401(a) plan

Take advantage today

Who is eligible?

All employees are eligible except independent contractors, employees covered by postgradute education agreement (residents), employees on long term disability disability who are receiving payment from the long-term disability plan; prior to January 1, 2007, employees who were leased to Muhlenberg Primary Care (MPC) and were covered by MPC’s 401(k) Plan; and employees currently covered for accruals under the Lehigh Valley Health Network, Inc. Retirement Plan.  Please refer to your SPD for additional information.   

All eligible employees must attain age 21 and complete 6 months of service, except Per Diem Employees.  Eligible Per Diem Employees shall be eligible for employer contributions upon completion of 1 Year of Service.  
 

You become eligible the first day of the plan quarter in which eligibility requirements are met. 

Starting early has its advantages

Employer contributions

The employer contribution is based on years of service, as outlined below: 

Employer contributions schedule

Notwithstanding the above, eligibility for the next tier of contributions shall be based on the number of years of vesting service with which a Participant shall be credited during the quarter to which that quarterly contribution relates.

You must be employed on the last day of quarter to receive the contribution. This provision is waived due to death, disability, and early or normal retirement.

The contribution will be made on a quarterly basis. Credit for years of service is only applicable for those employees of participating employers. For a list of participating employers, please see the Summary Plan Description which can be found on the Plan Related Documents page. Years of service with employers not listed in this document will not be recognized. 

Vesting

Vesting is 100% vested after completion of 3 years of service. 

0 – 2 years:  0% 
3 years:  100% 

You may become 100% vested upon death, disability or retirement.

Accessing your money

Withdrawals

Money can be withdrawn from your 401(a) plan in these events:

• Retirement 
• Separation from service
• Your death
• Qualified birth or adoption withdrawal within one year from the date of birth or adoption (not subject to the 10% early withdrawal penalty)