On January 14 you should have received an e-mail making you aware of 403(b) enrollment. This article is a reminder about enrollment—if you wish to enroll in a plan and haven’t done so yet, please contact one of providers listed below.
What is a 403(b)? It is an employer-sponsored voluntary retirement savings program. While you are participating in the 403(b), salary reductions in the amount you choose are taken from your paycheck (before state and federal taxes) and deposited into a 403(b) account. Your 403(b) contributions and earnings are available at retirement to supplement your IPERS and Social Security income benefits.
Heartland is partnering with the State of Iowa’s 403(b) Plan, commonly referred to as the Retirement Investors’ Club (RIC).
Effective January 1, 2010, you have the option to select between five providers: VALIC (currently AIG), The Hartford, ING, Security Benefit and TIAA-CREF. Horace Mann, currently one of six providers, is no longer available for contributions.
• The minimum contribution per pay period, as dictated by our providers, is $10 per pay period.
• You have the option of traditional pre-tax contributions or post-tax Roth contributions. You should work with your financial advisor to determine what is best for your retirement planning.
• You can enroll at any time during the year and can then change the amount of your contribution 12 times per year (at the beginning of each month). All changes received by the end of a month will be effective at the beginning of the following month. For example, a change submitted between January 1-31 will be effective February 1.
• The Agency does not offer matching funds, but it is still very beneficial for you to start saving for retirement, even if you are only able to start with a small amount.
• In 2010, the maximum amount you may contribute per year is 100% of compensation up to $16,500. Also, if you have at least 15 years of service with Heartland or you are at least 50 years old, you may also be able to make additional catch-up contributions.
To start your contributions, contact one of the RIC’s investment providers. Contact information is available on the RIC’s website at http://ric.iowa.gov/403b/index.html. On the left side of the page, click on Providers and Investments and then click on Active Providers. Clicking on the Help button to the right of each provider will give you a list of agents who are authorized to sell their products. The agent can send you enrollment information and, at your request, will schedule an appointment to discuss your individual financial goals. Click here for an RIC enrollment form.
If you are currently investing in the 403(b) plan, no action is needed on your part; however, you may want to consider scheduling an appointment with your financial advisor to review your investment plan. If you have questions, please contact Kathy Martin, Benefits Specialist, at kmartin@aea11.k12.ia.us, or Steve Jordan, Payroll Specialist, at sjordan@aea11.k12.ia.us.
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