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North Texas School District Consortium
457(b) Retirement Savings Plan
Frequently Asked Questions
1.
Who
is eligible?
Eligibility is determined by your District, so please
contact PARS or your District Benefits Office to find
out who is eligible under your District’s Plan.
2.
What is the NTSDC 457(b) Retirement Savings Plan?
The North
Texas School District Consortium 457(b) Retirement Savings
Plan is a 457 Deferred Compensation Plan and is a
tax–deferred supplemental retirement Plan sponsored by the
North Texas School District Consortium and your
participating District. The Plan is authorized by the
Internal Revenue Code (IRC) Section 457(b) and is subject to
specific Internal Revenue Service laws and requirements. The
Plan allows employees to voluntarily contribute a portion of
their compensation on a pre-tax basis. The amount invested,
plus earnings, is not taxable until withdrawn from the Plan.
3.
How is the NTSDC 457(b) Retirement Savings Plan
provided to participants?
Your
District through the North Texas School District Consortium
contracts with the Public Agency Retirement Services (PARS)
and Charles Schwab to provide administrative, investment,
and communication services to Plan participants. PARS is the
main contact for participants. You can contact PARS by
telephone or Internet:
Toll
Free:
(800) 540-6369
Internet:
ntsdc.parsinfo.org
4.
How does the Plan work?
You elect
the amount you wish to defer from your gross salary each
pay period. The amount you elect to defer is withheld
from your paycheck each pay period before taxes.
5.
Who
contributes?
You.
There are no employer contributions under this Plan.
6.
How
do I enroll?
You may
join the Plan at any time by printing and completing the
Voluntary Salary Deferral Agreement from this website or
completing the Voluntary Salary Deferral Agreement located
in the North Texas School District Consortium 457(b)
Retirement Savings Plan Enrollment Booklet (to obtain a
booklet by mail contact PARS). Upon completing the form,
submit it to your District Payroll Office. Approximately 2
weeks after submitting your form, you will receive a
Confirmation Letter from PARS with instructions on how to
log on to the website and view your account.
7.
What is the contribution amount?
You
can make pre-tax contributions through payroll
deductions up to the lesser of 100% of your compensation
or the amount listed in the table below. These amounts
are indexed for cost-of-living increases as determined
each year by the Internal Revenue Service (IRS).
Maximum Annual Contribution – Under Age 50
2010
$16,500
2011 - 2012 TBD indexed to
inflation
Maximum Annual Contribution – Age 50 or Older*
2010
$22,000
2011 - 2012 TBD Indexed to
inflation in $500 increments
*If
you are Age 50 or older, refer to Catch-up provision
below.
During one of the three
calendar years prior to your Normal Retirement Age**
you may be able to utilize the Standard Catch-up
provision by making additional contributions to the
Plan of up to twice the regular deferral limit. This
is the maximum contribution and may be significantly
lowered depending on how many years you have been
eligible to contribute to the Plan and how much you
have contributed to the Plan in prior years.
If you would like to have a Worksheet for help in
calculating this limit please contact Aldine ISD’s
investment advisor to the Plan, TCG Advisors, LP by
sending an email to
mike.cochran@pension-consulting.com.
*If you are age 50 or older you may utilize the Age
50+ Catch-up provision by making additional
contributions to the Plan. During any year in which
you are utilizing the Standard Catch-up provision
you may not utilize the Age 50+ Catch-up provision.
The additional contribution amounts are listed in
the table below:
Additional Yearly Contribution Utilizing Age 50+
Catch-up:
2010
$5,500
2011 - 2012 TBD Indexed to
inflation
Before
utilizing the Standard Catch-up or the Age 50+ Catch-up,
please consult your tax advisor.
*The term “Normal Retirement Age” shall mean the range of
ages from the earliest age at which the Participant has the
right to retire and receive a retirement benefit, under the
Teachers Retirement System of Texas, without actuarial or
similar reduction because of retirement through and
including age 70½, as designated by the Participant. Any
Participant who works beyond age 70½ may designate a Normal
Retirement Age greater than 70½ provided, however, that
Normal Retirement Age may not be later than the date or age
at which the Participant terminates employment with the
Employer.
8.
How are my Plan contributions invested?
Initially
upon enrollment your contributions are invested as you
select on the Voluntary Salary Deferral Agreement. You will
have the option to self–direct your own investments among a
wide selection of high quality no-load/no-waive mutual funds
or the option of selecting one of three managed portfolios.
If you do not make a selection, your contributions are
automatically invested in the Wells Fargo Stable Value
Return Fund. Click here to view the
Investment Options.
Approximately 2 weeks after submitting a completed
Voluntary Salary Deferral Agreement you will receive a
Confirmation Letter from PARS confirming that your account
has been established. Once your account is set-up, you have
the option of changing your investments and managing your
own account online.
9.
How do I make investment option changes?
If you
are changing your investments for the first time, you
must complete the
Investment Election Form and submit it to PARS,
or you may contact PARS at (800) 540-6369 to request the
form.
If you
have already initiated changing your investments, you
can make future changes by
accessing your account on-line.
The
following transactions can be made online:
10.
How do I keep track of my account?
You can
check your account balance on this website at the Check
Account page or you may call PARS toll free at
(800) 540-6369 to request a statement.
11.
Are there fees to the participants in the Plan?
TCG
Investment Advisory Services LP has been hired by your
District through the North Texas School District Consortium
as the investment advisor and fiduciary to the Plan and
receives an advisory fee of .45% of account assets annually.
PARS is the Trust Administrator and handles the ongoing
administration of the Plan for annual fees equal to .80% of
account assets. An additional charge of
$20.00 will be applied for stop-payment requests, a $5.00
charge for a 1099-R reissue, and a $50.00 charge for any
1099-R revisions.
12.
When can I withdraw money from my account?
13.
What are my distribution options?
-
Receive a
lump sum distribution (subject to ordinary income tax)
-
Rollover
your account balance
-
Leave in
the Plan until a future date (but no later than age 70½
or retirement)
14.
How will my distribution be taxed?
 |
Please view the attached special tax notice. |
15.
What happens if I leave employment?
When am I required to withdraw my money?
The
Internal Revenue Code allows distribution of funds only
upon retirement, termination of service with the
participating employer, or attainment of age 70½. At the
time you terminate service, you may:
-
Keep
your money invested in the Plan and, if desired,
continue to manage your money within the offered
investment options;
-
Withdraw your money – subject to ordinary income
tax; or
-
Roll
your money to another eligible employer Plan or IRA
that accepts rollovers.
16.
What if I need some of the funds while still working for my
employer?
The
Internal Revenue Code and the Plan contain three
provisions that allow withdrawal of funds while still
employed. These three provisions, if included in your
program, are limited and have strict requirements, which
must first be met. They are:
-
An
unforeseen emergency must be documented, meet the
Internal Revenue Code definitions and criteria, and
be approved by the Plan Administrator.
-
A “de
minimis” withdrawal – this provision allows a
withdrawal while employed if your balance is $5,000
or less, you have not deferred for the last 24
months and have never used this provision before.
-
Attainment of age 70½, but you must stop your
deferrals.
17.
What happens to my money when I die?
Your
designated beneficiary(ies) will receive the full value
of your account. Your beneficiary(ies) must
contact PARS to apply for a distribution.
18.
Are loans available under the Plan?
Yes,
loans are available. The minimum loan amount under the
Plan is $1,000 and the maximum loan amount is 50% of
your account value. Participants with account values
less then $2,000 are not eligible for loans. For further
information on loans, please contact PARS at
(800) 540-6369.
19.
How can I change my salary reduction?
To change
your salary reduction, complete a new
Voluntary Salary Deferral Agreement
20.
How do I stop my salary reduction?
To stop
your salary deferrals, complete a new
Voluntary Salary Deferral Agreement You may
begin contributing again to the Plan at any time by
completing a new
Voluntary Salary Deferral Agreement and
submitting it to your District Payroll Office.
21.
How can I get more information?
To get more
information about the Plan or enrolling in the Plan,
please contact PARS at (800) 540-6369
or visit the website at
www.parsinfo.org
Updated: May 14, 2010 |
