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State of Connecticut 403(b) Plan

Plan Highlights – Plan Overview

  • Eligibility
  • Administration Fee
  • Withdrawal Charges
  • Contributions
  • Catch-up Contributions
  • Fund Transfers
  • Plan to Plan Transfers
  • Rollovers
  • Loans
  • Distributable Events
  • Required Minimum Distribution
  • Financial Hardship
  • 10% Federal Penalty Tax
  • Payment Options
  • Annuity Options
  • Account Services

    • Eligibility

    Any common law employee of any State educational institution or hospital for which compensation is paid (other than a pension, severance, retainer, or fee under contract).

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    Administration Fee
    0.12% annually

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    Withdrawal Charges
    None

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    Contributions

  • Minimum Amount - $200 annually for 2009.
  • Maximum Amount - $16,500 annually for 2009.


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    Catch-up Contributions

  • Age 50+ Catch-up – An additional $5,500 annually for 2009.

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    Fund Transfers

    Currently, there are no restrictions on transfers among investment options (subject to ING’s policy on market timing and excessive trading).

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    Plan to Plan Transfers

  • The Plan accepts transfers from other State of Connecticut 403(b) account assets.
  • The Plan does not accept transfers of after-tax dollars.
  • Transferred assets can only be withdrawn upon a distributable event.


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    Rollovers

  • The Plan accepts rollovers from 401, 403(b), and traditional IRAs.
  • The Plan does not accept rollovers of after-tax dollars.
  • Rollover assets may be withdrawn without a distributable event. However, rollover assets may be subject to an Internal Revenue Service (IRS) 10% penalty tax on premature distributions.


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    Loans

  • Loans are available to all active employees enrolled in the 403(b) Plan.
  • The Plan allows one outstanding general purpose loan for a maximum duration of 60 months.
  • The Plan allows one outstanding residential loan for a maximum duration of 360 months.
  • The maximum loan amount is the lesser of:
  • 1. $50,000 minus the excess of the highest outstanding balance of loans during the last one year period ending on the day before the loan is taken over the outstanding balance of loans on the date the loan is taken; or
  • 2. 50% of your vested account balance.
  • The monthly repayment frequency method will be a payment coupon accompanied by a personal check, certified check, cashier's check, or a money order. Money order loan payment amounts may not be more than $5,000. Payroll deducted loan repayments are not available at this time.
  • If you retire or separate from service, you may continue to make loan repayments to your loan per the original terms of your promissory note and security agreement.


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    Distributable Events

  • Separation from Service
  • Retirement
  • Disability
  • Death
  • Financial Hardship

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    Required Minimum Distribution

    You are required to begin distributions by April 1 following the calendar year in which you attain age 70½ or retire, whichever occurs later.

    The Worker, Retiree, and Employer Recovery Act of 2008 waives the requirement to take a Required Minimum Distribution for the 2009 Calendar Year.


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    Financial Hardship

    The following are qualifying reasons for a financial hardship withdrawal:

  • Medical expenses for you, your spouse or dependents
  • Purchase or construction of your principal residence
  • Payment of tuition or related educational expenses
  • Prevent eviction or foreclosure on your principal residence
  • Burial or funeral expenses for your deceased parents, spouse or dependents
  • Costs directly related to the repair of damage to your principal residence

    • There is a six month suspension on making contributions following a financial hardship withdrawal.


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    10% Federal Penalty Tax

    A 10% federal penalty tax applies to distributions taken prior to attainment of age 59 ½, unless an IRS exception applies.

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    Payment Options

  • Partial or Lump-sum Withdrawal
  • Systematic Withdrawal Option – Specified period or specified amount
  • Estate Conservation Option – IRS annual required minimum distribution
  • Rollover to another eligible retirement plan
  • Combination of payout and annuity options


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    Annuity Options

  • Period Certain for 5-50 Years
  • Period Certain for 5-50 Years with Withdrawal Rights
  • Single Life
  • Single Life with 5-50 Years Guaranteed
  • Single Life with 5-50 Years Guaranteed with Withdrawal Rights
  • Single Life with Cash Refund
  • Joint and Full Survivor
  • Joint and Full Survivor with 5-50 Years Guaranteed
  • Joint and Full Survivor with 5-50 Years Guaranteed with Withdrawal Rights
  • Joint and 2/3 or ½ Survivor (Payment decreases on death of either.)
  • Joint and ½ Contingent (Payment decreases on death of primary annuitant.)

    • Required minimum distribution regulations may affect issue ages.


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    Account Services

  • Local ING Representatives also referred to as Defined Contribution Plan Consultants
  • Quarterly Account Statements
  • Quarterly Newsletter
  • Financial Education Seminars
  • 24-Hour Toll-Free Account Access by Calling 1-800-584-6001
  • Connecticut Defined Contribution Plan Web site at www.CTdcp.com


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    © 2002 - 2009 ING North America Insurance Corporation

    Insurance products issued by ING Life Insurance and Annuity Company (ILIAC). The 403(b)(7) is a series of mutual funds offered through a custodial account with ING National Trust.Seminars and securities offered through ING Financial Advisers, LLC (member SIPC), One Orange Way, Windsor, CT 06095-4774, or other broker-dealers with which ILIAC has selling agreements.