Hillsborough Community College. Hillsborough Community College, FL

Transcription

1 Hillsborough Community College Hillsborough Community College, FL

2 Table Ctents 1 The informati provided by this Guide is intended explain benefits provisis retirement savings plan maintained by employer ly. It is not intended describe or cover any state spsored retirement plans or or benefits available you through employer. Introducti Eligibility Enrollment Products Fees 403(b) & 457(b) Accounts Helpful Special Websites Pay Plan Frequently Asked Questis ORP MAC Distributi Transactis Transacti Procedures State Retirement Plans

3 Introducti Eligibility & Enrollment 2 3 Being superhero own retirement sry may seem overwhelming at first, but if you take right actis, you will be well way saving day. Now is time put plan work start ctributing a supplemental retirement plan. You have opportunity be own superhero! The preparatis you make now can help you save future retirement from being lackluster. By planning for future now, you can defeat all villains that threaten attack golden years. In order defeat se obstacles, you can evaluate current path csider some events life might have in sre for you alg way: Have you csidered what financial goals needs might be for each decade? Are you planning getting married or starting a family? Are you track for a new job or new positi with current employer? Where do you envisi self at age 65? 75? 85? Sometimes it seems like you are ctinuously fighting villains that threaten financial security, but if you take time plan ahead, some those villains can be defeated before y even get started. Planning for financial future is an important step so you can spend retirement years comfortably successfully. D t let a lack planning be financial krypnite. The informati included in this Annual Retirement Benefits Guide is presented assist you in formulating plan acti help secure future financial goals. Online Video Presentati Please visit TSA Csulting Group, Inc.'s website view an line video presentati about employer's retirement plans. This short video should help you better underst Plan how it can help you achieve financial security. Are you eligible participate? Most employees are eligible participate in 403(b) /or 457(b) plan(s) up hire. However, if you are a private ctracr, trustee, school board member, /or student worker, you are not eligible participate in 403(b) plan. If you participate in a supplemental retirement plan through employer, you are fully vested in ctributis earnings at all times. Are you ready take acti? Once you are ready participate in employer's 403(b) /or 457(b) plan(s), you should research authorized Provider(s) Product(s) available you. Choose an investment product(s) that is suitable help you meet retirement goals ctact an Provider Representative (if applicable) open an account. You may ly choose from Providers that are authorized under employer s plan. A current list authorized Providers is located at. How do you enroll? After establishing retirement account, you must complete a Salary Reducti Agreement (SRA) form for 403(b) account, /or a Deferred Compensati enrollment form for 457(b) account. These forms authorize employer withhold ctributis from pay, send funds selected Provider behalf. The SRA form /or Deferred Compensati enrollment form is necessary begin or modify ctributis, change allocatis between Providers, change tal amount ctributis, or end payroll ctributis. These forms are available for download or printing at. Please be aware that submitting a SRA form /or a Deferred Compensati enrollment form does not open an account with selected Provider. You must ctact an Provider Representative/ Provider open an account with selected Provider prior submitting a SRA form /or a Deferred Compensati enrollment form. The tal annual amount a participant's ctributis must not exceed Maximum Allowable Ctributi (MAC) calculati. The Internal Revenue Service regulatis limit amount participants may ctribute annually tax-advantaged retirement plans. For cvenience, a MAC calcular is available line at, 2015 MAC limits are printed within this guide.

4 Products Fees 4 Just like re are many different kinds superheroes, re are several types Just like re are many different kinds superheroes, re are several types investment products for tax-advantaged retirement savings. The investment products investment products for tax-advantaged retirement savings. For some employees, described below are available for 403(b) plans, are usually available for 457(b) plans. assistance an investment advisor can be very helpful in understing how a particular For some employees, assistance an investment advisor can be very helpful in investment understing product how may a particular help you reach investment future product financial may goals help you suggest reach a financial future plan financial (or combinati goals suggest investment a financial products) plan suitable (or combinati risk investment lerance. The products) three main suitable types investment risk lerance. products The three that main may types be available investment through products employer that may are be explained available through below. Make sure employer that are investment explained product below. Make you choose sure that fits investment timeframe, risk product lerance you choose financial fits needs. timeframe, risk lerance financial needs. What are fixed interest variable annuities? Fixed Interest Variable Annuities are provided ly by life insurance companies. Fixed interest annuities usually provide for safety principal a current interest crediting rate. Variable annuities usually fer both a fixed interest account alg with separate accounts that are invested in bd /or equity markets. There is no guarantee principal or interest in any market-based separate account. Surrender charges fees are different with each annuity product. These annuities generally include fees pay investment advisors assist you with investment choices /or financial planning. What are service based mutual funds cusdial accounts? Service Based Mutual Funds & Cusdial Accounts are fered by investment management companies brokerage firms. Participants may direct ir ctributis various investment portfolios, which are managed by fund managers. portfolios can include funds from a single fund family or csist a cusdial platform that spans several fund families a single statement. Sales fees may be be charged each ctributi ctributi amount amount or or charged charged based based a percentage percentage assets assets under under management. management. These These mutual mutual funds funds cusdial cusdial accounts accounts include include fees fees pay pay investment investment advisors advisors assist you with investment choices /or financial planning. assist you with investment choices /or financial planning. What What are are no-load/low no-load/low fee fee mutual mutual funds? funds? No-Load/Low Fee Mutual Funds are investments that apply no sales fee No-Load/Low Fee Mutual Funds are investments that apply no sales fee market-based mutual funds fered, though going investment management fees are market-based mutual funds fered, though going investment management fees are charged funds selected. These ferings are for those individuals who do not wish charged funds selected. These ferings are for those individuals who do not wish utilize services an investment advisor. Participants direct investments amg utilize services an investment advisor. Participants direct investments amg choices provided by fund company with se investment products. You can ctact choices company provided by by calling fund a ll-free company phe with number se investment /or line products. access. You You can will ctact make investment company decisis by calling a ll-free own with phe no assistance number /or from investment line access. advisors. You will make investment decisis own with no assistance from investment advisors. Employer Employer policy policy administrative administrative requirements requirements allow allow Providers Providers who who meet meet certain certain stards stards qualificatis qualificatis provide provide retirement retirement accounts accounts employees. employees. The The Providers Providers listed listed employer's employer's authorized authorized Provider Provider page page at at qualify qualify under under guidelines guidelines established established by by employer. employer. This This list list does does not not reflect reflect any any opini opini as as financial financial strength strength or or quality quality product product or or service service for for any any Provider. Provider. Please Please be be aware aware that that this this authorized authorized Provider Provider list list could could change change during during year, year, so so please please check check employer's employer's specific specific pages pages regularly regularly for for updates. updates. When choosing an investment product it is important know how fees associated with product can affect return. Identify fees, sales charges or administrative expenses associated with account, such as: Disclosure Fees providers are required disclose any fees associated with an investment product. This informati may be included in an annuity ctract, cusdial agreement /or a Prospectus. So, it is important read se documents ask investment provider explain each fee that is associated with account. Below are a few types fees that are commly charged. costs, or fees, are usually deducted from funds in account. Annuity Ctract Fee usually applies certain variable annuity products may be a fixed annual fee. This fee may not apply ce account reaches a certain accumulati balance. Cusdial Fee Charged each year by cusdian for holding mutual funds in account. Expense Fee Charges for investment management, administrati distributi services associated with investment management each mutual fund. Mortality Expense Fee (M&E) Applicable variable annuities expressed as a percentage assets charged each year. Wrap Fee May be added mutual fund accounts pay for advisor services. Transfer Fee An amount charged for transferring funds within a mutual fund family or anor fund. You may also csider asking following questis, as well as any ors you may have, help you evaluate what product is best for you. How are fees expense charges applied? To each ctributi or account balance, etc. Are surrender charges applicable each payment or tal account balance? How lg does surrender charge apply? Are surrender charges level, rolling or declining? Withdrawal or Surrender Fee Usually charged during first few years after creati account or after each deposit applicable ly if you withdraw funds or exchange/transfer funds from account. What is minimum interest rate current rate return for interest bearing accounts? What is hisrical rate return for interest bearing accounts, sub-accounts or funds? Last twelve mths annual average for last three, five ten years, if applicable. Be advised that fees listed above are not intended be a complete list possible fees. Furr, re are no investment products that are completely fee-free due fact that all investment products must be manufactured, managed administered by some entity. 5

5 403(b) 403(b) & 457(b) Accounts 403(b) & 457(b) Accounts 6 7 What are Benefits a 403(b) Plan? 457(b) plans? There are many benefits ctributing a 403(b) plan. 457(b) plans. 1) 1) Ctributis Deposited in in Individual Accounts -- You own account make make all all decisis decisis ccerning ccerning amount amount retirement savings ctributis. ctributis. 2) 2) Cvenience Cvenience Payroll Payroll Ctributis Ctributis - - Your Your employer employer sends sends each each ctributis selected provider company for deposit. ctributis selected provider company for deposit. 3) High Annual Ctributi Limits - For 2015, employees can ctribute up 3) $18,000 High Annual ir Ctributi 403(b) account. Limits - Some For 2015, employees employees may can qualify ctribute for up or additial $18,000 amounts. ir account. Informati Some ccerning employees may se qualify additial for or amounts additial is provided amounts. within Informati this Guide. ccerning se additial amounts is provided within 4) Flexible this Guide. Ctributis - You may change amount ctributi during 4) Flexible year as Ctributis allowed by - employer. You may change amount ctributi 5) Benefits during Paid year Your as allowed Beneficiary by at employer. Death - All funds in account are 5) payable Benefits Paid beneficiary Your Beneficiary up death. Death - All funds in account are payable beneficiary up death. It is important note that 403(b) accounts are designed for lg-term accumulati. You It is important should csult note with that se financial accounts advisor are designed or tax csultant for lg-term determine accumulati. potential You should advantages csult with traditial financial 403(b) accounts. advisor or tax csultant determine potential advantages a traditial 403(b) /or 457(b) account. How are 403(b) account ctributis made? Ctributis made a traditial 403(b) account are pre-tax reductis from paycheck. How are Therefore, traditial income 403(b) tax is & reduced 457(b) for every account payroll ctributis ctributi you make. made? Any earnings deposits are tax-deferred until withdrawn, usually during retirement. Ctributis All made withdrawals a traditial from traditial 403(b) 403(b) or 457(b) accounts account are taxed are pre-tax during reductis year from withdrawal paycheck. at income Therefore, tax rate applicable income for tax that is year. reduced for every payroll ctributi you make. Any earnings deposits are tax-deferred until withdrawn, usually during retirement. All withdrawals from traditial 403(b) or 457(b) accounts are taxed during year withdrawal at income tax rate applicable for that year. If you choose participate in both a 403(b) a 457(b) account, you may ctribute up maximum allowable limit for each plan every calendar year. You can defer a maximum $18,000 a 403(b) account $18,000 a 457(b) account for a tal $36,000 during calendar year. These amounts could be higher for employees who qualify for additial amounts defined under plan. What are provisis 403(b) & 457(b) accounts? Qualified retirement plans, such as 403(b), 401(k) IRA s apply additial taxes distributis prior age 55 separati from service or attainment age 59½. Provisis for distributis from 457(b) accounts differ from provisis for 403(b) plans. You may elect take distributis at any time after separati from service, regardless age, or defer distributis until age 70½. Distributis will be subject normal income tax during year in which y are received. The decisi participate in a 403(b) plan /or a 457(b) plan should reflect future financial needs. For example, if you plan retire begin withdrawals prior age 55, you may benefit from special 457(b) rules which allow se withdrawals without incurring a 10% tax surcharge applicable qualified retirement plans such as 403(b) 401(k). You should review underst specific provisis any 457(b) Deferred Compensati Plan. This important informati should be supplied by plan provider prior establishing an account.

6 Special Helpful Websites Pay Plan Frequently CCORP Asked Questis 8 These What sites is are provided Special Pay give you Plan? access additial informati ccerning retirement The Special optis. Pay Plan is a retirement savings plan that allows retiring employees take advantage maximum allowable tax savings eligible accumulated sick annual leave payments that TSA are Csulting made up Group, retirement. Inc. This is accomplished by employer ctributing value eligible leave each year directly in an employer spsored Obtain employer tax sheltered specific account forms, as authorized most up--date under list Internal authorized Revenue investment guidelines. Most Special Pay Plans providers, allow benefit participant/retiree informati, leave more. funds deposit in account /or withdraw funds from account as desired immediately up separati from service. A.M. Best Company What A are good source unique informati tax benefits company ratings, Special products, Pay news. Plan? One benefit is permanent savings applicable Social Security Medicare taxes all ctributis Administrati plan. In additi, federal Agingincome taxes are deferred ctributis any earnings under Plan until distributed, which could be at a lower Pertinent tax rate informati during retirement. retirement, Medicare, or ccerns for retirees. Are re ctributi limits? Choose Save Yes, 2015 maximum ctributi limits for employer Special Pay Plan are defined by IRS regulatis. Valuable Depending informati about saving type for Special retirement. Pay Plan utilized by employer, elective ctributis by employee in a 403(b) or 457(b) plan may fset lower se Employee employer Benefit ctributi Research limits by Institute amount employee ctributi. Please refer employer s plan for specific provisis. The ctributi maximum Provides informati fsets are established employee benefit by IRS programs. rules regulatis are subject change each year. Employee Benefits Security Administrati When am I vested in Special Pay Plan? All plan ctributis are 100% vested when deposited. Informati pensis, COBRA, Plan Spsors, Compliance, Fraud more. Will Special Pay Plan affect my Social Security? Internal Revenue Service Social Security is based up highest 35 years earnings. The impact plan Social Security, if any, would be minimal. Your #1 Source for tax informati including changes tax code. Will Special Pay Plan Morningstar affect calculati my state retirement benefit? No, Follow state informati retirement benefit scks, is funds, not affected facrs by affecting Special Pay sck Plan. market. NOTE: The provisis Social Security employer's Administrati Special Pay Plan may vary. Specific questis regarding any Special Pay Plan should be directed Plan Spsor/Employer Find answers or Special all Pay questis Plan Administrar. ccerning Social Security. Stard Poors Company A good source informati company ratings, fund informati, indices, more. TSA Csulting Group, Inc. does not fer investment advice, sell or market any investment/insurance products. The What State is Community plan College? Optial Retirement Program (CCORP) is a defined ctributi The plan encompasses retirement plan that provisis available a 403(b) employees /or hired 457(b) for arrangement a qualifying whereby positi. This employees plan is in may lieu ctribute Florida Retirement accumulate System savings (FRS). a tax Program favored highlights basis through include: ir paycheck. The provisis plan are defined by a plan document that is adopted by Both Plan employers Spsor, or employer, participants ctribute qualifies a under percentage Internal Revenue participant's Service gross (IRS) guidelines. mthly These compensati provisis are fund outlined program in this (this Guide percentage assist you may in fluctuate understing up or how down better periodically). utilize this important employee benefit. The plan also lists Providers that employer has authorized provide 403(b) /or 457(b) accounts. Employees who choose CCORP are fully immediately vested in program. What are account accumulatis? Account Employees accumulatis have are opti funds, directing plus any se earnings, ctributis in for retirement investing account(s) purposes. that They have may grown choose as you from ctinually any ctribute investment products account. that are a part CCORP. Who is a participant? The CCORP plan does not allow participants access any funds provided by If you decide ctribute a persal retirement plan, you become a participant employer/employee ctributis until employee has separated service with that plan. employer. Who is a Plan Spsor? If an employee participates in more than e tax-sheltered plan, n employee The entity (generally employer) that established maintains retirement plan is csidered is respsible Plan for ensuring Spsor. that ir tal tax-deferred income does not exceed maximum as specified by Internal Revenue Code Regulatis. What is an Provider? In this A member Guide, an who terminates Provider employment refers companies receives a distributi that are authorized from ir in ORP employer's account, plan including fer a you rollover retirement or trustee--trustee products such as transfer, mutual funded funds /or by employer annuities. required employee ctributis is be deemed retired from state retirement What system. is a A Plan retiree Administrar? state retirement system who is initially re-employed in a A Plan regularly Administrar established is positi respsible or after for processing July 1, 2010, is not transactis, eligible maintaining be enrolled records, in renewed keeping membership employer's will no plan lger in compliance receive any with type IRS FRS Regulatis. or ORP Your paid employer's Plan benefit. Administrar is TSA Csulting Group, Inc. (TSACG). You Why should are review transacti differences between requests programs submitted determine which would Plan best Administrar? suit future retirement needs goals. This decisi must be made within 90 days IRS regulatis beginning require qualifying that Plan positi, Spsor review you must all transacti submit requests proper paperwork ensure during that y this are period permitted for enrollment by provisis in CCORP. After plan. 90 On days, behalf any employee Plan who Spsor, fails make TSACG's an electi pressially participate trained staff in CCORP reviews will aumatically records se be transactis enrolled in for periodic FRS Pensi review by Plan. IRS Also prior importance forwarding is requests fact that 2003 selected Florida Legislature Provider made changes for disbursement affecting retirement funds. plan choices. The new legislati now allows participants make a e time change FRS from CCORP. What is a MAC? Your Maximum Allowable Ctributi (MAC) is tal amount you are allowed ctribute retirement account each year. This amount is based IRS regulatis provisis employer's plan. Additial informati about MAC limits are Please explained note, enrollment MAC page within in this Guide. CCORP plan is limited employees who qualify. What is difference between an exchange a rollover? An exchange is movement account from e Provider anor All Provider or in eligible plan employees while employed. will A be rollover enrolled is movement in account out plan FRS anor Pensi retirement or plan or account Plan. at separati service or attainment age 59½. 9

7 MAC Limits Distributi Transactis 10 MAC prepared for: Mary Sample Ctributing persal retirement Your Age account (at end is year): an important 35 part tal financial plan. It is important remember that federal guidelines determine maximum allowable ctributi or "MAC" that can be sheltered from current income tax each year. The Maximum Allowable Ctributi (MAC) chart shows what you are allowed All ctribute participants ward should retirement receive regular plan(s) informati this calendar from year. ir account provider about scheduling level ir ctributis each year. This is especially true if you are eligible TSA Csulting use Group, an age-based Inc. certifies "additial that calculati amount" meets this year. IRS guidelines The following ly for worksheet year it was is calculated, assuming that all informati provided by employee /or employer is accurate designed complete. help you representative determine MAC for this calendar year. Worksheet for 403(b) 403(b)(7) Accounts Only Basic Limit: $18, The basic limit is 100% includible compensati up $18,000. This 403(b) worksheet Limit 457(b) Limit assumes that income will exceed $18,000. $18, $18, Age-Based Additi Limit: (Age 50 or older) If date birth falls or before 12/31/1965, you may ctribute an additial $6,000 in Basic Annual Limit for 2015: $18,000 for The 2015 calendar year limit for 403(b) 457(b) 2015 calendar elective year. deferrals is defined as up 100% includible compensati up $18,000. Your Age Based Additi allowed for 2015 is: (Amount will be $0.00 if you are less than fifty years age). $ Age-Based Additial Amount (age 50 or older): MAC Limit for 2015: $0.00 $0.00 Employees who are age 50 or older by December 31, 2015, Ctributi Guidelines may ctribute up an additial $6,000 above 403(b) The Internal Revenue Service limits amount participants may ctribute annually tax-advantaged 457(b) basic retirement annual plans limit $18,000 imposes for a substantial tal penalties for violating ctributi $24,000. The limits. participant's The Maximum years Allowable service Ctributi with employer (MAC) chart above shows what you is are not allowed a facr in determining ctribute ward eligibility for retirement this higher plan(s) limit. this calendar year. Basic Annual Limit - $18,000 for The 2015 calendar year limit for 403(b) elective deferrals is defined as up 100% includible compensati up $18,000. Your 2015 Maximum Total Ctributi Limits are: $18, $18, Age-Based Additial Amount - Employees who are age 50 or older by December 31, 2015, may ctribute up an additial $6,000 above 403(b) basic annual limit $18,000 for a tal $24,000. The participant's years service with employer Your MAC is calculati not a facr in determining eligibility for this higher limit. These calculatis have been provided for informatial purposes ly. Participants are Your respsible MAC for calculati ensuring that tal annual ctributis all 403(b) 457(b) accounts TSA do not Csulting exceed Group, maximum Inc. certifies allowable that ctributi above limits. calculati meets IRS guidelines ly for year it was calculated, assuming that all informati provided by employee /or employer is accurate complete. These calculatis have been provided for Maximum allowable ctributi limits should be reviewed each year ensure that all informatial purposes ly. Participants are respsible for ensuring that tal annual ctributis ctributis remain all 403(b) within accounts IRS Guidelines. do not exceed maximum allowable ctributi limits. Participants should retain this calculati during year. Employees who are not Maximum currently participating allowable ctributi in a persal limits retirement should be savings reviewed plan each through year ir ensure employer that may all ctributis want retain remain this worksheet within IRS for future Guidelines. reference. Participants should retain this calculati during year. Employees who are not currently participating in a persal retirement savings NOTE: Employees plan through who maintain ir employer ctribute may both want a 401(k) retain 403(b) this account worksheet during for future same reference. calendar year are subject a combined maximum limit ctributis even if plans are maintained by separate employers. Participants should seek furr informati regarding ir MAC NOTE: limit each Employees year from who ir maintain account representative ctribute or both pressial a 401(k) advisor. 403(b) account during same calendar year are subject a combined maximum limit ctributis even if plans are maintained by separate employers. Participants should seek furr informati regarding ir MAC limit each year from ir account representative or pressial advisor. Some provisis above may not be available under employer's plan /or investment ctract. 11 Can distributis be taken? Typically, participants may not take a distributi plan accumulatis without tax penalty unless y have attained age 59½ or separated from service in year in which y turn 55 or older. The Internal Revenue Service regulatis restrict or 403(b) plan distributis. When are permissible distributis permitted? Generally, a distributi cannot be made from a 403(b) account until you: reach age 59½ ; have a severance from employment; are deceased; become disabled; in case salary reducti ctributis, encounter a specific financial hardship; or have a qualified reservist distributi. In most cases, any withdrawals made from a traditial 403(b) account are taxable in full as ordinary income. In general, same tax rules apply distributis from or retirement plans. These rules are explained in IRS Publicati 571 IRS Publicati 575. NOTE: Distributis from 457(b) accounts can ly occur when participant has separated from service. After separati, distributis from 457(b) accounts may be taken regardless age. Are re taxes distributis? Yes, a distributi from a traditial 403(b) or 457(b) account is generally taxed as ordinary income in year it is issued. There are specific federal tax-withholding rules that apply all distributis from retirement savings investment plans. The taxes plan distributis can be complex. For se reass, if you are csidering a distributi from account, you are encouraged seek pressial tax advice. If you choose take a distributi, you are respsible for satisfying distributi rules for any tax csequences. Distributis participants are reported annually by provider IRS Form 1099R.

8 Distributi Transactis Distributi Transactis 12 Can loans* be taken out a 403(b) account? Depending provisis 403(b) account ctract provisis employer's plan, you may be eligible take a loan from 403(b) account. If available, general-purpose loans are generally granted for a term five years or less, loans taken purchase a principal residence may be lger than five years. Details terms a loan are established by provider /or plan. Participants must repay loans through regular payments as directed by provider /or plan. Loans are generally not permissible participants who have an outsting defaulted loan in any retirement plan maintained by employer. NOTE: 457(b) loan provisis are similar 403(b) provisis. However, not all Providers fer 457(b) loans. Can retirement account balances be exchanged?* Participants may exchange retirement account balances from e 403(b) investment provider anor 403(b) investment provider that is authorized under plan; however, re may be limitatis affecting exchanges, participants should be aware any charges or penalties that may exist in individual investment ctracts prior exchange. NOTE: Exchanges between 457(b) Providers are similar 403(b) exchanges. When do required minimum distributis begin? You must begin receiving minimum distributis from plan by April 1 following year you turn age 70½, or if later, year in which you retire. What is a qualified domestic relati order? A Qualified Domestic Relati Order (QDRO) is a legal judgment, decree or order that provides a participant's spouse, former spouse, child, or dependent with all or a porti participant's retirement account balance. What is a Rollover?* Participants may move funds from e qualified plan account, i.e. 403(b) account, 401(k) account or an IRA, anor qualified plan account at age 59½ or when separated from service. Rollovers do not create a taxable event. * Some provisis above may not be available under employer's plan /or investment ctract. What is a plan--plan transfer?* The term plan--plan transfers means that participant is moving his or her 403(b) /or 457(b) account from a previous plan spsor's plan retaining same account with authorized investment provider under new plan spsor's plan. Can retirement account balances be used purchase service credit? If allowable by state retirement system if you are eligible, you may be able use retirement account balances purchase service credits for state retirement. Ctact state retirement system for additial informati. When can hardship withdrawals for 403(b) plans* be taken? You may be able take a hardship withdrawal in event an immediate specific heavy financial need. To be eligible for a hardship withdrawal according IRS Safe Harbor regulatis, you must verify provide evidence that distributi is being taken for e or more following six reass: 1. eligible medical expenses; 2. purchase a principal residence (excluding mortgage payments); 3. tuiti payments /or room board for next 12 mths post-secdary educati for participant, his/her spouse or dependents; 4. payments necessary prevent foreclosure mortgage, or evicti from, a principal residence; 5. funeral expenses for a family member; or 6. loss or damage as a result a natural disaster (for example, an earthquake). After receiving a hardship withdrawal, you may not make voluntary ctributis 403(b) account for six mths. When can unforeseen financial emergency withdrawals for 457(b) plans* be taken? You may be able take a withdrawal from 457(b) account in event an unforeseen financial emergency. An unforeseeable emergency is defined as a severe financial hardship participant or beneficiary. These emergencies are typically caused by a sudden unexpected event such as an illness or accident involving participant or beneficiary, participant's or beneficiary's spouse, or participant's or beneficiary's dependent; loss participant's or beneficiary's property due casualty (including need rebuild a home following damage a home not orwise covered by homeowner's insurance, such as damage that is result a natural disaster); or or similar extraordinary unforeseeable circumstances arising as a result events beyd ctrol participant or beneficiary. For example, imminent foreclosure or evicti from participant's or beneficiary's primary residence due unanticipated events, such as a sudden unexpected illness or accident, may cstitute an unforeseeable emergency. In additi, need pay for medical expenses, including n-refundable deductibles, as well as for cost prescripti drug medicati, may cstitute an unforeseeable emergency. Finally, need pay for funeral expenses a spouse or a dependent, a participant or beneficiary may also cstitute an unforeseeable emergency. The purchase a home payment college tuiti are not unforeseeable emergencies. * Some provisis above may not be available under employer's plan /or investment ctract. 13

9 Transacti Procedures Transacti Procedures 14 ART Online Transacti Processing Distributi transactis may include loans, transfers/exchanges, rollovers, hardship withdrawals, QDROs, or cash distributis. If ART has been implemented for employer, please utilize line service at click ART link request all transactis. If ART is NOT available, download Transacti Routing Request form from follow instructis below. 15 The line Aggregated Records Transactis (ART) system is fastest easiest way for authorizati a distributi from account. This line resource is accessible many employers participants through TSACG's ART website located at click ART link. TSACG requires following forms documentati process transactis. By using ART, approval certificates for allowable transactis may be provided immediately for submissi Provider. Transactis such as hardships, which require additial documentati informati, can be initiated line for expedited completi. Only transactis allowed by employer's plan can be processed. Transactis can be submitted 24 hours a day, 7 days a week for cvenience. In additi transacti submissi, ART system allows you view informati previous transactis as well as any account informati Provider has provided for system. Please check see which employers have ART available. Implementati ART is going is dependent receipt data a regular basis from both employer Provider. If ART is not available, TSACG has necessary forms available line complete a plan transacti. These forms can be accessed TSACG's website at. Transacti Forms All transactis require a Transacti Routing Request form, which is available line at, as well as applicable Provider form(s), obtained from Provider, be submitted. You may request distributis by completing necessary forms submitting all completed documents TSACG via fax at or for processing. Carefully reviewing all documentati, verifying that you have signed all necessary forms, verifying that you have included any necessary evidence will help TSACG avoid delays that are caused by incomplete documentati. In event that line transactis system (ART) is not available for plan, most efficient way submit plan distributi transacti forms TSACG is by fax e following numbers: or Submitting Forms TSACG For transactis that require original documents, please mail following address: TSA Csulting Group, Inc. Attn: Participant Transacti Dept. P.O. Box 4037 Fort Waln Beach, FL For assistance with transactis, please call select opti 4. * Some provisis above may not be available under employer's plan /or investment ctract.

10 State Retirement Informati 16 As a public educati employee, you may be a member state retirement plan. Your state's retirement plan may be a defined benefit plan, a defined ctributi plan, /or a hybrid (or combined) plan. Please note that not all plans listed below are available in all states. Defined Benefit (Pensi) Plans Defined Benefit (Pensi) Plans guarantee a retirement benefit that is predetermined. The employer employee ctributes a specified percentage or amount plan, amount may vary in order pay mthly retirement benefits. The amount retirement benefit is based a formula that takes in account years service average final salary. Defined Ctributi () Plans Defined Ctributi () Plans guarantee a set ctributi made by employer employee. The employer employee ctribute a specified percentage or amount ward plan. Employees usually choose ir preferred investment optis, refore, employee usually assumes risks those investments. The amount retirement benefit will depend investments account accumulatis employee has chosen. Check Out DISCLAIMER: The state retirement informati ctained within "ARBG" has not been approved or endorsed by state retirement system. For more informati state's retirement plan, please visit. The "Retirement System Links" page has a link state retirement website. Note: Your state retirement system is not associated with supplemental retirement account or TSA Csulting Group, Inc. This hbook is produced by TSA Csulting Group, Inc. provide accurate informati with regard subject matter covered. It is not intended be a substitute for qualified counsel. TSA Csulting Group, Inc. is not engaged in rendering legal, accounting or tax advice. If legal or or pressial assistance is required, services a competent pressial should be sought. Copyright 2015 TSA Csulting Group, Inc. 15 Yacht Club Drive NE Ft. Waln Beach, FL 32548