Transition of Retirement Savings Plans from Vanguard to Schwab for SCPMG Non-Represented Employees
Who is affected by this transition?
Non-represented executives and employees of SCPMG are affected. This includes:
Podiatric Physicians and Surgeons, and Oral Surgeons
Administrative Leaders of SCPMG
Salaried Employees of SCPMG
Non-Union Hourly employees of SCPMG
What is transitioning?
Expected in August, 2021, non-represented employees of the Southern California Permanente Medical Group (SCPMG) who participate in a retirement savings plan administered by Vanguard, will move to retirement savings plans administered by Schwab Retirement Plan Services.
Why is this transition happening?
SCPMG is transitioning non-represented employees’ retirement savings plans to align retirement savings benefits for non-represented employees with the benefits offered to SCPMG physicians. It will make administration of our retirement plans easier and allow plan participants some additional flexibility in how they manage and receive payment from their accounts.
Who is eligible to participate in a SCPMG retirement savings plan?
Generally, all employees (including Per Diem Podiatric Physicians), regardless of their work schedule, are eligible to participate in a SCPMG retirement savings plan.
What changes can plan participants expect as a result of the transition?
Plan participants will be able to choose a self-directed brokerage option, known as a Personal Choice Retirement Account (PCRA), for up to 50% of their plan balance under the new 401(k) plan, and up to 99% of their Plan B balance.
The self-directed brokerage option will no longer be limited to mutual funds – a wide range of investment options will be available.
Will there be any changes to the automatic enrollment rules?
Yes. New hires after the transition will be automatically enrolled in the 401(k) for PMGs plan at a rate of 3% of eligible earnings, instead of the current 2%. Auto-increases will stop at a maximum deferral rate of 10%, instead of the current 6%.
This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material. Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Stratos Wealth Partners, a registered investment advisor and separate entity from LPL Financial. Stratos Wealth Partners and LPL Financial are separate entities from Charles Schwab & Co.