Plan Highlights – Plan Overview
Effective for Plan contributions on or after January 1, 2006
Eligibility
Administration Fee
Withdrawal Charges
Contributions
Compensation Limit
Contribution Limit
Fund Transfers
Plan to Plan Transfers
Rollovers
Loans
Distributable Events
Required Minimum Distribution
10% Federal Penalty Tax
Payment and Annuity Options
Account Services
Eligibility
Any unclassified employee at any of the units of the state system of higher education or the central office staff of the Department of Higher Education.
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Administration Fee
0.12% annually
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Withdrawal Charges
None
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Contributions
Employee Contribution – 5%.
Employer Contribution – 8%.
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Compensation Limit
For the 2009 calendar year, the compensation limit (cap) is $245,000, for Alternate Retirement Program participants hired on and after January 1, 1996.
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Contribution Limit
For the 2009 calendar year, the combined contribution limit is the lesser of $49,000 or 100% of the participant’s covered compensation for all Alternate Retirement Program participants.
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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 the pre-2006 State of Connecticut Alternate Retirement Program account assets.
Transferred assets can only be withdrawn upon a distributable event.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Rollover assets may be withdrawn without a distributable event.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 not available under the Plan.
Distributable Events
Separation from Service
Retirement
Death
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Required Minimum Distribution
You are required to begin distributions by April 1 following the calendar year in which you attain 70 ½ 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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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
You must have obtained age 55 and have a distributable event in order to elect one of these payment options*
Partial or Lump-sum Withdrawal
Systematic Withdrawal Option – Specified period or specified amount
Estate Conservation Option- IRS required minimum distribution
Rollover to another eligible retirement plan, or IRA
Combination of payout and annuity options
*Employees with less than 5 years of plan participation and separated from service can rollover entire account at termination if under age 55.
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Annuity Options
You must have obtained age 55 and have a distributable event in order to elect one of these payment 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 1/2 Survivor (Payment decreases on death of either.)
Joint and 1/2 Contingent (Payment decreases on death of primary annuitant.)
Required minimum distribution regulations may affect annuity issue ages.
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Account Services
Local ING Representatives
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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