State of Connecticut Deferred Compensation 457 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
Unforeseeable Emergency
10% Federal Penalty Tax
Payment Options
Annuity Options
Account Services
Eligibility
Any individual employee of the State or any individual performing services for the State either by appointment or election, including members of the General Assembly, who performs services for the State for which compensation is paid.
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Administration Fee
0.12% annually
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Withdrawal Charges
None
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Contributions
Minimum Amount - $20.00 per pay period.
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.
Special Catch-up – Up to $33,000 (for 2009) in the 3 years prior to the year you reach Normal Retirement Age.*
Both catch-up provisions cannot be used during the same calendar year.
Click here for more information on the Special Catch-up Contribution Option
*Special Catch-up is not available to employees eligible to participate in the State of Connecticut 403(b) Plan.
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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 457(b) government plans.
Transferred assets can only be withdrawn upon a distributable event.
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Rollovers
The Plan accepts rollovers from 401, 403(b), 457(b) government plans, and traditional IRAs.
The Plan does not accept rollovers of after-tax dollars.
Rollover assets may be withdrawn without a distributable event. However, non-457 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.
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Distributable Events
Separation from Service
Retirement
Death
Unforeseeable Emergency
A One-time in-service distribution of account values of $5,000 or less is permitted under the Plan, if you have not made contributions to the Plan during the previous two years and you have not received this type of in-service distribution from the Plan in the past.
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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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Unforeseeable Emergency
An unforeseeable emergency is defined as a severe financial hardship resulting from:
Illness or accident of the participant, spouse or dependent; or
Loss of the participant’s property due to casualty; or
Other similar extraordinary and unforeseeable emergency arising as a result of events beyond the control of the participant.
There is a six month suspension on making contributions following an unforeseeable emergency withdrawal.
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10% Federal Penalty Tax
The 10% federal penalty tax on distributions prior to age 59 1/2 does not apply to distributions from your 457 Plan assets.
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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 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 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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