Sutter Health 401(k) match, vesting and fees

Vesting – Participants are 100% vested in their voluntary deferral contributions plus actual earnings thereon. Employer contributions generally become 100% vested after three years of service or upon reaching normal retirement age, disability or death while an employee.

The Plan has an auto-enrollment feature by which employees are automatically enrolled at a pre-tax deferral rate of 3% of their pay if they do not opt out or enroll on their own, effective 90 days after their date of hire or plan effective date. In addition, employees who are automatically enrolled in the Plan will have their pre-tax deferral percentage automatically increased by 1% each year for seven years until their deferral percentage reaches 10%.

Notes receivable from participants – Participants may borrow from their account a minimum of $1,000 up to a maximum equal to the lesser of $50,000 or 50% of their vested account balance for purchase of primary residence loans or for general purpose loans. Loan terms range from one month to five years, or up to 15 years if used to purchase the primary residence of the participant. Loans are secured by the balance in the participant’s account and bear interest at prevailing market rates at the time of borrowing; the interest rate for new loans is established quarterly.