A summary of your 401(k) Savings and Retirement Plan Benefits
Savings plans can be powerful tools to help you be financially secure in retirement. The 401(k) Savings and Retirement Plan that the Texas Rangers offer can help you reach your investment goals.
Carrier: Milliman Benefits
Eligibility
You are eligible to participate in the plans if you are age 21 or older and have at least 30 days of service with the company.
How the Plans Work
Our retirement plans offer the ability to defer on a pretax or after-tax basis. The Rangers automatically enroll you in a 401(k) plan with a 3% employee contribution. Employees hired at least 180 days before the end of the calendar year receive an automatic 1% contribution increase each January 1 beginning the following year, unless they opt out. Employees hired fewer than 180 days before the end of the calendar year receive their first automatic increase on January 1 following one full year of employment. You may opt out or change your contribution at anytime through the Milliman website or by contacting Customer Service.
You may save from 1% to 100% of your total pay subject to IRS limits. You decide how much you want to contribute and can change your contribution amount anytime. All changes are effective as soon as administratively feasible and remain in effect until you update or stop your contributions. You also decide how to invest the assets in your account.
Contribution Options
Choose one or both of the following ways to contribute without exceeding annual contribution limits:
PRETAX 401(K) CONTRIBUTIONS OPTION
Contributions are deducted from your paycheck pretax
Reduces your taxable income
You pay taxes on these contributions and earnings when you withdraw the money from the Plan
The Rangers employer contribution is an automatic 4% of your salary to your 401(k) plan
AFTER-TAX ROTH 401(K) OPTION
Contributions are deducted from your paycheck post-tax
You pay taxes now instead of at retirement
You will not pay taxes on these contributions and earnings again if you receive the money as a qualified distribution
Vesting
You are always 100% vested in your own contributions.
Investment Options
Your accounts will be invested automatically in the Vanguard Target Retirement Fund, the default investment option that most closely aligns with your normal retirement date (defined in the plan as age 65). However, you may choose and change your investment options anytime.
The Plan offers these approaches to investing: Target Retirement Funds. These funds help take the confusion out of investing and provide diversified investment mixes that are appropriate for different target retirement dates. Funds change investments over time to become more conservative as you near your retirement date.
Custom Investment Portfolio. You design your own asset allocation from the Plan’s investment options. The options represent a broad range of risk and return characteristics within various asset classes.
Morningstar Retirement Manager1 . This online service offers recommendations for how much to save, when to retire, and how to invest your retirement account. A retirement strategy is created for you based on your age, salary, and retirement goals.
You may implement a one-time recommendation yourself, or let Morningstar Investment Management manage your retirement account for you by enrolling in their program. Morningstar Investment Management will provide ongoing account review, adjustments, and rebalancing and provide periodic progress reports. There is a fee to manage your account, which you agree to during the enrollment process. You may cancel anytime at no additional charge.
Rollover Contributions
Account rollovers are accepted from most eligible retirement plans and pretax IRAs, even if you are not saving in the Plan. Log on to millimanbenefits.com to start the rollover process. Click on View Your Plan Details, then Account Details, then, select Rollover Contributions under Account Activity. You must notify your prior administrator by following the instructions on the form. Then, submit your form to the Milliman Benefits Service Center with your rollover check or before your rollover check is mailed.
Loans
Borrow a minimum of $1,000 and a maximum of up to 50% of your vested account balance or $50,000, whichever is less. You may only have up to three outstanding loans at any time. Log in to millimanbenefits.com to model or to request a loan.
In-Service Withdrawals
In-service withdrawals may be available if you need to take money from the Plan while you are still employed. See the Summary Plan Description or visit millimanbenefits.com for details.
Distributions
If you leave employment, distributions will be handled as follows:
If your vested account balance is $1,000 or less, you will automatically get a lump sum distribution.
If your vested account balance is greater than $1,000 but less than $7,000 and you do not elect otherwise, your account will be transferred to a Charles Schwab Individual Retirement Account (IRA) and will be deposited into an FDIC-insured bank account. You will receive information directly from Charles Schwab on how to access your IRA. You will be able to direct the investment of your Charles Schwab IRA account once you complete an Account Activation Agreement online at schwab.com . Schwab representatives are available Monday through Friday from 6:00 a.m. to 10:00 p.m. CT at 800-724-7526
If your vested account balance is greater than $7,000, you may choose one of the following options:
Leave your money in the Plan. Take a lump sum distribution. Take a partial distribution.
