Retirement Benefits
401(k) Plan – Your Contributions
Fidelity Investments administers MAPMG's 401(k) plan. The plan currently offers a wide variety of mutual funds, Target Date Retirement funds and a self directed brokerage option.
The maximum annual deferral for 2016 is $18,000, plus an additional $6,000 catch-up contribution for those age 50 or older. Contributions may be made on a pre or post tax (Roth) basis. Shortly after receiving your first paycheck, Fidelity will send you a package of plan information with instructions for enrollment. Beneficiary designations are made online at www.401k.com.
» MAPMG 401(k) Summary Plan Description
401(k) Plan – MAPMG’s Contributions
MAPMG contributes 5% of your base and incentive compensation to your 401(k) plan on a biweekly basis, up to the annual IRS limit ($265,000 for 2016). Once you have earned $265,000, MAPMG's contributions to your 401(k) plan must stop. You become vested in MAPMG's contributions, and earnings on those contributions, according to the following schedule:
Years of Service |
Vested Percentage |
|---|---|
Less than 1 |
0 |
1 |
10 |
2 |
30 |
3 |
50 |
4 |
70 |
5 or more |
100% |
401(k) Excess Contribution Plan
In addition, physicians whose base and incentive pay exceed annual IRS limits receive a 5% cash payment each January for all amounts of eligible compensation in excess of plan limits from the previous year. The Excess Contribution Plan payment is taxable upon receipt and therefore, may not be rolled into a qualified tax deferred vehicle, such as an IRA.
Pension Plan
MAPMG funds a pension benefit on your behalf which is generally equal to:
2% times your highest consecutive 36 months average compensation (subject to IRS limits) of the last 120 months worked times your years of Credited Service up to 20 years; plus
1% times your highest consecutive 36 months average compensation (subject to IRS limits) of the last 120 months worked times your years of Credited Service for years over 20 years.
You become 100% vested in the Pension Plan after 5 years of vesting service. Shortly after your hire date, you may view plan details and run pension estimates at www.ibenefitcenter.com/kp.
Normal Retirement age is 65.
Supplemental Retirement Plans (SERP)
You may be eligible for one, two or three Supplemental Retirement Plans, depending on your highest average pay and years of service at retirement or separation from service from MAPMG. All SERP plans are non – qualified plans and therefore are fully taxable upon receipt and cannot be rolled into a qualified tax deferred vehicle, such as an IRA.
SERP - Full and Early Retirement
Full and Early Retirement allows you retire between the ages of 60 and 64 with at least 20 years of service. Under Full and Early, a subsidy is provided that eliminates the actuarial reduction in benefits which would otherwise occur when retiring before age 65.
SERP – Part II
Benefits under this plan are payable to you upon separation from service if you are vested on your separation from service date (at least 5 years of Service) and your Highest Average Compensation exceeds the IRS compensation limits.
Note: SERP Part II and SERP Full and Early benefits are paid immediately upon separation from service, regardless of when you decide to commence your qualified pension benefits.
Post-Retirement Benefits – Medical
MAPMG provides paid retiree medical insurance for you and your eligible dependents if you retire at age 65 with at least 10 years of service. MAPMG also provides paid retiree medical insurance if you retire between the ages of 60 and 64 having completed at least 20 years of service (Full and Early), provided at least one year notice of retirement is given.
Post Retirement Benefits – Life Insurance
If you retire at age 65 or older with at least 10 years of service, or between ages 60 and 65 with at least 20 years of service (Full and Early), MAPMG will provide you with $50,000 of retiree life insurance.