nsu 403(b) plan conversion to safe harbor 401(k) plan
DESCRIPTION
NSU 403(b) Plan Conversion To Safe Harbor 401(k) Plan. Office of Human Resources. Safe Harbor Plan. A safe harbor 401(k) plan will be established effective January 1, 2012 This plan will replace the 403(b) plan. Why Are We Making This Change?. The new 401(k) plan: - PowerPoint PPT PresentationTRANSCRIPT
NSU 403(b) Plan Conversion To Safe Harbor 401(k) Plan
Office of Human Resources
Safe Harbor Plan
A safe harbor 401(k) plan will be established effective January 1, 2012
This plan will replace the 403(b) plan
Why Are We Making This Change?
The new 401(k) plan:Provides flexibility for employees to choose contribution levelsImproves vesting opportunities for employees making contributions to the planKeeps the same basic plan benefits and investment choices
What is the Same?
Employees can still receive up to 10% of their salary in NSU contributions
TIAA-CREF and Valic will continue to provide us with investment advice and with the same investment options
Plan features such as loans and hardship distributions are still available
What is different?
Employees can now contribute 1%, 2%, 3%, 4%, in the 403(b) they could only contribute 2% or 4% in matching contributions
It is no longer required to be employed on the last day of the year in order to keep NSU’s contribution for the current year
What Happens To The 403 (b) Plan?
The 403 (b) plan will be “frozen”, no new contributions will be made into the plan after December 31, 2011
Participants will direct the investments in their 403 (b) accounts, just as before
Loans, hardship distributions and in-service distributions will be administered according to the 403 (b) plan rules, just as before
“Quiet Period”
To ensure a smooth transition there will be a “Quiet Period” from December 12, 2011 to January 13, 2012
Employees will not be able to make
contribution changes during this time
Contributions
Max
Min
Employee Employer Basic
EmployerSafe Harbor
Matching
EmployerMatching
EmployerTotal
Employer &
EmployeeTotal
0% 2% 0% 0% 2% 2%
1% 2% 1% 1% 4% 5%
2% 2% 2% 2% 6% 8%
3% 2% 3% 3% 8% 11%
4% 2% 4% 4% 10% 14%
100% Vested Immediately
3 yr Vesting 100% Vested Immediately
3 yr Vesting
Employees no longer need to be employed at end of the year to keep the employer contributions
Plan Comparison
EE Employer ContributionsER & EE
BasicSafe
HarborMatching
ER Total
Total
0% 2% 0% 0% 2% 2%
1% 2% 1% 1% 4% 5%
2% 2% 2% 2% 6% 8%
3% 2% 3% 3% 8% 11%
4% 2% 4% 4% 10% 14%
3 yr Vesting
Immediate Vesting
3 yr Vesting
Employees DO NOT need to be employed until the end of the year (employed as of Dec 31) to keep NSU’s contribution for the current year
EE Employer Contributions ER & EE
Basic MatchingER Total
Total
0% 2% 0% 2% 2%
1% No additional Match
2% 2% 4% 6% 8%
3% No additional Match
4% 2% 8% 10% 14%
ImmediateVesting
3 yr Vesting
Employees need to be employed until the end of the year (employed as of Dec 31) to keep NSU’s contribution for the current year
403 (b) Plan 401 (k) Plan
Safe Harbor Plan Contributions
Voluntary employee contributions are still allowed (employee contributions above 4%)
The IRS limit for 2011 limit is $16,500 or $22,000 for employees age 50 and older
What Action Must Employees Take?
At this time, no action is required from employees
TIAA CREF and VALIC will use present plan elections and beneficiary designations to set up new employee accounts
What will Happen to my 403 (b)?
Your current 403 (b) account will stay as is You will continue to direct and make
changes to your investment Your account balance will grow as you earn
interest No new contributions will be made to the
403(b) plan after December 31, 2011
Can I roll-over my 403(b) account into my new Safe Harbor account?
Unfortunately, no. A roll-over is considered distribution and distributions can not be made while you are still employed
A distributable event occurs if you become disabled, retire, or separate from service
Where can I learn more?
WEBINARS
Friday, October 21
10 a.m. – 11 a.m.
3 p.m. – 4 p.m.
Instructions were sent out by email Monday, October 17
VISIT THE BENEFITS WEBSITE
http://www.nova.edu/cwis/hrd/benefits/
Meeting Schedule
Frequently Asked Questions
Where can I learn more?
Where can I learn more?
TIAA-CREFContact information
VALICContact information
For general plan information For general plan information
www.tiaa.cref.org/nsu https://my.valic.com/online
To speak with an Advisor call 1-800-842-2252
To speak with an Advisorcall 1-800-448-2542
To schedule a counseling sessionCall 1-800-732-8353
To schedule a counseling sessionTammy Kotaska, 954-494-0314
Steve Proffitt, 954-684-6306
Thank You
Office of Human Resources