What is a 403(b) Plan?
In public educational organizations like School Districts and Community Colleges, 403(b) Plans generally serve as supplemental retirement savings plans designed to supplement retirement benefits available from State pension plans and Social Security. The IRS provides a Summary of 403(b) Plan Basics page and a 403(b) Plan Brochure for Employees on its website. Many of the topics covered there are treated in even greater detail on this CCC website, whereas some other topics covered there are not applicable to public employers.
Please visit the "Why Partipicate?" page for additional information on the benefits of utilizing the 403(b) plan.
Plan Document for Central
Central has a 403(b) Plan Document that governs 403(b) policies. For more information, please click here.
Which Optional Features Does the District Allow in its 403(b) Plan?
403(b) Optional features are either included in, or excluded from, the Plan, as specified below and as further described in the parenthetically referenced sections in the Plan Document for Central School District. These options are listed here in abstract for convenient reference:
Catch-ups under the Plan
- 15 Years-of-Service Catch-up Elective Deferral Contributions: Yes
- Age 50 Catch-up Elective Deferral Contributions: Yes
Contributions to the Plan
- Direct Rollovers Into the Plan: Yes
- Employer Contributions Allowed: Yes
- Employer Post Severance Contributions Allowed: Yes
- Exchanges Within the Plan: Yes
- Roth Contributions: No
Other Plan Transactions
- Hardship Distributions: Yes
- In-service Distributions After Age 59-1/2: Yes
- In-service Distributions From Rollover Accounts: Yes
- Loans: Yes
- Permissive Service Credit Transfers: Yes
- Plan-to-Plan Transfers To the Plan: Yes
- Plan-to-Plan Transfers From the Plan: Yes
Am I Eligible To Participate? How Much Can I Contribute?
Please review the Eligibility and Limits Announcement for a full description of the employees eligible to participate and the contribution limits that apply.
Central does not require any minimum monthly contribution amount.
How Do I Begin, Change, or Cancel Contributions?
Please review the 403(b) Enrollment Procedures for step-by-step instructions on how to beginning participation, how to change your vendor or contribution amount, or how to end contributions to the plan. Please note: it will be necessary to complete an Salary Reduction Agreement (or SRA) to communicate your instructions to your employer.
What Are My Investment Options?
Please visit the 403(b) List of Vendors page for the options offered under the Central 403(b) plan.
When, How, and Under What Circumstances Can I Access My 403(b) Account?
There are restrictions on when can access funds held in a 403(b) account. A transaction's availability may be limited not only by IRS guidelines, but also by the employer's plan and/or the underlying investment contract. Please see the column on the left for a summary of the Optional Features (including transaction types) allowed under the Central 403(b) Plan Document.
To learn about the transactions (such as there definitions and qualifying events) and how to obtain plan administrative authorization on a transaction, please visit the 403(b) Transaction Information page.
Why did Central Adopt CCC Services?
The IRS published Final 403(b) Regulations during July of 2007 that dramatically changed the way 403(b) Plans must be structured and administered. Central and all of the Vendors for its 403(b) Plan were required to follow complex new rules and increased administrative responsibilities. As a result, Central adopted the services of Carruth Compliance Consulting, Inc., an Independent Third Party Administrator (TPA).