches your personal retirement time horizon, investment risk tolerance and investment preferences.
Bear in mind that all investment involves risk and possible loss of principal. Investment values will fluctuate so that investments, when redeemed, may be worth more or less than their original cost.
To view or print a prospectus, access, “Prospectuses and Other Important Materials”. The prospectus contains the investment objectives, risks, charges, expenses and other information about the respective investment companies that you should consider carefully before investing. Please read the prospectus carefully before investing or sending money. You can also request a copy by calling 1.800.428.2542.
A 1293003 (11/2023)