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NSU 403(b) Plan Conversion To Safe Harbor 401(k) Plan

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:

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NSU 403(b) Plan Conversion To Safe Harbor 401(k) Plan

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  1. NSU 403(b) Plan Conversion To Safe Harbor 401(k) Plan Office of Human Resources

  2. Safe Harbor Plan • A safe harbor 401(k) plan will be established effective January 1, 2012 • This plan will replace the 403(b) plan

  3. Why Are We Making This Change? The new 401(k) plan: • Provides flexibility for employees to choose contribution levels • Improves vesting opportunities for employees making contributions to the plan • Keeps the same basic plan benefits and investment choices

  4. 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

  5. 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

  6. 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

  7. “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

  8. Contributions Min Max

  9. Plan Comparison 403 (b) Plan 401 (k) Plan

  10. 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

  11. 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

  12. 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

  13. 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

  14. 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

  15. Where can I learn more? VISIT THE BENEFITS WEBSITE http://www.nova.edu/cwis/hrd/benefits/ Meeting Schedule Frequently Asked Questions

  16. Where can I learn more?

  17. Where can I learn more? CONTACT HR4U 954-262-HR4U (4748) HR4U@NOVA.EDU

  18. Where can I learn more?

  19. Thank You Office of Human Resources

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