Hi!
I need help from someone better versed in parsing corporate retirement planspeak to tell me what the below document is actually saying.....
I was reading about 401ks and "mega IRA rollovers" etc. on here the other day as I took a new job and I'm now able to contribute to a matched 401k. I'm maxxing out the 401k, and have been putting the excess directly from paycheck into a new Vanguard RothIRA and a taxable Vanguard Admiral account, but if I can be doing wiser things with that $$$ pretax I'd rather!
I was looking to see if my 401k (Milliman is the company) had anything on their website about rollovers to IRAs and couldn't find anything, but there was this:
Full disclosure-I'm salaried and (finally!) hit this salary mark - does anyone understand this?????
Thanks!!!
O.
Supplemental Savings Plan
Our Supplemental Savings Plan is a non-qualified defined contribution plan that was designed to work in conjunction with the AIP for Salaried Associates to provide key management employees and certain “highly compensated employees” (under the Internal Revenue Code) sufficient pre-tax retirement savings opportunities. The plan is available to associates with a minimum base salary of $150,000 who are eligible for and participate in the AIP for Salaried Associates, including our Named Executive Officers.
Contributions by a participating associate are based on their elected deferral rate up to 25% of base pay. Deferrals are directed first to their AIP account up to the maximum amount of eligible pay available under the law. Contributions not allowed under the AIP are made instead to the Supplemental Savings Plan. Eligible pay under the SSP includes all categories of pay eligible under the AIP, as well as payouts under our Performance Incentive Bonus Plan. A participant may also elect to defer up to 25% of bonus compensation into their SSP account. The 25% maximum rate went into effect on January 1, 2007 and, therefore, was applied for the first time to bonuses paid in 2008.
For the SSP and prior to January 1, 2008 for the AIP, we contributed an amount equal to 100% of the first 2% of total compensation contributed by an employee and an amount equal to 25% of the next 4% of total compensation contributed by such employee. On January 1, 2008 we adjusted our contributions to the AIP to equal 100% of the first 1% of total compensation contributed by an employee and an amount equal to 50% of the next 5% of total compensation contributed by such employee.
The Supplemental Savings Plan is an unfunded plan. Participant contributions and our matching contributions are not invested in actual securities or maintained in an independent trust for the exclusive benefit of plan participants. Instead, for technical and tax reasons, contributions to the SSP are retained as part of our general assets, a common corporate practice. Therefore, benefits are dependent on our ability to pay them when they become due.
Participant contributions, as well as our matching contributions, are measured against the 10-year Treasury bill. These contributions accrue interest based on the rate of return for 10-year Treasury bills, as established on January 1 of each calendar year. Several of the Named Executive Officers have current “grandfathered” balances measured against our Common Stock. Although such balances are not invested in actual Common Stock, the balances are adjusted daily to the fair market value of a share of our Common Stock.
A participant’s before-tax contributions in our Supplemental Savings Plan are immediately fully vested. Our matching contributions vest ratably over the first five years of employment or, if earlier, when the participant reaches age 65, dies, or becomes totally and permanently disabled.