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Administrative Manual - 205 Benefits

205.10 Retirement Plans

For employees hired prior to January 1, 2009

  1. 401(k) Group Retirement Annuity
    1. Policy
      Effective January 1, 2009, JSA/JLab provides a 401(k) defined contribution plan that provides benefits through annuities. JSA/JLab will make a 10% base salary compensation contribution in lieu of a matching feature on the plan. The 10% contribution will be made by the Lab even if employees waive participation.
    2. Eligibility
      Regular and term employees who are normally scheduled to work at least 50% time or more are eligible to participate as of the date of hire or date of transition to eligible status. All eligible employees are required to complete applicable enrollment forms.
    3. Plan Provisions
      1. The fund sponsor is the Teachers Insurance and Annuity Association - College Retirement Equities Fund (TIAA-CREF).
      2. The participant is immediately fully vested in the contributions. Contributions and the subsequent investment earnings are considered non-taxable until the participant withdraws funds or sets up an annuity. The limits to the total amount of contributions that can be made to accounts are stipulated by Internal Revenue Service Code.
      3. The options for accessing the funds include:
        1. In-service Withdrawals
          While still employed there are two instances where the participant may access their funds:
          1. Participants may make cash withdrawals at age of 59½ years of age or older.
          2. Participants who have an immediate heavy financial need with no reasonable access to other financial resources may access funds through the Lab's hardship program. Hardship withdrawals may be made from College Retirement Equities Fund annuities for one of the following reasons:
            1. Medical expenses for employees, employee's spouse, or children
            2. Payment of tuition and related educational fees for the next 12 months of post-secondary education for the employee, employee's spouse, or dependents.
            3. Payment to prevent foreclosure on the mortgage of your principal place of residence or eviction.
            4. Funeral or burial expenses for the participant's deceased parent, spouse, child, or dependents.
            5. Payment to repair damage to the employee's principal residence that would qualify for a casualty loss deductions.
            6. Purchase of a principal residence for the employee
        2. At Retirement
          The participant may choose from several income options upon retirement including, but not limited to a single life annuity, a survivor annuity, or a minimum distribution option.
        3. Death of Participant
          If the participant dies before beginning retirement benefits, the full current value of the account is payable as a death benefit to the individual(s) named as beneficiary(s) who will then have various options for receiving the pay-out.
        4. Post-termination Withdrawals
          The participant may gain access to retirement account funds anytime after terminating from JSA/JLab; however, there are differing tax implications and possible penalties depending upon the participant's age, allocation of the funds, and current income status. Rollover into other retirement vehicles is possible.
      4. During an unpaid leave of absence, no JLab contributions will be made to an employee's account unless the absence was by reason of service in the uniformed services and the participant returns to work upon discharge.

  2. 401(k) Group Supplemental Retirement Annuity
    1. Policy
      JSA/JLab provides a 401(k) group supplemental retirement annuity plan that allows employees to make contributions on a voluntary basis. During annual open enrollment, employees will be allowed to waive participation or contribute a dollar amount up to the IRS limit. If employees fail to take action during the open enrollment period an automatic enrollment feature of five (5) percent of the employee's current eligible salary will be exercised (excludes any pay adjustments during the year).
    2. Eligibility
      All regular and term employees who are normally scheduled to work at least 50% time or more are eligible to participate as of the date of hire or date of transition to an eligible status. The employee may terminate his/her contribution into the plan at the end of any pay period. The employee may execute a contribution authorization by completing a salary reduction agreement any time during the year.
    3. Plan Provisions
      1. The fund sponsor is the Teachers Insurance and Annuity Association - College Retirement Equities Fund (TIAA-CREF).
      2. The Automatic Enrollment feature and Deferral Contributions includes:
        1. All plan participants who elect to defer a portion of their compensation to the plan.
        2. Employees who do not submit a salary reduction agreement during the defined open enrollment period will be automatically enrolled in the plan effective with the first paycheck in 2009 and each subsequent year they fail to make an election.
        3. The automatic enrollment feature will default to 5% percent of the employee's current eligible compensation as of January 1st each year (excluding any pay adjustments during the year).
        4. Employees can choose to contribute more, less, or waive participation on a pre-taxed basis, but employees must complete a salary reduction agreement to reflect an amount different than 5%.
      3. The Supplemental Retirement Plan is voluntary and the pre-tax salary reduction amount is subject to the maximum amount established by IRS code. In addition, the Supplemental Retirement Plan will allow the participant to take loans, hardships, and in-service withdrawals for those that are age 59 1/2 from his/her own account subject to conditions stipulated in the Plan and the IRS code.
      4. The options for accessing the funds include:
        1. In-service Withdrawals
          While still employed there are two instances where the participant may access their funds:
            1. Participants may make cash withdrawals at age of 59½ years of age or older.
            2. Participants who have an immediate heavy financial need with no reasonable access to other financial resources may access funds through the Lab's hardship program. Hardship withdrawals may be made from College Retirement Equities Fund annuities for one of the following reasons:
              1. Medical expenses for employees, employee's spouse, or children
              2. Payment of tuition and related educational fees for the next 12 months of post-secondary education for the employee, employee's spouse, or dependents.
              3. Payment to prevent foreclosure on the mortgage of your principal place of residence or eviction.
              4. Funeral or burial expenses for the participant's deceased parent, spouse, child, or dependents.
              5. Payment to repair damage to the employee's principal residence that would qualify for a casualty loss deductions.
              6. Purchase of a principal residence for the employee
        2. Loans
          The participant may choose to borrow against the plan if he or she has the funds available to do so. Please refer to the Summary Plan Description to obtain specifics on the loan features.
        3. At Retirement
          The participant may choose from several income options upon retirement including, but not limited to a single life annuity, a survivor annuity, or a minimum distribution option.
        4. Death of Participant
          If the participant dies before beginning retirement benefits, the full current value of the account is payable as a death benefit to the individual(s) named as beneficiary who will then have various options for receiving the pay-out.
        5. Post-termination Withdrawals
          The participant may gain access to retirement account funds anytime after terminating from JSA/JLab; however, there are differing tax implications and possible penalties depending upon the participant's age, allocation of the funds, and current income status. Rollover into other retirement vehicles is possible.
      5. During an unpaid leave of absence, no JLab contributions will be made to an employee's account unless the absence was by reason of service in the uniformed services and the participant returns to work upon discharge.

  3. 403(b) Employees hired on or before 12/16/2008- Frozen Basic and Supplemental Retirement Plans

    403(b)Plan Status

    The 403(b) plan is frozen effective midnight 12/31/2008. Employees are no longer allowed to contribute money to the fund. Employees may adjust their fund allocations after January 1, 2009 via the TIAA-CREF website. Employees will not be able to move funds from the frozen 403(b) plan to the 401(k) plan. Rules for withdrawing monies from the 403(b) plan remain based on the plan provisions that were in effect prior to the account being frozen. Refer to the plan provision section to determine allowable reasons to make withdrawals from the plan.

Frozen 403(b) plan rules are detailed below:
JSA/JLab provided a mandatory basic retirement plan and a voluntary supplementary retirement plan to eligible employees.

  1. BASIC RETIREMENT PLAN - (Frozen as of midnight 12/31/2008)
    1. Policy
      JSA/JLab provided a defined contribution plan that provided benefits through annuities. Eligible employees were required to make a mandatory pre-tax contribution of 5% of base compensation. JSA/JLab made a 10% of base compensation contribution.

    2. Plan Provisions
      1. The fund sponsor was the Teachers Insurance and Annuity Association - College Retirement Equities Fund (TIAA-CREF).
      2. The participant was immediately fully vested in the contributions. Contributions and the subsequent investment earnings are considered non-taxable until the participant withdraws funds or sets up an annuity. The limit for the total amount of contributions made to accounts was stipulated by Internal Revenue Service Code.
      3. The options for accessing the funds include:
        1. In-service Withdrawals
          While still employed there are two situations where the participant may access their funds:
          1. Participants may make cash withdrawals at age of 59½ years of age or older.
          2. Participants who have an immediate heavy financial need with no reasonable access to other financial resources may access funds through the Lab's hardship program. Hardship withdrawals may be made from College Retirement Equities Fund annuities for one of the following reasons:
            1. Medical expenses for employees, employee's spouse, or children
            2. Payment of tuition and related educational fees for the next 12 months of post-secondary education for the employee, employee's spouse, or dependents.
            3. Payment to prevent foreclosure on the mortgage of your principal place of residence or eviction.
            4. Funeral or burial expenses for the participant's deceased parent, spouse, child, or dependents.
            5. Payment to repair damage to the employee's principal residence that would qualify for a casualty loss deductions.
            6. Purchase of a principal residence for the employee
          3. At Retirement
            The participant may choose from several income options upon retirement including a single life annuity, a survivor annuity, or a minimum distribution option.
          4. Death of Participant
            If the participant dies before beginning retirement benefits, the full current value of the account is payable as a death benefit to the individual(s) named as beneficiary who will then have various options for receiving the pay-out.
          5. Post-termination Withdrawals
            The participant may gain access to retirement account funds anytime after terminating from JSA/JLab; however, there are differing tax implications and possible penalties depending upon the participant's age, allocation of the funds, and current income status. Rollover into other retirement vehicles is possible.

           

  2. SUPPLEMENTAL RETIREMENT PLAN - (Frozen as of midnight 12/31/2008)
    1. Policy

      JSA/JLab provided a supplemental retirement annuity plan that allowed employees to make additional contributions on a voluntary basis.

    2. Plan Provisions
      1. The fund sponsor was the Teachers Insurance and Annuity Association - College Retirement Equities Fund (TIAA-CREF).
      2. The Supplemental Retirement Plan was voluntary and the pre-tax salary reduction amount was subject to limitations related to the amount which is being contributed to the Basic Plan and the maximum amount established by IRS code. In addition, the Supplemental Retirement Plan allows the participant to take a loan from his/her own account subject to conditions stipulated in the Plan and the IRS code.

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