Employer sponsored retirement plans offer a significant means of providing income in retirement. Elliot Health System (EHS) maintains both a 401(k) and 403(b) Retirement Savings Plan for its employees.

These Plans are powerful tools for employees to begin planning for their financial security in retirement.

Employees who are hired for positions in the Elliot One Day Surgery Center, a for-profit entity of EHS, are eligible to participate in the 401(k) Plan. All other employees are eligible to participate in the 403(b) Plan. Both Plans are designed to provide equivalent benefits, offer the same investment fund options, and include the same plan provisions.

These Plans allow you to save for your retirement by contributing a portion of your pay each pay period into a retirement savings plan account, while deferring current income taxes on your contributions and earnings until withdrawal. As a participant, you can select from a number of investment options for your contributions, including an assortment of mutual funds that emphasize stocks, bonds, money market investments, or some mix of the above.

Employee Contributions

Eligible Full Time, Part Time, or Per Diem Employees may save for retirement by making voluntary pre-tax contributions to their Elliot Health System 403(b)/401(k) Plan upon becoming an employee of Elliot Health System. There are no special enrollment periods; enrollment is open at any time.

Deferral Limits

You may choose to contribute from 1% to 100% of your total pay. Your taxable income is reduced by the amount you contribute through salary deferral. Each year the IRS establishes limits on how much you can contribute to qualified retirement plans. Your maximum contribution percentage may also be limited by Internal Revenue Service regulations.

Employer Core and Matching Contributions to the Plan

The Elliot 403(b)/401(k) Plan includes two different types of employer contributions, Core Contributions and Matching Contributions, made directly to the retirement accounts of eligible employees. You first become an Active Participant for the purpose of these contributions on the earliest January 1 or July 1 after the completion of six months of Eligibility Service, provided you are an Eligible Employee on that date.   Employees who are accruing benefits under the defined benefit pension plan are not eligible for the Core and Matching Contributions.

EHS will contribute an Employer Core contribution after the end of each fiscal year (Note: the Elliot fiscal year is from July 1 through June 30) in the amount of 3% of your eligible pay, provided you are an active participant in the plan.   You must have worked at least 1,000 hours in the fiscal year and be in an active status on the last day of the fiscal year in order to qualify for the Employer Core Contribution. Wages earned while in a Per Diem status are not taken into account when determining the Core Contribution. After five years of Vesting Service, you become fully vested in the Employer Core Contributions. You obtain one Year of Vesting Service if you work at least 1,000 hours in a Fiscal Year.

EHS may also make a discretionary Matching Contribution. Employer Matching Contributions are made on a pay period basis and will only be made for pay periods in which there is an employee contribution to the Plan. For the 2016 plan year Elliot Health System will match 50% for the first 4% of compensation deferred. These contributions are immediately vested. If you are employed in a Per Diem status, you are not eligible for Matching Contributions.

Employer Core and Matching Contributions are subject to change in the future.


You are always 100% vested in the contributions YOU choose to defer, as well as the Elliot Health System Employer Matching Contributions. These contributions cannot be forfeited.

You must have five years of Vesting Service to be 100% vested in the Employer Core Contributions. You obtain one Year of Vesting Service if you work 1,000 hours in a Calendar Year (July 1 – June 30). The Employer Core Contribution has the following vesting schedule:

Years of Vesting Service % Vesting in Employer Core Contribution
Less than 1 Year 0%
1 Year 20%
2 Years 40%
3 Years 60%
4 Years 80%
5 or more Years 100%

If your employment with Elliot Health System ends and you have less than five years of vesting service, you will receive a percentage of the Employer Core Contributions as listed above. The non-vested portion of the Employer Core Contributions will be forfeited. (Special rehire rules apply to forfeitures.)