Please print and distribute the following as noted below:
– FOR DISTRIBUTION FOR ALL ELIGIBLE 401K PARTICIPANTS –
(Eligible employees have regularly scheduled hours per Employment Understanding
on file equal to or greater than 20 hours per week)
Eligible 401K Participants,
As a reminder and as provided in the Cambridge 401K Summary Plan Description, if you are eligible and not a current or active participant, you may begin contributing to the 401K Plan. If you are an active participant and would like to change your contribution percentage, you may do so at this time.
The 401K Plan provides an opportunity to save money for your future and earn additional compensation via matching contributions from Cambridge. Below are some great features of the Cambridge 401k plan:
- Retirement investment advise is available at no cost through Merrill Lynch by contacting:
Brett Fisher @ 503-221-4671
Matthew Floberg @ 503-221-4610
800-937-0750 (for participants out the Portland metro area)
- Cambridge provides an employer match of 50% of your contribution on the first 10% of your wages. What does that mean and how does it work? That means….
- If you contribute 2% of your wages toward your 401k retirement plan, Cambridge will match 50% of that contribution, and make a contribution toward your 401k account for an amount equal to 1% of your wages. The Cambridge contribution is on top of your normal salary or wages, so it is truly incremental compensation.
- The same 50% matching contribution applies to any employee contribution you make up to 10% of your wages. So, if you contributed a full 10% of your wages, Cambridge would add an amount equal to 5% in incremental compensation to your 401k account.
- Employee contributions can be made in any whole percentage of your wages to a maximum of up to100% however not exceeding IRS statutory limits (contact Brett Fisher or Matt Floberg for IRS limits).
- After five years of service, this match increases to 60%.
- Cambridge vesting period of the matching contributions is 3 years after a 1 year waiting period. The vesting period determines how quickly you have access to the Cambridge matched contributions. The Cambridge plan gives employees 25% of the Cambridge contributions after 2 years, 50% after 3 years, and the full 100% of the Cambridge matching contributions after working at Cambridge for 4 years.
- 401k contributions also save you money on income taxes, because contributions are taken out of your paycheck pre-tax, so your taxable income on your paycheck is lower.
- An after tax Roth deferral is available with the Cambridge plan.
- In service withdrawals are allowed at age 59 ½.
As always, once starting, you may stop your contributions at any time, but may not resume until the next open enrollment period (January 1st 2016). In the event you stop, the employer match stops as well.
If you don’t wish to make any changes, no action is required. If you would like to begin participation or change the amount you are currently contributing, please complete and mail the attached form to my attention at the Central Office. Deferrals must be designated in percentages only, our plan does not support fixed amount deferrals. If you are interested in beginning participation for the first time and would like to receive an enrollment booklet, please contact me and one will be mailed to your home. Forms must be mailed or faxed so that they are received at Cambridge no later than January 1, 2016.
To see additional details on plan and program rules and guidelines, please consult the summary plan description, available on the e-Exchange.