You’re growing your successful career.
But are you feeling confident about
your financial future?
Find out how Texas Children’s can help.
You’re growing your successful career.
Texas Children's Retirement Benefits
- Pension Plan (Cash Balance Pension Plan)
- 403(b) Savings Plan
Plus
- Financial Considerations
- Managing Your Money
You’re growing your successful career.
What do you have?
In this module, you will find helpful information on plans, programs and services available through Texas Children’s to support your financial well-being, both now and in the future. Before you can start building a plan for retirement or begin working toward your financial goals, it’s important to understand the resources you have available now. How much have you saved? What do your investments look like? Are you comfortable with your saving habits? Even if you feel like you’re in good shape now, it’s never too early to start preparing for retirement.
Where are you on your journey?
Right now, your career may be on a steady trajectory to a stable retirement. However, that doesn’t mean you should take planning for your future lightly – the best time to start working toward retirement is now. Make sure you’re taking advantage of tools offered by Texas Children’s and managing your money safely and responsibly for your future.
What are your goals?
Retirement is a long-term goal for most employees – but what about your short-term goals? Is your goal to own your own home or to pay off a mortgage? What about putting your children through college or buying a car? Do you have elderly parents who may require financial support? It’s important to have short-term goals, but it’s just as important to consider how they can affect your long-term goal of a comfortable retirement.
What will you need?
What will your income needs in retirement look like? They will likely be lower than your expenses today, but unexpected costs can pop up, and you may not be able to rely on a regular paycheck. And don’t forget, just like now, you will still be paying for food, housing, utilities, taxes, transportation and insurance. Make sure to include these factors in your income plan today, so you can have a secure and comfortable retirement tomorrow.
What will you leave behind?
Depending on your goals and situation, you may want to leave something behind for your loved ones. There are special planning considerations for leaving behind gifts or bequests - make sure you check with a financial advisor and get the facts before making any decisions.
You’re growing your successful career.
Your career is thriving and your savings should be, too.
Keep reading to see how to manage your money for a bright future.
You’re growing your successful career.
Texas Children's
pays 100%
and you are automatically enrolled once you become eligible.*
Take a Quiz *In order to be eligible for Texas Children's contributions to your account, you must be at least age 21 and must have completed at least 1,000 hours in your first twelve months of employment. Enrollment occurs on April 1 and October 1 - as soon as all of these requirements are met, Texas Children's will start investing for your retirement!
Q.
How much did Texas Children's contribute toward employees' pension accounts in 2016?
A.
You’re growing your successful career.
Your Texas Children's Pension Plan Benefit
(provided entirely by Texas Children's)
It’s important to know what your estimated benefit will be for your retirement budget, so log in here to see the value of your pension account and update your beneficiary information. Or call the Texas Children's Pension Plan Support Team at 1-800-752-8230 from 8 a.m. – 5 p.m. Central Time.
Step 1: Contribution Credits
Around December 1 each year, Texas Children's deposits credits equal to 3%-5% of your base salary (depending on your years of vested service) to your pension account. You are automatically enrolled and will receive a welcome letter once you enter the pension plan. Texas Children's covers all pension costs and investment decisions associated with the account. Click here to see the value of your pension account!
Step 2: Interest Credits
In addition to regular annual deposits, Texas Children's also applies at least 3.8% interest to your account balance every year, allowing your balance to grow over time via compound interest.
Receiving Your Texas Children's Pension Plan Benefit
After you have completed three years of vested service, you are 100% vested and can receive benefits from the Pension Plan upon retirement. Again, you do not contribute to your pension account - Texas Children's funds the entire Pension Plan. The balance in your pension account is yours when you retire or leave Texas Children's if vested.
You’re growing your successful career.
In addition to the retirement foundation provided by Texas Children's contributions to the Pension Plan, you have the opportunity to save pre-tax dollars for your own retirement through the Texas Children's 403(b) Savings Plan. By now, you should have enrolled and started saving, but it’s never too late to start or to save more. The sooner you start, the more interest you can earn, which means more savings for your retirement.
Texas Children's Match
Each time you make a contribution to your 403(b) account, Texas Children's makes one too. We match your deposits, up to 50% of the first 6% of your contribution per pay period, to a maximum of $8,100 for 2017. Here's an example of how it works:
| $2,000 | X | 6% | X | 50% | = | $60 |
| Your Paycheck | You Contribute (Pre-tax) | Texas Children's Match | Texas Children's Contributions |
Total Amount Contributed to Your Account = $180 ($120 from you and $60 from Texas Children's)
These numbers are an example. Your individual experience will vary.
Don’t stop at contributing 6% - you can deposit up to $18,000 pre-tax to your 403(b) account for 2017. Contributing pre-tax dollars lowers your taxable income, so you not only pay less in taxes, but save even more for retirement. You can also contact Fidelity at 800-343-0860, or visit fidelity.com/atwork.
You’re growing your successful career.
Step 1: Enroll
To participate, you must actively enroll through Fidelity and choose your contribution amount. It is never too late to start or to increase your contribution! Click here to enroll in the 403(b) plan anytime or call Fidelity at 800-343-0860.
Step 2: Contribute
Each pay period, your contribution will be deposited into your 403(b) account. You pay no taxes on contributions until you withdraw them. Remember, you can deposit a total of $18,000 pre-tax for 2017, so don’t stop contributing just because you’ve reached 6%!
Step 3: Texas Children's Match
If you are not contributing at least 6% of your pay, you are leaving free money on the table in the form of the Texas Children's match - that is money that can be working for you in retirement!
Step 4: Invest
You choose how to invest the funds deposited into your 403(b) account from a menu of options offered by Fidelity. At this stage of your career, you may want to pursue a slightly more aggressive yet well-balanced investment strategy, since retirement is still many years away.
As a contributor to your Texas Children’s 403(b) Savings Plan, you have access to a financial advisor by calling 866-711-0352 as well as the Planning & Guidance Center online at Fidelity.com. This online tool gives you the option to include accounts you hold outside of Fidelity and combines it with your Fidelity account information. Whether you want to save for college, develop an investment strategy, or plan for retirement, the Planning & Resource Center can help you get a holistic view and work towards your investing goals.
Step 5: Retire
You must no longer be employed by Texas Children’s to initiate and receive this benefit. However, there is no retirement age requirement for you to begin drawing your benefits.
You are always 100% vested in your own contributions to your 403(b) account. You vest 20% in Texas Children's matching contributions each fiscal year (October 1 – September 30) you complete 1,000 or more hours of service. You are 100% vested upon obtaining your fifth fiscal year of service or are age 65 or older while employed at Texas Children's.
You may have to pay a 10% early withdrawal penalty if you withdraw the money before you reach 591⁄2. You may want to draw down your 403(b) account balance in regular payments to support your needs in retirement, or use some or the full balance to purchase an annuity that provides a regular payment, as if you continue to receive a pay check, for as long as you live - the choice is yours.
You’re growing your successful career.
While considering your financial position at this stage of life, it’s important to think about any new financial responsibilities you may have. Click below to learn about new challenges you may face in the years to come.
Any one of these, and many others, can be a serious financial burden and can reduce the amount you have available for retirement. Make sure to consider these responsibilities and weigh your priorities when evaluating your financial situation.
Elder Care
As you and your career grow, you may have relatives who are becoming elderly. If they have not prepared effectively for their own retirement, the financial responsibility of their well-being may fall to you instead. This means supplementing their income to help them pay for rent, food, and medical expenses, or even accepting them into your own home when they are no longer able to care for themselves. Consider talking to a financial planner about these expenses and how to best manage them.
Your elderly family members can also set up advance directives, so you know what to do when they are no longer able to make decisions about their health, wealth and wishes.
Student Loans
Though your own student loans are hopefully behind you, it’s likely that your children will accumulate college debt in the coming years. Many parents try to ensure their children get the best possible start by paying for tuition. However, these expenses can disrupt the balance of your finances. Think about starting a specific college fund to pay for your child’s future expenses and consider where those funds will come from – it is important to find a balance between those savings and your own retirement savings.
Home Ownership
You may already own a home, or you may be considering moving from rented property to property you own personally. This can be a rewarding, and often important, change in your financial situation and lifestyle. When considering home ownership, think about how it can affect your savings. Now, instead of just paying rent, you may be responsible for extra expenses, like homeowners’ association fees, property insurance and taxes, maintenance costs and extra furnishings. Owning a home is rarely a true investment, so make sure you are in a stable financial position before accepting debt in the form of a mortgage.
You’re growing your successful career.
If you’re taking advantage of the tools offered by Texas Children’s, you should have a solid foundation to build your retirement. However, as important as it is to build your savings, it’s even more important to manage your money effectively.
Step 1: Give your future self a raise.
Enroll in the Texas Children’s 403(b) Savings Plan if you haven’t already done so, and if you have, consider increasing your contribution. Also, every time you get an increase, think about immediately contributing a little more to your retirement savings before you become accustomed to living on your new salary.
Step 2: Think of your savings as untouchable.
Even though you may have the opportunity to take a loan or an early withdrawal from your account, you should exhaust all other options first – taking money out of your 403(b) account can have a serious impact on your future. Not only will you miss the funds you take out now, you’re also missing out on compounding interest - $10,000 today can grow to as much as $60,000 thirty years from now!
Step 3: Take advantage of Texas Children’s retirement benefits.
Make sure you’re taking advantage of all Texas Children’s retirement benefits. Invest at least 6% in your 403(b) Savings Plan account. If you don’t, you’re leaving behind a stack of free money!
Keep tabs on your pension account.
Even though you can’t make contributions, you should regularly check on your potential pension benefit and use that knowledge to help build your retirement budget. If you aren’t sure how much you’ll need in retirement, these tools can tell you how much you’ll spend, and how long you’ll be spending in retirement.
Step 5: Balance your financial priorities.
Other priorities and opportunities may make retirement seem lower on the list – but don’t let that fool you. Retirement is coming sooner than you think, and it pays to be prepared. Consider making small sacrifices today for a big payout tomorrow. If credit card debt or college tuition is looming on the horizon, keep the habit of contributing to your retirement even if it’s just a little bit at a time. Stopping your contributions altogether can have serious consequences when it comes time to retire.
You’re growing your successful career.
This module contains a lot of information, and having questions at this stage of life is normal. Below are some of the most frequently asked questions about the programs offered by Texas Children's.
Am I eligible for these plans?
You are eligible for the Pension Plan if you are age 21 or older, and you have completed 1,000 hours or more of work within the first 12-month period following your date of hire, or in any subsequent plan year (October 1 - September 30).
You are eligible to begin participating in the 403(b) Savings Plan on your first day of employment, or any time thereafter.
How is the pension plan calculated?
Around December 1 each year, Texas Children's deposits credits equal to 3%-5% of your base salary to your pension account. Texas Children's covers all pension costs and investment decisions associated with the account.
How can I find out my pension plan balance?
There are several ways to find the balance of your Pension Plan account on www.ibenefitcenter.com. You may request your balance easily online – if you aren’t sure where to look, you may live chat on the site with a plan representative to discuss any questions you may have. Or call the Texas Children’s Hospital Pension Plan Support Team at 1-800-752-8230 from 8 a.m. to 5 p.m. Central Time.
How often does the pension plan update?
Texas Children's deposits credits into your account once per year around December 1. There will be an announcement on Connect when your updated balance is ready to be viewed.
When do I receive my benefit?
To be 100% vested, you must reach 3 fiscal years of service. In order to receive your pension plan distribution, you must meet one of the following conditions:
- Retirement at age 65 or older
- Early retirement at age 55 with at least 10 years of vesting service
- If your balance is equal to or less than $15,000 when you leave Texas Children's
You may begin receive benefits from the 403(b) Savings Plan after your service with Texas Children's ends - please note, you may have to pay a penalty if you make withdrawals from your account before you reach retirement age.
Still need some help?
If you are still not sure about something, there are plenty of resources available to help you get into good financial standing. Check with your financial advisor or contact Fidelity at 800‑343‑0860 or visit fidelity.com/atwork. You can also visit reputable websites such as the Financial Planning Association or the National Association of Personal Finance Advisors for more personal help.
You’re growing your successful career.
