Our Blog - City of Gardner

Retirement-401(k) Plan

The NSM 401(k) Plan encourages you to accumulate savings for retirement through convenient pre-tax and Roth (after-tax) payroll deductions. Full time and part-time employees are eligible to participate when you have completed 90 days of service.

There is no open enrollment period for NSM’s 401(k) Plan, but we’d like to take this time of year to remind you of the 401k plan benefit. You can start, stop, or change your contributions at any time.

NSM’s plan offers a wide array of investment funds from which to choose. Prudential also offers the optional use of a GoalMaker tool. This tool assists investors by choosing appropriate funds based on your age, projected retirement date, and risk tolerance.

2017 IRS Maximums
Elective Deferrals $18,000
Catch-Up Contributions (50+)

 

$6,000

 

Current NSM Match

NSM offers a discretionary company match. This match is based on NSM meeting the financial goals established in the previous year’s budget. The match is funded annually, typically during the second quarter, following the close of the plan year.

The 2016 match is set as $0.25 for every $1.00 the employee contributes, up to 6% of the participant’s salary. To be eligible, you must be actively employed on December 31 of the Plan year.

Years of Service Vested Percentage
Less than 2 0%
At least 2 but less than 3 40%
At least 3 but less than 4 60%
At least 4 but less than 5 80%
At least 5 100%

 

The annual discretionary contributions, as well as the investment earnings and losses, are vested based on years of service under the following vesting schedule:
Employee Contributions

Eligible employees may contribute from 1 to 100% of eligible pay on a pre-tax and/or Roth (after-tax) basis.

Employees who are at least 50 can take advantage of catch-up contributions. Employee contributions are subject to the annual IRS limits and vest immediately.

To further enhance employees’ ability to save for retirement, new hires will be automatically enrolled in the 401(k) Plan at 3%. This pre-tax contribution will be payroll deducted and invested in Prudential’s age based Moderate GoalMaker. This contribution will remain in effect until you actively elect to change your contribution percentage or investment election, or elect not to contribute to the 401(k) Plan. You will receive additional information regarding the automatic enrollment process.

To make changes to your contribution rate and/or investment elections, initiate a rollover, and designate your beneficiaries, log on to Prudential’s website at www.prudential.com/online/retirement.com or call customer service at 1-877-778-2100.