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Retirement Savings Programs - 401(k) Savings Plan
Medco offers a two-tiered retirement program with our Cash
Balance Pension Plan and our 401(k) Savings Plan.
Eligibility:
Age 21 or older; enter the first day of the third month beginning on
or after employee's date of hire or any time thereafter.
Benefit:
- Employee Salary Deferral Contributions. You may elect to contribute
from 1% to 15% of your annual base compensation to the plan on a pre-tax
basis (up to 10% if you are a highly compensated employee as defined
by the Internal Revenue Code).
- Company Matching Contributions. The company will match 100% of the
first 3% of your base compensation that you contribute, and 50% of
the next 3%.
Vesting:
Employee Salary Deferral Contributions. 100% vested in your account.
Company Matching Contributions. Based on years of service (1,000 hours
per calendar year) as follows:
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Service
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Vesting %
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(Hired prior to 1/1/92)
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(Hired after 1/1/92)
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Less than 2years
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0%
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0%
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2 years but less than 3
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50%
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25%
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3 years but less than 4
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100%
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50%
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4 years but less than 5
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100%
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75%
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5 years or more
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100%
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100%
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Investment Options:
You may invest both your contributions and company matching contributions
in 1% increments in a variety of investment vehicles.
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