Even saving a little bit now can add up to a significant savings in the future due to the effect of compounding returns and tax-advantaged savings. The more engaged and planful you are, the better off you could be once you retire. To maximize your retirement plan benefits, it’s important to take note of the following:

  1. As a new employee, you will be automatically enrolled in the 403(b) plan. New employees or rehired employees will be automatically enrolled in the plan at a 3% contribution rate. Franciscan realizes that, as a new hire, you have a lot on your plate. Automatic enrollment makes saving for retirement one less thing you have to worry about.

    Automatic contributions to the plan will begin approximately 2-3 pay periods after your hire date. 

  2. You will need to register online to gain access to your account. Even though you will be automatically enrolled in the plan, you will still need to register to gain access to your retirement plan account and take advantage of all plan features and online tools. To register, click here

  3. You can start, stop or change your contributions at any time. If you decide to stop or change your automatic enrollment contribution of 3% prior to the activation date (the date for which the first 3% automatic contribution is taken out of your paycheck), you must first enroll online. To enroll, you will need to know your access code which is determined by your work location. Find your access code and steps to enroll on the enrollment page. Follow the same process if you are not currently enrolled in the plan and wish to begin making contributions.

    Once you are enrolled in the plan and actively contributing, make sure you are registered online (see #2 above) to access your account and make any future contribution changes.

    If you wish to stop contributions during the first 90 days, beginning with the date that the first automatic contribution was made, you may request a permissive distribution from the plan. Please see below for details.

  4. Make sure to designate a beneficiary. One of the biggest mistakes that people make is not designating a beneficiary for their retirement plan account. Naming a beneficiary will allow you to retain control of who receives any money in your retirement account after you die. You may name one or more beneficiaries (as primaries or contingencies) and can make changes as often as you’d like. You may also designate a trust or charitable organization. To designate a beneficiary, log in to your online account.

  5. Retirement planning education and resources are available. There is a wealth of resources available to help you plan for retirement. Visit the Financial Education section to gain access to live webinars, educational articles, and interactive tools.  To find out if you need to save more, try out the Savings Calculator to see how much saving 3% annually may yield you in retirement.

  6. Schedule time with a financial professional. One of the most important steps you can take is to meet with a financial professional to discuss your personal financial situation and retirement goals. Franciscan has a dedicated team of financial professionals available to assist with a wide variety of financial planning needs and to make sure you stay on track as you near retirement. Meeting with a financial professional is a part of your plan benefit and is done at no cost to you. Visit the Contact Us page to schedule time now.

  7. Understand your plans. If you haven’t already done so, take a look at your retirement plan highlights. This document provides a good overview of both the Franciscan Alliance, Inc. 403(b) plan and the Franciscan Alliance, Inc. 401(a) Employer Contribution Plan.

    Franciscan Alliance Retirement Plan Highlights

    Permissive Distribution Form Auto-Enrollment

    If you were auto-enrolled in the plan, and do not wish to participate, you can stop your plan contributions at any time. Contribution changes can be made online through this site (be sure to register to do so). After you stop contributions, you may request a permissive distribution from the plan for any money that was automatically deducted from your pay during the first 90 days; beginning with the date the first automatic contribution was made. In order to avoid a 10% early withdrawal penalty, this request must be made within that 90-day time period. Please keep in mind that your distribution will still be subject to normal state and federal income taxes. To initiate a withdrawal during that 90-day time period, please click on the appropriate plan form below:

    Franciscan Alliance Inc. 403(b) plan

Questions about any of the above? Contact one of your plan’s dedicated financial professionals.