DC Plan Overview
Below are some of the important features about your Plan. This website is intended to be a summary of the plan provisions. In the event that a conflict exists between the information contained within this website and the plan document, the plan document provisions prevail. For more information, view the Frequently Asked Questions or contact us.
The Cedars-Sinai DC Plan is a type of defined contribution retirement plan available to employees of hospitals and certain other tax-exempt organizations under the Internal Revenue Code. Under the DC Plan, Cedars-Sinai deposits a contribution to your DC Plan account for each quarter you participate in the Plan. The amount of the quarterly contribution is defined based on your pay and years of eligible service. The chart below provides the DC Plan contribution schedule:
|DC Plan Contribution Schedule|
|Years of Eligible Service||Contribution Rate|
|1 to 4||3.0% of pay|
|5-9 years||4.0% of pay|
|10-14 years||5.5% of pay|
|15-19 years||8.0% of pay|
|20 or more||11% of pay|
Contributions to the DC Plan are made by Cedars-Sinai, but as a participant in the DC Plan, you determine how those contributions will be allocated to the various investment options available under the Plan.
Contributions to the DC Plan and any earnings that accumulate over the years are not taxed until you receive them, typically when you retire. Withdrawals prior to age 59½ will be subject to an IRS 10% premature distribution penalty tax, unless an exception applies. Also, participation in the DC Plan has no effect on your potential Social Security benefits. The DC Plan is just one retirement plan available to you as an employee of Cedars-Sinai. Cedars-Sinai also provides a Defined Benefit (DB) plan and 403(b) plan. Learn more about the 403(b) retirement plan.
After you have completed one year of employment at Cedars-Sinai with a minimum of 1000 paid hours, you are eligible to choose to participate in either the Cedars-Sinai DC Plan or the Cedars-Sinai Defined Benefit (DB) Plan. At that time, you will receive a packet of information from Cedars-Sinai to help you decide which plan is the best retirement savings option for your circumstances. Upon eligibility, you must select between the DC Plan and the DB Plan; you cannot participate in both. For additional retirement savings, you may enroll in the Cedars-Sinai 403(b) Plan, which is described in the 403(b) section of this website.
You should consider the investment objectives, risks, and charges and expenses of the mutual funds offered through a retirement plan, carefully before investing. The fund prospectuses and information booklet containing this and other information can be obtained by contacting your local representative. Please read the information carefully before investing.
Mutual funds within the retirement program are considered long-term investments designed for retirement purposes. Money distributed will be taxed as ordinary income in the year the money is received. Account values fluctuate with market conditions and, when surrendered, the principal may be worth more or less than its original amount invested.
Not FDIC/NCUA/NCUSIF Insured | Not a Deposit of a Bank/Credit Union | May Lose Value | Not Bank/Credit Union Guaranteed | Not Insured by Any Federal Government Agency
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