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 employer 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 2023, the annual contribution limit is $22,500 for any associates less than 50. Associates who are age 50 or older may contribute up to $30,000. Your contributions are always 100% vested. For eligible associates, the plan provides a 50% employer matching contribution up to 4% of eligible pay (maximum match of 2% of eligible pay), as well as a service-based employer contribution (ranging from 3% to 8% of eligible pay) made quarterly upon the completion of at least 250 hours of service per quarter. Casual and part-time associates must complete at least 1,000 hours of service before being eligible for employer contributions.
Associates who are not eligible for employer contributions may make voluntary payroll contributions to the 403(b) plan with traditional pretax or Roth after-tax contributions.
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. Beginning 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.
Nemours Base Contribution
A service-based Nemours contribution is made each quarter to eligible associates with at least 250 hours of service for the quarter. The quarterly base 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 base contributions become 100% vested after three years of service, as defined by the plan.
|Basic Contribution Years of Service||Contribution|
403(b) Contribution Example
Let’s say you are an eligible associate with two years of service and you have at least 250 hours of service for the quarter. 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 Base Contribution)
Total of Your and Nemours Contribution = $4,500