Reason for Policy:
Oak Hammock has established a retirement benefit program for eligible employees.
Oak Hammock at the University of Florida (OH) participates in a 401K plan and contributes to benefits to eligible employees provided by the plan.
- Employees who consistently work at least 20 hours per week can participate in Oak Hammock’s retirement plan after completing six (6) months (26 weeks) of employment. Employees can start contributions at the beginning of the quarter after completing six months of service.
- This is tax-sheltered savings plan to help the employee save for their retirement on a tax-deferred basis. This means that the money saved is deducted and put into a retirement plan account before federal income tax is computed.
- Oak Hammock will match the Employee’s 401(k) contributions at the rate of fifty cents on the dollar, up to a maximum of 4% of the Employee’s annual salary.
- Oak Hammock’s matching portion of the 401(k) plan is a five-year, gradually vested plan. Starting with completing one year of service, the contributing Employee is 20% vested in the plan (this means that if the employee leaves employment after one year, they are eligible to keep 20% of the portion that Oak Hammock has matched).
- An additional 20% is vested after each subsequent year of service that the employee completes. This continues through the completion of the fifth year of service, at which time the Employee is 100% vested in the plan.
- More details regarding this will be available to employees in the Retirement Plan booklet.
- Employees are notified of their eligibility by the 401k Plan Administrator. Employees must complete an enrollment form (available in the Human Resources Department or online) to participate in the plan.
- The employee elects how to invest their savings, and the investment earnings are placed in their account.
- Human Resources forwards completed forms to the 401K carrier and Payroll department for