All associates are automatically enrolled* in The Nemours Foundation Section 403(b) Plan with a contribution rate of 4%. This is a tax-deferred savings plan that provides employee payroll contributions and Nemours contributions to eligible associates. Associate contributions begin on the first paycheck following 30 days of employment and are automatically invested in a default investment. Associates may opt out or change their contribution percentage or investment election at any time. Associates may contribute up to the IRS limits. For 2025, we anticipate the annual contribution limit will be $23,00 for associates under 50 years of age. Associates age 50 or older may contribute up to $31,00. Your contributions are always 100% vested. For eligible associates, the plan provides a 50% Nemours matching contribution up to 4% of eligible pay (maximum match of 2% of eligible pay), and a service-based Nemours contribution (ranging from 3% to 8% of eligible pay) made quarterly. Associates who are not scheduled to work at least 1,000 hours in a year must complete at least 1,000 hours of service before being eligible for Nemours contributions.
Associates who are not eligible for Nemours contributions may still make voluntary payroll contributions to the 403(b) plan with traditional pre-tax or Roth after-tax contributions.
*Note: Once you are automatically enrolled, please remember to designate a beneficiary to ensure your financial assets are allocated according to your wishes upon your passing.
403(b) Summary Plan Description
403(b) Enrollment Booklet
Nemours Matching Contribution
Eligible associates will receive a Nemours match each pay period equal to $0.50 on each dollar you contribute on contributions up to 4% of eligible pay, up to a maximum match of 2% of eligible pay. Effective Jan. 1, 2022, the Nemours matching contributions for new hires are 100% vested after three years of service. Matching contributions for associates hired prior to Jan. 1, 2022, are 100% vested.
Note: Casual and part-time associates will be eligible for Nemours matching and quarterly base contributions after one year of service. A year of service is earned after you work at least 1,000 hours within 12 months of your date of hire or you work at least 1,000 hours in any calendar year beginning after your date of hire.
Note: If your full-time equivalency is .4807 or higher, meaning you are scheduled to work at least 1,000 hours per year, you are immediately eligible for Nemours matching contributions. If your full-time equivalency is less than .4807, meaning you are scheduled to work less than 1,000 hours per year, you may become eligible for Nemours matching contributions by working at least 1,000 hours of service during an eligibility period. The first eligibility period is the 12-month period beginning on your date of hire. Subsequent eligibility periods are based on the calendar year beginning after your date of hire.
Nemours Service-Based Contribution
Once you become eligible for matching contributions as noted above, Nemours provides a quarterly service-based contribution for any quarter that you receive pay for at least 250 hours of work, based on the paycheck dates during the quarter. The quarterly service-based Nemours contributions are calculated by taking your earnings paid during the quarter times a percentage based on your years of service provided in the table below. Quarterly service-based contributions become 100% vested after three years of service.
| Years of Service | Contribution |
|---|---|
| 0-4 Years | 3% |
| 5-9 Years | 4% |
| 10-14 Years | 5% |
| 15-19 Years | 6% |
| 20-24 Years | 7% |
| 25+ Years | 8% |
403(b) Contribution Example
Let’s say you are an eligible associate with two years of service. Your annual compensation is $50,000 and you contribute 4% of your compensation to the 403(b) Plan. The example below shows an annualized calculation of all plan contributions:
4% x $50,000 = $2,000 (Your Contribution)
50% x $2,000 = $1,000 (Nemours Matching Contribution)
3% x $50,000 = $1,500 (Nemours Service-Based Contribution)
Total of Your and Nemours Contributions = $4,500