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Dixie State College provides two types of retirement plans:
Employer-funded plans for employees in benefit-eligible (.75 FTE or greater) positions
Employee-funded plans availabale to all employees of the College
Employer-Funded Retirement Plans
The College makes retirement contributions for each employee in a benefit-eligible position. Eligible employees are automatically enrolled in the applicable retirement plan. These plans are fully funded by the College, employees can not contribute to these plans. The two employer-funded plans are the Utah Retirement Systems Plan and the 401(a) Defined Contribution Retirement Plan.
Utah Retirement Systems Plan (URS Plan) - - State Retirement (homepage)
Non-Exempt grade 18 and lower college employees
The plan has two parts: a defined benefit, meaning you receive a predetermined amount when you retire; and a defined contribution, meaning you receive a predetermined amount while you are working which is deposited into a 401(k) account.
401(a) Defined Contribution Retirement Plan (401(a) Plan) - - TIAA/CREF (homepage)
Faculty, exempt, and non-exempt grade 19 and higher college employees
The College's contribution is based on a percentage of your salary
You direct how your funds are invested by choosing from a variety of investment options
Contact the Human Resources Office for additional information on the employer-funded retirement plan applicable to you.
Employee-Funded 403(b) and 457(b) Supplemental Retirement Savings Plans
The College sponsors two supplemental retirement savings plans to help you save for your retirement. You choose how much of your paycheck to put into one or both plan(s) each pay period. You direct how your money is invested by selecting from the investment provider and investment options offered to College employees.
All College employees may participate in the supplemental retirement savings plans regardless of whether they are employed in a benefit-eligible position. Some important information about the plans:
You can defer a minimum of $12.50 per pay period up to an annual maximum of $16,500 in 2009 to each supplemental plan. The maximum amount is reviewed annually by the Internal Revenue Service and may increase in future years.
Each plan includes two catch-up provisions, an age 50 or older provision and a special catch-up provision, that allow eligible employees to contribute amounts above the maximum stated above.
You can rollover assets from other similar accounts into these plans.
The 403(b) Plan has a Roth option. The Roth option allows you to contribute after-tax money to the Plan. The annual maximum contribution amount above applies to your combined after-tax and pre-tax deferral to the 403(b) Plan.
All withdrawals of Roth savings are free from federal income tax in retirement (including any income received on your investments), as long as you are age 59 ½ or older when you make a withdrawal and have had the account for at least five tax years.
Investment Providers
At present, TIAA-CREF is the only investment provider for the College’s 401(a), 403(b), and 457(b) Retirement Plans. Utah Retirement System is the only investment provider for the URS Plan.
Your Investment Options
Through the College’s retirement plans, you may enroll in a variety of funds. Up-to-date information on each fund is available on the investment provider’s website.
Changing Contributions and Investment Options
You may elect to change your contribution amounts or investment options at any time. Change forms for the 401(a) Plan and the 403(b) and 457(b) Supplemental Retirement Savings Plans are available in the Human Resources Office, or by contacting the investment provider to change investment options.
To enroll in the 403(b) and/or 457(b) Plans, complete a Salary Reduction Agreement for the respective plan and submit it to the Human Resources Office. You can open an account with the investment provider and select your investment options and allocations; otherwise, an account will be opened automatically when your first deduction is sent by the College and the funds will be invested in a life-cycle fund (based on your current age and anticipated retirement at age 65).
To change your investment options and allocations, contact the investment provider’s customer service department or make changes online through the investment provider’s website.
To change the amount you defer to the 403(b) and/or 457(b) Plans, complete a new Salary Reduction Agreement and submit the form to the Human Resources Office.
To transfer your 401(a), 403(b), or 457(b) Plan assets from one investment provider to another, contact the investment provider you want your assets transferred to. Complete the new provider’s asset transfer form and send your completed form to the new investment provider. The new provider will contact your current provider and arrange the transfer. (This is currently for employees who have previously contributed to an ‘older’ College sponsored supplemental retirement plan.)
Retirement Plan Features
Loans
Should an unexpected financial need arise, loans are available on a portion of the money you have contributed into either a 403(b) or 457(b) Supplemental Retirement Savings Plan account. Loans are not available in the College’s 401(a) Plan or the URS Plan. Contact the investment provider or the Human Resources Office for additional information.
Withdrawal Provisions
Withdrawals are subject to income taxes and may be subject to IRS early withdrawal penalties. Each retirement plan has a 32-day waiting period following termination of employment before you can withdraw or rollover funds from your account. The waiting periods do not apply to withdrawals:
Beneficiary Designation
It is important to designate a person or persons to receive the amounts in your retirement account in the event of your death. Please complete a beneficiary designation form for each account and investment provider. Forms are available on the investment provider’s website or in the Human Resources Office. If you do not complete a beneficiary designation, your account will be distributed according to the provisions of the Plan. If you designate your spouse and then subsequently divorce, the beneficiary designation for that individual will be automatically void.
Online Educational Resources
Visit the investment providers websites for online planning tools and to learn how to make the most of your retirement.
Savings for a College Education
The Utah Educational Savings Plan (UESP), Utah’s 529 college savings plan, is an available option for saving for college. Through the UESP, you can save after-tax money for any beneficiary you choose – your child, grandchild, niece, nephew, or friend. The money can be used at any college or university. Earnings in your account grow tax fee and Utah taxpayers receive a state tax deduction for money deferred. Once you have an account, you can set up College payroll deductions to the account. For information or to enroll now, visit www.uesp.org
Frequently Asked Questions
Q. Where can I find information about the investment options, including the amount of fees charged?
A. Each fund publishes a document known as a prospectus. The prospectus gives detailed information about the fund including its investment strategy and fees. A listing of each of the available investment options and up-to-date performance information is available on the investment provider’s website.
Q. What are the main differences between the 403(b) and 457(b) Supplemental Retirement Savings Plans?
A. You may withdraw funds from your 403(b) account while you are still actively employed by the College at age 59 ½ , but must wait until your employment ends or you reach age 70 ½ to withdraw funds from your 457(b) account.
In the 457(b) account there are no early withdrawal penalties at any age if your withdrawal is made after your College employment ends. If you withdraw funds from your 403(b) account prior to the date you reach age 59 ½ (either after termination of your employment or if you experience an eligible hardship), the amount you withdraw may be subject to a 10% IRS penalty in addition to applicable taxes.
A Roth after-tax option is available in the 403(b) Plan only.
Q. How much will it cost me to move my assets from one investment provider to another?
A. There is no charge to move assets from one College investment provider to another. Depending on your investment and the length of time you have held the fund, you may be charged a Redemption/Short Term Trading fee.
Q. Are there any restrictions on moving assets from one investment provider to another?
A. Most investment options do not have transfer of asset restrictions. However, there are three exceptions: (1) employees can only transfer TIAA Traditional assets over ten equal annual installments; (2) the TIAA Real Estate Account allows one transfer out every 3 months; and (3) if you are enrolled in the URS Plan, your investments must remain with URS as long as you remain employed by the College.
Q. Who can assist me in making my decisions?
A. The investment provider has individuals licensed to provide investment information to you. You can speak with a customer service specialist by contacting the provider at the telephone numbers shown below. You can also find information and use calculators on the provider’s website.
In addition, the investment provider offers confidential consultations to College employees. The Human Resources Department can provide instructions regarding forms and processing, but cannot provide investment advice.
For additional information on the retirement plans, please contact the Human Resources Office.
Investment Providers
TIAA-CREF
P.O. Box 1259
Charlotte, NC 28201
Phone: 1-800-842-2776
www.tiaa-cref.org
Utah Retirement Systems
560 East 200 South
Salt Lake City, UT 84102-2099
Phone: 1-800-688-4015
www.urs.org
St. George Office:
165 N 100 E #9
Phone: 435-673-6300