2010 Pinnacle of Achievement Award
The 4-Bucket Plan: a better 403(b) retirement plan
403(b) and 457 Retirement Plans
Dexter Community Schools is pleased to offer you the opportunity to participate in the Dexter Community Schools 403(b) Plan and the Dexter Community Schools 457 Plan as part of your benefits package.
There are tax advantages to contributing to a 403(b) and/or 457 retirement plan:
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You do not pay income tax on contributions until you begin making withdrawals from the plan, usually after you retire.
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Earnings and gains on amounts in your 403(b) account are not taxed until you withdraw them.
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As an employee of a public school AND state government, you have the ability to participate in either or both plans.
- The maximum contribution for 2010 calendar year is $16,500 to each a 403(b) and a 457. If you are age 50 or older, you may contribute up to a total of $22,000 to each a 403(b) and a 457. If you choose to participate in both, you may contribute up to a total of $33,000 ($44,000 if you are age 50 or older).
Effective January 1, 2009, The Standard administers both our 403(b) and 457 retirement plans. In cooperation with the Washtenaw ISD and Wayne RESA 403(b) Plan Consortium, a 403(b) Plan Question and Answer Information packet was prepared to help you understand the details.
403(b) and 457 Forms
Investor Profile Quiz (to help you decide which investment to choose)
403(b) Mainspring Managed Form (the complete "please actively manage my money for me" approach; The Standard does everything for you)
403(b) Savings Form(how much to take out of your paycheck)
403(b) Investing Form (which investments you choose)
403(b) Beneficiary Designation (name your beneficiary if you are new to the plan)
Application for 403(b) Transfer (if you have 403(b) money with another vendor that you invested prior to 1/1/09 through Dexter Schools. Also see Transfer of 403(b) Funds Information)
403(b) Rollover Form (if you have 403(b) money from a prior employer)
457 Savings Form (how much to take out of your paycheck)
457 Investing Form (which investments you choose)
457 Beneficiary Designation (name your beneficiary if you are new to the plan)
Application for 457 Transfer (if you have 457 money with another vendor that you invested prior to 1/1/09 through Dexter Schools)
457 Rollover Form (if you have 457 money from a prior employer)
What do the retirement plans look like?
The 403(b) plan and 457 plan are both a single vendor model concept that is fairly unique in school districts. The core of the plan is very common in 403(b) ERISA plans for non-profit institutions like universities and hospitals and 401(k) plans for corporations. We have supplemented the core plan with an open mutual fund window that, in our opinion, makes this a far superior retirement plan for our participants than was previously available to you.
A four (4) bucket approach allows you to choose how much or how little involvement you have in your investment choices:
Bucket 1: Core Line-up - This bucket contains a core line-up of 29 mutual funds across broad investment categories and provides a mix of actively and passively managed mutual funds. This bucket would be for the participants that would like to select their own investment portfolio, knowing that all options have been reviewed by investment professionals and determined to be the best in its investment class.
Bucket 2: Guided Portfolios - This bucket contains five custom asset allocation portfolios that are created out of the underlying core fund line-up (Bucket 1) and range from conservative to aggressive. This bucket will help you through the process of choosing and managing your retirement assets by providing information and tools. After answering a few questions about your future goals and current retirement income sources, the tools discuss risk tolerance, diversification and possible investment options. An investor profile questionnaire leads you to one of the five portfolios that show how you may want to diversity your assets. Most participants will likely choose a Guided Portfolio.
Bucket 3: Mainspring Managed - This bucket is for the complete "please actively manage my money for me" approach. The Standard will do everything for you. Create a savings plan to help you meet your retirement needs, manage your investments and contributions to match your needs, provide access to a call center staffed with professional investment advisors, and provide ongoing statements to show your progress along the way. All investments will be created out of the underlying core fund line-up (Bucket 1). The cost is $10/month. 403(b) Mainspring Managed Enrollment Form
Bucket 4: Open Brokerage Window - This bucket offers access to over 5,500 mutual funds, all without loads/sales commissions. This is a self-directed brokerage account through the Schwab Personal Choice Retirement Account (PCRA) (see the list of investment products). The cost is $35/year. A Schwab PCRA Application must accompany your enrollment paperwork. Please note that the purchase of individual stocks in 403(b) or 457 retirement plans are not legal and are therefore not available through the Schwab PCRA.
Dexter Community Schools 403(b) Plan
A 403(b) plan is a retirement plan for certain employees of public schools, employees of certain tax-exempt organizations, and certain ministers.
The Standard administers the Dexter Community Schools 403(b) Plan (#807078).
You may access retirement planning tools, set up an account, designate or change the amount you save, select or change your investments, and elect or change your beneficiary online at http://retirement.standard.com. A representative from The Standard is also available to assist you between 10 am and 8 pm Eastern time at 1-800-858-5420.
If you are more comfortable with paper forms, you may print the following three forms, complete them, and return them to the Payroll Office.
403(b) Mainspring Managed Form for the complete "please actively manage my money for me" approach; The Standard does everything for you.403(b) Savings Form so we know how much you want to save.
403(b) Investing Form so we know where you want to invest your money.
If you have a 403(b) retirement plan that you contributed to through Dexter Community School prior to December 31, 2008 that you want to transfer to The Standard, see Transfer of 403(b) Funds Information and Application for 403(b) Transfer. Vendor specific transfer forms: Ameriprise Distribution Request for 403(b), VALIC /AIG Rollover/Transfer Out Form.
If you have another retirement plan from a former employer that you want to rollover to The Standard, complete the 403b Application for Rollover Form.
The maximum contribution for 2010 calendar year is $16,500. If you are age 50 or older, you may contribute up to a total of $22,000.
Dexter Community Schools 457 Plan
A 457 plan is a retirement plan for certain employees of state or local government or a tax-exempt organization under IRC 501(c).
The Standard administers the Dexter Community Schools 457 Plan (#807077).
You may access retirement planning tools, set up an account, designate or change the amount you save, select or change your investments, and elect or change your beneficiary online at http://retirement.standard.com. A representative from The Standard is also available to assist you between 10 am and 8 pm Eastern time at 1-800-858-5420.
If you are more comfortable with paper forms, you may print the following three forms, complete them, and return them to the PayrollOffice.
457 Savings Form so we know how much you want to save.
457 Investing Form so we know where you want to invest your money.
If you have another retirement plan from a former employer that you want to rollover to The Standard, complete the 457 Application for Rollover Form.
The maximum contribution for 2010 calendar year is $16,500. If you are age 50 or older, you may contribute up to a total of $22,000. If you are within the last three years before retirement, you may be able to contribute even more.
Other Information