HSHS Retirement Program
The HSHS retirement program provides a comprehensive retirement benefit designed to help you build financial resources for your future.
The HSHS retirement program includes the:
- HSHS Employer Contribution Retirement Plan (“401(a) Plan”), effective January 1, 2023, featuring an account balance that shows the value of your accumulated benefit. You automatically participate in the 401(a) Plan and HSHS makes all the contributions. HSHS makes contributions to your account each year of 3% to 7% of your eligible pay (in whole percentages), depending on your years of service (contributions increase as your service increases in five-year increments).
- HSHS 403(b) Retirement Savings Plan (“403(b) Plan”) with matching contributions from HSHS of 50¢ for every $1 you save on the first 4% of your eligible pay.
Eligibility
HSHS colleagues hired or rehired on or after July 1, 2014 are eligible for the HSHS retirement program as described in this Guide if working for a participating employer on or after January 1, 2023. The following colleagues are not eligible:
- Colleagues who are members of a collective bargaining unit whose contract does not provide for membership in the HSHS 401(a) Plan.
- Temporary or leased colleagues, as classified by the Internal Revenue Service.
Medical residents are not eligible for 401(a) Plan benefits. However, they can participate in the non-matching HSHS 403(b) Retirement Savings Plan.
Watch the video below to see how the two different plans combined contribute to your overall retirement savings and offer our colleagues at HSHS a great retirement benefit.
HSHS Employer Contribution Retirement Plan (401(a) Plan)
The HSHS Employer Contribution Retirement Plan (401(a) Plan) is an important source of your overall retirement income – funded entirely by HSHS. It rewards your service with higher contributions as your years of service increase and forms the foundation of the retirement income you build. If eligible, you are automatically enrolled.
Your 401(a) Plan account grows through:
- HSHS contributions of 3% to 7% of your eligible pay, depending on your years of service.
- Investment earnings.
You are fully vested (100%) in all contributions after three years of vesting service. Service prior to 2023 counts toward your contribution percentage and your vesting service.
The 401(a) Plan: What’s in It for You
- An account balance that can grow through contributions from HSHS and investment earnings (depending on performance of the investments you choose)
- Higher contributions over time to reward your service
- A benefit you can take with you if you terminate employment with HSHS after three years of vesting service.
How HSHS Contributions Work
Annual contributions are a percentage of your eligible pay and is the amount HSHS adds to your account for each calendar year in which you are paid for at least 1,000 hours. Your contribution percentage depends on your years of service as of the end of the current year. The following chart shows how contribution percentages for each year are determined based on your service as of December 31 of the current year.
| If your years of service are... |
Your annual contribution provided by HSHS will be |
| 1 - 5 |
3% of pay |
| 6 - 10 |
4% of pay |
| 11 - 15 |
5% of pay |
| 16 - 20 |
6% of pay |
| 21+ |
7% of pay |
Announcements
HSHS 403(b) Retirement Savings Plan
The HSHS 403(b) Plan gives you the opportunity to build on the foundation of your 401(a) Plan benefit. It’s an important source of your overall retirement income.
Your 403(b) Plan account grows through:
- Your contributions – up to 100% of your pay up to IRS limits ($22,500 in 2023, or $30,000 if age 50 or older).
- HSHS matching contributions – 50 cents for every dollar you contribute up to 4% of your pay (subject to IRS limits, $330,000 in 2023)
- Investment earnings.
You are always fully vested (100%) in all contributions.
Automatic Enrollment – 60 Days After Hire Date
At HSHS, we believe that retirement saving is part of financial well-being – with active planning and investing at every stage in your career. To encourage early investing and simplify the 403(b) Plan enrollment process, all eligible HSHS colleagues hired or rehired with HSHS on or after July 1, 2014 are enrolled automatically 60 days after their date of hire at a 4% of pay contribution level. And unless you choose otherwise, your contribution level will continue to increase by 1% each year until you’re eventually contributing 8% of your pay.
These automatic contributions will be invested in the Vanguard Target Retirement Funds based on your date of birth, unless you choose different investment options.
You can increase, decrease, or stop your contributions at any time.
How The Match Works
HSHS contributes 50 cents for every dollar you contribute on the first 4% of your eligible pay. Contributions that are made in each calendar year in which you are paid for at least 1,000 hours are matched, if you are actively employed on December 31st of that year. The maximum match you can receive in a calendar year is 2% of eligible pay. Colleagues terminating employment during the year due to death, disability, or after reaching age 55 are also eligible to receive matching contributions.
Additional Retirement Plan Resources