[All_staff] Message from Hugh Montgomery: 401(k) Plan Change

[Patricia Stroop]

Dear Colleagues: 

Every two years, as required by its contract, the Lab assesses the value of employee benefits with a Benefits Value Study. The Benefits Value Study compares the value of the Lab's benefits with other selected national Labs/organizations. The results showed that the Lab has a richer benefit offering than others and, as prescribed in the JSA Contract with DOE, a corrective action plan is required to realign our benefits. 

After carefully reviewing all options and consulting with the Lab's senior management team and our JSA corporate partners, it was agreed that the 401(k) plan be modified. Effective January 1, 2015, for benefits-eligible employees, the 401(k) employer contribution plan will be reduced from 10 percent to 9 percent of your eligible compensation. Eligible employees will remain 100 percent vested in the employer paid contributions as in past years. This 401(k) change continues to position the Lab as a market leader in employer contribution levels. 

Benefits-eligible employees can continue to supplement the JSA contribution to their 401(k) plans through elective contributions, up to the annual threshold set by the Internal Revenue Service. Details about the annual open enrollment and maximum limits for the 401(k) employee elective contributions will begin on Monday, December 1, 2014, from Human Resources, when the open enrollment process begins. 

We will continue to thoroughly review and evaluate benefits to ensure a competitive plan offering.

Mont