Saving for Your Retirement

Transcription

1 PIEDMONT UNIFIED SCHOOL DISTRICT Piedmont, California Saving for Your Retirement via the Piedmont USD 403(b) and/or 457 Plans 403(b) Plans and 457 Plans are both Voluntary Supplemental Retirement Savings programs that are designed to address the potential income gap between what many retirees will receive from their CalSTRS or CalPERS retirement pension income and the rising cost of living, inflation, and an individual s goals for their retirement income. Enrolling in a 403(b) or the 457 Plan via payroll deductions allows an employee the opportunity to save on a pre tax basis to ultimately supplement their retirement pension. Contributions are deducted from the employee s gross pay, which reduces their current taxable income. Income taxes are paid when disbursements begin at retirement. Annual contribution limit: You may contribute to up to $17,500 per calendar year if you are under age 50. You may contribute an additional $5,500 per calendar year (for a total of up to $23,000) if you are age 50 or over (2014 rules). Employees may contribute to both a 403(b) account and a 457 account as long as they do not exceed the annual contribution limit on either of the two accounts. Additionally, if you contribute to multiple 403(b) plans, IRS regulations mandate that your contributions be aggregated for purposes of the contribution limit. To avoid penalties, the employee should monitor their pension savings account(s) to be sure that they do not go over the allowable contribution limits for each calendar year. The employee should also inform their pension plan representative of all existing contributions so they do not go over the allowable contribution limits. Employees may enroll in a 403(b) Plan, a 457 Plan, or make changes to an existing account at any time during the school year. An employee must first open a new account with a District approved investment provider (vendor) before payroll deductions can be set up. To get started on contributing (or to make changes) to your retirement plan: All employees have access to individualized, no cost retirement planning consultations with a licensed financial advisor through Zuk Financial Group, a firm with which the District contracts for this purpose. Feel free to contact the Human Resources Office for further information on how you may take advantage of this resource. A listing of the District approved investment providers (vendors) to which you may contribute toward retirement savings is attached. You may select any vendor from this list. Download a Salary Reduction Form (SRA) from in order to set up these deductions from your salary. After completing the Salary Reduction Form (SRA), fax it to the District s plan administrator, MidAmerica Administrative & Retirement Solutions, Inc., at (877) MidAmerica will process your SRA and then notify Piedmont s Payroll Office as to when your payroll deductions will begin. This process takes about 4 6 weeks, so please plan accordingly. To change or stop a deduction, go online to: www. Please contact MidAmerica s Customer Service Department at (866) for specific questions related to payroll deductions for 403(b) or 457 Plans. Questions? Please contact us in the Human Resources Office: For Certificated Personnel: Suzanne Binder (sbinder@piedmont.k12.ca.us, or call x611) For Classified Personnel: Kim Randlett (krandlett@piedmont.k12.ca.us, or call x618)

2 PIEDMONT UNIFIED SCHOOL DISTRICT Piedmont, California Notice of Benefits Eligibility for Voluntary Supplemental Retirement Savings* This is to notify you that if you are an employee of Piedmont Unified School District you are eligible to make an elective deferral from your salary to the Piedmont Unified School District 403(b) Plan (the "Plan"). If the Plan permits after tax Roth contributions, these elective deferrals may be designated as Roth contributions. These elective contributions are subject to applicable Internal Revenue Code limits and the terms of the Plan. They may also be suspended for 6 months following a distribution to you from the Plan on account of hardship. For a copy of the Salary Reduction Agreement or a summary of the Plan, or if you have any other questions, please contact MidAmerica Administrative & Retirement Solutions, Inc. at (866) This Notice is to provide general information regarding availability of the Plan. You should consult with your own financial, tax, or legal advisor as to whether you should contribute to the Plan. Should there be any difference between the information in this Notice and the Plan, the terms of the Plan will control. The information in this Notice is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties under the Internal Revenue Code or promoting, marketing or recommending to any transaction or matter addressed herein. 403(b) Tax Sheltered Annuities A tax sheltered annuity plan permits you to defer taxes voluntarily through salary reduction contributions. Though commonly referred to as Tax Sheltered Annuities, investment options for public education employees include fixed and variable annuities as well as custodial mutual fund accounts. You may not make direct contributions to individual stocks or bonds. A complete list of District approved 403(b) vendors is located at Deferred Compensation This tax sheltered option is commonly referred to as a 457 Plan. The 457 Plan permits you to defer taxes voluntarily through salary reduction contributions, although the available investment options and withdrawal options in this plan differ from those offered under a 403(b). A listing of all District approved 403(b) Plan and 457 Plan investment providers (vendors) are on the following pages (also online at If you are interested in participating in a 403(b) or 457 retirement savings plan or would like more information, please contact the Human Resources Office. *Also referred to as the Universal Availability Compliance Letter

3 PIEDMONT UNIFIED SCHOOL DISTRICT Voluntary Supplemental Retirement Savings * *This list is also available online at To enroll in a 403(b) or 457(b) plan, call or Piedmont s Third Party Administrator: MidAmerica Administrative & Retirement Solutions 402 South Kentucky Ave., Suite 500 / Lakeland, FL Phone: / Fax: / Web: 403bTPA@midamerica.biz Directory of 403(b) and 457(b) Providers: 457 National Life Group/Life Insurance of the Southwest 1 National Life Drive Montpelier, VT (b) American Fidelity Assurance Co. PO Box Oklahoma City, OK (b) Great American Life Ins. Co. 301 E. Fourth St. Cincinnati, OH (b) Metlife 1300 Hall Blvd. Bloomfield, CT

4 Page 2 of 6 457(b) Pacific Life Insurance Co. 700 Newport Center Dr., CP4 150 Newport Beach, CA (b) Security Benefit Group One Security Benefit Place Topeka, KS (b) VALIC 2929 Allen Parkway Houston, TX (b) FTJ Fundchoice 2300 Litton Lane, Suite 102 Hebron, KY American Century Investments 4500 Main St. Kansas City, MO American Fidelity Assurance Company 2000 N. Classen Blvd. Oklahoma City, OK

5 Page 3 of 6 American Funds Distributors, Inc. PO Box 6007 Indianapolis, IN CalSTRS Pension 2 (TIAA CREF) PO Box MS 44 Sacramento, CA Fidelity Investments Institutional Services Co. PO Box Cincinnati, OH Franklin Templeton Trust Company 3344 Quality Dr. Rancho Cordova, CA FTJ FundChoice, LLC 3029 Dixie Highway Suite 203 Edgewood, KY Great American Life Insurance Company(Annuity Investors Life Insurance Co.) PO Box 5420 Cincinnati, OH

6 Page 4 of 6 Horace Mann Life Insurance Co. #1 Horace Mann Plaza Springfield, IL Industrial Alliance Pacific Life Insurance Co. PO Box Scottsdale, AZ Lincoln National Life Insurance Co. (Lincoln Financial Group) 1300 S. Clinton Street Fort Wayne, IN MetLife Insurance Company of Connecticut 400 Atrium Drive Somerset, NJ Metropolitan Life Insurance Company 400 AtriumDr. Somerset, NJ Midland National 4601 Westown Parkway, Suite 300 West Des Moines, ia

7 Page 5 of 6 National Life Group/ Life Insurance Company of the Southwest 1 National Life Drive Montpelier, VT New York Life One Rockwood Rd., Suite 3N840 Sleepy Hollow, NY Reliastar Life Insurance Company One Orange Way, A3S Windsor, CT Security Benefit One Security Benefit Place Topeka, KS TIAA CREF 1670 Broadway, Suite 2200 Denver, CO cref.org TIAA CREF (CalSTRS Pension2 Plan) PO Box Sacramento, CA cref.org/calstrs/

8 Page 6 of 6 Transamerica Fund Services, Inc. 330 W. 9th St. Kansas City, MO VALIC 2929 Allen Parkway Houston, TX Vanguard Group, The 455 Devon Park Dr. Wayne, PA